Assystem - 2015 Registration Document

MANAGEMENT REPORT

BUSINESS OVERVIEW

3.1.2

COMMENTS ON THE GROUP’S OVERALL ACTIVITY DURING THE PREVIOUS YEAR AND SIGNIFICANT EVENTS OF THE YEAR 2015

services (excluding Staffing activities) are provided at a fixed price, reflecting the high esteem in which its teams are held by customers due to their capacity to lead projects, develop their know-how and reliably and recurrently deliver high productivity. This underlying trend has been accompanied by internationalisation in the way services are produced within Assystem, backed up by the increasing strength of customer interface centres, specialised skills and production at the best cost according to customer requirements. Assystem brings added value to industrial companies, utilities and contractors in nuclear energy, conventional energy, transport infrastructures, life sciences and other complex infrastructures thanks to its history in the nuclear industry, and therefore its experience in restricted environments with strong safety requirements. The main role of its experts is in particular to help major players in the energy industry (operators and equipment manufacturers) to manage their industrial investments at every step of the process – from design through to construction, commissioning and conservation in operational conditions. Assystem’s competitors in this market are above all British and North American groups such as Atkins (which is also Assystem’s partner through the Engage companies and the “n.triple.a” joint venture), CH2MHill, Amec and Jacobs Engineering, as well as French groups including Egis, Systra and Ingérop. The Energy & Infrastructure division has strong prospects for growth in France and abroad, especially in Saudi Arabia, where at the beginning of 2015 it finalised the acquisition of an engineering company called Radicon Gulf Consult. With a local workforce of 400 people, Assystem- Radicon represents not only a strategic geographical presence for Assystem, but also a significant input of skills in the infrastructure field. A limited proportion of Assystem’s revenue also originates from providing consultants specialised in Oil & Gas and Industry, essentially in the Middle East, Africa and Asia. This activity, known as staffing in the engineering world, is mainly inherited from an acquisition carried out in 2012 (MPH Global Services) to which Assystem’s pre-existing staffing activities were added. Its main market, the Oil & Gas sector (representing more than 75% of its revenue in 2015) was hit hard by the plunge in oil prices throughout 2015. MPH Global Services is working to diversify its customer portfolio in order to cope with this situation. 3.1.1.2 Assystem’s organisation Assytem’s organisation is structured around two main divisions: Global Product Solutions (58.2% of consolidated revenue in 2015) and Energy & Infrastructure (34.3% of consolidated revenue in 2015). Staffing activities (6.6% of consolidated revenue in 2015) were previously included in the Energy & Infrastructure division, but in 2015 they were constituted as a separate division.

3.1.2.1 Cash flows from the Group’s operating activities Assystem’s consolidated revenue in 2015 was €907.7 million. It recorded solid growth over the year, up by 4.7%. Growth accelerated considerably in the second half year (up by 7.6%) and the 4 th quarter (up by 9.6%). Consolidated organic growth, at a constant exchange rate, was up by 2.0%. Excluding the impact of negative growth in Staffing business, it stands at +4.3% (of which +1.4% linked to the change in parity between the Pound sterling and the Euro). On 31 December 2015, Assystem had 11,553 employees, an increase of 761 employees compared to 31 December 2014 and of 286 employees on a like-for-like basis. The Company’s main employee-related information and more broadly, its Corporate Social Responsibility (CSR) actions and key indicators are provided in Chapter 4 of this document. GLOBAL PRODUCT SOLUTIONS In Aerospace, the Group recorded a return to growth in the second half year, with an acceleration in activities linked to the production process and supply chain optimisation. Automotive growth was robust. The cross-functional organisation set up to make the most of the European market’s dynamism has been a success. The opening of a second engineering site in Romania is a concrete affirmation of our increasingly strong activities in this country. The acquisition of Plast Concept in France in the 4 th quarter (a company specialising in plasturgy engineering) has enriched the skills and offerings of Assystem’s mechanical engineering activities. ENERGY & INFRASTRUCTURE In 2015, Nuclear activities underwent a marked and sustained recovery with an acceleration in growth in the second half year, buoyed by the business with EDF in France and the United Kingdom. The other activities (transport and building infrastructures, conventional energy, life sciences) remained stable on a like-for-like basis, in a somewhat sluggish economic environment in France. Integration of the Saudi company Radicon, acquired in January 2015, which generated €30 million of revenue in the year 2015, contributed to strong growth in these activities. 3.1.2.2 Significant events

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ASSYSTEM

FINANCIAL REPORT 2015