Assystem - 2015 Registration Document

MANAGEMENT REPORT

GROUP RESULTS

3.2.2

REVENUE BY DIVISION AND INVOICING RATE

2015

2014

Total Variation

Organic Variation*

In millions of euros

Group

907.7 847.6 528.6 311.1

866.6 789.4 504.6 277.7

4.7% 7.4% 4.8%

2.0% 4.3% 4.6% 3.8%

Group excluding Staffing Global Product Solutions Energy & Infrastructure

12.0% (22.2)%

Staffing

60.1

77.2

(22.2)%

Miscellaneous

7.9

7.1

–

–

* At current exchange rate.

Staffing activities (€60.1 million revenue in 2015, i.e. 6.6% of the consolidated revenue) suffered negative growth of -22.2% due to difficulties in the Oil & Gas sector which is their main market. The Group’s operational billing rate for 2015 was 90.3% ( versus 90.7% in 2014). This rate corresponds, in a given period, to the ratio of total hours billed to total hours worked by billable staff.

The 2015 revenue from Global Product Solutions is €528.6 million, (58.2% of the consolidated revenue). It is up by 4.8%, of which 4.6% is organic at the current exchange rate, and +0.2% is the scope effect. The 2015 revenue from Energy & Infrastructure is €311.1 million, (34.3% of consolidated revenue). It is up by 12.0%, of which 3.8% is organic at the current exchange rate, and +8.2% is the scope effect (integration of the Saudi company Radicon on 1 January 2015).

3

3.2.3

RESULTS OF OPERATIONS AND FINANCIAL SITUATION

3.2.3.1 Operating profit before non-recurring items (EBITA) Earnings Before Interest and Taxes (EBIT) stood at €57.8 million, representing 6.4% of revenue (compared with €52.1 million and 6.0% respectively, in 2014). EARNINGS BEFORE INTEREST AND TAXES (EBIT)*

2015

As a % of revenue

2014 As a % of revenue

In millions of euros

Group

57.8 38.8 25.7

6.4% 7.3% 8.3% 2.3%

52.1 35.1 22.2

6.0% 7.0% 8.0% 2.9%

Global Product Solutions Energy & Infrastructure

Staffing

1.4

2.2

Holding company and Miscellaneous

(8.1)

–

(7.4)

–

* Earnings Before Interest and Taxes (EBIT) including the share of profit (loss) of associated businesses (in consolidated €0.5 million in 2015 and €0.3 million in 2014).

Profit and margin have benefited from the positive effect of the Radicon acquisition, growth in this business activity and a continued high margin level in Nuclear business. The somewhat sluggish context for other activities in France, has had a slightly negative impact on the trend for these two indicators. Staffing EBIT is €1.4 million compared to €2.2 million in 2014, i.e. an operating margin of 2.3% in 2015 compared to 2.9% in 2014. The reduction in fixed costs has made it possible to limit the effect the fall in volume has had on the results. The central costs of the Group (“Holding”), net of the results from the activities grouped under “Miscellaneous” are -€8.1 million in 2015 compared to -€7.4 million in 2014.

The Global Product Solutions EBIT is up by €3.7 million at €38.8 million, i.e. an operating margin of 7.3% compared to 7.0% in 2014. Profit and margin grew strongly in the Automotive sector. In Aerospace, they underwent the effect of a substantial reduction in income from the research tax credit, due to a change in the business mix. At the year-end, renewed growth in revenue and gradual adaptation to the new business mix resulted in a marked improvement in both profit and margin. Energy & Infrastructure EBIT is up €3.5 million at €25.7 million, i.e. an operating margin of 8.3% compared to 8.0% in 2014.

39

ASSYSTEM

FINANCIAL REPORT 2015