Assystem - 2015 Registration Document

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MANAGEMENT REPORT

GROUP RESULTS

3.2.3.2 Operating profit The consolidated operating profit, once non-operating income and expenses have been taken into account, stands at €39.5 million. Non-operating income and expenses represent a net expense for 2015 of (€18.3) million. They include: ● an impairment expense of (€7.0) million on assets committed to Staffing activities; ● a provision for a net amount of (€5.3) million, allocated to a tax dispute; ● expenses relating to acquisitions and sales, and to allocations of free shares and performance shares for (€2.6) million. 3.2.3.3 Net financial result The 2015 financial result represents income of €1.0 million compared to an expense of (€5.7) million in 2014. ● restructuring costs amounting to (€3.4) million;

The €6.7 million improvement in the financial result compared to 2014 mainly originates from exchange rate gains (+€2.4 million compared to December 2014) and financial expense associated with the buyout of Ornane which had an impact on the 2014 accounts to the extent of -€8.8 million. 3.2.3.4 Profit for the period The effective tax rate for the year was 32.75%, representing an income tax expense of (€13.1) million. The profit attributable to owners of the parent is €27.2 million taking into account a positive financial result of €1.0 million, a tax expense of (€13.1) million, a contribution to the result from discontinued operations amounting to €0.5 million and a share of net consolidated profit (loss) attributable to non-controlling interests of (€0.7) million. 3.2.3.5 Net financial position The Group had a net cash position of €198.8 million on 31 December 2015, compared with €166 million on 30 June 2015 and €221.9 million on 31 December 2014. A breakdown of this positive swing is provided in the table below:

In millions of euros Net cash position (as at 31 December 2014)

221.9

EBITDA

68.1

Variation in operating Working Capital Requirement

6.0

Corporate tax disbursed Operating investments, net

(9.5) (7.5)

Other flows

(12.3)

Free cash flow

44.8

Purchases

(38.2) (29.7) 198.8

Share capital movements

NET CASH POSITION (ON 31 DECEMBER 2015)

account) and the buyout of minority shareholders in MPH Global Services (€5.8 million). The (29.7) million of flows relating to movements on total equity include (€16.2) million of dividends paid to Assystem shareholders, (€7.2) million of coupons paid to holders of Odirnane bonds and (€6.3) million for the buy-back of treasure shares, net of increase in capital resulting from the exercising of BSAAR stock warrants.

Consolidated free cash flow for 2015 is +€44.8 million compared to +€31.7 million for 2014, i.e. a 41% increase. It benefits from the very good performance from operating WCR, resulting in particular from the five-day reduction in DSO on a like-for-like basis. It represents 78% of the Earnings Before Interest and Taxes (EBIT) and 4.9% of revenue for the year. Acquisitions during the year were mainly linked to Radicon (€31.6 million, including €4.2 million in respect of the minority shareholder’s current

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ASSYSTEM

FINANCIAL REPORT 2015