Assystem - 2015 Registration Document

RISK FACTORS

RISKS RELATED TO IT SYSTEMS

the Company’s General Shareholders’ Meeting HDL Development might have to propose distribution of a dividend per share sufficient to enable it to honour its repayment obligations, with the dividends attributable to it. It is specified that the excess cash flow and asset sales referred to by the corresponding clauses would necessarily be generated or carried out by Assystem, insofar that HDL Development does not have any direct or indirect operating activity separate from that of Asssytem, and does not hold any significant assets other than Assystem shares.

In addition, excess cash flow and asset sale clauses, the conditions of application for which are assessed based on the consolidated scope of the HDL Development Group, of which Assystem is a part, on an annual basis (subject to reinvestment capacities concerning asset sales), are such as to activate an obligation of early repayment of the loan that HDL Development obtained as part of a contract concluded with a set of banks on 16 December 2013. If the conditions of application of these clauses were to be fulfilled, which is not the case for the year 2015, at

5.4 EMPLOYEE-RELATED RISKS

Type

Impact

Risk reduction measures

Risk that the Group’s available skills do not match client and market requirements.

Negative impact on the Group’s image and revenue.

The Group devotes considerable efforts in terms of management time, employment working hours and cash for in-service training of its engineers. In particular it has developed structures dedicated to specific sectors or occupations within an in-house training institute, the Assystem Institute. Skills reviews are conducted annually for all engineers, which help detect any training requirements for acquiring new skills or honing existing skills. In addition, annual recruitment campaigns specifically target the skills required for successful performance of the Group’s current and future projects. Key persons are identified within each of the Group’s operating entities as well as in its head office and support functions. Succession plans have been drawn up or are being prepared for all of these key persons. In addition, the measures taken to ensure the continuity of our internal control process and the continuous improvement approach of which this process forms part are notably aimed at ensuring the continuity of our processes and operations independently of the persons in charge of them, thus decreasing the risk of dependence on key persons.

Risk of losing key skills needed for the Group to be able to operate and develop.

Negative impact on the Group’s image and revenue.

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5.5 RISKS RELATED TO IT SYSTEMS

Type

Impact

Risk reduction measures

Risk that data is not available or is corrupted.

Inability to pursue projects, negative impact on the Group’s image and revenue.

In view of the Group’s high dependence on information systems (for the execution of client projects as well as for its own needs) and the decentralisation of the IT function, risks related to information systems are very closely scrutinised. Business continuity and recovery plans have been established and tested in all of our operating units. Access to information systems is also strictly controlled, especially for employees who use remote access (although the number of these employees is limited). Lastly, access to restricted client areas (engineering platforms installed on Group premises) is strictly controlled in line with our clients’ security policies.

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ASSYSTEM

FINANCIAL REPORT 2015