Assystem - 2015 Registration Document

RISK FACTORS

INSURANCE STRATEGY

5.7 INDUSTRIAL AND ENVIRONMENTAL RISKS

Due to the nature of its activities, the Group has no significant direct impact on the environment. In the nuclear sector, the Group provides only knowledge-based services and is not authorised to operate any

nuclear facilities as defined in the applicable regulations. The Group’s environmental policy and measures are described in Chapter 4 of this Registration Document on Corporate Social Responsibility (CSR).

5.8 RISKS RELATED TO ACQUISITIONS

Type

Impact

Risk reduction measures

Risk that acquired companies may not generate operating profit in line with the Groups objectives and expectations.

Dilutive effect on gross margins and operating profit. Group profitability/ performance objectives not met.

A post-acquisition support plan is drawn up for companies that are newly-acquired by the Group. One of our priorities after acquiring a company is to implement our reporting systems so that we can quickly monitor changes in results and generation of cash flow and take any appropriate corrective measures.

The Group has not identified any other significant risks to date.

5.9 INSURANCE STRATEGY

The professional liability insurance policy acts as umbrella insurance providing protection against any losses and amounts of claims that are not covered – or not fully covered – by the local insurance policies of Group entities located outside France. The Group has signed specific insurance policies for its aeronautics and space business covering property damage and consequential losses. The Group’s main insurance policies were renewed in 2015 with the same conditions as were previously applicable.

The Group’s insurance strategy includes a proactive risk prevention and protection approach and the coverage of major risks in all fields of engagement and for all the activities performed. To cover these risks, Assystem has contracted a professional and operating liability insurance policy for its French and international subsidiaries.

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ASSYSTEM

FINANCIAL REPORT 2015