Assystem - 2015 Registration Document

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

risks. The Group does not record any write-downs of trade receivables for losses incurred but not yet identified and which are determined by reference to past payment data. Based on past experience and taking into account its trade receivables recovery policy, the Group believes that the amount of impairment losses recognised for the year is in line with the risks to which it is exposed.

The €4 million recognised under “Effect of changes in scope of consolidation” in 2015 relates to trade receivables that were written down in full at the beginning of the year when Radicon was acquired. The amount of impairment losses recognised by the Group represents its estimate of losses incurred in relation to trade receivables. This corresponds to specific losses associated with significant individual

The table below provides a breakdown of late payments for “Trade receivables” as a whole as well as the impairment losses recorded for disputed receivables and client defaults:

Gross

Impairment

Gross

Impairment

2015

%

2015

%

2014

%

2014

%

In millions of euros

Not past due

261.3

84.1%

– – – –

– – – –

241.5

83.8%

– –

– –

Up to 30 days past due

19.4

6.2% 3.1% 2.5% 4.1%

21.9

7.6% 2.5% 2.7% 3.4%

Between 31 and 60 days past due Between 61 and 180 days past due More than 181 days past due

9.5 7.8

7.2 7.8 9.8

0.1 0.8 6.8

1.3%

10.4% 88.3%

12.8

12.6 100.0%

TOTAL

310.8 100.0% 12.6 100.0% 288.2 100.0% 7.7 100.0%

OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS The Group’s other current and non-current financial assets include, inter alia , guarantee deposits granted to entities with which the Group enters into real-estate lease arrangements. These deposits are returned to the Group at the end of the lease. The Group generally enters into lease arrangements with leading real-estate market operators and therefore the corresponding credit risk is very limited. Other current and non-current financial assets also include amounts granted as loans by the Group as its contribution to the effort à la construction French government housing scheme. These loans are repayable by public bodies after a 20-year period and are discounted. OTHER RECEIVABLES This item mainly includes recurring operating receivables (tax and employee-related receivables). CASH AND CASH EQUIVALENTS The Group’s cash and cash equivalents stood at €233.8 million at 31 December 2015. The majority of cash investments – corresponding to units in SICAV money-market funds and term accounts – are centralised at the level of Assystem SA. Market risk Market risk corresponds to the risk of fluctuations – such as in exchange rates and interest rates – affecting the Group’s profit. Management of market risk is aimed at managing risk exposure and keeping it within acceptable limits, while optimising the profitability-to-risk relationship.

INTEREST RATE RISK Interest rate risk is managed by the Group’s Treasury Department which centralises the subsidiaries’ cash surpluses and shortfalls and sets up any requisite external financing. The Group is not exposed to interest rate risk, given that Ornane bondholders are paid a fixed coupon of 4%, and Odirnane bondholders are paid a fixed coupon of 4.5%. EXCHANGE RATE RISK Owing to the geographic diversity of its establishments and operations, the Group is exposed to fluctuations in exchange rates. Exchange rate volatility may affect Group equity and/or profit. The Group monitors offerings and contracts in foreign currency in order to safeguard its operating margins on major contracts denominated in foreign currency. The hedges set up when exchange rate risk is identified are mainly forward sales or purchases whose amounts and maturities are matched to the underlying exposure. For hedges of intra-Group financing in foreign currency the Group uses currency swaps. The Group is also exposed to risks arising on the translation into euros of the financial statements of foreign subsidiaries denominated in local currency. These risks mainly relate to the EUR/GBP, EUR/USD and EUR/ SAR exchange rates (at the date of this Registration Document, the SAR was pegged to the USD at a fixed rate).

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ASSYSTEM

FINANCIAL REPORT 2015