ASSYSTEM_Registration_Document_2017

FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS

ACTUARIAL ASSUMPTIONS

2017

2016

In %

France Discount rate

1.5% 1.5%

1.5% 1.5%

Projected rate of salary increases

Germany Discount rate

- -

1.5% 2.0%

Projected rate of salary increases

DEFINED CONTRIBUTION PLANS

2017 (9.7)

2016 (10.0)

In millions of euros

Amount expensed for defined contribution plans

SENSITIVITY ANALYSIS The liability recognised for statutory retirement bonuses payable in accordance with the Syntec collective bargaining agreement is calculated based on actuarial assumptions relating to the following: mortality rate, staff turnover, future salaries, discount rate and expected return on plan assets. Changes in these assumptions can impact the liability to a greater or lesser extent. The Group has chosen to present a sensitivity analysis for the discount rate applicable for France, since any change in this assumption could significantly affect equity (net of tax):

1% decrease 0.5% decrease

0.5% increase

1% increase

Impact on equity (in millions of euros)

(1.1)

(0.5)

0.5

0.9

Impact on equity (%)

(0.3)%

(0.1)%

(0.1)% (3.6)%

0.2%

Impact on the net liability (%)

8.0%

3.6%

(6.6)%

5.3.3 SHARE-BASED PAYMENTS

In accordance with IFRS 2 – Share-based Payment, when the Group receives services from employees as consideration for share-based payments, the fair value of the employee services received in exchange for the grant of the share-based payments is recognised as an expense. The total amount to be expensed is determined by reference to the fair value of the benefits granted to the employees concerned under stock option plans or free share/performance share plans. The expense is recognised on a straight-line basis over the vesting period. For stock options, the fair value of the options is determined using the Black & Scholes pricing model. Although the share-based payment expense – which is recognised as a non-recurring expense in the consolidated income statement – reduces profit for the period, it has no impact on total equity.

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ASSYSTEM

REGISTRATION DOCUMENT 2017