ASSYSTEM_Registration_Document_2017

FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS

5.4

Other operating income and expenses

2017 (40.1)

2016 (36.9)

In millions of euros

Outsourced operations and purchases for contracts

Cost of premises

(7.6)

(7.7)

Transport and travel expenses

(11.5) (29.4) (88.6)

(10.2) (33.4) (88.2)

Miscellaneous

Total

The “Miscellaneous” line mainly comprise IT costs, fees and commissions, and advertising and public relations costs.

5.5 Depreciation, amortisation and provisions for recurring operating items, net

2017 (2.2) (0.8) (3.0)

2016 (2.2) (0.3) (2.5)

In millions of euros

Depreciation and amortisation expense

Net change in provisions

Total

5.6

Non-recurring income and expenses

Non-recurring income and expenses comprise:

● share-based payment expense (free shares/performance shares and stock options);

● acquisition- and divestment-related expenses (external fees associated with external growth transactions and divestments); ● capital gains or losses arising on business divestments, other than those accounted for in accordance with IFRS 5; ● income and expenses related to unusual, atypical and infrequent events, mainly comprising restructuring costs, asset impairment losses (including goodwill impairment), and other material income and expenses.

2017 (6.8)

2016

In millions of euros

Addition to provision for tax dispute

-

Asset impairment

-

(7.0)

6

Expenses and provisions related to adapting Group resources to its new scope of consolidation and restructuring measures in its conventional energy activities.

(4.8) (0.7)

(0.4) (0.3) (1.7) (9.4)

Share-based payment expense (free shares/performance shares).

Company acquisition costs and other

0.5

Total

(11.8)

For its 2017 consolidated financial statements, the Group decided to increase the provision to cover the full amount of the risk and the potential late payment penalties following its receipt in November 2017 of the payment notice for the reassessed amount and in view of the fact that the risk relates to the former GPS division, whose control has now been transferred outside the Group. Consequently, €6.8 million was added to the provision recognised at 31 December 2015 along with €2.1 million for potential late payment penalties, bringing the total provision to €16.1 million at 31 December 2017. The amount recognised for potential late payment penalties was recorded in “Other financial income and expenses” in the income statement (see Note 8.5 – Financial income and expenses). A €13.5 million bank guarantee was issued to the French tax authorities following the receipt of the payment notices.

In late 2014 Assystem SA received notification of a €13.5 million tax reassessment relating to research tax credits recognised by its subsidiary Assystem France for 2010, 2011 and 2012. Assystem considers that this reassessment is based on a general position taken by the French tax authorities which is applicable to all of the French companies concerned. Assystem is contesting the grounds of the reassessment in their entirety. However, in view of new case law in 2015, and based on the opinions of external legal experts, the Group set aside a €7.3 million provision in its 2015 financial statements (representing 50% of the amount of the reassessments and €0.5 million in potential legal fees). At 31 December 2016 Assystem had not yet received a payment notice from the tax authorities for the reassessed amount and the valuation of the related risk was unchanged compared with 31 December 2015.

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ASSYSTEM

REGISTRATION DOCUMENT 2017