ASSYSTEM_Registration_Document_2017

6

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

9.1

Provisions

Decreases related to discontinued operations

Reversals (unused provisions)

At beginning of year

Reversals (used provisions)

Other movements

Additions

At year-end

In millions of euros

Guarantees for fixed-fee projects and losses on completion

-

- -

- - - - -

- - - - -

- -

-

- -

Restructuring costs

0.1 7.3 0.2 7.6 0.6 0.4 3.2 3.0 7.2

(0.1)

Employee-related risks and tax risks

9.2

(0.4) (0.2) (0.6) (0.3) (0.5) (0.9) (0.7) (2.4) (0.3) (0.5) (1.3) (0.9) (3.0)

0.3

16.4

Other

-

-

-

Total long-term provisions Guarantees for fixed-fee projects and losses on completion

9.2

0.2

16.4

0.9 5.2 0.9 0.7 7.7

(0.2) (0.5) (0.2) (0.7) (1.6) (0.2) (0.5) (0.2) (0.7) (1.6)

(0.6)

-

0.4 4.7 1.9 1.2 8.2

Restructuring costs

-

0.1

Employee-related risks and tax risks

(0.5) (1.1) (2.2)

(0.6)

Other

-

Total short-term provisions Guarantees for fixed-fee projects and losses on completion

(0.5)

0.6 0.5

0.9 5.2

(0.6)

- -

0.4 4.7

Restructuring costs

-

Employee-related risks and tax risks

10.5

10.1

(0.5) (1.1) (2.2)

(0.3)

18.3

Other

3.2

0.7

-

1.2

Total provisions

14.8

16.9

(0.3)

24.6

Long-term provisions for employee-related risks and tax risks mainly comprise the provision set aside for the above-described tax audit in France. Changes in short-term provisions for restructuring costs primarily relate to the provisions set aside following the transfer of control of GPS. The movements in these provisions are described in Note 5.6 – Non-recurring income and expenses.

9.2

Contingent liabilities

ASG LEGAL DISPUTE ASG is involved in a legal dispute with Acergy (since renamed Subsea 7) and Iska Marine concerning a fire that occurred in January 2010 on board a ship – the Acergy Falcon – which was dry-docked in Brest for maintenance at the time. There were no significant developments in this case during 2017. The only noteworthy events during the year relating to this case were of a procedural nature as, following an application by ASG, the Brest Commercial Court issued an order on 21 July 2017 requiring Subsea 7 and the plaintiff’s insurers to disclose all of the documents exchanged in the UK litigation between Subsea 7 and Sobrena (including the settlement agreement signed between Subsea 7 and Sobrena and their respective insurers). This order contained an enforcement clause providing for the payment of a fine in the event of non-compliance. Subsea 7 and its insurers partially complied with the order by disclosing a certain number of documents. At the procedural hearing on 24 November 2017, the Brest Commercial Court adjourned the rest of the arguments and the exchange of pleadings until 2 March 2018. As in prior periods, Assystem still considers that there is no evidence that ASG was at fault or that it will necessarily be held fully or partially liable. In addition, as in previous periods, the Group confirms that in the event ASG is held liable, this claim would be covered under the Group’s third-party liability insurance policies.

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ASSYSTEM

REGISTRATION DOCUMENT 2017