ASSYSTEM_Registration_Document_2017

MESSAGE FROM THE CHAIRMAN & CEO

The stake we have acquired in Framatome sends a strong message about our refocusing on our historic core business, demonstrates our strategic positioning in the French nuclear industry and heightens our international credentials. Our vision for the future – which is underpinned by our joint ventures and agreements with major international players – is rooted in our conviction that nuclear power has an essential role to play in energy transition. It is this vision that will help us achieve our goal of cementing our position as one of the world’s leading players in nuclear engineering. One of the major sources of the CO 2 causing climate change is the massive use of fossil fuels – particularly coal, but also gas – to produce electricity, and we won’t be able to address this crisis on a planetary scale by using renewable energies alone. Nuclear energy – which, like renewables, has the advantage of not producing CO 2 – is on the cusp of a renaissance, whose success will hinge on being able to reduce costs and improve plant safety. Serving these objectives is our raison d’être at Assystem. We are seeing robust growth in our core markets In 2018, our strategy will once again be structured around the three main areas where we are experiencing robust growth: our flagship nuclear business, of course – thanks to our leading position in the French nuclear industry and our international partnerships, as well as transport infrastructure and life sciences.

In order to stay in the race for size in outsourced R&D, we therefore had two options: either give ourselves the resources to accelerate the business’s build up by going it alone as Assystem, a listed company, or applying a build-up strategy on another scale via a private partner with the necessary expertise and financial clout. I decided on the second route, in the interests of both Assystem and its shareholders. This meant transferring control of our outsourced R&D business to a partner with the credentials we were looking for while ensuring that Assystem could remain closely associated with the future success of the new group created from this move – Assystem Technologies. Outsourced R&D needs are growing rapidly in a globalised market We chose the private equity firm, Ardian, to accompany us in this new adventure as it represented the best fit in terms of investor profile and offered attractive financial conditions as well as the opportunity to keep an ownership interest in the new group. By reinvesting just over 20% of the sale price in a 39% interest in Assystem Technologies we have put in place a strong earn-out potential. In early 2018, Assystem Technologies successfully carried out a major build-up transaction by acquiring the German group SQS. This added over €300 million to Assystem Technologies’ annual revenue, which means that it already tops the €1 billion mark. Assystem participated in the financing of the acquisition, giving it a 38% interest in the merged outfit. Thanks to the success of this business combination, together with Assystem Technologies’ robust revenue momentum (over 13% like-for-like growth in 2017) and clients’ rapidly-growing needs in a globalised market, we are confident that we made the right choice. There were two other key events for Assystem in 2017. First, we launched an offer on the open market to buy back 28.4% of Assystem’s outstanding shares at a per-share price of €37.50, giving shareholders the opportunity to directly benefit from a portion of the net proceeds generated from the transfer of control of the outsourced R&D business. And second, we purchased a 5% interest in Framatome (formerly Areva NP).

Dominique Louis

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ASSYSTEM

REGISTRATION DOCUMENT 2017