ASSYSTEM_Registration_Document_2017

3

MANAGEMENT REPORT

GROUP RESULTS

(BQG), which allowed it to strengthen its positions in the Life Sciences sector, and also acquiring Euro Contrôle Projet (ECP), a company specialised in project management services (see Chapter 1 of this Registration Document).

Framatome is the Company to which Areva NP transferred its assets and activities related to (i) the design and supply of nuclear reactor equipment, (ii) the design and supply of fuel assemblies and (iii) services provided to a large worldwide installed base of nuclear reactors. On 31 December 2017, the following interests in Framatome’s capital were sold by Areva NP: 75.5% to EDF, 19.5% to Mitsubishi Heavy Industries Ltd and 5% to Assystem. Assystem is seeking to accelerate the development of its Energy & Infrastructure (E&I) division in a context of rapid growth in the world’s nuclear engineering needs, driven by the necessary replacement of fossil fuels by carbon-free sources of electricity production. Assystem’s investment in Framatome alongside EDF is in line with this objective and forms part of a wider agreement that consolidates its position as a key partner of EDF, particularly concerning maintenance services carried out on civilian nuclear reactors in France and the United Kingdom to ensure they remain in proper operating condition. It also opens up new opportunities for Assystem to take part in new-build projects in the French nuclear industry and is intended to help develop the Group’s links with the Japanese nuclear industry so that it can participate in its international new-build projects. ONGOING EXTERNAL GROWTH The Group continued to carry out external growth transactions in 2017, both in France and abroad, taking control of The Biotech Quality Group

3.1.3

THE GROUP’S REVENUE AND EARNINGS IN 2017

Based on its new scope of fully-consolidated companies, Assystem’s consolidated revenue for 2017 rose 4.0% to €395.2 million. Revenue from Nuclear activities – which accounted for 52% of consolidated revenue in 2017 – kept up a brisk pace of growth during the year, advancing 8.9%. This robust showing was led by demand for engineering services related to (i) the construction of new reactors in France and abroad and (ii) maintenance of existing nuclear power plants in France. In its new structure – comprising the Energy & Infrastructure and Staffing divisions – the Group had a total of 4,832 employees at 31 December 2017 versus 4,603 one year earlier (based on a comparable scope of consolidation). The Company's main employee-related information and more broadly, its Corporate Social Responsibility (CSR) actions and key indicators are provided in Chapter 4 of this Registration Document.

3.2 GROUP RESULTS

3.2.1

KEY FIGURES

2017

2016* 380.1

Year-on-year-change

In millions of euros

Revenue

+4.0%

395.2

26.0 6.6%

22.1 5.8% 32.1

+17.6% +0.8 pt.

Operating profit before non-recurring items – EBITA (1)

% of revenue

Consolidated profit for the period

404.6

-

20.8 5.3% 23.9 1.00

-

-

Free cash flow (2)

% of revenue

-

-

(16.1)

-

Net cash/(debt) (3)

Dividend per share (in euros) (4)

1.00

-

* Restated to facilitate year-on-year comparisons. (1) Operating profit before non-recurring items (EBITA) including share of profit of equity-accounted investees (€1.4 million in 2016 and €0.9 million in 2017). (2) Free cash flow from continuing operations – corresponding to net cash generated from operating activities less capital expenditure, net of disposals. (3) Cash and cash equivalents less debt and after taking into account the fair value of hedging instruments. (4) For 2017, the figure corresponds to the dividend that will be recommended at the Annual General Meeting on 16 May 2018.

3.2.2

REVENUE BY DIVISION

2017

2016* 380.1 317.7

Year-on-year-change Like-for-like change**

In millions of euros

Group

395.2 341.3

+4.0% +7.4% (15.3%)

+4.0% +6.6% (13.2%)

Energy & Infrastructure

Staffing

45.1

53.2

Other

8.8

9.2

-

* Restated to facilitate year-on-year comparisons. ** Based on a comparable scope of consolidation and constant exchange rates.

40

ASSYSTEM

REGISTRATION DOCUMENT 2017