ASSYSTEM_Registration_Document_2017

FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS

REPORTING ENTITY AND BASIS OF PREPARATION

NOTE 1

OTHER MAIN STANDARDS, AMENDMENTS AND INTERPRETATIONS ISSUED BY THE IASB BUT NOT YET ENDORSED BY THE EUROPEAN UNION ● IFRS 16 – Leases, effective for annual reporting periods beginning on or after 1 January 2019, with early application permitted for 2017 for entities that elect to early adopt IFRS 15. In preparation for applying this standard as from 1 January 2019, the Group is currently (i) compiling a list of its operating leases (for real estate, vehicles and computer equipment) that will need to be reclassified under IFRS 16, and (ii) determining the method to use to reclassify these leases. ● Amendments to IFRS 2 – Classification and Measurement of Share- based Payment Transaction, effective for annual reporting periods beginning on or after 1 January 2018, with early application permitted. ● Amendments to IFRS 10 and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture, which may be early adopted as from 1 January 2016. ● Annual improvements to IFRSs (2014-2016 cycle), effective for annual reporting periods beginning on or after 1 January 2018, with early application permitted for the amendments to IAS 28. ● IFRIC 22 – Foreign Currency Transactions and Advance Consideration, effective for annual reporting periods beginning on or after 1 January 2018, with early application permitted. ● IFRIC 23 – Uncertainty over Income Tax Treatments, effective for annual reporting periods beginning on or after 1 January 2019, with early application permitted. PRESENTATION OF THE FINANCIAL STATEMENTS AND YEAR-ON-YEAR COMPARISONS The presentation of the financial statements was the same for 2017 as for 2016. The Group applied IFRS 5 – Non- current Assets Held for Sale and Discontinued Operations for the transfer of control of its Global Product Solutions (GPS) division, in view of the fact that GPS constituted a major line of business for Assystem (see Note 2 – Significant events of the year). In accordance with this standard, the 2016 figures in the consolidated income statement have been restated in order to permit meaningful year-on-year comparisons. In addition, in the consolidated statement of cash flows the 2017 and 2016 figures for “Net cash generated from operating activities”, “Net cash from/(used in) investing activities” and “Free cash flow” have been segregated between continuing operations and discontinued operations. The Group’s share of the equity and quasi-equity (convertible bonds with an annually capitalised coupon) of Assystem Technologies Groupe (ATG) has been presented in a separate line called “Assystem Technologies Groupe shares and convertible bonds” in the consolidated statement of financial position in view of the material amount involved and the type of instruments concerned. The income from the Group’s investment in ATG is presented in two separate lines of the consolidated income statement: (i) “Share of profit of Assystem Technologies Groupe”, which corresponds to the Group’s portion of ATG’s profit resulting from accounting for the company by the equity method, and (ii) “Income from Assystem Technologies Groupe convertible bonds”.

Reporting entity The Assystem Group (hereinafter also referred to as the “Group”) is an international leader in the field of engineering. The Group's parent company is Assystem S.A. (hereinafter also referred to as the “Company") – a French public limited company (société anonyme) governed by a Board of Directors, whose registered office is located at 70, boulevard de Courcelles, 75017 Paris, France. The consolidated financial statements for the year ended 31 December 2017, together with the accompanying notes, were approved by the Company’s Board of Directors on 15 March 2018. However, these financial statements will only be considered definitive after approval by the Company’s shareholders at the Annual General Meeting scheduled to be held on 16 May 2018. The consolidated financial statements reflect the accounting position of Assystem and its subsidiaries. They are presented in millions of euros, rounded to the nearest hundred thousand. Basis of preparation In compliance with Regulation 1606/2002/EC of the European Parliament and Council dated 19 July 2002, the consolidated financial statements of the Assystem Group for the year ended 31 December 2017 have been prepared in accordance with International Financial Reporting Standards (IFRSs) and related interpretations as adopted by the European Union at that date. These financial statements present two years of data. IFRSs as adopted by the European Union differ in certain respects from IFRSs as issued by the IASB. The Group nevertheless ensured that the financial information for the reported periods would not have been substantially different had it applied IFRSs as issued by the IASB. NEW STANDARDS, AMENDMENTS TO EXISTING STANDARDS AND INTERPRETATIONS WHOSE APPLICATION WAS MANDATORY FROM 1 JANUARY 2017 The following amendments to existing standards were applicable by the Group as from 1 January 2017 but did not have any impact on its consolidated financial statements: ● Amendments to IAS 12 – Recognition of Deferred Tax Assets for Unrealised Losses. NEW STANDARDS, AMENDMENTS TO EXISTING STANDARDS AND INTERPRETATIONS THAT COULD BE EARLY ADOPTED IN 2017 ● IFRS 15 and related amendment – Revenue from Contracts with Customers, effective for accounting periods beginning on or after 1 January 2018, with early application permitted for annual reporting periods beginning on or after 1 January 2016. ● IFRS 9 and related amendments – Financial Instruments, effective for accounting periods beginning on or after 1 January 2018, with early application permitted for 2017. Based on the analyses carried out to date, the Group does not consider that these new standards and amendments will have a material impact on its financial statements. ● Amendments to IAS 7 – Disclosure Initiative.

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REGISTRATION DOCUMENT 2017