Atos - Registration Document 2016

E Financial

E.4

Consolidated financial statements

Goodwill

Note 11

Impact of business combination

Exchange differences and other

December 31, 2015

Disposals Depreciation

December 31, 2016

(In € million)

Gross value

3,721.3 -603.2

- -

769.1

-58.6

4,431.8 -567.0

Impairment loss

-

36.2

CARRYING AMOUNT

3,118.1

-

769.1

-22.4

3,864.8

Impact of business

Exchange differences and other

December 31, 2014

Disposals Depreciation combination

December 31, 2015

(In € million)

Gross value

3,214.3 -586.4

- -

438.2

68.8

3,721.3 -603.2

Impairment loss

-

-16.8

CARRYING AMOUNT

2,627.9

-

438.2

52.0

3,118.1

Goodwill is allocated to Cash Generating Units (CGUs) that are then part of one of the operating segments disclosed in Note 2 Segment information as per IFRS 8 requirements. Changes in internal management reporting are applied retrospectively and comparative figures are restated.

A summary of the carrying values of goodwill allocated by CGUs or grouping of CGUs is presented hereafter. Overall, goodwill increased from € 3,118.1 million to € 3,864.8 million mainly due to the acquisitions of the year as detailed in Note 1 Changes in the scope of consolidation.

E

December 31, 2015

December 31, 2016

(In € million)

United Kingdom and Ireland

502.5 490.2 507.3 550.3 371.0 639.8 803.7

572.5 489.9 304.1 326.4 370.9 637.0 417.4

France

Germany

North America

Benelux & The Nordics

Other countries

Worldline

TOTAL

3,864.8

3,118.1

discount rates are applied by CGU based on the Group’s • weighted average cost of capital and adjusted to take into account specific tax rates and country risks relating to each geographical area. The Group considers that the weighted average cost of capital should be determined based on an historical equity risk premium of 5.9% (in line with 2015), in order to reflect the long-term assumptions factored in the impairment tests.

The recoverable amount of a CGU is determined based on value-in-use calculations. These calculations use cash flow projections based on financial business plans approved by management, covering a three-year period. They are also based on the following assumptions: terminal value is calculated after the three-year period, using • an estimated perpetuity growth rate of 2.0% (aligned with 2015). Although exceeding the long term average growth rate for the countries in which the Group operates, this rate reflects specifics perspectives of the IT sector; and

The discount rates used by CGU are presented below:

2015 Discount rate

2016Discount rate

United Kingdom and Ireland

9.0% 8.9% 8.9% 8.9% 8.9%

9.6% 9.5% 9.5% 9.5% 9.6%

France

Germany

North America

Benelux & The Nordics

Other countries

between 8.9% and 11.1%

between 9.5% and 13.1%

Worldline

8.1%

8.5%

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