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Nuclear power is an essential
component of the transition to
low-carbon energy and is therefore
a sustainable growth driver
for Assystem.
2016 was the Group’s fiftieth year of providing specialist engineering
services for the nuclear sector and we were able to create new
impetus in this business despite the difficulties experienced by the
French nuclear industry, which is our main client. During the year,
our Energy & Infrastructure division extended its nuclear-sector
services offering in the international market thanks to the promising
beginnings of its partnership with the market leader, Rosatom (the
Russian State Atomic Energy Corporation), as well as its acquisition
of a controlling interest in Envy, which has given the Group an
operating presence in Turkey where two nuclear power plants are
currently under construction. Alongside renewable energy, nuclear
power is an essential component of the transition to low-carbon
electricity production and is therefore a sustainable growth driver
for Assystem.
We were able to reap the benefits
of the extremely strong growth
in the automotive industry.
2016 saw a continuation of the automotive industry’s remarkable
growth trajectory. Our Global Product Solutions (GPS) division was
able to reap the benefits of this, recording over 20% organic growth
for the second year in a row. This performance was achieved
thanks to the combination of GPS’s technical expertise and the cost
efficiency of its engineering centre in Romania, which now employs
more than 1,000 people.
In the aerospace sector, following a fruitful period of over a decade
for designing aircraft bodies and engines, GPS continued down
the growth path in 2016 by helping its major clients optimise their
supply chains and manufacturing processes. This optimisation has
become a critical issue for all aircraft manufacturers as they aim to
step up the pace of production of the planes already in their order
books. At the same time, we are paying close attention to how we
can capitalise on the strong development of the In-Service market,
which is being driven by the rapid increase in the overall number of
aircraft in service. To this end, during the year the Group acquired
Aerotec Concept, a company based in Toulouse, France, which
specialises in bespoke cabin fittings and avionics modifications.
In outsourced R&D, the race to
achieve critical mass has begun.
Outsourced R&D is growing at a robust pace and market
consolidation is accelerating, as illustrated by Randstad’s acquisition
of Ausy in 2016. As part of their lean procurement policies, a
number of manufacturers are seeking to reduce the number of their
suppliers and work with larger, global providers – a trend that is
likely to intensify in the coming years.
The strategic challenge currently facing the outsourced R&D business
is therefore to be able to put in place a standardised external growth
process, as the race to achieve critical mass has well and truly
begun. GPS will need to rise to this challenge if it wants to remain
at the top of its clients’ approved supplier lists. While its skills and
expertise have enabled it to achieve best-in-class organic growth,
it now needs to step up the pace of its external expansion.
Going forward, Assystem will be fighting two battles in two different
markets. On the one hand it will seek to continue to leverage the
strong operating context in the nuclear market, led by the transition
to low-carbon energy – an area in which the Group is already
perceived as one of the leading independent players. And on the
other hand, it intends to meet the challenge of remaining one of
the race leaders in outsourced R&D.
ASSYSTEM
REGISTRATION DOCUMENT
2016
3
MESSAGE FROM THE CHAIRMAN AND CEO