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MANAGEMENT REPORT
3
BUSINESS OVERVIEW
acquired a controlling interest in Envy, which has enabled the Group
to enlarge its client portfolio in the nuclear sector and access the large
Turkish market for engineering services.
A low proportion of Assystem’s revenue also originates from the
secondment of consultants specialised in Oil & Gas and Industry,
essentially in the Middle East, Africa and Asia. This activity, known
as “Staffing” in the engineering world, is mainly inherited from an
acquisition carried out in 2012 (MPH Group) to which Assystem’s
pre-existing staffing activities were added. The Group’s main market in
the Staffing business – the Oil & Gas sector which accounted for some
75% of the Staffing business’s revenue in 2016 – was hit hard by the
plunge in oil prices in 2015. Assystem is working to diversify its client
portfolio in this business in response to this situation.
3.1.1.2
Assystem’s organisational structure
Assytem is structured around two main divisions: Global Product
Solutions and Energy & Infrastructure, which respectively accounted
for 60.4% and 33.3% of consolidated revenue in 2016, and it also
has a Staffing business which contributed 5.6% of 2016 consolidated
revenue.
3.1.2
BUSINESS REVIEW AND SIGNIFICANT
EVENTS OF 2016
3.1.2.1
Business review
Assystem’s consolidated revenue in 2016 amounted to €955.6 million,
up 5.3% year on year thanks to strong performances in its three strategic
business sectors – Aerospace, Automotive and Nuclear.
At 31 December 2016, Assystem had 12,422 employees, an increase
of 869 compared with 31 December 2015 (or 593 on a constant
Group structure basis).
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.
3.1.2.2
Significant events of 2016
GLOBAL PRODUCT SOLUTIONS (GPS)
In the Aerospace sector, revenue increased 3.7% as reported (5.7%
on an organic basis and at constant exchange rates), reflecting
growth in business volumes related to manufacturing processes and
the supply chain. During 2016 Assystem acquired Aerotec Concept,
a well-established player in the airplane/helicopter refurbishment and
customisation market (bespoke cabin fittings, avionics modifications and
connectivity). This acquisition has rounded out the aerospace service
offering of the GPS division.
Growth in the Automotive sector continued at a brisk pace, with revenue
climbing more than 25% in 2016 following on from the already strong
increase reported in 2015. The cross-business organisational structure
put in place in order to capitalise on the dynamic momentum in the
European market proved a success and the number of engineers working
at the Romanian engineering centre topped the milestone figure of
1,000 during the year. This centre can work remotely for a large
number of clients, which therefore eliminates the issue of geographic
distance. In late 2016, Assystem acquired UK-based Edison Technical
Recruitment – a leading specialist engineering recruitment agency
with a particular focus on electronics, electrical systems and software
engineering and which is a preferred supplier for major players in the
automotive industry. Through this acquisition Assystem’s GPS division
will be able to strengthen its presence in the automotive sector in the
United Kingdom.
ENERGY & INFRASTRUCTURE (E&I)
Revenue for the Nuclear sector rose solidly excluding the effect of a
contraction in business with the Areva Group. Growth was driven by
business with EDF in France and Enec in the Middle East, as well as
by operations related to the ITER project.
Other E&I activities (transport and building infrastructure, conventional
energy and life sciences) remained stable, with the increase in revenue
in Europe offset by a contraction in business volumes for Radicon due to
a capital expenditure freeze for infrastructure projects in Saudi Arabia.
ASSYSTEM
REGISTRATION DOCUMENT
2016
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