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RISK FACTORS
5
INDUSTRIAL AND ENVIRONMENTAL RISKS
ASG LEGAL DISPUTE
ASG is involved in a legal dispute with Acergy (since renamed Subsea
7) and Iska Marine concerning a fire that occurred in January 2010
on board a ship – the Acergy Falcon – which was dry-docked in Brest
for maintenance at the time. There were no significant developments in
this case during 2016. The only noteworthy facts during the year were
of a procedural nature as the proceedings concerning the merits of the
case were re-listed with the Brest Commercial Court, which ordered
that all of the pending cases related to this same incident should be
joined and heard together. As in prior periods, Assystem still considers
that there is no evidence that ASG was at fault or that it will necessarily
be held fully or partially liable. In addition, as in previous periods, the
Group confirms that in the event ASG is held liable, this claim would
be covered under the Group’s third-party liability insurance policies.
TAX AUDIT
France
In late 2014 Assystem France received notification of a €13.5 million
tax reassessment relating to research tax credits. Assystem considers
that this reassessment is based on a general position taken by the
French tax authorities which is applicable to all of the French companies
concerned. Assystem is contesting the grounds of the reassessment in
their entirety. However, in view of new case law in 2015, and based
on the opinions of legal experts, the Group set aside a €7.3 million
provision in its 2015 financial statements. At 31 December 2016
Assystem had not yet received a payment notice from the tax authorities
for the reassessed amount and the valuation of the related risk was
unchanged compared with 31 December 2015.
5.7
INDUSTRIAL AND ENVIRONMENTAL RISKS
Due to the nature of its activities, the Group has no significant direct
impact on the environment. In the nuclear sector, the Group provides
only knowledge-based services and is not authorised to operate any
nuclear facilities as defined in the applicable regulations. The Group’s
environmental policy and measures are described in Chapter 4 of this
Registration Document on Corporate Social Responsibility (CSR).
5.8
RISKS RELATED TO ACQUISITIONS
Type
Impact
Risk reduction measures
Risk that acquired companies may not
generate operating profit in line with
the Group’s objectives and expectations.
Dilutive effect on gross
margins and operating
profit.
Group profitability/
performance objectives
not met.
A post-acquisition support plan is drawn up for companies that are newly acquired
by the Group. One of Assystem’s priorities after acquiring a company is to implement
the Group’s reporting systems so that it can rapidly monitor changes in results
and generation of cash flow and take any appropriate corrective measures.
The Group has not identified any other significant risks to date.
At the date this Registration Document was filed, the Company was not aware of any other governmental, legal or arbitration proceedings
(including any pending or potential proceedings), that could have, or have had in the last 12 months, a significant impact on the financial situation
or profitability of the Company or the Group.
ASSYSTEM
REGISTRATION DOCUMENT
2016
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