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FINANCIAL STATEMENTS
6
CONSOLIDATED FINANCIAL STATEMENTS
The €4 million recognised under “Effect of changes in scope of
consolidation” in 2015 relates to trade receivables that were written
down in full at the beginning of the year when Radicon was acquired.
The amount of impairment losses recognised by the Group represents
its estimate of losses incurred in relation to trade receivables. This
corresponds to specific losses associated with significant individual
risks. The Group does not record any write-downs of trade receivables
for losses incurred but not yet identified and which are determined by
reference to past payment data.
Based on past experience and taking into account its trade receivables
recovery policy, the Group believes that the amount of impairment losses
recognised for the year is in line with the risks to which it is exposed.
The table below provides a breakdown of late payments for “Trade receivables” as a whole as well as the impairment losses recorded for
disputed receivables and client defaults:
In millions of euros
Gross
Impairment
Gross
Impairment
2015
%
2015
%
2014
%
2014
%
Not past due
261.3
84.1%
–
–
241.5
83.8%
–
–
Up to 30 days past due
19.4
6.2%
–
–
21.9
7.6%
–
–
Between 31 and 60 days past due
9.5
3.1%
–
–
7.2
2.5%
0.1
1.3%
Between 61 and 180 days past due
7.8
2.5%
–
–
7.8
2.7%
0.8
10.4%
More than 181 days past due
12.8
4.1%
12.6 100.0%
9.8
3.4%
6.8
88.3%
TOTAL
310.8 100.0% 12.6 100.0% 288.2 100.0% 7.7 100.0%
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS
The Group’s other current and non-current financial assets include,
inter
alia
, guarantee deposits granted to entities with which the Group enters
into real-estate lease arrangements. These deposits are returned to the
Group at the end of the lease. The Group generally enters into lease
arrangements with leading real-estate market operators and therefore
the corresponding credit risk is very limited.
Other current and non-current financial assets also include amounts
granted as loans by the Group as its contribution to the
effort à la
construction
French government housing scheme. These loans are
repayable by public bodies after a 20-year period and are discounted.
OTHER RECEIVABLES
This item mainly includes recurring operating receivables (tax and
employee-related receivables).
CASH AND CASH EQUIVALENTS
The Group’s cash and cash equivalents stood at €233.8 million at
31 December 2015. The majority of cash investments – corresponding
to units in SICAV money-market funds and term accounts – are centralised
at the level of Assystem SA.
Market risk
Market risk corresponds to the risk of fluctuations – such as in exchange
rates and interest rates – affecting the Group’s profit. Management of
market risk is aimed at managing risk exposure and keeping it within
acceptable limits, while optimising the profitability-to-risk relationship.
INTEREST RATE RISK
Interest rate risk is managed by the Group’s Treasury Department which
centralises the subsidiaries’ cash surpluses and shortfalls and sets up
any requisite external financing. The Group is not exposed to interest
rate risk, given that Ornane bondholders are paid a fixed coupon of
4%, and Odirnane bondholders are paid a fixed coupon of 4.5%.
EXCHANGE RATE RISK
Owing to the geographic diversity of its establishments and operations,
the Group is exposed to fluctuations in exchange rates. Exchange rate
volatility may affect Group equity and/or profit.
The Group monitors offerings and contracts in foreign currency in order
to safeguard its operating margins on major contracts denominated in
foreign currency. The hedges set up when exchange rate risk is identified
are mainly forward sales or purchases whose amounts and maturities
are matched to the underlying exposure.
For hedges of intra-Group financing in foreign currency the Group uses
currency swaps.
The Group is also exposed to risks arising on the translation into euros
of the financial statements of foreign subsidiaries denominated in local
currency. These risks mainly relate to the EUR/GBP, EUR/USD and EUR/
SAR exchange rates (at the date of this Registration Document, the SAR
was pegged to the USD at a fixed rate).
ASSYSTEM
FINANCIAL REPORT
2015
91