ASSYSTEM : First-half 2017 consolidated revenue up 7.1% year on year, Robust organic growth of 9.2% for the Energy & Infrastructure business

  
First-half 2017 consolidated revenue up 7.1% year on year

• Robust organic growth of 9.2% for the Energy & Infrastructure business

Paris, 27 July 2017, 5.35 p.m. (CEST) - Assystem S.A. (ISIN: FR0000074148 - ASY) today announced its consolidated revenue figures for the six months ended 30 June 2017 (first-half 2017).

On 11 May 2017, Assystem announced that it had entered into an agreement with Ardian to transfer its outsourced R&D division - Global Product Solutions (GPS) - to a company that will be 60%-owned by Ardian and 40%-owned by Assystem. The transaction is scheduled for completion by end-September 2017.

In accordance with IFRS 5, as the agreement provides for Ardian to take over control of GPS, this business has been classified by Assystem as held for sale since 1 January 2017. Consequently, GPS's revenue is not included in the Group's consolidated revenue for the first half of 2017, and the first-half 2016 consolidated revenue figure has been restated in order to facilitate year-on-year comparisons.

The full amount of GPS's profit will be recorded under "Profit from discontinued operations" in Assystem's consolidated financial statements for the period between 1 January 2017 and the date on which its control is transferred. As from that date GPS will be renamed Assystem Technologies Groupe and it will be accounted for by the equity method in Assystem's consolidated financial statements based on Assystem's ownership interest in Assystem Technologies Groupe. 

First-half 2017 revenue
and year-on-year changes* (unaudited)

* Restated in order to facilitate year-on-year comparisons.
   ** Based on a comparable Group structure and constant exchange rates.

Based on its new scope of consolidation, the Group's revenue rose by 7.1% year on year in the first half of 2017, breaking down as 5.2% in organic growth (9.3% excluding the impact of the Staffing business), a 2.4% increase due to changes in scope of consolidation and a 0.5% negative currency effect.

ENERGY & INFRASTRUCTURE

Revenue generated by the Energy & Infrastructure business advanced 11.9% in the first half of 2017 to €175.5 million and accounted for 86% of total consolidated revenue for the period. Organic growth came to 9.2%, changes in scope of consolidation had a positive 3.3% impact and the currency effect was a negative 0.6%.

Both sectors of this business reported strong growth, with:

• Revenue from Nuclear activities up 7.6% to €102.0 million, with 8.7% organic growth at constant exchange rates.
• Revenue for Energy Transition & Infrastructures rising 18.5% to €73.8 million, with organic growth at constant exchange rates amounting to 10.0%, driven in particular by growth delivered in the transport infrastructures and life sciences sectors.

STAFFING 

At €24.3 million (representing 11.9% of the consolidated total for the first six months of 2017), revenue for the Staffing business was down 17.5% on the first half of 2016. However, the first-half 2017 figure was slightly higher than the €23.8 million reported for the second half of 2016. The Group expects this business to return to growth in second-half 2017.

GLOBAL PRODUCT SOLUTIONS

Revenue for the Global Product Solutions business (which, in accordance with IFRS 5, is no longer fully consolidated by Assystem) rose to €330.5 million in the first half of 2017 from €290.4 million in the comparable prior-year period. This robust 13.8% year-on-year increase breaks down as 11.3% in organic growth, a 3.6% positive impact from changes in scope of consolidation and a 1.1% negative currency effect.

Revenue from Aerospace and Automotive activities amounted to €189.6 million and €116.6 million respectively, representing year-on-year increases of 10.9% for Aerospace (of which 9.4% organic growth at constant exchange rates) and 22.4% for Automotive (of which 17.3% organic growth at constant exchange rates).

HEADCOUNT

Based on its new scope of consolidation, the Assystem Group had 4,690 employees at 30 June 2017, representing a comparable-basis increase of 264 compared with one year earlier.

At 30 June 2017, GPS's headcount amounted to 8,091, representing a comparable-basis increase of 448 compared with 30 June 2016.

OUTLOOK FOR 2017

Assystem's full-year 2017 targets for its new scope of consolidation are to achieve the following:  

• organic revenue growth of around 10% at constant exchange rates for the Energy & Infrastructure business;
• revenue of c. €50 million for the Staffing business.

*  *  *

PROGRESS REPORT ON THE TRANSFER OF CONTROL OF GPS TO ARDIAN

The employee representative bodies concerned by the planned transfer of control have issued a favourable opinion on the transaction, which was received by Assystem on 22 June 2017. The Company's shareholders then gave their approval in a General Meeting held on 5 July 2017. The transaction's completion - which is scheduled for the third quarter of 2017 - is still subject to clearance from the relevant merger control authorities.

GPS will change its name to Assystem Technologies Groupe as from the completion date of the transaction.
2017 FINANCIAL CALENDAR

• 11 September: Press release for first-half 2017 results
• 9 November: Press release for third-quarter 2017 financial information

Assystem is an international engineering group. As a key participant in the industry for 50 years, the Group supports its clients in managing their capital expenditure throughout the product life cycle. Assystem SA is listed on Euronext Paris.

For more information, please visit www.assystem.com
Follow Assystem on Twitter: @Assystem

CONTACTS

FIRST-HALF 2017 REVENUE BY QUARTER

* Restated in order to facilitate year-on-year comparisons.
   ** Based on a comparable Group structure and constant exchange rates.