Interview – Catherine Debray

Published: November 01, 2010

Catherine Debray
Group Treasury Manager, Assystem

Group Treasury Manager, Assystem

“We adjust our forecasts every month”

In which business and countries is Assystem involved?

We are a leading company in Europe in engineering and in innovation advice. Assystem is involved in two major areas: outsourced research and development in product design and process engineering involving the construction and operational maintenance of complex installations. Assystem is an industry specialist not only in nuclear power, which was at the root of the company’s creation in 1966, but also in aeronautics – with, notably, the best aerostructure department in Europe – the automotive industry, defence, and pharmaceuticals. The business gets 60% of its turnover from ten customers, major international companies including EADS, EDF, Thales and Areva. The company, which reached a turnover of EUR 613m in 2009, 30% of which was achieved abroad, employs over 8,500 people in a dozen countries. There are subsidiaries in the UK and Germany, two countries where this company’s presence is very significant, and also in Italy and Spain and even Romania and India. The company has been listed since 1995, when it took the name Assystem. Equity is negotiated by Euronext. Paris, and its market capitalisation reached EUR 216m on 17  March 2010, the day after the publication of the 2009 annual financial report.

What principles do you use in the treasury structure?

One aim over the last few years has been to centralise almost all cash flow and deal with each risk at a single point. With the centralisation of cash flow, since 2007 the company has opted for an international cash pool in euros, whereas in France we work with four cash pools corresponding to the major banks who handle our finances. This system works well and we do not have any reason right now to review it.  

One aim over the last few years has been to centralise almost all cash flow and deal with each risk at a single point.

On the other hand, we have not ruled out superimposing a cash pool in sterling. Debt is also managed centrally and its restructuring was well-timed before the summer of 2008, before the crisis had had any impact, thanks to the settlement of bilateral credit lines, the settlement of previously issued Obsar [bonds with redeemable share subscription warrants] and the issue of a new block of Obsaar [bonds with warrants and/or with redeemable share purchase warrants] with an expiration date of 2013, operations which were completed upon the granting by our five banks of an undrawn syndicated revolving credit facility of EUR 55m. On the subject of our bond debt, which amounts to EUR 91m, we renegotiated a swap and a cap at the beginning of the year which were linked to the new Obsaar, in order to take advantage of the favourable interest rates. As a result the cost of our debt is less than 3%.  

Let me add a word about our two covenants: the link between net debt and equity must be less than or equal to 1 and that between net debt and the gross operating surplus less than or equal to 2.75. Due to our capacity to generate cash-flow, the work we have put into the management of working capital requirements – 2009 saw an average nine days year-on-year improvement in the days-of-sales-outstanding ratio - and the handling of our investments, we are far from having any problems here: the net debt of the company is near 0. In addition, the total sum of our current net treasury and undrawn syndicated credit – EUR 143m - demonstrates the substantial financial flexibility from which we benefit.

Would it be correct to say that as far as your international presence is concerned, there is unlikely to be much change?

Indeed, the euro is predominantly the currency of invoicing. However, recently European clients, particularly in aeronautics, are asking us to invoice them partially in dollars. We are protected from this risk, which remains minimal, by classic forward transactions. As far as our British subsidiary is concerned, apart from the natural cash flow cover, we can turn to the classic cover of billing for the balance, as for the dollar. [[[PAGE]]]

What is your policy when it comes to the investment of surpluses?

For a long time, the aim has been to be able to mobilise our resources with minimal constraint. Investments, both liquid and secure, are split in four different ways: unit trusts, certificates of deposit – for which we carry out a credit analysis followed by the bank counterparties – fixed term deposits and treasury bills.

What about information technology and banking communication?

We have been using Kyriba tools in ASP mode since 2007. This system, which we like, is also very practical because the back office of the treasury is geographically separate from the central treasury. Sepa is one of our projects for the year. We will take advantage of the synchronisation of payments, which will take place at the same time as the discontinuation of the Etebac protocol, to rationalise our banking communications in Europe. We are at the analysis phase of the systems of our subsidiaries, in order to be able to make an appropriate choice between SwiftNet Alliance Lite and SwiftNet for office administration. Each of these options seems to meet the expectations of a company like ours, which is always likely to grow.

What importance do you attach to forecasts?

We are speeding up the regularity of the forecasts, which brings us into regular contact with our colleagues in the accounts departments of our subsidiaries. They give us cash reports every ten days and we readjust our forecasts every month. A detailed report is given to our financial director every ten days.

The total sum of our current net treasury and undrawn syndicated credit- EUR 143m- demonstrates the substantial financial flexibility from which we benefit.

What is the make-up of the team of which you are in charge?

There are three of us in the central accounts department, where tasks are divided in the traditional way between the front and middle offices. In addition there is the back office, which is in Cherbourg, and we have equivalents in the subsidiary treasuries.

What path did your career follow before your arrival at Assystem?

I wasn’t involved in accounts at the end of my higher education studies, which I completed at the ISG Business School where I nevertheless opted for the field of finance. I developed my understanding of more aspects of business finance during 12 years spent at Framatome, specifically international finance, management control and debt management. This experience was completed by a spell in a bank, before my arrival at Assystem a year and a half ago.     

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Article Last Updated: May 07, 2024

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