PARIS – 12 OCTOBER 2016

Assystem Global Product Solutions (GPS)

BUSINESS DAY

2

GPS POSITIONING

GPS IN GERMANY

TABLE OF CONTENTS

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26

DAVID BRADLEY - EVP ASSYSTEM GPS

ALEXANDER GRAF - CEO GERMANY & VP INDUSTRY

GPS ON THE MOVE: NOW 14 GPS ON THE MOVE: GOING FORWARD 19

GPS IN ACTION - CASE STUDIES 33 ROCH THALLER - VP AUTOMOTIVE & TRANSPORTATION

GPS POSITIONING

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A TRUSTED PARTNER IN THE DEVELOPMENT OF END-TO-END ENGINEERING SOLUTIONS FOR TECHNOLOGY INTENSIVE SECTORS

GPS POSITIONING

Positive market dynamics

Full product life-cycle coverage in all technology intensive sectors

3 fundamentals: People, Processes & Intellectual Property

Global and integrated network to support our clients

8,5001 TOTAL STAFF

10 COUNTRIES

€530m IN REVENUE IN 2015

1 Employees, contractors and staff at subcontractors

Aerospace Automotive Industry Transportation

Key drivers

Technology intensive sectors

5

R&D OUTSOURCING MACRO TRENDS GPS POSITIONING

MARKET DEMAND

Technical assistance Sub project Project Transformational

outsourcing Business process

outsourcing

COMPETITION

High number

Suppliers with critical mass (100 FTE min)

Reduced panel of suppliers (< 20)

Privileged partners (~4)

Principal partner (1-2)

GPS TODAY

SUSTAINABILITY SAFETY VALUE FOR MONEY IOT

Future demand drivers

Supply chain consolidation trends

6

POSITIVE MARKET DYNAMICS FOR GPS GPS POSITIONING

AUTOMOTIVE INDUSTRY TRANSPORTATION

GLOBAL MARKET

AVAILABLE MARKET

AEROSPACE & DEFENCE

7

FULL PRODUCT LIFE-CYCLE COVERAGE IN THE 4 GPS SECTORS GPS POSITIONING

DESIGN IN-SERVICE SUPPORT PRODUCTION

AEROSPACE

INDUSTRY

TRANSPORTATION

AUTOMOTIVE

Airframe engineering Propulsion systems Interiors Avionics

ADAS/e-mobility Body in white/Trim Infotainment Embedded electronics

prototyping

HMI systems Connectivity Product design

Signalling Safety Train design/TCMS Independent safety Assessment

Upgrades and

modifications Life cycle cost optimisation

Incident analysis System test and validation

Cybersecurity Field support

Total cost of ownership optimisation

Revamping

Serial support Head of version engineering Product test/Quality Manufacturing/Supply chain

Process design & Set up Manufacturing support Supply chain management

Value engineering Supply chain management Process automation

Supplier management

Indicative/not exhaustive

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3 FUNDAMENTALS GPS POSITIONING

People Development

Assystem Institutes dedicated to training

Remote working

International mobility

Continuous professional development

PEOPLE INTELLECTUAL PROPERTY PROCESSES

1 2 3

Global Management System Design management Process automation Project & risk management Delegated design

authorisation Independent approvals

EN9001 EASA- DOA

R&D Projects Cubesat Amphibian MiTu

IPR Processes S/W test Assyst-me

Partners Cellular Core Tech

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CONTINUOUS INVESTMENT IN PEOPLE GPS POSITIONING

Project Management Institute Aerospace Institute Automotive Institute Systems Institute

Employee training is a priority for Assystem

Institutes created to train and develop

GPS expertise

4

10

STATE-OF-THE-ART PROCESS MANAGEMENT GPS POSITIONING

Client requirements (Airbus, Rolls-Royce, Alstom)

International standards (ISO 9001, EN9100, PMI,…)

Common processes for all geographies

GPS GLOBAL MANAGEMENT SYSTEM STATE-OF-THE-ART PROCESS MANAGEMENT

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INTELLECTUAL PROPERTY - EXAMPLES OF INNOVATION GPS POSITIONING

CUBE SATELLITE MITU CELLULAR CORE TECH

HARD- AND SOFTWARE SOLUTIONS FOR TESTING

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GLOBAL NETWORK AND LOCAL PRESENCE GPS POSITIONING

Strong pan-European presence with key positions in France, UK and Germany

Capabilities and nearshore centre in Romania

Capabilities and offshore centre in India

Emerging North American centre

1Employees, contractors and staff at subcontractors

8,5001 total staff in 10 countries

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NEARSHORING: EXAMPLE IN THE AUTOMOTIVE SECTOR GPS POSITIONING

> 730 Automotive engineers

> 20 years offshore expertise in Romania

2 premises Bucharest, Iasi

Local front offices close to European automotive clients

Global technical office support from Automotive Engineering Centre

+

AUTOMOTIVE ENGINEERING CENTRE AT THE HEART OF OUR NETWORK OF CAPABILITIES

AUTOMOTIVE ENGINEERING CENTRE

GPS ON THE MOVE: NOW

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ORGANISATIONAL STRUCTURE: GEARED TO FACILITATE GROWTH GPS ON THE MOVE: NOW

Strategic roadmaps Global client development

NEW COUNTRY

Geographical expansion facilitated by regional model

Limited effect on organisation when operations start up in a new country

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STRATEGIC BUSINESS UNITS REGIONS

Operations/Project delivery Capability development

AEROSPACE AUTOMOTIVE

INDUSTRY TRANSPORTATION

SPAIN/ PORTUGAL

ROMANIA

GERMANY

NORTH AMERICA

INDIA

UK

REGIONS PARIS SOUTH WEST

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KEY CLIENTS IN OUR 4 SECTORS GPS ON THE MOVE: NOW

ROLLS ROYCE

AEROSPACE AUTOMOTIVE INDUSTRY TRANSPORTATION

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RECENT GROWTH DYNAMICS GPS ON THE MOVE: NOW

Aerospace Automotive

Both in

&

HEALTHY TO VIGOROUS ORGANIC GROWTH

CHANGE IN INDUSTRY & ACTIVITY MIX

33% in Automotive1

vs < 25% in 2014

35% in manufacturing

& in-service support activities1

vs 10% in 2014

DECREASE IN STAFFING ACTIVITY IN GERMANY

2% in LAK1

down from 4% in 2014

1 Based on total H1 2016 GPS revenue

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BREAKDOWN OF REVENUE BY LIFE-CYCLE PHASE1

GPS ON THE MOVE: NOW

PRODUCT & SYSTEMS DEVELOPMENT 64%

Manufacturing & Supply chain

26%

In-service 8% LAK 2%

1 Based on total H1 2016 GPS revenue

Capability-driven model creates growth opportunities

Systems

Structure

Engines

Electronic

Support

44%

26%

15%

4% 11%

GPS ON THE MOVE: GOING FORWARD

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Develop capability clusters to take proven business offers to new sectors/clients

Carry out selective external growth to foster use of new capabilities

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4 GROWTH DRIVERS GPS ON THE MOVE: GOING FORWARD

Focus on customers resource strategy

Benefit from supply panel reductions

Enhance size and scope of business with key accounts CLIENT

FOCUS CLIENT SUPPLY CHAIN

REGIONAL GROWTH

CAPABILITY- DRIVEN

GROWTH

1 Capitalise on clients’

globalization strategy to extend geographical footprint

Provide additional support to OEMs’ Tier1 supply chain

2

Target regional

growth to access new clients

3

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Organise key GPS capabilities around centres of expertise

Provide high value-added solutions based on expertise, tools and methodologies

Enhance competitiveness through combined use of onshore/offshore resources

Support regional business development through mobilisation of key experts & sales resources

DEVELOPMENT/IMPLEMENTATION OF CENTRES OF EXCELLENCE GPS ON THE MOVE: GOING FORWARD

CoE

Objectives

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REGIONAL GROWTH PRIORITIES

PRESENCE BUILD-UP

GPS ON THE MOVE: GOING FORWARD

REINFORCEMENT IN EUROPE

INITIAL FOOTHOLD

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EXTERNAL GROWTH: PRIORITIES GPS ON THE MOVE: GOING FORWARD

RECENTLY FUTURE ACQUISITIONS

To serve regional & capability-driven growth

strategy

Focus on acquiring expertise

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ORGANIC GROWTH

& • 5%-10% per year

in a market driven by technological and environmental innovations

• 5% per year fuelled by panel concentration, manufacturing & in-service support positioning

• 0%-5% per year driven by market share growth

EXTERNAL GROWTH

• Offer new capabilities to our Top 10 clients, i.e. “routes to market”, and serve their globalisation needs

• Serve regional growth priorities

MEDIUM TERM TARGETS GPS ON THE MOVE: GOING FORWARD

Objective of balancing revenue growth between organic & external growth

Enhanced EBIT margin thanks to: Sustained growth Improved business mix Efficiency gains for project delivery (lean management, CoEs, near/offshoring) & support functions

Aerospace

Automotive Industry

Transportation

Q & A

GPS IN GERMANY

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A SIGNIFICANT FOOTPRINT IN GERMANY GPS IN GERMANY

GmbH

AEROSPACE AUTOMOTIVE INDUSTRY & TRANSPORTATION

Stade

Wolfsburg

Köln

Rostock

Donauwörth Ingolstadt

Bremen

Stuttgart

München

Oberursel

Berlin

Hamburg

Support along the whole engineering lifecycle

Engineering partner for mechanics, electronics and software

Regional operations with global capabilities

Fully-equipped Assystem locations close to clients

€107m in revenue in 2015

Engineering solutions & products Aerospace Automotive Transportation Industry

Certifications EN ISO 9001 EN 9100

(aviation standard) ISO 27001

(information security management

1,000+ staff

AUTOMOTIVE

AEROSPACE

INDUSTRY & TRANSPORTATION

10%

40% 50%

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ASSYSTEM’S STRATEGY IN GERMANY (1/3)

GPS IN GERMANY

Ambition 2020: to double revenue and significantly enhance EBIT margin

Drivers Focus on all of our market sectors

Growth mainly led by Automotive and Industry & Transportation

Continuation of the business model transition in Aerospace from hired labour/LAK to fixed-price, outsourcing/offshore

Global solutions based on centres of excellence (CoE) that offer high organic growth opportunities (Cybersecurity, Test House, Embedded software, Industry 4.0)

Acceleration of growth: 1-2 planned acquisitions in Automotive and Industry (targeted individual size: €30m/€40m revenue)

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ASSYSTEM’S STRATEGY IN GERMANY (2/3)

GPS IN GERMANY

Client diversification

Export of capabilities & solutions from German CoE

Increase competitiveness:

Optimised use of resources (CoE, onshore/offshore)

P&L responsibility per region

One integrated operations & client management model

Execution levers

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ASSYSTEM’S STRATEGY IN GERMANY (3/3)

GPS IN GERMANY

GmbH

BY END OF H1 2017

Merger of legal entities in progress

EXPECTED BENEFITS: Higher market visibility & enhanced credibility Integration platform for future acquisitions Significant fixed-cost savings

AT PRESENT

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GLOBAL CAPABILITY TO BE REPLICATED FOR OTHER GPS OFFERINGS GPS IN GERMANY

Full-service contractor for 100% outsourced Hardware-in-the-Loop testing Providing testing infrastructure and services Testing all electronic systems from airbag to exhaust after treatment

Full implementation of Assystem’s best sourcing model: Client management and test-specification services based locally in Stuttgart Test management and services based at the Automotive Engineering Center in Romania

Functional testing of ECU network Development of test cases from system specification Regression testing of every ECU Software release Maturity report delivered after each test campaign

Fixed-price catalogue of services – “Pay-per-function” On-demand orders through a web-based ticket system

PROJECT

Case study - Testhouse for Daimler

SERVICES

BENEFITS

Q & A

GPS IN ACTION CASE STUDIES

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SUPPORTING THE ENTIRE PRODUCT LIFE CYCLE GPS IN ACTION – CASE STUDIES

E-suspension Plastic equipment development Product cybersecurity Advance Driver Assistance Systems Derivative development & industrialisation

PRODUCT ENGINEERING

MANUFACTURING & PRODUCTION SUPPORT

IN-SERVICE & TESTING

CASE STUDIES

Engine control unit development Aerostructure work package development Large civil aircraft electrical system

installation FAL ground tests Life cycle cost reduction project

Optimisation of production facility efficiency

Independent Safety Assessment

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AUTOMOTIVE CAPABILITIES: 10 SYSTEMS & SOLUTIONS GPS IN ACTION – CASE STUDIES

ADVANCED DRIVER ASSISTANCE SYSTEMS

E-MOBILITY

ELECTRIC & WIRING

+ -

INFOTAINMENT, CONNECTIVITY & INSTRUMENTATION

POWERTRAIN CONTROL

| PROJECT MANAGEMENT | PROCESS DESIGN

TRIM & EQUIPMENT

BODY IN WHITE

CHASSIS

COMPLETE VEHICLE

SERVICE CENTRES (DIAGNOSTICS, TESTING

ETC.)

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AUTOMOTIVE (1/5) - E-SUSPENSION GPS IN ACTION – CASE STUDIES

Development & series delivery of electronic components Power electronic ECU for an electric, highly dynamic pump drive Advanced chassis system & controls

Component and controller development Safety engineering Hardware development Software development (based on Autosar SLP 10) Functional/engineering tests Industrialisation & transition to mass production

First A-samples delivered after 6 months Development of control algorithm for client pump noise cancelling

system

PROJECT

SERVICES

BENEFITS

Fixed price In-house project Duration: 3 years

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AUTOMOTIVE (2/5) - PLASTIC EQUIPMENT DEVELOPMENT GPS IN ACTION – CASE STUDIES

System: body trim equipment Duration: 1 year

Design & development of plastic injected equipment for new vehicles e.g. door panels, body side trims, bumpers, instrument panels

Volume, geometry and interface studies Initial style studies: product/process feasibility FMEA analysis Definition of RFQ product specifications Analysis of supplier proposals Prototyping Consulting & management for injection tooling development & installation Product development convergence through to mass production

Plastic equipment expertise from Plast Concept > 20 years Partnership with toolmakers and prototyping and testing facilities Cost efficiency: Nearshoring with AEC Lean expertise (engineering, supplier management)

PROJECT

SERVICES

BENEFITS

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AUTOMOTIVE (3/5) - PRODUCT CYBERSECURITY GPS IN ACTION – CASE STUDIES

Assessment of security & privacy protection policy Process management Architecture assessment and improvement Environment analysis/publications survey

Development of a security concept for inductive charging Threat analysis and specification of requirements Security concept development Security design coordination

Software development Security processes management Development of a secure inductive battery charging system Design of a security system for automotive info-/entertainment

Improved security & privacy processes, methods & tools Deeper cybersecurity know-how

PROJECT

SERVICES

BENEFITS

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AUTOMOTIVE (4/5) - SOLUTIONS FOR ADVANCED DRIVER ASSISTANCE SYSTEMS

GPS IN ACTION – CASE STUDIES

1 CTFL: Certified tester qualification

System: ADAS Phase: Platform development Duration: 2 years

Development of a front traffic alert software for an automotive OEM

System architecture Sensor qualification & component selection (radar sensor) Requirement & supplier management Process development Field testing

Development of an end-to-end function, including tests performed by certified personal (CTFL)

Effective function testing using Assystem tools & IP (TESTONA)1

PROJECT

SERVICES

BENEFITS

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AUTOMOTIVE (5/5) - PRODUCT DEVELOPMENT & INDUSTRIALISATION FOR A VEHICLE DERIVATIVE

GPS IN ACTION – CASE STUDIES

System: Body trim equipment Objective: Development & industrialisation of components Scope: > 60 engineers

Development & industrialisation of components for a vehicle derivative (2 sites) Structures: outer panels, reinforcements, outer/inner trims Roof opening system Rear bumper, soft & injected trims

Product design & development incl. digital mock-up & geometry convergence

Supplier management (toolmakers and Tier 1 suppliers): technical specifications, quality convergence & integration activities

Sub-system & performance tests

Product development & project management know-how Cost efficiency: Nearshoring with AEC Lean expertise (engineering, supplier management)

PROJECT

SERVICES

BENEFITS

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AEROSPACE CAPABILITIES: 10 SYSTEMS & SOLUTIONS GPS IN ACTION – CASE STUDIES

ELECTRIC & WIRING

+ -

INFOTAINMENT & CONNECTIVITY GROUND TESTS

PROPULSION SYSTEMS

AVIONIC SYSTEMS

PRIMARY STRUCTURES

EQUIPMENT

FAL SUPPORT

CABIN & INTERIORS

MANUFACTURING & SUPPLY CHAIN

| Project Management | Process Design

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AEROSPACE (1/5) - ENGINEERING: ENGINE CONTROL UNIT DEVELOPMENT

GPS IN ACTION – CASE STUDIES

1. Incl. Assystem IP

Fixed price In-house project Duration: 4 years

Development of a dual channel control unit for V12 Diesel aero engine (Full Authority Digital Engine Control (FADEC)), including prototyping

Full development of ECU (Electronic control unit) & test equipment1

EASA certification support

Fast prototyping (first delivery after 11 months) Design of Glow Plug Power Unit (GPPU)

PROJECT

SERVICES

BENEFITS

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AEROSPACE (2/5) - ENGINEERING: DEVELOPMENT OF AEROSTRUCTURE WORKPACKAGES

GPS IN ACTION – CASE STUDIES

Development of aerostructure workpackages for derivative programme

40+ FTE in France and Romania

Solution design 3D drawings Stress analysis

Strong level of expertise thanks to Assystem’s previous experience Cost efficiency thanks to nearshoring with AEC

PROJECT

SERVICES

BENEFITS

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AEROSPACE (3/5) - ENGINEERING: LARGE CIVIL AIRCRAFT ELECTRICAL SYSTEM INSTALLATION

GPS IN ACTION – CASE STUDIES

Management of design modifications for a large civil aircraft electrical system installation

100+ FTE in France, Germany & Romania

Solution design Modifications of 3D drawings Stress analysis

Strong level of expertise thanks to Assystem’s previous experience Cost efficiency thanks to nearshoring with AEC in Romania

PROJECT

SERVICES

BENEFITS

45

AEROSPACE (4/5) - MANUFACTURING SUPPORT– FAL GROUND TESTS

GPS IN ACTION – CASE STUDIES

Large civil aircraft ground testing 100+ FTE dedicated to the Final Assembly Line (FAL) - Strong

interaction with global production flow

Designing test procedures Performing & monitoring ground tests

Strong level of expertise thanks Assystem’s previous experience Workforce adaptability in line with production ramp-up

requirements

PROJECT

SERVICES

BENEFITS

46

AEROSPACE (5/5) - GAS TURBINES: LIFE CYCLE COST REDUCTION PROJECT

GPS IN ACTION – CASE STUDIES

Contract model: Fixed price Incentivised

Locations: UK India

Team size: 50 FTEs Duration: 4 years

Life Cycle Cost (LCC) reduction initiatives for engine OEM in the areas of product design, manufacturing & in-service

Proposing design modifications Modifying overhaul procedures Proposing changes to maintenance policy Carrying out commercial renegotiations

Strong level of engineering and commercial expertise (knowledge of client’s team & operating model)

Cost efficiency thanks to offshoring in India Flexible business model based on success fees (client’s LCC savings)

PROJECT

SERVICES

BENEFITS

47

INDUSTRY CAPABILITIES: 7 SYSTEMS & SOLUTIONS GPS IN ACTION – CASE STUDIES

SYSTEMS ENGINEERING

TESTING SOLUTIONS

MACHINE CONTROL & AUTOMATION

SOLUTIONS

MANUFACTURING & SUPPLY CHAIN

SOLUTIONS

SMART DATA & NETWORKING SOLUTIONS

CYBERSECURITY SOLUTIONS

HMI SOLUTIONS

| Project management | Process design

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INDUSTRY – PRODUCTIVITY IMPROVEMENT ASSESSMENT VIA INDUSTRY 4.0 TECHNOLOGY

GPS IN ACTION – CASE STUDIES

Productivity & efficiency assessment at an industrial company’s production site using a combination of intelligent systems Concept analysis, modelling & set-up Technology evaluation

Use-case modelling (condition monitoring) Definition & management of requirements Software development: Data import and handling Modular network

Assystem’s high level of expertise 20+ years of experience in the industry sector Know-how in systems, software & HMI development

Integration of Industry 4.0 technologies into the condition monitoring system (Assystem is a member of “Platform Industry 4.0”)

PROJECT

SERVICES

BENEFITS

49

TRANSPORTATION CAPABILITIES: 3 SYSTEMS & SOLUTIONS GPS IN ACTION – CASE STUDIES

Rolling stock Train systems Structure (mechanical & electrical) Interiors TCMS & traction Manufacturing engineering RAMS studies Independent Safety Assessment

Signalling Mainline (e.g. ERTMS L1&2) Mass Transit (e.g. CBTC) Interlocking Traffic control RAMS studies Independent Safety Assessment

In-service Integrated logistics support Real-time data collection and

analysis using smart/big data Maintenance & operations

optimisation System upgrades

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TRANSPORTATION - INDEPENDENT SAFETY ASSESSMENT GPS IN ACTION – CASE STUDIES

Objective: Safety assessment

Domain: Signalling Phase: Acceptance

Duration: 3 years

Independent Safety Assessment (ISA) of 2 highly critical generic signalling products

Safety assessment carried out by specialised and certified personnel for: Radio Block Centre (RBC) European Vital Computer (EVC)

PROJECT

SERVICES

BENEFITS

Minimum rework activities after assessment process thanks to: The assessment team’s signalling expertise Assystem’s “client first” culture

Workforce and deliverables adaptability as a result of Assystem’s flexibility

Q & A