2021 Universal Registration Document

5 2021 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Change in pension assets and liabilities in France c. In terms of sensitivity, a 0.50-point increase or decrease in the discount rate would decrease the benefit obligation by €9.2 million or increase it by €10.1 million, respectively. The retirement bonus obligation in France breaks down as follows by maturity:

31/12/2021

31/12/2020

(in millions of euros)

Present value of theoretical benefits payable by the employer in : Less than 1 year p

4.4

4.3

1 to 5 years p 5 to 10 years p 10 to 20 years p

19.7 39.6 63.9 26.0

18.2 41.6 69.2 31.6

More than 20 years p TOTAL OBLIGATION

153.6

164.9

Defined-benefit plans are paid for either directly by the Group, which funds the benefits to be granted, or via pension funds to which the Group contributes. In both cases, the Group recognises a pension liability corresponding to the present value of future payments, which is estimated by taking into consideration relevant internal and external factors as well as the laws and regulations specific to each Group entity. Certain post-employment defined-benefit plans may comprise plan assets intended to settle the obligations. They are mainly administered by pension funds that are legally separate from the entities making up the Group. The assets held by these funds are mainly shares or bonds. Their fair value is generally calculated using their market value. Obligations in respect of post-employment defined-benefit plans are measured annually using the actuarial valuation method known as the projected unit credit method, which stipulates that each period of service gives rise to an additional unit of benefit entitlement, and measures each unit separately to obtain the final obligation. These calculations include assumptions regarding life expectancy, employee turnover and projected future salaries. The present value of retirement benefit obligations is determined by discounting future cash outflows using the rate for market yields on high-quality corporate bonds of the currency used to pay the benefit and a term consistent with the estimated average term of the concerned retirement benefit obligation.

The expense representing the current service cost for the period is recognised in profit or loss within Staff costs . The effects of plan amendments, recognised through past service cost (cost of service in prior periods modified by the introduction of changes or new benefit plans), are recognised immediately in profit or loss within Staff costs when they occur. Any gains or losses recognised in the event of defined-benefit pension plan curtailments or settlements are recognised in profit or loss when the event occurs within Other operating income or Other operating expenses , respectively. An interest expense is recognised in profit or loss within Other financial expenses and corresponds to the cost of unwinding the discount of the retirement benefit obligations net of plan assets. The assumptions used in the actuarial calculation of defined-benefit pension obligations involve uncertainties that may affect the value of financial assets and obligations to employees. Actuarial gains and losses arising from the effects of changes in demographic assumptions, changes in financial assumptions and the difference between the discount rate and the actual rate of return on plan assets, less their management and administrative costs, are recognised directly in equity under Other comprehensive income , and are not reclassifiable to profit or loss.

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SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2021