2021 Universal Registration Document

5 2021 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Other long-term employee benefits 5.3.2. Other long-term employee benefits may include the portion in Germany and Belgium; and end-of-contract bonuses in Italy, available in more than one year of employee profit-sharing liabilities Lebanon and India. Benefits for employees in India make up the allocated to a current account and locked in for five years in France; largest portion of these liabilities for 2021, for €6.0 million long-service awards in Germany and India; pre-pension obligations (€4.3 million at 31/12/2020).

The remaining long-term employee benefits primarily consist of: long-term paid leave such as long-service or sabbatical leave; p long-service awards; p incentives and bonuses payable 12 months or more after the p end of the period in which the employees render the corresponding service; profit-sharing liabilities. These are recognised at the present p value of the obligation at the balance sheet date. For the year in which this profit-sharing is appropriated, the difference between the present value of the profit-sharing and the Share-based payments 5.4. The cost of the benefits granted to employees under stock option, free performance share and employee share ownership plans, which amounted to €6.7 million (€4.2 million in 2020), is charged to Profit from recurring operations .

nominal value that will be paid to employees at the close of the lock-up period is recognised as a financial liability and balanced by an additional staff expense. It is then reversed as a deduction against financial expenses over the following five years; deferred compensation paid 12 months or more after the end p of the period in which it is earned. All expenses relating to other long-term benefits, including changes in actuarial assumptions, are recognised immediately in profit or loss within Staff costs in respect of the service cost and within Other financial income and expenses in respect of the cost of unwinding the discount.

In 2021, as in 2020, it mainly consisted of a charge corresponding to benefits granted to employees in respect of free performance share plans.

5.4.1. Free performance share plans Expenses related to free share plans totalled €4.7 million (compared with €2.2 million in financial year 2020).

Information on the rules of the main free share plans is set out below:

February 2018 plan

May 2021 plan

Date set up by General Management and/or the Board of Directors Number of shares that may be granted

16 February 2018

26 May 2021

128,000

219,200

1 January 2018 to 31 December 2020

1 January 2021 to 31 December 2023 26 May 2021 to 30 June 2024 inclusive

Performance measurement period

16 February 2018 to 31 March 2021 inclusive

Vesting period

Mandatory holding period following the grant of shares

None

None

1) Consolidated revenue growth in financial years 2018, 2019 and 2020 2) Level of consolidated operating profit on business activity in financial years 2018, 2019 and 2020 3) Level of consolidated free cash flow in financial years 2018, 2019 and 2020

1) Consolidated revenue growth in financial years 2021, 2022 and 2023 2) Level of consolidated operating profit on business activity in financial years 2021, 2022 and 2023 3) Level of consolidated free cash flow in financial years 2021, 2022 and 2023 Proportion of women in senior management positions at the Group at 30 June 2023

Performance conditions stipulated in the plan

Additional grant condition

Number of potential shares that could have been granted as at 1 January 2021 Number of shares granted in 2021 Number of shares cancelled in 2021 Number of shares vested at 31 December 2021

67,680 67,680

219,200

-

0

32,880

67,680

-

Number of potential shares that could have been granted as at 31 December 2021

-

186,320

Share price Risk-free rate

153.80

149.50

-

-

192

SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2021