2021 Universal Registration Document

5 2021 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

The €53.4 million change in translation adjustments resulted from changes in the value of the euro against the following currencies:

31/12/2021

31/12/2020

(in millions of euros)

GBP

47.1

-38.2

NOK/SEK

4.5 1.8

-4.0 -0.1

Other currencies

TOTAL

53.4

-42.3

8.1.2. The net carrying amounts of goodwill by CGU are as follows:

Breakdown of goodwill by cash-generating unit (CGU)

31/12/2021

31/12/2020

(in millions of euros)

France

629.6 611.3 351.8 375.5

558.7 571.3 330.9 366.1

United Kingdom Other Europe (1)

Sopra Banking Software

Sopra HR Software

16.2

16.2

TOTAL

1,984.3

1,843.2

“Other Europe” comprises the following CGUs, which are tested separately: Germany, Scandinavia, Spain, Italy, Switzerland, Belgium, Luxembourg and Sopra Financial Technology. (1)

For each business combination, the Group may elect to recognise under its balance sheet assets either partial goodwill (corresponding only to its percentage of ownership interest) or full goodwill (also including the goodwill corresponding to minority interests) according to the method for business combinations presented in Note 2.1. This decision is made on an acquisition-by-acquisition basis.

Should the calculation of goodwill result in a negative difference (bargain purchase), the Group recognises the resulting gain entirely in profit or loss, after reassessing whether all assets and liabilities have been correctly identified. Goodwill is allocated to cash-generating units for the purposes of impairment tests as set out in Note 8.1.3. Such tests are performed when there is an indication of impairment, and in any event at the balance sheet date of 31 December.

Impairment testing 8.1.3. The Group performed impairment tests at 31 December 2021 in line with standard practice. It began by reviewing its discount rate and perpetual growth rate parameters with respect to 31 December of the previous year. It did not include an additional risk premium related to Covid-19.

The tests were performed using the following parameters:

Discount rate

Perpetual growth rate

31/12/2021

31/12/2020

31/12/2021

31/12/2020

France

7.7% 8.5%

8.2% 8.4%

2.0% 2.0% 2.0% 2.0% 2.0%

2.0% 2.0% 2.0% 2.0% 2.0%

United Kingdom

Other Europe

7.5% to 9.0% 8.2% to 9.0%

Sopra Banking Software

7.7% 7.7%

8.2% 8.2%

Sopra HR Software

201

SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2021