2021 Universal Registration Document

6 2021 PARENT COMPANY FINANCIAL STATEMENTS Notes to the balance sheet

PROVISIONS FOR RETIREMENT BONUSES 5.4.1. Sopra Steria Group recognises provisions for its employee benefit obligations in accordance with the terms of voluntary and compulsory retirement under the Syntec collective bargaining agreement, as amended in 2004 following the French pension reform act of 21 August 2003. Provisions for retirement bonuses are recognised on an actuarial basis as described below. Assumptions referring to mortality rates are based on published statistical data.

Turnover tables are based on five-year age brackets and are updated at each balance sheet date to reflect separation data for the last five years. The discount rate used to calculate the present value of the obligation is the yield on high-quality corporate bonds (rated AA or higher) denominated in the payment currency and with a maturity close to the average estimated term of the retirement benefit obligation concerned.

31/12/2021

31/12/2020

(in thousands of euros)

Present value of the obligation financed (with corridor)

91,688

91,529

Fair value of plan assets

- -

- -

Difference

Present value of the obligation financed Unrecognised actuarial losses (difference)

91,688 -3,783

91,529 -13,866

Unrecognised past service cost

-

-

Net liabilities on the balance sheet (provision after charge for the year)

87,905

77,663

Balance sheet amounts

-

-

Liabilities

87,905

77,663

Assets

-

-

NET OBLIGATION IN THE BALANCE SHEET

87,905

77,663

undertook further work to measure its retirement benefit obligations. The ANC held that some post-employment benefit plans in France, including retirement bonuses, fell within the scope of the IFRS-IC decision amending the method used to allocate service costs to periods of service. This change had no effect on the method used to determine retirement benefit obligations recognised by Sopra Steria Group and has no impact on the Group’s financial statements. the employees, taking into account actuarial assumptions such as the level of future compensation, life expectancy and staff turnover. Changes in actuarial assumptions that affect the valuation of the obligation are recognised as actuarial gains and losses. Actuarial gains and losses representing more than 10% of the amount of obligations are recognised and amortised over the expected average working lives of the employees

The Company uses the 15-year Bloomberg rate for the eurozone as the benchmark for discounting its retirement benefit obligations. At 31 December, this rate stood at 0.98%. The total obligation in respect of retirement bonuses amounted to €87,905 thousand. Following the 17 November 2021 update to ANC Recommendation 2013-02 of 7 November 2013 on the rules for measuring and recognising retirement benefits and similar benefits, the Company Sopra Steria Group recognises provisions for all of its p commitments in respect of retirement bonuses in accordance with the retirement clauses of the Syntec collective bargaining agreement. Sopra Steria Group’s obligation towards its employees is p determined on an actuarial basis, using the projected unit credit method: the present value of employer’s obligation is recognised in proportion to the probable length of service of

participating in the plan.

PROVISIONS FOR TAX RISKS 5.4.2. The total amount of provisions for taxes recognised at 31 December 2021 was €18,397 thousand. No new tax-related disputes arose during the period; changes during the financial year related to adjustments of provisions made in prior periods. Unused reversals from these provisions amounted to €1,576 thousand in respect of financial year 2021.

PROVISIONS FOR PLANS TO AWARD EXISTING FREE SHARES 5.4.3. Since the Company had expressed its intention to fund long-term incentive (LTI) plans by acquiring existing shares in advance, it had to recognise a provision for contingencies in recognition of the probable outflow of resources. During the financial year, as the 2018 LTI plan expired, the corresponding provision was reversed for €8,973 thousand.

The provision in respect of the 2021 LTI plan stood at €14,185 thousand at 31 December 2021. The characteristics of this plan are set out in Note 4.2.2. The next shares will be delivered in July 2024 when the 2021 LTI plan closes.

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SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2021