2021 Universal Registration Document


Detailed presentation of risk factors 1.3.



Risk description The business activities of the Group’s clients are changing and are being transformed as a result of their digital transformation and the adaptation of competitors, and the development of new businesses and/or new organisations. Clients are seeking to become more agile, and to do so they are reinventing their business models, organisational structures and resources. These developments concern all of the Group’s businesses. If the Group is unable to understand, satisfy and anticipate clients’ needs, an unsuitable market positioning and/or difficulties in implementing its strategy could significantly impact its financial performance and image, and ultimately call into question its strategy. Risk management measures The management of this risk is integrated into the development of regular basis by the Chairman, the Chief Executive Officer and the the Group’s strategy as well as its effective implementation. Each Strategy Department, in liaison with the Group’s Executive year, the Group conducts a strategy review and/or update, under Committee.

the supervision of the Strategy Department, the Chairman and the Chief Executive Officer, with the assistance of the Group’s Executive Committee, covering some or all business lines and markets in which it operates. This exercise, which draws both on external studies and internal feedback from stakeholders in contact with clients, leads the Group to take a certain number of decisions, in particular involving the transformations to be undertaken or the acquisitions strategy. These decisions are applied, on the one hand, by the corporate functions, responsible in particular for investing on behalf of the entire Group in support of the planned transformations and, on the other hand, by all Group entities (countries and subsidiaries) as part of the updating of their three-year strategic plans. The Group-wide implementation of the transformations initiated by the central functions as well as the progress made on each entity’s strategic plan are monitored on a

By way of illustration, the following were subject to additional review and/or monitoring in 2021: transforming the integration and infrastructure management p offerings; developing consulting activities within the Group; p Sopra Banking Software’s strategic plan; p establishing a Software division; p strengthening priority verticals, particularly the Financial Services p vertical;

the Group’s industrial policy; p developing human resources; p acquisitions. p


Risk description In general, the uncertain economic situation in Europe as well as possible consolidation within the various sectors, or a slowdown in the business activity of a specific client or major sector, could have a negative impact on the Group. To cope with budgetary pressure, a major client or even the entire sector could be forced to curtail IT investment projects, resulting for the Group in the loss of associated revenue and requiring the reassignment of the teams in place, a risk all the more difficult to manage if the downward fluctuations could not have been predicted. Main clients include Airbus, Banque Postale, BNP Paribas, the UK Cabinet Office, CNAM, Crédit Agricole, EDF, the UK Department for Work and Pensions, the UK Home Office, the UK Metropolitan Police, the French Ministry of the Armed Forces, the French Ministry of the Economy, Finance and Recovery, the French Ministry of the Interior, the UK Ministry of Defence, the UK Ministry of Justice, the UK National Health Service, Norddeutsche Landesbank, Orange, the French Job Centre, SNCF, Société Générale and Sparda Banken. In 2021, the Group’s top client accounted for 6.2% of revenue, the top five clients represented 21.6% and the top ten contributed 32.5%.

Risk management measures The Group’s policy is to maintain a multi-client and multi-sector portfolio across multiple geographical operations and sites, in particular to avoid any uncontrolled concentration risk. The Group’s strategy relating to key accounts is reviewed each year in accordance with country, business line and sector-specific strategic reviews in order to adapt this strategy to market developments. This is the object of a dedicated exercise with all

concerned parties. A regular review at monthly steering committee meetings is also organised within the Group to monitor market developments. Furthermore, swiftly implemented action plans help mitigate, if necessary, some of the effects of a reduction in business activity, such as transferring projects to the job markets affected, reskilling of employees and limiting subcontractors.



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