SOPRA_STERIA_REGISTRATION_DOCUMENT_2017

2017 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

c. Translation of foreign currency transactions Transactions denominated in foreign currencies are translated to the functional currency at the exchange rate applying on the transaction date. Foreign exchange gains and losses arising on settlement, as well as those arising from the translation of monetary assets and liabilities that are denominated in foreign currencies at the end-of-period

exchange rate, are recognised in profit or loss under Other current operating income and expenses for transactions hedged against foreign currency risk and under Other financial income and expenses for all other transactions.

NOTE 2 SCOPE OF CONSOLIDATION

Consolidation methods Sopra Steria Group SA is the consolidating company.

Investments in entities over which the Group exerts significant influence (associates) are accounted for under the equity method. Significant influence is deemed to exist, unless clearly demonstrated not to be the case, when a parent company directly or indirectly holds 20% or more of the voting rights of the investee. Intercompany transactions as well as balances and unrealised profits on transactions between Group companies are eliminated. The accounts of all consolidated companies are prepared as at 31 December. Those accounts have, where applicable, been restated to ensure the consistency of accounting and measurement rules applied by the Group. The scope of consolidation is presented in Note 17.

The companies over which Sopra Steria Group has exclusive control are fully consolidated. An investor controls an investee where that investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Consequently, an investor controls an investee if and only if all the following criteria are met: p it has power over the investee; p it is exposed, or has rights, to variable returns from its involvement with the investee; p it has the ability to exercise its power over the investee in such a way as to affect the amount of returns it obtains.

2.1. Main acquisitions p Cassiopae – The entities of the Cassiopae group have been included in Sopra Steria Group’s scope of consolidation since 1 April 2016. On 31 March 2017, an adjustment was made to the fair value of the assets acquired and liabilities assumed. The final goodwill related to this acquisition was determined as follows:

Cassiopae

(in millions of euros)

Total assets acquired Total liabilities assumed

63.9 -71.1 -7.2 -2.2 53.3 58.4

TOTAL NET ASSETS ACQUIRED/(NET LIABILITIES ASSUMED)

Minority interests PURCHASE PRICE

GOODWILL

In addition, the Group made an irrevocable commitment to the other shareholders of KSEOP (Cassiopae’s holding company), through a shareholders’ agreement, to acquire their shares, in the form of a put option on these shares for a period of eight years as from the acquisition date. This acquisition was concluded on 26 January 2017, giving Sopra Banking Software full ownership of KSEOP. The liability recognised at 31 December 2016 in respect of this put option (measured at the purchase price of 25% of KSEOP’s capital, i.e. €26.5 million) has therefore been fully settled (see Note 7.3). p Kentor – On 30 August 2017, via its Swedish subsidiary Sopra Steria AS, Sopra Steria acquired 100% of the share capital of Kentor, a Swedish group of companies, which until then had been wholly

owned by the Norwegian group TeleComputing. Headquartered in Stockholm, Kentor provides services in the areas of consulting, systems integration and application management. Its acquisition strengthens Sopra Steria’s position in Scandinavia (Other Europe). The companies of the Kentor group have been consolidated in the Group’s financial statements since 30 August 2017. They are all part of the Scandinavia cash-generating unit. Based on the assets acquired and liabilities assumed, a value of €12.1 million was assigned to Kentor’s client relationships. The definitive purchase price allocation period runs until 29 August 2018.

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SOPRA STERIA REGISTRATION DOCUMENT 2017