SOPRA_STERIA_REGISTRATION_DOCUMENT_2017

2017 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

b. Change in pension assets and liabilities in the United Kingdom In the United Kingdom, net liabilities arising from defined-benefit pension plans reflect the net value of benefit obligations and the plan assets covering them. These assets and liabilities changed as follows:

31/12/2017

31/12/2016

(in millions of euros)

Present value of the obligation at the beginning of the period

1,758.5

1,607.1

Changes in scope

-

-

Translation adjustments

-61.4

-246.5

Current service cost

5.0

4.2

Past service cost

-

-0.8 54.9

Interest

45.3

Employee contributions

-

-

Effect of obligation remeasurements p of which experience adjustments

30.9

393.1 -16.1

8.5

p of which impact of changes in demographic assumptions p of which impact of changes in financial assumptions

-3.5 25.9

-1.1

410.4

Plan amendments

- -

- -

Transfers

Benefits provided

-92.6

-53.6

PRESENT VALUE OF THE OBLIGATION AT THE END OF THE PERIOD

1,685.7 1,463.2

1,758.4 1,455.2

Fair value of plan assets at the beginning of the period

Changes in scope

-

-

Translation adjustments

-52.1 37.9 101.8 108.4

-217.4

Interest

50.1

Effects of plan asset remeasurements

204.6 212.2

p of which return on plan assets (excluding amounts included in interest income)

p of which impact of changes in financial assumptions

-6.6 25.8

-7.6 24.3

Employer contributions Employee contributions

- -

- -

Transfers

Benefits provided

-92.6

-53.6

FAIR VALUE OF PLAN ASSETS AT THE END OF THE PERIOD

1,484.1

1,463.2

The reduction in net liabilities is mainly due to the improvement in the return on plan assets, the reduction of obligations in local currency and the drop in the pound-to-euro exchange rate. UK pension fund assets fall into four investment categories:

31/12/2017

31/12/2016

(in millions of euros)

Shares Bonds

459.0 717.4 241.3

482.9 689.2 226.8

Infrastructure and property assets

Other assets

66.4

64.4

TOTAL

1,484.1

1,463.2

At 31 December 2017, other assets comprised financial liabilities of €72.3 million from hedging instruments and related cash and cash equivalents amounting to €138.7 million. The discount rate used for employee obligations is based on the return on AA bonds in line with the life of the liabilities rounded to the nearest hundredth. In the United Kingdom, the benchmark used is the Mercer yield curve.

A 0.25-point decrease in the discount rate would increase the benefit obligation by €85.8 million. A 10% reduction in the value of the assets would reduce their amount by €148.4 million. These sensitivity estimates are determined all other things being equal. At 31 December 2017, one plan was in a net asset position, totalling €4.2 million. This asset is deemed recoverable through a future decrease in contributions.

149

SOPRA STERIA REGISTRATION DOCUMENT 2017