SOPRA_STERIA_REGISTRATION_DOCUMENT_2017

2017 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Changes in Intangible assets are set out in the table below:

Gross value Amortisation Carrying amount

(in millions of euros)

31 December 2015

407.9

194.0

214.0

Changes in scope

0.3

-0.3

0.6

Allocated intangible assets

32.4

- -

32.4

Acquisitions

6.4

6.4

Disposals – scrapping Translation adjustments Amortisation charge 31 December 2016

-11.3 -29.7

-11.1 -12.6 36.6 206.6

-0.2

-17.0 -36.6 199.6 12.1 16.9 -0.1 -1.5 -4.1 -32.7 190.2 -

-

406.1

Changes in scope

1.7

1.7

Allocated intangible assets

12.1 16.9 -1.2 -2.6 -7.5

- -

Acquisitions

Disposals – scrapping Other movements Translation adjustments Amortisation charge 31 DECEMBER 2017

-1.1 -1.1 -3.5 32.7

-

425.5

235.3

Allocated intangible assets recognised in respect of new acquisitions during the 2017 financial year are described in Note 2.1. They consist of client relationships valued at €12.1 million recognised among the acquired assets of Kentor in Sweden. In 2017, Sopra Banking Software acquired source code for €8.0 million and incurred costs arising from adjustments to its solution platforms. These costs were capitalised and amounted to €2.4 million. They were all recognised as part of the costs for acquiring the software. No other significant development expenditures for software and solutions (Banking, Human Resources and Property Management) have been recognised under intangible assets. a. Assets acquired separately These are software assets recorded at cost. They are amortised using the straight-line method over one to ten years, depending on their estimated useful lives. These are software assets, client relationships, brands and distributor relationships measured at fair value as part of a purchase price allocation for entities acquired in business combinations. They are amortised using the straight-line method over three to fifteen years, depending on their estimated useful lives. Acquired brands whose useful lives cannot be estimated are not amortised. c. Internally generated assets Pursuant to IAS 38 Intangible Assets : p research and development costs are expensed in the year in which they are incurred; b. Assets acquired in connection with business combinations

In 2016, on the acquisition of Cassiopae, the Group had recognised €29.3 million of allocated intangible assets, of which €9.7 million was attributable to acquired enterprise software, €3.6 million to the Cassiopae brand and €16.0 million to client relationships. Other acquisitions in 2016 had resulted in the recognition of an enterprise software product for €3.0 million.

p software development costs are capitalised if all of the following can be demonstrated: • the technical feasibility of completing the intangible asset for use or sale, • the intent to complete the intangible asset and use or sell it, • the ability to use or sell the intangible asset, • generation of probable future economic benefits, • the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset, • the ability to reliably measure the expenditure attributable to the intangible asset during its development.

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SOPRA STERIA REGISTRATION DOCUMENT 2017

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