SOPRA_STERIA_REGISTRATION_DOCUMENT_2017

2017 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

These lines of credit break down as shown below:

Amount authorised at 31/12/2017

Drawdown at 31/12/2017

Interest rate at 31/12/2017

Drawdown rate

Repayment terms

in €m in £m in €m in £m

AVAILABLE LINES OF CREDIT

Repayable on maturity in 2019

100%

2.60%

Bond

180.0

-

180.0

-

Syndicated loan

Amortising until maturity in 2022 Amortising until maturity in 2022 Amortising until maturity in 2021

100%

1.00%

Tranche A

144.0

-

144.0

-

100%

1.52%

Tranche B

-

57.6

57.6

0%

Multi-currency revolving credit facility

900.0

-

-

-

Finance leases

13.2

-

13.2

-

100%

0.47%

2018 and 2019

Other

49.6

- -

49.6

- -

100%

0.40% 0.58%

Overdraft

164.0

5.9

N/A

4%

Total lines of credit authorised per currency 1,450.8

57.6 392.7 57.6

TOTAL LINES OF CREDIT AUTHORISED (EURO EQUIVALENT) OTHER TYPES OF FINANCING USED NEU CP (commercial paper)

1515.7

457.7

30%

1.57%

N/A

N/A 210.6

- -

N/A N/A

2018

-0.01%

Other

4.3

N/A

Total financing per currency

607.6 57.6

TOTAL FINANCING (EURO EQUIVALENT)

672.5

1.07%

Interest rates payable on the syndicated loan equal the interbank rate of the currency concerned at the time of drawdown (minimum 0%), plus a margin set for a period of six months based on the leverage ratio. The coupon payable on the bonds issued on 12 April 2013 has a fixed nominal rate of 4.25% and an effective rate of 2.60%, recognised at fair value upon consolidation. The syndicated loan and bond issue are subject to terms and conditions, which include financial covenants. There are two financial ratios calculated every six months using the consolidated financial statements on a 12-month rolling basis: p the leverage ratio, equal to net financial debt/pro forma EBITDA;

p the interest coverage ratio, equal to pro forma EBITDA/cost of net financial debt. The leverage ratio must not exceed 3.0 at any reporting date. The interest coverage ratio must not fall below 5.0. Net financial debt is defined on a consolidated basis as all loans and related borrowings (excluding intercompany liabilities), less available cash and cash equivalents. Pro forma EBITDA is calculated by adding back the non-cash expenses of depreciation, amortisation and provisions to the consolidated operating profit on business activity (see Note 1.4.1). It is calculated on a 12-month rolling basis and is therefore restated so as to be presented in the financial statements on a like-for-like basis over 12 months.

At 31 December 2017, the net financial debt/pro forma EBITDA ratio covenant was met, with the ratio coming in at 1.44 compared with a covenant of 3.0. It is calculated as follows:

31/12/2017

31/12/2016

(in millions of euros)

Short-term borrowings (< 1 year) Long-term borrowings (> 1 year)

273.6 398.9 -162.4

368.7 402.7 -265.4

Cash and cash equivalents Other financial guarantees

-

-

Net financial debt (including financial guarantees)

510.1 354.1

506.0 344.8

Pro forma EBITDA

Net financial debt/pro forma EBITDA ratio

1.44

1.47

For the interest coverage ratio, pro forma EBITDA is as defined above and the cost of net financial debt is also calculated on a rolling 12-month basis.

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SOPRA STERIA REGISTRATION DOCUMENT 2017