SOPRA_STERIA_REGISTRATION_DOCUMENT_2017

2017 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

At 31 December 2017, the pro forma EBITDA to cost of net financial debt covenant, requiring a ratio of at least 5.0, was met, with the ratio coming in at 52.18. It is calculated as follows:

31/12/2017

31/12/2016

(in millions of euros)

Pro forma EBITDA

354.1

344.8

Cost of net financial debt

6.8

6.7

Pro forma EBITDA/cost of net financial debt ratio

52.18

51.38

In addition to satisfying the financial ratio prerequisites described above, the Group’s two main financing agreements also contain: p certain performance requirements that are entirely customary for this type of financing; p clauses relating to events of default such as payment default, inaccurate tax returns, cross-default, bankruptcy, or the occurrence of an event having a material adverse effect; p clauses stipulating early repayment in full in the event that there is a change of control in ownership of the Company. The bank loan agreement also stipulates a number of circumstances in which the loan must be repaid in advance, in whole or in part as applicable, or renegotiated with the banks: p early repayment if all or a substantial number of the Company’s assets are sold;

p repayment using proceeds from asset disposals (beyond a specified threshold); p repayment of a sum equal to each new borrowing taken out by the Company (beyond a specified threshold); p renegotiation of the financing terms and conditions in the event of financial market disruption (i.e. market disruption clause). This clause is only applicable if a minimum number of banks are unable to obtain refinancing on the capital market as of the date on which the financing is requested, given interest rate fluctuations. The purpose of this clause is to find a replacement rate.

At 31 December 2017, the maturity schedule for the Group’s financial debt was as follows:

Total contractual flows

Less than 1 year

More than 5 years

Carrying amount

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

(in millions of euros)

Bonds

187.6 234.9 210.6

194.8 11.2 183.7

-

-

-

- - - - - - - - -

Bank borrowings

254.2 28.5 55.5 26.2 14.4 129.6

NEU CP (commercial paper)

210.6 210.6

-

-

-

- - - -

Finance lease liabilities

13.2 19.9

13.2

6.5

4.6

1.8

0.3

Other sundry financial debt Current bank overdrafts

19.9 19.9

- -

- -

- -

6.5

6.5

6.5

Financial debt

672.5 -84.2 -78.2 510.1

699.2 283.0 243.8 28.0 14.7 129.6

Investment securities

-84.2 -84.2 -78.2 -78.2

- -

- -

- -

- -

Cash

CONSOLIDATED NET FINANCIAL DEBT

536.8 120.7 243.8 28.0 14.7 129.6

-

A breakdown of the Group’s gross borrowings at 31 December 2017, by type of debt and currency, is shown below:

Currency of origin

Euro Pound sterling

Other

Total

(in millions of euros)

Bonds

187.6 153.6

-

- - - - - - - -

187.6 211.1

Bank borrowings

57.5

Short-term bank borrowings (< 1 year)

16.4 13.2

7.4

23.8 13.2

Borrowings and interest related to finance leases

- - - -

NEU CP (commercial paper) Other sundry financial debt Bank overdrafts (cash liabilities) GROSS FINANCIAL DEBT

210.6

210.6

19.9

19.9

6.5

6.5

607.6

64.9

672.5

176

SOPRA STERIA REGISTRATION DOCUMENT 2017

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