SOPRA_STERIA_REGISTRATION_DOCUMENT_2017

2017 CONSOLIDATED FINANCIAL STATEMENTS Statutory Auditors’ report on the consolidated financial statements

Statutory Auditors’ report on the consolidated financial statements

3.1 REVENUE RECOGNITION ON FIXED-PRICE CONTRACTS (Note 4.1 to the consolidated financial statements) 3.1.1 Risk identified

To the General Meeting of Sopra Steria Group,

1. Opinion In accordance with our appointment as Statutory Auditors by the shareholders at your General Meetings, we have audited the attached consolidated financial statements of Sopra Steria Group for the financial year ended 31 December 2017. We certify that the consolidated financial statements are, with respect to IFRS as adopted in the European Union, true and fair and provide an accurate view of the results of your Company’s operations for the year under review and of the financial position and assets and liabilities, at the end of the year, of the group formed by the persons and entities included in the consolidation. The above opinion is in keeping with the contents of our report to the Audit Committee. 2.1 AUDIT FRAME OF REFERENCE We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. The responsibilities incumbent on us under these standards are set out in the section of this report entitled “Responsibilities of the Statutory Auditors relating to the audit of the consolidated financial statements”. 2.2 INDEPENDENCE We performed our audit in accordance with the independence rules applicable to us for the period from 1 January 2017 to the date our report was issued, and in particular we have not provided any services prohibited by Article 5, paragraph 1 of Regulation (EU) No. 537/2014 or by the French Code of Ethics for Statutory Auditors. 3. Justification of our assessments – Key audit matters In accordance with the requirements of Article L. 823-9 and R.823-7 of the French Commercial Code relating to the justification of our assessments, we bring to your attention the key audit matters relating to the risks of material misstatement which, according to our professional judgment, were most significant for the audit of the consolidated financial statements for the year, as well as our responses to these risks. These assessments were made as part of our audit of the consolidated financial statements taken as a whole and the formation of our opinion as expressed above. We do not express an opinion on elements of the consolidated financial statements taken in isolation. 2. Basis of our opinion

Sopra Steria Group, a European leader in digital transformation, offers high tech solutions comprising consulting and systems integration, development of industry- and technology-specific solutions, IT infrastructure management, cybersecurity and business process services (BPS). The Group’s revenue to 31 December 2017 totalled €3.8 billion, a significant portion of which related to fixed-price contracts. Fixed-price contracts are characterised by commitments relating to the price, the end result and the deadline. As stated in Note 4.1 to the consolidated financial statements, “Services covered by fixed-price contracts”, services corresponding to contracts of this kind are recognised using the percentage-of-completion method. This method requires an estimate by management of figures on completion and the level of completion of the contract, it being specified that the amount of revenue recognised at each balance sheet date is based on the difference between the contract value and the amount required to cover the total number of man-days remaining to be performed. We considered the recognition of income on fixed-price contacts as a key audit matter due to its significance in the Group’s financial statements and the level of judgment and estimation required by management to determine the revenue and income on completion from these contracts. 3.1.2 Our response We familiarised ourselves with the internal control procedures implemented by the Group and tested the key controls relating to determining income from fixed-price contracts. For a sample of contracts deemed material due to their financial impact and risk profile: p we reconciled contractual data, including any contractual changes resulting from additional requests and contractual claims, with management and accounting data; p we talked to management and project managers in order to assess the reasonable nature of the estimates made by management and corroborate the estimated amount allocated to cover the total number of man-days remaining to be performed, particularly in comparison with prior estimates and by reviewing correspondence with the client and assessing whether this has been translated correctly into the accounts. In performing this work we drew on experience acquired in previous years relating to similar contracts; p for contracts subject to claims, we talked to the Group’s legal department and reviewed correspondence with the client in order to assess the estimates made by management. We also used substantive checks on a sample of trade accounts receivable and accrued income in order to assess management’s estimates relating to the prospect of recovering these receivables.

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SOPRA STERIA REGISTRATION DOCUMENT 2017