SOPRA_STERIA_REGISTRATION_DOCUMENT_2017

PARENT COMPANY FINANCIAL STATEMENTS Notes to the balance sheet

It should be noted that provisions recognised on a prudent basis in no way prejudice the future outcome of current disputes.

p employee-related costs (restructuring costs, post-employment benefits covering pension obligations, supplementary pensions and similar benefits, performance-based free share plan); p costs related to business premises (unoccupied premises, renovations); p financial risks such as the risk of foreign exchange losses; p risks of tax adjustments linked to tax audits.

2.14. Consolidated financial statements The Company prepares consolidated financial statements. The Group consists of Sopra Steria Group (the parent company) and its subsidiaries as well as the Group’s share in associates.

3. Notes to the balance sheet

3.1. Non-current assets

3.1.1. INTANGIBLE ASSETS

Research and development costs

Concessions, patents and similar rights

Goodwill

Total

(in thousands of euros)

GROSS VALUE At 1 January 2017

3,525

44,047

145,572

193,144

Acquisitions

- - -

1,012

206

1,218

Disposals

- -

- -

- -

Inter-account transfers At 31 December 2017

3,525

45,059

145,778

194,362

AMORTISATION At 1 January 2017

3,525

30,292

54,241

88,058

Charges Reversals

- -

4,547

- -

4,547

-

-

At 31 December 2017

3,525

34,839

54,241

92,605

NET VALUE At 1 January 2017

- -

13,755 10,220

91,331 91,537

105,086 101,757

At 31 December 2017

Intangible assets comprise: p research and development costs; p software acquired or contributed; p goodwill acquired or contributed during mergers.

Research and development costs for software and solutions, which totalled €11.843 million in 2017, are recognised as expenses. Software acquisitions mainly relate to workstation software as well as development and industrialisation tools.

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SOPRA STERIA REGISTRATION DOCUMENT 2017