SOPRA_STERIA_REGISTRATION_DOCUMENT_2017

PARENT COMPANY FINANCIAL STATEMENTS Notes to the balance sheet

a. Breakdown of changes in the gross amounts recognised for equity interests and related receivables: Increases:

Securities concerned (in thousands of euros)

Transaction

Amount

Sopra Steria AB (Sweden) Sopra Steria A/S (Denmark)

Recapitalisation Recapitalisation Purchase of shares Purchase of shares Purchase of shares Purchase of shares

20,239

2,690

Tecfit

46,708 12,921 16,266

Cassiopae RE Paris

Cassiopae ITI

La FoncièreNumérique La FoncièreNumérique

80

Loan

3,420 6,467

CS Communication & Systèmes CS Communication & Systèmes

Purchase of shares via conversion of convertible bonds Capitalised interest on bonds until the conversion date

199

TOTAL

108,990

In June 2017, the Company converted its CS Communication & Systèmes bonds into shares. This conversion generated a capital gain for accounting purposes of €6.467 million. The value used for the original cost of CS Communication & Systèmes shares is the market price of the share on the conversion date, 30 June 2017. Decreases:

Securities concerned (in thousands of euros)

Transaction

Amount

Diamis

Disposal of shares Disposal of shares

1,295

Intest SA

59

CS Communication & Systèmes

Reimbursement of capitalised interest on bonds

984

TOTAL

2,338

b. Impairment of equity interests In accordance with CRC Regulation 2002-10, issued by the Comité de la Réglementation Comptable (the French accounting regulation committee), on the depreciation, amortisation and impairment of fixed assets, the following changes in impairment charges were recognised in financial year 2017:

At 1 January 2017

Charges

Reversals

At 31 December 2017

(in thousands of euros)

Steria Medshore (Morocco) Sopra Steria AB (Sweden) Sopra Steria A/S (Denmark) CS Communication & Systèmes

982

24

-

1,006

13,434

- -

13,434

-

3,135

- - -

3,135 1,717

-

1,717

Other

2

-

2

TOTAL

17,551

1,741

13,434

5,860

During the year, this item reflected the impact of the increase of £20.000 million in the outstanding balance of loans to UK subsidiaries and of the We Share 2017 plan, for which the following movements were recorded: p repurchase of 116,529 treasury shares on the market, for a total value of €14.716 million; p sale of 107,547 shares subscribed for by employees, for a total value of €11.065 million; p employer matching contribution represented by 107,547 free shares, for a total value of €11.065 million.

In Sweden, Sopra Steria AB’s prospects for generating profits improved due to its acquisition of Kentor, thus warranting the complete reversal of the related provision for impairment of equity interests. The impairment of the investment in CS Communication & Systèmes arises from the difference between the share price at the acquisition date and at the balance sheet date. c. Loans and other financial investments At the balance sheet date, this item comprises primarily: p loans to UK subsidiaries in the amount of £80 million; p liquidity agreement (shares and cash) in the amount of €3.363 million; p treasury shares in the amount of €1.595 million; p financial assets merger loss in the amount of €481.747 million.

205

SOPRA STERIA REGISTRATION DOCUMENT 2017