SOPRA_STERIA_REGISTRATION_DOCUMENT_2017

PARENT COMPANY FINANCIAL STATEMENTS Notes to the balance sheet

Translation adjustments – Asset amounted to €10.332 million at end- December 2017, compared with €7.173 million at end-2016. This change relates mainly to the depreciation of the British pound (down 3.6%), which had a negative impact on receivables denominated in sterling, in particular the £80 million loan granted to UK subsidiaries.

Debt issuance expenses consist of costs to negotiate and arrange the bond issue carried out on 12 April 2013 for an initial amount of €1.672 million. These costs are amortised over the term of the debt in proportion to the interest accrued.

3.2.4. IMPAIRMENT OF CURRENT ASSETS

At 1 January 2017

Charges

Reversals

At 31 December 2017

(in thousands of euros)

Impairment of trade receivables Impairment of current accounts

535

7

13

529

48

-

-

48

TOTAL

583

7

13

577

3.3. Equity

3.3.1. STATEMENT OF CHANGES IN EQUITY

Issue, merger and contribution premiums

Net profit for the year

Legal reserve

Discretionary reserves

Retained earnings

Capital

Total

(in thousands of euros)

At 1 January 2017

20,532

531,381 2,045

160,603

208 142,022 856,791 -178 -142,022 -45,140

Appropriation of 2016 earnings and dividends

-

-

9

97,051

Exercise of share subscription options Free share awards to employees

5

211

- - - -

-

- - -

- - -

216

11

-

-11

-

- -

-115

- -

-115

Merger surplus (1) Profit for the year

-

- 141,770 141,770 30 141,770 953,522

AT 31 DECEMBER 2017

20,548 531,477 2,054

257,643

(1) Adjustment to the earnout payment for the acquisition of Active3D.

The amount of dividends paid in 2017, in respect of 2016 profit, was €2.20 per share, for a total amount of €45.139 million.

3.3.2. SHARE CAPITAL At 31 December 2017, Sopra Steria Group had a share capital of €20,547,701, compared with €20,531,795 at 31 December 2016. It is represented by 20,547,701 fully paid-up shares with a par value of €1 each. Movements during the 2017 financial year were as follows: p delivery of 10,906 free shares under the free share award plans; p exercise of share subscription options during the year: 5,000 shares were created, corresponding to a capital increase of €5 thousand and an issue premium of €211 thousand. In accordance with the decision made at the Combined General Meeting of 27 June 2014 pursuant to Article L. 225-123 of the French Commercial Code arising from the Act of 29 March 2014, dual voting rights were introduced on 7 July 2014 for all fully paid-up shares held in registered form in the same shareholder’s name for at least two years.

At 31 December 2017, the total number of voting rights that could be exercised at Ordinary and Extraordinary General Meetings was 26,677,398, while the total number of theoretical voting rights at that date was 26,690,112. Sopra Steria Group held a total of 12,714 treasury shares at 31 December 2017. At the balance sheet date, reserves not available for distribution amounted to €1.594 million. 3.3.3. EXERCISE OF SHARE SUBSCRIPTION OPTIONS No share subscription option plans remained in force at 31 December 2017. During the year, the last option to subscribe for 5,000 shares was exercised. The impact on equity is described in Note 3.3.2.

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SOPRA STERIA REGISTRATION DOCUMENT 2017