SOPRA_STERIA_REGISTRATION_DOCUMENT_2017

INTRODUCTION TO SOPRA STERIA 2017 key figures and consolidated financial statements

❙ BREAKDOWN OF REVENUE BY REPORTING UNIT

2017

2016

(as %)

France

42% 21% 21% 10%

41% 25% 19%

United Kingdom

Other Europe

Sopra Banking Software

9% 6%

Other Solutions

6%

TOTAL

100%

100%

❙ REVENUE BY VERTICAL MARKET

2017

2016

(as %)

Banking Insurance

23%

22%

6%

5%

Public Sector

22% 18%

23% 19%

Aerospace, Defence, Homeland Security

Energy, Utilities

7% 5% 6% 3%

8% 6% 6% 2%

Telecoms, Media, Games

Transport

Retail Other

10%

10%

TOTAL

100%

100%

5.2 Review of the Group’s position and results in 2017

p as an annual average over the past three years, organic growth was 3.6%; p the underperforming segments identified in 2014 (Germany and IT infrastructure management in France) were successfully turned around and today offer advantages for the future; p a specific repositioning plan has been launched for the United Kingdom; p consulting and Software are making stronger contributions to Group revenue; p Sopra Banking Software has initiated its shift to a software vendor model and its product offerings have been redefined; p the Group’s transformation is underway: alignment of business models by geographies, rollout of digital conceptualised as a continuum, changes in human resource management.

5.2.1. GENERAL CONTEXT AND KEY EVENTS IN 2017 Sopra Steria generated 2017 revenue of €3,845.4 million, reflecting buoyant organic growth of 3.5%. Changes in scope had a positive impact of €38.9 million, while currency fluctuations had a negative impact of €64.3 million. Total revenue growth for the Group was 2.8% year on year. The Group’s operating profit on business activity grew by 9.5% relative to 2016, to €329.8 million, a margin of 8.6% (compared to 8.0% in 2016). 2017 marked the successful completion of the first phase in the construction of the post-merger model for Sopra Steria Group: p the three-year targets set in March 2015, namely revenue of between €3.8 and €4.0 billion and an operating margin on business activity of between 8.0% and 9.0%, have been met;

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SOPRA STERIA REGISTRATION DOCUMENT 2017