SOPRA_STERIA_REGISTRATION_DOCUMENT_2017

INTRODUCTION TO SOPRA STERIA 2017 key figures and consolidated financial statements

Revenue Revenue increased from €3,741.3 million in 2016 to €3,845.4 million in 2017, equating to total growth of 2.8%. That represents a rise of €104.1 million, which breaks down as follows: p a negative currency effect of €64.3 million, mainly due to sterling; p an effect of changes in the scope of consolidation of €38.9 million; p organic growth was €129.6 million or 3.5%. Expenses included in Operating profit on business activity The ratio of staff costs to revenue increased by 0.3 points (60.6% in 2017 compared with 60.3% in 2016). The rate of consultant downtime (number of days between contracts excluding training, sickness, leave and pre-sales as a percentage of total number of workable days) was 3.9% over 12 months in 2017 (unchanged compared to 2016). Other operating expenses remained stable at 30.4% of revenue, with operating costs again broadly under control across all departments and countries. Depreciation, amortisation and provisions decreased by €28.3 million to €15.8 million in 2017 compared with €44.1 million in 2016. Reversals of provisions cover operating expenses up to the amount of €42.7 million. Over two-thirds of these reversals have been used. Operating profit on business activity 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). Profit from recurring operations Profit from recurring operations came to €286.8 million. That includes a €21.2 million expense related to share-based payments (€12.1 million in 2016) as a result of the extension during 2017 of the We Share

employee share ownership plan and of the long-term incentive plan for the Group’s main managers. Operating profit Operating profit was €261.7 million after €25.1 million in other net operating expense (compared to net expense of €27.6 million in 2016), which includes €23.0 million in reorganisation and restructuring expenses. Financial items The cost of net financial debt remained stable at €6.8 million compared with €6.7 million in 2016. Tax expense Tax expense came to €73.5 million, versus €80.9 million in 2016, representing a Group-wide tax rate of 30.0%. Share of net profit from equity-accounted companies Income from equity-accounted associates totalled €1.7 million compared with €10.8 million in 2016. The consolidation of Axway under the equity method represented €10.4 million in 2016 compared with €1.4 million in 2017. Net profit The net profit attributable to the Group was €171.4 million after deducting €1.8 million in respect of minority interests, representing an increase of 14.0% (€150.4 million in 2016). Earnings per share Basic earnings per share came to €8.48 (compared with €7.50 the previous year), representing an increase of 13.0%.

❙ BALANCE SHEET AND FINANCIAL STRUCTURE

Assets (in millions of euros)

31/12/2017

31/12/2016

Goodwill

1,590.6

1,557.0

Intangible assets

190.2 128.9 189.1

199.6 120.7 202.3

Property, plant and equipment Equity-accounted investments Other non-current financial assets

28.6

22.8

Retirement benefits and similar obligations

4.3

4.1

Deferred tax assets Non-current assets

115.4

144.8

2,247.1 1,137.8

2,251.3 1,132.7

Trade accounts receivable Other current receivables Cash and cash equivalents

256.4 162.4

231.1 265.4

Current assets Assets held for sale TOTAL ASSETS

1,556.6

1,629.3

-

4.4

3,803.8

3,884.9

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SOPRA STERIA REGISTRATION DOCUMENT 2017