SOPRA_STERIA_REGISTRATION_DOCUMENT_2017

INTRODUCTION TO SOPRA STERIA 2017 parent company financial statements of Sopra Steria Group SA

6. 2017 parent company financial statements of Sopra Steria Group SA

Sopra Steria Group SA comprises all of the Group’s French consulting, systems integration and property solutions development activities, as well as all of its central services (Executive Management, operational support functions and functional structures). It has systems integration and solutions subsidiaries in Europe, software development subsidiaries for banking (Sopra Banking Software) and human resources

management (Sopra HR Software), infrastructure subsidiary Sopra Steria Infrastructure & Security Services, and a 32.59% stake in global software vendor Axway Software, the market leader in data flow governance. The accounts are presented in detail in Chapter 5 of this Registration Document (pages 197 to 225).

6.1. Income statement

2017

2016

(in thousands of euros)

Net revenue

1,456,888

1,393,280

Other operating income Operating income Purchases consumed

46,785

38,506

1,503,673

1,431,786

472,440 875,136

443,390 839,900

Staff costs

Other operating expenses

684

797

Taxes and duties

37,544 29,889

37,311 21,037

Depreciation, amortisation, provisions and impairment

Operating expenses

1,415,693 87,980 46,876 134,856 -16,552 16,314 141,770 7,152

1,342,435

Operating profit

89,351 38,862 128,213

Financial income and expenses

Pre-tax profit on ordinary activities Exceptional income and expenses Employee profit sharing and incentives

19,743 -9,302

Corporate income tax

3,368

NET PROFIT

142,022

Revenue totalled €1,456.9 million in 2017, compared with €1,393.3 million in 2016. Operating profit came in at €88.0 million in 2017, compared with an operating loss of €89.4 million in 2016. Financial income and expenses amounted to income of €46.9 million in 2017, compared with €38.9 million in 2016. Pre-tax profit on ordinary activities totalled €134.9 million in 2017, compared with €128.2 million in 2016. Exceptional income and expenses showed income of €7.2 million in 2017, compared with €19.7 million in 2016.

Employee profit-sharing and incentive expenses went up from €9.3 million in 2016 to €16.6 million in 2017, while income tax expense rose from €3.4 million in 2016 to €16.3 million in 2017. Net profit went from €142.0 million in 2016 to €141.8 million in 2017. Research and development on Solutions represented an investment of €11.8 million, mainly in the area of property management. These costs are fully expensed. In accordance with Article 39-4 of the French General Tax Code, the accounts for the financial year ended include an expense of €445,035 in respect of non-tax-deductible expenditures.

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SOPRA STERIA REGISTRATION DOCUMENT 2017