In the United Kingdom, 2017 revenue was €801.7 million, representing negative organic growth of 7.7%. Exchange rate fluctuations had a negative impact of €59.7 million. Overall, the region posted negative revenue growth of 13.6%. Part of this performance was due to the anticipated transition phase experienced by the SSCL joint venture, which is expected to continue into the first half of 2018. In addition, client decision-making cycles saw a lengthening trend overall in the second half of 2017, in an environment marked by a more wait-and-see attitude. Against this backdrop, the operating margin on business activity contracted to 6.6% in 2017 (8.0% in 2016). This contraction is explained by lower volumes as well as the one-year migration postponement (until 5 February 2018) for an SSCL client. A plan was launched in 2017 to turn around the performance of this region. Its aims are to refocus the model on services with higher added value that also take greater advantage of digital opportunities and to expand the portfolio of private sector clients. The plan includes investments in the Consulting business and in sales teams. In 2018, it will be accompanied by a cost-cutting plan aimed at generating savings of about €20 million on a full-year basis. Revenue for the Other Europe reporting unit rose sharply to €827.6 million, equating to organic growth of 12.0%. All of the region’s countries recorded robust growth. Germany, Scandinavia, the Benelux countries and Italy had growth rates higher than 10%. This performance was coupled with a substantial improvement in the reporting unit’s operating margin on business activity to 8.1% (up 2.4 percentage points on the prior year), driven in large part by Germany which has completed a successful turnaround, illustrated by its margin of over 9%.

Sopra Banking Software generated revenue of €402.2 million, equating to organic growth of 11.2%, thanks to a strong increase in licence sales (up 19%) and robust growth in services. The Platform, Amplitude and Cassiopae solutions all contributed to this growth, with 33 new contracts signed and more than 50 go-live decisions in the year. In particular, 2017 demonstrated the strong appeal among Tier 1 banks of the approach used by the Platform solution: the launch of the Loan component for La Banque Postale, the sale of the Lending Suite for Crédit Agricole’s corporate banking division and the cross-selling of components, particularly those dealing with regulatory aspects, across different assets. As regards profitability, Sopra Banking Software’s operating margin on business activity increased by 0.6 percentage points, from 9.1% in 2016 to 9.7% in 2017. Other Solutions (Human Resource Solutions and Property Management Solutions) posted revenue of €216.9 million, with organic growth reaching 4.7% thanks to a very strong fourth quarter for both HR and Property Management solutions. It is worth noting that Sopra HR Software is managing more than 700,000 payslips each month as of year-end 2017, having added 120,000 payslips over the year. Major product advances in terms of digitisation have been achieved for Property Management Solutions (multi-channel collaborative platform, mobile applications, digital technologies such as building information modelling (BIM), etc.). The reporting unit posted operating profit of 15.2% of revenue, thus 1.0 percentage point higher than in 2016.


Financial year 2017

Financial year 2016

(in millions of euros)

Revenue Staff costs

3,845.3 -2,330.7 -1,144.1

3,741.3 -2,257.3 -1,118.0

External expenses and purchases

Taxes and duties

-37.4 -15.8 12.5 329.8 8.6% -21.2 -21.8 286.8 7.5% -25.1 261.7 6.8%

-37.2 -44.1 16.5 301.1 8.0% -12.1 -21.1 267.8 7.2% -27.6 240.2 6.4%

Depreciation, amortisation, provisions and impairment Other current operating income and expenses

Operating profit on business activity

as % of revenue

Expenses related to stock options and related items

Amortisation of allocated intangible assets Profit from recurring operations

as % of revenue

Other operating income and expenses

Operating profit as % of revenue

Cost of net financial debt

-6.8 -9.8

-6.7 -7.6

Other financial income and expenses

Tax expense


-80.9 10.8 155.8

Net profit from associates


Net profit from continuing operations Net profit from discontinued operations




Consolidated net profit

173.3 4.5%

155.8 4.2%

as % of revenue

Non-controlling interests






as % of revenue



EARNINGS PER SHARE (IN EUROS) Basic earnings per share

8.48 8.45

7.50 7.49

Diluted earnings per share



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