Sopra Steria - 2018 Registration document

2018 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

p BLUECARAT – On 3 May 2018, Sopra Steria, via its subsidiary Sopra Steria Consulting SE, acquired German IT services firm BLUECARAT, specialising in strategic IT consulting, Agile projects, cybersecurity, IT Security and API management for leading manufacturers, financial services companies and public-sector entities in Germany. The Group valued the assets acquired and liabilities assumed from this company at €2.3 million, giving rise to the recognition of €11.6 million in goodwill. The final purchase price allocation period runs until 2 May 2019. This acquisition falls within the “Germany” cash-generating unit (part of “Other Europe”). Business combinations The Group applies IFRS 3 Business Combinations to the identified assets acquired and liabilities assumed as a result of business combinations. The acquisition of an asset or a group of assets that does not constitute a business is recognised under the standards applicable to those assets. The Group recognises all business combinations by applying the acquisition method, which consists in: p the measurement and recognition at fair value of the identifiable assets acquired and liabilities assumed. The Group identifies and allocates these items on the basis of contract provisions, economic conditions, and its accounting and management policies and procedures; p the measurement of any non-controlling interest in the acquiree either at its fair value or based on its share of the fair value of the identifiable assets acquired and liabilities assumed; p the measurement and recognition at the acquisition date of the difference (referred to as goodwill) between: • the purchase price of the acquiree plus the amount of any non-controlling interests in the acquiree, and • the net amount of the identifiable assets acquired and liabilities assumed.

p O.R. System – On 4 April 2018, Sopra Steria, via its subsidiary Sopra Banking Software SA, acquired French software development firm O.R. System, specialising in financial analysis for credit institutions. The Group valued the net liabilities assumed from this company at €0.6 million and recognised provisional goodwill in the amount of €2.3 million. The final purchase price allocation period runs until 3 April 2019. O.R. System is part of the Sopra Banking Software cash-generating unit. p Other – The assets acquired and liabilities assumed from Kentor and 2MoRO, acquired in 2017, did not give rise to any adjustments. The decision of how to measure non-controlling interests is made on an acquisition-by-acquisition basis and leads to the recognition of either full goodwill (should the fair value method be used) or partial goodwill (should a share of the fair value of the identifiable assets acquired and liabilities assumed be used). The acquisition date is the date on which the Group effectively obtains control of the acquiree. The purchase price of the acquiree is the fair value, at the acquisition date, of the elements of consideration transferred to the seller in exchange for control of the acquiree, to the exclusion of any consideration for a transaction separate from the business combination. If the initial accounting for a business combination can only be determined provisionally for the reporting period in which the combination takes place, the acquirer recognises the combination using provisional amounts. The acquirer must then recognise adjustments to those provisional amounts as the accounting for the business combination is completed within 12 months of the acquisition date.

2.2. Other changes in scope

No other material changes in scope took place in 2018. In 2017, the Group sold its 40% stake in Diamis, which had been accounted for under the equity method, generating capital gains of €3.7 million, recorded under Other operating income and expenses (see Note 4.2.3).

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SOPRA STERIA REGISTRATION DOCUMENT 2018