Sopra Steria - 2018 Registration document

2018 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

In 2018, the Group continued to work on restructuring and reorganising its activities. Costs arising from resource adjustments mainly concerned the United Kingdom, for €13.4 million (€4.5 million in 2017); costs were also incurred in France, for €4.7 million (€5.7 million in 2017), of which €3.7 million (€5.3 million in 2017) related to its IT Infrastructure Management activities; and Germany (Other Europe) for €4.3 million (€4.3 million in 2017). The solutions businesses were also concerned, with €2.7 million of these expenses for Sopra Banking Software (€2.7 million in 2017) and €1.6 million for Sopra HR Software (€2.3 million in 2017). Costs arising from business reorganisations essentially comprised expenses relating to the reorganisation of premises as a result of

business combinations, in particular premises remaining vacant. In 2017, they also included income of €1.1 million arising from the sale of buildings in India, previously recognised under Non-current assets classified as held for sale . Other operating expenses chiefly consisted of non-recurring impairment losses on application assets that had become obsolete in the new business organisation. In 2017, they consisted of a non- recurring provision for client risk in the United Kingdom. In 2017, other operating income consisted primarily of the capital gains realised on the sale of the stake in Diamis (see Note 2.2).

NOTE 5 EMPLOYEE BENEFITS AND SHARE-BASED PAYMENTS

5.1. Staff costs

2018

2017

(in millions of euros)

Wages and salaries

-1,841.8

-1,744.9

Social security contributions

-580.6

-548.1

Net expense for post-employment and similar benefit obligations

-19.1

-38.1

TOTAL

-2,441.5

-2,331.1

The Group recognises the amount of short-term employee benefits, as well as the contributions due in respect of its pension plans, under Staff costs . As the Group has no commitments beyond these contributions, no provisions are recognised for these plans.

The principles applicable to post-employment benefit expenses and similar items are presented in Note 5.3.2 for other long-term employee benefits and Note 5.3.1 for post-employment benefits.

5.2. Workforce

2018

2017

Workforce at period-end

France

19,013 25,101 44,114

18,649 23,012 41,661

International

TOTAL

2018

2017

Average workforce

France

17,833 23,786 41,619

18,086 22,155 40,241

International

TOTAL

127

SOPRA STERIA REGISTRATION DOCUMENT 2018