Sopra Steria - 2018 Registration document

2018 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

b. Change in pension assets and liabilities in the United Kingdom In the United Kingdom, net liabilities arising from post-employment defined-benefit plans reflect the net value of benefit obligations and the plan assets covering them. These assets and liabilities changed as follows:

31/12/2018

31/12/2017

(in millions of euros)

Present value of the obligation at the beginning of the period

1,685.7

1,758.5

Changes in scope

-

-

Translation adjustments

-12.3

-61.4

Current service cost

4.5

5.0

Past service cost

-

-

Interest

42.0

45.3

Employee contributions

-

-

Effect of obligation remeasurements

-93.3 11.6

30.9

p Experience adjustments

8.5

p Impact of changes in demographic assumptions p Impact of changes in financial assumptions

-9.8

-3.5 25.9

-95.1

Plan amendments

- -

- -

Transfers

Benefits provided

-82.5

-92.6

PRESENT VALUE OF THE OBLIGATION AT THE END OF THE PERIOD

1,544.1 1,484.1

1,685.7 1,463.2

Fair value of plan assets at the beginning of the period

Changes in scope

-

-

Translation adjustments

-11.3 37.2 -58.5 -58.5

-52.1 37.9 101.8 108.4

Interest

Effects of plan asset remeasurements

p Return on plan assets (excluding amounts included in interest income)

p Impact of changes in financial assumptions

-

-6.6 25.8

Employer contributions Employee contributions

27.7

- -

- -

Transfers

Benefits provided

-82.5

-92.6

FAIR VALUE OF PLAN ASSETS AT THE END OF THE PERIOD

1,396.6

1,484.1

The decrease in net liabilities mainly resulted from the contributions paid to reduce the deficit and the favourable change in the discount rate. UK pension fund assets fall into four investment categories:

31/12/2018

31/12/2017

(in millions of euros)

Shares

368.9 673.6 246.5 107.6

459.0 717.4 241.3

Bonds/Private placements

Infrastructure and property assets

Other

66.4

TOTAL

1,396.6

1,484.1

Other assets mainly comprised cash and cash equivalents (€121.9 million at 31 December 2018) and hedging instruments (-€14.3 million as of 31 December 2018). The discount rate used for employee obligations is based on the return on AA bonds in line with the life of the liabilities rounded to the nearest hundredth. In the United Kingdom, the benchmark used is the Mercer yield curve.

A 0.25-point decrease in the discount rate would increase the benefit obligation by €76.9 million. A 0.25-point increase in the discount rate would reduce the benefit obligation by €72.0 million. A 10% reduction in the value of the assets would reduce their amount by €139.7 million, whereas a 10% increase would increase their amount by €139.7 million. These sensitivity estimates are determined all other things being equal.

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SOPRA STERIA REGISTRATION DOCUMENT 2018