Sopra Steria - 2018 Registration document

2018 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

R&D tax credit receivables classified as Other loans and receivables are those which will be used or redeemed after more than one year. Deposits and other non-current financial assets mainly include security deposits paid for leased premises and receivables relating to equity investments.

Other non-current receivables mainly consist of advances paid by the NHS SBS entity to new customers of its platform to facilitate their migration. These deposits and other receivables are held at their nominal value, given that the effect of discounting is not material.

7.2. Trade receivables and related accounts

31/12/2018

31/12/2017

(in millions of euros)

Trade receivables – Gross value Impairment of trade receivables Trade receivables – Net value

724.0 -17.3 706.6 384.3

666.1 -11.4 654.7 492.4

Customer contract assets

TOTAL

1,091.0

1,147.1

eliminating VAT from the Trade receivables balance and subtracting the deferred income balance appearing under liabilities. An analysis of credit risk in light of the provisions of IFRS 9 Financial Instruments does not show any material impact. Customer contract assets are described in Note 4.1. Changes during the period resulted in part from the appearance of billable fees transforming assets into trade receivables, and in part from the recognition of revenue leading to the appearance of new customer contract assets. The Group endeavoured to achieve a higher level of transformation of these assets in 2018 into trade receivables and cash.

In December 2018, the Group sold trade receivables with recourse in France for €68.1 million; these were not removed from the balance sheet. In December 2017, the Group sold trade receivables in France for a total value of €56.8 million. The amount sold with recourse came to €19.8 million, and those sold without recourse came to €37.0 million. Only the receivables sold without recourse were removed from the balance sheet. Net trade receivables , expressed in months of revenue, came to around 2 months of revenue at 31 December 2018, a slight improvement with respect to 31 December 2017. This ratio is calculated by comparing Net trade receivables with revenue obtained using the count back method. Net trade receivables is obtained by

7.2.1. Aged trade receivables at 31 December 2018

Of which: Past due, with the following breakdown

Of which: Not past due at the balance sheet date

Between 90 and 120 days

Carrying amount

Less than 30 days

Between 30 and 90 days

More than 120 days

(in millions of euros)

Trade receivables

724.0

546.6

74.0

43.1

5.2

55.1

7.2.2. Changes in provisions for trade receivables

31/12/2018

31/12/2017

(in millions of euros)

Impairment of trade receivables at beginning of period

11.4

9.8 0.1 2.9 -1.4

Changes in scope

0.6 5.5

Additions net of reversals

Other movements

-0.2

Translation adjustments

-

-

IMPAIRMENT OF TRADE RECEIVABLES AT END OF PERIOD

17.3

11.4

141

SOPRA STERIA REGISTRATION DOCUMENT 2018