Sopra Steria - 2018 Registration document

2018 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Changes in Intangible assets are set out in the table below:

Gross value Amortisation Carrying amount

(in millions of euros)

31 December 2016

406.1

206.6

199.6

Changes in scope

1.7

1.7

-

Allocated intangible assets

12.1 16.9 -1.2 -2.6 -7.5

- -

12.1 16.9 -0.1 -1.5 -4.1 -32.7 190.2

Acquisitions

Disposals – Scrapping

-1.1 -1.1 -3.5 32.7

Other movements

Translation adjustments Amortisation charge 31 December 2017

-

425.5

235.3

Changes in scope

1.1

- - -

1.1

Allocated intangible assets

46.6 53.7 -17.8

46.6 53.7

Acquisitions

Disposals – Scrapping

-17.8 -8.6 -1.1 37.2

-

Other movements

-7.7 -3.0

0.9

Translation adjustments Amortisation charge 31 DECEMBER 2018

-1.9

-

-37.2

498.4

244.9

253.5

Allocated intangible assets recognised in respect of new acquisitions during the 2018 financial year are described in Note 2.1. They consisted of customer relationships for €28.3 million, enterprise software for €12.3 million and brands for €6.5 million. In 2017, on the acquisition of Kentor in Sweden, the Group recognised €12.1 million of allocated assets attributable to customer relationships. Changes during the period also included the acquisition of an operating licence as part of the fulfilment of a contract in the United Kingdom with the UK government, for €44.4 million. Payment is spread over a three-year period. a. Assets acquired separately These are software assets recorded at cost. They are amortised using the straight-line method over one to ten years, depending on their estimated useful lives. b. Assets acquired in connection with business combinations These are software assets, customer relationships, brands and distributor relationships measured at fair value as part of a purchase price allocation for entities acquired in business combinations. They are amortised using the straight-line method over three to fifteen years, depending on their estimated useful lives. Acquired brands whose useful lives cannot be estimated are not amortised.

In 2017, Sopra Banking Software acquired source code for €8.0 million and incurred costs arising from adjustments to its solutions platforms. These costs were capitalised and amounted to €2.4 million. In 2018, Sopra Banking Software continued to incur costs arising from these adjustments, and capitalised €3.2 million. They were all recognised as part of the costs for acquiring the software. No other significant development expenditures for software and solutions (Banking, Human Resources and Real Estate Management) have been recognised under intangible assets. p Research and development costs are expensed in the year in which they are incurred; p Software development costs are capitalised if all of the following can be demonstrated: • technical feasibility of completing the intangible asset for use or sale; • intent to complete the intangible asset and use or sell it; • ability to use or sell the intangible asset; • generation of probable future economic benefits; • availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; • ability to reliably measure the expenditure attributable to the intangible asset during its development. c. Internally generated assets Pursuant to IAS 38 Intangible Assets :

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SOPRA STERIA REGISTRATION DOCUMENT 2018