Sopra Steria - 2018 Registration document

2018 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

9.2. Carrying amount of investments in associates

The carrying amount of investments in associates consisted solely of the value of Axway shares. It changed as follows:

Axway shares

(in millions of euros)

Gross value

Impairment Carrying amount

31 December 2016

200.2

- - - - - - - - - - - - - - - - - - - -

200.2

Changes in scope

- -

- -

Reversals of impairment Share capital transactions

1.0

1.0

Dividends paid

-2.8

-2.8

Net profit

1.4

1.4

Translation adjustments Changes in shareholding

-10.2

-10.2

-1.1

-1.1

Disposal

-

-

Other movements 31 December 2017

0.5

0.5

189.1

189.1

Changes in scope

-

-

Share capital transactions

0.1

0.1

Dividends paid

-1.4

-1.4

Net profit

3.6 3.5

3.6 3.5

Translation adjustments Changes in shareholding

-0.1

-0.1

Disposal

-

-

Other movements

0.3

0.3

31 DECEMBER 2018

195.1

195.1

At 31 December 2018, the Axway Software shares held by Sopra Steria Group represented 32.57% of the share capital, compared with 32.59% at 31 December 2017.

Their recoverable amount is estimated as follows:

31/12/2018

31/12/2017

(in millions of euros)

Market value (Category 1) (1) Market value less costs to sell

85.9 84.1

157.6 154.5 198.3

Value in use

194.1

DCF calculation parameters:

10.3%

9.6% 2.2%

Discount rate

p

2.4%

Perpetual growth rate

p

RECOVERABLE AMOUNT 198.3 (1) Since Axway Software shares are listed, their fair value (market value) net of costs of disposal corresponds to the share price less selling price, which constitutes the Level 1 fair value under IFRS. 194.1

Their value in use – the higher of the two values used to determine the recoverable amount – supports the carrying amount of the equity-accounted Axway Software shares at 31 December 2018, since it was deemed that there was no material difference with respect to the carrying amount, and as such no impairment was recognised. The Group tested 0.5-point changes in its assumptions, all other things being equal. A 0.5-point increase in the discount rate would

lead to an impairment loss of €13.8 million; a 0.5-point decrease in the perpetual growth rate would lead to an impairment loss of €7.9 million; and the combination of these two factors – a 0.5-point increase in the discount rate and a concurrent 0.5-point decrease in the perpetual growth rate – would lead to an impairment loss of €19.7 million. This test is based on the judgement of management and takes into account the uncertainties inherent in the transformation of Axway’s business model.

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SOPRA STERIA REGISTRATION DOCUMENT 2018