Sopra Steria - 2018 Registration document

2018 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

These lines of credit break down as shown below:

Amount authorised at 31/12/2018

Draw- down rate Repayment terms

Interest rate at 31/12/2018

Drawdown at 31/12/2018

in €m in £m in €m in £m

AVAILABLE LINES OF CREDIT

Repayable on maturity in 07/2019

Bond

180.0

- 180.0

-

2.60%

100%

Syndicated loan

Amortising until maturity in 2023 Amortising until maturity in 2023 2021 and 2023 Amortising until maturity in 2023

100%

Tranche A

128.0

-

128.0

-

1.00%

100%

Tranche B

51.2

51.2

1.91%

0%

Multi-currency revolving credit facility

900.0 110.0

- -

-

- -

Bilateral credit lines

60.0

0.40%

55%

Finance leases

16.9 81.5

- - -

16.9 81.5

- -

0.37% 0.48% 0.57%

100% 100%

Other

2019/2021

Overdraft

161.5

0.2

8.9

N/A

0%

Total lines of credit authorised per currency 1,577.8 51.2 466.6

60.1

TOTAL LINES OF CREDIT AUTHORISED (EURO EQUIVALENT) OTHER TYPES OF FINANCING USED NEU CP (commercial paper) & NEU MTN (medium-term)

1635.1

533.7

1.46%

33%

N/A N/A 256.0

N/A N/A

2019 to 2023

-0.05%

Other

1.5

N/A

Total financing per currency

724.1

60.1

TOTAL FINANCING (EURO EQUIVALENT)

791.2

0.97%

Interest rates payable on the syndicated loan equal the interbank rate of the currency concerned at the time of drawdown (minimum 0%), plus a margin set for a period of six months based on the leverage ratio. The coupon payable on the bonds issued on 12 April 2013 has a fixed nominal rate of 4.25% and an effective rate of 2.60%, recognised at fair value upon consolidation. The syndicated loan and bond issue are subject to terms and conditions, which include financial covenants. Two financial ratios are calculated every six months using the consolidated financial statements on a 12-month rolling basis: p the first – known as the leverage ratio – is equal to net financial debt divided by pro forma EBITDA;

p the second – known as the interest coverage ratio – is equal to pro forma EBITDA divided by the cost of net financial debt. The first financial ratio must not exceed 3.0 at any reporting date. The second ratio must not fall below 5.0. Net financial debt is defined on a consolidated basis as all loans and related borrowings (excluding intercompany liabilities), less available cash and cash equivalents. Pro forma EBITDA is consolidated operating profit on business activity adding back depreciation, amortisation and provisions included in operating profit on business activity (see Note 1.4.1). It is calculated on a 12-month rolling basis and is therefore restated so as to be presented in the financial statements on a like-for-like basis over 12 months.

At 31 December 2018, the net financial debt/pro forma EBITDA ratio covenant was met, with the ratio coming in at 1.68 compared with a covenant of 3.0. It is calculated as follows:

31/12/2018

31/12/2017

(in millions of euros)

Short-term borrowings (< 1 year) Long-term borrowings (> 1 year)

452.9 338.3 -170.3

273.6 398.9 -162.4

Cash and cash equivalents Other financial guarantees

-

-

Net financial debt (including financial guarantees)

620.9 369.6

510.1 354.1

Pro forma EBITDA

NET FINANCIAL DEBT/PRO FORMA EBITDA RATIO

1.68

1.44

157

SOPRA STERIA REGISTRATION DOCUMENT 2018

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