Sopra Steria - 2018 Registration document

2018 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

The Group’s Finance Department provides this hedging via futures or options entered into either on organised markets or over the counter with top-tier counterparties that are members of the banking syndicate. The Group’s policy is not to conduct speculative transactions on financial markets.

Finally, the structure of the Group’s borrowing, part of which is denominated in sterling, provides a natural (if only partial) hedge against currency translation risk on net assets, recognised directly in the balance sheet. Similarly, in connection with the Kentor acquisition, the Group entered into a hedging arrangement for the Swedish krona to cover its financing requirements for this entity.

The balance sheet value of the Group’s foreign currency hedges, and applicable notional amounts hedged, are as follows:

Fair value

31/12/2018

Maturity

Non- current assets

Non- current liabilities

Notional amount

Current assets

Current liabilities

1 to 5 years > 5 years

(in millions of euros)

< 1 year

Fair value hedges Foreign currency forwards Foreign currency options Cash flow hedges Foreign currency forwards Foreign currency options

- -

2.5 0.1

- -

0.1

64.2 64.2

- -

- -

-

7.0

7.0

3.7 0.2

0.5 0.2

- -

-

87.2 23.1 64.1

- -

0.1

9.9

7.0

2.9

Instruments not designated for hedging *

-

-

- -

-

3.3

3.0 0.3

- -

TOTAL FOREIGN CURRENCY HEDGES

3.9

3.3

0.2 171.6 104.3 67.2

* The Group hedges the foreign exchange transaction risk but chooses in certain cases not to apply hedge accounting.

The fair value of these financial instruments is adjusted by crediting or debiting Other current operating income and expenses , with the exception of the time value and the impact of financial instruments not eligible for hedge accounting, which are recognised in Other financial income and expenses . The profit or loss and equity impacts of the Group’s foreign currency hedges are as follows:

Balance sheet amounts

Changes in fair value

Profit or loss impact

Ineffective portion of cash flow hedges

Change in fair value

Changes in scope

Other changes 31/12/2018

Equity impact

Fair value

(in millions of euros)

31/12/2017

hedges Trading

Fair value hedges Foreign currency forwards Foreign currency options Cash flow hedges Foreign currency forwards Foreign currency options Instruments not designated for hedging TOTAL PRE-TAX IMPACT

1.8

0.7

-

-

2.4

-

-

0.7

-

0.2

-0.2

-

0.1

0.1

-

-

-0.2

-

1.3

2.9

-

-

4.2

2.9

-

-

-

0.2

-

-

0.1

0.3

-

-

-

-

-

0.2

-

-0.2

-

-

-

-

0.2

3.5

3.6

-

-

7.1

2.9

-

0.4 0.2

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SOPRA STERIA REGISTRATION DOCUMENT 2018