Sopra Steria - 2018 Registration document

2018 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

31/12/2018

31/12/2017

(in millions of euros)

Operating profit on business activity

307.9

330.7

Depreciation, amortisation and provisions (excluding allocated intangible assets)

55.8

25.2

EBITDA

363.7

355.9

Non-cash items

-3.1

1.3

Tax paid

-63.4

-63.9

Impairment of current assets Change in operating WCR

-5.1

-2.9

-23.1 -39.2 229.8 -61.9

-20.2 -29.6 240.6 -62.3

Reorganisation and restructuring costs Net cash from operating activities

Payments relating to investments in property, plant and equipment and intangible assets Receipts relating to disposals of property, plant and equipment and intangible assets Net change from investment activities involving property, plant and equipment and intangible assets

0.1

-

-61.8

-62.3

Net interest

-8.4

-9.0

Additional contributions related to defined-benefit pension plans

-23.4 136.1 -168.8

-21.0 148.4 -96.0

Free Cash Flow

Impact of changes in scope

Impact of payments relating to non-current financial assets Impact of receipts relating to non-current financial assets

-5.9

-5.2

1.2

2.3

Dividends paid

-48.7

-44.5

Dividends received Capital increases

1.4

2.8 0.1

-

Purchase and sale of treasury shares

-23.4

-1.3

Other cash flows relating to investing activities

-

-

Net Cash Flow

-108.1

6.6

Impact of changes in foreign exchange rates CHANGE IN NET FINANCIAL DEBT Cash and cash equivalents – Beginning of period Non-current financial debt – Beginning of period Current financial debt – Beginning of period Net financial debt at the beginning of the period Cash and cash equivalents – End of period Non-current financial debt – End of period Current financial debt – End of period Net financial debt at the end of the period

-2.6

-10.7

-110.8 155.9 -398.9 -267.1 -510.1 159.8 -338.3 -442.4 -620.9 -110.8

-4.1

261.7 -402.6 -365.1 -506.0 155.9 -398.9 -267.1 -510.1

CHANGE IN NET FINANCIAL DEBT

-4.1

Excluding the impact of the sale of trade receivables with deconsolidation in December 2017 for €37.0 million (see Note 7.2), Free cash flow amounted to an inflow of €173.1 million, compared to an inflow of €111.4 million in 2017 (restated). This improvement was mainly due to the €71.1 million improvement in the working capital requirement (after restating the 2018 and 2017 values for the sale of trade receivables with deconsolidation in 2017 for €37.0 million). It resulted from the 7-day reduction in the average

payment period of trade receivables in 2018, as well as improved cash conversion of the Group’s Operating profit on business activity. This last change was reflected in an improvement in EBITDA, in particular. On the other hand, the Group saw an increase in outflows related to restructuring costs, with this less favourable situation essentially accounted for by costs arising from resource adjustments made in 2018 in the United Kingdom.

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SOPRA STERIA REGISTRATION DOCUMENT 2018