Sopra Steria - 2018 Registration document

2018 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Outflows related to acquisitions of companies, recognised within Impact of changes in scope , were up €72.8 million. Those that took place in 2018 are described in Note 2.1 and presented in the following table:

31/12/2018

31/12/2017

(in millions of euros)

Cost of acquisitions paid (excluding earn-outs) Net debt/(Net cash) of acquired companies

-182.0

-97.6

13.2

-4.5

Earn-outs

- - -

- -

Earn-outs paid in respect of prior acquisitions

Disposal price for shares sold in consolidated equity investments

6.1

TOTAL

-168.8

-96.0

In 2018, acquisitions of companies comprised BLUECARAT and it- economics in Germany, and Apak and O.R. System by Sopra Banking Software (see Note 2.1). In 2017, they mainly comprised Kentor in Sweden and Galitt in France. Finally, the 2018 version of the We Share employee share ownership programme involved the acquisition on the market of Sopra Steria Group shares for €22.3 million to satisfy plan requirements. In

contrast, in the previous financial year the Group had enough shares in its balance sheet to satisfy the 2017 plan requirements. This largely explains the less favourable level of cash flows related to the purchase and sale of treasury shares. As a result of these effects, net financial debt at 31 December 2018 increased to €620.9 million, compared with €510.1 million at 31 December 2017.

12.2. Reconciliation of WCR with the cash flow statement The impact of the components of the working capital requirement shown on the balance sheet on cash generation can be broken down as follows:

Change in WCR items without cash impact

Of which: Items not included in WCR

Of which: WCR items

Impact on cash flow statement

Net change

Foreign exchange Other

31/12/2018 31/12/2017

(in millions of euros)

Other non-current financial assets p Other loans and receivables p Other non-current financial assets

19.2 14.6

6.5 12.7 2.2 12.5

0.2

12.5 12.5

- - - -

0.2 0.2

-12.3 -12.3

-

4.5

4.3

0.2

0.2

-

-

-

19.2

6.5 12.7

0.2 12.5

0.2

-12.3 74.2 -33.3 107.5 -24.1

Non-current assets

Trade receivables and related accounts

1,091.0

1,147.1 -56.1 654.7 51.9 492.4 -108.1 246.3 40.5

- - -

-56.1 51.9

-2.1 20.2 -1.4 20.0

Trade receivables Accrued income

706.6 384.3 286.8

p

-108.1

-0.7 -0.1

0.2 6.7

p

Other current receivables

9.9

30.6

1,377.8 1,393.4 -15.6

9.9 -25.5 -2.2 26.9

50.1

Current assets

Non-current assets classified as held for sale

-

-

-

-

-

-

-

-

Total assets

1,397.0 1,399.8 -2.9

10.1 -13.0 -2.2 27.0

37.8

Retirement benefits and similar obligations – Liabilities p Other long-term employee benefits

-7.2 -7.2

-14.9 -14.9

7.7 7.7

- -

7.7 7.7

0.4 0.4 0.9

-0.4 -0.4 -7.3

-7.7 -7.7 -1.9 -9.6

Other non-current liabilities Non-current liabilities

-99.9

-65.2 -34.7

-30.2

-4.5 3.3

-107.1 -294.9

-80.1 -27.0 -30.2

1.3 -7.6 -2.3 -14.7

Trade payables

-268.8 -26.2

-

-26.2

9.2

Advances and payments on account received for orders Deferred income on client projects

-3.8

-3.3 -0.4 -275.7 19.6 -812.9 16.6

- -

-0.4 19.6 34.8

-

-

0.4

-256.1 -796.4

0.3 1.7

-9.4

-28.7 -32.2 -51.3

Other current liabilities Current liabilities

-18.2

0.8

-1,351.2 -1,360.7 9.6 -18.2 27.8 -0.2 -23.3

Liabilities related to non-current assets classified as held for sale

-

-

-

-

-

-

-

-

Total liabilities TOTAL WCR

-1,458.3 -1,440.9 -17.4 -48.5 31.1

1.0 -30.9

-60.9 -23.1

-61.3

-41.0 -20.3 -38.3 18.1 -1.2 -3.9

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SOPRA STERIA REGISTRATION DOCUMENT 2018