Sopra Steria - 2018 Registration document

2018 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

12.3.Other cash flows in the consolidated cash flow statement

In addition to new borrowings and repayments of existing borrowings (see Note 12.1), net cash generated by financing activities reflects the impact of treasury share transactions. In 2018, of the total outflows of €23.4 million, €22.3 million went toward acquiring Sopra Steria Group shares on the market to satisfy the We Share employee share ownership programme requirements (versus an inflow of €0.9 million in 2017 in respect of the same programme). Net cash generated by financing activities also included the payment of a €2.40 dividend per share (€2.20 per share in 2017) for a total of €48.7 million (€44.5 million in 2017), and €23.4 million in additional contributions paid to reduce the deficit of defined-benefit pension plans (€21.0 million in 2017), €23.2 million of which was allocated to the UK plans (€20.8 million in 2017).

Aside from the impact of changes in scope, cash flows from investing activities chiefly consisted of purchases of €52.6 million in property, plant and equipment (€45.3 million in 2017) and €9.3 million in intangible assets (€16.9 million in 2017), more than half of which were carried out in France (see Notes 8.2 and 8.3). They also included dividends received from Axway Software for €1.4 million (€2.8 million in 2017).

NOTE 13 EQUITY AND EARNINGS PER SHARE

13.1.Equity

All of the Sopra Steria Group shares held by the parent company or any of its subsidiaries are recognised at their acquisition cost, deducted from consolidated equity. 13.1.3. Dividends At Sopra Steria Group’s General Meeting of 12 June 2018, the shareholders resolved to distribute an ordinary dividend of €49.2 million in respect of financial year 2017, equating to €2.40 per share. The dividend was paid on 5 July 2018 for a total of €48.7 million, net of the dividend on treasury shares. The dividend paid in respect of financial year 2016 was €45.2 million, equating to €2.20 per share. 13.1.4. Accumulated translation reserves In line with the principles described in Note 1.4.2.b, accumulated translation reserves include the gains or losses arising on translation from the functional currencies of the Group’s entities to the presentation currency as well as the currency hedging effects of net investments in foreign operations. Movements are recorded in Other comprehensive income . Accumulated translation reserves also reflect the translation effects of gains or losses on disposals of foreign operations.

The consolidated statement of changes in equity is presented on page 111. 13.1.1. Changes in the share capital At 31 December 2018, Sopra Steria Group had a share capital of €20,547,701, the same as at 31 December 2017. It is represented by 20,547,701 fully paid-up shares with a par value of €1 each. 13.1.2. Transactions in treasury shares At 31 December 2018, the value of treasury shares recognised as a deduction from consolidated equity was €42.8 million, consisting of 341,371 shares, including 290,048 shares held by UK trusts falling within the consolidation scope and 51,323 shares acquired by Sopra Steria Group, 19,300 of which were acquired under the liquidity agreement and the rest of which were acquired to make any potential share-based payments. This value also includes €7.4 million relating to the Group’s commitment to acquire shares on the market for its free performance share plans (see Note 5.4.1)

At 31 December 2018, accumulated translation reserves by currency were as follows:

31/12/2018

31/12/2017

(in millions of euros)

Swiss franc

6.2

4.2

Pound sterling Indian rupee

-80.5

-73.5

5.1

8.2

Norwegian krone

-19.2

-18.1

Polish zloty

-0.3

-0.1

Singapore dollar Tunisian dinar

0.2

0.1

-2.5

-1.5

US dollar

3.4 3.7

3.4 1.0

Other currencies

ACCUMULATED TRANSLATION RESERVES (GROUP SHARE)

-83.9

-76.3

The “Other currencies” category mainly includes the accumulated translation reserves of associates, and chiefly Axway Software, in the amount of €7.4 million (€4.0 million at 31 December 2017).

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SOPRA STERIA REGISTRATION DOCUMENT 2018