Sopra Steria - 2018 Registration document

2018 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

13.1.5. Non-controlling interests

The contributions to the income statement and balance sheet of entities in which there are non-controlling interests mainly come from joint ventures formed with the UK authorities in the United Kingdom region: NHS SBS, 50%-owned by the UK Department of Health, and SSCL, 25%-owned by the Cabinet Office. The Group has 50% and 75% control, respectively. They also relate to the companies in the Galitt group acquired in 2017. The Group has granted the Cabinet Office a put option to sell the shares it holds in SSCL.

In the same vein, the Group has entered into an irrevocable commitment to acquire the remaining shares in Galitt, in the form of a put option granted to the other shareholders. Due to the accounting treatment of the put option granted in respect of SSCL and Galitt shares, the amount of non-controlling interests on the balance sheet mainly relates to the UK Department of Health’s share in the net assets of NHS SBS, i.e. €32.3 million. In the income statement, the amounts attributable to non-controlling interests came to €1.1 million for SSCL, €2.2 million for NHS SBS and €0.3 million for the companies in the Galitt group.

Summary financial information for SSCL, NHS SBS and Galitt is as follows:

31/12/2018

SSCL

NHS SBS

Galitt

(in millions of euros)

Non-current assets

15.9

28.2 58.7

40.8

Current assets

124.2

9.9 4.8

Non-current liabilities

34.4 49.9

9.3

Current liabilities

13.1 85.6

-7.2 34.3

Revenue Net profit

173.9

4.4

4.5

2.7

13.1.6.Capital management objectives, policy and procedures

Non-controlling interests arise where a portion of equity ownership in a subsidiary is not attributable directly or indirectly to the parent company. When non-controlling interests have an option to sell their investment to the Group, a financial liability is recorded in Other non-current liabilities (see Note 7.4) for the present value of the option’s estimated exercise price. The offset of the financial liability generated by these commitments is deducted from: p the corresponding amount of non-controlling interests initially; and p the Group’s share of consolidated reserves for the remainder. Subsequent changes in this put option arising from changes in estimates or relating to the unwinding of discount are offset against the corresponding non-controlling interests and the remainder is deducted from the Group’s share of consolidated reserves.

The company’s capital is solely composed of the items disclosed in the balance sheet. There are no financial liabilities considered to be components of capital and, conversely, there are no equity components not considered to be part of the company’s capital. The company is not subject to any external constraints on its capital. Treasury shares are detailed in Note 13.1.2. The only potentially dilutive instruments are the free performance shares granted under Steria’s (and now Sopra Steria’s) legacy performance-linked free share plans (see Note 5.4.2).

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SOPRA STERIA REGISTRATION DOCUMENT 2018