Sopra Steria - 2018 Registration document

2018 CONSOLIDATED FINANCIAL STATEMENTS Statutory Auditors’ report on the consolidated financial statements

Statutory Auditors’ report on the consolidated financial statements

To the General Meeting of Sopra Steria Group,

These assessments were made as part of our audit of the consolidated financial statements taken as a whole and the formation of our opinion as expressed above. We do not express an opinion on elements of the consolidated financial statements taken in isolation. 2.5. REVENUE RECOGNITION ON FIXED-PRICE CONTRACTS (Notes 1.2.3 and 4.1 to the consolidated financial statements) Risk identified SopraSteriaGroup,oneofEurope’skeyplayersindigitaltransformation, offers end-to-end, high-value-added services comprising consulting and systems integration, development of industry- and technology- specific solutions, IT infrastructure management, cybersecurity and business process services (BPS). The Group’s revenue to 31 December 2018 totalled €4.1 billion, a significant portion of which related to fixed-price contracts. Fixed- price contracts are characterised by commitments relating to the price, the end result and the deadline. As stated in Notes 1.2.3 “Application of IFRS 15 Revenue from Contracts with Customers ” and 4.1 “Breakdown of revenue by reporting unit” to the consolidated financial statements, revenue from services covered by fixed-price contracts is recognised over time (and not at a specific point in time) using the percentage-of- completion method in the following two situations: p the services are performed in the customer’s environment or enhance a customer’s asset. The customer obtains control as the asset is created or developed; p the contract provides for the development of highly specific assets in the Group’s environment (e.g. solutions) prior to implementation in the customer’s infrastructure. The contract also provides for settlement of the value of such services in the event of termination for convenience (where the customer is entitled to do so). The Group has no alternative use for the asset created and has an enforceable right to payment for performance completed to date. Revenue and profit generated over time from these services is recognised on the basis of a qualified estimate of the level of completion, measured as the difference between the contract value and the amount required to cover the total number of person-days remaining to be performed. We considered the recognition of income on fixed-price contacts as a key audit matter due to its significance in the Group’s financial statements and the level of judgment and estimation required by management to determine the revenue and income on completion from these contracts. Our response We familiarised ourselves with the internal control procedures implemented by the Group and tested the key controls relating to determining income from fixed-price contracts.

1. Opinion In accordance with our appointment as Statutory Auditors by the shareholders at your General Meetings, we have audited the attached consolidated financial statements of Sopra Steria Group for the financial year ended 31 December 2018. We certify that the consolidated financial statements are, with respect to IFRS as adopted in the European Union, true and fair and provide an accurate view of the results of your Company’s operations for the year under review and of the financial position and assets and liabilities, at the end of the year, of the group formed by the persons and entities included in the consolidation. The above opinion is in keeping with the contents of our report to the Audit Committee. 2.1. AUDIT FRAME OF REFERENCE We performed our assignment in accordance with the professional standards applicable in France. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. The responsibilities incumbent on us under these standards are set out in the section of this report entitled “Responsibilities of the Statutory Auditors relating to the audit of the consolidated financial statements”. 2.2. INDEPENDENCE We performed our audit in accordance with the independence rules applicable to us for the period from 1 January 2018 to the date our report was issued, and in particular we have not provided any services prohibited by Article 5, paragraph 1 of Regulation (EU) No. 537/2014 or by the French Code of Ethics for Statutory Auditors. 2.3. OBSERVATIONS Without calling into question the opinion expressed above, we draw your attention to Notes 1.2.3 and 1.2.4 to the consolidated financial statements concerning the first-time application of IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments . 2.4 JUSTIFICATION OF OUR ASSESSMENTS – KEY AUDIT MATTERS In accordance with the requirements of Articles L. 823-9 and R. 823-7 of the French Commercial Code relating to the justification of our assessments, we bring to your attention the key audit matters relating to the risks of material misstatement which, according to our professional judgment, were most significant for the audit of the consolidated financial statements for the year, as well as our responses to these risks. 2. Basis of our opinion



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