Sopra Steria - 2018 Registration document

2018 CONSOLIDATED FINANCIAL STATEMENTS Statutory Auditors’ report on the consolidated financial statements As regards plan assets, we also assessed whether the assumptions made by management to value these assets and the documentation provided by management to justify the recognition of net plan assets were appropriate. Lastly, we verified the appropriateness of the information provided in Note 5.3.1 to the consolidated financial statements. 3. Specific verifications We also performed the specific procedures in accordance with professional standards applicable in France and required by law in relation to the information on the Group contained in the Management Report of the Board of Directors. We have no matters to report as to its fair presentation and its consistency with the consolidated financial statements. We certify that the consolidated declaration of non-financial performance in accordance with Article L. 225-102-1 of the French Commercial Code is provided in the information relating to the Group in the Management Report, it being understood that in accordance with Article L. 823-10 of the French Commercial Code, we have not checked the information contained in this declaration for fairness or consistency with the consolidated financial statements and it should be the object of a report by an independent third-party organisation. 4. Information resulting from other legal and regulatory requirements Mazars was appointed Statutory Auditor of Sopra Steria Group by the shareholders at the General Meeting of 1 June 2000, and Auditeurs et Conseil Associés – ACA Nexia by the shareholders at the General Meeting of 30 June 1986. As at 31 December 2018, Mazars was in its 19th consecutive year as Statutory Auditor and Auditeurs et Conseil Associés – ACA Nexia was in its 33rd consecutive year as Statutory Auditor, respectively 19 years and 29 years since the company’s shares were first listed for trading on a regulated market. 5. Responsibility of management and persons charged with governance in relation to the consolidated financial statements It is management’s responsibility to prepare consolidated financial statements that give a true and fair view in accordance with IFRS as adopted by the European Union, as well as to implement the internal controls it deems necessary to prepare consolidated financial statements that are free of material misstatement, whether due to fraud or error. On preparing the consolidated financial statements, it is up to management to assess the company’s ability to continue as a going concern, and to present in the financial statements, if applicable, any necessary information relating to the continuity of operations and apply the going concern assumption unless it is planned that the company will be liquidated or cease trading.

Our response Our work consisted primarily of:

p reviewing the compliance of the methodology used by the Group with applicable accounting standards; p assessing the reasonable nature of assumptions used to determine future cash flows in relation to operating data, with regard to the business and financial context for the Group’s operations, and their consistency with the most recent estimates presented to the Board of Directors within the framework of budgetary processes; p assessing, with the help of our valuation experts, the consistency of the perpetual growth rate and the weighted average unit cost of capital in all components; p analysing the sensitivity of the value in use determined by management to a change in the main assumptions made. Lastly, we verified that Note 9.2 to the consolidated financial statements provided appropriate information. Post-employment benefits arise mainly from the Group’s obligations towards its employees to provide retirement benefits in France and defined-benefit pension plans in the United Kingdom, Germany and other European countries (Belgium, Norway). The actuarial value of accumulated benefits as at 31 December 2018 was €315.5 million. The net liability in respect of retirement benefits and similar obligations was calculated at the balance sheet date based on the most recent valuations available. As these liabilities are covered by plan assets with a fair value of €1,414.3 million, net liabilities as at 31 December 2018 totalled €308.3 million. The most significant plan assets concern the United Kingdom and France. Valuing pension scheme assets and liabilities, as well as the actuarial cost for the year, requires a high level of judgment by management to determine appropriate assumptions to be made such as the discount rate and the rate of inflation, future pay rises, staff turnover and mortality tables. The change in some of these assumptions may have a material impact on determining net liabilities recognised as well as on the Group’s profit. In view of the amounts represented by these liabilities and associated plan assets, as well as the technical skill required to evaluate these amounts, we considered this type of liability relating to post- employment benefits to be a key audit matter. Our response We familiarised ourselves with the process for valuing post- employment benefit liabilities implemented by the Group. A review of actuarial assumptions was performed by means of: p assessing discount rates and rates of inflation in order to evaluate their consistency with market conditions; p assessing the reasonable nature of assumptions relating to pay rises, staff turnover and mortality in order to evaluate their consistency with the specific characteristics of each pension scheme and, if applicable, with national and sector benchmarks; p a review of calculations made by the Group’s external actuaries. 2.8. POST-EMPLOYMENT BENEFIT LIABILITIES (Note 5.3 to the consolidated financial statements) Risk identified



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