Sopra Steria - 2018 Registration document

PARENT COMPANY FINANCIAL STATEMENTS Accounting principles and policies

NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS

1. Company description

Sopra Steria Group is the parent company of the Sopra Steria group. It performs a number of roles: p it operates as a holding company, holding financial interests through which it has direct or indirect control over Group companies.

It implements the Group’s funding policy, and as such ensures that the funding requirements of its subsidiaries are met. It also centrally manages market risks to which it and its subsidiaries are exposed; p it operates in consulting, systems integration, software and other solutions mainly delivered in France.

2. Significant events

2.1. Restructuring operations By decision of the Board of Directors on 15 and 16 February 2018, Ingenierie Topographique Informatique (ITI) and Cassiopae Real Estate Paris were absorbed into Sopra Steria Group under the simplified merger procedure. Prior to these transactions, ITI had absorbed Cassiopae Real Estate Nantes under the simplified merger procedure. No consideration was paid when these companies, acquired in full by the Company in 2017, were absorbed. The two transactions, completed on 31 March 2018, were backdated to 1 January 2018 for accounting and tax purposes. Net assets added to the Group’s balance sheet, measured at their net carrying amount at the effective date, totalled €8.853 million. The impacts of these additions on key items in the balance sheet

are detailed in the tables analysing changes set out under Note 4 (“Changes in scope” columns). The mergers resulted in a total merger loss of €22.018 million. After analysis, these losses were recognised under Intangible assets. 2.2. We Share 2018 employee share ownership plan On 18 January 2018, the Board of Directors decided to renew the We Share offer in 2018. This plan was based on a sale of shares reserved for members of a Group savings plan in France and abroad, as well as free shares awarded as the matching employer contribution. The main features of this plan and its impact on the Company’s financial statements are described in Note 6.6.1.

3. Accounting principles and policies

The financial statements for the period under review were prepared and are presented in accordance with the accounting methods in force within the Group and in compliance with the principles laid down in Articles 121-1 and 121-5 et seq. of France’s 2014 national chart of accounts (plan comptable général). Accounting conventions have been applied in accordance with the provisions of the French Commercial Code and ANC Regulation 2016- 07 on the revision of the national chart of accounts applicable at the period-end. Generally accepted accounting principles were applied on a prudent basis and in accordance with the following underlying assumptions:

accrual basis; and

p

p in accordance with general guidelines for the preparation and presentation of parent company financial statements. No changes were made to accounting policies during the periods under review.

3.1. Intangible assets

3.1.1. SOFTWARE DEVELOPMENT COSTS All research and development costs are charged to the income statement for the financial year during which they are incurred.

going concern basis;

p

p consistency of accounting methods from one year to the next;

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SOPRA STERIA REGISTRATION DOCUMENT 2018

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