Sopra Steria - 2018 Registration document

PARENT COMPANY FINANCIAL STATEMENTS Notes to the balance sheet

At 31 December 2018, the covenant for pro forma EBITDA/cost of net financial debt, requiring a ratio of at least 5.0, was also met, with the ratio coming in at 47.49. It is calculated as follows:

31/12/2018

31/12/2017

(in thousands of euros)

EBITDA

369,640

354,091

Cost of net financial debt

7,784 47.49

6,786 52.18

Pro forma EBITDA/cost of net financial debt ratio

4.5.2. FINANCIAL INSTRUMENTS

The eligible counterparties for interest rate hedging and investments are leading financial institutions which belong to the Sopra Steria banking syndicate. These financial instruments are managed by the Group Finance Department. For transactions qualifying as hedges, the underlying hedged risk consists of a group of floating-rate financial liabilities. At 31 December 2018, floating-rate financial liabilities mainly comprised the euro- denominated tranche of the 2014 syndicated loan (€128 million), the NEU CPs (€157 million), a portion of the NEU MTNs (€79 million) and a contract for the sale of trade receivables (€68 million).

a. Interest rate hedge Within the framework of the Group’s policy, the Company’s aim is to protect itself against interest rate fluctuations by hedging part of its floating rate debt and investing its cash over periods of less than three months. The Company does not conduct speculative transactions on financial markets. The derivative financial instruments used to hedge the debt are interest rate swap contracts or options, which may or may not be eligible for hedge accounting.

Fair value

31/12/2018

Maturity

Non- current assets

Non- current liabilities

Current assets

Notional amount

Current liabilities

1 to 5 years > 5 years

< 1 year

(in thousands of euros)

Swap (cash flow hedge) in euros Swap (cash flow hedge) in foreign currency Options eligible for hedge accounting in euros Options eligible for hedge accounting in foreign currency Swaps not eligible for hedge accounting in euros Options not eligible for hedge accounting in euros TOTAL INTEREST RATE HEDGES

-

-

-

296

50,000 50,000

-

-

-

-

-

-

-

-

-

521

-

1,868

-

300,000

-

300,000

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

99

- -

278

-

50,000

-

50,000

- -

620

2,146

296 400,000 50,000 350,000

Transactions not qualifying as hedges relate to contracts for options not written on an underlying at 31 December 2018. At 31 December 2018, the fair value of interest rate instruments was negative €1.826 million.

The portfolio’s sensitivity in the event of a change in interest rates is: p a decrease of €731.0 thousand in the event of a drop of 50 basis points in interest rates; p an increase of €2,459.7 thousand in the event of a rise of 50 basis points in interest rates.

193

SOPRA STERIA REGISTRATION DOCUMENT 2018

Made with FlippingBook Learn more on our blog