Sopra Steria - 2018 Registration document

PARENT COMPANY FINANCIAL STATEMENTS Notes to the balance sheet

-50 bp

+50 bp

Equity impact

P&L impact (hedge ineffectiveness)

Equity impact

P&L impact (hedge ineffectiveness)

(in thousands of euros)

Swaps (cash flow hedge) in euros

-192

- - -

190

- - -

Swaps (cash flow hedge) in foreign currency Swaps not eligible for hedge accounting Options eligible for hedge accounting in euros

- -

- -

-436

-14

1,641

14

Options eligible for hedge accounting in foreign currency Options not eligible for hedge accounting in foreign currency

- -

-

- -

-

-88

614 628

TOTAL

-629

-102

1,832

Total impact

-731

2,460

b. Foreign exchange hedge Sopra Steria Group is subject to three main types of risks linked to fluctuations in exchange rates: p currency translation risk associated with the repatriation of dividends of subsidiaries whose base currency is not the euro;

p transactional risk associated with purchases and sales of services in foreign currencies and internal foreign exchange contracts granted to subsidiaries in connection with the centralised management of foreign currency risk; p financial foreign currency risk arising from foreign-currency borrowings (risk arising from changes in the value of the financial debt denominated in pounds sterling).

Nominal value

Fair value

(in thousands of euros)

Foreign exchange hedge (1)

67,099 400,000

576

Interest rate hedge (2)

-1,826

(1) Including internal foreign exchange contracts. (2) Excluding swaption contracts.

Transaction risk As part of the Group’s general risk management policy, Sopra Steria Group systematically hedges against foreign currency transaction risks that constitute material risks. In addition, centralised management of foreign exchange transaction risk is in place with the Group’s main entities (apart from India). Sopra Steria Group acts as the centralising entity, granting exchange rate guarantees to subsidiaries in pounds sterling, US dollars and Polish zlotys. After netting internal exposures, Sopra Steria Group hedges the residual exposure through the use of derivatives. The remeasurement through profit or loss of these financial instruments hedging balance sheet items is offset by the revaluation of foreign currency receivables over the period.

At 31 December 2018, the fair value of foreign exchange instruments was €576 thousand. The portfolio’s sensitivity in the event of a change in interest rates is: p an increase of €538.2 thousand in the event of a 5% fall in the euro; p a decrease of €509.5 thousand in the event of a 5% rise in the euro. Foreign currency risk Sopra Steria Group SA grants loans in sterling to a UK subsidiary, the outstanding balance of which is £40 million, financed by an equivalent debt in sterling. At 31 December 2018, sterling-denominated debt providing partial coverage of the assets comprised of shares in UK subsidiaries amounted to £151.9 million.

4.5.3. TRADE PAYABLES

2018

2017

(in thousands of euros)

Non-Group suppliers and related accounts

42,034 56,044 39,260

37,241 48,010 28,901

Accrued expenses

Group suppliers (including accrued expenses)

TOTAL

137,338

114,152

194

SOPRA STERIA REGISTRATION DOCUMENT 2018

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