Sopra Steria - 2018 Registration document

PARENT COMPANY FINANCIAL STATEMENTS Notes to the income statement

5.2. French tax credit for

5.1.2. EXPENSES TRANSFERRED Expenses transferred in financial year 2018 amounted to €29.392 million. They mainly consisted of transfers from one expense account to another, as well as intercompany rebilling of structural costs initially recognised by Sopra Steria as part of its management of certain contracts and Group employee share ownership plans.

competitiveness and jobs (CICE) In respect of the 2018 financial year, Sopra Steria Group recorded a CICE tax credit of €18.276 million, recognised as a deduction against staff costs. Sopra Steria Group sold its 2018 CICE tax credit receivables amounting to €23.394 million, including all such receivables relating to tax-consolidated entities. Of this amount, €22.512 million had already been financed at the balance sheet date. The remaining balance of €881 thousand is recognised under Other receivables and is due to be received in the first quarter of 2019. The CICE is used in accordance with regulations in force (Article 244 quater C of the French General Tax Code).

5.3. Financial items

Notes

2018

2017

(in thousands of euros)

Dividends received from equity interests

45,413 -10,396

34,205 -10,878

6.11

Interest on bank borrowings and similar charges

Interest on employee profit-sharing Discounting of the pension provision

-159

-440

-1,195 2,114

-1,119 2,054

Interest received and paid on Group current accounts

Positive and negative foreign exchange impact (including provision)

-557

586

Impairment of equity interests

-8,416 4,370 31,174

11,693 10,775 46,876

4.1.3.b

Other financial income and expenses

FINANCIAL ITEMS

Foreign exchange gains and losses mainly arise from transactions carried out in pounds sterling and US dollars during the year.

The change in other financial income and expenses mainly relates to a capital gain of €6.467 million arising on the 2017 conversion into shares of the CS Communication & Systèmes convertible bonds.

5.4. Exceptional items

Notes

2018

2017

(in thousands of euros)

Scrapping of fixed assets

-11

-710

Disposal of financial investments

-

4,865 3,070 2,004

Gains or losses on treasury share transactions

-1,128 -10,877

Provision for taxes

4.4.2

Restructuring operations

-235 -395

-865

Provision for commercial disputes

- -

Accelerated depreciation and amortisation

350 289

Other

-1,212 7,152

EXCEPTIONAL ITEMS

-12,007

The main movement in exceptional income and expenses resulted from the provision for taxes recognised in the year in the amount of €10.877 million.

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SOPRA STERIA REGISTRATION DOCUMENT 2018