Sopra Steria - 2019 Universal registration document

5 2019 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

4.2.3. Other operating income and expenses included in Operating profit

Financial year 2019 Financial year 2018

(in millions of euros)

Expenses arising from business combinations (fees, commissions, etc.)

-3.3

-2.4

Net restructuring and reorganisation costs Integration and reorganisation of activities p

-31.6

-30.0

-1.3

-3.1

Separation costs p

-30.3

-26.9

Other operating expenses

-1.3

-1.8

Total other operating expenses

-36.2

-34.2

Other operating income

5.2 5.2

- -

Total other operating income

TOTAL

-31.0

-34.2

In 2019, the Group reorganised its activities, mainly in France (€7.4 million), in Consulting and Systems Integration, at Sopra Banking Software (€5.2 million), in Spain (€4.1 million) and in Germany (€4.6 million). This essentially comprised expenses related to resource adjustments. In 2018, these mainly concerned the United Kingdom for €13.4 million; France for €4.7 million, of which €3.7 million related to its IT Infrastructure Management activities; Germany for €4.3 million; and the Solutions businesses, including Sopra Banking Software for €2.7 million and Sopra HR Software for €1.6 million.

Costs arising from business reorganisations essentially comprised expenses relating to the reorganisation of premises as a result of business combinations, in particular premises remaining vacant. Other operating expenses chiefly consisted of non-recurring impairment losses on application assets that had become obsolete in the new business organisation. Other operating income comprised the impact of asset disposals for €2.3 million in the United Kingdom, and non-recurring income not directly related to operating activity in Germany, mainly at Sopra Financial Technology GmbH.

EMPLOYEE BENEFITS AND SHARE-BASED PAYMENTS NOTE 5

Staff costs 5.1.

Financial year 2019 Financial year 2018

(in millions of euros)

Wages and salaries

-1,999.5

-1,841.8

Social security contributions

-631.7

-580.6

Net expense for post-employment and similar benefit obligations

-37.3

-19.1

TOTAL

-2,668.5

-2,441.5

The Group recognises the amount of short-term employee benefits, as well as the contributions due in respect of its pension plans, under Staff costs. As the Group has no commitments beyond these contributions, no provisions are recognised for these plans. The principles applicable to post-employment benefit expenses and similar items are presented in Note 5.3.2 for other long-term employee benefits and Note 5.3.1 for post-employment benefits.

Workforce 5.2.

Financial year 2019

Financial year 2018

Workforce at period-end

France

19,502 26,743 46,245

19,013 25,101 44,114

International

TOTAL

Financial year 2019 Financial year 2018

Average workforce

France

19,513 26,542 46,055

17,833 23,786 41,619

International

TOTAL

169

SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2019