Sopra Steria - 2019 Universal registration document

5 2019 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Change in pension assets and liabilities in the United Kingdom b. In the United Kingdom, net liabilities arising from post-employment defined-benefit plans reflect the net value of benefit obligations and the plan assets covering them. These assets and liabilities changed as follows:

31/12/2019

31/12/2018

(in millions of euros)

Present value of the obligation at the beginning of the period

1,544.1

1,685.7

Changes in scope

-

-

Translation adjustments

84.2

-12.3

Current service cost

4.0

4.5

Past service cost

-

-

Interest

44.2

42.0

Employee contributions

-

-

Effect of obligation remeasurements

145.0 -14.2 -22.5 181.7

-93.3 11.6

Experience adjustments p

Impact of changes in demographic assumptions p Impact of changes in financial assumptions p

-9.8

-95.1

Plan amendments

- -

- -

Transfers

Benefits provided

-42.3

-82.5

PRESENT VALUE OF THE OBLIGATION AT THE END OF THE PERIOD

1,779.2

1,544.1

Fair value of plan assets at the beginning of the period

1,396.6

1,484.1

Changes in scope

-

-

Translation adjustments

77.2 40.3

-11.3 37.2 -58.5 -58.5

Interest

Effects of plan asset remeasurements

143.4 143.6

Return on plan assets (excluding amounts included in interest income) p

Impact of changes in financial assumptions p

-0.2 28.3

-

Employer contributions Employee contributions

27.7

- -

- -

Transfers

Benefits provided

-42.3

-82.5

FAIR VALUE OF PLAN ASSETS AT THE END OF THE PERIOD

1,643.5

1,396.6

The decrease in net liabilities mainly resulted from the contributions paid to reduce the deficit and the favourable change in the discount rate. UK pension fund assets fall into four investment categories:

31/12/2019

31/12/2018

(in millions of euros)

Shares

360.0 336.3 249.8 697.4

368.9 673.6 246.5 107.6

Bonds/private placements

Infrastructure and property assets

Other assets

TOTAL

1,643.5

1,396.6

Other assets mainly comprised cash and cash equivalents (€175.7 million at 31 December 2019) and hedging instruments (€527.1 million as of 31 December 2019). The discount rate used for employee obligations is based on the return on AA bonds in line with the life of the liabilities rounded to the nearest hundredth. In the United Kingdom, the benchmark used is the Mercer yield curve. A 0.25-point decrease in the discount rate would increase the benefit obligation by €82.0 million.

A 0.25-point increase in the discount rate would reduce the benefit obligation by €74.2 million. A 10% reduction in the value of the assets would reduce their amount by €164.3 million, whereas a 10% increase would increase their amount by €164.3 million. These sensitivity estimates are made on the basis of all other things being equal. At 31 December 2019, one plan was in a net asset position, totalling €2.0 million. This asset is deemed recoverable through a future decrease in contributions.

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SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2019