Sopra Steria - 2019 Universal registration document

5 2019 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Other current assets 7.3.

31/12/2019

31/12/2018

(in millions of euros)

Inventories and work in progress Advances and payments on account

30.4

20.1

6.1 4.4

6.3 4.8

Staff and social security

Tax receivables (other than corporate income tax)

115.5 106.8

100.2

Corporate income tax

85.4

Loans, guarantees and other financial receivables maturing in less than one year

5.4

5.9

Other receivables

17.9 -0.9 56.2

13.2 -1.1 48.7

Impairment of other receivables

Prepaid expenses

Derivatives

6.6

3.3

TOTAL

348.3

286.8

Inventories and work in progress essentially result from the costs of fulfilling contracts (transition phases of third-party application maintenance, infrastructure management and outsourcing contracts; preparatory phases for licences in SaaS mode), as described in Note 4.1. Their increase results from the signature of new contracts. Tax receivables include those relating to the CIR (R&D tax credit) in France.

In France in 2018, the Group sold tax receivables arising from the entirety of the 2018 CICE (French tax credit for competitiveness and jobs) and a portion of the CIR, for a total amount with deconsolidation of €41.9 million and without deconsolidation of €12.4 million. In 2019, the CICE was replaced by a system for reducing social security contributions. In addition, the Group did not sell any of its CIR-related tax receivables.

Other non-current liabilities 7.4.

31/12/2019

31/12/2018

(in millions of euros)

Put options granted

77.3 31.2

65.2 32.6

Other liabilities – Non-current portion

Derivatives

3.7

2.2

TOTAL

112.2

99.9

In the United Kingdom, the put option granted by the Group to the Cabinet Office for the shares it holds in the SSCL joint venture, which may be exercised between 1 January 2022 and 31 December 2023, represented a non-current liability of €69.6 million at 31 December 2019 (€57.9 million at 31 December 2018). The Group also entered into an irrevocable commitment to acquire the shares held by minority shareholders in Tecfit – the holding company of Galitt, which was acquired in the second half of 2017 (see Note 2) – by way of a put option granted to these shareholders. Put options granted to non-controlling interests When non-controlling interests have an option to sell their investment to the Group, a financial liability is recorded in other non-current liabilities for the present value of the option’s estimated exercise price. The offset of the financial liability generated by these commitments is deducted from: the corresponding amount of non-controlling interests p initially; and

The corresponding non-current liability was €7.7 million at 31 December 2019 (€7.3 million at 31 December 2018). Lastly, other non-current liabilities included a liability related to the acquisition of an operating licence as part of the fulfilment of a contract in the United Kingdom with the UK administration, for €15.1 million (€30.9 million at 31 December 2018), and also, in 2019, funding requirements for the Group’s investments in corporate venture funds (€10.0 million). At 31 December 2019, derivatives consisted of interest rate and foreign currency hedges (see Notes 12.5.3 and 12.5.4).

the Group’s share of consolidated reserves for the remainder. p Subsequent changes in this put option arising from changes in estimates or relating to the unwinding of discount are offset against the corresponding non-controlling interests and the remainder is deducted from the Group’s share of consolidated reserves.

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SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2019

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