Sopra Steria - 2019 Universal registration document

5 2019 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Changes in Intangible assets are set out in the table below:

Gross value

Amortisation

Carrying amount

(in millions of euros)

31 december 2017 Changes in scope

425.5

235.3

190.2

1.1

-0.1

1.1

Allocated intangible assets

46.6 53.7 -17.8

- -

46.6 53.7

Acquisitions

Disposals – Scrapping

-17.8 -8.6 -1.1 37.2 244.9

-

Other movements

-7.7 -3.0

0.9

Translation adjustments Amortisation charge 31 december 2018

-1.9

-

-37.2

498.4 105.7

253.5

Changes in scope

68.2

37.4 25.6

Allocated intangible assets

25.6

- -

Acquisitions

5.8

5.8

Disposals – Scrapping

-14.2 -0.2 12.5

-14.0

-0.3

Other movements

-2.0

1.8 6.0

Translation adjustments Amortisation charge 31 DECEMBER 2019

6.6

-

56.9

-56.9

633.5

360.6

272.9

Allocated intangible assets recognised in respect of new acquisitions during the 2019 financial year are described in Note 2.1. They consisted of customer relationships for €8.4 million and enterprise software for €17.2 million. In 2018, the acquisitions of Galitt, Apak and it-economics led to the recognition of customer relationships for €28.3 million, enterprise software for €12.3 million and brands for €6.5 million. Assets acquired separately a. These are software assets recorded at cost. They are amortised using the straight-line method over one to ten years, depending on their estimated useful lives. Assets acquired in connection with business b. combinations These are software assets, customer relationships, brands and distributor relationships measured at fair value as part of a purchase price allocation for entities acquired in business combinations. They are amortised using the straight-line method over three to fifteen years, depending on their estimated useful lives. Acquired brands whose useful lives cannot be estimated are not amortised. Internally generated assets c. Pursuant to IAS 38 "Intangible Assets":

Other changes mainly arose from intangible assets acquired as part of business combinations carried out in 2019. No significant development expenditures for software and solutions (Banking, Human Resources and Property Management) have been recognised under intangible assets.

Research and development costs are expensed in the year in p which they are incurred; Software development costs are capitalised if all of the p following can be demonstrated: technical feasibility of completing the intangible asset for use • or sale, intent to complete the intangible asset and use or sell it, • ability to use or sell the intangible asset, • generation of probable future economic benefits, • availability of adequate technical, financial and other • resources to complete the development and to use or sell the intangible asset, ability to reliably measure the expenditure attributable to the • intangible asset during its development.

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SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2019