Sopra Steria - 2019 Universal registration document

5 2019 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

LEASES NOTE 9

Right-of-use assets by category of leased assets 9.1.

Other property, plant and equipment

Premises

Vehicles IT equipment

Total

(in millions of euros)

Gross value 31 december 2018

-

-

-

-

-

First-time application of IFRS 16

523.5 52.3 56.5 -27.6

35.7

37.6

4.0 0.4 0.2

600.7 58.6 72.2 -49.0

Changes in scope

0.3 7.8

5.6 7.8

Acquisitions

Disposals – Scrapping

-9.3

-11.4

-0.7

Other movements

-

-

2.1 0.1

-

2.1 4.9

Translation adjustments 31 DECEMBER 2019

4.5

0.2

0.1 4.0

609.1

34.6

41.8

689.4

Depreciation 31 december 2018

-

-

-

-

-

First-time application of IFRS 16

256.5 13.6 74.4 -21.2

18.1

21.6

1.9 0.3 1.2

298.1 14.3 96.4 -42.2

Changes in scope

0.2 9.9

0.2

Charges

10.8 -11.1

Disposals – Scrapping

-9.2

-0.7

Other movements

-

-

0.1 0.0

-

0.1 2.3

Translation adjustments 31 DECEMBER 2019 Net value 31 december 2018 31 DECEMBER 2019

2.1

0.1

0.1 2.8

325.5

19.0

21.7

369.1

-

-

-

-

-

283.6

15.5

20.1

1.2

320.4

Leases Leases are recognised in the balance sheet at the lease commencement date, which corresponds to the date at which the lessor makes the underlying asset available to the lessee, and results in the recognition of a balance sheet asset within Right-of-use assets and a liability within Lease liabilities . The value of lease liabilities corresponds to the present value of minimum future payments, discounted over the lease term using either the interest rate implicit in the lease or otherwise the incremental borrowing rate of the entity leasing the asset. The lease term takes into account the fixed term as well as whether any renewal or cancellation options are reasonably certain to be used. At the lease commencement date, the value of the right-of-use asset recognised in the balance sheet corresponds to the lease liability adjusted for any initial direct costs incurred in obtaining the lease, prepaid lease payments, incentives received from the lessor at that date, or costs to be incurred by the lessee in dismantling and removing the underlying asset. Minimum future payments include fixed lease payments, variable lease payments that depend on an index or a rate, residual value guarantees, the exercise price of a purchase option, and termination or non-renewal penalties if the Group is reasonably certain to

exercise or not exercise these options. Some of these values may change over the term of the lease, in which case the values of lease liabilities and right-of-use assets are revised upward or downward. They do not include any service components that may be included in the lease, which continue to be recognised as expenses. In the balance sheet, Lease liabilities are split out into non-current and current portions. Right-of-use assets are amortised on a straight-line basis over the lease term or the useful life of the underlying asset if the lease transfers ownership of the asset to the lessee, or if the lessee is reasonably certain of exercising a purchase option. In the income statement, these amortisation expenses are included within Depreciation, amortisation, provisions and impairment under Operating profit on business activity. The Net interest expense on lease liabilities is split out from the line item Other financial income and expenses. Lastly, as an exception, short-term leases (lease term of 12 months or less) and leases of low-value assets (individual value less than 5,000 USD) are directly recognised as expenses and are therefore not restated in the balance sheet. Variable lease payments are also recognised as expenses according to the use or revenue generated by the use of the underlying asset.

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SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2019