Sopra Steria - 2019 Universal registration document

5 2019 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Cash and cash equivalents 12.2.

31/12/2019

31/12/2018

(in millions of euros)

Short-term investment securities Cash and cash equivalents Cash and cash equivalents

23.5

50.3

174.0 197.5

120.0 170.3 -10.5 159.8

Current bank overdrafts

-4.9

NET CASH IN THE CASH FLOW STATEMENT

192.6

Net cash and cash equivalents include available liquid funds (cash at bank and in hand), liquid marketable securities that meet the definition of cash equivalents, bills of exchange presented for collection and falling due before the balance sheet date, and temporary bank overdrafts. Net debt, as presented in Note 12.3, is more representative of the Group’s financial position. Marketable securities and other short-term investments include money-market holdings, short-term deposits and advances under the liquidity agreement. The risk of a change in value on these investments is negligible. Cash and cash equivalents comprise cash, bank demand deposits, other highly liquid investments with maturities not exceeding three months, and bank overdrafts. Bank overdrafts are included in current liabilities as part of Financial debt – Short-term portion. Cash equivalents are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash, and that are subject to an insignificant risk of changes in value, with the exception of foreign exchange impacts.

Of the €197.5 million in cash and cash equivalents (excluding current bank overdrafts) at 31 December 2019, €134.5 million was held by the parent company and €63.0 million by the subsidiaries. Among the subsidiaries, entities in India contributed €27.1 million to net cash and cash equivalents at 31 December 2019 (versus €52.9 million at 31 December 2018) following dividend distributions. Should this cash held in India be repatriated in the form of dividends, a withholding tax would apply, for which a provision has been recognised.

UCITS classified by the AMF (France’s financial markets regulator) as belonging to the “money market fund” and “short-term money market fund” categories are, for practical purposes, presumed to automatically meet all four quoted eligibility criteria. Other cash UCITS cannot be presumed to be eligible for classification as “cash equivalents”: an analysis must be carried out to establish whether or not the four quoted criteria are met. Cash equivalents are recognised at fair value; changes in fair value are charged to profit or loss under Cost of net financial debt .

Financial debt – Net financial debt 12.3.

Current

Non-current

31/12/2019

31/12/2018

(in millions of euros)

Bonds

2.3

249.3 198.7

251.6 223.5

185.0 242.3

Bank borrowings

24.8

Finance lease liabilities

-

-

-

16.9

Other sundry financial debt Current bank overdrafts

185.0

46.4

231.4

336.5

4.9

-

4.9

10.5

FINANCIAL DEBT

217.1

494.4

711.4

791.2

Short-term investment securities

-23.5

- -

-23.5

-50.3

Cash and cash equivalents NET FINANCIAL DEBT

-174.0

-174.0 513.9

-120.0 620.9

19.5

494.4

195

SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2019