Sopra Steria - 2019 Universal registration document

5 2019 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

The profit and loss impact of these financial instruments is as follows:

31/12/2019

Breakdown by category of instrument

Loans, receivables and other debt

Liabilities at amortised

Fair value through profit or loss

Financial assets at fair value through OCI

Profit or loss impact

cost Derivatives

(in millions of euros)

Total interest income Total interest expense

2.7

- - - -

2.7

- - - -

-

- -

-11.4

- -

-11.4

Remeasurement

-1.2 -9.9

-

-1.2 -1.2

NET GAINS OR LOSSES

2.7

-11.4

The Group uses derivatives such as currency forwards, swaps and options to hedge its exposure to interest rate risk and fluctuations in foreign currencies. Derivatives are recognised at fair value. Any gains or losses resulting from fair value movements in derivatives not designated as hedging instruments are recognised directly in profit or loss as Other financial income and expenses. The fair value of currency forwards is calculated by reference to current rates for contracts with similar maturity profiles. The fair value of interest rate swaps is determined by reference to the market value of similar instruments. For hedge accounting purposes, hedges are classified as either: fair value hedges, which hedge exposure to changes in the fair p value of a recognised asset or liability or a firm commitment (except foreign currency risk); cash flow hedges, which hedge exposure to fluctuations in cash p flows attributable either to a specific risk associated with a recognised asset or liability or a highly probable future transaction or foreign currency risk on a firm commitment; hedges of a net investment in a foreign operation. p Hedging instruments that satisfy hedge accounting criteria are Changes in the fair value of a derivative designated as a fair value hedge are recognised in profit or loss ( Other current operating income and expenses or Other financial income and expenses according to the type of hedged item). The ineffective portion of the hedges is recognised in profit or loss as part of Other financial income or Other financial expenses , either over the term of the instrument for financial hedges, or at the date of the hedged recognised as follows: Fair value hedges a.

purchase or sale for hedges of commercial risk. Fair value gains and losses on the hedged item attributable to the hedged risk adjust the carrying amount of the hedged item and are also recognised in profit or loss. Cash flow hedges b. The gain or loss corresponding to the effective portion of the hedging instrument is recognised directly in equity, while the ineffective portion is taken to profit or loss, in Other financial income and expenses. Gains and losses recognised directly in equity are released to profit or loss under Other comprehensive income in the period during which the hedged transaction impacts profit or loss. If the Group does not expect the realisation of the forecast transaction or commitment, the gains and losses previously recognised directly in equity will be released to profit or loss. If the hedging instrument matures, is sold, cancelled or exercised and is not replaced or renewed or if its designation as a hedging instrument is revoked, amounts previously recognised in equity will be held in equity until realisation of the forecast transaction or firm commitment. Hedges of a net investment c. Hedges of a net investment in a foreign operation, including hedges of monetary items recognised as part of a net investment, are recognised in Other comprehensive income. The gain or loss corresponding to the effective portion of the hedging instrument is recognised directly in equity, while the ineffective portion is taken to profit or loss. On the disposal of the foreign operation, cumulative gains and losses recognised directly in equity are released to profit or loss.

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SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2019