Sopra Steria - 2019 Universal registration document

6 2019 PARENT COMPANY FINANCIAL STATEMENTS Notes to the balance sheet

Provisions for contingencies and losses 5.4.

Amounts (beginning of period)

Reversals in the year

Amounts (end of period)

Additions in the year

Notes

Used

Not used

(in thousands of euros)

5.4.1

Provisions for retirement bonuses

67,798

6,774

1,402 1,910

-

73,170

Provisions for restructuring

3,510

-

130

1,470

Provisions for commercial disputes Provisions for employee disputes Provisions for foreign exchange losses

-

250 537

-

-

250

2,147 5,519

606

503

1,574 2,411

2,411 1,829

5,519

-

5.4.2

Provisions for tax risks

33,690

-

2,409

33,110

Provisions for contingencies on free share plans

5.4.3

7,923 1,388

13,953

7,090

- -

14,786

Other provisions for contingencies

-

-

1,388

TOTAL

121,975

25,754

16,527

3,043

128,160

costs related to business premises (unoccupied premises, • renovations); financial risks such as the risk of foreign exchange losses (cf. • Note 5.2.5); risks of tax adjustments linked to tax audits. • It should be noted that provisions recognised on a prudent basis p in no way prejudice the future outcome of current disputes.

Provisions for contingencies and losses are set aside to cover p probable outflows of resources to third parties, without consideration for the Company. The Company recognises provisions for the following p contingencies: commercial risks (estimated costs of guarantee expenses, • “losses on completion” on some long-term contracts); employee-related costs (restructuring costs, • performance-based free share plan); PROVISIONS FOR RETIREMENT BONUSES 5.4.1. Sopra Steria Group recognises provisions for its employee benefit obligations in accordance with the terms of voluntary and compulsory retirement under the Syntec collective bargaining agreement, as amended in 2004 following the French pension reform act of 21 August 2003. Provisions for retirement bonuses are recognised on an actuarial basis as described below. Assumptions referring to mortality rates are based on published statistical data.

Turnover tables are based on five-year age brackets and are updated at each balance sheet date to reflect separation data for the last five years. The discount rate used to calculate the present obligation is the yield on high-quality corporate bonds (rated AA or higher) denominated in the payment currency and with a maturity close to the average estimated term of the retirement benefit obligation concerned. The Company uses the 15-year Bloomberg rate for the eurozone as the benchmark for discounting its retirement benefit obligations. At 31 December, this rate stood at 0.87%.

AMOUNTS RECOGNISED IN THE BALANCE SHEET ❙

31/12/2019

31/12/2018

(in thousands of euros)

Present value of the obligation financed (with corridor)

80,944

71,398

Fair value of plan assets

- -

- -

Difference

Present value of the obligation financed Unrecognised actuarial losses (difference)

80,944 -7,581

71,398 -3,188

Unrecognised past service cost

-193

-413

Net liabilities on the balance sheet (provision after charge for the year)

73,170 73,170

67,798 67,798

Liabilities

Assets

-

-

NET OBLIGATION IN THE BALANCE SHEET

73,170

67,798

240

SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2019