Sopra Steria - 2019 Universal registration document

2 RISK FACTORS AND INTERNAL CONTROL Risk factors

Summary overview of risk factors 1.2.

Risks related to strategy and market developments

Materiality

Adaptation to market developments and digital transformation

High

Loss of a major client or contract

Medium Medium

Impact of Brexit

Risks related to operational activities Difficulties in attracting, developing or retaining talent and/or loss of personnel in key roles SNFP (1)

High High High

Loss, corruption or unauthorised disclosure of data

Performance deficiency in the management of client projects (during the pre-sales or production phases)

Unavailability of IT services and infrastructure and/or interruption of activities at sites

Medium

Risks related to regulatory requirements Non-compliance, breaches of ethics SNFP (1) Risks associated with retirement benefit obligations

High

Medium

(1) SNFP : Statement of Non-Financial Performance. This risk also relates to concerns addressed by the regulatory changes set out in Articles L. 225-102-1 III and R. 225-105 of the French Commercial Code, which cover the Company’s Statement of Non-Financial Performance.

Each of these main risks is presented in more detail on the following pages, including information describing the risk as well as the Group’s risk management process. Disclosures required by specific obligations, including those relating to the other risks mentioned in the French Commercial Code, are presented in Section 2, “Disclosures arising from specific obligations – Other risks” in Chapter 8 of this Universal Registration Document (pages 274 to 277). The materiality of these risks is rated as “low”. IMPACT OF THE COVID-19 PANDEMIC The covid-19 pandemic has created considerable uncertainty for Sopra Steria concerning its business environment. Given the speed at which events are unfolding and the unpredictability of the current situation, the Group is unable to assess fully and accurately for the time being the likely economic and financial consequences of this pandemic on its business. The impact will depend on the extent and duration of this global health crisis. It will depend very heavily on whether customers decide to halt or postpone certain services. A crisis management unit and appropriate governance framework have been put in place to monitor and manage on a day-to-day basis the implications of events for the Group’s business activities. The priorities are to protect the health of our employees and our customers by taking appropriate measures and to keep services running for them. Teams are working from home wherever this is technically possible. The Group has entered this current period with solid fundamentals and and in a strong financial position. It has access to available and confirmed credit lines totalling €1.5 billion (including a €900 million revolving credit facility, not drawn down at present).

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SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2019