Sopra Steria - 2020 Universal registration document

5 2020 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

4.2.3.

Other operating income and expenses included in Operating profit

Financial year 2020

Financial year 2019

26 5244276: 7/ .<97:

Expenses arising from business combinations (fees, commissions, etc.)

-3.1

-3.3

Net restructuring and reorganisation costs Integration and reorganisation of activities p

-44.6

-31.6

-6.6

-1.3

Separation costs p Asset impairment

-38.0

-30.3

-3.6 -7.5

-

Other operating expenses

-1.3

Total other operating expenses

-58.9

-36.2

Other operating income

- -

5.2 5.2

Total other operating income

(#(

Other operating income and expenses for 2020 consisted of: (i) the expenses and income usually recognised within this line item and comparable to those recorded in 2019; and (ii) costs resulting from the consequences of Covid-19 for €15.6 million. The amount of item (i) comprised the restructuring costs of business reorganisations carried out mainly in the United Kingdom, France and Germany for €37.1 million (€8.2 million, €15.1 million and €8.1 million respectively) of which €33.8 million related to resource adjustments and €3.3 million to reorganisation costs of premises and activities. It also included €5.3 million impact of the 21 October cyberattack, and the positive €4.7 million impact of a reversal of a provision for tax risks other than income tax. In 2019, for comparison, the Group reorganised its activities, mainly in France (€7.4 million), in Consulting and Systems Integration, at Sopra Banking Software (€5.2 million), in Spain (€4.1 million) and in Germany (€4.6 million). This essentially comprised expenses related to resource adjustments.

It is supplemented by certain costs generated by the coronavirus crisis. The Group decided to implement certain restructuring measures for €4.3 million in 2020, mainly in India, Sweden and Spain. In addition, it also decided to restructure certain activities on which the crisis has had a significant, lasting impact, such as the aeronautics sector, and for certain concerned staff it implemented upskilling plans to eventually reassign them to positions outside the scope of their initial training and less impacted by the crisis. The costs of these measures came to €3.3 million in 2020, mainly in France. The additional logistics and social costs described in Note 1.3 as a result of the crisis came to €3.2 million and €2.4 million, respectively. These are included in Other operating expenses . Finally, asset impairment charges represented €3.6 million, including €2.5 million due to the crisis (see Note 1.3), related to the operating licence for the Visa project in the United Kingdom. These impairment charges were recognised within Other operating expenses .

EMPLOYEE BENEFITS AND SHARE-BASED PAYMENTS NOTE 5

Staff costs 5.1.

Financial year 2020

Financial year 2019

26 5244276: 7/ .<97:

Wages and salaries

-2,027.1

-1,999.5

Social security contributions

-636.6

-631.7

Net expense for post-employment and similar benefit obligations

-14.0

-37.3

(#(

Furlough measures were implemented as a result of the Covid-19 crisis in various countries where the Group has operations. The amounts received from various governments were recognised as a deduction to personnel expenses and amounted to €10.8 million. The Group’s management decided to supplement the indemnities paid by certain governments under staff furlough measures in order to maintain the salaries of the affected personnel. The cost of this decision amounted to €4.6 million. The Group recognises the amount of short-term employee benefits, as well as the contributions due in respect of its pension plans, under Staff costs. As the Group has no commitments beyond these contributions, no provisions are recognised for these plans. The principles applicable to post-employment benefit expenses and similar items are presented in Note 5.3.2 for other long-term employee benefits and Note 5.3.1 for post-employment benefits.

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SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2020