Sopra Steria - 2020 Universal registration document

5 2020 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Leases Leases are recognised in the balance sheet at the lease commencement date, which corresponds to the date at which the lessor makes the underlying asset available to the lessee, and results in the recognition of a balance sheet asset within Right-of-use assets and a liability within Lease liabilities . The value of lease liabilities corresponds to the present value of minimum future payments, discounted over the lease term using either the interest rate implicit in the lease or otherwise the incremental borrowing rate of the entity leasing the asset. The lease term chiefly reflects the non-cancellable period of the lease. The Group may adjust it, where it consider this to be reasonable, to reflect the period of a renewal or an extension option, which could be exercised, or an early termination option, which could be invoked where the corresponding penalties (contractual penalties and economic costs of doing so) would be more than negligible. At the lease commencement date, the value of the right-of-use asset recognised in the balance sheet corresponds to the lease liability adjusted for any initial direct costs incurred in obtaining the lease, prepaid lease payments, incentives received from the lessor at that date, or costs to be incurred by the lessee in dismantling and removing the underlying asset. Minimum future payments include fixed lease payments, variable lease payments that depend on an index or a rate, residual value

guarantees, the exercise price of a purchase option, and termination or non-renewal penalties if the Group is reasonably certain to exercise or not exercise these options. Some of these values may change over the term of the lease, in which case the values of lease liabilities and right-of-use assets are revised upward or downward. They do not include any service components that may be included in the lease, which continue to be recognised as expenses. In the balance sheet, Lease liabilities are split out into non-current and current portions. Right-of-use assets are amortised on a straight-line basis over the lease term or the useful life of the underlying asset if the lease transfers ownership of the asset to the lessee, or if the lessee is reasonably certain of exercising a purchase option. In the income statement, these amortisation expenses are included within Depreciation, amortisation, provisions and impairment under Operating profit on business activity. The Net interest expense on lease liabilities is split out from the line item Other financial income and expenses. Finally, as an exception, short-term leases (lease term of 12 months or less) and leases of low-value assets (individual value less than 5,000 USD) are directly recognised as expenses and are therefore not restated in the balance sheet. Variable lease payments are also recognised as expenses according to the use or revenue generated by the use of the underlying asset.

Breakdown of lease liabilities by maturity 9.2.

Breakdown of non-current portion

More than 5 years

Carrying amount Current

Non- current

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

26 5244276: 7/ .<97:

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Net profit from associates 10.1.

% held at 31/12/2020

% held at 31/12/2019



26 5244276: 7/ .<97:

Share of net result of Axway Software


32.38% 66.67%



Share of net result of Holocare







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