Sopra Steria - 2020 Universal registration document

1 BUSINESS OVERVIEWAND STRATEGIES Digital services market

Digital services market 3. Main markets – Competitive environment of the digital services sector 3.1. In 2020, the digital services market in Western Europe was worth an estimated $265.6 billion (1) , down 4.7% (2) due to the Covid-19 pandemic. Gartner predicts a rebound to $282.4 billion in 2021.

DIGITAL SERVICES MARKET IN WESTERN EUROPE (EXCLUDING HARDWARE AND SOFTWARE) ❙

Country 26 +244276: 7/ -744*9:

2021 estimates

France

37.8 77.3 50.7

United Kingdom

Germany

Rest of Europe

116.6

(#(

Source: Gartner, updated Q4 2020.

According to market research, in 2020 the market (1) contracted by trend should continue over the next few years, with market growth 5.4% (2) in France, 4.5% in Germany and 3.8% in the United in Western Europe estimated at around 5% per year on average Kingdom. For 2021, an upturn is expected, amounting to 4% in (2021-2024). France, 3.1% in Germany and 1.8% in the United Kingdom. This

DIGITAL SERVICES MARKET IN WESTERN EUROPE (EXCLUDING HARDWARE AND SOFTWARE) ❙

Business 26 +244276: 7/ -744*9:

2021 estimates

Consulting

61.1 72.2

Development and systems integration

Outsourced IT services

117.5 31.6

Business process outsourcing

(#(

Source: Gartner, updated Q4 2020.

In terms of businesses segments, consulting was down 7.6% (2) in 2020 and implementation services fell 6.0%. Other activities proved more resilient: outsourced and cloud services fell 3.1% and business process outsourcing fell 2.1%. For 2021, Gartner predicts upturns of 3.0% in consulting, 3.9% in implementation services and 3.0% in outsourced and cloud services. Business process outsourcing is expected to remain stable. The European market has two main characteristics: three countries (the United Kingdom, Germany and France) p account for 59% of IT services spending (1); outsourcing of technology services (application maintenance and p infrastructure management) and business process outsourcing together account for a little over half of IT services spending by European companies (1) . Furthermore, the IT services market remains fragmented despite some consolidation, with the leading player in the European market

holding less than a 10% share. Against this backdrop, Sopra Steria is one of the ten largest digital services companies operating in Europe (excluding captive service providers and purely local players). Its market share stands at over 5% in France and currently averages between 0.5% and 1% in the other major European markets. Sopra Steria’s main competitors in Europe are: Accenture, Atos, Capgemini, CGI, DXC and IBM, all of which are present worldwide. It also faces competition from Indian groups, chiefly in the United Kingdom (such as TCS, Cognizant, Wipro and Infosys), and local companies with a strong regional presence (Indra in Spain, Fujitsu in the United Kingdom, Tieto/Evry in Scandinavia, etc.). Apart from its services business, listed rivals such as Temenos and Alfa Financials also command a significant presence in the software market, where Sopra Steria is also present, especially in banking.

Source: Gartner report, updated Q4 2020 (1) Growth calculated at constant US dollars (2)

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SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2020