Sopra Steria - 2020 Universal registration document

5 2020 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

FINANCING AND FINANCIAL RISK MANAGEMENT NOTE 12

Financial income and expenses 12.1. Cost of net financial debt 12.1.1.

Financial year 2020 Financial year 2019

26 5244276: 7/ .<97:

Interest income

1.4 1.4

2.7 2.7

Income from cash and cash equivalents

Interest expenses

-10.4

-11.4

Gains and losses on hedges of gross financial debt

-0.9

-1.2

Cost of gross financial debt #'( # " ( " " (

-11.3

-12.6

Medium-Term Notes) was €691 million in 2020, versus €828 million in 2019. The average cost of borrowing after hedging was 1.64% in 2020 (1.52% in 2019). This increase in the average cost of borrowing resulted in part from the decrease in the amount of NEU CP and new issues of NEU MTN, as well as from the combined decrease in the interest rates and balance on the

The €1.3 million decrease in interest income resulted from the lower average balance of investments in India (€29.7 million in 2020, versus €37.1 million in 2019) and from the lower rate of returns (3.8% in 2020 versus 6.2% in 2019). The Cost of gross financial debt (€11.3 million) was down by €1.3 million. The average amount of debt outstanding in respect of bank borrowings, bonds, NEU CP (Negotiable European Commercial Paper) and NEU MTN (Negotiable European Other financial income and expenses 12.1.2.

syndicated loan.

Financial year 2020 Financial year 2019

26 5244276: 7/ .<97:

Foreign exchange gains and losses

0.5 0.6 -7.6 -4.2 -0.9

0.1 0.9 -9.9 -6.9 -0.9 -0.0

Other financial income

Net interest expense on lease liabilities

Net interest expense on retirement benefit obligations Expense on unwinding of discounted non-current liabilities

Change in the value of derivatives

0.7 0.0

Gain or loss on disposal of financial assets

2.7

Other financial expenses

-4.4

-0.5

Total other financial expenses

-16.4

-15.7

(#( #( & " " " #! " ,$ "' '

Other financial expenses include the impairment of securities for €3.3 million.

200

SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2020