Sopra Steria - 2020 Universal registration document
6 2020 PARENT COMPANY FINANCIAL STATEMENTS Company description
Company description 1.
Sopra Steria Group is the parent company of the Sopra Steria group. Its registered office is located at 3 Rue du Pré Faucon in Annecy-le-Vieux (France), where its consolidated financial statements may be consulted. It performs a number of roles: it operates as a holding company, holding financial interests p through which it has direct or indirect control over Group companies;
It implements the Group’s funding policy, and as such ensures that the funding requirements of its subsidiaries are met. It also centrally manages market risks to which it and its subsidiaries are exposed. it operates in consulting, systems integration, software and other p solutions mainly delivered in France.
Significant events 2.
Impact of the Covid-19 crisis 2.1. The Covid-19 pandemic has caused major operational difficulties in terms of business continuity, organisational adaptation, personal health and safety and compliance with public health measures. It has had an impact on the entity’s parent company financial statements and the Group’s consolidated financial statements, as well as on the estimates it uses to measure certain assets, liabilities, income and expenses, and on liquidity risk. In terms of the presentation of the financial statements, the entity’s and the Group’s performance was broadly affected across all the lines of its income statement. In France, neither the Autorité des Marchés Financiers (AMF) nor the Autorité des Normes Comptables (ANC) recommend using non-recurring profit or loss line items to systematically recognise the consequences of Covid-19. Instead, they recommend providing a targeted line-by-line explanation in the notes, and only using non-recurring profit or loss line items to recognise the income and expenses that are usually recorded there. As such, the Company recognised the entire impact of operations not running at full capacity due to the crisis within Operating profit . This impact included the suspension or discontinuation of contracts with customers, partially offset by a reduction in staff costs related to the implementation of furlough measures and by the reduction in certain expense items, such as travel expenses. Moreover, it implemented reorganisation and restructuring measures, the impact of which was recognised within Exceptional income and expenses (see Note 4.4), in addition to the measures that had already been decided upon prior to the crisis. Lastly, the Company incurred additional logistics costs to allow employees to work remotely and to address the health-related issues – social distancing in particular – at all of its offices. These non-recurring, unusual additional costs were also treated as exceptional items (see Note 4.4).
The crisis has also affected the estimates the Company uses to measure certain assets, liabilities, income and expenses. In particular, this is mainly relevant and decisive for the assumptions and estimates used to measure the recoverable amount of intangible assets (primarily goodwill and technical merger losses) and non-current financial assets. Impact of the cyberattack 2.2. On 21 October 2020, the Company announced it had detected a cyberattack using a previously unknown version of the Ryuk ransomware. This attack was rapidly blocked thanks to in-house IT and cybersecurity teams. The Company also immediately took measures to contain its spread and launch a remediation plan. Additional information on the accounting treatment is provided in Note 4.4. Acquisition of the Sodifrance 2.3. group The Company acquired the entire share capital of the Sodifrance group for €60.502 million during the financial year. The acquisition was completed in two stages: on 16 September 2020, it bought a 94.03% controlling interest p in the share capital; during November, it purchased the 5.97% free float after filing a p simplified public tender offer on 5 October 2020.
SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2020
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