Sopra Steria - 2020 Universal registration document

6 2020 PARENT COMPANY FINANCIAL STATEMENTS Notes to the income statement

Staff costs and employee 4.2. benefits

' % ' $'" # ( ' %! #(

(G G!$# ) '" # #) + At the Combined General Meeting of Sopra Steria Group on 12 June 2019, the shareholders authorised the Board of Directors to award free performance shares in the Company to employees and/or executive company officers, for up to a maximum of 3% of the Company’s share capital on the date on which the Board of Directors decides to make the award. At maturity, the Board of Directors may decide whether to issue new shares or buy back existing shares to fund these plans. Performance shares are delivered to recipients provided they meet the requisite presence and performance conditions on conclusion of the vesting period. Performance conditions are measured by changes over three years in operating profit on business activity, consolidated revenue and consolidated free cash flow. In 2020, two multi-year free performance share plans – known as the 2017 and 2018 LTI (long-term incentive) plans – were in force. The 2017 LTI plan expired in March 2020.

"%!$. %'$ ) ( ' # # G # #) + ( The amount of legally prescribed employee profit-sharing was nil in financial year 2020, since net taxable profit equated to less than 5% of equity. As such, this item only comprised an expense relating to employee incentives for a total of €3.112 million..

Plan Sopra Steria

Plan LTI 2017 (1)

Plan LTI 2018 (1)

Date of General Meeting

22/06/2016 24/02/2017 25/10/2017

22/06/2016

Date granted by the Board of Directors

16/02/2018

Total number of shares in awards granted, not subject to conditions

109,000

128,000

Number of shares granted to: Company officers p Top ten employee grantees p

3,000

3,000

20,000

21,000

Vesting date France p

31/03/2020 31/03/2020

31/03/2021 31/03/2021

Other countries p

Number of potential shares that could have been granted as at 1 January 2020

63,937

78,572

Granted in 2020

-

-

Awards cancelled in 2020 Vested at 31/12/2020

4,205

10,892

59,732

-

' & ' & ! " " ( C ! &

Plan with conditional grant depending on the recipient’s continued employment and performance conditions as measured by changes over three years in operating profit on business activity, (1) consolidated revenue and consolidated free cash flow.

The actual staff expense is not recognised until the date shares p are delivered under the plan. This expense is measured at the purchase cost of the vested free shares. For multi-year plans contingent upon performance and/or p presence conditions, a provision for contingencies is set aside on a straight-line basis over the vesting period in recognition of the probable outflow of resources when the decision or

intention to award shares bought back is established. This provision is reassessed at each balance sheet date taking into account the opening cost of the shares on the date they were assigned to the plan or the cost of shares yet to vest, measured on the basis of the share price at the balance sheet date, and the probability that the plans will be implemented at the stated

terms.

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SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2020