Sopra Steria : 2020 Corporate Responsibility Report

Sopra Steria committed to a more sustainable & responsible world

CORPORATE RESPONSABILITY REPORT

EXTRACT FROM UNIVERSAL REGISTRATION DOCUMENT - 2020

* Le monde est tel que nous le façonnons.

MESSAGE FROM THE CHAIRMAN

Message from the Chairman

At the same time a year ago,

Sopra Steria had successfully reached several key milestones in the implementation of its corporate plan. We had met our annual earnings targets, and were resolutely adopting a medium-term perspective as we looked at ways of speeding up our development and confirming the performance trajectory that we had set for ourselves.

But this vision was swiftly disrupted as the Covid-19 virus took hold, triggering a serious economic crisis. The pandemic-related restrictions caused a wholesale drop in demand, especially in aerospace and railways, sectors in which Sopra Steria has a very strong presence. Conversely, our Group gained real traction in defence and broadly across the public sector, where we also have strong positions.

Amid these challenging conditions, our top priorities were keeping our employees safe and safeguarding service delivery for our clients. We also took steps to protect our skills base and jobs, even in the most severely affected sectors of activity.

The effects of the Covid-19 crisis were compounded late in the year by the steps we had to take to defend ourselves against the cyberattack that targeted our Group. While the attack was rapidly detected and our clients' security maintained, some of our information and production systems remained down for several weeks as a result of the remedial measures we took.

Despite the challenges, our results - both in terms of revenue and operating margin - reflect our impressively high level of resilience in 2020. Sopra Steria also generated strong cash flow, helping to cut the Group's net financial debt by 17.2%.

Even though major uncertainties remain at the start of the current year, Sopra Steria intends to build on its strong foundations and accelerate the execution of its strategic plan in 2021. The priorities are to bolster our consulting business and press ahead with digitalising our transformation solutions. In the banking sector, we will step up our drive to harness

"Sopra Steria intends to build on its strong foundations and accelerate the execution of its strategic plan in 2021."

Pierre Pasquier

Chairman and Founder of Sopra Steria Group

synergies between the software, consulting, integration and service businesses.

We will also push forward with an aggressive, but targeted acquisitions policy.

From the current year, we anticipate renewed organic growth in our business and an improvement in our operating margins.

Over the medium term, we confidently expect to be able to execute an ambitious, independent and value-creating corporate plan for all our stakeholders. This plan brings together employees, shareholders and partners, and targets a high level of business performance, while making a sustainable, human, purposeful contribution to society.

HISTORY AND CORPORATE PLAN

History and corporate plan

More than 50 years of continuous growth and transformation

IT services driving the modernisation of society

1968-69

Creation of Sopra: 1968

Creation of Steria: 1969

2014

Creation of Sopra HR Software

2014

Sopra Steria: birth of a European leader in digital transformation

2013

SSCL contract with the UK government

A new dimension, focused on our development and competitive edge

2015

Acquisition of CIMPA

Sopra Steria was formed from the 2014 merger between Sopra and Steria, two of France's longest-standing digital services companies founded in 1968 and 1969 respectively. Both companies have always been driven by entrepreneurial spirit and a collective commitment to meeting clients' needs. The Group is now a European leader in digital transformation solutions.

Key points of the corporate plan

An independent model

An independent model built on long-term vision and business performance, upholding the Group's responsibilities to the environment and to its stakeholders as a good corporate citizen.

1985

Driving digital transformation

2012

Creation or Sopra Banking Software

2017

Acquisitions of Cassiopae, Kentor, 2MoRO and Galitt

Entrepreneurial culture

Agility, rapid decision-making, and speed of execution are hard-wired into Sopra Steria's DNA. Our ethos is predicated on an unwavering focus on client service, autonomous decision-making, collective endeavour and respect for others.

A core shareholder backing the corporate plan

French institutional investors 29.4%Individual and other investors 11.6%

Treasury shares 0.2%

International institutional investors 30.2%

Financial performance at the heart of strategy

1990

Sopra's IPO on NYSE Euronext Paris

2011

Axway's IPO

2018

Acquisitions

• - BLUECARAT and It-Economics in Germany

• - O.R. System and Apak by Sopra Banking Software

1999 2000

Steria's IPO on NYSE Euronext Paris

2007 2005

Acquisition of Xansa, BPO expert

2019

• - Acquisition of SAB and SFT (JV with Sparda)

• - Launch of the Consulting brand: Sopra Steria Next

Importance of human capital

A rigorous talent-focused human resources policy combining strong collective mindset and the development of employees' skills.

Controlled share ownership and interests managed on behalf of employees 28.6% (42.1%)

Acquisition of Mummert Consulting

2020

Acquisitions

• - Sodifrance and cxpartners

• - Fidor Solutions for Sopra Banking Software

See Chapter 1 for more information

20,547,701 listed shares 26,583,239 exercisable voting rights XX.X% = percentage of share capital held

(XX.X%) = percentage of exercisable voting rights

TPI survey of identifiable owners of shares at 31/12/2020 - Ownership threshold of over 1,000 shares

See Chapter 7 for more information

INTEGRATED PRESENTATION OF SOPRA STERIA

OUR MISSION AND VALUES

Our mission and values

Our mission

Technology serves as a gateway to infinite possibilities.

As fascinating as this never-ending stream of innovations is, it also raises questions as to what is actually behind the frantic race for novelty and change.

Solutions are never straightforward or obvious, and there is certainly never just one way of doing things.

At Sopra Steria, our mission is to guide our clients, partners and employees towards bold choices to build a positive future by putting digital technology to work in service of humanity.

Beyond technology, we set great store by collective intelligence, in the firm belief it can help make the world a better place.

Values that bring us together

Putting customer service first

Professional excellence

Putting customer service first

We make a commitment to our clients over the long term to enhance their performance and enable them to reach the next level by leveraging our specialised knowledge of their sector of activity and innovative technologies.

Professional excellence

We offer our visionary, integrated approach and our broad range of expertise to help guide our clients, partners and employees towards bold choices and convert opportunities into tangible, sustainable results.

Respect for others

Together, we are building a highly promising future by delivering tangible benefits: sustainable solutions with positive impacts that take full account of interactions between digital technology and society.

There's still so much more we can achieve together.

Dare together

At Sopra Steria, we strive to create a stimulating, group-oriented environment inspiring free thinkers to engage in open and frank discussions. Our goal is to foster the development of skills and entrepreneurship in a community driven by a thirst for collective success.

Taking positive actionCollective mindset

Respect for others

Openness and curiosity

Taking positive action

Our core belief is that our collective endeavour makes us stronger, and that by working together we can find the best solutions. That's why we always listen carefully to and forge close relationships with our clients, partners and employees.

Collective mindset

We believe collective intelligence, harnessing team spirit and each individual's talents, can help drive positive change and make the world a better place in a sustainable manner, exceeding what technologies alone can do.

We want to make innovation deliver results for as many people as possible and offer sustainable solutions with a positive impact that responsibly and ethically shape interactions between digital technology and society.

Openness and curiosity

We encourage a bold, curious and accountable approach and seek to explore new avenues and employee innovative new technologies that can deliver transformative changes for everyone's benefit.

SOPRA STERIA

UNIVERSAL REGISTRATION DOCUMENT 2020

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