2012 Registration document (cid:206) www.steria.com Contents 1 4 Presentation of the Group 2 Risk factors 100 1.1 Group profi le 4 4.1 Risks linked to business activity 102 1.2 History of the Group 9 4.2 Legal risks 107 1.3 Markets – Competitive environment 10 4.3 Financial risks 108 1.4 Groupe Steria’s businesses 12 4.4 Risk management policy 111 1.5 The delivery model 15 4.5 Risk coverage - Insurance 112 1.6 Clients 16 5 1.7 Innovation – Research and Development 18 Review of fi nancial position and results 114 1.8 Strategy 20 1.9 Group organization 23 5.1 Activity Report 116 2 5.2 Consolidated fi nancial statements for the year ended December 31, 2012 123 Corporate governance 26 5.3 Statutory auditors’ report on the consolidated fi nancial statements 185 2.1 A governance model involving employee shareholders 28 5.4 Statutory fi nancial statements for the year ended December 31, 2012 186 2.2 Two types of partners 29 5.5 Statutory auditors’ report on the fi nancial 2.3 Management and control bodies 31 statements 214 2.4 Remuneration and benefi ts granted 6 to management and control bodies 32 2.5 Other information relating to the Company’s General Information – share capital 216 directors 39 2.6 Report of the Chairman of the Supervisory 6.1 Legal information concerning the Company 218 Board on corporate governance, internal 6.2 Share capital 220 control and risk management 46 6.3 Shareholder structure 231 2.7 Statutory Auditors’ report , prepared 6.4 Preparation and control of the Registration in accordance with Article Document and the information presented 237 L. 226-10-1 of the French Commercial Code 6.5 Declaration by the person responsible on the report prepared by the Chairman for the Registration Document 238 of the Supervisory Board of Groupe Steria SCA 62 2.8 Statutory Auditors’ Special report on related 7 party agreements and commitments 64 Cross-reference table 240 3 Appendix 1 of European Regulation 809/2004 242 Corporate responsibility 66 Annual fi nancial report 246 3.1 Corporate responsibility, an integral General Manager’s report 247 part of the Group’s culture and strategy 68 Social, environmental and corporate social 3.2 Governance and organization 68 information 249 3.3 Social policy 71 8 3.4 Environmental policy 86 Articles of association of Groupe 3.5 Corporate social policy 94 Steria SCA 254 Registration Document 2012 This Registration Document was filed with the French securities regulator (AMF or Autorité des marchés financiers) on 21/03/2013, in accordance with Article 212–13 of the AMF General Regulations. It may be used to support any financial transaction if it is supplemented by a prospectus approved by the AMF. This document was prepared by the issuer and engages the responsibility of its signatories. Pursuant to Article 28 of European Commission directive EC 809/2004, the following information is referred to in this Registration Document: (cid:122) the management report, the consolidated and statutory financial statements and the corresponding Statutory Auditors’ reports relating to agreements referred to in Article L. 226-10 of the French Commercial Code and concluded by Groupe Steria SCA for fiscal year 2010 as presented on pages 93 to 179 (inclusive) and 56 to 58 (inclusive) of the Registration Document, filed with the AMF on April 15, 2011, under reference no. D.11-0308; (cid:122) the management report, the consolidated and statutory financial statements and the corresponding Statutory Auditors’ reports relating to agreements referred to in Article L. 226-10 of the French Commercial Code and concluded by Groupe Steria SCA for fiscal year 2011 as presented on pages 103 to 195 (inclusive) and 60 to 61 (inclusive) of the Registration Document, filed with the AMF on April 11, 2012, under reference no. D.12-0326. The parts not included in these documents are of no interest to investors, or they are covered in another section of the Registration Document. The aforementioned Registration Documents may be consulted on the AMF website (www.amf-france.org) or on the issuer’s website (www.steria.com). www.steria.com Steria - Registration Document 2012 1 1 “ Presentation of the Group 2 Steria - Registration Document 2012 www.steria.com 1 Presentation of the Group Contents 1 1.1 Group profi le 4 1.6 Clients 16 Corporate governance 1.6.1 Clients by geographic area 16 on December 31, 2012 8 1.6.2 Clients by business sector 17 1.2 History of the Group 9 1.7 Innovation – Research and Development 18 1.3 Markets – Competitive 1.7.1 Approach to Innovation – Research and Development 18 environment 10 1.7.2 Horizon Scanning 18 1.7.3 Innovation Centers 19 1.4 Groupe Steria’s businesses 12 1.7.4 Collaborative Innovation 20 1.4.1 Consultancy 12 1.4.2 Systems Integration 12 1.8 Strategy 20 1.4.3 Application maintenance 13 1.8.1 Stages in the construction of the Group 20 1.4.4 Management of IT infrastructure 13 1.8.2 A highly-focused strategy 21 1.4.5 Business Process Outsourcing (BPO) 13 1.8.3 A strategy based on industrial-level 1.4.6 Changes in the breakdown of revenue service provision 21 by core business 14 1.8.4 A strategy based on differentiation 22 1.5 The delivery model 15 1.9 Group organization 23 Pooled onshore, nearshore and 1.9.1 Group operational organization 23 offshore production centers 15 1.9.2 Group legal organization 25 An integrated model 15 High production and quality standards 15 An active partnership policy 15 Steria - Registration Document 2012 3 1 Presentation of the Group Group profile (cid:206) 1.1 Group profile Consolidated results over the past three years Organic growth at constant exchange 2011 rates and scope of 2010 2011 Reported Restated (1) 2012 consolidation Revenue €m 1,692.7 1,747.7 1,705.4 1,827.2 2.4% Operating margin (2) €m 120.4 129.9 133.6 117.4 % of revenue % 7.1% 7.4% 7.8% 6.4% Operating income (3) €m 81.6 81.9 87.5 72.6 Attributable net income €m 43.5 55.0 55.0 35.6 % of revenue % 2.6% 3.1% 3.2% 1.9% Underlying attributable (4) net income €m 71.7 90.5 94.6 79.7 Underlying diluted earnings (4) per share € 2.21 2.73 2.85 2.36 Shareholders’ equity €m 721.2 766.4 766.4 815.0 Net financial debt €m 101.2 125.9 125.6 143.0 (1) After taking into account IFRS 5 – Non-Current Assets Held for Sale and Discontinued Operations in relation to the sale of the Spanish business. (2) Before amortization of intangible assets related to business combinations. Operating margin is the key Group indicator. It is defined as the difference between revenue and operating expenses, these being equal to the total cost of service provided (expenses required to carry out projects), marketing costs, and general and administrative expenses. (3) Operating income includes, in particular, restructuring and reorganization costs, capital gains or losses on disposals, the estimated fair value of share-based payments, and the impact of impairment tests on goodwill and actuarial gains or losses recognized in connection with the reporting (corridor method) of retirement benefit obligations. (4) Restated attributable net profit, after tax, on other operating income and expenses, amortization of assets and unrecognized deferred tax assets 4 Steria - Registration Document 2012 www.steria.com 1 Presentation of the Group Group profile (cid:206) Group profile Revenue by country in 2012 Revenue over the last three fi nancial years (in millions of euros) 1 14% 1,827 1,693 1,748 40% 13% 2010 2011 2012 33% UK France Germany Rest of Europe Operating margin (1) over the last three fi nancial years Revenue by business line in 2012 (in millions of euros) 11% 130 120 117.4 7.4% 7.1% 6.4% 30% 43% 2010 2011 2012 16% (*)  Before amortization of intangible assets identified in relation to business combinations. Consulting and Systems Integration Applications Maintenance IT infrastructure management Business Process Outsourcing Balance sheet items over the last three fi nancial years Revenue by business sector in 2012 (in millions of euros)) 8% 981 923 868 815 723 766 39% 30% 101 126 143 2010 2011 2012 23% Capital used Equity Public sector Net financial debt Finance Energy - Utilities / Telco - Media / Transport Others a Steria - Registration Document 2012 5 1 Presentation of the Group Group profile Group sites and workforce at December 31, 2012 Norway 696 Sweden 116 Denmark 176 UK 4,376 France 6,437 Belux 248 Germany 1,775 Hong Kong India 5,338 Morocco 72 Singapore 44 Switzerland 152 Poland380 Austria2 19,812 16 Group working Group sites Average number of employees over the last three fi nancial years (1) 20,306 20,565 19,017 2010 2011 2012 (1) The data presented above are taken from the new Human Resources information system. 6 Steria - Registration Document 2012 www.steria.com 1 Presentation of the Group Group profile Information on capital and changes in the share price Changes in underlying earnings per share (in euros) Breakdown of capital at December 31, 2012 over the last three fi nancial years 1 20.5% 2.72 2.36 2.19 22.7%* 56.7% 0.1% 2010 2011 2012 Institutional Treasury stock Employees* Individual investors and not allocated (*) o/w “SET Trust” and “XEBT Trust” (4.15% of capital). These trusts are subject to English law, and the purpose of their assets is to promote employee shareholding. Stock market capitalization since June 1999 (in millions of euros) – price on 26 February 2013 927 846 735 761 748 703 580 617 593 582 612 539 514 537 539 507 530 494 453 406 453 431 373 376 284 300 170 198 227 9 9 0 0 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 0 0 1 1 2 2 3 9 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 9 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. Feb. Source: FACSET. Change in stock price since June 2002 (in euros) – price on 26 February 2013 50 40 30 20 10 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: FACSET. Steria - Registration Document 2012 7 1 Presentation of the Group Group profile Corporate governance on December 31, 2012 General Manager: − François Enaud Group Executive Committee: Supervisory Board: − François Enaud − Jacques Bentz General Manager, Groupe Steria SCA Chairman of the Board, Manager of Tecnet Participations − Laurent Lemaire − Éric Hayat Senior Executive Vice-President, Group Financial and Group Vice-President of the Board, Chairman of the Public Interest Group, Transformation Director modernization of Social Security declarations − John Torrie − Léo Apotheker Senior Executive Vice-President, General Manager, United Company Director Kingdom, with responsibility for Asia − Patrick Boissier − Olivier Vallet Chairman and CEO of DCNS Senior Executive Vice-President, General Manager, France, with − Séverin Cabannes responsibility for the supervision of Belux Deputy CEO of the Société Générale Group − Karine Brunet − Élie Cohen Executive Vice-President, General Manager, Groupe Steria global Economist, Research Director at CNRS, Professor at Sciences PO CAE services and industrialization − Bridget Cosgrave − Amaury Houdart Founder and Chairman of EveryEuropeanDigital (EED) Executive Vice-President, Group Human Resources and Employee − Pierre Desprez Shareholding Director Chairman of FCPE Steria and a Steria employee − Patricia Langrand − Pierre-Henri Gourgeon Executive Vice-President, General Manager, Marketing, Chairman of PH Gourgeon Conseil Communication, and Innovation, with responsibility for − Laetitia Puyfaucher coordinating and developing Group offerings CEO of Pelham Media − Fritz Möser Executive Vice-President, General Manager, Germany − Kjell Rusti Executive Vice-President, General Manager, Scandinavia − Sanjeev Varma Executive Vice-President, General Manager, India Statutory Auditors: General Partner: − ERNST & YOUNG et Autres − Soderi SAS Tour First Representing employee shareholders of the Group 1, Place des Saisons TSA 14444 92037 Paris La Defense cedex SAS with variable capital Statutory Auditors Member of the Versailles regional chapter − PricewaterhouseCoopers Audit 63, rue de Villiers 92208 Neuilly-sur-Seine Cedex SA with capital of €2,510,460 Statutory Auditors Member of the Versailles regional chapter 8 Steria - Registration Document 2012 www.steria.com