Sopra Steria

Sopra Steria's Business Model and Value Chain

Our Vision

The digital revolution has triggered a radical transformation in our environment. It is speeding up changes in our clients' business models, internal processes and information systems. In this fast-changing environment, we bring our clients new ideas and support them in their transformation by making the most effective use of digital technology.

Our Business

Sopra Steria provides end-to-end solutions to address the core business needs of large companies and organisations, helping them remain competitive and grow, supporting them throughout their digital transformation in Europe and around the world.

End-to-end Approach

Our approach encompasses:

• Advise: Strategic analysis and programme definition
• Develop: Implementation and IT infrastructure transformation
• Operate: Managing and operating systems and services
• Secure: Cybersecurity across all operations

Shifting from Service-based Approach to High Value-added Offers

Embedding consulting into our value proposition

Comprehensive response to our customers' transformation needs

Expanding in digital platform management

• Cloud and associated infrastructure services

Ramping up in next-generation technologies

• Cloud
• AI
• Data
• Emerging technologies

Solutions

• SAP S/4HANA
• ServiceNow
• Related salesforce

Stepping up Cybersecurity

• Prevention
• Protection
• Detection & Response

The Value Creation Model

Sopra Steria's DNA

Entrepreneurial culture, close customer relationships, sense of commitment and corporate responsibility

Innovation & Technology

Cloud, Data, AI, Blockchain, Cybersecurity, Mobility, 5G, IoT

Our Culture and Resources

• Employees, strategic partners, startups, schools and universities
• Suppliers and subcontractors

Business/technology Expertise - End-to-end Approach

Extensive range of offers

Focus on Major Clients

• 8 priority verticals
• Targeted business areas

Strategic Positioning

Sopra Steria is keen to establish itself as a European leader in digital services and position itself as a trusted, credible European alternative to global operators. The Group is developing and strengthening its foothold in four strategic markets (Public Sector, Financial Services, Defence & Security, Aerospace), where issues relating to sovereignty and responsible digital technology are becoming increasingly critical in Europe.

Business Lines

Consulting and Systems Integration – 68% of 2024 Revenue

Consulting – 9% of 2024 revenue Sopra Steria Next, the Group's consulting brand, has over 40 years' experience in business and technological consultancy for large companies and public bodies, with over 3,500 consultants in France and Europe.

Systems Integration – 59% of 2024 revenue Systems integration is Sopra Steria's original core business and covers all aspects of the information system life cycle and major transformation programmes.

Digital Platform Services

With over 30 years' experience and a team of over 6,500 infrastructure and cloud experts around the world, Sopra Steria offers solutions tailored to clients' needs.

Cybersecurity Services

With over 2,200 experts and several state-of-the-art cybersecurity centres in Europe and worldwide, Sopra Steria has an international reach as a European leader in protecting critical systems.

Development of Business Solutions – 6% of 2024 Revenue

Sopra Steria offers business expertise via packaged solutions in three areas: banks and other financial institutions, human resources, and real estate.

Business Process Services – 15% of 2024 Revenue

Sopra Steria offers a full range of business services and business process services (BPS) solutions incorporating next-generation technologies such as AI, hyperautomation, robotics and natural language processing.

Vertical Markets

Sopra Steria has chosen eight major vertical markets that constitute its areas of excellence and make up 89% of revenue:

• Financial Services – 16% of 2024 revenue
• Public Sector – 26% of 2024 revenue
• Aeronautics, Space, Defence & Security – 22% of 2024 revenue
• Energy and Utilities – 6% of 2024 revenue
• Telecoms, Media & Entertainment – 4% of 2024 revenue
• Transport – 7% of 2024 revenue
• Insurance – 4% of 2024 revenue
• Retail – 4% of 2024 revenue

Stakeholder Engagement and Interests

Main Stakeholders and Value Creation

Sopra Steria's value creation model addresses the needs and interests of its main stakeholders:

Clients

Over 80% satisfaction rate of our 100 strategic clients according to the Customer Voice survey. The Group's commitment is being a long-lasting partner, meeting their needs as effectively as possible by providing them with the best technology as part of a responsible and sustainable value-creating approach.

Annual "Customer Voice" satisfaction survey: The Group continued its annual satisfaction survey of its top 100 strategic clients across the Group with the aim of fostering, organising and sustaining high-quality, trust-based dialogue with clients. More than 650 interviews were conducted with clients in 2024. The qualities highlighted during interviews revolve around expertise, listening, proactivity, partnership, engagement and professionalism.

Client Advisory Board: The "France" reporting unit made progress with the Client Advisory Board initiative alongside a dozen core strategic clients to share progress made by its transformation programme and work on areas of common interest.

Employees

• Attrition rate: 14.1%
• 30% of the Group's employees (including 48.2% of employees in France) owned shares in the Group through an employee share ownership plan at 31/12/2024
• 7,436 new hires within the Group
• 23,096 Group employees (45.3% of the workforce) received AI training for a total of 79,242 hours

Shareholders

• €4.65 proposed dividend in respect of financial year 2024
• €150m Share buyback programme for retirement in 2024

Suppliers & Subcontractors

836 suppliers were awarded positive EcoVadis assessments in 2024, covering more than €900 million of expenditure, in accordance with the targets set by the Group. This accounts for 77% of target expenditure for 2024.

Government & Society

• A List CDP Ranking
• More than 3,200 hours pro bono donated, benefiting more than 24,000 vulnerable people at risk of social and/or digital exclusion

Strategic Approach to Stakeholder Relations

The Group develops lasting relationships of trust with its stakeholders that enhance their performance and help make the value chain more resilient. The primacy of customer service is one of Sopra Steria's core values and delivering satisfaction is one of the Group's top priorities.

Employee Engagement

The Group prioritises close relationships with employees, with people and the management approach at the heart of the Company's strategy, promoting protection and trust, supporting human development, and encouraging accountability by valuing high standards and critical thinking.

Share ownership structure includes:

• 28.4% (43.0%) Controlled share ownership
• 68.0% (57.0%) Free float
• Employee participation: 6.2% (8.4%) Investments managed on behalf of employees

Dialogue with Investors

The Investor Relations Department engages in dialogue with the financial community throughout the year, meeting with all shareholders, investors and financial analysts. In 2024:

• 716 Individuals met
• 310 Institutions met
• 15 Conferences
• 15 Countries
• 27 Cities
• 37 Roadshows

Material Impacts, Risks and Opportunities and Their Interaction with Strategy and Business Model

Double Materiality Assessment Results

Sopra Steria conducted a double materiality assessment, the outcome of which confirmed the Company's priorities, some of them longstanding, while providing a fresh perspective on the value chain. These priorities reflect Sopra Steria's identity, strategy and business model, which are intrinsically linked to the quality of its relationships with its partners and the role of digital technology in society.

Key Material Issues

13 key issues regarding impact materiality and/or financial materiality were identified:

■ Climate change adaptation (ESRS E1) ■ Reducing and mitigating the carbon footprint (ESRS E1) ■ Resource and waste management (ESRS E5) ■ Priority placed on training and skills (ESRS S1) ■ Equal opportunities and diversity (ESRS S1) ■ Employee protection and trust (ESRS S1) ■ Social dialogue (ESRS S1) ■ Regional presence (ESRS S3) ■ Contribution to essential public services (ESRS S4) ■ Business conduct and compliance (ESRS G1) ■ Cybersecurity and digital sovereignty ■ Developing responsible digital technology

Integration with Strategy and Business Model

The strategic sustainability priorities and goals have been approved by supervisory, executive and management bodies, including the Board of Directors, Executive Management and the Executive Committee. These address the key sustainability matters for Sopra Steria and have direct or indirect implications for key components of the strategy, the business model and value chain (business-specific solutions, client sectors of activity, geographical regions, stakeholders).

Main Risk Categories

The most material risks specific to Sopra Steria are set out by category and in decreasing order of criticality:

Risks related to strategy and external factors

• Ability to offer appropriate, adapted solutions
• Acquisitions
• Loss of business from a major client or vertical
• Attacks on reputation

Risks related to operational activities

• Repercussions of major external crises
• Cybersecurity, protection of systems and data
• Pre-sales and delivery of projects and managed/operated services

Risks related to human resources

• Attracting talent
• Skills development and retention of key personnel

Risks related to regulatory requirements

• Compliance

Opportunities and Strategic Response

Sopra Steria positions itself as a European leader in digital services and a trusted, credible European alternative to global operators. The Group is developing and strengthening its foothold in four strategic markets (Public Sector, Financial Services, Defence & Security, Aerospace), where issues relating to sovereignty and responsible digital technology are becoming increasingly critical in Europe.

Strategic priorities for responsible digital technology are likely to influence the Group's business line skills and solutions.

Artificial intelligence has created a vast range of opportunities that the Group will seize, while taking an ethical, sovereign approach through the rAIse® programme launched in 2023.

Embedding Sustainability into Business Strategy

The Group has introduced a specialised sustainability programme that sets out and adapts strategic priorities. Main sustainability-related multi-year strategic priorities approved by the Board of Directors include:

• Environment [ESRS E1]: Net-zero emissions - Continue along the trajectory for reducing greenhouse gas emissions from the Group's direct activities
• Sopra Steria employees [ESRS S1]: Diversity and equal opportunity - Meet the imperatives of workplace diversity and inclusion

Waste

Waste management policy and approach

Sopra Steria's resource and waste management policy aims to reduce environmental impact by optimizing resource use, managing equipment lifecycle, and responsibly managing waste. The policy is structured around four priority areas:

1. Optimising resource consumption across the value chain through supplier choice, efficient energy management, and measurement tools
2. Managing equipment lifecycle by extending life and encouraging purchase of reconditioned equipment
3. Managing waste, particularly WEEE, by encouraging reuse and recycling
4. Raising awareness throughout the value chain and training employees

Waste management targets

By 2030, the Group aims to:

• Recover material or heat from 100% of WEEE (reuse through resale and donation, raw materials recovery for recycling or heat)
• Recover material or heat from 100% of paper and cardboard waste (raw materials recovery for recycling or heat)

Waste generation and recovery performance

Waste classification

Hazardous waste: Sopra Steria does not produce any hazardous waste according to RoHS and REACH definitions. The Group produces WEEE classified as hazardous under Commission Decision 2000/532/EC and Directive 75/442/EEC on waste. In 2024, the portion of hazardous WEEE not given a second life stood at 0.08% of the total amount of WEEE and paper, cardboard, plastic and metal waste.

Data collection and monitoring

All consolidated data for monitoring and publishing waste indicators come from the Group's suppliers. Data are collected quarterly to monitor the situation throughout the year. To maximize recovery, the Group brings in specialist service providers to collect and dispose of WEEE and paper and cardboard waste. By improving supplier relations, the Group recorded better results in 2024.

Future monitoring

Monitoring indicators may be reworked from 2025, concurrently with targets, particularly indicators related to:

• Total waste
• Total recovered or refurbished waste
• Total incinerated waste

Additional indicators relating to waste are available on Sopra Steria's website.