CAPGEMINI_REGISTRATION_DOCUMENT_2017

FINANCIAL INFORMATION

4.2 Consolidated Financial Statements

Movements in provisions for pensions and other post-employment benefits during the last two fiscal years were as follows:

Net provision in the Consolidated Statement of Financial Position

Obligation

Plan assets

Note

2016

2017

2016

2017

2016

2017

in{millions of euros

PRESENT VALUE OF THE BENEFIT OBLIGATION AT JANUARY{1 Expense for the period recognized in{the{Income Statement

4,498

4,869 (3,282)

(3,495)

1,216

1,374

209

201

(113)

(98)

96 59 37

103

Service cost

7 9

59

69

-

-

69 34

Interest cost

150

132

(113)

(98)

Impact on income and expense recognized in{equity

772 772 858 (11) (75)

54

(496)

(189)

276 772 858 (11) (75)

(135)

Change in actuarial gains and losses

54

- - - -

- - - -

54

Impact of changes in financial assumptions

204

204

Impact of changes in demographic assumptions

(114)

(114)

4

Experience adjustments

(36)

(36)

-

-

(496)

(189)

(496)

(189)

Return on plan assets{ (1)

Other

(610)

(312)

396

166

(214)

(146)

Contributions paid by employees

7

7

(7)

(7)

-

-

Benefits paid to employees

(152)

(158)

124 (89) 369

147 (94) 144 (24)

(28) (89)

(11) (94) (44)

Contributions paid

-

-

Translation adjustments

(469)

(188)

(100)

Other movements

4

27

(1)

3

3

PRESENT VALUE OF THE BENEFIT OBLIGATION AT DECEMBER{31

4,869

4,812 (3,495)

(3,616)

1,374

1,196

After deduction of financial income on plan assets recognized in the Income Statement and calculated using the discount rate. (1)

Analysis of the change in provisions for pensions and other post-employment benefits United Kingdom A)

In the United Kingdom, post-employment benefits primarily consist of defined contribution pension plans with some employees accruing pensionable service within a defined benefit pension plan. In addition certain former and current employees accrue deferred benefits in defined benefit pension plans. The plans are administered within trusts which are legally separate from the employer and are governed by a trustee Board comprising independent trustees and representatives of the employer. The defined benefit pension plans provide pensions and lump sums to members on retirement and to their dependents on death. Members who leave service before retirement are entitled to a deferred pension. The main plan is closed to the accrual of benefits for all current employees since March{31, 2015. Employees covered by defined benefit pension plans break down as follows: 617{current employees accruing pensionable service (700{at X December{31, 2016); 7,583{former and current employees not accruing X pensionable service (7,690{at December{31, 2016); 2,972{retirees (2,868{at December{31, 2016).

The plans are subject to the supervision of the UK{Pension Regulator; the funding schedules for these plans are determined by an independent actuary as part of actuarial valuations usually carried out every three years. Capgemini{UK Plc., the employer, gives firm commitments to the trustees regarding the funding of any deficits identified, over an agreed period. The responsibility to fund these plans lies with the employer. The defined benefit pension plans expose the Group to the increase in liabilities that could result from changes in the life expectancy of members, fluctuations in interest and inflation rates and, more generally, a downturn in financial markets. The average maturity of pension plans in the United Kingdom is 22{years. In accordance with local regulations, the non-renewal of certain client contracts in full or in part could require Capgemini{UK Plc. to bring forward the funding of any deficits in respect of the employees concerned.

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REGISTRATION DOCUMENT 2017 — CAPGEMINI