Cap Gemini - Registration Document 2016

FINANCIAL INFORMATION

4.2 Consolidated financial statements

value of hedging derivatives C) Hedging derivatives are recorded in the following accounts:

At December 31 (in millions of euros)

Notes

(1) 2015

2016

Other non-current assets

18 20 26

228 114

107 149 (89) 180 217 (37)

Other current assets

Other non-current and current liabilities Fair value of hedging derivatives, net

(217)

125 145 (20)

Relating to:

operating transactions

■

financial transactions

■

Certain reclassifications have been made to 2015 amounts to conform to current year presentation. These reclassifications had no impact on net income nor on net cash flows. (1)

The main hedging derivatives comprise mainly: centralized management of currency risk recorded in “Other non-current assets” in the amount of €120 million, in “Other the fair value of derivative instruments contracted as part of the ◗ current assets” in the amount of €145 million, in “Other non

current liabilities” in the amount of €13 million and in “Other current liabilities” in the amount of €35 million; 2016. EUR/USD fix-to-fix cross currency swaps recorded in “Other ◗ non-current liabilities” valued at €35 million at December 31,

4

The change in the period in derivative instruments hedging operating and financing transactions recorded in income and expense recognized in equity breaks down as follows:

2016

in millions of euros

Hedging derivatives recorded in income and expense recognized in equity at January 1

124 (12)

Amounts reclassified to profit in respect of transactions performed Fair value of derivative instruments hedging future transactions HEDGING DERIVATIVES RECORDED IN INCOME AND EXPENSE RECOGNIZED IN EQUITY AT DECEMBER 31

91

203

Interest rate risk management

and cash management assets, a 100-basis point rise in interest rates would have had a positive impact of around €5 million on the Group’s net finance costs in 2016. Conversely, a 100-basis point fall in interest rates would have had an estimated €5 million Based on average levels of floating-rate short-term investments negative impact on the Group’s net finance costs. Counterparty risk management In addition, in line with its policies for managing currency and interest rate risks as described above, the Group also enters into hedging agreements with leading financial institutions. Accordingly, counterparty risk can be deemed not material. At December 31, 2016, the Group’s main counterparties for managing currency and interest rate risk are Barclays, BNP Paribas, CA CIB, Citibank, Commerzbank, HSBC, ING, JP Morgan, Morgan Stanley, Natixis, Royal Bank of Scotland,

Interest rate risk management policy A)

investments mainly at floating rates (or failing this, at fixed rates for periods of less than or equal to three months), and €3,412 million in gross indebtedness principally at fixed rates (85%) (see Note 21, Net debt / Net cash and cash equivalents). The high The Group’s exposure to interest rate risk should be analyzed in light of its cash position: at December 31, 2016, the Group had €2,036 million in cash and cash equivalents, with short-term proportion of fixed-rate borrowings is due to the weight of bond issues in gross indebtedness. Exposure to Interest rate risk: sensitivity analysis B) As 85% of Group borrowings were at fixed rates in 2016, any increase or decrease in interest rates would have had a negligible impact on the Group’s net finance costs.

Santander, and Société Générale.

217

Registration Document 2016 — Capgemini