Cap Gemini - Registration Document 2016

4

FINANCIAL INFORMATION

4.2 Consolidated financial statements

Net provision in the

Financial Position Consolidated Statement of

Obligation

Plan assets

2015

2015

2015

2016

2016

2016

in millions of euros

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

3,252

3,330

(2,480)

(2,633)

772

697

105

121

(95)

(88)

10 15

33 10

Service cost

15

10

- -

Curtailments, settlements and plan transfers

(35) 125

-

(35)

-

Interest cost

111

(95)

(88)

30

23

Impact on income and expense recognized in equity

(156) (156)

765 765 830 (65)

84

(481)

(72)

284 765 830 (65)

Change in actuarial gains and losses

- - -

-

(156)

Impact of changes in financial assumptions

(89) (67)

(89) (67)

Experience adjustments

Return on plan assets (1)

-

84

(481)

84

(481) (168)

Other

129

(583)

(142)

415

(13)

Contributions paid by employees

1

1

(1) 73

(1) 72

- -

- -

Benefits paid to employees

(73)

(72)

Contributions paid

-

-

(62)

(58) 402

(62)

(58)

Translation adjustments

201

(512)

(152)

49

(110)

OBLIGATION AT DECEMBER 31 PRESENT VALUE OF THE BENEFIT

3,330

(2) 3,633

(2,633)

(2,787)

697

846

After deduction of financial income on plan assets recognized in the Income Statement and calculated using the discount rate, (1) The year-on-year increase in the present value of the obligation is mainly due to the impact of a decrease in the benchmark discount rate (3.8% to 2.6%-2.8%). (2)

In 2015, the curtailment following a plan change represents income of €35 million due to the decrease in the present value of the benefit their defined benefits. obligation for the main Capgemini UK Plc. pension plan after an agreement was reached with certain members regarding a reduction in

Main actuarial assumptions a) Discount rate, salary inflation rate and inflation rate

At December 31, 2015

At December 31, 2016

in %

Discount rate

3.8

2.6-2.8 2.3-3.1

Salary inflation rate

2.4-3.2

Inflation rate

3.2

3.1

method, compared to a single discount rate method used at the 2015 year end. This change in method led to a decrease in the present At the 2016 year end, the Group moved to a calculation method for the discount rate and inflation, based on a full yield curve valuation value of the pension obligation of approximately €200 million at December 31, 2016. Mortality tables used are those commonly used in the United Kingdom.

Plan assets b)

2015

2016

in millions of euros

Shares

1,421 1,168

54% 44%

1,377 1,336

49% 48%

Bonds and hedging assets

Other

44

2%

74

3%

TOTAL

2,633

100%

2,787

100%

Shares correspond to investments in equities or diversified growth investments, the majority of which in developed markets. the plan liabilities; this matching portfolio consists of UK government bonds (GILT), owned directly or borrowed via sale and repurchase Bonds and hedging assets consist of bonds invested in liquid markets. A portion of these investments seeks to hedge interest rate risk on agreements.

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Registration Document 2016 — Capgemini