TELEPERFORMANCE_Registration_document_2017

CONSOLIDATED FINANCIAL STATEMENTS

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7.6 Notes to the consolidated financial statements

Provisions for risks at Decemberb31 st , 2017binclude a contingent liability of €9.8bmillion (US$11.7bmillion), in respect of risks identified during the Aegis USA Inc. acquisition process in 2014, including tax risks of €9.3bmillion. An equivalent asset of €9.3bmillion has been recognized, as these are covered by a contractual net asset warranty. Provisions for risks also include other risks in a total amount of €23.9bmillion, of which €11.5bmillion relates to personnel-related

risks, principally concerning lawsuits with former employees, particularly in Argentina, Brazil and France. The provisions for other expenses at Decemberb31 st , 2017binclude principally a provision for the reorganization of the French business. As legal proceedings are ongoing for most of these disputes, their settlement date is uncertain.

NOTE I.3 Post-employment benefits: defined benefit plans

These principally concern:

The liability at Decemberb31 st , 2017bpresented as Other countries principally concerns our subsidiaries in Greece, El Salvador and India, for amounts of €1.7bmillion, €1.6bmillion and €1.4bmillion, respectively. The amount of the liability in the consolidated statement of financial position, representing the benefit obligation less the fair value of plan assets was:

■ the lump-sum payments made to employees on their retirement under the provisions of French national wage agreements and labor law; ■ defined benefit pension plans in Norway, Greece, India, the Philippines, El Salvador and certain Mexican entities. Commitments related to the lump-sum benefits in France are measured with the following actuarial assumptions:

■ €7.8bmillion at Decemberb31 st , 2013; ■ €9.8bmillion at Decemberb31 st , 2014; ■ €9.8bmillion at Decemberb31 st , 2015; ■ €12.1bmillion at Decemberb31 st , 2016; ■ €14.4bmillion at Decemberb31 st , 2017.

2017

2016

Discount rate

1.29% 1.31%

Rate of annual increase in remuneration

1.5%/2.5% 1.5%/2.5% 38%/45% 38%/45%

 Analysis of plan assets

Rate of employer social charges

2017

b

2016

The other commitments are individually not significant and are measured by actuaries taking into account local conditions.

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16

Actuarial liability

Equities

10.9% 6.7% 13.2% 12.2% 14.0% 23.6% 27.2% 31.7% 23.3% 18.1% 10.0% 7.4% 1.4% 0.3%

Bonds

 Change in the actuarial liability in 2017 and 2016:

Money market

Other countries

Hold to maturity bonds Loans & Receivables

b

France

Total

At Decemberb31 ST , 2015

6 1

4 1

10

Real estate

In 2016bprofit or loss

2 0

Other

In other comprehensive income

b

b

4

4

Plan assets

At December 31 ST , 2016

7 1

5 2 1

12

Provision in the statement of financial position

In 2017bprofit or loss

3 0

12

14

In other comprehensive income

-1

Company officers represent an amount of €0.2bmillion in the provision for retirement benefits at Decemberb31 st , 2017.

Translation differences At December 31 ST , 2017

b

-1

-1

7

7

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NOTE I.4 Guarantees and other contractual obligations

Guarantee commitments Teleperformance SE issued a performance guarantee in November 2013b to the Secretary of State for the Home Department of the United Kingdom covering the duration of a commercial contract entered into with a Group subsidiary. The maximum amount covered by the guarantee is £60bmillion. Teleperformance SE has issued a performance guarantee in December 2013bto Apple Inc. relating to the obligations of certain subsidiaries undertaken in respect of a commercial contract. The guarantee was given for the duration of the commercial contract.

The maximum amount covered by the guarantee is the greater of (i) US$60bmillion and (ii) the total amount of sums paid by Apple to the subsidiaries concerned during the calendar year preceding the date of the loss event. In October 2017, Teleperformance Europe Middle-East and Africa SAS, a subsidiary of Teleperformance SE, issued a comfort letter in favor of Klarna in connection with a new commercial agreement entering into effect from Januaryb1 st , 2018bcovering services to be supplied by it and subsidiaries of Teleperformance SE in Sweden, Finland, Denmark, Germany, the Netherlands, the United Kingdom and Austria.

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Teleperformance bb - bb Registration documentbb 2017