TELEPERFORMANCE_Registration_document_2017

PARENT COMPANY FINANCIAL STATEMENTS

8.4 Notes to the parent company financial statements

Note 9

Provisions for contingencies and expenses

Decreases

B At 12/31/2017

(in thousands of euros)

At 01/01/2017

Increases

A

Unrealized foreign exchange losses Unrealized losses on hedging instruments Employer contributions on free share awards

3,610

1,080 1,334 1,173

3,610

b b b b

1,080 1,334 1,173 1,670 5,257

b b

b b b

Employee retirement benefits

1,438 5,048

232

TOTAL

3,819

3,610

0

A: Release utilized. B: Release not utilized.

NOTE 9.1 Employee retirement benefits Commitments for payment of retirement and post-employment benefits arising from labor agreements and legal requirements are classified as provisions for contingencies and expenses, and have been measured using the projected unit credit method, under the following actuarial assumptions:

Change in the provision for retirement benefits At the beginning of the year

1,438

+ service cost

162

+ interest

19 51 74 34

+ actuarial gains and losses including changes in assumptions

Discount rate

1.29 * 2.50%

Annual rate of increase in salaries

including new participants

Rate of social charges

45%

incuding withdrawals in the year AT THE END OF THE YEAR*

-57

1,670

* iBoxx € Corporates AA 10+ rate at Decemberb29 th , 2017 (source Markit.com).

* including 178 K€ for the benefit of a company officer.

Actuarial differences are recognized immediately in the income statement.

Note 10

Financial liabilities

Certain loans are subject to covenants in the form of financial ratios as disclosed in the notes to the consolidated financial statements included in the Registration Document (document de référence) . At Decemberb31 st , 2017, the Company was in compliance with all of these financial ratios. The Company has a syndicated credit facility of €300bmillion which expires in February 2022. Draw-downs under the facility may be made either in euros or in US$, and are repayable in fine . At Decemberb31 st , 2017, no outstanding amounts had been drawn down under the facility, compared with €35bmillion at Decemberb31 st , 2016. On Julyb28 th , 2017, the Company repaid the loan of US$135bmillion from Crédit Agricole. The Company also has two US private placements, obtained in 2014band 2016, redeemable in fine with the following principal conditions: ■ a US$160bmillion tranche at a fixed interest rate of 3.64%, redeemable in December 2021; ■ a US$165bmillion tranche at a fixed interest rate of 3.98%, redeemable in December 2024;

■ a US$75bmillion tranche at a fixed interest rate of 3.92%, redeemable in December 2023; ■ a US$175bmillion tranche at a fixed interest rate of 4.22%, redeemable in December 2026. On Septemberb16 th , 2016, Teleperformance obtained a loan of US$500bmillion repayable in four equal installments on Augustb20 th , 2018band Augustb19 th , 2019, 2020band 2021. The Company has also made a bond issue of €600bmillion at a nominal interest rate of 1.50%, redeemable on Aprilb3 rd , 2024. The related issue expenses of €2.1bmillion were fully expensed in 2017. The premium due on redemption of the bonds is presented as an asset in an amount of €3.2bmillion and will be amortized over the period to redemption. Finally, on November 23 rd , 2017, Teleperformance subscribed to commercial paper issues in a total amount of €105bmillion.

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Teleperformance bb - bb Registration documentbb 2017