CAPGEMINI_REGISTRATION_DOCUMENT_2017

FINANCIAL INFORMATION

4.2 Consolidated Financial Statements

Net financial expense Note{9

Note

2016

2017

in{millions of euros

Income from cash, cash equivalents and cash management assets

25

37

Net interest on borrowings

(95)

(52)

Net finance costs at the nominal interest rate

(70)

(15)

Impact of amortized cost on borrowings

(34)

(3)

Net finance costs at the effective interest rate Net interest cost on defined benefit pension plans Losses (exchange gains) on financial transactions

(104)

(18) (34) (51)

24

(37)

28

Gains (losses) on derivative instruments

(30)

36

Other

(3)

(5)

Other financial income and expense

(42)

(54)

o/w financial income

219

105

o/w financial expenses

(261)

(159)

4

NET FINANCIAL EXPENSE

(146)

(72)

Net finance cost “Net interest on borrowings” (€52{million) and the “Impact of amortized cost on borrowings” (€3{million) total €55{million in{2017 and mainly comprise (i) coupons on 2015{bond issues of €50{million, plus an amortized cost accounting impact of €3{million, unchanged on{2016 and (ii) the coupon on the 2016{bond issue of €2{million (negligible amount in{2016). In{2016, “Net interest on borrowings” included coupons of €24{million on the 2011{bond issue redeemed in full on November{29, 2016 and the “Impact of amortized cost on borrowings” included €30{million in respect of the “ORNANE{2013” bonds redeemable in cash and/or in new and/or existing shares (see Note{21 - Net debt/Net cash and cash equivalents).

“Net interest on borrowings” include a net income on EUR/USD fix-to-fix cross currency swaps of €6{million, including the gain realized on the interest rate component of these swaps when unwound early in the first-half of{2017, compared with a net cost of €16{million in{2016. Other financial income and expense Exchange losses on financial transactions and gains on derivative instruments primarily concern inter-company loans denominated in foreign currencies as well as their related hedging arrangements and notably include the impact on the exchange rate component of the early unwinding of the cross currency swaps.

195

REGISTRATION DOCUMENT 2017 — CAPGEMINI