CAPGEMINI_REGISTRATION_DOCUMENT_2017

4

FINANCIAL INFORMATION

4.2 Consolidated Financial Statements

Net provision in the Consolidated Statement of{Financial Position

Obligation

Plan assets

2016

2017

2016

2017

2016

2017

in{millions of euros

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

3,330

3,633

(2,633)

(2,787)

697

846

121

106

(88)

(72)

33

34

Service cost

10

12

- -

- -

10

12

Curtailments, settlements and plan transfers

-

-

-

-

Interest cost

111

94

(88)

(72)

23

22

Impact on income and expense recognized in equity

765 765 830

(18) (18) 151

(481)

(174)

284 765 830

(192)

Change in actuarial gains and losses

- -

- - - -

(18) 151

Impact of changes in financial assumptions

Impact of changes in demographic assumptions

-

(139)

-

(139)

Experience adjustments

(65)

(30)

-

(65)

(30)

Return on plan assets{ (1)

-

-

(481)

(174)

(481)

(174)

Other

(583)

(231)

415

147

(168)

(84)

Contributions paid by employees

1

1

(1)

(1)

- -

- -

Benefits paid to employees

(72)

(105)

72

105 (58)

Contributions paid

-

-

(58)

(58)

(58) (26)

Translation adjustments

(512)

(127)

402

101

(110)

PRESENT VALUE OF THE BENEFIT OBLIGATION AT DECEMBER{31

3,633

3,490

(2,787)

(2,886)

846

604

After deduction of financial income on plan assets recognized in the Income Statement and calculated using the discount rate. (1)

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

At December{31, 2016

At December{31, 2017

in %

Discount rate

2.6-2.8 2.3-3.1

2.4

Salary inflation rate

2.3-3.1

Inflation rate

3.1

3.1

Mortality tables used are those commonly used in the United Kingdom.

Plan assets b)

At December 31, 2016

At December 31, 2017

in{millions of euros

Shares

1,377 1,336

49% 48%

1,516 1,322

52% 46%

Bonds and hedging assets

Other

74

3%

48

2%

TOTAL

2,787

100%

2,886

100%

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

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REGISTRATION DOCUMENT 2017 — CAPGEMINI