Cap Gemini - Registration Document 2016

4

FINANCIAL INFORMATION

4.2 Consolidated financial statements

Net financial expense

Note

2015

2016

in millions of euros

Income from cash, cash equivalents and cash management assets

28

25

Net interest on borrowings

(71) (43) (12) (55) (45) (20) (19) (63) 143 21

(95) (70) (34)

Net finance costs at the nominal interest rate

Impact of amortized cost on borrowings

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

(104)

24

(37)

28

Gains (losses) on derivative instruments

(30)

Other

(3)

Other financial income and expense

(42) 219

o/w financial income

o/w financial expenses

(206) (118)

(261) (146)

NET FINANCIAL EXPENSE

amortized cost on borrowings (€34 million) total €129 million and Net interest on borrowings (€95 million) and the impact of mainly comprise: of €1 million (stable on 2015); coupons on the 2011 bond issue of €24 million (compared with ◗ €26 million in 2015), plus an amortized cost accounting impact the expense relating to the “ORNANE 2013” bonds redeemable ◗ (compared with €10 million in 2015), including €22 million in in cash and/or in new and/or existing shares of €30 million component of the ORNANE 2013 bonds (€400 million) and the respect of the difference between the market value of the bond (see Note 21, Net debt / Net cash and cash equivalents); accounting value of the bond component at the redemption date and July 2023 of €50 million, plus an amortized cost accounting coupons on the bond issues maturing in July 2018, July 2020 impact of €3 million in respect of these bonds: floating coupon the July 2020 tranche and coupon of €26 million on the of €4 million on the July 2018 tranche, coupon of €23 million on

July 1, 2015) (see Note 2, Consolidation principles and Group €1 million in 2015 for these three bond issues performed on structure); €26 million plus an amortized cost accounting impact of July 2023 tranche, respectively (compared with total coupons of the net cost of EUR/USD fix-to-fix cross currency swaps of ◗ €16 million. instruments primarily concern inter-company loans denominated Exchange gains on financial transactions and losses on derivative in foreign currencies and their related hedging arrangements. Fair value gains and losses on the conversion option embedded in purchased in October 2013 are included in “Gains (losses) on the “ORNANE 2013” bonds and the call option on own shares cash equivalents). Given the “matching” nature of the main derivative instruments” (see Note 21, Net debt / Net cash and fair value gains and losses fully offset each other, resulting in a nil characteristics of these two derivative instruments, their respective

impact on the Group net financial expense.

184

Registration Document 2016 — Capgemini