CONTENTS - Capgemini

94 ANNUAL
GROUP CONSOLIDATED FINANCIAL STATEMENTS
Capgemini
B) Obligations under finance leases
The amount reported under this caption at December 31, 2006 corresponds mainly to the finance lease relating to the “Les Fontaines” site of
the Group University located at Gouvieux and investments in Computer equipment made by Capgemini UK Plc and New Horizons Systems
Solutions LP (Canada).
in millions of euros
Capgemini University
(Les Fontaines)
C) Other financial debt
At December 31, 2006, other financial debt of €224 million mainly
consists of:
€121 million relating to the recognition in the balance sheet
of carry-back tax credits (see Note 14 – “Other non-current
assets”).
€65 million corresponding to the present value of the put option
held by the TXU group in connection with the outsourcing contract
signed in May 2004.
€19 million in financial debt owed to TXU under the terms of
the contract.
€9 million corresponding to the present value of the put option
granted to Hindustan Lever Limited in connection with the acquisition
of Indigo.
D) Syndicated credit facility obtained by Cap Gemini
S.A.
On November 14, 2005, Cap Gemini S.A. signed a €500 million
multi-currency credit facility with a group of banks maturing on
November 14, 2010 at the latest. On September 14, 2006, Cap
Gemini S.A. exercised the one-year extension option on this credit
facility (agreed by the banks on October 27, 2006), thereby extending
its maturity to November 14, 2011.
Use of this credit facility is subject to the following conditions:
A margin of 0.50% as of today (above Euribor or Libor 1 to
12 months). In addition, a utilization fee of 0.025% to 0.050%
REPORT 2006 Capgemini
Earliest
start date
of leases
Latest
expiry date
of leases
Weighted
average
interest rate
December
31, 2006
Dec. 2002 July 2014
3-month
Euribor +0.75%
67
Capgemini UK Plc Oct. 2000 Nov. 2010
Fixed rate
(10.4%)
37
New Horizons System Solutions LP Feb. 2003 Oct. 2010
Fixed rate
(6.0%)
13
Other April 1999 Nov. 2011 - 39
TOTAL SHORT- AND LONG-TERM OBLIGATIONS
UNDER FINANCE LEASES 156
A certain number of leases included in the outsourcing contract signed with Schneider Electric on October 28, 2004 have not yet been
transferred to the Group. The restatement of finance leases may lead to the recognition of additional financial debt for an estimated maximum
amount of €8 million, corresponding to the total lease commitments. At December 31, 2006, these commitments are included in “Off
balance sheet commitments”.
may apply for drawdowns in excess of certain amount of the credit
facility. The margin may be adjusted according to the Company’s
credit rating.
A fee on undrawn amounts initially set at 35% of the margin (i.e.
currently 0.175%) that may be reduced to 30% if Cap Gemini
S.A.’s rating improves.
An upgrade or downgrade of Cap Gemini S.A.’s credit rating would
have no impact on the availability of this credit line.
Cap Gemini S.A. has agreed to comply with the following covenants
regarding financial ratios (as defined in IFRS):
the net financial debt to consolidated equity ratio must be less
than 1 at all times;
interest cover – i.e., the extent to which finance costs (net)
adjusted for certain items are covered by consolidated operating
margin – must be equal to or greater than 3 as at December
31 and June 30 of each year (based on the 12 months then
ended).
At December 31, 2006, the Group complied with these financial
ratios:
Net financial debt to consolidated equity ratio is not relevant due
to a positive net cash and cash equivalents situation.
The interest cover requirement was not relevant insofar as adjusted
finance costs (net) were nil.