CAPGEMINI_REGISTRATION_DOCUMENT_2017

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FINANCIAL INFORMATION

4.1 Analysis of Capgemini Group 2017 consolidated results

Consolidated Statement of Financial Position Equity attributable to owners of the Company totaled €6,956{million at December{31, 2017, down €316{million on December{31, 2016. This decrease was mainly due to: a €781{million reduction in foreign exchange translation X reserves; the payment to shareholders of a dividend of{€262{million; the elimination of treasury shares for{€534{million, X partially offset by profit for the year of €820{million and incentive and employee share ownership instruments for €393{million and particularly the impact of the €320{million share capital increase under the ESOP{2017 international employee share ownership plan. Non-current assets totaled €9,854{million at December{31, 2017, down €736{million on December{31, 2016. This was mainly due to a €346{million decrease in goodwill following negative translation adjustments to goodwill denominated in US{dollar and pound sterling of €613{million, partially offset by goodwill of €267{million recognized on acquisitions during the year. Non-current liabilities fell 13.8% year-on-year to €4,487{million at December{31, 2017 (from €5,206{million), mainly due to the reclassification in current liabilities of a €500{million bond issue maturing in July{2018. Operating receivables (accounts and notes receivable) totaled €3,265{million at December{31, 2017, compared with €3,074{million at December{31, 2016. Accounts and notes receivable, net of advances from clients and amounts billed in advance and excluding capitalized costs on projects, remained broadly stable at €2,276{million at December{31, 2017 (€2,244{million at December{31, 2016). Accounts and notes payable mainly consist of trade payables and related accounts, personnel costs and accrued taxes other than income tax and totaled €2,837{million at December{31, 2017, compared with €2,818{million at December{31, 2016. Consolidated net debt totaled €1,209{million at December{31, 2017 compared with €1,413{million at December{31, 2016. This €204{million decrease on December{31, 2016 is mainly due to the generation of organic free cash flow during the year of €1,080{million and the €320{million share capital increase under

the ESOP{2017 international share ownership plan, partially offset by: the payment to shareholders of a dividend of €262{million; X cash outflows and inflows on business combinations, net of cash and cash equivalents acquired, of €238{million; cash outflows of €531{million in respect of transactions in X Capgemini{SE shares. Application of IFRS{15 from January{1, 2018 The application of IFRS{15 on January{1, 2018 will primarily impact the resale of hardware, software and services, that the Group may carry out, particularly at the request of customers. From now on, a larger proportion of these revenues will be recorded on a net basis ( i.e. revenues invoiced to clients less amounts invoiced by suppliers). The assessment of the impact that application of IFRS{15 would have had in{2017 shows: a reduction in revenues of €270{million, or 2.1% of published revenues, in line with the information communicated in July{2017; no change in the operating margin in euros, leading to a X reported operating margin rate of 11.9%, compared with the 11.7% published; no change in the euro amount of net profit, earnings per X share (basic, diluted or normalized) or organic free cash flow. The audit of the results of this assessment will be finalized for the publication of the{2018{half-year results. Outlook for 2018 For{2018, the Group aims to accelerate its growth with revenue progression of 6% to 7% at constant exchange rates, to increase profitability with an operating margin of 12.0% to 12.2% and to generate an organic free cash flow in excess of €1{billion. In addition, the Group expects currency movements to negatively impact revenues by around 3.5{points, mainly due to the appreciation of the euro against the US{dollar. This outlook takes into account the application of IFRS{15 from January{1, 2018.

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REGISTRATION DOCUMENT 2017 — CAPGEMINI