CAPGEMINI_REGISTRATION_DOCUMENT_2017

FINANCIAL INFORMATION

4.2 Consolidated Financial Statements

Accounts and notes receivable Note{19

At December{31 (in millions of euros)

Note

2016

2017

Accounts receivable

1,996

2,066

Provisions for doubtful accounts

(27)

(24)

Accrued income

1,012

1,124

Accounts and notes receivable, excluding capitalized costs on{projects

2,981

3,166

22

Capitalized costs on projects

22

93

99

ACCOUNTS AND NOTES RECEIVABLE

3,074

3,265

Total accounts receivable and accrued income net of advances from customers and billed in advance, can be analyzed as follows in number of days revenue:

At December{31 (in millions of euros)

Note

2016

2017

Accounts and notes receivable, excluding capitalized costs on projects

22 22

2,981

3,166

4

Advances from customers and billed in advance

(737)

(890)

TOTAL ACCOUNTS RECEIVABLE NET OF ADVANCES FROM{CUSTOMERS AND BILLED IN ADVANCE

2,244

2,276

In number of days’ annual revenue (1)

64

64

This ratio is adjusted to take account of the impact of entries into the scope of consolidation. (1)

As of December{31, 2017, receivables totaling €99{million were assigned with transfer of credit risk as defined by IAS{39 to financial institutions (€66{million in 2016) and were therefore derecognized in the Statement of Financial Position as of December{31, 2017.

Aged analysis of accounts receivable The low bad debt ratio reflects the fact that most invoices are only issued after the client has validated the services provided. At end-2017, past due balances total €411{million (€341{million as of December{31, 2016) and represent 20.1% of accounts and notes receivable less provisions for doubtful accounts (17.3% in{2016). The breakdown is as follows:

>{30{days and <{90{days

<{30{days

>{90{days

in{millions of euros

Net accounts receivable

249

102

60

As a % of accounts and notes receivable, net of provisions for doubtful accounts

12.2%

5.0%

2.9%

Past due balances concern accounts receivable from clients which are individually analyzed and monitored. 15% of Group revenues. The solvency of these major clients and the sheer diversity of the other smaller clients help limit credit risk. The economic environment could impact the business activities of the Group’s clients, as well as the amounts receivable from these clients. However, the Group does not consider that The Group’s three{largest clients contribute around 7% of Group any of its clients, business sectors or geographic areas present a revenues (compared with 9% in{2016). The Group’s five{largest significant credit risk that could materially impact the financial clients contribute around 10% of Group revenues (compared position of the Group as a whole. with 11% in{2016). The top{ten{clients collectively account for Credit risk

219

REGISTRATION DOCUMENT 2017 — CAPGEMINI