CAPGEMINI_REGISTRATION_DOCUMENT_2017

4

FINANCIAL INFORMATION

4.2 Consolidated Financial Statements

Changes in working capital requirements (WCR) and the reconciliation with the Consolidated Statement of Financial Position are as follows:

Statement of Cash

Working capital requirement components (Consolidated Statement of Financial Position)

Neutralization of items with no cash impact

Flows items

Reclassifi- cations{ (2) and changes in Group

Non working capital items{ (1)

Foreign ex- change impact

Impact of WCR items

Net profit impact

December{ 31, 2016

December{ 31, 2017

Net impact

Notes

structure Amount

in{millions of euros

Accounts and notes receivable, excl. capitalized costs on projects Capitalized costs on projects Advances from customers and billed in advance Change in accounts and notes receivable and advances from customers and amounts billed in advance Accounts and notes payable (accounts payable) Changes in accounts and notes payable Accounts and notes payable (excluding accounts payable) Other current and non-current liabilities Change in other receivables/payables CHANGE IN OPERATING WORKING CAPITAL Other non-current assets Other current assets

19 19

2,981

3,166 (185)

(3)

(188)

- -

(144)

28

(304)

93

99

(6)

-

(6)

(6)

-

(12)

19

(737)

(890)

153

-

153

-

29

9

191

(38)

(3)

(41)

-

(121)

37 (125)

27 (1,105)

(1,124)

19

4

23

-

52

(20)

55

19

4

23

-

52

(20)

55

18 20

374 627

311

63

(72) (16)

(9)

-

(6)

(18)

(33) (39)

657 (30)

(46)

6 (18)

19

27 (1,713)

(1,713)

0

1

1

-

60

(4)

57

26

(367)

(392)

25

(10)

15

-

8

(1)

22

58

(97)

(39)

6

44

(4)

7

(57)

6 (25)

13

(63)

Non-working capital items comprise cash flows relating to investing and financing activities, payment of the income tax expense and non-cash items. (1) The Reclassifications heading mainly includes changes relating to the current and non-current reclassification of certain accounts and notes receivable and payable and changes in the (2) position of certain tax and employee-related receivables and payables in assets or liabilities.

Net cash used in investing activities The main components of net cash used in investing activities of €534{million (compared with €251{million in{2016) reflect: cash outflows of €161{million relating to acquisitions of X property, plant and equipment, net of disposals, primarily due to purchases of computer hardware for customer projects or the partial renewal of IT{installations and the renovation, extension and refurbishment of office space; cash outflows of €65{million relating to acquisitions of X intangible assets, net of disposals, mainly involving software for customer projects or for internal use and internally generated intangible assets (see Note{13 - Goodwill and intangible assets); cash inflows and outflows on business combinations net of X cash and cash equivalents acquired of €238{million.

Net cash from financing activities Net cash outflows as a result of financing activities totaled €587{million (compared with cash outflow of €1,115{million in{2016) and mainly comprised: cash outflows of €531{million for the buyback of own shares; payment of the 2016{dividend of €262{million; X cash outflows of €54{million to reimburse obligations under X finance leases; cash outflows of €24{million in respect of interest payments X net of interest received, offset by: the €320{million share capital increase following the issue of X new shares under the international employee share ownership plan (see Note{12{E - Equity).

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REGISTRATION DOCUMENT 2017 — CAPGEMINI