CAPGEMINI_REGISTRATION_DOCUMENT_2017

FINANCIAL INFORMATION

4.3 Comments on the Capgemini{SE financial{statements

Comments on the Capgemini{SE 4.3 financial{statements

Income statement 4.3.1 The Company reported operating income for the year ended December{31, 2017 of €393{million (including €300{million in royalties received from subsidiaries) compared with €304{million last year (including €264{million in royalties). Operating profit is €255{million, compared with €162{million in{2016. Net finance income totaled €2,472{million (compared with €867{million in{2016) and reflects the difference between: income of €2,854{million, mainly comprising reversals of X provisions for equity interests (€2,389{million), particularly in the United States, Netherlands, Italy and Spain, foreign exchange gains on the pooling of currency risk at Group level (€323{million), dividends received from subsidiaries (€83{million) and income from loans granted to subsidiaries (€30{million); Balance sheet 4.3.2 Net investments rose from €15,719{million last year to €17,460{million at December{31, 2017. This €1,741{million increase is mainly attributable to: net reversals of provisions for equity interests of X €2,389{million; a €527{million decrease in amounts receivable from controlled entities, mainly corresponding to a decrease in loan outstandings with a US{subsidiary; a €123{million decrease in other long-term investments X corresponding to the net impact of treasury share transactions during the year. Shareholders’ equity is €13,846{million, up €2,137{million on last year. This increase essentially reflects the difference between: 2017 net profit (€2,719{million); X the €322{million share capital increase for cash reserved for employees (ESOP{2017); the €630{million share capital reduction by cancellation of X 6,680,523{Capgemini{SE shares purchased under the share buyback program authorized by the Combined Shareholders’ Meetings of May{18, 2016 and May{10, 2017; and the May{24, 2017 dividend payment of €1.55 per share on the 168,828,050{shares making up the Company’s share capital at May{24, 2017 (after neutralization of the 321,530{treasury shares held by the Company), representing a total payment of €262{million.

expenses of €382{million, mainly comprising foreign exchange X losses on the pooling of currency risk at Group level (€246{million), charges to provisions for equity interests (€41{million), charges to provisions for foreign exchange losses (€22{million), as well as interest on bond issues and a currency swap (€72{million). This €1,605{million increase in net finance income year-on-year was mainly due to the increase in net reversals of provisions for equity interests. Net non-recurring income is €5{million compared with a net non-recurring expense of €71{million in{2016. After an income tax expense of €13{million (compared with €8{million in{2016), notably reflecting the income tax expense of the tax consolidation group, the Company reported a net profit of €2,719{million. Borrowings totaled €4,583{million at December{31, 2017, down €631{million compared with December{31, 2016. This decrease was mainly due to: the €674{million decrease in bank overdrafts on the accounts included in the Group’s cash pooling arrangement (Cash pooling international), for which the Company acts as the centralizing agent, offset in full by an opposite position of the same amount in the Company’s cash and cash equivalents; the €42{million increase in outstanding inter-company loans. X In addition to the above, the following information is required by law: External accounts payable of Capgemini{SE total €593{thousand, €581{thousand of which are not yet due. Group accounts payable total €8.3{million, none of which are due. Inter-company accounts receivable total €31,924{thousand, including €550{thousand past due (including €395{thousand with China due to foreign exchange controls). Past due accounts receivable represent 0.1% of revenues.

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REGISTRATION DOCUMENT 2017 — CAPGEMINI