CAPGEMINI_REGISTRATION_DOCUMENT_2017

FINANCIAL INFORMATION

4.4 2017 financial statements

Change in deferred tax liabilities

Deferred tax on temporary differences (in thousands of euros)

Prior year amount

Current year amount

Non-deductible provisions Organic sales tax

43

70

Provisions for contingencies and losses Provision for foreign exchange losses Unrealized foreign exchange gains Unrealized foreign exchange losses

573

22,043

4,261

167,013 (22,043)

(573)

Remeasurement differences on receivables and payables and fair value measurement of derivatives

96,742

(474)

TOTAL

101,047

166,608

Tax rate for temporary differences

34.43%

34.43%

DEFERRED TAX

34,790

57,363

Deferred tax assets

Tax losses carried forward

649,681

525,518

■

4

Tax rate for temporary differences

34.43%

34.43%

DEFERRED TAX

223,685

180,936

III - Other information

19. Off-balance sheet commitments

a) Commitments given in favor of subsidiaries Guarantees, deposits and comfort letters granted by Capgemini{SE to its subsidiaries at December{31, 2017 break down as follows:

Amount

in thousands of euros

Financial items

97,001

■

1,356,404

Operating items

■

19,300

Tax and other items

■

TOTAL

1,472,705

Guarantees, deposits and comfort letters granted to subsidiaries in respect of financial items provide them with access to local cash facilities in the form of credit lines. Total draw-downs on these credit lines at December{31, 2017 amounted to €21,562{thousand. b) Other commitments The Group has provided performance and/or financial guarantees for a number of major contracts. The clients concerned represented approximately 8% of Group revenue in{2017. Capgemini{SE, together with all of its subsidiaries and any entities which it directly or indirectly owns more than 50%, are insured for the financial implications of any civil or professional liability claims that may be filed against them as a result of their activities. The insurance is part of a worldwide program comprising a number of policies taken out with leading insurance companies. The terms and conditions of this insurance program (including maximum coverage) are regularly reviewed and adjusted to reflect changes in revenues, business activities and risk profiles.

Capgemini{SE granted a financial guarantee in connection with the agreement signed on May{25, 2004 with France Telecom to transfer the management of part of the latter’s telecommunications network for a term of eight{years, renewed on January{1, 2012 for a term of six{years.

c) Financial instruments Currency hedges/Derivative instruments

At December{31, 2017, the values of external currency derivative instruments negotiated in respect of foreign currency denominated internal financing arrangements (loans granted by the Company to its subsidiaries), primarily break down as follows: euro/US dollar currency swaps with a net positive value of €7,151{thousand for a nominal amount of US$508{million (€424{million); a euro/Mexican pesos currency swap with a positive value of X €376{thousand for a nominal amount of MXN144{million (€6{million);

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REGISTRATION DOCUMENT 2017 — CAPGEMINI