Cap Gemini - Registration Document 2016

4

FINANCIAL INFORMATION

4.2 Consolidated financial statements

Recognized deferred tax assets Deferred tax assets and movements therein break down as follows:

Provisions for pensions and other post- employment benefits

on amortizable goodwill Temporary differences

deductible temporary differences Other

Tax loss carry- forwards

Total deferred tax assets

Note

in millions of euros

At January 1, 2015 Business combinations Translation adjustments

562

90

315

98

1,065

13 28

-

4 7

(66)

(49)

(2)

(9) 43

24

Deferred tax recognized in the Income Statement Deferred tax recorded in income and expense recognized in equity Other movements, including offset with deferred tax liabilities

10

440

(48)

(13)

422

(1)

-

7

11

17

(98) 944

-

(24) 296

55

(68)

At December 31, 2015 Business combinations Translation adjustments

40

132

1,412

-

-

-

2

2

20

9

(17) (15)

(1)

11 35

Deferred tax recognized in the Income Statement recognized in equity Deferred tax recorded in income and expense

10

(46)

120

(24)

(27)

- -

22 (5)

12 10

7 6

Other movements

1

A U DECEMBER 31, 2016

892

169

281

131

1,473

Recognized tax loss carry-forwards total €895 million at amount of €638 million (US$672 million) and France in the amount December 31, 2016 and primarily concern the United States in the of €237 million. carry-forwards US deferred tax assets and tax loss The acquisition of Ernst & Young’s North American consulting over a period of 15 years, of the difference between the business in 2000 gave rise to the amortization for tax purposes, and liabilities acquired. Since 2000 and up to May 2015, the acquisition price of the business and the tax base of the assets annual amortization charge has been deducted each year from US of 20 years. tax profits. Annual tax losses can be carried forward for a period

At December 31, 2016, the cumulative amount of US tax losses carried forward totaled €2,695 million (US$2,840 million). Following the use and recognition in 2016 of net deferred tax and US$21 million (€19 million), respectively, the balance was assets on other timing differences of US$138 million (€125 million) remeasured resulting in the recognition of a net deferred tax asset unchanged on December 31, 2015, including tax loss of US$695 million (€659 million) at December 31, 2016, base of US$1,736 million (€1,647 million). carryforwards of US$672 million (€638 million) representing a tax of US$1,104 million (€1,048 million). Unrecognized deferred tax assets therefore represent a tax base

202

Registration Document 2016 — Capgemini