Cap Gemini - Registration Document 2016

4

FINANCIAL INFORMATION

4.2 Consolidated financial statements

Accounts and notes receivable Note 19

At December 31 (in millions of euros)

Note

2015

2016 1,996

Accounts receivable

1,924

Provisions for doubtful accounts

(15)

(27)

Accrued income

1,037 2,946

1,012 2,981

Accounts and notes receivable, excluding capitalized costs on projects

22 22

Capitalized costs on projects

109

93

ACCOUNTS AND NOTES RECEIVABLE

3,055

3,074

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

At December 31 (in millions of euros)

Note

2015

2016 2,981

Accounts and notes receivable, excluding capitalized costs on projects

22 22

2,946

Advances from customers and billed in advance

(739)

(737)

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

2,207

2,244

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)

in 2015) and were therefore derecognized in the Statement of Financial Position at December 31, 2016. In 2016, receivables totaling €66 million were assigned with transfer of credit risk as defined by IAS 39 to a financial institution (€43 million

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-2016, past due balances totaled €341 million, representing 17.3% of accounts and notes receivable less provisions for doubtful accounts. The breakdown is as follows:

<90 days >30 days and

<30 days

>90 days

in millions of euros

Net accounts receivable

206

88

47

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

10.4%

4.5%

2.4%

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 any of its clients, business sectors or geographic areas present a significant credit risk that could materially impact the financial position of the Group as a whole.

Past due balances concern accounts receivable from clients which are individually analyzed and monitored.

Credit risk The Group’s 5 largest clients contribute around 11% of Group revenues (stable on 2015). The top 10 clients collectively account for 16% of Group revenues. The solvency of these major clients

206

Registration Document 2016 — Capgemini