Cap Gemini - Registration Document 2016

4

FINANCIAL INFORMATION

4.4 2016 Financial statements

Provision reversals of €759,312 thousand comprise reversals of provisions for impairment of equity interests, notably in respect of reversal of the provision for financial risks on a call option on own shares settled during the year in the amount of €113,516 thousand. European subsidiaries in the amount of €474,273 thousand and Asia-Pacific subsidiaries in the amount of €171,380 thousand and a The dividends of €68,926 thousand correspond to dividends received during the period by the Company from its subsidiaries.

18. Net non-recurring income (expense)

Amount

(in thousands of euros)

Net proceeds on disposals of treasury shares under the liquidity agreement

(779) (779)

Sub-total

Loss on the delivery of treasury shares

(69,839) (97) (69,936) (70,715)

Other

NET NON-RECURRING INCOME (EXPENSE)

19. Income tax expense

S.A. recognized an income tax expense in respect of the tax consolidation of €9,002 thousand. In France, Cap Gemini S.A. is the parent company of a French tax consolidation group comprising 19 companies. In 2016, Cap Gemini losses carried forward by Cap Gemini S.A. amounted to €649,681 thousand at December 31, 2016. In the absence of tax consolidation, Cap Gemini S.A. would have recognized a theoretical income tax expense of €30,810 thousand. Tax

Breakdown of the income tax expense

2016

tax Net profit before

expense Income tax

(in thousands of euros)

Recurring profit before tax

1,029,346 (70,715) 958,630 (766,519)

(331,888)

■

Net non-recurring income (expense) ■ Accounting profit for the year before tax ■

22,800

(309,088) 247,146 31,132 22,375 (8,434)

Tax differences

■

Offset of tax losses carried forward ■ Tax consolidation of subsidiaries ■

(96,556)

-

INCOME TAX EXPENSE

Impact of tax-driven valuations

Amount 950,196

(in thousands of euros)

Profit for the year

Income tax expense (net)

8,434

Profit for the year before tax Change in tax-driven provisions: Accelerated depreciation ■

958,630

- -

Other tax-driven valuations

EXCLUDING TAX-DRIVEN VALUATIONS (BEFORE TAX)

958,630

250

Registration Document 2016 — Capgemini