Cap Gemini - Registration Document 2016

4

FINANCIAL INFORMATION

4.2 Consolidated financial statements

Cash-generating units and asset impairment tests Note 15

comparable transactions; binding agreement or the market price in recent and transaction and is determined with reference to the price in a fair value is the amount obtainable in an arm’s length ◗ be derived from these cash-generating units. value in use is based on the discounted future cash flows to ◗ using the discounted future cash flow method, based on the The value in use of each cash-generating unit is measured extrapolated over a period of five years, including growth and various assumptions in the three-year strategic plan possible and charged under “Other operating income and impairment loss is deducted from goodwill to the extent cash-generating unit is less than its carrying amount, the value the Group. When the recoverable amount of a projections by financial analysts who use these indicators to of cases on the average of a representative sample of rates for the period beyond five years are based in the majority on the weighted average cost of capital) and long-term growth expenses”. profitability rates considered reasonable. Discount rates (based

Cash-generating units

geographic areas. The cash-generating units identified by the Group represent impairment tests indication at the period end that their recoverable amount may definite useful life are tested for impairment when there is an Intangible assets and property, plant and equipment with a year. indefinite useful life are tested for impairment at least once a be less than their carrying amount. Goodwill and assets with an assets or groups of assets (cash-generating units or CGU). that are separate from the cash flows generated by other amount of each asset or group of assets generating cash flows The impairment test consists of assessing the recoverable use: less costs to sell of the cash-generating unit and its value in The recoverable amount is defined as the higher of the fair value

Goodwill per cash-generating unit €3,092 million was allocated to the different Group cash-generating units at December 31, 2015 benefitting from this acquisition. The allocation of goodwill to cash-generating units breaks down as follows, noting that the goodwill arising on the IGATE acquisition of The changes in groupings performed for segment reporting purposes did not impact the cash-generating units presented by the Group (see Note 4, Operating segments).

December 31, 2015

December 31, 2016

amount Net carrying

amount Net carrying

Gross value Impairment

Gross value Impairment

in millions of euros

North America

2,114 1,450 1,062

(8) (1)

2,106 1,449 1,062

2,193 1,469 1,014 1,003

(8) (1)

2,185 1,468 1,014

France

United Kingdom and Ireland

-

-

Benelux

992 129 295 407 560 139

(12)

980 129 295 375 560

(12)

991 132 297 388 581 120

Southern Europe Nordic countries

- -

132 297 420 581 170

- -

Germany and Central Europe

(32)

(32)

Asia-Pacific

-

-

Latin America GOODWILL

(40) (93)

99

(50)

7,148

7,055

7,279

(103)

7,176

200

Registration Document 2016 — Capgemini