CAPGEMINI_REGISTRATION_DOCUMENT_2017

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CORPORATE GOVERNANCE - RISKS{AND INTERNAL{CONTROL

2.5 Risks and internal control

Risk management systems The Group strives to strengthen the governance and management resources of its main pension funds. The investment strategy of its main pension funds, encompassing the management of assets and liabilities, is reviewed and monitored periodically with the aim of reducing volatility. Increased life expectancy is taken into account as and when it is recognized by actuaries. Group commitments to fund pension and other post-employment benefit shortfalls comply with local regulations. Certain risks are transferred to the insurance market. f. Insurance The Group risk management and insurance policy encompasses the identification, assessment, prevention, protection and transfer of all or part of the risks relating to individuals, its assets and equipment under the Group's responsibility. The Group's strategy for transferring risks to the insurance and reinsurance market is to adjust insurance coverage to reflect the estimated maximum exposure to each of the Group’s major risks: the maximum replacement value of assets to be insured, or in the case of liability insurance, an estimate of its own risks and reasonably foreseeable third party risks in its business sector, taking account of local insurance obligations, legislation and specific risks in each country and the emergence of new risks, as well as changes in major exposure under contacts signed with clients. Deductibles and retentions are set so as to encourage Business Unit managers to commit to risk prevention and protection and seek out-of-court settlement of claims, without exposing the Group as a whole to significant financial risk. The Group Insurance Department reports to the Group Finance Department and is responsible for the design, placement and monitoring of all non-life insurance policies. The management and coordination of employee benefits insurance is overseen by a joint governance body representing the Finance Department and the Group Human Resources Department. This insurance program, which is key for clients, is designed, taken out and managed centrally at Group level. Capgemini SE and all subsidiaries in which it has a stake of 50% or more (direct or indirect control), are insured by a worldwide integrated Group insurance program covering the financial consequences of their commercial general liability and professional indemnity, i.e. , any damage caused to third parties within the course of our usual business activities, anywhere in the world. This insurance program is structured in layers contracted with highly reputable leading insurance companies. The terms and conditions of this program, including coverage limits, are periodically reviewed and adjusted to reflect changes in risk exposure, due particularly to legislation, the Group's activities, new countries where Capgemini operates and changes in client contracts, as well as changes in the worldwide insurance and reinsurance markets. Commercial general liability and professional indemnity

The €20{million primary layer of this program is reinsured through a consolidated captive reinsurance subsidiary and has been in operation for several years. Property damage and business interruption The Group has set-up an integrated property damage and business interruption insurance program covering all of its subsidiaries worldwide. Its real estate policy is to rent rather than to buy its business premises. It owns little property, except in India where high growth and the large number of employees justify owning real estate. Capgemini's business premises are located in a wide variety of countries, and the Group operates at multiple sites in most of them. The Group has slightly over 360 sites with an average surface area of 4,100{square meters. Some of the Group's consultants work off-site at client premises. This geographic dispersion limits risk, in particular the risk of loss due to business interruption that might arise from an incident at a site. The Group's largest site, which is located in India, employs nearly 8,900 people in a number of different buildings.{Client and supply shortage risk is assessed and insured to the extent possible, based on knowledge of the materiality of the risk and the available offering in the insurance market. Employee benefits and mobility insurance The Group uses specialist companies to train and assist its employees throughout the world. Risks concerning medical emergencies, personal security, assistance and repatriation of employees working outside their home countries, is managed centrally at Group level via global insurance policies. Employee benefits insurance programs (death and disability, healthcare, medical costs, life and pensions, etc.) are tied to the different benefits received by employees and are generally managed by the Human Resources Departments in each country. The Group Insurance and Human Resources Departments are jointly responsible for the management and international coordination of these programs. Decision are made jointly by the Group and the countries in compliance with the governance structure. The main objectives are (i) to comply with local insurance obligations, (ii) to comply with local legislation, (iii) to develop, standardize and improve current coverage, in accordance with the different regulations in the relevant countries and coverage standards integrating best local practice and the Group’s businesses, while optimizing alternative risk transfer/financing mechanisms. Other risks Crime and fidelity coverage (especially for information systems) is managed centrally at Group level via a global insurance program. Other risks - including motor vehicle, transport of goods, and employer liability for workplace accidents - are insured locally using insurance policies that reflect local regulations. Pollution risks are low in an intellectual services business, and Capgemini is not specifically insured against these risks in any country in which it operates. Some risks are excluded from coverage or restricted under the general conditions imposed by the insurance and reinsurance market.

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REGISTRATION DOCUMENT 2017 — CAPGEMINI