CAPGEMINI_REGISTRATION_DOCUMENT_2017

4

FINANCIAL INFORMATION

4.2 Consolidated Financial Statements

Operating expenses by nature Note{7

2016

2017

Amount % of revenues

Amount % of revenues

in{millions of euros

Personnel expenses

7,611

60.7%

8,002

62.6%

Travel expenses

521

4.2%

516

4.0%

{

8,132

64.9%

8,518

66.6%

Purchases and sub-contracting expenses

2,254

18.0%

2,105

16.4%

Rent and local taxes

380

3.0%

357

2.8%

Other charges to depreciation, amortization and provisions and proceeds from asset disposals

333

2.6%

319

2.5%

OPERATING EXPENSES

11,099

88.5%

11,299

88.3%

Breakdown of personnel costs

Note

2016

2017

in{millions of euros

Wages and salaries

6,151 1,401

6,499 1,434

Payroll taxes

Pension costs related to defined benefit pension plans and other post-employment benefit expenses

24

59

69

PERSONNEL EXPENSES

7,611

8,002

Other operating income and expense Note{8

Notes

2016

2017

in{millions of euros

Amortization of intangible assets recognized in business combinations

13 12

(68) (58)

(65) (71)

Expense relating to share grants

Restructuring costs

(103)

(131)

Integration costs for companies acquired

(68)

(29)

Acquisition costs

(1) (5)

(9) (8)

Other operating expenses

Total operating expenses

(303)

(313)

Other operating income

11

3

Total operating income

11

3

OTHER OPERATING INCOME AND EXPENSE

(292)

(310)

Amortization of intangible assets recognized in{business combinations Amortization of intangible assets recognized in business combinations mainly concerns the Customer Relationship (see Note{13 - Goodwill and intangible assets). Expense relating to share grants The expense relating to share grants is €71{million, compared with €58{million in{2016. This increase mainly reflects the full-year impact of the 2016{International Plan approved by the Board of Directors on July{26, 2016 and the implementation of the new 2017{plans approved by the Board of Directors on July{26, 2017 and October{5, 2017 as well as the increased cost of social security contributions for the new plans. This increase also reflects the progressive increase in the Capgemini{SE share price. (see Note{12 - Equity).

Restructuring costs Fiscal year{2017 restructuring costs primarily concern workforce reduction measures in the amount of €94{million (€91{million in{2016) and the streamlining of real estate and production assets in the amount of €31{million (€7{million in{2016). Integration costs for companies acquired Integration costs for companies acquired total €29{million and mainly consist of earn-outs comprising conditions of presence. In{2016, integration costs mainly concerned the integration of the IGATE group and primarily comprised the cost of consultants involved in the integration and expenses relating to incentive instruments granted to IGATE employees.

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REGISTRATION DOCUMENT 2017 — CAPGEMINI