CAPGEMINI_REGISTRATION_DOCUMENT_2017

FINANCIAL INFORMATION

4.2 Consolidated Financial Statements

2016

2017

in{millions of euros

Profit for the year attributable to owners of the Company

921

820

Finance cost savings linked to the conversion of “ORNANE{2013” convertible bonds, net of tax

20

-

Diluted profit for the year attributable to owners of the Company

941

820

Weighted average number of ordinary shares outstanding

169,450,721

168,057,561

Adjusted for: “ORNANE 2013” convertible bonds

5,305,591 4,201,908

-

Performance shares and free shares available for exercise

4,024,561

Redeemable Share Subscription or Purchase Warrants (BSAAR)

122,560

-

Weighted average number of ordinary shares outstanding (diluted)

179,080,780

172,082,122

5.25

4.76

DILUTED EARNINGS PER SHARE (in euros)

Normalized earnings per share

4

2016

2017

in{millions of euros

Profit for the year attributable to owners of the Company

921 212

820 226

Other operating income and expenses, net of tax calculated at the effective tax rate

Normalized profit for the year attributable to owners of the Company

1,133

1,046

Weighted average number of ordinary shares outstanding

169,450,721

168,057,561

NORMALIZED EARNINGS PER SHARE (in euros)

6.69

6.22

Equity Note{12

Incentive instruments and employee share ownership a) Instruments granted to employees Shares subject to performance and presence conditions Performance shares are granted to a certain number of Group employees, subject to performance (internal and external) and presence conditions. Share grants become definitive after a vesting period of at least three{years since July{2016 or four years, depending on the tax residence of the beneficiary. The shares are measured at fair value, corresponding to the value of the benefit granted to the employee at the grant date. The fair value of shares subject to external performance conditions is calculated using the “Monte{Carlo” model, which incorporates assumptions concerning the share price at the grant date, implicit share price volatility, the risk-free interest rate, the expected dividend yield and market performance conditions. The fair value of shares subject to internal performance and/or presence conditions is calculated using a model in compliance

with IFRS{2, which incorporates assumptions concerning the share price at the grant date, share transfer restrictions, the risk-free interest rate and the expected dividend yield. The expense recognized also takes into account staff attrition rates for eligible employee categories, which are reviewed each year and internal performance conditions (non-market conditions). This amount is recognized in “Other operating income and expense” in the Income Statement on a straight-line basis over the vesting period, with a corresponding adjustment to equity. b) Instruments proposed to employees Redeemable share subscription or purchase warrants (BSAAR) Redeemable share subscription or purchase warrants were proposed to employees and corporate officers of the Group. They conferred entitlement to subscribe for Capgemini{SE shares at a strike price determined at their date of acquisition by the employees and corporate officers of the Group.

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REGISTRATION DOCUMENT 2017 — CAPGEMINI