CAPGEMINI_REGISTRATION_DOCUMENT_2017

REPORT OF THE BOARD OF{DIRECTORS AND{DRAFT{RESOLUTIONS TO{BE PRESENTED AT{THE{COMBINED SHAREHOLDERS’ MEETING OF MAY{23, 2018

6.1 Resolutions presented at the Ordinary Shareholders’ Meeting

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Amount or accounting value subject to vote €991,668 (paid in 2018)

Presentation

Annual variable compensation

During the Board of Directors’ meeting of February{14, 2018, the Board, based on the audited and approved accounts and at the recommendation of the Compensation Committee, assessed the amount of Mr.{Paul Hermelin’s variable compensation for fiscal year 2017, of a target amount if objectives are attained of €968,000, i.e. 40% of his total theoretical compensation and comprising two equal components, V1 and V2, that may vary between 0% and 200% of the theoretical amount. V1 component: this component is calculated in accordance with quantifiable criteria and the following respective weightings, all relating to the financial results as compared to an ambition decided by the Board: 1) % attainment of the revenue : 30% weighting; 2) % attainment of the operating margin rate: 30% weighting; 3) % attainment of pre-tax net profit: 20% weighting; 4) 2017 Free Cash Flow: 20% weighting. These objectives were assessed with respect to the objectives set by the Board of Directors’ meeting of{February{15, 2017. Attainment rates for these four{objectives were 99.38%, 93.11%, 98.77% and 103.6% respectively, which taking account of the relative weighting of each objective, gives a weighted attainment rate of{98.22%. The Group’s historical calculation formula accelerates actual performance upwards and downwards such that for 2017: if the weighted performance of the above four financial indicators is less than or equal to 75%, ■ the{V1 component will be nil; if the weighted performance of the above four financial indicators is greater than or equal ■ to{125%, the V1 component will be capped and equal to twice its theoretical amount. Accordingly, with this formula, a one point variance in the weighted attainment rate increases or decreases the variable component by 4%. Therefore, application of the formula to the weighted attainment rate of 98.22% in 2017 results in the multiplication of the theoretical variable component by{ 92.89%, giving an amount of 968,000/2*92.89% = €449,588 . V2 component: The evaluation and the associated proposal have been prepared on the basis of the work done by the Compensation Committee which reviewed the various qualitative objectives grouped into three categories: “Digital and Cloud strategic roadmap” for 40%, “the HR and delivery strategy” for 30% and “the growth of the North American market” for 30%. For the first category (Digital and Cloud strategic acceleration-40%) , the Board set three qualitative indicators with an overall 25% weight around i) ensuring the communication of a clear strategic roadmap, an aligned and effective acquisition strategy and targets supporting the roadmap and an associated go to market structure. The overall assessment made by the Board on these three elements were supported by a clear presentation made during the Group “Rencontres” last October in Geneva, five new acquisitions realized or managed in 2017 and a defined road map for the go to market. It was partly balanced by the fact that the go-to-market implementation will only be effective July{1, and that a new major acquisition was announced only in 2018. This led them to evaluate the overall achievement at 96% for this part, the first two being exceeded, while the last one being in progress. For the quantitative measure weighting 15%, the growth of Digital& Cloud offerings was due to be strong in 2017 with a similar trend in the 2018 budget. With a 24% communicated growth in these domains, the Board considered that this quantitative objective has been well exceeded. In regard to the achieved quantified indicators and to the qualitative evaluation, the Board considered that the objectives set for this category have been achieved at 115% .

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REGISTRATION DOCUMENT 2017 — CAPGEMINI