Cap Gemini - Registration Document 2016

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PRESENTATION OF THE GROUP AND ITS ACTIVITIES

1.7 Risk analysis

Risk analysis 1.7

Identification of risks 1.7.1

Audit, Ethics & Compliance, Finance, Insurance, Legal, Human Resources and Security & Mobility Departments. This risk analysis section was drafted jointly by several Group stakeholders of particular note among the departments that play a key role in identifying and controlling major risks are the Internal The overall risk management and internal control system is described in section 2.5 of this Registration Document. When updating the mapping of its major risks, a process that was launched at the end of 2015 and finalized in the first quarter of 2016, Capgemini Group assessed the risks likely to have a significant negative impact on its activity, financial position or results. The risks presented below are the result of this work analysis. such, the main risks to which the Group is exposed are (i) failure to deliver the services to which it has committed; (ii) failure to deliver services within the contractual timeframe and to the required level of quality; or (iii) infringement, notably through human error, of client or third party obligations. In the course of its consulting activities, the Group has an obligation to provide information and Capgemini is a service provider and consulting group, and as could incur liability should it fail to do so. Furthermore, in a rapidly changing technology environment, the Group must constantly ensure it adapts to new client product and service expectations. factors The Group’s growth and financial results may be adversely affected by a general downturn in the IT service sector or in one of reduction measures in the business units affected. Capgemini’s other key business segments. A shake-up resulting in a change of ownership at one of Capgemini’s clients or a decision not to renew a long-term contract may have a negative effect on revenue streams and require cost-cutting or headcount The general economic context and more precisely restrictions affecting public bodies in the various countries subject to budgetary efforts, may weigh on our revenues. A continued slowdown in the activity of certain economic sectors in which our clients operate would also limit their ability to invest and accordingly impact the results of the Group in a certain number of segments. ability to attain its objectives and continue its development. Finally, and more generally, a major crisis impacting the financial markets or unfavorable trends in macro-economic indicators could, due to the extent of their impacts, restrict the Group’s Economic risks

Climate risk management systems are in section 3.

alliance” risks, as they are considered immaterial at Group level at the time of preparation of this report. Furthermore, in accordance with the latest Autorité des Marchés Financiers ( AMF - the French financial market authority) recommendations on the specific nature and importance of risks reported by issuers, Capgemini no longer reports on “Strategic Nonetheless, it remains possible that changes in economic conditions or the legal environment could give rise to certain risks not currently identified as material that could impact the results of the Group, its objectives, reputation or the share price.

Risks relating to operations and the strategy 1.7.2

anticipate, could adversely affect the Group’s business, results of operations, financial condition and cash flows. addition, Brexit could lead to legal uncertainty and potentially divergent national laws and regulations as the United Kingdom determines which European Union laws to replace or replicate. Any of these effects of Brexit, and others the Group cannot Union (“Brexit”). Brexit could adversely affect European or worldwide economic, market conditions and could contribute to instability in global financial and foreign exchange markets, including volatility in the value of the pound sterling or the euro. In In this respect, the United Kingdom held a referendum on June 23, 2016 in which a majority voted to exit the European changes on its own businesses and those of its clients. The Group monitors and anticipates, as far as possible, macroeconomic developments at global level, by closely monitoring the quality of the clients in the markets where it operates, as well as analyzing the potential impacts of these While a substantial proportion of the Group’s operations depends on its clients’ investment capacity, the fact that the Group is Risk management systems organized around medium-sized Business Units close to their target market allows for rapid responsiveness to changes. taken by the United Kingdom and the European Union. The Group is going to monitor the evolution of Brexit in order to take measures to reduce this risk depending on the decisions

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Registration Document 2016 — Capgemini