CAPGEMINI_REGISTRATION_DOCUMENT_2017

FINANCIAL INFORMATION

4.1 Analysis of Capgemini Group 2017 consolidated results

Headcount At December{31, 2017, the total Group headcount is 199,698{employees compared with 193,077{employees one year earlier. This 6,621{net increase (+3.4%) reflects: 53,693{additions; and X 47,072{departures (including 38,578{resignations), representing a X weighted attrition rate of{18.9% (compared with{18.3% in{2016). Order book Bookings totaled €12,890{million during the year, slightly higher than{2016{bookings of €13,027{million (+1% at constant exchange rates), with a book-to-bill ratio of{1.01. Significant events of{2017 2017{marks the 50 th {year of the Group founded by Serge Kampf. In October, Capgemini launched its new brand identity using three{fundamental differentiators to reflect Capgemini’s unique character and strengths as a business partner: dynamism, precision and people. Key events during the year at Group level included: the appointment by the Board of Directors on October{11, 2017 of Thierry Delaporte and Aiman Ezzat as Chief Operating Officers. These appointments took effect on January{1, 2018 and form part of management transition preparation measures announced by Paul Hermelin at the{2017{Shareholder’s Meeting; the success of the fourth{employee share ownership plan X aimed at associating employees with the development and performance of the Group (November). This plan was subscribed 124%. The new Employee Share Ownership Plan (ESOP) of 3.6{million shares helps maintain employee share ownership at close to{5% of the capital. The dilutive effect of the capital increase was neutralized by share purchases under the share buyback agreement. In reducing the share capital by 1.8% (3.1{million shares) over{2017, Capgemini demonstrated its ability to associate employees with the development and performance of the Group while delivering an attractive return to shareholders. On the financial front, the Standard{&{Poor’s financial rating agency upgraded Capgemini’s outlook from stable to positive, confirming its BBB{long-term credit rating. This decision mainly reflects growing confidence in the Group’s continued solid financial performance (May). In{2017, the Group reached a major operating milestone in its growth-driving transition to Digital and the Cloud. This included a number of focused acquisitions to accelerate the process in certain areas: the Group strengthened its leadership in Digital and omnichannel commerce with the announcement of the acquisition of Itelios in March, followed by the US company, Lyons Consulting Group, in November. These teams of experts design, develop and implement e-commerce solutions for leading retail and B2B brands. These solutions help set them apart from the competition and build client loyalty, offering a unified customer journey across Digital, social, mobile and

in-store experiences. The acquisition of these specialists, reputed for delivering Salesforce Commerce Cloud e-commerce solutions, also positions the Group as a global leader for Salesforce Commerce Cloud solutions; the Group also completed two{focused acquisitions in North X America in February: Idean, with its network of Digital studios, boosts the Group’s Digital transformation and experience design consultancy offering, while TCube Solutions, a specialist in Duck Creek insurance software, strengthens the Group’s expertise in this major sector. Capgemini equally continued to develop an innovation-friendly ecosystem: the Group expanded its global network of innovation centers, X adding two new Applied Innovation Exchanges (AIE). The Singapore AIE offers an extensive service portfolio, focusing on data analysis, visualization, artificial intelligence and cognitive IT{solutions (February). A further innovation center was opened at the heart of New York’s Silicon Alley, bringing together the Fahrenheit{212{teams that joined the Group in{2016 (October); Capgemini launched the Serge Kampf Awards to recognize X outstanding innovation and entrepreneurship worldwide (February); the Group also again organized the InnovatorsRace50, a X worldwide competition for early stage start-ups to showcase the potential of their projects and services (April and June). These initiatives helped strengthen Capgemini’s Digital leadership, as demonstrated by the range of engagements and contracts won across many economic sectors. The Group communicated on these wins and particularly: in the Retail & Consumer Goods sector: Capgemini announced in August an iconic multi-year ❚ contract to become McDonald’s global strategic provider and accelerate its Digital technology innovation and transform the customer experience. With this contract, the Group shows it can be the Digital innovation partner of the most prestigious international clients and leverage a strategic alliance initiated by IGATE, acquired in{2015, the Group was also selected to transform the customer ❚ experience of a leading American cruise line (April) and a French international retailer (July). Capgemini built a Data{Lake with advanced analytical modeling and deployed a CRM Cloud system for the cruise line and implemented several Digital Marketing solutions for the French retailer, from advanced customer data analysis to focused marketing campaigns, the Group won a contract to implement its Odigo platform ❚ at a European chain store’s contact center to improve customer relationship management (July); in the Manufacturing sector: X the Group won several major deals, including with a German ❚ automotive supplier (April) and a leading aircraft manufacturer (July). The Group’s Digital Manufacturing offerings launched in{2016 and strong dynamics around product life-cycle management solutions underpinned these wins,

4

175

REGISTRATION DOCUMENT 2017 — CAPGEMINI