CAPGEMINI_REGISTRATION_DOCUMENT_2017

PRESENTATION OF THE GROUP AND{ITS{ACTIVITIES

1.4 Capgemini market and the{competitive{environment

Competition Our global marketplace is rapidly evolving and we compete with a variety of organizations that offer solutions comparable to ours: Traditional Global Players (e.g., Accenture, IBM, Atos or CGI) X Advisory Service Players (e.g., Deloitte, KPMG, PwC or EY) Indian Players (e.g., TCS, Infosys, Cognizant, Wipro or HCL); X Regional and Boutique Players (e.g., Sopra Steria or Tieto) We also observe the emergence of Digital Agencies focused on Digital Marketing for instance SapientRazorfish or divisions of global players such as Accenture Interactive or Deloitte Digital. The main competitive factors that we believe exist in the marketplace are: ability to deliver – in both individuals and products; X expertise - in business, technology as well as industry knowledge; Trends As the market continues to evolve and clients look to harness the benefits of new solutions with an emergence of new enterprise buyers, it is important to stay close to our clients’ decision-makers, which now include marketing and operational Executives, to meet their new needs. This reflects a buoyant and natural market position for Capgemini. Rapid innovation continues across all market segments. Consultants and Systems Integrators are acquiring and building new capabilities to address the broader digital spend. IT service providers are re-focusing efforts on new solutions and setting up digital centers of excellence to be more responsive to client needs. In addition, intelligent automation is pushing clients to assess their core processes and address the opportunity for increased digitization. We see a market where, as a function of digital transformation, digital spend alignment has been disrupted from functional silos to a cluster orientated around the value chain: The true “end to end customer experience” (digital customer X engagement, digital marketing, systematic and algorithmic use of data, interactions on all platforms/channels, AI, etc.). The industrial revolution (with digital manufacturing). X

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innovation – through partner ecosystems, services and X product offerings; reputation and integrity – in both testimonials and client X references; value – in adding and improving business performance; pricing – in contractual terms and pricing; X service and scope – in bringing the right people and products X to clients; delivery – quality results on a timely basis; X global reach and scale – in providing the right level of X presence in key markets. Our clients typically use multiple service providers to address their professional services needs from strategy to operations. Business platforms to drive efficacy and efficiency and enable the emergence of new business models. All powered by “the new” infrastructure (cloud centric) - while X leveraging existing Core IT assets and investments. This disruption is underpinned by: Digital transformation is now the new normal, and is X consistently driving a new digital landscape for the enterprise based on the key foundations of CORE IT. According to Gartner, through 2020 50% of IT services market growth will be directly attributable to digital technologies. The infusion of increasingly ubiquitous and transversal digital X enablers (AI, deep learning, analytics, automation, DevOps, public or hybrid cloud) whilst protecting from cyber-attacks. The speed of adoption of new technologies is changing business behavior as the new products and services become a major driver for companies’ profitability, thus bringing CMO/CXOs to join the CIO (IT) in exploring and applying new technologies across the value chain. Therefore, CMO/CXOs have an increasing influence on technology spend.

Technological needs related to marketing expenses (mainly managed by CMO)

the provider landscape for Digital Agencies is extremely X complex with high levels of fragmentation; CMOs are increasingly looking for partners who can provide a X full range of end to end customer engagement and experience services.

Marketing budgets are rising as CMOs are increasingly responsible for the end to end customer experience{ (1) : CMOs are increasingly reliant on service providers to realize X their marketing outcomes; CMOs are allocating 10% of budget to spend on innovation X according to Gartner;

Source: Gartner CMO Spend Survey 2016-2017 (Oct 2016) and CMO Spend Survey 2017-2018 (Oct 2017) (1)

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REGISTRATION DOCUMENT 2017 — CAPGEMINI