CAPGEMINI_REGISTRATION_DOCUMENT_2017

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PRESENTATION OF THE GROUP AND{ITS{ACTIVITIES

1.4 Capgemini market and the{competitive{environment

Industry 4.0 The industrial revolution will become an increasingly fertile market space, with spend controlled by a range of CxO stakeholders. For example, autonomous vehicles have a tremendous complexity, each car having millions of lines of IT code embedded in each car combined with sensors and computing power. Capgemini is well positioned to bring value across the end to end customer experience and Industry 4.0 space. Core IT remains the largest market with growth opportunities linked to the enhancement, upgrade or replacement of existing systems driven by business requirements (regulation, new markets…) or technology evolution such as Artificial Intelligence, Automation, Blockchain, Cybersecurity or Cloud. Going forward, we foresee an increasing importance of digital and cloud in the Group offering mix (38% of Group revenue in 2017). According to Gartner market reports, over 50% of growth in IT spending in the next 5 years will come from digital and cloud. Therefore, we should notice the following in the forthcoming years: An increasingly fragmented marketing technology and X advertising technology market: CMO and digital stakeholders will seek guidance and support in how they execute their end to end customer experiences. The increase in complex, embedded systems for autonomous X vehicles (cars, trucks, drones and in the longer term, aircraft and shipping).

The deployment of IoT solutions for both the connected X home, with multiple devices controlled by mobile and voice, and industry, supporting highly connected and intelligent production capabilities. The rise of artificial intelligence driving increases in both X business and consumer productivity, and increasingly embedded into both existing and new IT platforms & applications. Automation as a driver for time to market, scalability, quality X and cost reduction. Continued growth of the “data disruptors” – e.g. Amazon, and X Alphabet with their highly capable, data driven ecosystems Growth of cloud technologies and services (IaaS, PaaS, SaaS, X BPaaS) coupled with the requirements for integration and security. The integration of virtual personal assistants (e.g. Alexa, Siri, X Google assistant) into both services and devices (e.g. office, hotel room, cars, kitchens). Continued experimentation with Blockchain X Such disruptions continue to contribute to our clients’ desire to harness disruption to enable Digital Transformation at each level of their business. The ongoing challenge of integration – developing, connecting, integrating, testing and securing - the existing IT investments and new capabilities presents significant opportunity for systems integrators as clients look for the scale, experience and reach to execute at an enterprise level.

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REGISTRATION DOCUMENT 2017 — CAPGEMINI