Cap Gemini - Registration Document 2016

4

FINANCIAL INFORMATION

4.1 Analysis on Capgemini 2016 Group consolidated results

Operations by business

overall stable compared to 2015 and reached 70% in the last quarter. The operating margin stood at 10.7% of revenues compared with 9.1% in 2015. Kingdom and the Rest of Europe region. The utilization rate was improved 120 basis points to 12.8% in 2016. Technology & Engineering Services (15% of Group revenues, previously known as Local Professional Services) grew 6.9% at constant exchange rates. Growth in the Rest of Europe and North America regions more than offset the slight slowdown persisting in France, and adds to the IGATE impact. The operating margin Application Services (60% of Group revenues) growth was a strong 10.6% at constant exchange rates. In addition to the positive IGATE impact, growth was driven by strong momentum in Europe - notably France, the United Kingdom, Germany and Scandinavia - and Asia. Application Services are also the first beneficiary of the rapid development of Digital and Cloud services. The operating margin rate is 12.7%, up 80 basis points on 2015. despite growth in Business Services (Business Process Other Managed Services (21% of Group revenues) reported a 2.2% increase in revenues at constant exchange rates in 2016. Excluding changes in Group scope, revenue is down year-on-year Outsourcing and platforms). The pressure from the transition to the Cloud on traditional infrastructure services was accentuated this year by the decline in the UK public sector, which was anticipated at the beginning of the year, but also lower equipment resale. The operating margin rate at 10.0% is up 40 basis points on 2015.

4% Consulting Services

21% Other Managed Services

15% Technology and Engineering Services

60% Application Services

the other businesses. Overall, the activity volume increased by more than 5.0%. This increase was driven notably by the United Consulting Services (4% of Group revenues) grew 2.7% at constant exchange rates and is supplemented by the rapid development of Digital Consulting Services initiated and billed by

Results by business

Revenues (in millions of euros)

2015

2016

Consulting Services

480

506

Technology and engineering services

1,744 6,997 2,694

1,873 7,557 2,603

Application Services

Other Managed Services

TOTAL GROUP

11,915

12,539

Operating margin (as a % of revenues)

2015

2016

Consulting Services

9.1%

10.7% 12.8% 12.7% 10.0% 11.5%

Technology and engineering services

11.6% 11.9%

Application Services

Other Managed Services

9.6%

TOTAL GROUP

10.6%

production employees. 2015 utilization rates have been computed to better take into account the onshore/offshore mix. It should be The following table presents the utilization rates (on a like-for-like basis) measuring the percentage of work time, excluding vacation, of number of graduates recruited in offshore production centers. noted that the year-on-year decrease in the utilization rate in Application Services at the end of the year is mainly attributable to the high

2015

2016

Utilization rate

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Consulting Services

71% 71% 68% 70% 70% 71% 68% 70% 81% 82% 84% 83% 82% 83% 83% 83% 81% 81% 82% 83% 81% 81% 82% 81%

Technology and Engineering services

Application Services

164

Registration Document 2016 — Capgemini