Cap Gemini - Registration Document 2016

PRESENTATION OF THE GROUP AND ITS ACTIVITIES

1.7 Risk analysis

Employees

proposals, often in several stages, to the signature of a contract) of the main characteristics of the opportunity, in particular as regards technical, financial and legal matters. operational structure and at the different stages of the selling process (from identification of an opportunity as investment- worthy from a Group perspective and the submission of service validation, at the various organizational levels of the Group’s ◗ meeting pre-defined criteria concerning size and complexity is the sole responsibility of the Group Review Board. For particularly complex projects, a review of solutions may be carried out during the final pre-sale phase in order to bring to the Group Review The decision to commit the Group to commercial opportunities Board’s attention any potential risks relating to the performance of these projects. 2. Production and quality control The Group has approved policies for monitoring the proper performance of contracts that are applied throughout the life of the project to ensure that it runs smoothly. The key features of these policies include: costs to completion, joint oversight arrangements with the clear definition of the roles and responsibilities of each individual ◗ regarding performance and supervision throughout the entire production process, in particular as regards the choice of project leader, client relationship management, billing, estimation of client, etc.; use of proprietary production methodologies in all of the ◗ Business Units; global access to the expertise available through Capgemini’s ◗ Applications Development Centers; monthly Group-wide identification of all risk-sensitive projects in ◗ the performance phase, and the implementation of action plans aimed at eliminating or containing such risks; commissioning independent technical audits of the teams in ◗ charge of a given project to identify additional risks in cases where actual performance appears to diverge from forecasts or from commitments undertaken. These engagements are carried out by the Production/Methods and Support Department, and complement the upstream independent technical audits carried out by the Business Units as a preventative measure for operational risks. project financial controllers whose role is to: Depending on its size, each Business Unit has one or more monitor the financial aspects of each project and primarily the ◗ approved. Progress reports and management indicators are built into the monitoring process, which relies mainly on the periodic analysis of estimated costs to completion and their accounting impact; related production costs compared to the budget initially permanently control compliance with contractual commitments - particularly billing and payment milestones. 3. Business control

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Risk factors

development of our employees. technical expertise necessary to the performance of client projects to which it has committed. In particular, this requires a strong reputation in the employment market and ensuring fair appraisal and promotion procedures as well as the professional The vast majority of the Group’s value is founded on its human capital and its ability to attract, train and retain employees with the The loss of talent or a team could also follow an acquisition or a change in Group or entity management. diversity, equal opportunity and good working conditions. Group Management has published a Code of Business Ethics and oversees its application. Nevertheless, in the event of an industrial The Group pays close attention to internal communication, dispute or non-compliance with local regulations and/or ethical standards, the Group’s reputation and results could be adversely affected. Figures concerning, in particular, the attrition rate, the utilization rate, changes in headcount (including in offshore countries), career management, the development of expertise, building employee loyalty and the level of employee commitment are presented in the Chapter 3 “Capgemini : People, Corporate Social Responsibility (CSR) and Business Ethics”. This survey is an appraisal tool and action plans are established based on identified results. The Group pays very close attention to the quality of its human resource management and employee commitment. Accordingly, an internal survey is conducted very regularly aimed at measuring commitment and expectations among the Group’s employees. is being rolled-out globally by the Group Human Resources Department to ensure the comprehensive management of all processes concerning the management of high-performing individuals and enabling a uniform approach to monitoring Furthermore, a human resources management information system performance, the career plans of our employees, the management of international mobility and succession plans, in a manner consistent with the strategic objectives of the Group and the interests of our clients. European countries but also includes representatives of the main countries outside Europe (India, United States and Brazil). The The Capgemini Group International Works Council covers not only Group’s key managers regularly attend meetings to present changes in the Group and the main challenges facing it, and discuss them with employee representatives in an open manner and an environment of mutual understanding. Finally, as part of our “People Matter, Results Count” policy, we take account of: the motivation and career path of our employees; ◗ the implementation of varied and attractive career plans; ◗ the development of our employees through development and ◗ training programs; the respect and promotion of a good work-life balance. ◗ Risk management systems

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Registration Document 2016 — Capgemini