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CapGemini
Capgemini is a French multinational management consulting corporation headquartered in Paris,
France. It is one of the world's largest consulting, technology and outsourcing companies with
180,000 employees in over 40 countries. It was founded in 1967 by Serge Kamph in Grenoble,
France. The company has been led by Paul Hermelin, the chairman and CEO of the Capgemini
group, ever since his appointment in December 2001.
Capgemini's regional operations are North and South America, Northern Europe & Asia Pacific and
Central & Southern Europe. Services are delivered through four disciplines; Consulting, Technology,
Outsourcing and Local Professional Services.
Les Fontaines, a mansion in Chantillly, France, used by Capgemini as a training facility.
Capgemini was founded by Serge Kamph in 1967 as an enterprise management and data
processing company. The company was inaugurated as the Société pour la Gestion de l'Entreprise
et le Traitement de l'Information (Sogeti).
Business function in parent company and outside
parent company
Paris, February 18, 2016 – The Board of Directors of Cap Gemini S.A. chaired by Paul
Hermelin, convened in Paris on February 17, 2016 to review and authorize the issue of the
accounts1 of Capgemini Group for the year ended December 31, 2015.
For Paul Hermelin, Chairman and Chief Executive Officer of Capgemini Group: “2015 marked a
new phase in Capgemini’s history with the acquisition of IGATE completed on July 1st .
Following the first phase of the integration process, we can confirm the synergies announced at
the time of the transaction. Our combined offerings and expertise have already strengthened
our positions in several strategic markets.
Following the integration of IGATE and the strong organic growth* (+7.8%), North America, the
most important market in terms of size and innovation, is now, by far, the Group’s largest region,
representing 31% of revenues in the second half of the year.
Furthermore, our global network of delivery centers, a key driver of our competitiveness, now
counts nearly 100,000 employees, positioning us among industry leaders.
Our 2015 performance exceeds our guidance that was increased in July following our first half
results. Taking into account the integration of IGATE, revenues grew +12.7% and operating
margin increased 140 basis points to 10.6%.
Finally, the Group establishes itself as a reference partner for Digital Transformation. Our Digital
and Cloud offerings grew 23% in 2015 and account for 22% of revenues. These domains will
remain in our top priorities for investments in 2016.”
____________________________________________________________________________
1 Audit procedures on the consolidated financial statements have been completed. The auditors
are in the process of issuing their report.
* The terms and non-GAAP measures marked with an (*) are defined and reconciled in the
appendix to this press release.
2015 KEY FIGURES
(in millions of euros) 2014 2015 Change
Revenues 10,573 11,915 +12.7%
Operating margin*
as a % of revenues
970
9.2%
1,262
10.6%
+30%
+140bp
Operating profit
as a % of revenues
853
8.1%
1,022
8.6%
+20%
+50bp
Net profit (Group share)
Basic earnings per share (€)
Normalized earnings per share (€)
580
3.68
4.22
1,124
6.67
4.84
+94%
+81%
+15%
Net cash and cash equivalents / (Net debt)
Organic free cash flow*
1,218
668
(1,767)
815^2 +22%
The Group generated revenues of €11,915 million in 2015, up 12.7% compared with 2014.
Excluding the impact of fluctuations in Group currencies against the euro and changes in Group
perimeter, primarily the integration of IGATE purchased during the year, revenues grew 1.0%.
Revenue growth reached 13.7% in the 4th quarter and 0.1% at constant perimeter and
exchange rates.
New orders recorded during the year totaled €11,538 million, compared with €10,978 million in
2014.
The operating margin is €1,262 million, or 10.6% of revenues, up 140 basis points year-on-
year exceeding the 10.3% objective as increased by the Group following the publication of the 1
st half results.
Other operating income and expenses total €240 million, the increase compared to 2014 is
primarily due to the acquisition of IGATE. Restructuring costs remain under tight control at €81
million.
2015 operating profit is €1,022 million, bringing the operating margin to 8.6% compared with
8.1% in 2014.
The net financial expense is €118 million, up €48 million on 2014, after expenses of €51
million relating to the implementation of the IGATE acquisition financing (initially consisting of a
bridge loan followed by bonds issue). The 2015 Group income tax is a €203 million income,
following a one-off non-cash profit of €476 million due to the reassessment of deferred tax
assets on US tax loss carry-forwards.
On this basis, net profit (Group share) is €1,124 million for 2015, compared with €580 million
in 2014 and 2015 basic EPS (earnings per share) is €6.67. Normalized EPS increased 15%
year-on-year to €4.84.
The Group generated an organic free cash flow* of €815 million², up €147 million on 2014.
The Board of Directors has decided to recommend the payment of a dividend of €1.35 per
share3 in 2016 at the next Shareholders’ Meeting on May 18th 2016, up 15 cents year-on-year.
In addition, the Board of Directors has confirmed its commitment to actively manage the dilution,
as such it approved4 a multi-year share buyback program of €600 million to offset the
dilution from employee share ownership program and incentive instruments. A decision has
been taken to allocate €150 million to the share buyback program in 2016.
OUTLOOK
For 2016, the Group forecasts revenue growth at constant exchange rates of 7.5% to 9.5%, an
operating margin of 11.1% to 11.3% and organic free cash flow generation in excess of €850
million. The Group estimates the negative impact of currency fluctuations on revenues at -2%,
primarily due to the appreciation of the euro against the pound sterling and the Brazilian real.
2 After payment of €76 million to increase the Group’s majority stake in its Brazilian subsidiary,
CPM Braxis.
3 This dividend will be paid from June 1 st, 2016. In compliance with Euronext regulations, the
ex-dividend date will be May 30, 2016.
4 Subject to renewal of the buyback authorization at the Shareholders’ Meeting.
OPERATIONS BY BUSINESS
Consulting services (4% of Group revenues) benefited from the repositioning around Digital
Transformation, reporting year-on-year growth of 5.8% on a like-for-like* basis (i.e. at constant
Group perimeter and exchange rates). Growth was driven by North America, UK and Rest of
Europe with good momentum in Q4. 2015 operating margin rate is 9.1% compared with 8.2% in
2014.
Local professional services (15% of Group revenues) reported annual revenue growth of
0.3% on a likefor-like basis. Growth in the UK and Benelux compensated the drop in activity in
the aerospace sector. The operating margin improved 170 basis points to 11.6%.
Application services (59% of Group revenues) growth was 6.3% on a like-for-like basis in
2015. Growth was driven, among other things, by investment in innovation around Digital &
Cloud. All geographic regions enjoyed growth, particularly North America, Rest of Europe and
the private sector in the UK. The operating margin rate is 11.9%, up 130 basis points on 2014.
Other managed services (22% of Group revenues) reported a 10.9% decline in 2015 revenues
on a likefor-like basis due to the planned decrease in revenues from a major Group contract in
the public sector in the UK which impacted infrastructure services. The operating margin rate at
9.6% is up 80 basis points on 2014.
OPERATIONS BY MAJOR REGION
North America, with 28% of Group revenues, is now Capgemini’s first region thanks to strong
organic growth and the acquisition of IGATE on July 1, 2015. Reported results confirm the
Group’s strengthened position in the number one IT services market. Revenues grew 7.8% on a
like-for-like basis and 49.1% at current Group perimeter and exchange rates thanks to the
appreciation of the US dollar against the euro and the acquisition of IGATE. All sectors
contributed to these results particularly the retail and consumer goods which grew over 20% on
a like-for-like basis. Application services and Consulting services reported the strongest growth.
Operating margin increased 76% to represent 14.9% of revenues, an improvement of 230 basis
points year-on-year.
United Kingdom and Ireland (18% of Group revenues) reported a 13.9% decline in revenues
on a like-forlike basis (2.2% after accounting for the appreciation of the pound sterling against
the euro). This decrease is entirely due to the planned reduction in revenues under the
aforementioned contract. Driven by the financial services and retail and consumer goods
industries, the private sector was extremely dynamic, helping to rebalance the relative
weightings of the public and private sectors in this region. The operating margin rate improved
210 basis points to 13.4%.
France (20% of Group revenues) reported an increase in revenues year-on-year of 1.2% on a
like-for-like basis and 4.4% at current Group perimeter. Robust growth in the financial services
and retail and consumer goods industries and the public sector more than offset the decline
recorded in the manufacturing segment. The operating margin fell by 30 basis points year-on-
year to 8.1% of revenues.
Benelux (9% of group revenues) was stable (+0.1% year-on-year) after several years of
decline. This return to stability is supported by the end of the multi-year contraction in financial
services. The strong growth in manufacturing fully offset the continuing shrinkage in the public
sector. The operating margin is €121 million in 2015, representing an increase of 70 basis
points in the operating margin rate to 11.2%.
The Rest of Europe region reported the strongest growth in Europe with 7.4% on a like-for-like
basis (and 7.5% at current Group perimeter and exchange rates). This performance was fueled
by most of the sectors, with the financial services, retail and consumer goods and energy
industries enjoying double digit growth. The offshore leverage is progressing rapidly, particularly
in Central and Northern European countries. The operating margin increased 20% year-on-year
to 9.6% of revenues, up 100 basis points on 2014.
The Asia-Pacific and Latin American region reported growth of 6.5% on a like-for-like basis
(and 5.6% on a published basis). Growth remains strong in Asia-Pacific (in excess of 10% like-
for-like) – driven by financial services. On the other side Latin America reported a drop in
revenues on a like-for-like basis, despite a positive momentum at the beginning of the year,
reflecting the economic downturn in this region. The operating margin rate is 4.2%, down 190
basis points.
HEADCOUNT
On December 31, 2015, the total headcount of the Group was 180,639 compared with 143,643
employees at the end of last year, representing a net increase of 26%, driven by the IGATE
integration. Our global delivery network counts 97,301 employees (including 86,405 in India),
representing 54% of the total Group headcount compared with 47% the previous year.
BALANCE SHEET
The Group had at December 31, 2015, €1,948 million in cash and cash equivalent (net of bank
overdraft). After accounting for borrowings of €3,811 million, cash management assets and
derivative instruments, Group net debt* is €1,767 million at the end of 2015, compared with a
net cash position of €1,218 million one year before. This change to a net debt position is
explained by the acquisition of IGATE (US$ 3,961 million paid, excluding the debt contributed by
IGATE).
DISCLAIMER
This press release may contain forward-looking statements. Such statements may include
projections, estimates, assumptions, statements regarding plans, objectives, intentions and/or
expectations with respect to future financial results, events, operations and services and product
development, as well as statements, regarding future performance or events. Forward-looking
statements are generally identified by the words “expects”, “anticipates”, “believes”, “intends”,
“estimates”, “plans”, “projects”, “may”, “would” “should” or the negatives of these terms and
similar expressions. Although Cap Gemini’s management currently believes that the
expectations reflected in such forward-looking statements are reasonable, investors are
cautioned that forward-looking statements are subject to various risks and uncertainties
(including without limitation risks identified in Cap Gemini’s Registration Document available on
Cap Gemini’s website), because they relate to future events and depend on future
circumstances that may or may not occur and may be different from those anticipated, many of
which are difficult to predict and generally beyond the control of Cap Gemini. Actual results and
developments may differ materially from those expressed in, implied by or projected by forward-
looking statements. Forward-looking statements are not intended to and do not give any
assurances or comfort as to future events or results. Other than as required by applicable law,
Cap Gemini does not undertake any obligation to update or revise any forward-looking
statement. This press release does not contain or constitute an offer of securities for sale or an
invitation or inducement to invest in securities in France, the United States or any other
jurisdiction.
APPENDIX
Organic growth, or like-for-like growth, in revenues is the growth rate calculated at constant
Group perimeter and exchange rates. The Group perimeter and exchange rates used are those
for the published fiscal year.
Operating margin is one of the Group’s key performance indicators. It is defined as the
difference between revenues and operating costs. It is calculated before “other operating
income and expense” which include amortization of intangible assets recognized in business
combinations, the charge resulting from the deferred recognition of the fair value of shares
granted to employees, and non-recurring revenues and expenses, notably impairment of
goodwill, badwill, capital gains or losses on disposals of consolidated companies or businesses,
restructuring costs incurred under a detailed formal plan approved by the Group’s management,
the cost of acquiring and integrating companies acquired by the Group, and the effects of
curtailments, settlements and transfers of defined benefit pension plans.
Normalized net profit is equal to profit for the year (Group share) adjusted for the impact of
items recognized in “Other operating income and expense”, net of tax calculated using the
effective tax rate. Normalized earnings per share is computed like the basic earnings per
share, i.e. excluding dilution.
Organic free cash flow is equal to cash flow from operations less acquisitions of property,
plant, equipment and intangible assets (net of disposals) and adjusted for cash out relating to
net interest cost.
RESULTS BY REGION
Region Revenues Year-on-year growth Operating margin
rate
2015
(in € millions)
Published Like-for-
like
2014 2015
North America
United Kingdom and Ireland
France
Benelux
Rest of Europe
Asia Pacific and Latin America
3,325
2,150
2,444
1,078
1,988
930
+49.1%
-2.2%
+4.4%
+0.4%
+7.5%
5.6%
+7.8%
-13.9%
+1.2%
+0.1%
+7.4%
+6.5%
12.6%
11.3%
8.4%
10.5%
8.6%
6.1%
14.9%
13.4%
8.1%
11.2%
9.6%
4.2%
Total 11,915 +12.7% +1.0% 9.2% 10.6%
RESULTS BY BUSINESS
Business Revenues Year-on-year growth Operating margin
rate
2015
(in € millions)
Published Like-for-
like
2014 2015
Consulting Services
Local Professional Services
Application services
Other managed services
480
1,744
6,997
2,694
+8.7%
+10.6%
+19.5%
-0.2%
+5.8%
+0.3%
+6.3%
-10.9%
8.2%
9.9%
10.6%
8.8%
9.1%
11.6%
11.9%
9.6%
Total 11,915 +12.7% +1.0% 9.2% 10.6%
SUMMARY INCOME STATEMENT AND OPERATING MARGIN
(in € millions) 2014 2015 Change
Revenue (10,573) 11,915 +12.7%
Operating Expenses (9,603) (10,653)
Operating margin 970 1,262 +30%
as a % of revenues
Other operating income and expense
9.2%
(117)
10.6%
(240)
+140bp
Operating profit 853 1,022 +20%
as a % of revenues
Net financial expense
Income tax income / (expense)
(-) non controlling interests
8.1%
(70)
(210)
7
8.6%
(118)
203
17
+50bp
Profit for the year, Group share 580 1,124 +94%
NORMALIZED EARNINGS PER SHARE
(in € millions) 2014 2015 Change
Profit for the year, Group share 580 1,124 +94%
(-)Exceptional tax income* 0 (476)
Profit for the year, Group share – excluding
exceptional income
580 1,124 +94%
Effective tax rate
(-)Other operating income and expenses, net of tax*
26.8%
87
30.1%
167
Normalized profit for the year 667 815
Weighted average number of ordinary shares 157,855,433 168,452,917
Normalized earnings per share (in euros) 4.22 4.84 +15%
a recognition of a non-cash exceptional profit of €476 million following the reassessment of
deferred tax assets on US tax loss carry-forwards b calculated at the effective tax rate.
CHANGE IN CASH AND CASH EQUIVALENTS AND ORGANIC FREE CASH FLOW
(in € millions) 2014 2015
Cash flows from operations 815 1,004
Acquisitions of property, plant and equipment and intangible assets, net of
disposals
Net interest cost
(142)
(5)
(179)
(10)
Organic free cash flow 668 815
Other cash flows from (used in) investing and financing activities (225) (1,033)
Increase (decrease) in cash and cash equivalents 443 (218)
Effect of exchange rate fluctuations 68 26
Opening cash and cash equivalents, net of bank overdraft
Closing cash and cash equivalents, net of bank overdraft
1,629
2,140
2,140
1,948
NET CASH AND CASH EQUIVALENTS
(in € millions) 12/31/2014 12/31/2015
Cash and cash equivalents
Bank overdrafts
2,141
(1)
1,950
(2)
Cash and cash equivalents, net of bank overdraft 2,140 1,948
Cash management assets 90 116
Long-term borrowings
Short-term borrowings and bank overdrafts
(-) Bank overdrafts
(914)
(102)
1
(3,161)
(652)
2
Borrowings, excluding bank overdrafts (1,015) (3,811)
Derivative instruments 3 (20)
NET CASH AND CASH EQUIVALENTS /(NET DEBT) 1,218 (1,767)
Founder of Capgemini
Serge Kamph
It’s 1967 in Grenoble, France: Television broadcasts are in color for the first
time. The city is buzzing about the upcoming 1968 Winter Olympics. Inspired
by these exciting technological and cultural changes, entrepreneur Serge
Kampf decides the time is ripe to launch an IT company. And so began the
Capgemini story.
Serge Kampf, founder of the Capgemini Group passed away on March 15,
2016. This web page gathers all tributes to him and reminds about his
important legacy.
Head of Parent company
CEO & Chairman- Paul Hermelin
Paul Hermelin spent the first fifteen years of his professional life in the French government, primarily
in the Ministry of Finance. He started his career in Jacques Delors's Ministry of the Economy. From
1988 to 1991, he worked in Hubert Curien's Ministry of Research and Technology. From 1991 to
1993, he worked in Dominique Strauss-Kahn's Ministry of Industry and Foreign Trade as chief of
staff.
He joined Capgemini in May 1993 where he was in charge of coordinating central functions and was
appointed as the CEO of the Capgemini Group on January 1, 2002. In May 2012, Hermelin became
chairman and CEO of the Capgemini Group.
Paul Hermelin graduated from the Ecole Polytechnique in 1972 and the Ecole Nationale
d’Administration (ENA) in 1978.
MANAGEMENT TEAM:
Positon Name
Financial Services and Latin America Thierry Delaporte
Chief Financial Officer Aiman Ezzat
People Management and Transformation Hubert Giraud
Competitiveness and India Patrick Nicolet
Application Services One**, Cloud Infrastructure
Services, Sogeti and Cloud Services
Salil Parekh
Positon Name
Application Services Two***, Business Services,
Capgemini Consulting and Digital Services
Olivier Sevillia
Deputy Head of Application Services Two Jean-Philippe Bol
Application Services North America Tim Bridges
Digital Services Dee Burger
Delivery André Cichowlas
Chief Technology Officer Lanny Cohen
Strategy and Development Pierre-Yves Cros
Capgemini Consulting Cyril Garcia
Sales Srikanth Iyengar
Business Services Aruna Jayanthi
CEO India Srinivas Kandula
General Secretary Jean-Baptiste
Massignon
Cloud Infrastructure Services Paul Nannetti
Marketing and Communications Virginie Regis
Application Services Asia-Pacific Luc-François
Salvador
Sogeti Hans van
Waayenburg
INTERNATIONAL MANAGEMENT TEAM:
Positon Name
Partnerships and Strategic Initiatives Fernando Alvarez
Business Coordination France Christophe Bonnard
Bank and Financial Services Anirban Bose
Insights & Data John Brahim
Application & Infrastructure Services
- Latin America
Walter Cappilati
Internal Audit, Ethics and Compliance Philippe Christelle
Infrastructure Services Operations Richard Dicketts
Financial Services Operations Jack Dugan
Sogeti - Operations Stephan Ek
Digital Customer Experience Pierre-Yves Gléver
Business Coordination USA Navin Goel
Senior Executive Advisor to Group
Chairman and CEO
Philippe Grangeon
Cloud & Cybersecurity Franck Greverie
Business Coordination United
Kingdom
Christine Hodgson
General Electric Account Executive Lalit Khandelwal
Applicative Maintenance Continental
Europe
Deepankar Khiwani
External Communications & Digital Christel Lerouge
Application Services North America
Consumer Products, Retail,
Transportation and Distribution
(CPRTD)
Ted Levine
Application Services North America
Energy & Utilities
Brad Little
Finance Alain de Marcellus
Control and Reporting Karine Marchat
Application Services United Kingdom Paul Margetts
Position Name
Insurance John Mullen
Infrastructure Services Practices &
Supply Chain
Sandy Padayachee
Executive Committee Secretary Catherine Perronet
Digital Manufacturing & Sogeti High
Tech
Jean-Pierre Petit
Financial Services, Applicative
Maintenance, Testing
Nagasamy Pitchai
Consumer Products and Distribution Baru Rao
Contract Management Isabelle Roux-Chenu
Business Coordination Germany Michael Schulte
Application Services France Jérôme Siméon
Business Services Lucia Sinapi-Thomas
Application Services North America Sujit Sircar
Business Services - Operations Chris Stancombe
Business Coordination Canada Sanjay Tugnait
Application Services Nordics Leendert Venema
Application Services The Netherlands Jeroen Versteeg
Infrastructure Services Steve Wanklin
Operations - India Ashwin Yardi
Application Services China Cliff Yu
Subsidaries:
IGATE
Capgemini India
Euriware
Open Cascade
Regional Office:
North America
United Kindom and Ireland
France
Benelux
Rest of Europe
Asia Pacific and Latin America
North America:
Vive la technologie! Capgemini North America oversees the US, Canadian,
and Mexican operations of Paris-based consulting giant Cap Gemini. Like its
parent, the subsidiary offers management and IT consulting services, systems
integration, technology development design, and outsourcing services through
nearly 30 offices in about a dozen US states, Puerto Rico, and Canada. Its
consultants serve clients in a variety of industries, including automotive,
energy and utilities, financial services, high-tech, manufacturing, and
transportation. The unit was formed in 2000 after Capgemini acquired the
consulting arm of accounting giant Ernst & Young. Capgemini North America
represents almost 21% of its parent's annual sales.
† Some telephone numbers on the Hoover’s site may be on a country’s do not
call or do not contact list including, but not limited to, the United Kingdom’s
CTPS or TPS registers. It is a legal requirement that companies do not make
sales or marketing calls to registered numbers. These are central opt out
registers whereby corporate subscribers and individuals can register their
preference not to receive unsolicited sales and marketing telephone calls. By
using the information provided on the Hoover’s sites, as the direct marketer
you represent and warrant that you will use such information in compliance
with all applicable local, state, national or international laws and regulations,
including any local do not call registers or marketing regulations, and agree to
defend, indemnify and hold harmless Dun & Bradstreet and each of its
affiliates in the event your use violates such laws and regulations.
United Kingdom and Ireland:
The Board meets at least six times a year. Meetings are convened by the
Chairman in accordance with a timetable agreed upon by the Board before
the end of the prior year. This timetable may be amended during the year in
response to unforeseen circumstances or at the request of more than one
director. In 2014, the Board met seven times.
The average attendance rate was 92%.
Internal Rules of Operation
The Board has established and adopted internal rules of operation mainly in
order to clarify the scope of (and bases for exercising) the various powers
entrusted to the Board, the specialized Board committees, the Chairman and
CEO and the Vice-Chairman. It also sets out the list of obligations under the
"Code of Business Ethics" with which directors undertake to comply.
Board Committees
The general purpose of these committees is to examine or prepare certain
resolutions involving their particular areas of expertise, draft proposals and
transmit viewpoints or recommendations to the Board. They have no decision-
making authority—decisions are taken by the Board of Directors, assembled
according to the requisite procedure—and may not treat subjects outside their
own fields of competence.
Each member of the Board of Directors can attend all committee meetings,
except in the case of conflict of interests.
Audit Committee
∑ Chairman: Yann Delabrière
∑ Members: Laurence Dors, Phil Laskawy, Xavier Musca
∑ Meetings: six in 2014 with an average attendance rate of 100%
Compensation Committee
∑ Chairman: Pierre Pringuet
∑ Members: Lucia Sinapi-Thomas, Caroline Watteeuw-Carlisle
Invited: Kevin Masters
∑ Meetings: six in 2014 with an average attendance rate of 93%
Ethics and Governance Committee
∑ Chairman: Daniel Bernard
∑ Members: Serge Kampf, Laurence Dors, Pierre Pringuet, Bruno Roger
∑ Meetings: four in 2014 with an average attendance rate of 83%
Strategy and Investments Committee
∑ Chairman: Bruno Roger
∑ Members: Paul Hermelin, Daniel Bernard, Anne Bouverot, Caroline Watteeuw-Carlisle
∑ Meetings: six in 2014 with an average attendance rate of 97%
FRANCE:
financial informations
Capgemini shares are listed on the stock exchange of Paris under ISIN code
FR0000125338. You will find financial information and our publishing
schedule in our relations section investors, press releases sides, analyst
presentations and webcasts.
Our global leadership in consulting,
technology services and outsourcing
Our working methods
Deeply multicultural, our company boasts its own style based on its
solution Collaborative Business Experience ™ , and its global delivery
model Rightshore .
Through a network of strategic alliances and partnerships with experts, we
take informed decisions in allobjectivity by recommending solutions tailored
to the needs of our customers.
We work alongside our customers to develop and deliver business and
technology solutions that fit their needs and give them the results they want.
Our four key disciplines
∑ Consulting services (Capgemini Consulting) : We identify, develop and implement
transformation projects that enhance growth and accentuate the competitive advantage of our
customers.
∑ Systems integration services : our teams design, develop and implement technological projects
covering the integration of complex systems and the development of computer applications.
∑ Local Professional Services (Sogeti): We offer professional technology services to meet local
needs in terms of infrastructure, applications, engineering, testing and operations.
∑ Managed Services : our experts help our customers and provide any assistance, partial or total,
they need, in the management of their information systems and related activities for a period of
five years on average, that it is nevertheless possible to extend up to ten years or more.
The sectors in which we operate
Our experience , which embraces all sectors, allows us to constantly keep pace with our
customers. We understand their needs and offer the solutions best suited to their business
objectives specific.
We are known to have a knowledge particularly strong in the following areas:
∑ Public Sector : our teams ensure the modernization of services, while
introducing reforms fiscal meaningful to the attention of the public service companies,
administrations and local authorities.
∑ Universal services : as a world leader in information systems for networks and smart meters, we
help companies master the ever-changing regulations and to respond to emerging
environmental concerns.
∑ Financial services : serving over 900 clients worldwide, we simplify applications and IT
infrastructure for financial institutions to enable them to keep ahead of relying on innovative
business models, such as management mobility and intelligent data.
∑ Consumer products, retail and distribution : we help our customers meet the various challenges
that they face, regardless of the sector, exploiting technology, such as cloud computing, to
develop plat- forms of electronic commerce and improve the user experience.
∑ Telecommunications : Strong over 30 years experience in this industry, we offer innovative
solutions based on our extensive knowledge of this area and the digital environment, as well as
our technological know-how in terms of networks.
Our main initiatives
∑ Management of business information : Our services cover the entire life cycle of data and
enable companies to take full advantage of the value of their resources.
∑ Testing Services : This full range proposed jointly by Capgemini and Sogeti includes
industrialization solutions and software testing services and structured quality assurance.
∑ Mobile solutions : as qu'orchestrateurs Mobility, Capgemini and Sogeti share, develop and
manage a network of equipment, platforms and solutions to provide resources to employees
and mobile customers the power of the business.
Benelux:
Corporate Responsibility & Sustainability Approach
In today's unpredictable business environment, the need for
responsible business practices is more critical than ever. We
believe that corporate responsibility and sustainability deliver added
value to our clients, employees, shareholders, business partners
and the communities in which we live and operate.
∑ Values & Ethics: It’s about who we are and the way we do business. We
embrace our core values of honesty, boldness, trust, freedom, solidarity,
modesty and fun. Our rigorous Code of Business Ethics underpins our
business practices, procurement behaviors and employee welfare policies.
∑ Environmental Sustainability: We have a deep and measured
understanding of our impact on the environment. We are working to reduce
our impact on the natural environment from energy, business travel and
waste. We raise employee awareness on critical issues in sustainable
development.
∑ Community Engagement: We strive to have a positive impact on the
communities in which we live and operate. To do so, we work with local,
national and international charities, NGOs and authorities on topics such as
inclusivity and skills for the future. We support and encourage our
employees to actively participate in community development.
∑ People Culture: We aim to be the employer of choice for people who wish
to flourish in a creative and diverse environment. As a responsible and
inclusive employer, we focus on the professional development and well
being of all our employees, with respect and value for their diversity. We
ensure that our business practices and facilities empower delivery
excellence.
∑ Client Services: Our clients benefit from our deep understanding of
sustainability and our world-class business transformation capabilities. We
incorporate customer dialogue and feedback to ensure long-lasting value
and tangible results.
Europe:
A winning combination
Capgemini is a global consultancy engaged in information technology, management consulting,
outsourcing and professional services. Headquartered in Paris, it employs over 92,000 people
through offices in over 30 countries. The company's clients are active in the automotive, consumer
products, distribution, energy, chemicals, financial services, health care, life sciences,
manufacturing, retail, media and telecoms industries, as well as the public sector.
The company underwent something of a shift in identity in April 2009, creating a new strategic
business unit known as Capgemini Consulting, a move that brought all of its worldwide strategy and
transformation operations consulting operations under one banner, and installed the company as the
largest European consulting outfit at a stroke. The Capgemini Consulting unit employs over 4,000
consultants worldwide and contributes some 8 percent of total revenue. Headquartered in London,
Capgemini Consulting is headed by Pierre Yves-Cros, and has three practice areas, each dedicated
to business transformation: strategy and transformation, operations transformation (which includes
marketing, sales and service, finance and employee transformation, and supply chain management),
and technology transformation (where services include "technovision," accelerated IT restructuring
and consulting for CIOs). According to the company, this new structure allows it to better utilize its
global standing to benefit clients through sharing of best practices and experience across the
company.
Names, more names and acquisitions
Capgemini was founded by Serge Kampf in 1967 as Sogeti, a boutique provider of IT services
targeting only local French markets. It was too successful to maintain a low profile for long,
however, and by 1975, with the acquisitions of the larger companies CAP and Gemini Computer
Systems, the company had a presence in 21 countries. Kampf toyed a bit with the corporate name,
working for a while as Cap Gemini Sogeti, then opting for Cap Gemini. The company merged with
the consulting unit of Ernst & Young in an $11 billion megadeal in 2000 and, apparently abandoning
the earlier lessons of superfluous nomenclature, became Cap Gemini Ernst & Young. This was
short-lived, though, as a 2004 rebranding not only shortened, but compressed the name to
Capgemini.
While the company may have settled on its new slim-line branding, its taste for monster-sized
acquisitions hasn't abated; in 2007, it paid $1.2 billion for Kanbay International, a global IT services
outfit with a significant foothold in India. That market has been the focus of increased attention by
Capgemini in recent years, as the company has sought to establish its footprint, and a significant
outsourcing presence, in the country. The focus is an understandable one, as around 37 per cent of
the company's revenue is generated through outsourcing. Capgemini's technology unit is its largest
component, meanwhile, contributing almost 40 per cent of revenue.
The right stuff
Through its business divisions around the world, Capgemini can legitimately claim to have a
consulting empire on which the sun never sets. That's something it puts to good use through its
Rightshore global delivery model, utilizing its network of international centers to provide specialist
services around the clock for accelerated delivery, applications management service, business
process outsourcing and infrastructure management. The model provides cost benefits for clients as
well, translating into savings the lower cost of doing business in markets such as India, China and
Eastern Europe. The company is investing heavily in the method as well, with plans to increase the
number of employees it has in India to 40,000 by the end of 2010. This will result in Capgemini
having more employees in India than in any other country, making up 40 per cent of its total
workforce.
THE LATEST ON CAPGEMINI
Culling talent
July 2009
In a move to further the company's global expansion and established expertise, Capgemini
announced the recruitment of Ranjan Tayal as vice president and head of its India practices. Tayal
came from among the top brass at troubled Satyam, where he operated as VP and business head
for India and South Asia, and was reportedly responsible for 4 per cent of Satyam's revenue over the
past four years.
Bench-pressing the EU
July 2009
The European Commission extended its contract with Capgemini Consulting (through Cap's
Nederland B.V. practice) to provide eGovernment supply-side benchmarking to the EU. Previously,
the company had operated on a seven-year contract with the commission to conduct benchmark
studies, which surveyed the effects of eGovernment online services to transform the public sectors
of EU member states. The new agreement extends that contract by another four years.
Moving into Romania
June 2009
The firm opened a new outsourcing centre in the Romanian town of Iasi. Part of the company's plan
to expand its outsourcing presence throughout Eastern Europe, the new centre is situated in one of
Romania's largest University towns, giving Capgemini easy access to a deep pool of qualified and
(ideally) skilled labour. Initially, the centre will offer service desk support for Capgemini clients,
although where those clients may be (and hence the languages required) was unclear.
Energy expertise
January 2009
A Capgemini study highlighted the problems facing the long-term implementation of renewable
energy into national energy grids. According to the report, many utilities companies are being put off
by the complex integration of large-scale wind farms and their variable power loads, hampering the
development of green energy projects.
Also in the energy field, a November 2008 Capgemini report provided a startling assessment of the
state of the U.K.'s energy production. The report claimed that, without significant increases in
investment in power generation in the next decade, the country will not be able to meet demand for
power. What's holding it back? The paper blamed dwindling North Sea gas reserves, a move
toward less effective renewable technology and the closure of around one quarter of the country's
energy plant capacity.
Opening the Czech book
November 2008
In a move that reinforced its position in the emerging Eastern European market, Capgemini entered
into an agreement to buy Czech IT services and consulting company Empire. The buyout, which
includes a majority stake in Empire's subsidiary Sophia Solutions, a local business intelligence and
data warehouse expert, significantly increases Capgemini's client base in the Czech Republic.
Among those new clients are some of the leading players amongst the financial services and
telecom industries, as well as several major Czech public-sector institutions.
Heading for the clouds
November 2008
Recognizing a trend that seems likely to become a standard of business life in future years,
Capgemini added a new option to its suite of IT consultancy options in November 2008: cloud
computing. Not that it's going to be doing anything like hosting software, running data processing or
storing clients' data itself, the company's UK wing signed an outsourcing deal for all of that with
Amazon Web Services, a subsidiary of retailer Amazon.com.
Capgemini's role in the cloud sphere will be limited initially to a new cloud computing center of
excellence, which will be staffed with a team of Amazon Web Services-trained professionals.
Located in North America, Europe and India, they will help Capgemini's clients evaluate and
implement the appropriate web service offerings. Those, meanwhile, will initially come in three
major areas of technology: Microsoft Sharepoint in the cloud, Oracle ERP in the cloud and cloud-
based development and testing of applications.
Public-sector success
October 2008
In the UK, Capgemini was chosen to carry out operational service and IT improvements by West
Sussex Council. The aim of the project is ultimately to find cost savings for the council that can be
passed on to residents in the form of reduced council tax bills.
The company won a similar contract from Dorset County Council in August 2008, while in April of
that year London's Croydon Council signed a five-year contract extension with Capgemini to
continue the ongoing transformation of its local government services. The longest running private
finance initiative agreement of its kind in the UK, the five-year extension is worth £83 million and
covers IT and telecommunications support, which Capgemini has provided for the council since
2003.
Going Dutch
July 2008
Capgemini announced a â'¬255 million deal to purchase Getronics PinkRoccade Business
Application Services BV, a division of Getronics PinkRoccade. The company is one of the top IT
services providers in the Dutch public sector, offering solutions that address the entire applications
life cycle, from applications management consulting to project development, integration and
implementation. Its clients include planning agencies, state administrations and social security
bodies, plus insurance and banking corporations outside of the public sector.
Shuffling the exec deck
May 2008
The company unveiled Olivier Picard as its new development director. Picard joined the company
from Alcatel Lucent, where he had served as a member of the executive committee, leading the
Europe and South region as president. His appointment is the latest in a string of senior-level
appointments at Capgemini in recent years. In February 2007, for example, the company named
Lanny Cohen as CEO of the North American project and consulting operations. Cohen's
predecessor, Salil Parekh, became executive chairman of Capgemini India, taking on responsibility
both for overseeing growth in the region and for smoothing the transition following the Kanbay
International acquisition. Another change in 2007 was the appointment of Henk Broeders as head of
Asia Pacific and Continental Europe, which covers Benelux, Scandinavia, Germany, Italy and
Eastern Europe.
Applying some (Uni)leverage
April 2008
Capgemini extended its contract with Unilever to acquire and manage the company's financial
centres in Chile and Brazil. The deal increases the consultancy's outsourcing foothold in South
America, following the opening of its first centre in Buenos Aires in November 2007, and will see 400
professionals from Unilever come into the Capgemini fold.
Where it falls down
Sources are unimpressed with the remuneration packages on offer at Capgemini, with many citing it
as one of the main downsides of the company. To make matters worse, they expect 2009's bonus
packages to be less than healthy due to the faltering economy. Perks aren't raved about either, with
one consultant describing them as "nothing out of the ordinary". Laptops, mobile phone
compensation, company cars at a favorable lease, gym membership, restaurant tickets, health and
life insurance, and broadband at home are some of the benefits respondents mention. New mothers
also get "90 per cent pay on maternity leave for at least six months", and those who near burnout
can opt for "career breaks" or buy more holiday if they want.
Focusing on the positive, the consultancy does offer a "great social life", sources say, and puts on a
lot of events. "I have played in two UK versus France company rugby matches, one in Paris and
one in Biarritz. These provided a great networking opportunity and were fully paid for by the
company," explains a respondent. In Norway, the company provides "cabins in the mountains" for
its staff to use, and every quarter, the firm holds what are known as "Gold Wings awards to
recognize project deliveries and exceptional work", which are described as "very encouraging". And
of course, if you like your fruit, you'll fit in at Capgemini, as the company has it delivered fresh to the
office door every morning. Capgemini also supports a number of charities, including the Prince's
Trust, in the UK and the Naandi Foundation.
Pushing a coaching culture
Respondents also report that Capgemini has a "large training budget per employee", as well as its
own university and academy where official training takes place. The firm "actively encourages as
much training as is possible, without interfering with client commitments". Every staffer has between
eight to 10 days allocated to official training per year, from an "extensive training curriculum". We're
also told that the "corporate training facility in Paris is first class".
Sources feel Capgemini promotes a "great feedback and coaching culture", made possible through
"mentoring and on-the-job training" by means of a "dedicated coach". They describe their
supervisors as "very approachable", "very accessible and hands on" more so than at competitor
companies, insiders argue. "I feel like we are one family, where no conversation is taboo and
everyone has time for you if needed," states a London-based consultant.
No panic, yet
There is a "sense of realism, rather than pessimism, pressure or panic", when it comes to
Capgemini's chances of coming through the recession unscathed. The London office is particularly
confident in its ability to keep revenue up, due to the large amount of public-sector work it carries
out. "We seem well placed, partly due to the amount of government work we have," says a
consultant there. Across the Channel, consultants are also quietly confident, saying the outlook is
"OK, due to the strong relationship with clients and the broad expertise on a large scale of sectors
not deeply impacted by the crisis, such as energy, utilities and life science". Others are not so
optimistic. "Business is still strong, but sales opportunities are decreasing rapidly, employee morale
is moderate, but fear of losing your job is increasing," an insider in Utrecht reports, while a colleague
in Frankfurt states, "We will need to adapt and lay off some people if the situation does not change.
Even new methodologies, tools or topics will not help if industry is not willing to spend money for
consulting." And respondents tell us that the Stockholm office has stopped rehiring when people
leave.
Across the board, consultants agree that one of the main problems the company faces is that it "is
still perceived as an IT company", and less of a management and strategy shop. In the strategy
arena, insiders admit to "witnessing a general decline in capacity over time", and believe that, in this
field, the firm will have "to fight an uphill battle against stronger brands".
Better than the norm
"Where are the women partners?" asks a Paris-based source. We're there is no discrimination when
it comes to hiring women, and "female consultants are regarded in the same way as male
consultants" at the company. That said, it continues to be a "very male" consultancy, more so than
other consulting firms I have worked in", says a staffer, and the "policy doesn't seem to be aimed at
promoting more participation". "There are special events on international women's day, special
forums for women and the like, but nobody, especially the women, really cares about it," a source
claims. Even the Stockholm office, which has a good gender split lower down the ranks, and a
female country manager to boot, only has a 20:80 ratio of women to men at partner level. Most
other offices, we're told, have lower proportions.
The spread of minorities throughout the consultancy depends on the office in which you are based.
In Utrecht, we're told that for "a consulting firm, the diversity in minorities is probably about right, but
for a modern firm, it is quite low". In fact, that office is described at "mostly white". The same goes
for the Paris office, where there is little minority representation, according to insiders. And while
sources claim the company is "very receptive to minorities", it takes a "fair approach to equality and
doesn't positively discriminate just to try and meet targets". The London office, however, is a
different animal and the makeup of the office staff "seems representative of London as a whole".
"We are hugely multicultural, with 19 languages between the 35 of us," says one consultant. But
there are still fewer minorities in the management ranks, we're told.
The same cannot be said for GLBT employees, who have attained positions at the "most senior
level" of the firm, and consultants' sexual preferences are not an issue at Capgemini. One insider
tells of a transgender, former colleague and describes the support they received from top
management as "absolutely first class".

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Cap gemini 16030141028

  • 1. CapGemini Capgemini is a French multinational management consulting corporation headquartered in Paris, France. It is one of the world's largest consulting, technology and outsourcing companies with 180,000 employees in over 40 countries. It was founded in 1967 by Serge Kamph in Grenoble, France. The company has been led by Paul Hermelin, the chairman and CEO of the Capgemini group, ever since his appointment in December 2001. Capgemini's regional operations are North and South America, Northern Europe & Asia Pacific and Central & Southern Europe. Services are delivered through four disciplines; Consulting, Technology, Outsourcing and Local Professional Services. Les Fontaines, a mansion in Chantillly, France, used by Capgemini as a training facility. Capgemini was founded by Serge Kamph in 1967 as an enterprise management and data processing company. The company was inaugurated as the Société pour la Gestion de l'Entreprise et le Traitement de l'Information (Sogeti). Business function in parent company and outside parent company Paris, February 18, 2016 – The Board of Directors of Cap Gemini S.A. chaired by Paul Hermelin, convened in Paris on February 17, 2016 to review and authorize the issue of the accounts1 of Capgemini Group for the year ended December 31, 2015. For Paul Hermelin, Chairman and Chief Executive Officer of Capgemini Group: “2015 marked a new phase in Capgemini’s history with the acquisition of IGATE completed on July 1st . Following the first phase of the integration process, we can confirm the synergies announced at the time of the transaction. Our combined offerings and expertise have already strengthened our positions in several strategic markets.
  • 2. Following the integration of IGATE and the strong organic growth* (+7.8%), North America, the most important market in terms of size and innovation, is now, by far, the Group’s largest region, representing 31% of revenues in the second half of the year. Furthermore, our global network of delivery centers, a key driver of our competitiveness, now counts nearly 100,000 employees, positioning us among industry leaders. Our 2015 performance exceeds our guidance that was increased in July following our first half results. Taking into account the integration of IGATE, revenues grew +12.7% and operating margin increased 140 basis points to 10.6%. Finally, the Group establishes itself as a reference partner for Digital Transformation. Our Digital and Cloud offerings grew 23% in 2015 and account for 22% of revenues. These domains will remain in our top priorities for investments in 2016.” ____________________________________________________________________________ 1 Audit procedures on the consolidated financial statements have been completed. The auditors are in the process of issuing their report. * The terms and non-GAAP measures marked with an (*) are defined and reconciled in the appendix to this press release. 2015 KEY FIGURES (in millions of euros) 2014 2015 Change Revenues 10,573 11,915 +12.7% Operating margin* as a % of revenues 970 9.2% 1,262 10.6% +30% +140bp Operating profit as a % of revenues 853 8.1% 1,022 8.6% +20% +50bp Net profit (Group share) Basic earnings per share (€) Normalized earnings per share (€) 580 3.68 4.22 1,124 6.67 4.84 +94% +81% +15% Net cash and cash equivalents / (Net debt) Organic free cash flow* 1,218 668 (1,767) 815^2 +22% The Group generated revenues of €11,915 million in 2015, up 12.7% compared with 2014. Excluding the impact of fluctuations in Group currencies against the euro and changes in Group perimeter, primarily the integration of IGATE purchased during the year, revenues grew 1.0%. Revenue growth reached 13.7% in the 4th quarter and 0.1% at constant perimeter and exchange rates. New orders recorded during the year totaled €11,538 million, compared with €10,978 million in 2014.
  • 3. The operating margin is €1,262 million, or 10.6% of revenues, up 140 basis points year-on- year exceeding the 10.3% objective as increased by the Group following the publication of the 1 st half results. Other operating income and expenses total €240 million, the increase compared to 2014 is primarily due to the acquisition of IGATE. Restructuring costs remain under tight control at €81 million. 2015 operating profit is €1,022 million, bringing the operating margin to 8.6% compared with 8.1% in 2014. The net financial expense is €118 million, up €48 million on 2014, after expenses of €51 million relating to the implementation of the IGATE acquisition financing (initially consisting of a bridge loan followed by bonds issue). The 2015 Group income tax is a €203 million income, following a one-off non-cash profit of €476 million due to the reassessment of deferred tax assets on US tax loss carry-forwards. On this basis, net profit (Group share) is €1,124 million for 2015, compared with €580 million in 2014 and 2015 basic EPS (earnings per share) is €6.67. Normalized EPS increased 15% year-on-year to €4.84. The Group generated an organic free cash flow* of €815 million², up €147 million on 2014. The Board of Directors has decided to recommend the payment of a dividend of €1.35 per share3 in 2016 at the next Shareholders’ Meeting on May 18th 2016, up 15 cents year-on-year. In addition, the Board of Directors has confirmed its commitment to actively manage the dilution, as such it approved4 a multi-year share buyback program of €600 million to offset the dilution from employee share ownership program and incentive instruments. A decision has been taken to allocate €150 million to the share buyback program in 2016. OUTLOOK For 2016, the Group forecasts revenue growth at constant exchange rates of 7.5% to 9.5%, an operating margin of 11.1% to 11.3% and organic free cash flow generation in excess of €850 million. The Group estimates the negative impact of currency fluctuations on revenues at -2%, primarily due to the appreciation of the euro against the pound sterling and the Brazilian real. 2 After payment of €76 million to increase the Group’s majority stake in its Brazilian subsidiary, CPM Braxis. 3 This dividend will be paid from June 1 st, 2016. In compliance with Euronext regulations, the ex-dividend date will be May 30, 2016. 4 Subject to renewal of the buyback authorization at the Shareholders’ Meeting.
  • 4. OPERATIONS BY BUSINESS Consulting services (4% of Group revenues) benefited from the repositioning around Digital Transformation, reporting year-on-year growth of 5.8% on a like-for-like* basis (i.e. at constant Group perimeter and exchange rates). Growth was driven by North America, UK and Rest of Europe with good momentum in Q4. 2015 operating margin rate is 9.1% compared with 8.2% in 2014. Local professional services (15% of Group revenues) reported annual revenue growth of 0.3% on a likefor-like basis. Growth in the UK and Benelux compensated the drop in activity in the aerospace sector. The operating margin improved 170 basis points to 11.6%. Application services (59% of Group revenues) growth was 6.3% on a like-for-like basis in 2015. Growth was driven, among other things, by investment in innovation around Digital & Cloud. All geographic regions enjoyed growth, particularly North America, Rest of Europe and the private sector in the UK. The operating margin rate is 11.9%, up 130 basis points on 2014. Other managed services (22% of Group revenues) reported a 10.9% decline in 2015 revenues on a likefor-like basis due to the planned decrease in revenues from a major Group contract in the public sector in the UK which impacted infrastructure services. The operating margin rate at 9.6% is up 80 basis points on 2014. OPERATIONS BY MAJOR REGION North America, with 28% of Group revenues, is now Capgemini’s first region thanks to strong organic growth and the acquisition of IGATE on July 1, 2015. Reported results confirm the Group’s strengthened position in the number one IT services market. Revenues grew 7.8% on a like-for-like basis and 49.1% at current Group perimeter and exchange rates thanks to the appreciation of the US dollar against the euro and the acquisition of IGATE. All sectors contributed to these results particularly the retail and consumer goods which grew over 20% on a like-for-like basis. Application services and Consulting services reported the strongest growth. Operating margin increased 76% to represent 14.9% of revenues, an improvement of 230 basis points year-on-year. United Kingdom and Ireland (18% of Group revenues) reported a 13.9% decline in revenues on a like-forlike basis (2.2% after accounting for the appreciation of the pound sterling against the euro). This decrease is entirely due to the planned reduction in revenues under the aforementioned contract. Driven by the financial services and retail and consumer goods industries, the private sector was extremely dynamic, helping to rebalance the relative weightings of the public and private sectors in this region. The operating margin rate improved 210 basis points to 13.4%. France (20% of Group revenues) reported an increase in revenues year-on-year of 1.2% on a like-for-like basis and 4.4% at current Group perimeter. Robust growth in the financial services and retail and consumer goods industries and the public sector more than offset the decline
  • 5. recorded in the manufacturing segment. The operating margin fell by 30 basis points year-on- year to 8.1% of revenues. Benelux (9% of group revenues) was stable (+0.1% year-on-year) after several years of decline. This return to stability is supported by the end of the multi-year contraction in financial services. The strong growth in manufacturing fully offset the continuing shrinkage in the public sector. The operating margin is €121 million in 2015, representing an increase of 70 basis points in the operating margin rate to 11.2%. The Rest of Europe region reported the strongest growth in Europe with 7.4% on a like-for-like basis (and 7.5% at current Group perimeter and exchange rates). This performance was fueled by most of the sectors, with the financial services, retail and consumer goods and energy industries enjoying double digit growth. The offshore leverage is progressing rapidly, particularly in Central and Northern European countries. The operating margin increased 20% year-on-year to 9.6% of revenues, up 100 basis points on 2014. The Asia-Pacific and Latin American region reported growth of 6.5% on a like-for-like basis (and 5.6% on a published basis). Growth remains strong in Asia-Pacific (in excess of 10% like- for-like) – driven by financial services. On the other side Latin America reported a drop in revenues on a like-for-like basis, despite a positive momentum at the beginning of the year, reflecting the economic downturn in this region. The operating margin rate is 4.2%, down 190 basis points. HEADCOUNT On December 31, 2015, the total headcount of the Group was 180,639 compared with 143,643 employees at the end of last year, representing a net increase of 26%, driven by the IGATE integration. Our global delivery network counts 97,301 employees (including 86,405 in India), representing 54% of the total Group headcount compared with 47% the previous year. BALANCE SHEET The Group had at December 31, 2015, €1,948 million in cash and cash equivalent (net of bank overdraft). After accounting for borrowings of €3,811 million, cash management assets and derivative instruments, Group net debt* is €1,767 million at the end of 2015, compared with a net cash position of €1,218 million one year before. This change to a net debt position is explained by the acquisition of IGATE (US$ 3,961 million paid, excluding the debt contributed by IGATE). DISCLAIMER This press release may contain forward-looking statements. Such statements may include projections, estimates, assumptions, statements regarding plans, objectives, intentions and/or expectations with respect to future financial results, events, operations and services and product development, as well as statements, regarding future performance or events. Forward-looking statements are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates”, “plans”, “projects”, “may”, “would” “should” or the negatives of these terms and
  • 6. similar expressions. Although Cap Gemini’s management currently believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking statements are subject to various risks and uncertainties (including without limitation risks identified in Cap Gemini’s Registration Document available on Cap Gemini’s website), because they relate to future events and depend on future circumstances that may or may not occur and may be different from those anticipated, many of which are difficult to predict and generally beyond the control of Cap Gemini. Actual results and developments may differ materially from those expressed in, implied by or projected by forward- looking statements. Forward-looking statements are not intended to and do not give any assurances or comfort as to future events or results. Other than as required by applicable law, Cap Gemini does not undertake any obligation to update or revise any forward-looking statement. This press release does not contain or constitute an offer of securities for sale or an invitation or inducement to invest in securities in France, the United States or any other jurisdiction. APPENDIX Organic growth, or like-for-like growth, in revenues is the growth rate calculated at constant Group perimeter and exchange rates. The Group perimeter and exchange rates used are those for the published fiscal year. Operating margin is one of the Group’s key performance indicators. It is defined as the difference between revenues and operating costs. It is calculated before “other operating income and expense” which include amortization of intangible assets recognized in business combinations, the charge resulting from the deferred recognition of the fair value of shares granted to employees, and non-recurring revenues and expenses, notably impairment of goodwill, badwill, capital gains or losses on disposals of consolidated companies or businesses, restructuring costs incurred under a detailed formal plan approved by the Group’s management, the cost of acquiring and integrating companies acquired by the Group, and the effects of curtailments, settlements and transfers of defined benefit pension plans. Normalized net profit is equal to profit for the year (Group share) adjusted for the impact of items recognized in “Other operating income and expense”, net of tax calculated using the effective tax rate. Normalized earnings per share is computed like the basic earnings per share, i.e. excluding dilution. Organic free cash flow is equal to cash flow from operations less acquisitions of property, plant, equipment and intangible assets (net of disposals) and adjusted for cash out relating to net interest cost.
  • 7. RESULTS BY REGION Region Revenues Year-on-year growth Operating margin rate 2015 (in € millions) Published Like-for- like 2014 2015 North America United Kingdom and Ireland France Benelux Rest of Europe Asia Pacific and Latin America 3,325 2,150 2,444 1,078 1,988 930 +49.1% -2.2% +4.4% +0.4% +7.5% 5.6% +7.8% -13.9% +1.2% +0.1% +7.4% +6.5% 12.6% 11.3% 8.4% 10.5% 8.6% 6.1% 14.9% 13.4% 8.1% 11.2% 9.6% 4.2% Total 11,915 +12.7% +1.0% 9.2% 10.6% RESULTS BY BUSINESS Business Revenues Year-on-year growth Operating margin rate 2015 (in € millions) Published Like-for- like 2014 2015 Consulting Services Local Professional Services Application services Other managed services 480 1,744 6,997 2,694 +8.7% +10.6% +19.5% -0.2% +5.8% +0.3% +6.3% -10.9% 8.2% 9.9% 10.6% 8.8% 9.1% 11.6% 11.9% 9.6% Total 11,915 +12.7% +1.0% 9.2% 10.6% SUMMARY INCOME STATEMENT AND OPERATING MARGIN (in € millions) 2014 2015 Change Revenue (10,573) 11,915 +12.7% Operating Expenses (9,603) (10,653) Operating margin 970 1,262 +30% as a % of revenues Other operating income and expense 9.2% (117) 10.6% (240) +140bp Operating profit 853 1,022 +20% as a % of revenues Net financial expense Income tax income / (expense) (-) non controlling interests 8.1% (70) (210) 7 8.6% (118) 203 17 +50bp Profit for the year, Group share 580 1,124 +94%
  • 8. NORMALIZED EARNINGS PER SHARE (in € millions) 2014 2015 Change Profit for the year, Group share 580 1,124 +94% (-)Exceptional tax income* 0 (476) Profit for the year, Group share – excluding exceptional income 580 1,124 +94% Effective tax rate (-)Other operating income and expenses, net of tax* 26.8% 87 30.1% 167 Normalized profit for the year 667 815 Weighted average number of ordinary shares 157,855,433 168,452,917 Normalized earnings per share (in euros) 4.22 4.84 +15% a recognition of a non-cash exceptional profit of €476 million following the reassessment of deferred tax assets on US tax loss carry-forwards b calculated at the effective tax rate. CHANGE IN CASH AND CASH EQUIVALENTS AND ORGANIC FREE CASH FLOW (in € millions) 2014 2015 Cash flows from operations 815 1,004 Acquisitions of property, plant and equipment and intangible assets, net of disposals Net interest cost (142) (5) (179) (10) Organic free cash flow 668 815 Other cash flows from (used in) investing and financing activities (225) (1,033) Increase (decrease) in cash and cash equivalents 443 (218) Effect of exchange rate fluctuations 68 26 Opening cash and cash equivalents, net of bank overdraft Closing cash and cash equivalents, net of bank overdraft 1,629 2,140 2,140 1,948 NET CASH AND CASH EQUIVALENTS (in € millions) 12/31/2014 12/31/2015 Cash and cash equivalents Bank overdrafts 2,141 (1) 1,950 (2) Cash and cash equivalents, net of bank overdraft 2,140 1,948 Cash management assets 90 116 Long-term borrowings Short-term borrowings and bank overdrafts (-) Bank overdrafts (914) (102) 1 (3,161) (652) 2 Borrowings, excluding bank overdrafts (1,015) (3,811) Derivative instruments 3 (20) NET CASH AND CASH EQUIVALENTS /(NET DEBT) 1,218 (1,767)
  • 9. Founder of Capgemini Serge Kamph It’s 1967 in Grenoble, France: Television broadcasts are in color for the first time. The city is buzzing about the upcoming 1968 Winter Olympics. Inspired by these exciting technological and cultural changes, entrepreneur Serge Kampf decides the time is ripe to launch an IT company. And so began the Capgemini story. Serge Kampf, founder of the Capgemini Group passed away on March 15, 2016. This web page gathers all tributes to him and reminds about his important legacy.
  • 10. Head of Parent company CEO & Chairman- Paul Hermelin Paul Hermelin spent the first fifteen years of his professional life in the French government, primarily in the Ministry of Finance. He started his career in Jacques Delors's Ministry of the Economy. From 1988 to 1991, he worked in Hubert Curien's Ministry of Research and Technology. From 1991 to 1993, he worked in Dominique Strauss-Kahn's Ministry of Industry and Foreign Trade as chief of staff. He joined Capgemini in May 1993 where he was in charge of coordinating central functions and was appointed as the CEO of the Capgemini Group on January 1, 2002. In May 2012, Hermelin became chairman and CEO of the Capgemini Group. Paul Hermelin graduated from the Ecole Polytechnique in 1972 and the Ecole Nationale d’Administration (ENA) in 1978. MANAGEMENT TEAM: Positon Name Financial Services and Latin America Thierry Delaporte Chief Financial Officer Aiman Ezzat People Management and Transformation Hubert Giraud Competitiveness and India Patrick Nicolet
  • 11. Application Services One**, Cloud Infrastructure Services, Sogeti and Cloud Services Salil Parekh Positon Name Application Services Two***, Business Services, Capgemini Consulting and Digital Services Olivier Sevillia Deputy Head of Application Services Two Jean-Philippe Bol Application Services North America Tim Bridges Digital Services Dee Burger Delivery André Cichowlas Chief Technology Officer Lanny Cohen Strategy and Development Pierre-Yves Cros Capgemini Consulting Cyril Garcia Sales Srikanth Iyengar Business Services Aruna Jayanthi CEO India Srinivas Kandula General Secretary Jean-Baptiste Massignon Cloud Infrastructure Services Paul Nannetti Marketing and Communications Virginie Regis Application Services Asia-Pacific Luc-François Salvador Sogeti Hans van Waayenburg
  • 12. INTERNATIONAL MANAGEMENT TEAM: Positon Name Partnerships and Strategic Initiatives Fernando Alvarez Business Coordination France Christophe Bonnard Bank and Financial Services Anirban Bose Insights & Data John Brahim Application & Infrastructure Services - Latin America Walter Cappilati Internal Audit, Ethics and Compliance Philippe Christelle Infrastructure Services Operations Richard Dicketts Financial Services Operations Jack Dugan Sogeti - Operations Stephan Ek Digital Customer Experience Pierre-Yves Gléver Business Coordination USA Navin Goel Senior Executive Advisor to Group Chairman and CEO Philippe Grangeon Cloud & Cybersecurity Franck Greverie Business Coordination United Kingdom Christine Hodgson General Electric Account Executive Lalit Khandelwal Applicative Maintenance Continental Europe Deepankar Khiwani External Communications & Digital Christel Lerouge Application Services North America Consumer Products, Retail, Transportation and Distribution (CPRTD) Ted Levine Application Services North America Energy & Utilities Brad Little Finance Alain de Marcellus
  • 13. Control and Reporting Karine Marchat Application Services United Kingdom Paul Margetts Position Name Insurance John Mullen Infrastructure Services Practices & Supply Chain Sandy Padayachee Executive Committee Secretary Catherine Perronet Digital Manufacturing & Sogeti High Tech Jean-Pierre Petit Financial Services, Applicative Maintenance, Testing Nagasamy Pitchai Consumer Products and Distribution Baru Rao Contract Management Isabelle Roux-Chenu Business Coordination Germany Michael Schulte Application Services France Jérôme Siméon Business Services Lucia Sinapi-Thomas Application Services North America Sujit Sircar Business Services - Operations Chris Stancombe Business Coordination Canada Sanjay Tugnait Application Services Nordics Leendert Venema Application Services The Netherlands Jeroen Versteeg Infrastructure Services Steve Wanklin Operations - India Ashwin Yardi Application Services China Cliff Yu Subsidaries: IGATE Capgemini India Euriware
  • 14. Open Cascade Regional Office: North America United Kindom and Ireland France Benelux Rest of Europe Asia Pacific and Latin America North America: Vive la technologie! Capgemini North America oversees the US, Canadian, and Mexican operations of Paris-based consulting giant Cap Gemini. Like its parent, the subsidiary offers management and IT consulting services, systems integration, technology development design, and outsourcing services through nearly 30 offices in about a dozen US states, Puerto Rico, and Canada. Its consultants serve clients in a variety of industries, including automotive, energy and utilities, financial services, high-tech, manufacturing, and transportation. The unit was formed in 2000 after Capgemini acquired the consulting arm of accounting giant Ernst & Young. Capgemini North America represents almost 21% of its parent's annual sales. † Some telephone numbers on the Hoover’s site may be on a country’s do not call or do not contact list including, but not limited to, the United Kingdom’s CTPS or TPS registers. It is a legal requirement that companies do not make sales or marketing calls to registered numbers. These are central opt out registers whereby corporate subscribers and individuals can register their preference not to receive unsolicited sales and marketing telephone calls. By using the information provided on the Hoover’s sites, as the direct marketer you represent and warrant that you will use such information in compliance with all applicable local, state, national or international laws and regulations, including any local do not call registers or marketing regulations, and agree to
  • 15. defend, indemnify and hold harmless Dun & Bradstreet and each of its affiliates in the event your use violates such laws and regulations. United Kingdom and Ireland: The Board meets at least six times a year. Meetings are convened by the Chairman in accordance with a timetable agreed upon by the Board before the end of the prior year. This timetable may be amended during the year in response to unforeseen circumstances or at the request of more than one director. In 2014, the Board met seven times. The average attendance rate was 92%. Internal Rules of Operation The Board has established and adopted internal rules of operation mainly in order to clarify the scope of (and bases for exercising) the various powers entrusted to the Board, the specialized Board committees, the Chairman and CEO and the Vice-Chairman. It also sets out the list of obligations under the "Code of Business Ethics" with which directors undertake to comply. Board Committees The general purpose of these committees is to examine or prepare certain resolutions involving their particular areas of expertise, draft proposals and transmit viewpoints or recommendations to the Board. They have no decision- making authority—decisions are taken by the Board of Directors, assembled according to the requisite procedure—and may not treat subjects outside their own fields of competence. Each member of the Board of Directors can attend all committee meetings, except in the case of conflict of interests. Audit Committee ∑ Chairman: Yann Delabrière ∑ Members: Laurence Dors, Phil Laskawy, Xavier Musca ∑ Meetings: six in 2014 with an average attendance rate of 100%
  • 16. Compensation Committee ∑ Chairman: Pierre Pringuet ∑ Members: Lucia Sinapi-Thomas, Caroline Watteeuw-Carlisle Invited: Kevin Masters ∑ Meetings: six in 2014 with an average attendance rate of 93% Ethics and Governance Committee ∑ Chairman: Daniel Bernard ∑ Members: Serge Kampf, Laurence Dors, Pierre Pringuet, Bruno Roger ∑ Meetings: four in 2014 with an average attendance rate of 83% Strategy and Investments Committee ∑ Chairman: Bruno Roger ∑ Members: Paul Hermelin, Daniel Bernard, Anne Bouverot, Caroline Watteeuw-Carlisle ∑ Meetings: six in 2014 with an average attendance rate of 97% FRANCE: financial informations Capgemini shares are listed on the stock exchange of Paris under ISIN code FR0000125338. You will find financial information and our publishing schedule in our relations section investors, press releases sides, analyst presentations and webcasts. Our global leadership in consulting, technology services and outsourcing Our working methods Deeply multicultural, our company boasts its own style based on its solution Collaborative Business Experience ™ , and its global delivery model Rightshore . Through a network of strategic alliances and partnerships with experts, we take informed decisions in allobjectivity by recommending solutions tailored to the needs of our customers.
  • 17. We work alongside our customers to develop and deliver business and technology solutions that fit their needs and give them the results they want. Our four key disciplines ∑ Consulting services (Capgemini Consulting) : We identify, develop and implement transformation projects that enhance growth and accentuate the competitive advantage of our customers. ∑ Systems integration services : our teams design, develop and implement technological projects covering the integration of complex systems and the development of computer applications. ∑ Local Professional Services (Sogeti): We offer professional technology services to meet local needs in terms of infrastructure, applications, engineering, testing and operations. ∑ Managed Services : our experts help our customers and provide any assistance, partial or total, they need, in the management of their information systems and related activities for a period of five years on average, that it is nevertheless possible to extend up to ten years or more. The sectors in which we operate Our experience , which embraces all sectors, allows us to constantly keep pace with our customers. We understand their needs and offer the solutions best suited to their business objectives specific. We are known to have a knowledge particularly strong in the following areas: ∑ Public Sector : our teams ensure the modernization of services, while introducing reforms fiscal meaningful to the attention of the public service companies, administrations and local authorities. ∑ Universal services : as a world leader in information systems for networks and smart meters, we help companies master the ever-changing regulations and to respond to emerging environmental concerns. ∑ Financial services : serving over 900 clients worldwide, we simplify applications and IT infrastructure for financial institutions to enable them to keep ahead of relying on innovative business models, such as management mobility and intelligent data. ∑ Consumer products, retail and distribution : we help our customers meet the various challenges that they face, regardless of the sector, exploiting technology, such as cloud computing, to develop plat- forms of electronic commerce and improve the user experience. ∑ Telecommunications : Strong over 30 years experience in this industry, we offer innovative solutions based on our extensive knowledge of this area and the digital environment, as well as our technological know-how in terms of networks. Our main initiatives ∑ Management of business information : Our services cover the entire life cycle of data and enable companies to take full advantage of the value of their resources. ∑ Testing Services : This full range proposed jointly by Capgemini and Sogeti includes industrialization solutions and software testing services and structured quality assurance. ∑ Mobile solutions : as qu'orchestrateurs Mobility, Capgemini and Sogeti share, develop and manage a network of equipment, platforms and solutions to provide resources to employees and mobile customers the power of the business.
  • 18. Benelux: Corporate Responsibility & Sustainability Approach In today's unpredictable business environment, the need for responsible business practices is more critical than ever. We believe that corporate responsibility and sustainability deliver added value to our clients, employees, shareholders, business partners and the communities in which we live and operate. ∑ Values & Ethics: It’s about who we are and the way we do business. We embrace our core values of honesty, boldness, trust, freedom, solidarity, modesty and fun. Our rigorous Code of Business Ethics underpins our business practices, procurement behaviors and employee welfare policies. ∑ Environmental Sustainability: We have a deep and measured understanding of our impact on the environment. We are working to reduce our impact on the natural environment from energy, business travel and waste. We raise employee awareness on critical issues in sustainable development. ∑ Community Engagement: We strive to have a positive impact on the communities in which we live and operate. To do so, we work with local, national and international charities, NGOs and authorities on topics such as inclusivity and skills for the future. We support and encourage our employees to actively participate in community development. ∑ People Culture: We aim to be the employer of choice for people who wish to flourish in a creative and diverse environment. As a responsible and inclusive employer, we focus on the professional development and well being of all our employees, with respect and value for their diversity. We ensure that our business practices and facilities empower delivery excellence. ∑ Client Services: Our clients benefit from our deep understanding of sustainability and our world-class business transformation capabilities. We incorporate customer dialogue and feedback to ensure long-lasting value and tangible results.
  • 19. Europe: A winning combination Capgemini is a global consultancy engaged in information technology, management consulting, outsourcing and professional services. Headquartered in Paris, it employs over 92,000 people through offices in over 30 countries. The company's clients are active in the automotive, consumer products, distribution, energy, chemicals, financial services, health care, life sciences, manufacturing, retail, media and telecoms industries, as well as the public sector. The company underwent something of a shift in identity in April 2009, creating a new strategic business unit known as Capgemini Consulting, a move that brought all of its worldwide strategy and transformation operations consulting operations under one banner, and installed the company as the largest European consulting outfit at a stroke. The Capgemini Consulting unit employs over 4,000 consultants worldwide and contributes some 8 percent of total revenue. Headquartered in London, Capgemini Consulting is headed by Pierre Yves-Cros, and has three practice areas, each dedicated to business transformation: strategy and transformation, operations transformation (which includes marketing, sales and service, finance and employee transformation, and supply chain management), and technology transformation (where services include "technovision," accelerated IT restructuring and consulting for CIOs). According to the company, this new structure allows it to better utilize its global standing to benefit clients through sharing of best practices and experience across the company. Names, more names and acquisitions Capgemini was founded by Serge Kampf in 1967 as Sogeti, a boutique provider of IT services targeting only local French markets. It was too successful to maintain a low profile for long, however, and by 1975, with the acquisitions of the larger companies CAP and Gemini Computer Systems, the company had a presence in 21 countries. Kampf toyed a bit with the corporate name, working for a while as Cap Gemini Sogeti, then opting for Cap Gemini. The company merged with the consulting unit of Ernst & Young in an $11 billion megadeal in 2000 and, apparently abandoning the earlier lessons of superfluous nomenclature, became Cap Gemini Ernst & Young. This was short-lived, though, as a 2004 rebranding not only shortened, but compressed the name to Capgemini. While the company may have settled on its new slim-line branding, its taste for monster-sized acquisitions hasn't abated; in 2007, it paid $1.2 billion for Kanbay International, a global IT services
  • 20. outfit with a significant foothold in India. That market has been the focus of increased attention by Capgemini in recent years, as the company has sought to establish its footprint, and a significant outsourcing presence, in the country. The focus is an understandable one, as around 37 per cent of the company's revenue is generated through outsourcing. Capgemini's technology unit is its largest component, meanwhile, contributing almost 40 per cent of revenue. The right stuff Through its business divisions around the world, Capgemini can legitimately claim to have a consulting empire on which the sun never sets. That's something it puts to good use through its Rightshore global delivery model, utilizing its network of international centers to provide specialist services around the clock for accelerated delivery, applications management service, business process outsourcing and infrastructure management. The model provides cost benefits for clients as well, translating into savings the lower cost of doing business in markets such as India, China and Eastern Europe. The company is investing heavily in the method as well, with plans to increase the number of employees it has in India to 40,000 by the end of 2010. This will result in Capgemini having more employees in India than in any other country, making up 40 per cent of its total workforce. THE LATEST ON CAPGEMINI Culling talent July 2009 In a move to further the company's global expansion and established expertise, Capgemini announced the recruitment of Ranjan Tayal as vice president and head of its India practices. Tayal came from among the top brass at troubled Satyam, where he operated as VP and business head for India and South Asia, and was reportedly responsible for 4 per cent of Satyam's revenue over the past four years. Bench-pressing the EU July 2009 The European Commission extended its contract with Capgemini Consulting (through Cap's Nederland B.V. practice) to provide eGovernment supply-side benchmarking to the EU. Previously, the company had operated on a seven-year contract with the commission to conduct benchmark studies, which surveyed the effects of eGovernment online services to transform the public sectors of EU member states. The new agreement extends that contract by another four years. Moving into Romania June 2009
  • 21. The firm opened a new outsourcing centre in the Romanian town of Iasi. Part of the company's plan to expand its outsourcing presence throughout Eastern Europe, the new centre is situated in one of Romania's largest University towns, giving Capgemini easy access to a deep pool of qualified and (ideally) skilled labour. Initially, the centre will offer service desk support for Capgemini clients, although where those clients may be (and hence the languages required) was unclear. Energy expertise January 2009 A Capgemini study highlighted the problems facing the long-term implementation of renewable energy into national energy grids. According to the report, many utilities companies are being put off by the complex integration of large-scale wind farms and their variable power loads, hampering the development of green energy projects. Also in the energy field, a November 2008 Capgemini report provided a startling assessment of the state of the U.K.'s energy production. The report claimed that, without significant increases in investment in power generation in the next decade, the country will not be able to meet demand for power. What's holding it back? The paper blamed dwindling North Sea gas reserves, a move toward less effective renewable technology and the closure of around one quarter of the country's energy plant capacity. Opening the Czech book November 2008 In a move that reinforced its position in the emerging Eastern European market, Capgemini entered into an agreement to buy Czech IT services and consulting company Empire. The buyout, which includes a majority stake in Empire's subsidiary Sophia Solutions, a local business intelligence and data warehouse expert, significantly increases Capgemini's client base in the Czech Republic. Among those new clients are some of the leading players amongst the financial services and telecom industries, as well as several major Czech public-sector institutions. Heading for the clouds November 2008 Recognizing a trend that seems likely to become a standard of business life in future years, Capgemini added a new option to its suite of IT consultancy options in November 2008: cloud computing. Not that it's going to be doing anything like hosting software, running data processing or storing clients' data itself, the company's UK wing signed an outsourcing deal for all of that with Amazon Web Services, a subsidiary of retailer Amazon.com.
  • 22. Capgemini's role in the cloud sphere will be limited initially to a new cloud computing center of excellence, which will be staffed with a team of Amazon Web Services-trained professionals. Located in North America, Europe and India, they will help Capgemini's clients evaluate and implement the appropriate web service offerings. Those, meanwhile, will initially come in three major areas of technology: Microsoft Sharepoint in the cloud, Oracle ERP in the cloud and cloud- based development and testing of applications. Public-sector success October 2008 In the UK, Capgemini was chosen to carry out operational service and IT improvements by West Sussex Council. The aim of the project is ultimately to find cost savings for the council that can be passed on to residents in the form of reduced council tax bills. The company won a similar contract from Dorset County Council in August 2008, while in April of that year London's Croydon Council signed a five-year contract extension with Capgemini to continue the ongoing transformation of its local government services. The longest running private finance initiative agreement of its kind in the UK, the five-year extension is worth £83 million and covers IT and telecommunications support, which Capgemini has provided for the council since 2003. Going Dutch July 2008 Capgemini announced a â'¬255 million deal to purchase Getronics PinkRoccade Business Application Services BV, a division of Getronics PinkRoccade. The company is one of the top IT services providers in the Dutch public sector, offering solutions that address the entire applications life cycle, from applications management consulting to project development, integration and implementation. Its clients include planning agencies, state administrations and social security bodies, plus insurance and banking corporations outside of the public sector. Shuffling the exec deck May 2008 The company unveiled Olivier Picard as its new development director. Picard joined the company from Alcatel Lucent, where he had served as a member of the executive committee, leading the Europe and South region as president. His appointment is the latest in a string of senior-level appointments at Capgemini in recent years. In February 2007, for example, the company named Lanny Cohen as CEO of the North American project and consulting operations. Cohen's predecessor, Salil Parekh, became executive chairman of Capgemini India, taking on responsibility both for overseeing growth in the region and for smoothing the transition following the Kanbay
  • 23. International acquisition. Another change in 2007 was the appointment of Henk Broeders as head of Asia Pacific and Continental Europe, which covers Benelux, Scandinavia, Germany, Italy and Eastern Europe. Applying some (Uni)leverage April 2008 Capgemini extended its contract with Unilever to acquire and manage the company's financial centres in Chile and Brazil. The deal increases the consultancy's outsourcing foothold in South America, following the opening of its first centre in Buenos Aires in November 2007, and will see 400 professionals from Unilever come into the Capgemini fold. Where it falls down Sources are unimpressed with the remuneration packages on offer at Capgemini, with many citing it as one of the main downsides of the company. To make matters worse, they expect 2009's bonus packages to be less than healthy due to the faltering economy. Perks aren't raved about either, with one consultant describing them as "nothing out of the ordinary". Laptops, mobile phone compensation, company cars at a favorable lease, gym membership, restaurant tickets, health and life insurance, and broadband at home are some of the benefits respondents mention. New mothers also get "90 per cent pay on maternity leave for at least six months", and those who near burnout can opt for "career breaks" or buy more holiday if they want. Focusing on the positive, the consultancy does offer a "great social life", sources say, and puts on a lot of events. "I have played in two UK versus France company rugby matches, one in Paris and one in Biarritz. These provided a great networking opportunity and were fully paid for by the company," explains a respondent. In Norway, the company provides "cabins in the mountains" for its staff to use, and every quarter, the firm holds what are known as "Gold Wings awards to recognize project deliveries and exceptional work", which are described as "very encouraging". And of course, if you like your fruit, you'll fit in at Capgemini, as the company has it delivered fresh to the office door every morning. Capgemini also supports a number of charities, including the Prince's Trust, in the UK and the Naandi Foundation. Pushing a coaching culture Respondents also report that Capgemini has a "large training budget per employee", as well as its own university and academy where official training takes place. The firm "actively encourages as much training as is possible, without interfering with client commitments". Every staffer has between eight to 10 days allocated to official training per year, from an "extensive training curriculum". We're also told that the "corporate training facility in Paris is first class".
  • 24. Sources feel Capgemini promotes a "great feedback and coaching culture", made possible through "mentoring and on-the-job training" by means of a "dedicated coach". They describe their supervisors as "very approachable", "very accessible and hands on" more so than at competitor companies, insiders argue. "I feel like we are one family, where no conversation is taboo and everyone has time for you if needed," states a London-based consultant. No panic, yet There is a "sense of realism, rather than pessimism, pressure or panic", when it comes to Capgemini's chances of coming through the recession unscathed. The London office is particularly confident in its ability to keep revenue up, due to the large amount of public-sector work it carries out. "We seem well placed, partly due to the amount of government work we have," says a consultant there. Across the Channel, consultants are also quietly confident, saying the outlook is "OK, due to the strong relationship with clients and the broad expertise on a large scale of sectors not deeply impacted by the crisis, such as energy, utilities and life science". Others are not so optimistic. "Business is still strong, but sales opportunities are decreasing rapidly, employee morale is moderate, but fear of losing your job is increasing," an insider in Utrecht reports, while a colleague in Frankfurt states, "We will need to adapt and lay off some people if the situation does not change. Even new methodologies, tools or topics will not help if industry is not willing to spend money for consulting." And respondents tell us that the Stockholm office has stopped rehiring when people leave. Across the board, consultants agree that one of the main problems the company faces is that it "is still perceived as an IT company", and less of a management and strategy shop. In the strategy arena, insiders admit to "witnessing a general decline in capacity over time", and believe that, in this field, the firm will have "to fight an uphill battle against stronger brands". Better than the norm "Where are the women partners?" asks a Paris-based source. We're there is no discrimination when it comes to hiring women, and "female consultants are regarded in the same way as male consultants" at the company. That said, it continues to be a "very male" consultancy, more so than other consulting firms I have worked in", says a staffer, and the "policy doesn't seem to be aimed at promoting more participation". "There are special events on international women's day, special forums for women and the like, but nobody, especially the women, really cares about it," a source claims. Even the Stockholm office, which has a good gender split lower down the ranks, and a female country manager to boot, only has a 20:80 ratio of women to men at partner level. Most other offices, we're told, have lower proportions. The spread of minorities throughout the consultancy depends on the office in which you are based. In Utrecht, we're told that for "a consulting firm, the diversity in minorities is probably about right, but
  • 25. for a modern firm, it is quite low". In fact, that office is described at "mostly white". The same goes for the Paris office, where there is little minority representation, according to insiders. And while sources claim the company is "very receptive to minorities", it takes a "fair approach to equality and doesn't positively discriminate just to try and meet targets". The London office, however, is a different animal and the makeup of the office staff "seems representative of London as a whole". "We are hugely multicultural, with 19 languages between the 35 of us," says one consultant. But there are still fewer minorities in the management ranks, we're told. The same cannot be said for GLBT employees, who have attained positions at the "most senior level" of the firm, and consultants' sexual preferences are not an issue at Capgemini. One insider tells of a transgender, former colleague and describes the support they received from top management as "absolutely first class".