CAPGEMINI_REGISTRATION_DOCUMENT_2017

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FINANCIAL INFORMATION

4.1 Analysis of Capgemini Group 2017 consolidated results

construction of a Digital platform hosted on a public Cloud, X delivering a better customer experience to an Asian telecoms operator{(October). During its Capital Markets Day in September, the Group presented several customer case studies illustrating the rapid transition of its activities to Digital and the Cloud. Capgemini also confirmed its operating margin (between{12.5% and{13.0%) and organic growth (between{5% and{7%) ambitions. The Group also presented a progress report on the automation of its IT{services. Automation projects currently focus primarily on the outsourcing of business processes and infrastructure management. They have demonstrated that value creation mainly stems from reduced turnaround time, improved quality and user experience. Accordingly: at a utility company in the United-Kingdom, the automation of X IT{service desk operations leveraging Capgemini’s Odigo and third-party technologies led to a 20% reduction in incidents with over 80% successful dialogue with the virtual agent; the automation of the deep monitoring of mission critical X applications at a global media and entertainment group enabled ten{times faster incident resolution and a 30% reduction in incidents; at a Europe-headquartered global furniture retailer, the X automation of payment alerts processing allowed better consumer experience with an 80% drop in point-of-sale payment issues and a 70% reduction in resolution time; the automation of the incident management process using X natural language processing (NLP) leveraging and feeding a knowledge database led to a 15% reduction in turnaround time at a British retail company. The Group also announced in November, a two-year agreement with the UK{Cabinet{Office to develop a Robotic Process Automation (RPA) Center of Excellence. Finally, in September the Group published the results of a study of 1,000{companies implementing artificial intelligence, countering fears that AI will cause massive job losses in the short-term and highlighting the associated growth opportunities.

the Group was also selected in North America by a global ❚ electronics company to accompany its Digital transformation through setting-up a Digital plant and implementing product lifecycle management solutions (April), finally, Capgemini built a Digital plant for a leading ❚ aerospace group, providing data analysis for use in monitoring satellite production and investigating possible anomalies{(April); in the Financial Services & Insurance sector: X Capgemini partnered with an American bank to help it increase its US market share through new products, services and/or innovative experiences, leveraging Fahrenheit{212 expertise (April), the Group was chosen to accompany a Scandinavian financial ❚ institution in its{IT and financial transformation journey and provide cost-efficient and effective management of its IT{landscape, to support its growth and performance (April); finally, in the Energies & Utilities sector: X Capgemini implemented Business Intelligence and DevOps ❚ agile technologies with SAP{HANA for a major global oil and gas company (April), the Group also announced the implementation of ❚ Salesforce in a leading European energy company (April) and provided a US energy company with application development, Cloud hosting and maintenance for web-based applications for energy conservation and efficiency programs (October). Cloud migration, both public and private, continues to develop rapidly. It remains an additional growth lever for Capgemini, as illustrated by the following contracts: massive migration (several hundred applications) to a private X Cloud for a major US bank and to the Amazon Web Services public Cloud for a global leader in the beverages industry (April); transformation of the infrastructure of one of the world’s X leading healthcare insurance organizations, moving its data and services to a private Cloud{(April); development of new APIs (application programming X interfaces, enabling software components to communicate) for a leading US bank (April);

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REGISTRATION DOCUMENT 2017 — CAPGEMINI