INTRODUCTION TO THE CAPGEMINI GROUP

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2 2. INTRODUCTION TO THE CAPGEMINI GROUP Some examples of alliances and partnerships: �� Capgemini, a cloud computer partner of Microsoft, will commercialize, via its Infostructure Transformation Services (ITS) offer the Microsoft Business Productivity on Line suite, which proposes message, communication and collaboration services on the SasS model, with a pay-as-you-go system. �� Par tner of Oracle in the public sector, the Group has concluded an agreement with this software publisher to commercialize (under the name Oracle Revenue Management for Public Sector Authorities) Oracle solutions combined with Capgemini’s expertise in the area of tax collection. This offer was rolled out in the United States and Australia. �� Capgemini is also a partner of Palantir Technologies, a supplier of integration, analysis and data protection systems for the public sector: the two companies are uniting their skills and expertise in order to supply governments with technical platforms for the fight against fraud, crime and terrorism, with in-built guarantees for individual liberties. �� The partnership with WMware will enable the Group to propose, as part of its ITS offer, a new suite of virtualization services (V2B) that provide the insight, roadmap and support to help clients achieve infrastructure agility and cost reductions. �� Partner with Intel in home automation, the Group works alongside utilities in the deployment of Intel’s new domestic control panel for the smart use of energy within the home. Capgemini will develop two types of applications: the first to enable secure communications between the control panel and the utilities’ information systems, the second to provide new services to consumers. As well as these technological partnerships, Capgemini Consulting is collaborating with the Massachusetts Institute of Technology (MIT) Center for Digital Business on a threeyear research program. Capgemini Consulting will conduct a joint research study into digital transformation through interviews with management-level executives from 30 of the world’s leading companies in sectors such as financial services, pharmaceuticals, retail and the public sector. The study will examine how companies around the world are managing and benefiting from digital transformation and the processes and best practices involved. The findings will provide Capgemini Consulting with detailed market insights to inform its experts and, ultimately, its clients. For Pierre-Yves Cros, head of Capgemini Consulting, “Digital transformation goes well beyond technology. It is about the impact that digitization is having on the business, from strategy to people through to operations. This is also about a new transformation agenda for companies: making customer experiences coherent within the multitude of channels now available. It is about making better and smarter decisions based on an ever increasing flow of data, creating open companies with strong links to customers and suppliers.” 16 The Group’s Global Partners REFERENCE DOCUMENT 2010 CAPGEMINI Strategic partners Strong-growth partners HP IBM Microsoft Oracle SAP CONTRACTS WON Adobe Amazon Web Services Cisco EMC Google Intel Pega Salesforce SAS Teradata VMware More buoyant macroeconomic conditions in 2010 were translated into a gradual upturn in companies’ IT systems investments. Sectors such as Financial Services and Manufacturing saw even healthier spending. As a result, Capgemini was able to post an excellent performance, with bookings hovering around the 10 billion dollar mark, 9% higher than in 2009. The Consumer Products, Retail, Distribution & Transportation sector saw its order book grow by as much as 29%, while the Financial Services sector also recorded a healthy growth of 9%. The year 2010 also saw the renewal of several existing contracts (for example, General Motors in the United States, Hydro One in Canada, the Metropolitan Police in the United Kingdom and GDF-Suez in France). This proves that our clients continue to place their confidence in Capgemini’s ability to help them carry out their transformation programs. The Group continued with its policy of growing the utilities sector (Anglian Water in the United Kingdom), the public sector in the United States (Department of Agriculture, State of Nevada), and in France (Budget Ministry) and in BPO (Nokia Siemens Networks, Kraft Foods). The fourth quarter of 2010 saw a particularly sustained pace for the signature of new contracts: the three businesses most exposed to economic conditions (Consulting, Systems Integration and Local Professional Services) all registered an average increase of 11% in order bookings compared with the fourth quarter of 2009. The contracts with Dutch bank ABN Amro, Air France-KLM, the Dutch Ministry for territorial development and the environment, EDF in France, BMW Bank in Germany, S Group (a Swedish retail company), or with the medical materials company Synthes in the United States—are all proof of the buoyant business climate at the end of 2010. Following positive market developments in the spring of 2010, the Group marginally increased its forecasts last July.
CAPGEMINI REFERENCE DOCUMENT 2010 Commenting on the results for the year, Group Deputy General Manager and Chief Financial Officer, Nicolas Dufourcq, was able to declare: “We have lived up to our promises.” And to underline this: “We find ourselves in a classic period of coming out of a crisis, although it is gradual. While the upturn in activities varies according to businesses and geographical zones, all the Group’s regions have seen renewed growth in the fourth quarter. We have demonstrated our strong capacity to stand fast.” EXTERNAL GROWTH: ACQUISITIONS IN 2010 The Group was very active in 2010, acquiring ten companies who declared combined annual revenues of 534 million euros over the financial year. Strategic positioning Companies acquired New business model BPO IBX (Sweden) Strengthening of core activities Fast-growth economies Revenues 2010 (in millions of euros) Skvader (Sweden) 4 Unilever BPO subsidiary Strategic Systems Solutions (United Kingdom) Uphantis (Netherlands) BluWater (United States) Thesys (India) Abaco Mobile (United States) Plaisir Informatique (France) 29 75 CPM Braxis (Brazil) 426 TOTAL 10 acquisitions 534 The Group’s acquisitions strategy favors highly targeted operations: Capgemini wants to carry out medium-sized operations—that is to say, in the region of hundreds of millions of euros. In particular it is aiming to develop in emerging countries while, at the same time, buying up small companies geared toward tomorrow’s disciplines such as cloud computing. Europe remains a major market for the Group, as does the United States, where the Group has a small presence and would be keen to make an acquisition. At the end of 2010, the Group announced its acquisition of the German CS Consulting in the financial services sector. 2. INTRODUCTION TO THE CAPGEMINI GROUP Acquisitions in 2010 are aimed at: �� Reinforcing the Group’s presence in fast-growing markets and working alongside growth-seeking companies such as telecom operators and banks. With its majority stake in the Brazilian CPM Braxis, Capgemini has become a major player in one of the world’s fastest-growing economies. “We would like to replicate the CPM Braxis operation in other emerging countries,” says Paul Spence, Deputy General Manager and Director of Development. “However, this does not mean that we are going to acquire companies worth 500 million euros in India or China.” As Paul Hermelin makes clear: “The fact is that China does not have large IT service companies. We are targeting entities of between 500 and 5,000 employees. These are difficult operations to carry off and the price will be high. The company must be won over and believe that they would enjoy a more flourishing future within Capgemini than elsewhere, without forgetting that the Chinese have strong national ambitions themselves.” �� Putting in place new business models and proposing new forms of engagement to our clients. So, for example, with the acquisition of Skvader, Capgemini is in a stronger market position for “smart” electricity networks and owns a platform adaptable to the needs of several of its major clients. �� Developing a portfolio of “core business” activities and stimulating the BPO activity. The acquisition of Thesys, an Indian company specializing in financial services, strengthens the Group’s capacities with regard to Temenos, the software publisher for banks. The acquisition of Abaco Mobile in the United States brings an expertise in mobility around the SAP package, and finally, the acquisition of the Swedish company IBX has enabled the Group to launch a new offer, Procurements-as-a-Service. Among these acquisitions, CPM Braxis contributed 5,500 new employees and helped—with the continuation of offshore hirings—to bring about a noticeable change in the regional distribution of the Group’s headcount. At December 31, 2010, total headcount rose to 108,698, of which 88% is based in the ten countries with the highest number of employees (with 28% in India, which became the top Group country in terms of headcount in 2009). 17 2
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