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Today s Agenda Time Session Location 2:30-3:45 pm Registration Hotel Front Desk The Langham Hotel Front Desk (2 nd floor) Shuttle Meet in ground floor lobby for transportation to Capgemini Accelerated The Langham Hotel Departure: 4:00 Solutions Environment (ASE) Lobby pm 4:20-4:30 pm Welcome Capgemini ASE 4:30 5:00 pm Capgemini Group Update Capgemini Speaker: Paul Nannetti, Global Sales and Portfolio Director Capgemini ASE 5:00-6:30 pm Bringing clients the value of an integrated solution strategy Capgemini Panel: Dee Burger, Capgemini Consulting; Tim Bridges, Applications Services; Mike Small, BPO; Sandy Padayachee, Infrastructure Services, Jack Dugan, Financial Services Capgemini ASE 6:40 pm 7:15-10:15 pm Moderator: Paul Nannetti Shuttle departs for hotel Networking Reception & Dinner At Wacker Drive Entrance The Pavilion at The Langham (2 nd floor) 3
2015 Capgemini North America Analyst and Advisor Day #AD2015 @Capgemini Copyright Capgemini 2015. All Rights Reserved 4
Capgemini Group Update Paul Nannetti Group Sales & Portfolio Director
Robust progression in 2014, finishing on a high note 10,573M Revenues, +3.4% organic growth +5.5 % in Q4 YoY Bookings growth +13% With remarkable success rate on larger deals 9.2% Operating Margin, +70 bps 10.4 % in H2 Total Headcount 143,600, YE 2014 Offshore headcount +17% 580M Net Profit (Group share), +31% (*) Subject to General Assembly s approval 668M Organic Free Cash Flow 1.20(*) dividend per share 6
Net profit Revenues Free cash-flow Margin Results since 2010 confirm our Champions League status + 22 % 8,697M 9,693M 10,264 10,092M 10,573M 7.0%(*) 7.7% + 220 bps 8.1% 8.5% 9.2% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 (*) 2010 not restated with IAS 19 + 107% 580M +86% 668M 280M 394M 353M 442M 359M 496M 455M 164M 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 7
Strong sales year in 2014 13% bookings growth, including 14% in Q4 Bookings evolution Highlights 2.1 2.7 2.0 2.9 2.3 3.4 2.0 3.3 Book to Bill 1.04 for year and 1.17 in Q4 Larger Deal (TCV > 20M) Win Rate over 50% - underlining offering competitiveness Strong progress in Strategic Offers (+18%) Account acquisition Areva, AIG, CHS, Johnson Controls, Statoil Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 At constant rates and constant perimeter End of Year pipeline +12% vs 2013 indicates continued momentum in BN 8
Revenue growth by Sector Sector Revenues Sector Q4'14/Q4'13 At constant rates and constant perimeter YoY Growth FY Financial Services 9,2% 5,0% Energy, Utilities & Chemicals 8,5% 10,8% Manufacturing, Automotive & Life Sciences Consumer Product, Retail, Dist & Transportation -0,5% -1,6% 1,3% 5,0% Public Sector 10,8% 4,1% Telecom, Media & Entertainment -3,7% -4,3% Energy, Utilities & Chemicals Telecom, Media & Entertainment Consumer Products, Retail, Distribution & Transportation 12% 15% 8% Others 5% 17% Manufacturing, Automotive & Life Sciences 22% Public Sector 22% Financial Services 22% 9
Q4 & FY 2014 Revenues by Main Geography Year-on-Year Organic Current Current Organic in M Q4 14 / Q4 13 FY 2013 FY 2014 FY 14 / FY 13 FY 14 / FY 13 North America 10.3% 2 074 2 230 7.5% 8.5% UK & Ireland 5.9% 2 004 2 197 9.7% 4.1% France -0.5% 2 190 2 342 6.9% 0.5% Benelux 2.3% 1 080 1 074-0.6% -0.6% Rest of Europe 6.4% 1 840 1 849 0.5% 2.3% APAC & LATAM 11.9% 904 881-2.5% 5.0% Total 5.5% 10 092 10 573 4.8% 3.4% 10
Operating Margin by Geography FY 2013 FY 2014 in M Revenues Operating margin % Revenues Operating Margin % North America 2 074 255 12.3% 2 230 281 12.6% UK & Ireland 2 004 175 8.7% 2 197 249 11.3% France 2 190 204 9.3% 2 342 197 8.4% Benelux 1 080 105 9.8% 1 074 113 10.5% Rest of Europe 1 840 142 7.7% 1 849 160 8.6% APAC & LATAM 904 44 4.9% 881 54 6.1% Not allocated -68-84 Total 10 092 857 8.5% 10 573 970 9.2% 11
Major Deals in 2014 Multi towers Q4, renewal UK Public Services Infrastructure Services European Insurance Q4, renewal Q4 renewal BPO Renewal Renewal Application Services Q4 NA Financial Services org Q4 NA Telco Michelin Renewal European Postal Services Global Professional Services NA Media & Entertainment 12
Rapid alignment of our business to changing demand trends is driving our progress Customer expectations Cost competitiveness and sourcing flexibility Digital Transformation to drive Growth Agility, speed and simplicity Capgemini response NextGen AM, NextGen IM, Industrialized BPO, Managed Testing Services Outcome based engagements Strategic Offers: Digital, Cybersecurity, Cloud, Insights & Data Consulting led solutions Integrated / As a Stack offers Platform based services / Pay per use Service Integration Results Large deals CV (> 50m) 2,500 1,500 500-500 2010 2011 2012 2013 2014 Single Tower Multi Tower % of Strategic Offer Bookings 50% 40% 30% 20% 10% 0% 15% 28% 33% 34% 2011 2012 2013 2014 SMAC % revenues: 14% (vs 11%), +25% YoY Target: 40% 13
Our Mission for Capgemini Consulting Synergies with the Capgemini Group CC Operating Model Disruption To be recognized as the Global Leader in DIGITAL TRANSFORMATION on SELECTED SECTOR TOPICS helping our clients to achieve a bold competitive position and solve BUSINESS ISSUES leveraging digital disruptions Asset-based consulting Commitment on results 14
Next Generation illustration AM a step beyond Business Value Driven Business KPIs & outcomes Demonstrated savings and value-adds 30% productivity improvement due to automation and industrialization Improved product price and delivery accuracy, cash collection efficiency Reduced stock-outs, blocked sales orders, cost to serve Future Proofed IT Landscape Portfolio rationalization Shift to cloud Highly Industrialized Standardization, Automation, Factories, Lean, Real Time, On Demand 15
Our Augmented Competitiveness program Develop Partnerships Build common Group Platform Standardized Processes Develop work-unit based pricing Revisit our tools and technologies Eco-system Non-Labor Costs Accelerate productivity Strengthen the Spend Control Continue TCO initiatives Standardization Implement service centers and factories Foster globalization Automation Governance of delivery models Implement next evolution of delivery models (Factory Models, Multi-client resources, Global delivery models): Rightshore presence Global delivery Business imperatives Active mobility Strategic workforce planning Reduce Time-2-Market for strategic competencies Accelerate Labor Costs E-2-E pyramid management Resource Supply Chain 16
Moving innovation into high gear Innovation, a mandate to be at the forefront of our market 1 For our CLIENTS 2 For our PARTNERS 3 For our PEOPLE A trusted advisor able to accompany clients in their transformation journey Capable to attract companies with flagship position on innovation in their own sector, opening new markets for us Strategic partner for co-innovation Door opener to reference clients at the spearhead of innovation Attractive brand for the best talents on the market 40,000 new recruits in 2014, with a focus on hot skills to support growth offerings 17
Innovation in all our offers portfolio Innovation across all disciplines Digital transformation led by Capgemini Consulting, leveraging synergies with the Group and with partners Next generation Application Management Agile and cost effective Infrastructure offerings BPO as-a-stack Internet of Things offers in Sogeti Innovation with new offers Cybersecurity 2,500 professionals 5 Security Operations Centers SMAC and digital offerings Mobile, Digital Customer Experience, Big Data and Analytics, Cloud Content-driven sector offers Automotive Connect or Smart Energy with IP embedded Co-innovation with our partners 18
Our portfolio strategy enhances our margin and growth through innovative offerings aligned with customer priorities Key innovations in 2014 BIM Digital Customer Experience Business Data Lake Data Hub Insights platform Clienteling for Retail Listen, Analyse, Engage Digital Shopper Relevancy Strategic Offers Mobility Mobile Secure Cloud Sector Offers Migration, brokering, integration & orchestration Sector Solutions on cloud End to end, pay per use offers Retail, Consumer Products, Banking, Insurance, Utility and Telco solutions SAP OnePath & Oracle Direct Digital asset lifecycle, AutomotiveConnect Strategic Offers: 34.2% of total Group Bookings (32.8% in 2013) Margin accretive Sustained high growth in 2014 (+18% bookings growth) 19
Capgemini s Top Accounts in North America AIG American International Group, Inc CNA HSBC Schlumberger Amgen Coca-Cola Enterprises Hydro One Smith and Nephew Assurant Group Discover Financial Services International Paper Sony Becton Dickinson Disney Liberty Mutual Holding Company Inc State of Texas Boehringer Ingelheim FedEx Loblaw TimeWarner Catlin Inc First Data Corporation Lowes TransUnion Chesapeake General Mills Morgan Stanley Zurich Insurance Group CHS Hartford Insurance NBC Universal Cisco Honeywell Office Depot/OfficeMax Citigroup Horizon Progressive Corp. 20
Capgemini North America Business Framework Fortune 500 Medium Business Small Business 21
2015 Capgemini North America Analyst and Advisor Day #AD2015 @Capgemini 22
Bringing clients the value of an integrated solution strategy
About Capgemini With almost 145,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2014 global revenues of EUR 10.573 billion. Together w ith its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience, and draw s on Rightshore, its w orldwide delivery model. Learn more about us at www.capgemini.com. www.capgemini.com The information contained in this presentation is proprietary. Copyright 2015 Capgemini. All rights reserved. Rightshore is a trademark belonging to Capgemini.