Annual Report 2018

Annual
Report 2018

The Annual Report outlines Capgemini’s primary activities and the major events from the previous business year. Combining interviews and analysis, it retraces the transformations that have impacted our activities and our ambitions.

A message from

Paul Hermelin

“In 2018, our watchwords were performance and transformation. We succeeded on both fronts.”

Paul Hermelin
Chairman and CEO

Watch the video

“Every talented person at Capgemini possesses a thorough knowledge of our clients’ business sectors and a steadfast drive to stay on top of the latest technological trends.”

Thierry Delaporte
Chief Operating Officer

Editorial by Thierry Delaporte

Seven strategic
priorities in our portfolio of offers

Designed for the dynamic nature of digital and the world of innovation, our new way of managing our portfolio is built with agility and adaptability in mind, and will ensure that we remain responsive and relevant to our clients. This new approach focuses on seven key areas.

We bridge business and technology
  • Customer experience

    The offer

    The Customer Experience (CX) offer enables our clients to create experiences that deliver fast and sustained value for their overall business and for their customers. We develop services that utilize the latest technology platforms and make it possible to reimagine customer journeys for the marketing, sales, customer service, and eCommerce functions. We leverage AI to translate rich data, from within a company and its larger ecosystem, to achieve personalization in every customer-brand interaction. In 2019, Capgemini has been positioned as a worldwide leader for the third time in a row, in Gartner's Magic Quadrant for CRM/CX Service Providers.

    • Client Case
    • Our publication

    NYDJ X CAPGEMINI

    NYDJ is a denim and apparel brand well established in the United States and renowned for its pioneering fit technology and inclusive sizing. Capgemini partnered with the brand to elevate its customer experience and provide digital marketing, design, consulting and support services including implementations of Salesforce Commerce Cloud and Marketing Cloud for NYDJ.com. Following the company’s site launch in 2018, it saw an 11% increase in organic traffic, leading to a 33% boost in year-on-year organic revenue.

    • The offer
    • Our publication

    Our publication

    The secret to winning customers’ hearts with artificial intelligence: add human intelligence.

    Read more on Capgemini.com
    The Secret to Winning Customers’ Hearts with Artificial Intelligence: Add Human Intelligence
    • The offer
    • Client Case
  • Cloud

    The offer

    Though it is not a new field, cloud computing is rife with innovation. Capgemini’s Cloud services is a complete portfolio designed to facilitate our clients’ migration to and use of the cloud, which refers to storing and accessing data and programs over the internet instead of on your computer’s hard drive. It aims to simplify the adoption of a cloud-first strategy for replacing or complementing existing IT systems while enabling clients to develop innovative services directly in the cloud, so that they can gain and maintain a competitive edge.

    • Client Case
    • Our publication

    YARA X CAPGEMINI

    Capgemini helped Yara, the Norwegian global chemical and fertilizer company, build the foundation for its digital transformation. Capgemini improved the company’s overall efficiency through application management of Yara’s SharePoint and SAP environment. Furthermore, the company’s hybrid cloud strategy, combining private cloud with Microsoft Azure public cloud, provides a cost-effective solution that enables faster time to market.

    • The offer
    • Our publication

    Our publication

    Unlocking the hybrid integration dividend.

    Read more on Capgemini.com
    The Secret to Winning Customers’ Hearts with Artificial Intelligence: Add Human Intelligence
    • The offer
    • Client Case
  • Cybersecurity

    The offer

    Capgemini’s full portfolio of Cybersecurity services combines the expertise of 3,500 experts across the world supported by a global network of Security Operations Centers (SOCs). Our end-to-end approach includes consulting, compliance, protection, and monitoring services to meet security requirements in virtually every industry and market segment. As a global player, we offer security adapted to each client’s business context, acting as a trusted advisor along their digital transformation journey.

    • Client Case
    • Our publication

    FSCS X CAPGEMINI

    Capgemini provides cybersecurity consulting services to the Financial Services Compensation Scheme (FSCS), the UK’s compensation fund of last resort for customers of authorized financial services firms, which protects consumers should such a financial institution fail. Capgemini performs a range of cybersecurity services including IT security assessments and attack simulation testing. Additional services include Security Operations Centers and penetration testing.

    • The offer
    • Our publication

    Our publication

    Cybersecurity: the new source of competitive advantage for retailers.

    Read more on Capgemini.com
    The Secret to Winning Customers’ Hearts with Artificial Intelligence: Add Human Intelligence
    • The offer
    • Client Case
  • AI & Analytics

    The offer

    Perform AI is a complete portfolio of artificial intelligence services enabling clients to develop pragmatic business solutions that enhance operational excellence, growth, performance, and business innovation. By responsibly and ethically infusing AI technologies across their business, organizations can achieve greater operational efficiency, boost sales and loyalty through a human-centered customer experience, assist risk analysis, detect fraud, ensure regulatory compliance, augment employee productivity, and ultimately reimagine their business in the AI era.

    • Client Case
    • Our publication

    Severn Trent X Capgemini

    Capgemini partnered with UK-based water company Severn Trent, listed on the FTSE 100, to develop a complex machine learning model, capable of tackling leaks. By applying advanced analytics to data collected by sensors on water pipes, the model was able to filter five billion data points and, by doing so, provide engineers on the ground with valuable information. In areas where the model was applied, time to find leaks was reduced by over half and overall leakage was reduced by more than 16%, improving customer satisfaction.

    • The offer
    • Our publication

    Our publication

    Building the retail superstar: how unleashing AI across functions offers a multi-billion dollar opportunity.

    Read more on Capgemini.com
    The Secret to Winning Customers’ Hearts with Artificial Intelligence: Add Human Intelligence
    • The offer
    • Client Case
  • Digital Manufacturing

    The offer

    Digital Manufacturing is about the data-driven optimization of manufacturing, leveraging the power of technology (cloud, IoT, AI, cognitive computing, 3D, AR/VR). These technologies break silos between the physical and digital worlds, and build intelligent connections between machines, products, employees, and suppliers that drive rich customer value: reduced time to market, mass customization and product innovation to enable growth; end-to-end industrial efficiency and enhanced customer service to improve profitability and competitive agility. By empowering manufacturing staff, we help clients realize the promise of Industry 4.0.

    • Client Case
    • Our publication

    DENSO X Capgemini

    Capgemini is the strategic partner of DENSO International America (one of the world’s largest automotive tier-one suppliers to global OEMs). The partnership has supported the development of DENSO’s cockpit systems for more than 14 years and allowed DENSO to deliver high-quality products to its automotive OEMs using model-based system design, knowledge-based engineering and machine-learning principles, while improving efficiency in the product-development value stream using Capgemini’s digital manufacturing platform.

    • The offer
    • Our publication

    Our publication

    Digital engineering: the new growth engine for discrete manufacturers.

    Read more on Capgemini.com
    The Secret to Winning Customers’ Hearts with Artificial Intelligence: Add Human Intelligence
    • The offer
    • Client Case
  • Digital Core with SAP S/4 HANA®

    The offer

    Capgemini leverages the SAP S/4HANA© platform to deliver what we call “the Renewable Enterprise“, a company able to constantly grow and adapt. We bring together the technology, the process, and the operating model to sustain digital transformation and enable high speed innovation while protecting mission-critical applications. Designed to put user experience at the center, it uses approaches such as AI and embedded analytics, DevOps, cloud architecture, APIs and microservices to help our clients “renew” themselves as they unlock business value and outpace their competition.

    • Client Case

    Centrica X Capgemini

    Centrica plays a key role in the lives of millions of people and businesses, and its ability to adapt and evolve as the energy industry changes is of critical importance. The company recognized the opportunity to enhance its digital infrastructure and software to become more agile and prepared for innovation while also reducing costs, and identified SAP S/4HANA© technology as a key enabler to make its vision of a fully digital, agile, and global enterprise a reality.

    • The offer
  • Next-Gen ADM

    The offer

    We offer a unique and comprehensive approach to application development and maintenance (ADM) – an approach that starts with business outcomes and takes into account the needs of IT systems, as well as the business. Our Next-Gen ADM services help turbocharge the monitoring, management, and transformation of application environments, to ensure agile transformation of legacy applications, as well as processes and delivery modes adapted to digital transformation strategies. Information Services Group (ISG) has recognized Capgemini as a leader in Next-Gen ADM services in the US, Continental Europe, and the UK.

    • Client Case
    • Our publication

    TE Connectivity X Capgemini

    Capgemini is in the midst of a five-year agreement with TE Connectivity, a $14 billion global technology and manufacturing leader, to provide application support, maintenance, and development across the company’s portfolio of over 1,000 applications. Capgemini is also working to help drive digital transformation at TE Connectivity through engagement in strategic programs and projects across the manufacturing, engineering, sales and marketing, and corporate center domains.

    • The offer
    • Our publication

    Our publication

    Executive Insights on modern and integrated Application Development and Application Maintenance.

    Read more on Capgemini.com
    The Secret to Winning Customers’ Hearts with Artificial Intelligence: Add Human Intelligence
    • The offer
    • Client Case
We bridge business and technology
“We have improved our agility, combining our sectorial expertise and a deep understanding of our clients’ businesses, with our technological skills, competitiveness, and global presence.”

Aiman Ezzat
Chief Operating Officer

Editorial by Aiman Ezzat

Our clients
are at the center of everything we do.

Digital is fundamentally reshaping every industry. At Capgemini, we support our market leading clients to navigate the new competitive landscape and usher in their business transformation.

01

Client
case

Interview with Steve Maddock Chief Operating Officer for DLG

01. EDF Interview with Jean-Bernard Lévy, CEO & Chairman

02

Client
case

Interview with Steve Maddock Chief Operating Officer for DLG

02. DLG Interview with Steve Maddock, COO

03

Client
case

Interview with Steve Maddock Chief Operating Officer for DLG

03. Virgin Voyages Interview with Michelle Bentubo, VP Voyage Travel Services

04

Client
case

Interview with Jeanne Cheng, CRO and Chuah Kee Heng, Managing Director

04. SP Group Interview with Jeanne Cheng, CRO and Chuah Kee Heng, Managing Director

Interview with Steve Maddock Chief Operating Officer for DLG

01.

EDF: interview with Jean-Bernard Lévy, CEO & Chairman

Interview with Steve Maddock Chief Operating Officer for DLG

02.

DLG: interview with Steve Maddock, COO

Interview with Steve Maddock Chief Operating Officer for DLG

03.

Virgin Voyages: interview with Michelle Bentubo, VP Voyage Travel Services

Interview with Steve Maddock Chief Operating Officer for DLG

04.

SP Group: interview with Jeanne Cheng, CRO and Chuah Kee Heng, Managing Director

2018 Highlights

Capgemini creates Capgemini Invent

In September 2018, Capgemini launched Capgemini Invent, its new global entity that helps decision-makers plan and build their future organizations. Capgemini Invent brings together, under one banner, Capgemini Consulting and specialists in data science and emerging technologies thanks to recently acquired companies. These include: LiquidHub, a specialist in digital customer engagement; Fahrenheit 212, innovation strategy consulting; and three creative design studios, Idean, Adaptive Lab, and Backelite.

Capgemini creates Capgemini Invent

Capgemini enters the scrum

In 2018, the Group became the official Global Innovation Partner of the Men’s and Women’s HSBC World Rugby Sevens Series. Capgemini celebrated this new multi-year partnership by organizing client events in connection with matches, by mobilizing employees, and by sponsoring the Rugby World Cup Sevens, held in San Francisco in July. On the heels of this new commitment, Capgemini opened its VivaTech Paris stand to host six SportsTech startups working to improve sports and the promotion of sports.

Capgemini enters the scrum

Employee share ownership: renewed confidence

Designed to create engagement around the development and performance of the Group, the fifth employee shareholding plan was a great success, with a subscription rate of 191%! Close to 33,600 employees in 24 participating countries subscribed to the plan, representing 17.2% of eligible candidates. The plan comprised 2.5 million shares, representing approximately 1.5% of the Group’s total share capital. As of December 31, 2018, employee share ownership stood at 5.89% of the Group’s total capital. A huge thank you to all our people who have demonstrated their confidence in the Group.

Employee share ownership: renewed confidence

Recognized by our technology partners

Once again, the Group receives numerous awards in 2018 from its technology partners. Among these accolades, Salesforce, the leading platform for customer relations management solutions, awarded Capgemini a Cloud Solution Award for its work on Einstein Analytics (an AI platform). Capgemini also received four Partner of the Year Awards from MuleSoft, an integration software company recently acquired by Salesforce.

Recognized by our technology partners

An evolving portfolio

Starting at 18% in 2014, Capgemini’s Cloud and Digital offers jumped to 45% of the Group’s total revenue in 2018. This growth demonstrates the agility of our portfolio and our capacity to adapt our services to the evolving needs of our clients. The contracts we signed this year with Yara and Equinor (formerly Statoil) in Norway, Eneco in the Netherlands, EDF in France, Syngenta in Sweden, and Scottish Water in Scotland illustrate our Group’sdynamic growth and expertise in these fields.

An evolving portfolio

Passionate people: our ace of spades

Because our people are our biggest strength, the Group works to create an exciting and rewarding professional experience to boost performance. Launched in September, our new employer brand campaign “Love your Career. Ace your Career” encourages candidates and employees alike to follow their passions as they contribute to our collective performance and build their careers.

Passionate people: our ace of spades

Expanding the team

Capgemini continued to expand its expertise and broaden its range of services by making new acquisitions across the world, including: LiquidHub in the United States, a specialist in digital customer engagement; Doing in Italy, an agency specialized in digital transformation services for marketing and communications; June 21 in France, a digital marketing consulting firm; and Adaptive Lab in the United Kingdom, a studio specialized in digital design.

Expanding the team

Recognized for our ethics

For the seventh year in a row, we are proud to be recognized as one of the world’s most ethical companies by the Ethisphere Institute, a global leader in promoting best practices in corporate governance. This recognition attests to the Group’s firm commitment to ethics and integrity.

Recognized for our ethics

Sogeti gets a new look

Sogeti, dedicated to the Group’s local technology services, updated its branding, becoming “Sogeti, part of Capgemini”. This change brings further alignment between Sogeti and Capgemini’s values, while complementing its strength with the range of services the Group offers. This initiative also serves to strengthen the value of the Capgemini brand.

Sogeti gets a new look

Technology to help locate lost children

2018 marked the fifth edition of Capgemini’s Tech Challenge, an online hackathon designed to identify India’s best programmers and technophiles, and empower them to develop their projects with support from Capgemini’s teams. This exemplary program attracted nearly 135,000 candidates. Capgemini selected the 50 most promising teams to take part in the grand final on its Pune campus, which was also broadcast on the country’s business channel CNBC-TV18.

Technology to help locate lost children

Meet our talented people

The passion, dedication and expertise of our people powers everything we do. Working in teams across the world, the women and men of Capgemini bring diverse experience and an almost boundless skillset to the service of our customers. Here, a selection of our talented people share the ways they make a difference, every day.

“Using Agile methodology, I’m able to further strengthen my skills. It increases collaboration and alignment and helps me deliver faster.”
As I continue working for the RMIT I feel lucky I am able to further strengthen my agile expertise.
Francisco Falder
Agile Methods Expert —
Capgemini Melbourne, Australia
“We help our clients keep up with the speed of innovation in the fast-changing Chinese automotive sector.”

Liu Qingping
Vice President & Head of Automotive Asia Pacific — Capgemini Invent Shanghai, China

As I continue working for the RMIT I feel lucky I am able to further strengthen my agile expertise.
I believe that it will become more and more crucial for companies to understand how humans can efficiently augment machines
“I believe that it will become more and more crucial for companies to understand how humans can efficiently augment machines, how machines can reinforce what humans do best, and how to redesign business processes to support this partnership.”

Tove Hjelm
Data Scientist – Sogeti part of Capgemini Gothenburg, Sweden

“I put great emphasis on building trustful relationships with clients and on creating multi-skilled high-performance teams.”

Madan Sundararaju
Vice President, Media & Entertainment Sector Leader – Capgemini, New-York, United States

I put a great emphasis on building trustful relationships with clients and on creating multi-skilled high-performance teams.
Read their full stories

A global leader with worldwide presence

A global leader with worldwide presence
North America
 
 
Latin America
Europe
 
 
Africa and the middle east
 
Asia Pacific

17,600+

people

8,270+

people

70,400+

people

1,830+

people

113,200+

people

“Our financial journey throughout the year – both in terms of revenue and margin – was successful”.

Chief Financial Officer
Directrice Financière

Learn more

2018
in numbers

In 2018, Capgemini met or exceeded all financial targets set at the beginning of the year. The Group strengthened its growth profile, while continuing to improve profitability and organic free cash flow generation.

Carole Ferrand - Chief Financial Officer

Revenue
In billions of euros

+8.1% year-on-year at constant currencies (between 2017 and 2018)

12.5

2016

12.5*

2017

13.2

2018

*Restated for the impact of IFRS 15, applicable from January 1, 2018 and which resulted in a decrease in revenues recognized of €267 million (2.1% of revenues), with no change in euros to the operating margin, net profit, earnings per share or organic free cash flow.

Operating margin*
In millions of euros

+20 basis points year-on-year (between 2017 and 2018)

1,440

2016

1,493

2017

1,597

2018

*Operating margin is one of the Group’s key performance indicators. It is defined as the difference between revenues and operating expenses. It is calculated before the other operating income and expenses.

Organic free cash flow
In millions of euros

+80 millions of euros (between 2017 and 2018)

1,071

2016

1,080

2017

1,160

2018

Revenue
breakdown

7%12%22%27%32%

by region

  • North America
  • France
  • United Kingdom and Ireland
  • Asia-Pacific and Latin America
  • Rest of Europe
6%11%14%27%3%21%18%

by sector

  • Financial Services
  • Manufacturing, Automotive and Life Sciences
  • Consumer Products, Retail, Distribution and Transportation
  • Public Sector
  • Energy, Utilities and Chemicals
  • Telecommunications, Media and Entertainment
  • Others
64%15%15%6%

by business

  • Application Services
  • Technology and Engineering Services
  • Consulting Services
  • Other Managed Services
Capgemini is grateful for Thukral and Tagra’s contributions to this year’s annual reports. Discover their art collection on thukralandtagra.com

Credits

Management of overall project

Group Corporate Social Responsibility Department and Group Marketing and Communications Department

11 rue de Tilsitt, 75017 Paris

integratedreporting@capgemini.com

 

Design and web development

WordAppeal et Studio L’Éclaireur

 

Artists

Thukral & Tagra – Thukralandtagra.com

 

Sketches (portraits) – All rights reserved

Caroline Andrieu

 

Copyrights – All rights reserved

Pierre-Emmanuel Rastoin / ©Jason Dorfman, ©MIT (CSAIL) / ©Capgemini / ©Getty Images / ©Serge Picard / ©Robert Geary / ©Imagen.D / ©Yamel Photography / ©Shan Wong / ©Peter Nilsson / ©Zongqin Yang / ©Abhishek Ogale / ©Hugo Ribes / ©Tomasz Cwiklinski / ©Équipe MACS Capgemini / ©DLG / ©EDF / ©Les Fontaines, Capgemini Gouvieux / ©Media World Rugby / ©Virgin Voyages

 

For the Annual Report

Thanks to EDF, DLG, Virgin Voyages, SP Group, Centrica, ST Water,Yara, FSCS, TE Connectivity, Denso, NYDJ, RMIT

 

For the Integrated Report

Thanks to MIT, Eneco, Albert Heijn, Salesforce, Kering and State of Texas