2023 INTEGRATED ANNUAL REPORT
Partner for a digital and sustainable world
Our clients are wholly committed to the dual transition towards a digital and sustainable economy and this is profoundly transforming the way they create value. Today around the world, we are leveraging the expertise of our 340,000 employees who are mobilized around a common purpose: to unleash human energy through technology for an inclusive and sustainable future.
We work alongside businesses and organizations as they embark on their transformations and support them in the development of new sources of value creation. As our clients rethink their approach to innovating, producing or interacting with their customers, we are by their side.
Capgemini, the business and technology transformation partner of the world's future business leaders.
ACCELERATING ACCESS TO MEDICAL TREATMENT
Despite medical advances, there are still patients whose medical needs are going unmet. The speed and pace of clinical trial research directly impacts how quickly new medicines can be provided to patients. Capgemini is supporting SANOFI as they explore innovative approaches and digital technologies that can accelerate clinical research cycles. The dedicated program provides benefits all along the value chain for patients, investigators and doctors.
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THROUGH ADVANCED
DATA VISUALIZATION AND
STREAMLINED DATA
PROCESSING, RESEARCHERS
ARE EMPOWERED TO
NAVIGATE COMPLEXITIES
SWIFTLY, FOSTERING
INFORMED DECISIONS.
THE SOARING COST
OF NEW LAUNCHES
Since 2010, the average cost of launching new medicine has risen by 67%, with clinical trials accounting for two thirds of R&D costs alone. As a key industry player, Sanofi needed to incorporate new and individually tailored therapies into its trial protocols, while developing more flexible designs to address patients' and sites' needs. The company launched a dedicated program to make life easier for patients, investigators and their sponsors throughout the course of the trials.
REDUCING
DEVELOPMENT TIME
Sanofi's partnership with Capgemini aims to reduce the time required for developing new drugs by one to two years. Data visualization tools and accelerated data flow will also allow investigators to make better decisions, more quickly. Thanks to Capgemini's technological expertise, Sanofi is able to collect and analyze big data to devise a new algorithm for patients and share it amongst different centers. It can also offer more flexible, personalized patient journeys with increased homecare options, thanks to a digital and integrated patient platform.
1-2
YEARS REDUCED
DEVELOPMENT TIME
BRINGING MEDICINE
TO PATIENTS QUICKLY
Thanks to a data-driven recruitment process, Sanofi has improved diversity in panels. And by improving the efficiency of its trials, they will reach their goal of bringing medicines to patients more quickly.
3
MOVING THE AEROSPACE INDUSTRY TOWARDS A CIRCULAR ECONOMY
Sustainability has not always been at the forefront of product development in the aerospace and defense industry. However, with 800 aircraft maintained or dismantled each year, the industry needed to find a way towards more circularity. Capgemini and AMAZON WEB SERVICES (AWS) have come together to develop a solution. This required the digitalization of hundreds of thousands of documents and parts that make up
an aircraft, turning fragmented historical data into digital assets to increase the reuse rate of parts, and thus boost the adoption of circular economy practices.
4
A COMPREHENSIVE VIEW
OF EXISTING PARTS
Capgemini and AWS leveraged their combined innovation and technology capabilities to create the Lifecycle Optimization for Aerospace platform. By digitalizing maintenance, the platform provides a comprehensive view and understanding of the usage of a part over time. The result is a time gain of 40% to 50% in analyzing parts.
800
AIRCRAFT "RETIRED"
EACH YEAR
MOVING THE AEROSPACE
INDUSTRY TOWARDS
A CIRCULAR ECONOMY
By automating the inspection process, optimizing lifecycle analysis of aircraft parts, and guiding decisions to extend their lifespan, the platform is accelerating adoption of circular economy practices in the aviation industry. The ability to consider the aerospace industry's entire value chain, including maintenance, and being able to accurately monitor the condition of an aircraft at any time constitute key levers for the industry's overall transformation. Air France and Safran participated in the development of the platform and will be among its first users. Collecting historical informa tion helps the aerospace ecosystem
- owners, operators, and OEMs - to improve worldwide use of existing products.
40-
50%
TIME GAINED
IN ANALYZING PARTS
5
ENERGY COMMAND CENTER: A REVOLUTION IN ENERGY CONSUMPTION
With SCHNEIDER ELECTRIC, we set up an Energy Command Center (ECC) in Bangalore, India, for real-time monitoring and control of the energy supply of
our eight campuses in India. This resulted in huge savings in the Group's energy consumption. Such actions align with our commitment to sustainable transition, recognizing the importance of efficient energy management in reducing environmental impact and promoting long-term sustainability.
29%
THE REDUCTION
OF ENERGY CONSUMPTION
ACROSS OUR INDIAN CAMPUSES
COMPARED TO 2019
PARTNERSHIP IS IN OUR DNA
Schneider Electric contributed to a massive project that Capgemini has launched in India - a unique Energy Command center built on IoT-based architecture for intuitive resource management. It harnesses digitalization and a data-driven approach to monitor and manage performance of our energy assets, and further supports sustainability initiatives across our campuses in India. We now run all our offices using 96% renewable electricity for our own operations. Also, we are serving the demand of more and more clients who need support in managing their assets, and we are collecting data from these energy assets to deliver dashboards for energy transparency in order to drive sustainability.
70,000
TONS OF CARBON
EMISSIONS REDUCED
PER YEAR THANKS
TO THE ECC
6 | 7 |
ANNE-MARGOTRAMSTEIN, reveals to us through her framings, her changes of angles, the beauty of minimalist or modest infrastructures, all while embracing a sustainable and digital perspective. This digital dimension is expressed through subtle and contemporary patterns present in her drawings, adding depth and modernity to her artistic work.
TABLE OF CONTENTS
18 Highlights of the Year
22 Interview with our Chief Human Resources Officer
24 Our people speak
28 Our purpose, values and ethical culture
30 Diversity and inclusion in action
32 _ BUSINESS X TECH
34 The future of industries is here
36 Interview with our Global Industries Head
38 Our research to guide strategic choices
40 Telia: A journey of innovation,
partnership and sustainability
42 Alstom: Digital transformation for sustainable mobility
44 More client stories
48 _ TECH X FUTURE
50 Our innovation ecosystem
52 At the forefront of the gen AI revolution
58 Embracing climate tech
60 Innovation and sustainability: in conversation with Schneider Electric
62 Our extended ecosystem of partners
64 World class offer portfolio
66 Our business model
68 2023 Key figures
72 Our 2023 ESG Journey
76 Our governance
82 Invited artist: AnneMargot Ramstein
8 | CAPGEMINI INTEGRATED ANNUAL REPORT 2023 | 9 |
"EVERYTHING STILL, AND ALWAYS, COMES DOWN TO TECHNOLOGY AND INNOVATION."
LETTER FROM THE CHAIRMAN
PAUL
HERMELIN
CHAIRMAN OF THE BOARD
_ Capgemini demonstrated its agility and resilience once again in 2023. The Group withstood the slowdown in demand which was most likely due to higher inflation and rising interest rates. We continued to invest and consolidate our status as a partner to our clients supporting their business and technology transformations. Despite the decline in demand, the Group improved its operating margin. The market's reaction to Capgemini's performance demonstrated investors' trust in the Group, in its captain, Aiman, and his entire crew. It is a well-known fact that we see who the best helmsmen are in light winds! It is therefore no coincidence to me that Capgemini is a partner to the America's Cup, an iconic sailing competition that takes innovation and technology to the highest level.
Everything still, and always, comes down to technology and innovation. Artificial intelligence has become the driving force behind transformation, with the sudden emergence of generative AI. Everyone has seen how, at tremendous speed, it has transformed the day-today lives of businesses and citizens alike. In record time, this technology has started being used in ways that we never thought imaginable, and its potential is seemingly boundless. In any case, generative artificial intelligence is ushering in a new era. The press likes to point out the risks associated with it (hallucinations, bias, the spread of deepfakes, intellectual property rights violations, high energy consumption, etc.). But we are truly on the verge of a revolution that will boost productivity and completely reshape many sectors. So, as always, we must redouble our vigilance and our efforts. Some might be tempted to rely entirely on regulation. But we should remember that what we need to control is how technology is used. We must beware of giving in to the absurd idea of censoring technology itself.
Your Board of Directors, which I have the pleasure of chairing, ensures the proper governance of the company. Its composition changed again in 2023. At your Annual General Shareholder's Meeting, two new members were voted in: Megan Clarken and Ulrica Fearn. They very quickly contributed to our work through their sector expertise and their understanding of financial aspects, inclusion and diversity, digital transformation and the US and Asian markets.
I started this letter with a sailing metaphor, and I'd like to end it with reference to a sport that is even more beloved at Capgemini. The 2023 Rugby World Cup, which we sponsored, brought out the enthusiasm and attachment that many of our employees feel towards this sport. At the risk of offending some, I would like to pay tribute to the winners, South Africa. The country's team showed uncommon strength of character. They beat France, England and New Zealand, each time by one tiny point. It is a testament to collective spirit, resilience and extraordinary mindset and strength of character. And that is the beauty of this sport. Serge Kampf would undoubtedly be extremely happy to see that his passion for rugby reigns as strong as ever in the Group he founded over fifty years ago. Serge was crazy about rugby, because he believed that it was the ultimate team sport. You cannot achieve anything in rugby without total engagement from all teammates, and every try is an achievement for the entire team. These collective values resonate intensely with those of Capgemini and continue to guide us today.
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MESSAGE FROM THE CEO
"WE ARE A BUSINESS AND TECHNOLOGY TRANSFORMATION PARTNER TO
OUR CLIENTS. WE WORK HAND IN HAND WITH BUSINESSES AT EVERY STEP OF THEIR VALUE CHAIN."
AIMAN
EZZAT
CHIEF EXECUTIVE OFFICER
_ 2023 has been a year of growth for the Group. We anticipated a slowdown in the market and we succeeded in asserting our resilience by navigating the macroeconomic headwinds throughout the year. This allowed us to achieve excellent results which placed us amongst the most performing companies in our sector while we continued to gain market share. And for this,
I would like to extend my heartfelt thanks to all our Capgemini team members for their dedication and mobilization. Ultimately, this year's performance was a crowning moment in a particularly dynamic decade. In ten years, the Group more than doubled in size, our operating margin increased by four points, while earning per share and
our free cash flow almost tripled!
The scale of this performance reflects the extent of our Group's transformation, our discipline in execution and the accuracy of our positioning: we are a business and technology transformation partner to our clients. We work hand in hand with businesses across the executive C-suite and at every step of their value chain. The senior executives
I meet with are fully engaged in transitioning towards a digital and sustainable economy and they trust us to guide them on their journeys.
Today, we are creating value and tangible business results through our industryspecific solutions for the world's leading businesses, and we are actively involved in their transition to net zero. And you can take our clients' word for it! In this report, you will find many client stories and conversations with leaders from Alstom and Telia attesting to this. On a more personal note, the Group holds
a special place in my heart. I am extremely proud of how far we have come, both in terms of the strong acceleration the Group has demonstrated in recent years and how today, our clients consider us to be a strategic partner.
We cannot look back on 2023 without mentioning the breakthrough in AI and gen AI. It represents a huge opportunity for all businesses and we are a major player in this domain. Thanks to our expertise in this area our clients can explore,
test and deploy - at scale - solutions that are capable of delivering undeniable business value. In just a few months, we succeeded in establishing partnerships with the biggest names in the market: Microsoft, Google, AWS, Salesforce and Mistral AI and our €2 billion investment plan will further strengthen our leadership.
This past year, we have taken important steps
in ESG as well. We are a responsible business and we are systematically taking the necessary actions to create a more sustainable and inclusive world. We are leading the way with bold innovations to reduce our carbon footprint: 96% of the electricity the Group consumes is now renewable and our carbon emissions, across all three scopes, have decreased by 30% since 2019. In terms of social responsibility, we continue to make strides and employee training and upskilling remain our number one priority. The Group has strengthened its commitment to diversity and inclusion and
I am proud of the way we are upholding the values of respect, tolerance and inclusion.
In this report you will discover what Capgemini stands for, its vision and the value we bring to our clients. You'll also be able to look back on an exceptional year of sponsorship - rugby, golf, hybrid motorsports. Our transformative power has crossed over into sports! I'm glad we will continue this journey into 2024 with the sponsorship of the emblematic America's Cup.
Today, while the global context is uncertain on many levels, I remain optimistic. I believe in the potential that technology has to build a digital and sustainable economy and we are committed to keeping people at the heart of it. I am confident in the Group's ability to grow and I know I can count on the energy and passion of all our people.
12 | CAPGEMINI INTEGRATED ANNUAL REPORT 2023 | 13 |
BOARD OF
DIRECTORS
As of March 31, 2024, the Board of Directors | are independent, 42% are women and 58% |
has 15 members, of which 13 are elected | are men. The wide range of their experience |
by shareholders and two are appointed in | and expertise contributes to the quality |
accordance with the employee representation | of the debates and the smooth functioning |
system. In total, 83% of the members | of the Board. |
PAUL HERMELIN | AIMAN EZZAT |
Chairman of the Board | Chief Executive Officer |
of Directors |
MEGAN CLARKEN | ULRICA FEARN | MARIA FERRARO |
PIERRE GOULAIEFF | SIÂN HERBERT-JONES |
GOVERNANCE
HERVÉ JEANNIN | BELEN MOSCOSO DEL PRADO | XAVIER MUSCA |
FRÉDÉDRIC OUDÉA | PATRICK POUYANNÉ | OLIVIER ROUSSAT |
Lead Independent Director, | ||
Vice-Chairman of the Board | ||
of Directors |
KURT SIEVERS | LUCIA SINAPI-THOMAS |
14 | CAPGEMINI INTEGRATED ANNUAL REPORT 2023 | 15 |
EXECUTIVE COMMITTEE
MANAGEMENT
As of March 31, 2024, the Group Executive Committee | It sets major strategic priorities, defines the action plans to |
comprises 37 members, including the 14 members | achieve them, and ensures that these plans are effectively |
of the Group Executive Board, indicated by an asterisk (*). | implemented at operational level. Four committees provide |
The Group Executive Board oversees the running of the Group's | specialized backup for Group Management: the Commitments |
operations. The Executive Committee helps the Group | Committee, the Mergers and Acquisitions Committee, |
Executive Board to define Capgemini's overarching direction. | the Investment Committee and the Risk Committee. |
AIMAN EZZAT* | FERNANDO ALVAREZ* | JIM BAILEY* |
Chief Executive Officer | Strategy, Development | Americas |
& Alliances |
NIVE BHAGAT* | JEAN-PHILIPPE BOL* | ANIRBAN BOSE* | ANDREA FALLENI* |
Chief Financial Officer | Operations Transformation | Financial Services | Southern Europe |
& Industrialization | & AsiaPacific |
CYRIL GARCIA* | FRANCK GREVERIE* | ANNE LEBEL* | WILLIAM ROZÉ* |
Sustainability Services | Porfolio Offers, | Human Resources | Capgemini Engineering |
& Corporate Responsibility | Global Business Lines(1) |
(1) Insights & Data, | MICHAEL SCHULTE* | OLIVIER SÉVILLIA* | JÉRÔME SIMÉON* |
Business Services, Cloud | |||
Northern Europe | Chief Operating Officer | Global Industries & Ethics | |
Infrastructure Services. | |||
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PASCAL BRIER | KARINE BRUNET |
Innovation | Cloud Infrastructure Services |
ROSHAN GYA | ARUNA JAYANTHI |
Capgemini Invent | Latin America & Canada |
SHOBHA MEERA | NIRAJ PARIHAR |
Corporate Responsibility | Insights & Data |
KARTIK RAMAKRISHNAN | VIRGINIE REGIS |
Financial Services, | Marketing & Communications |
Banking & Capital Markets |
VOLKMAR VARNHAGEN | JEROEN VERSTEEG |
Operations, Capgemini | Sales |
Engineering |
CAPGEMINI INTEGRATED ANNUAL REPORT 2023
INMA CASERO | STEFFEN ELSAESSER | PATRICK FERRARIS |
Deputy CHRO | Transformation | Sales, Southern Europe |
OLIVIER LEPICK | KARINE MARCHAT | PAUL MARGETTS |
Group General Secretary | Chief Financial Officer, | United Kingdom |
Northern Europe |
MARIA PERNAS | OLIVER PFEIL | OLAF PIETSCHNER |
General Counsel, Commercial | Business Services | AsiaPacific |
& Contract Management |
ROSEMARY STARK | SHINICHI TONOMURA | ERWOAN TOUCHE |
Strategic Clients | Deputy CEO, AsiaPacific | Delivery & Quality |
ASHWIN YARDI
India
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Capgemini SE published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 07:37:04 UTC.