Bruxelles, 27th June 2011

IWC in Capgemini

• Introduction

• Italian industrial and ITC market overview

• A brief introduction to the Capgemini Group

• Capgemini IWC: scope, foundation, actual composition &organization

• IWC Meetings

• Main discussed topics

Agenda

Introduction

o My name is Roberta Masi and I have been working for over 12 years for an ITC Company, which applies theMetalworkers National Agreement ( contratto collettivo metalmeccanico).

oI’ve been covering the role of employees’ representatives for Milan site for three years. In February 2011 Iwas nominated statutory member of the International Work Council ( a sort of CAE).

oI belong to the Uilm-Uil Organization, one of the three most important italian workers trade Unions in Italy.

oMy organization supports factory workers and employees working for factories and companies operating inindustrial, metallurgical, ITC and handicraft sectors.

oIt was created in Rom in 1950 to support the workers with laic, democratic and socialist ideas and started tospread all over the country in 1966, to reach more that 114 thousands union members at the end of the ‘70s.

oThe Union claims its own autonomy and independency from political parties, government or any other kind ofassociation.

Italian industrial and ITC market overview

oAlthough this year the situation seems to have started slowly to recover, throughout last three years Italianmetal and handicraft sectors went through a deep crises, which affected almost all industries, in particular withfactories and production sites.

oAfter Lehmam Brothers’ crack, many companies went bankrupted or sold, many production sites weredismissed. In Italy sales slummed down. Investments were inhibited and new hiring blocked.

oThe use of social security cushion and the unemployed rate increased sharply, in all regions, above all in thenorth, which has always been considered as the productive hearth of Italy. The government supported thesituation by extending the right to apply social security cushions to smaller companies and to a wider cluster ofworkers, by introducing temporary the so called special security cushions ( ammortizzatori sociali in deroga).

oITC market , considered in the past a “cash cows” business, slowed down after year 2000. Most of thecompanies reviewed and enlarged the offerings, for instance by providing outsourcing, system maintenancesolutions or going offshore to build “software factories” in fast growing countries, to reduce projects costs.

oThe impacts of last three years crisis on ITC market was various : some ITC companies, went throughrestructuring or merger & acquisitions processes (such as Oracle, Microsoft, Sun Microsystem). Some othercompanies, on the contrary, went against trends and registered an increase in revenues.

o ITC companies are now mainly facing following issues : European market stagnation, competition pressure,push on sales and costs tariffs reduction , needs for costs reduction policies.

oCapgemini is a leading french consulting, information and communication technology service

corporation with an international dimension . The headquarter is in France and it listed at Paris Stock

Exchange.

oCapgemini provides a great range of integrated services (consulting, technology, outsourcing and

professional) and offers ad hoc solutions suitable for many different industries (manufacturing & retail;

public sector, financial services, energy, utilities & chemicals; telco-media & entertainment)

oSome figures of Capgemini Corporate and the Italian branch

A brief presentation of Capgemini Group (1)

Febr6© 2011 Capgemini. All rights

Capgemini Group Worldwide

A brief presentation of Capgemini Group (2)

Capgemini Italy local Unions Work overview in the last three years

oIn Capgemini Italy there are 16 employees representatives (RSU) belonging to Fiom-Cgil, Fim-Cisl, Uilm-Uil

and Fismic. Most of the representatives elected in Capgemini are located in Rome. La Spezia, Milan and Turin

are characterized by a very low Trade Union “culture”.

oAs every ITC company, Capgemini’s main workers issues have very less in common with production and metal

workers realities. For example there are no factory workers, but just employees, most of the people have a high

level of scholarship and in many cases resources are mainly working for clients, outside the company building.

oIn the last three years Capgemini Italy managed the crisis quite well: revenues increased slightly and many new

resources were hired.

oInstead of working on collective dismissals and wages guarantee funds, the RSU was mainly involved in

company internal negotiations to improve working conditions ( such as people training - English and security

training campaign realized with Fondo Impresa or review of the internal agreement ).

oAfter 10 years, in June 2010, the Unions and the Management of the Italian branch updated the Capgemini

internal agreement, by increasing expenses reimbursements.

Capgemini IWC: scope, foundation, actual composition andorganization

oCapgemini is a group with a multinational vocation selling mainly human knowledge. The global sharing and

re-use of references or competences is the real wealth of the company. Therefore the company is aware of

the importance to build up a global framework, based on the dialogue with employees, and therefore with

their trade unions delegates, at more global level.

oThe parties of Capgemini agreed to establish an International Works Council 2001, ruled by an agreement

governed by French law. Italy first joined the delegation in 2003

oThe IWC is composed by an employers’ delegation and an employees delegation. Each country with a

Capgemini site in the all world has the possibility to have one member, additional seats are allocated in

proportion to workforce, elected according to the national rules of each country. The duration of the term is 4

years. Almost all Capgemini sites with minimum 150 workers are represented . Actually there are 22 statutory

and 19 substitute members delegated by the country parties.

oThe delegation is guided by a Chairman, who represents the IWC members during the all year and there is a

Bureau, composed by a secretary and a vice-secretaries elected by the members, which is the standing body

of the IWC and takes care of organization, team building and promotion.

IWC Meetings and communication

oThe IWC meets twice a year for General Meeting and Employee Meetings. The Meetings usually last fourdays.

oThe General Meetings take place in Paris and discuss results, plans and intention of the company,human resources management, business development and market position. Each presentation is lead bythe Corporate Capgemin Top Manager who is responsible and in charge for that specific topic. During theMeeting the Chairman reports on IWC activities and after the Meeting new activities to carry out aredefined and assigned. Only statutory member are allowed to attend to the meeting.

oThe Employee Meetings are held in one of the various member states. These meetings usually involvesalso the local management of the guest state, so that the members have the possibility to enter in touchwith the local reality and way of working of that country. The meetings report the progress of IWC activities.Specific topics are assigned to rapid action teams. Also substitute members are allowed to attend.

oThe Bureau Meetings. IWC members may suggest topics or argument to discuss. The Bureau has theright to meet Capegemini Top Management, on request.

o IWC members belong to a community, they have a dedicated space in the intranet and the are allowed touse a tea room reserved only to the members.

IWC main topics

oIWC way of working ( Structure of meeting, Preparation of Meeting, How 2 come in discussion)

o Methodology for better understanding of the Geographical & cultural differences

oIWC structure improvements , topics selection to provide a concrete support both at global and local level

oEmployee surveys

oAcknowledge of European legislation on Works council (National level too), in order to understand what arethe right (mandate) & obligation of the IWC

oHow to increase solidarity and communication within the IWC & visibility to the co-workers we represent

oIWC Entry kit

Bruxelles, 27th June 2011

IWC in Capgemini – Back up

Italian heavy metal and ITC market last three years Overview (1)

o. Although this year the situation seems to have stared recovering, throughout last years Italy went through adeep crises, which affected almost all sectors.

oAfter Lehmam Brothers’ crack, many companies belonging to heavy metal, industrial and handworksector went bankrupted or were sold, many production sites were dismissed. Fast growing marketsdevelopment with its lower sales and production rates impacted negatively European economies , bycausing export revenues decrease and forcing lower production costs and high productivity requests. In Italysales slummed down in all sectors, investments were inhibited and hiring blocked.

oThe use of social amortization and the unemployed rate increased sharply, in all regions, above all in thenorth, which has always been considered as the productive hearth of Italy.

oThe government supported the situation by extending the right to recur to social amortization to smallercompanies and to a wider cluster of workers, introducing the so called “ ammortizzatori sociali in deroga” on atemporary basis.

oThe crises brought to the request for new rules, higher productivity and a new industrial relationship modelbetween Management and Unions, not always agreed by all Organizations. Opposite opinions caused a splitamong the three main co federal Unions, which culminated in Fiat case ( in Pomigliano and Mirafiori Fim-Cisland Uil-Uilm signed the agreement with the Management on request for higher productivity, while Fiom-Cgillead a strong opposition).

oFiat agreements for sure represents a revolutionary turn over point and will set the basis for many changes.

Italian heavy metal and ITC market last three years Overview (2)

oITC market was considered a “cash cows” sector since year 2000.

oAfter the “millennium bag”, the revenues and the income of most ITC companies started slightly to decreaseand most of the companies reviewd their offerings, by integrating and differentiating services, iproviding f.e.outsourcing, system maintenance and focusing on offshore business.

oThroughout last 5 years , most multinational ITC companies opened branch located in fast growing market (such as India, Cina and Brazil), mainly used as “ Software Factories” . Offshore resources were used also inEuropean projects, mainly to reduce projects costs and to improve the margins, thank to their lower resourcecosts against high specialization competencies.

oThe impacts of last three years crises on ITC market was various : some ITC companies, went throughrestructuring processes (such as Oracle, Microsoft, Sun Microsystem), some other companies, on thecontrary, showed an opposite trend, with increasing revenues.

o For sure ITC companies now have to face following issues:o European market stagnationo Competition pressing: sales tariffs reduction and margins contractiono Strong Costs reduction and saving actions

A brief introduction to Capgemini Group (3) - Capgemini GroupHistory

Febr1© 2011 Capgemini. All rights

1967SoGETI founded bySerge Kampf inGrenoble, France onOctober 1.

1973Sogeti, Gemini ComputerSystems and CAP mergedas Cap Gemini Sogeti.

1975First AnnualReport published.

1985Cap Gemini Sogeti listedon the "Second Market"of the Paris StockExchange.

1989Opening of theGroup University inFrance (Béhoust).

1991Creation of GeminiConsulting resulting fromthe merger of fivemanagement consultingfirms.

1993First transformationprogram of the Group’sorganization, salesapproach, methods andculture, called “Genesis.”

1996The Group reorganized itsshareholding andmanagement structure andadopts a new name and anew logo: Cap Gemini.

Opening of a flagship office inSingapore, marking the firststeps into Asia.

2000Acquisition and merger withErnst & Young Consultingto form Cap Gemini Ernst &Young.

2002

• Sogeti name revived in somecountries and expanded to othersfor Local Professional Services.

• The second major transformation ofthe Group’s move to a simplermodel built around Consulting,Technology and Outsourcing andLocal Professional services.

• The Board of Directors name PaulHermelin CEO.

2004Name and logo changed toCapgemini coinciding withglobal ad campaign toposition “The CollaborativeBusiness ExperienceTM.”

2007Capgemini acquiresKanbay and Indigo,expanding its offshorecapabilities in India.

2008Capgemini acquires Vizuri (UK),BAS (The Netherlands) andEmpire (Czech Republic).

1968Gemini ComputerSystems Inc. based inNew York.

1962CAP founded inFrance

1978Cap Gemini Inc.established inWashington DC.

1998Cap Gemini is includedon the CAC 40 listing onthe Bourse.

1999Cap Gemini is voted"European Companyof the Year" by theEuropean PressFederation.

Opening of a newinternational training andconference center in Franceat Les Fontaines.

1960's 1970's 1980's 1990's 2000's

2009Consulting Services becomes aglobal entity: CapgeminiConsulting.

2010Acquisition of CPM Braxisin Brazil.

© 2011 Capgemini. All rights reserved.

ConsultingServices

(CapgeminiConsulting)

§ Digital Transformation§ Strategy and Transformation§ Marketing , Sales & Service§ Finance & Employee Transformation

§ Mobile Technology§ Open Source / SaaS§ Software & Quality Management Testing§ Enterprise Resource Planning (ERP)§ Co-Sourcing/Multi-Sourcing§ Business Intelligence§ Portals

ApplicationServices

§ Application Consulting§ Application Development & Maintenance (AD&M)§ Application Development & Integration /

Customer Software Development (CSD)§ Application Outsourcing§ Application Lifecycle Services§ IT Transformation: Strategy & Architecture

InfrastructureServices

§ IT/IS advisory, design & transformation services (ITS)§ IT governance services & implementation§ Data Center Optimization and Virtualization§ Cloud computing – IaaS, Google Apps, Office365, SAPaaS§ End-to-end full-lifecycle Enterprise Services Management

ProfessionalServices(Sogeti)

§ Application Management§ High-Tech Engineering§ Infrastructure Management§ Testing

§ Research & Advisory Services§ Human Resources§ Industry specific services for banking

& insurance

§ Remote Infrastructure Management§ Data Center and Infrastructure Services§ Network & Security Services.§ Workplace Services & Virtualization§ Storage and data management

§ Supply Chain Management§ Technology Transformation

BusinessProcess

Outsourcing

§ Finance and Accounting§ Procurement§ Supply Chain Management§ Customer Operations Management§ Management Assurance Services

February 2011

A brief introduction to Capgemini Group (2) – Solution and services