Capgemini SE (CAP) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen. We're very pleased to welcome you here to Pavillon Gabriel for this 2023 shareholders' meeting. Of course, we'll be talking about the financial statements from 2022. This year, again, to make our dialogue easier, you'll observe that this is being broadcast live on our website. Shareholders that are not able to it attend the session at Pavillon Gabriel are able to access an online platform to ask their questions live and remotely during our Q&A session. I'd ask them for that matter, to ask their questions as of now by connecting to the Lumi Technologies platform using the access codes that they received previously. I suggest as our custom did that we see [indiscernible] Bureau, the meeting's bureau. As Chairman of the Board of Directors, I will be chairing this meeting. I suggest we appoint scrutineers. The 2 shareholders that are present that have the largest number of votes and have accepted this office. They're seated to my left, to your right. At the left, you have Mr. [ Krutov Divinio ], representing the Supervisory Board of the ESOP Fund, Employee Shareholders Fund; and Mr. [ Geoff Unwin ] someone you will remember that he appreciated me as Group CEO in 1990 -- 2001, 2002. We've established the bureau and appointed as secretary, Mr. Olivier Lepick, he is our General Counsel and he is Secretary to the Board of Directors. We've established our bureau. I would like to call this meeting to order. Also at the stage here, we have Aiman Ezzat, Chief Executive Officer for the past 3 years now; and Carole Ferrand, our CFO. We've also got present in the first row here, the members of Board of Directors, I greet them. Ms. Megan Clarken and Ulrica Fearn are also here candidates to become members of the Board of Directors. And that will be up for your vote. We also have several members from the executive committee who are also here. I agree that I'd ask the secretary to go through legal formalities to ensure that this is a valid session.

Thank you, Chairman. Good afternoon. I'd remind you, the AGM was convened published in the official Gazette 29 March 2023. The invitation was published in the gazette and in the legal announcements paper in the 26th of April '23, all the statutory documents have been made available of course to the participants. The meeting will be deliberating on the agenda, which is behind on the screen. I will not go through this in detail. The quorum when we begin the session is very much established, it needs to be 20% for the ordinary session of the AGM and 25% for the extraordinary AGM. The opening quorum is 78.49% of shares and voting rights present or represented or having voted by mail or through the Internet for the ordinary session of the AGM, specifically, I'd say we've got a specific number of shareholders and we're giving exact numbers that should be displayed on the screen as well. And for the extraordinary session, the opening quorum is 78.50%, 5-0, which is 8,000 some shareholders and the requisite number of shares. The final -- we've reached the quorum of the ordinary sessions as well as the extraordinary session can be held and deliberate. The final quorum as always, will be confirmed before we actually begin the voting process after the -- towards the end of our meeting. At the entrance and also on your tablets, you've got the universal registration document 2022, which includes the management report, the corporate governance report, and the report from the Board on the draft resolutions being submitted to you as well as the convening document. Those are the legal formalities. I got the floor back to Mr. [indiscernible] who will now describe for you the highlights of this session.

Yes, it's a fairly conventional agenda. After some introductory comments, I'd like to make. I'll be giving the floor then to the Chief Executive Officer, Aiman, who will report to us on 2022 and also specify to you our strategic focus in this group. Carole Ferrand will delve into greater detail to talk about the results of 2022. This year, we'll also begin the floor to James Robey, who will talk in English, but rest assured his presentation will be subtitled in French. He'll be talking to us about the group's climate strategy. After that, you'll hear from two of the committee's Chairman, probably speaking, Patrick Pouyanné, whom you know, replacing Laurence Dors chairing the Compensation Committee. You also hear from Frédéric Oudéa, who as last chair, has been chairing the Ethics and Governance Committee. He will be reporting on how your group's governance has been carried out. There'll be a brief introduction made by Megan Clarken and Ulrica Fearn are candidates to the Board, then you hear from the statutory auditors, then have a Q&A session. Let me make a few brief comments, first of all, I won't speak at length. The first point I'd like to make is this, when in February of 2022, the Board approved the proposals for the presentation to meet in 2022. Honestly, we didn't think 2022 would end up as it did a few days later. There was the Russian invasion of Ukraine and all the consequences that like to. Then you had skyrocketing of inflation and use our customers underrate pressure for these reasons. People were all vying for digital talent and that led to record levels of attrition, so people who left the company had to be replaced. So in spite of all of these negatives, Aiman and then our management team were very much able to contend with all this, and they just don't know what do they contend to but they've manage to rise to the challenges and upgrade targets, but they delivered on all of this, they delivered in the margin, and that's no mean feat. Many of our competitors hit by inflation, weren't able to meet their margin targets. So excellent performance. I'd also like to underscore the following: a very important few things that happened. Thanks to the group's new positioning [indiscernible] through the acquisition of Altran. Today, our group is no longer an IT group. It's a technology group in the broadest sense of the term, comprising all technologies. After beautifully conducting Altran's integration and launching the Intelligent Industries offering, which we viewed as being a global leader and now Aiman has been able to state that hence forth the group intends and is positioning itself very courageously and successfully intention of being the main partner of its clients, the go-to partner for technology chains and transition. So it's a C change. There's a good thing we're an IT service, and Capgemini, think of Capgemini as technology services, a strategic partner company. That's why in February, when we were meeting with employees as we do at that time of the year-over-year, I said to the employees that it was truly wonderful to be Chairman of the Board in a company that's doing so beautifully well. It's outperforming the others. So I wanted to really share my pride and congratulate the entire team for this truly exceptional 2022. Now let's look toward the present and what's in the news. Currently, what I was talking about is generative artificial intelligence. It's become the buzzword. It replaced the metaverse that ever used to be talking about last year. Rest assured the metaverse hasn't died off. Everybody is talking about generative AI, ChatGPT. They were a few questions. Aiman, will certainly come in on these. Questions about ChatGPT's impact and generally generative AI's impact on the group. Let me tell you that I am absolutely confident -- our customers need specialists who can assist them to grapple with technology changes. Any kind of change is good for this group. We've always been the mediator, the gateway to change. So let me tell you -- I should reassure you, if you're worried that generative AI will be a problem for us. I think it's precisely the opposite. All technology changes have always turned out to be beneficial to a main player, a major player. That's the first one to use them. That's the first one to stand them in depth, and then assist their clients to use them. They remind you, in an ad campaign, we started in 2000, the acquisition of Ernst & Young Consulting. The theme of the ad campaign was Capgemini that conveyor to the new economy, the new economy in which was the concept during the first Internet bubble. The new economy didn't come to fruition after piercing of the bubble. But Capgemini as the conveyor technology is very much still the case. So let me say that I'm very confident in terms of the role will be playing and the benefits where we -- from technological upheavals. It will be the case for any types of computing changes we see in the future. Let me also come talk to you briefly about added value. In France, we talk all the time about sharing value. What needs to be done to share value. You saw there was an interprofessional agreement in the near future, there will be legislation drafted on this. I wanted to recall the following for you. It's Serge Kamp established rules, a long time ago, the founding father of this company regarding the balance of the portion of added value that goes to shareholders, a portion that goes to employees and the part that goes to the group. Added value. That's the difference between the products and services provided, the revenue and then all the purchasing group does all the buying, its consumption to produce the services and goods. So for instance, things we lease, subcontracting and so forth. So it's the actual value of the wealth the group creates during one given year. That brings us to that term added value. And this added value, it's the value-added to produce something sometimes into the GDP of the country. Now in fiscal 2022, our added value was EUR 18.5 billion. And how is it distributed, 68% to employees, 68%. It used to be 66% a year previously. So the portion given to employees has grown reaching 68% of added value. The second partner, special partner, it's government, not just the French government, of course, but governments more broadly via taxes and also some payroll taxes and so forth. The company keeps for itself for its own development 10%, and the shareholders 3%. 18% have been going to the states from [indiscernible] governments. And then, of course, the provisions and other operating expenses and so forth. This distribution has remained fairly stable. And let me observe 1 thing. Above and beyond the 68%. And in France, of course, this is France also say, the France sharing value has been done in several different ways. [indiscernible], there's an increase by over 50% in the amounts paid under profit sharing and matching funds. In the context of inflation, measures for overall wage increases negotiated with the trade union organization, not all of them, unfortunately, to benefit the lowest wages, the hardest hit people by inflation that we went beyond the usual pay raises. And every year, there have also been things done to remove any pay differences between men and women. In the last 5 years, employee shareholder plans have been proposed in every year and proposed to over 95% of group employees. The rule is we don't propose these shareholder plans to companies with too small headcount. There are fewer and fewer of those in our group. Currently, employees, our group shareholders to the tune of 8%. Our ambition is to bring that percentage gradually up to 10%. Lastly, we'll also talk about the dividend earnings per share. The significant increase will propose for the dividend. I'd also like to specify that what we call the payout ratio, that's the portion of our net profits that are given to shareholders through the dividend. Earnings stable at 35%. And again, this is very much in line with the sharing out of added value as Serge defined it over 50 years ago now. Before giving the floor to the other speakers, I'd like to recall as Chairman of the Board of Directors. Of course, Frédéric will be reporting to you on governance and its changes. I'm not going to encroach, but he'll be saying, but let me just say -- but when you talk about ESG, corporate social responsibility, environmental responsibility, there's environmental dimension, and we've got the strategy and CSR Committee that marches all this as Chairman of the committee of speaking to this point. Let me tell you that we take these environmental current very, very seriously. We very forcefully announced these commitments and probably more forcefully than ever before, I've through Aiman. We've adhered to Aiman's proposals. Often, these have been beefed up, especially when climate commitments were approved under the new definition, we'll come back to later and James Robey will also report to us on that. So we work very hard to enact and track the ESG policy committee reports to the Board, and the Board reports on this and you hear from James Robey later, you'll hear about our climate commitment. And the last point I'd like to make aside from that, let me say I'm very pleased as Chairman, the Board of Directors [indiscernible] happy with the composition of our Board of patriot people who are leaving our Board who aren't in attendance today. Xiaoqun Clever had to resign for personal reasons. She was of Chinese origin and worked at SAP for quite some time. She made major contributions to our group, and Tanja Rueckert due to her new position within Bosch, she was advised by Bosch to leave this group because there might have been a conflict of interest. So she left for that reason. Two Board members left. Therefore, I'd like to [indiscernible] them for their devotion to this group, their hard work with us, and we regret to see them leave. And we very much support the new persons who will be joining us who will be introducing ourselves in a few moments. So almost [indiscernible] that was my introduction.

Thank you very much, Paul. I suggest before getting the floor to our Chief Executive Officer, who, of course, will report to you on the past year 2022 and priorities and outlook for 2023. Let's briefly look at the videos a few minutes long. It's going to go through some of the highlights of the last year. [Presentation]

Ladies and gentlemen, shareholders, directors. I'm very pleased to see you today at the Pavillon Gabriel. This annual meeting is very important to me because it allows me to share with you, ladies and gentlemen, the most important moments of the life of our company, but it's also an opportunity to talk to you about our ambition and our prospects. We've just seen a video of what happened in the past year. And Capgemini's performance in 2022 has been exceptional in many ways. I'll remember 2022 as one of the best years in our history, if not the best. All sectors, all businesses, all regions have contributed to this remarkable performance and to our transformation and our progress momentum. Our financial results reflect our agility, our resilience and the relevance of our strategy. Carole Ferrand, our CFO, will go into detail on our 2022 figures. So 2022 shows that we have a clear plan. We are implementing it rigorously and it's bearing fruit. And today, I can say that the group's profile has changed profoundly, and I am proud of it. Sometimes we don't fully realize how strong our brand image has begun or how far we have come. Our market positioning has deeply evolved. Long gone are the days when we were only supporting CIOs and deploying software solutions to improve international efficiency or reduce costs, because today, we have repositioned Capgemini as a relevant business and technology partner across the entire value chain of our clients. We address all company executives, general management, marketing directors, industrial directors, we proactively support our clients and the transformation of their business model. We help them innovate, develop and sell their products. We also support them when it comes to interaction with our customers. So today, we're closely involved in their value creation in dual transition to a digital and sustainable economy. Where among our strategic partners, because digital technology in which we're experts is a key element of value creation. This change did not happen by chance. It is the result of our collective efforts over the last few years. And today, I would like to commend the commitment and expertise of our talent. They are the lifeblood of Capgemini, our greatest strength. We now have 360,000 employees around the world, and it's a record number. What makes me particularly proud is that in 2022, we have continued to grow our workforce by about 35,000 people in particularly tense labor market. In France, we will have almost 40,000 employees by the end of 2022, and we are 1 of the biggest recruiters in France. So these figures demonstrate our ability to attract the best talent, train them and retain them by offering them an exceptional working environment and exciting prospects. And I can't mention our talents without seeing something about their unfailing solidarity. As 2022 saw the [indiscernible], the conflict in Ukraine. My thoughts go to our Ukrainian employees on the ground. And I also think of the tremendous commitment shown by our teams, our employees in Poland and Romania, for example. I know that they have made a lot of efforts in welcoming their Ukrainian colleagues and their families. I am very grateful to them. Our talent make us stronger, our investments make us stronger, Capgemini has been able to adapt to provide the most appropriate solutions to our clients' ever-changing needs. And I would like to illustrate this paradigm shift in our clients' transformation and what it means for us. Supporting the transformation does no longer mean selling an isolated component, it means offering solutions across the entire value chain. It's not enough now to recruit an engineer specialized in software development, hoping that they will arrive after -- they will come up with several -- with a magic program after several weeks. No, we need a team of talent with a pool of knowledge and expertise. I'm thinking digital engineering, manufacturing, software, product design, connectivity. Let's take the example of the automotive industry. We don't build cars like we did 20 years ago, manufacturing plants are connected using 5G and Edge computing. Now we're talking about a new generation batteries. Car bodies are not made through innovative manufacturing processes with onboard connectivity, smart chips. And then, of course, there's AI-assisted driving -- all of these technologies and processes are at the heart of cars of the future. And that's exactly what Capgemini does. With the acquisition of Altran, we are now able to offer end-to-end solutions. And in this new paradigm, Intelligent Industry, we have a real head start. Supporting our clients in their transformation also means relying on real sector expertise to proactively reveal new sources of value creation. Each industry is unique, has its own opportunities and challenges. The transformation of the automotive industry towards tomorrow's mobility is deeply different from the revolution in the health care industries. And yet, they all use digital, cloud, software, engineering, connectivity or cyber tools. It is no longer possible to talk about digital in a generic -- in a generic way. So for Capgemini, means being industry-specific to have an impact on our clients' businesses. And that's what we are committed to with all our clients. Supporting the transformation also means being at their side in the challenge of the environmental transition. As you know, this transition is at the heart of Capgemini's commitments. Our goal is to help our clients to reduce their carbon emissions by 10 million tons by 2030. In 2022, we've led the foundation for our offering. We can help our customers, our clients, where they're net zero strategy on how to design more sustainable products, have to deploy greener IT systems or implement more sustainable production lines or logistics. Now the market associates our name with the environmental transition. And today, we are recognized by analysts as a global leader. We are increasing our visibility by being where it matters. And I'm thinking of our present at New York climate week, in the World Economic Forum in Davos. As you can see, the group has evolved. It is now focused on 1 main goal, creating value for our clients. As we've seen in the short video clip, the biggest companies now trust us. And I also invite you to read the integrated annual report, which includes many testimonials from our clients. For example, Fresenius health care company will help them with their cloud migration, improving the quality of care for all. You'll also find in the Strategy Director of Eneco, leader in renewable energies with whom we are committed to reducing their carbon emissions. So it's with our clients that we're building a better, more inclusive and sustainable future. And Capgemini's commitment in these areas, unwavering. We have made significant progress during this year on ESG. First, on the environment. We were 1 of the first companies in the world to have the SBTi label for carbon neutrality trajectory. And our emissions fell by 26% globally between 2019 and 2022. James Robey, who is in charge of our policy in terms of environmental commitments will come and present it to us in just a few minutes. We've also made good progress on the other pillars in terms of social issues. A few minutes ago, I underlined our ability to invest in human capital with 51 hours per employee, we have increased the average number of training hours per employee by 12% in 2022, well above our commitment of a 5% annual increase. In terms of gender balance, the number of women at Capgemini is growing faster than anywhere else in our industry. They will then represent 37.8% of our teams by the end of 2023 and 24.4% of managers. Our target is 30% by 2025. And I think that we're on the right path. I would like to reiterate a message today. Our progress on ESG is not just in addition to Capgemini's strategy. It's not a side issue either. It just reflects our belief that the digital transition is the lever for the environmental transition and social transition. Ladies and gentlemen, dear shareholders, to sum up 2022, I would say that the group has become a strategic business and technology partner for its clients, and I am proud of this. Very concretely, this translates into a growing dividend for you at EUR 3.25 per share. Now I'd like to talk to you about the future. In the short term, the economic environment in 2023 is obviously less favorable than in 2022. But despite this, we are starting this year with a positive outlook. We have double-digit growth in Q1, as I said, I am confident that 2023 is going to be another year of growth. I'm confident in the group's ability to demonstrate the necessary agility to get through this period. . In the longer term, the pathway towards a more digital and sustainable economy cannot be reversed. The world is in transition to a digital economy today. digital technology is reshaping organizations in all sectors at a very high speed. The rules of the game are changing around how value is created and it has an impact on our clients' business, how they innovate, produce, operate interact with their customers. Sustainable development is the challenge of our generation. It's no longer an option. It is necessary I'd even go further and it's a question of survival for every company. These 2 transitions are intertwined. We're going to experience a revolution that's very similar to what the industrial evolution was. Capgemini is ideally positioned in this dual transition where the architects, pioneers and experts this transition, and we're enabling our clients to accelerate their dual transition to a digital and sustainable world. There is an incredible potential for growth for the group. Ladies and gentlemen, shareholders of Capgemini, as you can see, I'm optimistic about the future of our group. We are a global leader, and we intend to continue to grow. Investing in Capgemini means investing in growth, in the future. It means investing to accelerate the necessary digital and environmental transformation of our company. We have what it takes to make a difference and build a more responsible and sustainable future.

Thank you, Aiman. Now very pleasant moment for our CFO, who will present our exceptional performance.

Ladies and gentlemen, I'm very pleased indeed to present to you the Capgemini Group's results for 2022. As you can see, in 2022, the group's consolidated turnover was EUR 21.995 million in 2022, up 21.1% on a reported basis compared to 2021. It represents a 16.6% growth at constant currency above the target range for 2022, it was between 14% and 15%, and that has been revised upwards during the year. The net impact of acquisitions on growth was 1.3 percentage points, corresponding mainly to acquisitions made in the Asia Pacific region in 2021. Consequently, the group's organic growth adjusted for the effects of scope and exchange rates was 15.3%. The operating margin increased by 22%, reaching EUR 2.867 million, which is 13% of revenue in the middle of the 12.9% to 13.1% range, targeted for 2022. It's an increase of 10 basis points compared to the previous year. Operating income amounts to EUR 2.393 million, 10.9% of revenue versus EUR 1.839 million in 2021. Net income attributable to the group also rose significantly, EUR 1.547 million, up 34% compared to 2021. Lastly, organic free cash flow remained at a high level, EUR 1.851 million, quite stable compared to 2021. Our performance is well above the target of EUR 1.7 billion for 2022. As in 2021, all business lines without exception, recorded double-digit growth at constant exchange rates in 2022. Strategy and transformation, which amounts to 8% of group revenue is up 28%. This growth reflects the group's ability to support its clients in their strategic digital transformation projects. In a complex geopolitical and with macroeconomic uncertainties. Applications & Technology services, which constitute the core of Capgemini business, 63% of group revenue also maintained robust momentum with a growth of 18%. So once again, the momentum is fueled by the demand large companies and organizations for digital transformation. It covers a growing part of their activities in value chain. Finally, Operations & Engineering Services 29% of the group recorded solid growth of 13.4%, driven in particular by engineering business. Now looking at performance by geographic area. As with the business lines, all the group's regions once again showing double-digit annual growth at constant currency. The U.K. and Ireland as well as North America had an exceptional momentum, and France recorded a robust growth. Lastly, organic growth in the Asia Pacific and Latin America regions was boosted by the acquisitions made by the group in the previous year in Australia, for example. The robust momentum is found in almost all sectors in which we operate. And interestingly enough, the industry sector benefited in particular from our unique positioning in the field of intelligent industry. All of the group's regions achieved an operating margin of over 10% with significant improvement in France, which has returned to its pre-COVID level. . Group's operating margin continued to improve in 2022. In spite of inflationary pressure and the return of some costs, for example, costs related to travel and occupancy. In these conditions, as we said before, the 10 basis point increase in gross margin is a unique performance, reflecting the growing weight of our innovative offers and their accretive nature. Overall, the operating margin rose by 10 basis points, reaching 13%, which is 70 basis points higher than the pre-pandemic level. Let's move on to the analysis of the net result. Other operating income and expenses amounted to EUR 474 million, down by EUR 25 million versus 2021, with a significant reduction in restructuring and integration costs. As a result, Capgemini's operating profit was up 30%, EUR 2.393 billion were 10.9% of turnover. Financial result as an expense of EUR 129 million, an improvement compared to 2021. Tax expense rose logically to EUR 710 million, of which EUR 73 million related to the transitional impact of the 2017 tax reform in the U.S.A. Net income attributable to the group was up 34% and year-on-year to EUR 1.547 million, while earnings per share on diluted rose 32% to EUR 9.09. Normalized earnings per share are up 25% year-on-year. Finally, just a few words about the group's balance sheet. The group's share of shareholders' equity rose sharply EUR 9.743 million. And the group's strong cash generation has enabled it to continue to reduce its net debt in 2022 was reduced from EUR 3.2 billion at the end of 2021 to EUR 2.6 billion at the end of 2022. This level compares to the EUR 6 billion of net debt that was reached after the acquisition of Altran on June 30, 2020. It's a remarkable performance, and it contributes to the strength of our financial structure. After a record performance in 2021, as you can see, Capgemini has recorded a further acceleration in 2022, achieving a historic year. And the group is once again reaping the benefits of its strategic choices and its continued investments in its innovation portfolio and talent. Those are exemplary results. They are combined with high cash generation and a particularly strong financial position. It gives us confidence in the group's ability to achieve its ambitions for 2025. Now let's turn on to the proposed appropriation of the net income of Capgemini SE company financial statements for the year 2022. It amounts EUR [ 433 ] million. And the Board of Directors decided at its meeting on February 20, 2023, to submit a dividend of EUR 3.25. This represents a total amount of EUR 564 million to be distributed based on the number of shares bearing dividend rights on December 31, 2022. Thank you for your attention.

Thank you, Carole. Reading through the agenda AGM, you'll have noticed the Board of Directors at Capgemini, this year wanted to hear about the group's climate strategy, get a formal presentation of that strategy during this year's AGM as a stand-alone agenda point. So I'll ask Dr. James Robey, who's in attendance here, who is in charge of sustainable development for the entire group. Do you please come and make a presentation on the group's climate strategy. Dr. Robey is English, who will be speaking English. Again, there will be simultaneous French translation shown on the screen that everybody can follow his speech. Go ahead, James.

Good afternoon. I'm Dr. James Robey, the Group's Head of Environmental Sustainability. And I'm delighted to be with you this afternoon to explain Capgemini's climate strategy. There can be little doubt that our climate or the climate of our planet is changing. In fact, by some calculations, the world is now more than 1 degree warmer than it was before the industrial revolution. And some scientists are predicting that temperatures may soon breach the Paris agreement of a 1.5-degree threshold. In human terms, nearly half the world's population is now to be considered living in a highly vulnerable areas due to the impacts of the heating planet. Acting on climate change is a clear imperative for every organization. And at Capgemini, we've been working on decarbonizing our business now for over 15 years. our Net Zero Board, comprising of our Chief Executive and Chief Financial Officers, together with other key group executives, provides the governance we need for setting and delivering our ambitious objectives. Operationally, a globally certified environmental management system now covers 34 countries, including every country where we have more than 1,000 employees. In July 2022, we significantly increased our climate ambition to become a net zero business by 2040, and using the rigorous definition of net zero set by the science-based targets initiative and which is crucially aligned to the latest climate science. Our headline target is to reduce by 90% our carbon emissions across all scopes by 2040 against the baseline of 2019. Once we've achieved this, we will use high-quality carbon removals to mitigate the final 10% of our emissions, bringing us to a net zero position. We've also set bolder near-term targets for 2030, covering energy travel, which includes our commuting and our supply chain. These commitments are complemented by targets to switch to 100% renewable electricity by 2025 and to have 100% electric vehicles in our company fleet by 2030. Moving on now from ambition to action. We are driving change across our key priority areas of travel, sustainable IT, our supply chain and energy. On business travel, we've established a new group travel policy supporting more sustainable travel choices. We've continued to expand our virtual collaboration capabilities, enabling colleagues to effectively connect and deliver wherever they are. Ultimately, the lowest carbon journey is the one not taken. Now of course, sometimes travel is critical, and our approach supports employees make low-carbon travel choices, for example, favoring rail over short-haul flying and through the transition to 100% electric vehicles in our company fleet. As at the end of 2022, across our global company car fleet, 24% are now either plug-in hybrid or fully electric. Commuting emissions are also a significant part of our overall carbon footprint. And in 2022, we again conducted a global review of commuting passions. Over 53,000 employees participated in a global survey, giving us a detailed view of our footprint and working patterns. And this time, including for the first time, the ability to estimate the emissions associated from our people working at home. On commuting, we're already taking action. For example, in India, we've replaced 25%. That's about 140 of our company cars with electric vehicles. In France, we're implementing new car sharing initiatives as well as introducing e-bike [ Hai ] and e-bike charging. In Germany, we're introducing a new mobility budget to encourage employees onto public transport. As a leader in the technology sector, we're also very aware of IT-related emissions. Our own sustainable IT program focuses on 4 key priority areas. Firstly, providing technologies needed to reduce travel just as we've been discussing. Secondly, reducing -- focusing on the energy efficiency of the devices we use, reducing the embedded carbon of those devices and then finally, minimizing electronic waste. Our aim is to reduce our IT carbon footprint through initiatives such as actively monitoring and reducing the energy consumption of devices such as servers, laptops and PCs and also by increasing the lifespan of key devices. In terms of our own supply chain, last year, we launched our Net Zero contract program with our top emitting suppliers asking them to set their own science-based targets and also to report annually, both on the footprint of the products that they're selling us and on their own decarbonization plans. To share 1 example about how we're partnering with our key suppliers. This year, we are sending back an initial batch of 10,000 laptops to HPI and for refurbishment to extend the life cycle from 4 years to 7 years. This initiative alone should help save about 1,800 tons of CO2 emissions in our supply chain. We continue to make strong progress on reducing emissions from energy. Now this is primarily driven by our transition to renewable electricity, combined with energy efficiency measures. Our focus starts with environmentally conscious design with many of our flagship buildings, including our [indiscernible] site in Paris, achieving sustainability accreditations, such as BREEAM and LEED. Our externally recognized green lease framework ensures that factors such as energy efficiency, EV charging points and the proximity to public transport are key when selecting new real estate. Furthermore, on renewable electricity, last year, we increased our share of renewables from 53% in 2021 to 87% and with 10 countries now running on over 80% renewable electricity. In India, which accounts for more than half of our global electricity consumption, we have invested heavily in on-site solar generation. In fact, by the end of 2022, we had installed over 30,000 solar panels with a total generation capacity of 11.5 megawatts. These arrays across 9 of our campuses generated over 35% of the electricity needs for these sites. And at peak generation time, we are even exporting back clean energy onto the Indian electricity grid. Finally, last year, we also launched our unique Energy Command Center in Bangalore, to optimize the energy efficiency of our campuses in India. This has helped us achieve a 29% reduction in energy in 1 year and the command center is currently being scaled up to support offices beyond India. The following video summarizes some of our key highlights. [Presentation]

Whilst our strong progress on decarbonization is recognized through our position on the CDP A list. And through our EcoVadis Platinum rating, we remain committed to go further. And whilst not my subject for today, we are also currently finalizing enhanced strategies on key topics such as biodiversity, waste and water. In addition, we're upskilling our people through a new suite of education programs, including a dedicated sustainability campus. Since its launch last year, over 220,000 of our people have taken the foundation modules. Finally, returning to carbon. We know that our actions to decarbonize our business by 2040 do not eliminate the very real problem of CO2 in the atmosphere today. Consequently, we're investing in projects to abate and remove carbon from beyond our own value chain. For example, supporting forestry restoration projects covering around 4,000 hectares of degraded land. Over 14.5 million trees are being planted which are expected to sequester over 1 million tons of CO2 over the next 30 years. Importantly, these projects will also have wider positive biodiversity and community impacts. Capgemini has at its heart a shared purpose, unleashing human energy through technology for an inclusive and sustainable future. Our commitment to act on climate change is just one example of Capgemini living this purpose. Thank you.

Thank you, James. Thank you for that presentation, which was very interesting. On the group's climate strategy you've understood, this is an ambitious and exemplary strategy for the shareholders that are present or viewing remotely, please do use the Q&A session later to ask any questions you might have about this. I'd like to ask Mr. Patrick Pouyanne, Chairman of the Compensation Committee from the Board of Directors to please come report to us on compensation of executive managers.

Ladies and gentlemen, shareholders, good afternoon. It's the first time I had an opportunity to speak in front of you. I've been a Board member for a few years, and I can attest to the beautiful governance of this company. As Chairman of the Compensation Committee. I'd like to talk to you now about the compensation policy for the Capgemini corporate officers has enacted. First of all, the compensation policy, which has been in place at this group and hasn't changed for many years, is established very much in compliance with legal and regulatory provisions and the MEDEF code is designed to be transparent for the shareholders balanced correlated to performance and strategy of the company and in line with its ESG commitment is described in detail in the Universal Registration Document in 2022. Therefore, I will not belabor this. I'd like to recall for you today will be voting on the compensation policy for the directors and the corporate officers, the Chairman of the Board of Directors and the Chief Executive Officer on their achievements for 2022 and the policy for 2023. First, pertaining to compensation policy for the directors to resolutions will be up your approval. Resolution #6 for 2022 has to do with paying 2 directors 1 million some euros below the overall envelope available, which is EUR 1.7 million. Resolution 10, is policy for 2023. And maximum envelope unchanged, EUR 1.7 million. Slight growth for competition for actual attendance of directors during Board sessions and committee sessions increasing these amounts slightly compensation Chairman of Committee has also increased slightly, having to do with the Chairman of Board of Directors [indiscernible] compensation for 2022. It breaks out into 2 parts. First half of the year, actually in the first 5 months of the year. [indiscernible] was receiving compensation, fixed annual compensation of EUR 800,000. This is probably for the 5-year -- 5-month period. He received no compensation as Director. This was the creative management transition, as you have observed last year at our AGM. It was very successful, and has changed slightly. The tasks for all and his conversation was adjusted starting in June 2022. [indiscernible] only receives compensation over the 7-month period for that new portion of compensation. Chairman of the Strategy and our committee and as all Board members, he received directors' compensation based on his actual attendance at the Board meetings. Pertaining to 2023 compensation policy for your Chairman of the Board of Directors is rose to 8 which is up for your vote. This remains unchanged compared to the second half of 2022. Therefore, once again, this will be solely a director's compensation and fixed on EUR 20,000 at tenancy's chairmanship of the strategy quite [indiscernible] EUR 20,000 and then compensation for the various committees and Board meetings he attendance. Now I talked about compensation for Chief Executive Officer, First of opportunities 2022. This compensation breaks out into 4 portions. The first portion is a fixed compensation, which is EUR 1 million per annum. The second portion is called variable compensation. It can range up to 180% of the fixed compensation. which in turn is evaluated on 3 parts. One part is 60% of the variable compensation is based on financial quantifiable objectives, 20% based on personal ESG quantified objectives and 20% based on qualitative strategic objectives. Your [indiscernible] on recommendation from the Competition Committee strictly adhered to this compensation policy, which you adopted in at the AGM of 2022, which meant compensation for the variable portion 2022, 111.2% of the theoretical amount, 111.2%, was EUR 1,112,320. Furthermore, Aiman is that has a long-term savings plan instead of the supplementary pension plan, which was closed in 2015, and Aiman didn't receive that. The plans payable over 2 years target amount 40% of it is fixed annual compensation. It was determined it was in the amount of EUR 414,720,000 for 2022, half of which paid in 2023 and the other half paid in 2024. Lastly, your CEO to have him closely related to the company's performance in the long term, he receives what they're called performance shares. These are company shares which are granted subject to performance, evaluated over a 3-year period. The amount is capped. It's equal to the cash compensation received by the CEO covering both his fixed and variable portions of compensation. Performance conditions for '22 remain unchanged from the previous years. Three criteria: performance relative to the share price, a generation of free cash flow, and social and environmental responsibility for the diversity and environment. Mr. Ezzat in October '22 received a grand performance shares to the tune of 21,000 shares in compliance with the compensation policy, which you approved. So this is going to be submitted to you for a vote under Resolution 7 of this AGM. This brings me lastly to the last resolution pertaining to compensation policy for the Chief Executive Officer. This is for 2023. It's called the [indiscernible] vote. Your vote is proposing compensation for the CEO of 2023 to be unchanged compared to 2022, fixed compensation EUR 1 million; variable compensation, which could go all the way to 180% of the fixed weighted for financial elements between 60% and personal objectives are 40%. Half of them are quantifiable. The other half are qualitative based on CSR strategy being the strategic partner of our clients and attractiveness for talent. Mr. Ezzat will continue to benefit, as in 2022, the long-term savings plan that I described previously as well as the grant of performance shares. We specified as one of the few changes proposed, the weighting of ESG indicators in the performance conditions was increased from 15% to 20%, which is in compliance with what's customary. Lastly, the CEO has a noncompetition clause. And he would also receive a severance pay if he first leaves. He also gave his job contract. So ladies and gentlemen, these will be covered by Resolutions 5 to 10 which are up for your approval, having to the compensation of the corporate officers. Thank you for your attention.

Thank you, Mr. Pouyanné. After hearing about compensation, we have our governance. I'd like to ask Frederic Oudea, Chairman of the Ethics and Governance Committee from the Board to please make his presentation.

Ladies and shareholders, good afternoon. As lead director and chairman of the Ethics and Governance Committee, it's my task to report to you on the Board's activity and my activity during 2022 in compliance with the bylaws of the Board of Directors. I suggest 3 subjects: the activity of the Board, external evaluation of Board of Directors and its functioning, which we conducted in 2022; and of course, to ask pertaining to composition and governance considerations, which will be subject for your approval. Let's begin by talking about the Board's activity. If the slide show will cooperate. For the time being, I'm pressing on the green button, and it's not cooperating. Will technology be problematic? That would certainly be a problem. Now you can see the Board was very active in 2022. We looked into various subjects, strategic orientation of the group. We also boosted our supervisory capacity, validating the various indicators pertaining to senior management, enabling us to track their activity. There are 3 focus -- main focuses of our group strategy, customer first. This has to do with transformation of the experience for companies, more personalized and more data focused. Also, Intelligent Industry, which is designed to be synergy between digital -- the registered world and engineering. You know that this is an area where we're a global leader, particularly after the acquisition of Altran. And the third point, Enterprise Management and transformation of enterprise processes. I won't talk about the success of the strategy, again, which was beautifully illustrated when we heard about the results from 2022. On to governance, of course, as already -- as Patrick already said, 2022, there was a transition. We decided to maintain a separate governance. Our view is this is the most appropriate type of governance for Capgemini right now, and it's very much in line with best practices. We decide to renew Paul Benjamin as Chairman of the Board of Directors considering the great success during the period of managerial transition and the success of the renewal of his term of office during the 2022 AGM. Thanks to this renewal, we benefit from his expertise and his in-depth knowledge of this group, which he led for 18 years. And of course, we -- yours truly remains in office. You've gone too quickly on the slide show. I want to remind you that your Board is very active, great attendance, 99% attendance rate, 7 Board meetings, 20 committee meetings and one executive session. Yes, as I mentioned next slide, pertaining to the Chairman's role. We've left a period of transition. Now it's behind us. With the end of the specific tasks during the period of transition, as Patrick mentioned [indiscernible] Paul, chairs and leads the Strategy and CSR Committee. A second point, external evaluation of the Board. As I mentioned, every 2 years, we ask an outside firm to measure the effectiveness of the Board's work. This evaluation is based on individual interviews with each director. The objective is to evaluate the smooth operation of the Board of Directors and the appropriateness of its composition and the actual contribution of each director. There was a summary of the support given to the Board of Directors during this meeting on December 7, 2022. It was a very positive evaluation. I'd like to underscore, among other things, all the directors observed the successful renewal of the Board's composition, bringing a great diversity of experience. We've shown our ability to bring on board new directors. Furthermore, everyone talked about the success of the period of managerial transition and how effective the separate governance has been. Also a satisfactory strengthening of the Board's involvement in defining group strategy. Lastly, we've seen a wealth of contribution from individual Board members. The Board of operates very well. On to 2023 priorities, they're very much in line with what's been done in the past, great continuity tracking strategic guidelines. As you saw, '22 was a year which is a sensitive year. Europe changed. It was important for the Board to fully understand the development policy and retention policy of retaining talent. Sustainable development. We've already heard about this. We heard about the CSR policy. We've seen the group has a direct impact in this area. We also have been developing a strategy for a sustainable product offering to our clients. This is something we feel is very important for our strategy. It's fundamental. This brings me now to talk about the composition of the Board of Directors. I'd recall for you that we always seek to adhere to 4 specific objectives pertaining to Board composition. We want to maintain a high level of international Board members. We like to have a good diversity of profile and experience, background of Board members. We also wish to terms in office and maintain the appropriate number of Board members, making this manageable to provide for consistency and good cohesiveness. In 2022, I'd say we maintained 40% of our Board members are non-French. 42% of our Board members are women. And we see we've got people with many different backgrounds and come from many areas of expertise. To talk to you about the composition of the Board more specifically to repeat, you can see this on the slide. As Paul mentioned to you earlier, there were some recent changes in the makeup of the Board. Next slide. I'm trying to get the slide to move forward to talk about the selection process. We have a selection process which is very stringent. I'm responsible for this, along with the Ethics and Governance Committee. We use very precise criteria. We bring in an outside firm to help identify the most appropriate profiles to become members of our Board of Directors. In '22, you'll remember, you voted on 2 new members, Maria Ferraro. I want to -- to you -- she's a Canadian CFO from Siemens Energy AG; Olivier Roussat, CEO of Bouygues, the second of 3 renewals, which you also approved last year. Now this so happens, we have 2 directors. I won't repeat why they're leaving but for personal reasons, Tanja and [indiscernible] due to change in responsibilities. Two persons have left our Board. We, therefore, wanted to replace them, maintaining all the while the composition of the Board, as I've just outlined it for you. We're very happy to introduce to you 2 new candidates to become members of the Board. This will be up for your vote for them to become members of our Board of Directors. Megan Clarken from New Zealand. She'll be bringing in her expertise in the area of technology, data and digital transformation as well as great expertise in media and retailing sectors. This is under Resolution 11. And then Ms Ulrica Fearn, a Swedish national. We're bringing in a strong financial experience. She's held many positions in international corporations. That's Resolution 12, which will be up for your vote later. Subject to their appointment, your Board of Directors proposes that Ms. Megan Clarken become a member of the Strategy and CSR Committee replacing Tanja Rueckert and Ms. Ulrica will become a member of the Audit and Risk Committee, replacing Xiaoqun Clever. I'd suggest possibly that Megan, Megan, if she would agree, might speak briefly so that she can introduce herself to you. Go ahead, please.

Thank you very much. Good afternoon. My name is Megan Clarken, and I am the CEO of Criteo. Criteo is a global ad tech or advertising technology company specializing in commerce media. Criteo is a public company and we're listed on the NASDAQ. I've been with Criteo for 3.5 years, and I've been leading the company through a major transformation, taking it from a single product provider to a multi-product platform provider. And Criteo is now leading the way in the fastest-growing area of digital advertising, and I'm proud that Criteo is a French company. [Foreign Language] Prior to my time at Criteo, I spent 15 years at Nielsen Global Media, which is the world's largest media research and measurement company. I had a number of different roles at Nielsen, with the last one being Chief Commercial Officer and Global President. [Foreign Language] Prior to this, I spent most of my career in digital media and information technology. [Foreign Language] As you heard, I am a New Zealander, and today, I live between the U.S. and France. [Foreign Language] I'm excited to bring to Capgemini and my experience in global markets, my knowledge of the U.S. market, my experience in business transformation and my passion for ESG, including DEI. [Foreign Language] And if voted in, I'm excited to join the experienced team of Capgemini Board of Directors and aim to provide assistance and support to the CEO and his leadership team. [Foreign Language] Thank you.

[Foreign Language] Ulrica Fearn, speak now please.

Thank you very much, and good afternoon, everyone. My name is Ulrica Fearn, and I'm a Swedish citizen and I'm the Chief Financial Officer for Carlsberg Group in Denmark. [Foreign Language] As a nonexecutive director in Capgemini, I would bring extensive customer experience from a range of industries, across consumer goods, telecommunications and energy. [Foreign Language] I've lived and operated across Europe, Asia, Australia and North America, working in companies such as Diageo, British Telecom, Equinor and now at Carlsberg Group. [Foreign Language] And I've experienced business and technological transformation and driven it across each of those geographies and industries across consumer goods, which is all about customer and consumer centricity and brand management, telco, which is all about digital transformation and the energy sector where I learned appreciation for sustainability, risk management, energy transition as well as energy security. [Foreign Language] And as a group CFO as well as from previous roles across the world, I have deep financial controls, compliance and risk expertise and are well versed in the importance of compliance and governance. I've got a proven track record of transforming both control systems and risk management framework. [Foreign Language] And I hope this will bring vision, insight and customer perspective from a diverse industry perspective, diverse countries and my passion for driving transformation, innovation and value creation will partner well with Capgemini in the future. [Foreign Language] Thank you very much.

[Foreign Language] Thank you very much, Ulrica. Now as you see on this slide, if you vote in favor of these 2 appointments at the Board, we will be able to maintain the percentage of independence and diversity and be at the best standards of the industry as a whole. Thank you for your attention.

Thank you, Frederic. So we're drawing near to the end of this general assembly, and we'll reach the session that we're all waiting for, the Q&A session. But before that, I will -- I would like to ask Mr. -- I'm sorry, Ms. Itto el Hariri to present the report of the statutory auditors.

Good afternoon. On behalf of the statutory auditors, PricewaterhouseCoopers audit in I am honored and pleased to report to you on our engagement for the year ended December 31, 2022. In accordance with the practice of this meeting, I propose to some of the terms of our various reports, which have been made available to you by the company and are included in the 2022 universal registration document. I'll begin with our report on the consolidated financial statements of the group, which have been prepared in accordance with the IFRS framework as adopted by the European Union. We have certified the financial statements without qualification or comment. We have considered as key points in our audit elements, which were deemed to be most important and which, therefore, we see particular attention during our audit. In our report, we described the reasons -- recognition of revenue and the audit response that we brought. For 2022, these key audit items concerned 2 themes. First of all, recognition of revenue using the percentage of completion method on multiyear contracts based on deliverable services or multiple element contracts. Secondly, the assessment of the recoverable amount of goodwill. We recall that the main objective of our engagement is to obtain reasonable assurance about fairness, regularity and true and fair view of the financial statements to ensure that they are free from material misstatement. To this end, we work with all significant entities of the Capgemini Group in France and abroad. Our approach is adapted to the group's activities in various business lines as well as to its organization. The verification of the management report and other documents sent to shareholders does not call for any particular comment. Regarding our report on the financial statements of Capgemini SE, which have been preparing in accordance with French accounting principles, we considered the valuation of investments in subsidiaries of Capgemini SE to be a key point in our audit. We have certified these financial statements without qualification or observation. Regarding our special report on regulated agreements, we have not been advised of any new agreements authorized during the year ended on December 31, 2022, reports state that none of the agreements authorized in previous years continued during the year ended on December 31, 2022. Lastly, in connection with the extraordinary portion of your shareholders' meeting, we have issued 3 reports on the draft resolution submitted to your vote this afternoon and relating to capital. And we have not commented on terms and conditions proposed to you by your Board of Directors. Mr. Chairman, ladies and gentlemen, thank you for your attention.

Thank you. I'd like to thank all of the speakers on the program at a beginning of Q&A at 3:20. It's exactly through 3:20 on the dot. It's exceptional. Congratulations. That's a precise I can't give any keeping specifically on time. So let's begin the question-and-answer session. For information, written questions as every year have been received for the AGM. Answers have been made available or posted on our website. We'll spend around 25 minutes on our Q&A session. We'll take questions from the room, of course. We'll also take questions through the secure platform, which is available for online shareholders. They can continue asking their questions so feel free to do so online. We will endeavor to ask -- to answer the largest number of questions possible, depending on the time we have. Now to the members present to the room so that we have the most people who can speak, we ask you all to be cooperative and please only take 1 minute per question, one question per person, one minute per question. The staff members have microphones, so please raise your hand so that people can give you a microphone before you ask your question.

Let us begin with a question we received online. Paul brought up the subject, which is not for an IT company. It's mainly a societal question. It has to do with artificial intelligence, ChatGPT. We have a question on this which was as follows saying, ChatGPT is in the news now, it's sensitive. What are the knock-on effects going to be of this new artificial intelligence in terms of services provided by Capgemini? Do you see this as a risk or an opportunity, Mr. Chief Executive.

Thank you the question. I expected since it's a topical issue, it goes without saying that technology is constantly making breakthroughs. The AI breakthroughs made possible for ChatGPT This is called generative artificial intelligence because it can pull together a very large amount of data, images, videos, text and then generate new content. Now this new technology has made AI visible to the public at large, but there's nothing new to Capgemini. For many years now, we've been working on generative AI. We've already delivered various projects to clients in this area. But recent breakthroughs is true, have speeded up adoption of this technology more broadly. So 2 impacts for us at Capgemini. First of all, an impact on our own productivity. We work a great deal on including generative AI into our working methods, particularly in developing software, testing, data migration. This helps us speed up processes and productivity of our teams. This is productivity we've been proving for years now. It's nothing new, but it's been an extra step in that direction. It's a major step up. When resumes, it will be possible for us to contend with lacking resources. Remember, 10, 12 months ago, there was a serious shortage of talent or resources in the marketplace. A lot of clients couldn't start projects because they were lacking talent. That's the first point, our productivity. Second aspect to you, of course, has to do with our product offering. We're working on product offerings using generative AI offerings for content generation, creativity, customer experience. We'll be, in the summertime, launching an offer on what's called a Customer Experience Assistant to enhance and speed up various customer service automations to improve that type of customer automation and make it speeder. Also engineering, designing lighter-weight, more resistant vehicles or think of new molecule, development of new vaccines and so forth. But in generative AI, we have to look at this as an assistant. It's not a replacement, it's an assistant. When you look at generative AI, it requires a lot of investment. And where also, where there's the fact that there are risks also inherent in this new technology such as data security, cyber security, very important here, copyright considerations and other. This is why within Capgemini, we've already established guidelines on how to use generative AI. A draft to European legislation in this area is designed precisely to find solutions. It's compromise on using generative AI and all the while we're risking the most serious risks -- limiting those serious risks. Remember, for several years now, we've had an ethics charter in using AI. We're adding to that charter now to include elements pertaining to the generative AI. It's an opportunity, yes, to make progress. New technology enhancement of both productivity and creativity to speed up acceptance of this technology and shift toward the new digital sustainable technology. We have to use this as a plus, but we have to also be aware of potential risks and make sure that regulations are at the appropriate levels so that it's possible to control the negative aspects with that and all, in any way, holding back development of this technology.

Thank you. A question from the room. Go ahead, madam. You'll be given a microphone. Please introduce yourself and ask your question.

[indiscernible] I noted clearly your excellent performance last year. This excellent performance hasn't been reflected in the share price. The share price hasn't been all that great recently. It had gone up to EUR 220 a while back, now EUR 161, and it lost 12.24% share price loss, over 12% in 1 year's time. I think you know why, why your good results aren't reflected in the share price.

As the Chief Executive, yes, the share price doesn't only depend on our performance, but also in the marketplace more broadly. In our industry, to compare to our peers, our stock market performance is excellent compared to our peers. They've turned off my microphone. So if we compare to our major global peers, our performance is good. And what we're seeing today in the industry, where we're categorized IT services industry, what we're seeing, stock market performance is being held back by the fact that we're in a period of negative growth. And usually, shareholders wait to see the periods of growth before they ratchet up their investments in the stock market. But look at the other way around, if you -- when you meet with financial analysts, our price targets remain the same. The financial analysts are highly confident in our ability to rebound in the next 12 months, share price ability to rebound in the next 12 months.

There's another dimension to this question. I have received 2 questions and I'm going to regroup them. They're coming from shareholders online. They're talking about the 2023 outlook, especially in terms of profitability to ask the question of the impact of inflation on cost. And the second question is about the macroeconomic context, which is quite unstable.

So the question is about the expected level of growth in our business for 2023. Thank you. That's a great question, especially in the context in our industry. We followed very closely what's happening in macroeconomic and geopolitical level, especially when it concerns inflation and the pressure on supply chains, as you know. But our growth driver at Capgemini is transformation. Transformation will be sustained. There is this dual transition towards the digital economy and the environmental transition. Even though there is a slowdown this year, we are still growing. So we're talking about structural transformation that cannot be reversed. It will just slow down a little bit. So I would say that today, in spite of an environment in which investments have slowed down and there's a bit of a wait-and-see behavior from our clients, we'll still have good growth perspectives. We have targets from 4% to 7% in terms of growth in 2023. And we're among the most dynamic players in the market. We're going to continue gaining market shares. We are in the middle of this target after the Q1 results. We were expecting a slowdown because when you have an economic outlook that's a little bit less good, then clients also slow down with their large programs and it leads to a general slowdown. But regarding margin, as you've seen, in spite of the slowdown, we maintained our resilient margins. We expect between 0 and 20 basis points of improvement. So there's a slowdown of growth because of a wait-and-see behavior, but we still demonstrate strong resilience with one of the biggest growth in the market compared to our competitors, maintaining our targets in terms of margin, even improving them. When uncertainty goes down, we'll see there will be a change in a couple of quarters, we will accelerate in growth. We'll go back to normal levels. Another question in the room?

Sir?

Jean-Pierre, individual shareholder. First of all, congratulations and thank you for our financial performance. Yes, the stock price is what it is, but it's no big deal, I guess. Just about the slide that was presented by Mr. Pouyanné Resolution #7, the compensation of CEO. Of course, it's performance based, but [ 21,000 ] performance-based action leading to EUR 1.3 million. I don't really understand or it should have a negative impact on the stock price.

While the calculation is made will -- based on the October value, and then there's -- we take the number of shares they are granted to Mr. Ezzat multiplied by the stock price, the date of notice. And then we have the IFRS accounting value because shares are blocked for a certain period. There is a 3-year vesting period. So it's a constraint that translates into an IFRS value of 75%. And using these elements, you'll end up with a value that was mentioned by Patrick earlier on. It's very aware that Patrick makes mistakes in terms of math.

A question about our employees because we are a service-based company. I don't know if it's a question for our Head of HR. A question on teleworking. Capgemini really wanted to develop teleworking, working from home. What do you think of this experience? I would like to give the floor to Anne, Director of Human Resources.