-
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Paris, 18 February 2010
2009 Full Year Financial Results
-
2009 Full Year Financial results
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Firmly Sailing the Storm thanks to
i3 Outputs, Preparing for the Rebound
© 2009 Capgemini. All rights reserved
Financial analysts
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Satisfactory resistance in 2009 thanks to a good management of cyclical activities; margin commitment delivered despite worsening environment
• A 8.7% revenue decrease in Q4 09, -6.7% excluding a large contract decrease
• Remarkable margin resistance capacity for Consulting activities at 11.4% margin over the year
• Satisfactory results in France in Technology Services with stable revenue
• Stringent management of salary average costs
• Tight headcount management allowed return to good utilization rates
Greater intimacy with strategic accounts bringing market share gains
Resilience strategy bearing fruit• Public sector at 28.1% of the Group revenues with a new footprint in North America
• Investment carried on in the Energy Utilities sector, 13% of the Group revenues
• Great achievements in Outsourcing: growth in 2009, 36.4% of the Group revenues and improved margin at 7.2%
Continuous offshore penetration, 28,000 people, 30.9% of headcount (+3.3 points)
Strong cash generation
Some key strengths to tackle 2010• In motion with a strong profitable growth program - ‘business as Unusual’
• Balance sheet further strengthened in 2009
• High confidence of managers and employees in the Group future - successful BSAAR and ESOP plan
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2009 Full Year Financial results
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Income Statement Overview
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Financial analysts
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(in M€) FY 2008 H1 2009 H2 2009 FY 2009FY 2009
vs
FY 2008
Revenues 8 710 4 376 3 995 8 371 -3.9 %
Operating expenses -7 966 -4 089 -3 687 -7 776
Operating Margin 744 287 308 595
(% Revenues) 8.5% 6.6% 7.7% 7.1% - 1.4 pts
Other operating income 20 - 7 7
Other operating expenses - 178 - 120 - 149 - 269
Operating profit 586 167 166 333
(% Revenues) 6.7% 3.8% 4.2% 4.0% - 2.7 pts
Net finance expense - 19 - 39 - 54 - 93
Income tax expense - 116 - 50 - 11 - 61
Share of profit of associates - - - 1 - 1
Profit for the period 451 78 100 178
(% Revenues) 5.2% 1.8% 2.5% 2.1% - 3.1 pts
Net cash and cash equivalents (end of period)
774 576 1 269 1 269
Number of employees (end of period) 91 621 89 453 90 516 90 516
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6.7%
16.9%
40.0%
36.4%
At constant rates and perimeter
Technology
Services
Outsourcing
Services
Local Professional
Services
FY 09 / FY 08
Consulting Services - 14.7%
Technology Services - 7.4%
Local Professional Services - 8.3%
CS / TS / LPS - 8.4%
Outsourcing Services 0.3%
TOTAL GROUP - 5.5%
2009 Revenues by Discipline
Consulting
Services
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2009 Full Year Financial results
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Current Current Organic
(in M€) FY 2008 FY 2009FY 09 /
FY 08
FY 09 /
FY 08
North America 1 668 1 590 - 4.7% - 8.5%
France 2 077 1 949 - 6.1% - 6.1%
UK & Ireland 1 922 1 852 - 3.6% 7.5%
Benelux 1 303 1 397 7.3% - 12.9%
Rest of Europe, Asia & Latin America 1 740 1 583 - 9.1% - 7.6%
TOTAL 8 710 8 371 - 3.9% - 5.5%
Benelux
North America
UK
& Ireland
France
Rest of Europe,
Asia & Latin
America
19.0%
22.1%
16.7%
23.3%
18.9%
2009 Revenues by Main Geography
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2009 Full Year Financial results
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13.0%
6.9%28.1%
8.0%
27.5%
16.5%
At budget rates
Energy, Utilities &
Chemicals
Financial
Services
Other
Public Sector
Telecom,
Media &
Entertainment
Manufacturing, Retail
& Distribution
2009 Revenues by Sector
2009/2008
Bookings Revenues
Financial Services
Energy, Utilities & Chemicals
Manufacturing, Retail & Distribution
Public Sector
Telecom, Media & Entertainment
Other
- 14.6%
31.1%
- 13.1%
13.6%
- 9.7%
- 13.8%
- 14.3%
- 8.7%
- 5.7%
9.4%
- 20.8%
- 4.2%
TOTAL - 1.8% - 5.3%
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Financial analysts
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2009 Full Year Financial results
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Financial analysts
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Bookings Evolution by Discipline
1 689
565
1 784
455
1 389
658
1 653
1 259
1 518
756
1 539
620
1 277
704
1 603
1 263
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09
Outsourcing
Project & Consulting
2 254 2 2392 047
2 912
2 2742 159
At constant rates & perimeter
(in M€)
1 981
2 866
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Consulting / Technology / Local Professional Services
Q4 Bookings Revenues BBR
North America 276 242 1.14
Rest of the world 1 327 1 133 1.17
TOTAL 1 603 1 375 1.17
Q4 2009
Book to Bill Evolution
Consulting / Technology / Local Professional Services
Q4 Bookings Revenues BBR
North America 1 135 1 007 1.13
Rest of the world 4 802 4 472 1.07
TOTAL 5 937 5 479 1.08
FY 2009
At budget rates
(in M€)
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2009 Full Year Financial results
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Current Organic
Current sequentialyear on
yearsequential
year on year
(in M€) Q4 2008 Q3 2009 Q4 2009Q4 09 /
Q3 09
Q4 09 /
Q4 08
Q4 09 /
Q3 09
Q4 09 /
Q4 08
North America 455 388 366 - 5.5% - 19.4% - 2.8% - 10.8%
France 540 431 509 18.0% - 5.7% 17.3% - 5.7%
UK & Ireland 452 450 431 - 4.3% - 4.7% - 0.3% 3.1%
Benelux 345 325 338 4.1% - 2.0% 4.1% - 20.4%
Rest of Europe, Asia & Latin America
446 352 405 15.1% - 9.1% 14.3% - 10.4%
TOTAL 2 238 1 946 2 049 5.3% - 8.4% 6.6% - 8.7%
Benelux
North America
UK
& Ireland
France
Rest of Europe,
Asia & Latin
America
17.9%
21.0%
16.5%
24.8%
19.8%
Q4 2009 Revenues by Main Geography
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Sequential Year on year
Q4 09 / Q3 09 Q4 09 / Q4 08
Consulting Services 8.9% - 15.5%
Technology Services 9.9% - 13.0%
Local Professional Services 11.7% - 8.9%
CS / TS / LPS 10.3% - 12.2%
Outsourcing Services 0.6% - 1.7%
TOTAL GROUP 6.6% - 8.7%
At constant rates and perimeter
Q4 2009 Growth by Discipline
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2009 Full Year Financial results
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71
6867
6365
63
6767
50
60
70
80
90
8283 83 83
81 81 8182
7981 80 80
77
8081
78
© 2009 Capgemini. All rights reserved
Financial analysts
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Consulting Services Technology Services Local Professional Services
At constant perimeter
(%)
Utilization Rates by Discipline
Q1 Q2 Q4
2008 2009
Q3 Q1 Q2 Q4Q3 Q1 Q2 Q4
2008 2009
Q3 Q1 Q2 Q4Q3 Q1 Q2 Q4
2008 2009
Q3 Q1 Q2 Q4Q3
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2009 Full Year Financial results
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Financial analysts
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800
900
1000
1100
1200
400
500
600
400
500
Consulting Services
Technology Services
Local Professional Services
(in €)
Charge-out Rates
1 169 1 171 1 162 1 169
1 1371 113
1 0111 030
511 508489
511498 497
464
482
Q1 Q2 Q2Q4
2008 2009
Q3 Q1 Q3 Q4
474481 481 484
477 479470
477
At constant rates & perimeter
Q1 Q2 Q2Q4
2008 2009
Q3 Q1 Q3 Q4
Q1 Q2 Q2Q4
2008 2009
Q3 Q1 Q3 Q4
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2009 Full Year Financial results
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Onshore – Offshore Headcount Evolution
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63 675 63 995 63 74064 135
66 34665 456
64 42663 415
62 512
19 83320 571
22 74723 997
25 275 25 609 25 02725 863
28 004
18000
23000
28000
33000
38000
50000
55000
60000
65000
Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09
Onshore (LHS) Offshore (RHS)
BAS acquisition +2,165
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2009 Full Year Financial results
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Headcount as of Dec. 31, 2008 91 621
Recruits * 13 072
Acquisitions / Outsourcing Deals ** 543
Disposals - 250
Layoffs - 5 003
Leavers - 9 467
Headcount as of Dec. 31, 2009 90 516
(*) of which 5 762 in India
2 139 in other offshore locations
(**) out of which 207 for IACP
161 on Warner Bros projects
Attrition YTD Dec 08 Dec 09
Consulting Services 20.7% 13.7%
Technology Services 17.4% 9.9%
Outsourcing Services 15.0% 10.2%
Local Professionnal Services 18.3% 9.9%
Total Disciplines 17.1% 10.2%
Headcount Evolution
60% Offshore
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2009 Full Year Financial results
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0%
10%
20%
30%
40%
50%
60%
70%
Global CC NA TS TS Northern Europe
TS Central Europe
TS Southern Europe
Outsourcing Sogeti FS & Asia Group
2.5%
56.6%
24.0%
16.8%
9.9%
48.3%
5.1%
66.8%
28.5%
4.7%
55.8%
26.5%
18.2%
9.6%
55.0%
6.0%
67.8%
32.1%
December 2008 December 2009
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Financial analysts
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Further Offshore Leverage in 2009, Mainly in OS and FS
Offshore Penetration per unit
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Evolution of Group Remuneration Cost from
2008 to 2009
2009 Average salary increase onshore : 1.5%
Average remuneration decrease onshore: - 3.3%(incl. currency effects)
2009 Average salary increase offshore: 2.8%
Average remuneration decrease offshore : - 9.7%(incl. currency effects)
Group average remuneration cost evolution : - 5.9%(incl. currency effects)
Neutralizing the impact of major currencies evolution (USD appreciation and depreciation of GBP,
INR and PLN) compared to Euro : Group average remuneration cost still decreases by -4.6%
(Onshore : - 1.9%, Offshore : - 2.5%)
Increase in offshore weight in the average headcount (from 25.3% in 2008 to 27.8% in 2009) reduces
the overall Group average remuneration cost
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2009 Full Year Financial results
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(in M€)FY
2008H1
2009H2
2009FY
2009
Revenues 8 710 4 376 3 995 8 371
Personnel costs - 4 940 - 2 588 - 2 263 - 4 851
% of Revenues 56.7% 59.1% 56.6% 58.0%
Purchase and subcontracting expenses - 2 138 - 1 074 - 1 008 - 2 082
% of Revenues 24.6% 24.6% 25.2% 24.9%
Travel expenses - 389 - 175 - 155 - 330
% of Revenues 4.5% 4.0% 3.9% 3.9%
Rent and local taxes - 286 - 153 - 151 - 304
% of Revenues 3.3% 3.5% 3.8% 3.6%
Depreciation, amortization, provisions and net result from disposals of fixed assets
- 213 - 99 - 110 - 209
% of Revenues 2.4% 2.2% 2.8% 2.5%
Total operating expenses - 7 966 - 4 089 - 3 687 - 7 776
% of Revenues 91.5% 93.4% 92.3% 92.9%
10.7%7.0%
76.1%
7.4%
Cost of services
rendered
Operating
Margin
Selling
9.3%7.5%
7.1%
G&AAt current rates and perimeter
Operating Margin AnalysisFY 2009
Operating
Margin9.8%
7.3%
74.4%
8.5%
G&A
Cost of services
rendered
Selling
FY 2008
Financial analysts
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At current rates and perimeter
(1) Items not allocated correspond to headquarters’ expenses
Operating Margin by Main Geography
FY 2008 FY 2009
(In M€) RevenuesOp.
Margin% Revenues
Op.
Margin%
North America 1 668 91 5.5% 1 590 77 4.9%
France 2 077 148 7.1% 1 949 121 6.2%
UK & Ireland 1 922 164 8.5% 1 852 165 8.9%
Benelux 1 303 183 14.0% 1 397 122 8.7%
Rest of Europe, Asia &
Latin America1 740 216 12.4% 1 583 165 10.4%
Not allocated (1) - - 58 - - - 55 -
TOTAL 8 710 744 8.5% 8 371 595 7.1%
Financial analysts
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2009 Full Year Financial results
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FY 2008 H1 2009 H2 2009 FY 2009
Consulting Services
Technology Services
Local Professional Services
CS / TS / LPS
Outsourcing Services
12.8%
10.2%
12.9%
11.3%
5.4%
10.6%
6.2%
9.1%
7.5%
6.7%
12.4%
7.6%
10.2%
8.8%
7.7%
11.4%
6.9%
9.7%
8.1%
7.2%
Total Operations (*) 9.2% 7.2% 8.4% 7.8%
GROUP 8.5% 6.6% 7.7% 7.1%
At current rates and perimeter
(*) before headquarters’ expenses
Operating Margin by Discipline
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(in M€) FY 2008 FY 2009
Operating Margin 744 595
Other operating income 20 7
Other operating expenses - 178 - 269
of which Restructuring costs
Stock options, performance shares and @ESOP
- 103
- 22
-213
-19
Net finance expense - 19 - 93
Income tax expense - 116 - 61
Share of profit of associates - - 1
Profit for the year 451 178
Earning per share as of Dec. 31st (non diluted) - in € 3.09 1.16
Net Profit Analysis
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Balance Sheet
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ASSETS Dec. 31,2008
Dec. 31,
2009EQUITY AND LIABILITIES Dec. 31,
2008
Dec. 31,
2009
Goodwill 2 726 2 750 Equity 3 939 4 213
Intangible assets 140 116 Long-term borrowings 987 1 057
Property, plant and equipment 422 421 Deferred taxes 138 153
Deferred taxes 863 887 Provisions for pensions and other post-employment benefits 503 680
Other non-current assets 91 112 Non-current provisions 45 21
Other non-current liabilities 112 95
Total non-current assets 4 242 4 286 Total non-current liabilities 1 785 2 006
Accounts and notes receivable 2 396 2 067 Short-term borrowings and bankoverdrafts 47 278
Other receivables and income tax 223 257 Accounts and notes payable 2 096 2 026
Short-term investments 1 290 2 109 Advances from customers and billed in advance 639 567
Cash at bank 578 494 Current provisions 20 28
Other payables and income tax 203 95
Total current assets 4 487 4 927 Total current liabilities 3 005 2 994
Total Assets 8 729 9 213 Total Equity and Liabilities 8 729 9 213
(in M€)
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595
774
Cash net of
Debt
31.12.08
2009Operating
Margin
2009BonusAccrual (net)
Amorti-zation
andprovisions
Paymentbonus2008
CAPEX Paymentof
restruc-turing
Other Working Capital
evolution (excl. bonus
effect)
Acqui-sitions
Cash Net of Debt
31.12.2009
Taxpaid
ExchangeRate
Differences
Dividends& treasury
shares
Impactof
Oceane
744 333 93 - 319 - 177 - 126 - 41 -94 - 167 - 218 10FY
2008
Comparable
Cash bef.non
Operationalitems
- 284
347 M€ operational flow vs 413 M€ in 2008
(in M€)
Net Cash Evolution70
328
161
185 139
1 176
135225
1 269
13
Increasein
capital
Netinterest
29 - 27 (*)
4 20
(*) to be added in 2008, +129 M€ of carry back impact
273
56 55
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2009 Full Year Financial results
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Market Still Soft in Early 2010,
Opened Perspectives
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Slow start of our activities impacted by 2009 elements Two large contracts evolution impact H1 2010 growth by 3.3 points
H2 2009 price decreases on-going impact
Lower onshore headcounts level not fully compensated by offshore growth
Demand still shy but some early signs of market turnaround Price stabilization in Consulting activities and in most Technology Services operations
Attrition picking up in some geographies like North America, India and in Consulting activities
Strong TS funnel led by sizeable deals (10-50M€)
Financial sector back in growth mode
• Strong traction with significant spending increase, notably in North America
• Offshore hiring resumed in Q409 (950 recruits in Nov-Dec) and a growing interest from clients to experience offshore
Consulting clients not any more in full cost cutting mode, some hot offers:
• Lean with double-digit growth, Shared Services, Post Merger Integration, Technology Transformation
Some encouraging signs in North America
• A 1.13 book-to-bill ratio in Q4, +38.6% YoY bookings in system integration
• Some key Technology services deals won with the US Army and with the State of Nevada (tax management)
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2009 Full Year Financial results
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Tackling 2010 with Agile Resources Management
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Offshore penetration in 2010
Back to recruitments, continuing on industrialization
4.3%
23.4%
13.9%7.6%
60.2%
36.4%32.1%
6%
55%
67.8%
9.6%
18.2%
4.7%
55.8%
26.5%
55.9%
67.5%
27.9%
Consulting North
America
TS1 TS2 TS3 FIA Sogeti Outsourcing Total
Group Dec 09 Dec10
Net Recruits / Leavers
284603
993
-1 000
0
1 000
2 000
Oct Nov Dec
Recruits
Leavers
Net
Net hiring resumed as of Q4 09,
early 2010 showing same trend
• 650 recruits onshore,
1.000 offshore in January 2010 only
Continuing to strengthen
offshore strategy in all units
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2009 Full Year Financial results
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Our Top Priorities to Win
the Profitable Growth Battle
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Run of our ‘business as Unusual’ program launchedin Nov 09
Focus on five global service lines to address high-growth market segments
Reengineer our delivery using Lean methods
1Continue to improve our resilience by leveraging Outsourcing
2
3Invest in new growth levers
Ready for acquisitions
New clients’ needs, convergence of technology innovation and offer development (pay-per-use contracts…)
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2009 Full Year Financial results
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A Strong Outsourcing Business
at the Heart of the Group
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led by stronger offshore leveragewith increasing profitability…
Operating Margin
3,1%
4,7%
5,4%
2%
4%
6%
2006 2007 2008
A dynamic business, already bringing more than 36% of the Group revenue
YE 2007 YE 2008 YE 2009
55%48%
41%
7,2%
2009
Good signing and renewals in Q4 09 and early 2010
• In the UK: Environment Agency (with TS), House of Fraser,
• In North America: Smith and Nephew, Warner Bros, Ontario Power Generation (5 years renewal)
• In France: Renault
• In the Netherlands: Dutch Ministry of Agriculture, Telfort, Maxeda
BPO dynamism with 2009 deals transitions (e.g. Bunge, Syngenta) and ramp-up of 2010 signed deals,
Kraft contract signed in North America
Largely offsetting mega deals decrease
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2009 Full Year Financial results
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Top Line Push with High Sales Force
Mobilization on our 5 Global Service Lines
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Business Information Management Gaining insights from information stored in business applications by
helping the enterprises to retain, organize and analyze their data
Application Lifecycle Services Complete approach to running, managing and developing applications in
a cost-effective manner
Testing Services Proven approach to highly industrialized software testing and quality
assurance, maximizing the IT systems ROI
Smart Energy Services Provide utility companies with more intelligent and efficient generation,
transmission and distribution capabilities
Infostructure Transformation Services 4 cloud solutions to redesign and realign an organization’s core
information
• Data center Optimization; Virtualization; Cloud Computing and Services; and Unified Communications
Oct 09
Dec 09
Feb
March
March
Dynamic go-to-market plans and specific push to strategic accounts
Launch dates
Win at KPN in the Netherlands
Nearly 20% BIM offshore headcount growth in Q1 2010
Win at Bouygues Telecom, an Outsourcing deal in France
Win at Fortum in Sweden
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2009 Full Year Financial results
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Going further on Delivery Management
for Increased Competitiveness
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6 ERP and ALS pilot projects launched since Q4 2009
Early results bringing up significant cost reduction potential
• Increased offshore leverage
• Streamlined issue management
• Advanced application performance monitoring techniques to predict
and correct application performance issues
• Application of standard tools in reporting and controlling
• Improved project governance bringing client intimacy, particularly in work
planning and prioritization
Immediate implementation from Q2 2010
• Implementation acceleration over the year and for 2011
• Development of a Lean ambassadors community in the field
Target: secure the double-digit margin ambition
Delivery methods
reengineered with
Lean principles
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Preparing Next Growth Steps Leveraging
the Market Appetite for Technologies
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Improving our business expertise and reinforcing our solution portfolio• Global procurement service offering, including software-as-a-service purchasing technology,
thanks to the recent IBX acquisition
Reinforcing our presence in strategic geographies• North America
• Emerging markets
‘Managed services’, answering growing client needs for flexibility and move from Capex to Opex, with greater proportion of pay-per-use/ per transaction contracts
Further sector specific initiatives to leverage our sector expertise and go-to-market • e.g. in the Financial sector or cloud-government services (government-in-a-box, eBorders,
BIM services around public security, Citizen Service Platform)
Selective
acquisitions
Offer
development
Innovation and Industrialization will be key drivers
once confidence is back
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Capgemini Has Already Positioned
its Profitable Growth Model
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SHAPE
InnovationIndustrialization
Growth
LEAD
Application Life cycle Services
Testing Services
ITS Cloud
Managed Services
Business Information Management
Smart Energy Services
From IT… …to business technology
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2010 Outlook
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Revenues: - 2 to - 4 % like for like
Operating margin: 6.0 to 6.5 %
Dividend: € 0.80 per share
-
Back Up
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2 185 2 189
2 098
2 2382 205
2 171
1 946
2 049
1 700
1 900
2 100
2 300
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09
Q1 2008 Q2 2008 H1 2008 Q3 2008 Q4 2008 H2 2008 FY 2008 Q1 2009 Q2 2009 H1 2009 Q3 2009 Q4 2009 H2 2009 FY 2009
In M€ (Published) 2 185 2 189 4 374 2 098 2 238 4 336 8 710 2 205 2 171 4 376 1 946 2 049 3 995 8 371
Sequential Current Growth 0.2% -4.1% 6.6% -1.5% -1.5% 0.9% -10.4% 5.3% -8.7% -3.9%
Sequential Organic Growth 2.1% -4.8% 6.2% -3.2% -1.7% -1.1% -10.1% 6.6% -7.9% -5.5%
Year-on-Year Current Growth 0.9% -0.8% 0.1% -7.3% -8.4% -7.9% -3.9%
Year-on-Year Organic Growth 0.0% -3.7% -1.8% -9.1% -8.7% -8.9% -5.5%
(in M€)
Revenues Quarterly Evolution
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Current Current Organic
Q4 2008 Q3 2009 Q4 2009
SequentialYear on
yearSequential
Year on year
(in M€) Q4 09 / Q3 09Q4 09 / Q4
08Q4 09 / Q3 09
Q4 09 / Q4 08
North America 455 388 366 -5.5% -19.4% -2.8% -10.8%
Europe, Asia & Latin America
of which :
1 783 1 558 1 683 8.0% -5.6% 8.9% -8.3%
France 540 431 509 18.0% -5.7% 17.3% -5.7%
UK & Ireland 452 450 431 -4.3% -4.7% -0.3% 3.1%
Benelux 345 325 338 4.1% -2.0% 4.1% -20.4%
Germany & Central Europe
150 124 130 4.6% -13.5% 4.6% -15.4%
Nordic countries 143 98 128 30.3% -10.4% 29.8% -10.8%
Southern Europe & Latin America
116 99 111 13.2% -3.9% 13.0% -3.9%
Asia Pacific 37 31 36 15.2% -3.4% 9.0% -8.9%
TOTAL 2 238 1 946 2 049 5.3% -8.4% 6.6% -8.7%
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Current Current Organic
H2 2008 H1 2009 H2 2009
SequentialYear on
yearSequential
Year on year
(in M€) H2 09 / H1 09H2 09 /
H2 08H2 09 / H1 09
H2 09 /
H2 08
North America 857 836 754 - 9.8% - 12.0% - 3.4% - 9.1%
Europe, Asia & Latin America
of which :
3 479 3 540 3 241 - 8.4% - 6.8% - 8.9% - 8.8%
France 1 020 1 009 940 - 6.8% - 7.9% - 6.9% - 7.7%
UK & Ireland 934 972 880 - 9.4% - 5.7% - 10.0% 2.3%
Benelux 671 734 663 - 9.7% - 1.1% - 9.7% - 19.5%
Germany & Central Europe 301 277 254 -8.1% - 15.4% - 8.4% - 16.5%
Nordic countries 269 262 226 - 13.8% - 16.0% - 16.8% - 14.0%
Southern Europe & Latin America
219 223 211 - 6.0% - 4.0% - 6.1% - 3.6%
Asia Pacific 65 63 67 7.4% 2.3% 5.5% - 1.8%
TOTAL 4 336 4 376 3 995 - 8.7% - 7.9% - 7.9% - 8.9%
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Current Current Organic
(in M€) FY 2008 FY 2009 FY 2009 / FY 2008
North America 1 668 1 590 -4.7% - 8.5%
Europe, Asia & Latin America
of which :
7 042 6 781 - 3.7% - 4.7%
France 2 077 1 949 - 6.1% - 6.1%
UK & Ireland 1 922 1 852 -3.6% 7.5%
Benelux 1 303 1 397 7.3% - 12.9%
Germany & Central Europe 592 531 - 10.3% - 11.0%
Nordic countries 578 488 - 15.7% - 9.9%
Southern Europe & Latin America
449 434 - 3.3% - 3.6%
Asia Pacific 121 130 6.7% 4.4%
TOTAL 8 710 8 371 - 3.9% - 5.5%
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2009 Revenues by Geography
5.8%16.7%
6.3%22.1%
19.0%
23.3%
1.6%
5.2%
6.1%18.1%
6.7%
19.5%
19.7%
23.4%
1.4%
5.1%
At constant rates and perimeter
Benelux
North
America
UK
& Ireland
Nordic
Countries
Germany
& Central
Europe
France
Southern
Europe
& Latin
America
Asia
Pacific
Benelux
North
America
UK
& Ireland
Nordic
Countries
Germany
& Central
Europe
France
Southern
Europe
& Latin
America
Asia
Pacific
FY 2008
FY 2009
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17.5%7.4%
40.8%34.3%
At constant rates and perimeter
16.9%6.7%
40.0%36.4%
Consulting
Services
Technology
Services
Outsourcing
Services
Local Professional
Services
Consulting
Services
Technology
Services
Outsourcing
Services
Local Professional
Services
2009 Revenues by Discipline
FY 2008
FY 2009
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13.0%
6.9%
28.1%
8.0%
27.5%
16.5%
At constant rates & perimeter
Energy, Utilities &
Chemicals
Financial
Services
Other
Public Sector
Telecom, Media &
Entertainment
Manufacturing, Retail &
Distribution
2009 Revenues by Sector
13.5%
6.9%24.3%
9.5%
27.6%
18.2%
Energy, Utilities &
Chemicals
Financial
Services
Other
Public Sector
Telecom, Media &
Entertainment
Manufacturing, Retail &
Distribution
FY 2008
FY 2009
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June 08 Dec. 08 June 09 Dec. 09Dec. 09 /
Dec. 08
Dec. 09 /
June 09
Consulting Services 4 924 4 407 4 190 3 918 - 11.1% - 6.5%
Technology Services 37 970 40 340 38 344 39 555 - 1.9% 3.2%
Outsourcing Services 24 229 26 397 27 383 28 184 6.8% 2.9%
Local Professional Services 19 737 20 216 19 300 18 628 - 7.9% - 3.5%
TOTAL GROUP * 86 487 91 621 89 453 90 516 - 1.2% 1.2%
* including not classified Headcount
Evolution of Headcount by Discipline
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Headcount by GeographyNORTH AMERICA :
• Opening: 8,379
• Closing: 8,100
• Change in Person: - 279
• Change in %: - 3.3 %
UK & IRELAND :
• Opening: 7 985
• Closing: 7 844
• Change in Person: - 141
• Change in %: -1,8 %
ITALY :
• Opening: 1 462
• Closing: 1 510
• Change in Person: + 48
• Change in %: + 3,3%
IBERIA & Latin America:
• Opening: 6 451
• Closing: 6 604
• Change in Person: + 153
• Change in %: +2,4%
FRANCE :
• Opening: 21 392
• Closing: 20 032
• Change in Person: - 1 360
• Change in %: - 6,4%
BENELUX :
• Opening: 12 291
• Closing: 11 163
• Change in Person: - 1 128
• Change in %: - 9,2%
ASIA PACIFIC :
• Opening: 22 078
• Closing: 24 008
• Change in Person: + 1 930
• Change in %: + 8,7 %
CENTRAL EUROPE :
• Opening: 7 534
• Closing: 7 724
• Change in Person: + 190
• Change in %: + 2,5 %
NORDIC :
• Opening: 4,049
• Closing: 4,008
• Change in Person: - 41
• Change in %: - 1.0 %
TOTAL GROUP:
Opening: 91 621 Closing: 90 516 D in P: - 1 105 D in %: - 1,2 %
NORTH AMERICA :
• Opening: 8 379
• Closing: 7 950
• Change in Person: - 429
• Change in %: - 5,1 %
NORDIC :
• Opening: 4 049
• Closing: 3 681
• Change in Person: -368
• Change in %: - 9,1 %
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0 FY 2008 H1 2009 H2 2009 FY 2009
(in M€) RevenuesOp.
Margin% Revenues
Op.
Margin% Revenues
Op.
Margin% Revenues
Op.
Margin%
North America 1 668 91 5.5% 836 44 5.3% 754 33 4.4% 1 590 77 4.9%
France 2 077 148 7.1% 1 009 49 4.9% 940 72 7.7% 1 949 121 6.2%
UK & Ireland 1 922 164 8.5% 972 79 8.2% 880 86 9.8% 1 852 165 8.9%
Benelux 1 303 183 14.0% 734 56 7.6% 663 66 10.0% 1 397 122 8.7%
Germany & Central Europe
592 82 13.9% 277 31 11.1% 254 20 7.9% 531 51 9.7%
Nordic countries 578 55 9.5% 262 20 7.5% 226 15 6.6% 488 35 7.3%
Southern Europe & Latin America
449 23 5.2% 223 7 3.1% 211 3 1.4% 434 10 2.3%
Asia Pacific 121 56 N/A 63 30 N/A 67 39 N/A 130 69 N/A
Not allocated (1) - 58 - 29 - 26 - 55
TOTAL 8 710 744 8.5% 4 376 287 6.6% 3 995 308 7.7% 8 371 595 7.1%
(1) Items not allocated correspond to headquarters’ expenses
At current rates and perimeter
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Operating Margin Analysis
by Destination
(in M€) FY 2008 H1 2009 H2 2009 FY 2009
Revenues 8 710 4 376 3 995 8 371
Cost of services rendered - 6 478 - 3 345 - 3 021 - 6 366
% of Revenues 74.4% 76.4% 75.6% 76.1%
Gross Margin 2 232 1 031 974 2 005
% of Revenues 25.6% 23.6% 24.4% 24.0%
Selling Expenses - 632 - 338 - 291 - 629
% of Revenues 7.3% 7.7% 7.3% 7.5%
General & Administrative Expenses - 856 - 406 - 375 - 781
% of Revenues 9.8% 9.3% 9.4% 9.3%
Operating Margin 744 287 308 595
% of Revenues 8.5% 6.6% 7.7% 7.1%
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(in M€) FY 2008 H1 2009 H2 2009 FY 2009
Restructuring costs
Of which :(103) (102) (111) (213)
People (68) (80) (71) (151)
Transition to Offshore (14) (4) (6) (10)
Buildings (21) (18) (34) (52)
Integration costs (7) (5) (11) (16)
Impairment of goodwill (18) - (12) (12)
Expenses related to stock options, performance shares and @ESOP
(22) (9) (10) (19)
Other operating income 20 - 7 7
Other operating expenses (28) (4) (5) (9)
Total other operating income and expense (158) (120) (142) (262)
Other Operating Income and Expense
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(in M€) FY 2008 FY 2009
Interest on convertible bonds (46) (56)
Other interest expenses (20) (9)
Income from cash and cash equivalents 68 22
Net finance costs 2 (43)
Other financial income 86 75
Other financial expense (107) (125)
Net finance expense (19) (93)
Net Finance Expense
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(in M€) FY 2008 FY 2009
Current income tax (87) (24)
Tax payable on profit (69) (37)
Tax not based on taxable income (15) (16)
Adjustments on previous periods (3) 29
Deferred income tax (29) (37)
Tax losses
• Net utilization of deferred tax assets on tax losses (69) (61)
France (55) (46)
Other regions (14) (15)
• Net reassessment of deferred tax assets on tax losses 65 5
France 45 -
Other regions 20 5
Temporary differences and change in tax rates (25) 19
TOTAL INCOME TAX EXPENSE (116) (61)
Effective tax rate 20.5% 25.5%
Income Tax Expense
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(In M€) FY 2008 H1 2009 H2 2009 FY 2009
Profit for the periodImpairment of goodwillDepreciation, amortization and impairment of fixed assetsNet charges to provisionsGains and losses on disposals of assetsNet finance costsIncome tax expenseOther non-cash items
45124
213(62)
3(2)
1165
780
83(13)
3155026
1001281
(41)1
281111
17812
164(54)
4436137
Cash flows from operations before finance costs, net and income taxIncome tax paidChange in restructuring debtChanges in operating working capital
748
(94)(14)(92)
242
(52)13
(303)
203
(4)16
380
445
(56)2977
Operating cash flowsCapital expenditure (net of proceeds)Net investmentsProceeds from issue of share capitalDividends paidNet proceeds/payments relating to treasury shares transactionsConvertible bonds through equityTranslation, perimeter changes & other
548(157)(283)
10(143)
(75)0
(15)
(100)(82)
(6)13
(143)3
5958
595(55)
(7)212
050
(57)
495(137)
(13)225
(143)8
591
Change in net cash and cash equivalents (115) (198) 693 495
Opening net cash and cash equivalents 889 774 576 774
Closing net cash and cash equivalents 774 576 1 269 1 269
Net Cash Evolution
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(in M€)
Total equity as of January 1, 2009 3 939
Dividends paid out for 2008 (143)
Valuation of stock options, @ESOP shares and performance shares grants 19
Treasury shares 7
Increase in capital upon exercice of stock options 52
Increase in capital related to @ESOP 164
Increase in capital related to BSAAR 9
OCEANEs 2003 & 2009 equity components (net of deferred tax) 39
Income and expenses recognized directly in Equityof which :
Actuarial gains & losses on defined benefit plansRemeasurement of hedging derivativesDeferred tax related to items recognized in equityExchange differences on translating foreign operations
(51)
(159)293742
Profit for the period 178
Total equity as of Dec 31, 2009 4 213
Equity
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FY 2009
FY 2008(in M€)
Intangible assets
Property, plant &
equipmentTotal
December 31, n-1 140 422 562 613
Acquisitions 26 139 165 177
Disposals (1) (27) (28) (23)
Amortization / Depreciation for the period
(43) (121) (164) (213)
Perimeter changes 1 - 1 38
Other movements & translation adjustments
(7) 8 1 (30)
December 31, n 116 421 537 562
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Commitments given
• Non cancealable leases (mainly offices, vehicles, computers) € 865M
• Other commitments:
• Other commitments € 53M
• Covenants on OCEANE bonds and syndicated credit facilities Compliant
• Limited financial guarantees granted to customers € 266M
• Bank guarantees granted to customers € 57M
• Parent performance and/or financial guarantees provided in various large clients contracts
Off Balance Sheet Commitments as of December 31, 2009 :
Off Balance Sheet Commitments
-
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