luc-françois salvador, ceo sogeti · map drives strong results for outsourcing services support...
TRANSCRIPT
Cheuvreux IT & Technology ConferenceParis, March 9 2007
Luc-François Salvador, CEO Sogeti
1
2006 Annual Results
In 2006, Capgemini has recorded very solid progress
PrioritiesPriorities executedexecuted
DoublingDoubling operating operating marginmargin and net and net resultresult
OptimizedOptimized costcost structure and structure and deliverydelivery
Double digit Double digit growthgrowth for for ourour 4 disciplines4 disciplines
+ 12,1 %TOTAL GROUP
+ 12,6%Outsourcing Services*+ 10,4 %SOGETI+ 12,8 %Technology Services+ 10,3 %Consulting Services
FY 06 / FY 05
+ 2,6 ptOperating Margin
- 1,2 ptGeneral and Administrative Expenses
- 1 ptSelling Expenses
- 0,4 ptCost of services rendered
FOCUS ON ADDING VALUE TO CLIENTS
IMPLEMENT MAP INITIATIVE
CONFIRM NORTH AMERICAN TURNAROUND11
22
33
x2
InM€
2005 2006
Operating Margin Net Result
225(3,2%)
447(5,8%)
141293
Dividend : + 40 %* Revenue CS/TS related to Mega deals (HMRC, Schneider & TXU) reclassified in CS/TS
2
2006 Annual Results
Ready for new heights in North America
SOGETI
Double digit growth (+10,6%) and operating margin (13,3%)Successfully launched testing businessFootprint expanded with the acquisition of Software Architects
Outsourcing Services
Successful execution of GM and TXU contractsEarly benefits of MAP recorded
Consulting and Technology Services
Successful deployment of our sector/offerings focused strategy : FSI, Retail, TME, Automotive, SAPOperational efficiency : Overruns decrease by 30%Offshore development : 30% of TS hours performed in India
Revenues
TOTAL US + 3,8 %
+ 2,1 %
+ 5,4 %
FY 06 / FY 05
+ 7,3 pt5,4%
+ 5,2 pt2,8 %
+ 9,2pt7,7 %
FY 06 / FY 05FY 06Operating Margin
Outsourcing Services
Project and Consulting
Q406/Q405 Revenues +10,2 %
Q406/Q405 Bookings+15,2 %
P&C FY06 Book to Bill1,17
3
2006 Annual Results
Mid term margin impact
MAP drives strong results for Outsourcing Services
1-1,5 ptSupport functions1,5-2 ptRightshore1-1,5 ptIndustrialization1-1,5 ptProcurement0,5 ptRenegociation
Operating Margin
+ 3,1% (+3 pt)
Revenue Growth
+ 16,1%Strong Financial Records
Good execution of major new contracts
Strong BPO Growth
Cost reduction
Status
Achieved 2006Achieved 2006
On trackVisibility 2007Visibility 2007
Revenues Europe & Asia : + 47 %Revenues US : +2,9 %Workforce : 4500
86 % offshore4 Hubs, 8 satellites
Toronto
Dallas
KatowiceKrakow
Bangalore
Guangzhou Hong Kong
Adelaide
Kolkata
Mumbai
Toronto
Dallas
KatowiceKrakow
Bangalore
Guangzhou Hong Kong
Adelaide
Kolkata
Mumbai
4
2006 Annual Results
Architecture ServicesTS Bookings 2005
2622 M€TS Bookings 2006
2919 M€
TestingSogeti Revenues 2005
1108 M€Sogeti Revenues 2006
1222 M€
Recruitment
18 592 new Hires
1 210 new colleagues integrated through OS
Headcount : 67 889 (+11,2%)
Training
24 training hours per FTE delivered (+37%)
4650 people trained leading to certification (SOA, project management…)
35 000 training days in India
7000 people trained at Capgemini University
Investing in innovation and competencies
Innovation Competencies
+40%
188 M€
+39%114 M€
Share of Architecture Services in TS bookings
Share of Testing in Sogeti revenues
IM Command Centers
580100
2005 2006
IMCC Heacount in Poland & India
5
2006 Annual Results
Sector Innovation Portfolio Management
Financial Services and Insurance
Telecom, Media and Entertainment
Energy and Utilities
Public Services
Manufacturing, Retailand Distribution
Loans and MortgageKanbay domain expertise
Digital Media Telco in a box
Smart Metering
Tax SystemsSecurity
Future Value chainShared ServicesAutomotive
Improving cross-discipline andcross-country business.
Bookings 20056776 M€
Bookings 20068198 M€
Strengthening relations with ourTop 30 clients
5 country boards2 New European Business UnitsNew organization for consulting
Developing our sector approach and aligning organizations to improve portfolio management
HMRCHomeland
Share of bookings at our 30 top clients CS/TS/OS
1652 M€ 3260 M€
6
2006 Annual Results
A tier-one player regarding offshore capabilities
People
Sales
Recruitment focused on top talent = 1 hired every 8 interviews53% of people recruited coming from indian tier-I & II companies, 22% from referrals
Delivering large and complex projects : over 1600 people working for the 8 biggest projectsReduction of the rate card, according to skills
75 % growth in the number of clients vs 2005346 engagements serviced in 2006
Delivery
1570750Poland470400China
69803550India
Headcount 2006Headcount 2005Country
5552719
KanbayIndigo
+92% 19%
27%
Offshore/ total headcount
Offshore/ TS+OS headcount
Total offshoreheadcount 15 291
7
2006 Annual Results
Our 2007 priorities : Going one step beyond
Fight For Leadership Keep Transforming
NORTH AMERICA : Join top 3 in selected domain areas
BPO : Extend footprint beyond F&A
FINANCIAL SERVICES :
Consolidate tier-one status leveragingKanbay
KANBAY : Drive successful integration
I3 : Accelerate the Group positive momentum
CONSULTING SERVICES : Roll out a renewed ambition
SogetiLocal Professional Services
9
2006 Annual Results
Geographical presence
− Revenues 2006 € 1.3 billion− A workforce of over 16,000 staff spread over 200 locations.− 2006 : opening of new geographies (Ireland, Denmark, UK).
U.S. (13.1%)
France (52%)
Spain (4%)
Sweden(5.9%)
Benelux (7.1%) Germany (0.4%)
Switzerland (0.6%)
Netherlands (16.9%)
10
2006 Annual Results
Three business lines
High Tech Consulting
Engineering R&D Embedded softwareScientific calculationEngineering sciences
*Figures at 31/12/06
Application Services
Audit, Consulting, Project ManagementSoftware DevelopmentTesting, ERPApplication Management
Infrastructure Services
Audit, Consulting, Project ManagementInsourcingSecurityRolloutHelp Desk
15%
33%
52 %
AS IS
HTC
11
2006 Annual Results
Breakdown by sector
Sogeti Group revenues 2006 : € 1.3 billion.
35%26%
9%
12%
17%
Industry
ServicesTelecom
Bank & Insurance
Public & Utilities
12
2006 Annual Results
Top 10 Clients : 25% of revenues.
ALCATEL
BNP PARIBAS
CEGETEL
EADS
EDF
FRANCE TELECOM
GDF
ING BANK
PSA
RENAULT
SAFRAN
13
2006 Annual Results
An organisation on a human scale
− Flexibility and rapid adaptation to the market,− Entrepreneurial spirit,− 200 locations worldwide,
Business Unit
14
2006 Annual Results
Sogeti Business lines
15
2006 Annual Results
Applications Services
Mission Statement : assist our clients with the mastery and evolution of their information system; advise them on their strategies for developing and architecting their applications assets.
Activity :
− Consulting− Architecture− Development− Security− Migration
Software control & testingIntegration and maintenance Software development toolsEAI, Web servicesDatabases
• Strong growth on Testing : +34% in 2007 (150M€)
16
2006 Annual Results
Infrastructure Services
Mission Statement : deliver all IT services related to Infrastructure (servers, workstations and networks) and Operations (IT production, administration, technical support, and integration in production).
Activity :
− Consulting in technology and organization− Architecture− Security− Migration− Integration & management of operations− Systems management
17
2006 Annual Results
High Tech
Mission statement : provide high added value to our clients’ industrial and strategic projects, from R&D to implementation.
Activity :
−Business Engineering
−Research & Development
−Engineering, Scientific & Technical IS−Embedded Software−Process Control & Automation−Simulators & Real-Time Systems
Cheuvreux IT & Technology ConferenceParis, March 9 2007
Luc-François Salvador, CEO Sogeti