xi th european seminar – exanebnp paribas...kolkata 22% of group employees in india 17,000 +...

Together. Free your energies

XIth European Seminar – Exane BNP Paribas

Paul Hermelin, CEO

12 June 2009

Together. Free your energiesXIth European Seminar – Exane BNP Paribas

© 2009 Capgemini. All rights reserved 2

-3.2%

-0.1%

-4.8%

-1.6%

-5.9%

-6.7%

Q1 09 / Q4 08

Sequential Year on year

-0.3%TOTAL GROUP

1.1%Outsourcing Services

-1.0%CS / TS / LPS

-0.7%Local Professional Services

0.4%Technology Services

-9.8%Consulting Services

Q1 09 / Q1 08

At constant rates and perimeter

The slowdown was confirmed in Q1

6.8%

34.6%

40.8%

17.8%

Consulting Services

Technology Services

Outsourcing Services

Local Professional

Services



-0.3%TOTAL

0.0%Rest of Europe, Asia & Latin America

-0.6%Benelux

7.0%UK & Ireland

-0.8%France & Morocco

-6.9%North America

Q1 09 / Q1 08

Year on year organic growth

Our balanced portfolio lowers volatility

20.7%

17.5%

23.8%

18.8%19.2%

Benelux

North America

UK & Ireland

France&

Morocco

Rest of Europe, Asia & Latam

13.2%

16.6%

6.1%

27.7%

28.1%

8.3%

Q1 2009

Energy & Utilities+0.3 vs. Q1 08*

Financial Services

-2.2 vs. Q1 08*

Other -0.7 vs. Q1 08*

Public Sector+4.0 vs. Q1 08*

Manufacturing,Retail &

Distribution+0.0 vs. Q1 08*

Telecom, Media & Entertainment-1.4 vs. Q1 08*

*: change in % vs Q1 2008 restated at constant scope and exchange rates



At constant rates & perimeter (BAS non included)

1 647

525

1 750

424

1 358

630

1 619

1 228

1 491

730

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09

Outsourcing

Consulting/Technology/LocalProfessional Services

M€

2 172

Bookings & Book-to-bill indicate a slowdown, not a collapse

2 1741 988

2 847

2 221

Consulting / Technology / Local Professional Servic es

1 491

1 166

325

Bookings

1 436

1 179

257

Revenues

1.04

0.99

1.26

Book-to-bill ratio

TOTAL (*)

Rest of the world

North America

M€


Focus on Rightshore®



India 20,700

Poland3,100

China1,000

Latin America1,000

Morocco200

� Serve over 700 clients from our rightshore centers

� 26,000 staff across India (20,700), Poland (3,100), China (1,000), Morocco (200), Latin America (1,000)

� Deep sector expertise in FS, TME, MRD, EUC, Public Sector

� Services include consulting, ERP, custom software, applications management, infrastructure management, and BPO

28% of headcount offshore, not only about low costs!

� Centers of excellence – Telecom, Retail/CRESENT, Payments, Claims, Utilities, SAP, Oracle, AM, BPO

� Innovation – new offers from rightshore e.g. HEAL, life sciences� Operating model providing cohesion with our market-facing teams



Continuing the evolution of our operating model

� Make our rightshore capabilities available to all clients – evolve from a dedicated approach to countries, disciplines, and sectors to increase transversal alignment across silos – targeting a combination of dedication and sharing at 50%

Country / Discipline / Sector

A

Current Model – Fully dedicated teams

Country / Discipline / Sector

B

Model with transversal alignment

Dedicated Layer50%

Shared Transversals

50%

Country / Discipline / Sector teams with combination of dedication and sharing



Multiple levers to increase margins

Junior staff60%

Junior staff70%

Junior staff75%

25%

75%

40%

60%

20%

80%

TS

AM

onshorerightshore

50%50%

Rightshore salesSales-support centers – CAMS, CIMS, TS win center, competitor intelligence centerRightshore sales teams – Account Development Executives (ADEs), directly managed accounts


Focus on Outsourcing



Business Solutions

Service Management

Business Process Outsourcing

Application Outsourcing

InfrastructureOutsourcing

Service Desk

� Finance and Accounting

� Procurement & Supply Chain

� Human Resources

� Financial Services

� Customer Care & Intelligence

� Knowledge Process Outsourcing

� Management Assurance Services

Governance

� Application Management

� Application Development

� Application Testing

� Application Hosting

� Application Portfolio Strategy

� Application Modernization

� Workplace Services

� Data Center Services

� Network Services

� Security Services

� Infrastructure Transformation

� Remote Infrastructure Management

(RIM)

BPO ITO Portfolio

An extensive service offering



� 24/7/365 Global Operations� Over 25,0000 offshore resources

PhilippinesPhilippines

WarsawWarsaw

Hong KongHong Kong

SingaporeSingapore

AtlantaAtlanta

MiamiMiami

TampaTampa

PhoenixPhoenixNew YorkNew York

BostonBoston

Washington, DCWashington, DC

BerlinBerlin

OsloOslo

DublinDublin

LondonLondon StockholmStockholm

EsperooEsperoo

RomaRoma

TorontoToronto

KrakowKrakowKansas CityKansas City

DallasDallasParis ViennaVienna

GuangzhouGuangzhouMadridMadrid

DDüüsseldosseldorfrf

Capgemini Office

Onshore Delivery Center

Offshore Delivery Center

Data Center

HoustonHouston

CupertinoCupertino

ClevelandCleveland

DetroitDetroit

Chennai

HyderabadIndiaPune

Mumbai

Bangalore

Kolkata

� 22% of Group employees in India� 17,000 + strong

Mexico Mexico CityCity

Buenos Buenos AiresAires

Sao PaoloSao Paolo

MoscowMoscow

CasablancaCasablanca

IrvingIrvingPalestinePalestine

WacoWacoSantiago Santiago

(Chile)(Chile)

IaIaşşii

MelbourneMelbourne

SydneySydney

AdelaideAdelaide

ZZüürichrich ShenghaiShenghai

And a global delivery network



Demand for Outsourcing is high

Major and significant wins

to celebrate

� Warner Bros (ITO&BPO)

� Coca Cola (BPO)

� Total (ITO)

� Telfort (ITO)

� Smithfield Packing Co (ITO)

� HMRC Chief (ITO)

� HMRC Contact Center (ITO)

� Avon (BPO)

� MOD DECS (ITO)

� NL Immigration (ITO)

Protecting client relationships

A very strong unweighted

pipeline of over €8bn

0

2 000

4 000

6 000

8 000

10 000

12 000

H1'05 H2'05 H1'06 H2'06 H1'07 H2'07 H1'08 H2'08 12/05/2009

Other

BPO

IM

AM

- OS unweighted pipeline (€m) -

Renewal New scope

% 24% 31% 45%

Last 12 month Bookings

Existing clientNew client



Differentiating factors help us win new business

Bundled value

propositions

� Stronger value propositions when CS business insights are combined with TS technology integration and OS industrialization expertise

� Examples: Smart Grid and Smart Metering in EUC, electronic submissions in LS, SAP Run Build Run in Retail

Stronger sector focus

CBE continues to be unique

and desired

� Collaborate with clients around choice and flexibility

� Proven speed to value through accelerators such as ASE, RDV, ITIL, CMMI

� Technology agnostic approach allows best choice for clients

MRD

EUC

LSTME

Americas

PS

MRD

EUC

FS

LSTMEOther

Europe

PS

HMRC

MRD

EUC

FS

TME

Other

BPO

0%

20%

40%

60%

80%

100%

20% 40% 60% 80% 100%

- 2009 revenue distribution -



A strong and resilient business model

Lean G&AGrowing BDCs

H105 H109

� Revenue +21%

� G&A: -11%

� BD Costs: +43%

Orderbook is strong

� Total order book is €8.8b, or 2.7 years of current revenue burn

� 89% of our ’09 revenues is firm

Strong offshoreleverage

0

5 000

10 000

15 000

20 000

25 000

H1'05 H2'05 H1'06 H2'06 H1'07 H2'07 H1'08 H2'08 H1'09 H2'09

BPO Off

ITO Off

BPO On

ITO On

- OS Headcount evolution -



New initiatives to support future growth

� Management and support of tens of thousands Google Apps users� Leveraging Secure Data Connector (SDC) and Java App Engine solution as a

platform for situational applicationsGoogle

Amazon

� Leveraging LEAP , a PDF/A (Archive) solution offered as a Software as a Service (SaaS) solution based on Amazon.com’s Web Service

� Developed series of offers around AWS, including a “cloud readiness”assessment to determine which client services can be moved to cloud services

Sun� Building on successful sales around Sun’s “SunRay ” thin-client technology,

included in our GreenIT approach

Intel

� Integrating vPro into our standard desktop offer to enable remote, cost efficient and effective administration capabilities

� Active in Intel’s recent server chip launch and working with Intel on standard virtualisation approaches based on new Nehalm processors

Others� Implementation of Self-Assessment solutions with Oracle� Sector solution customization with SAP� Application quality assessment (Cast )


Focus on Consulting



From client issues to proactive offers

Client Issues CC Global Offers

� Operational Path to profit

� From Strategy to Execution

� Customer experience transformation

� Sales force effectiveness

� BeLean TM� Strategic

sourcing � Shared

services� Cash

management

� Accelerated IT Rationalisation (AIR)

� Sustainable IT cost management

Strategy and Transformation

Operations Transformation

Technology Transformation

TECHNOVISIONRESTRUCTURING

Strategic restructuring

Cost reduction

Post Merger integration

Customer retention

Supply-chain optimisation

Offshoring

Global Practice Network Leveraging Technology(Enterprise Social Network, ASE 2.0 ..)



Priorities: Deliver 2009 Margin and Transform

21st Century Consultancy

‘As-Is’: New SBU

at Jan 2009

Build a brandBuild a brand

Geographic expansion

Geographic expansion

Sector RefocusSector

Refocus

Business models

Business models

Reduce Capacity

& Contain Cost

Reduce Capacity

& Contain Cost

Differentiate

Transform

Protect Margin

Sales warsSales wars

Key offer portfolioKey offer portfolio

Attract top talent

Attract top talent



Our CTO’s perspective

Internal External

People

Applications Computers

Web Services



Conclusion

� The environment is clearly tough but shows clear si gns of stabilization

� Offshore is a key asset to gain market share and im prove margins even though adoption remains progressive

� Outsourcing remains buoyant and perfectly plays its role of balancing the Group’s portfolio


XIth European Seminar – Exane BNP Paribas

Paul Hermelin, CEO

12 June 2009

xi th european seminar – exanebnp paribas...kolkata 22% of group employees in india 17,000 +...

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