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Capgemini — Q3 2006 Earnings Presentation

27 slides from Capgemini's earnings presentation, Nov 9, 2006

  1. Slide 1: Third Quarter 2006 Revenues

    Third Quarter 2006 Revenues Paris, November 9, 2006

  2. Slide 2: Revenue evolution by quarter

    Revenue evolution by quarter Revenue quarterly evolution in M€ 2000 1915 1869 1881 1808 1800 1764 1708 1674 1600 1400 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q1 2005 Q2 2005 H1 2005 Q3 2005 Q4 2005 H2 2005 FY 2005 Q1 2006 Q2 2006 H1 2006 Q3 2006 Amount in M€ (Published) 1 708 1 764 3 472 1 674 1 8

  3. Slide 3: Discipline view

    Discipline view Revenue CS/TS related to mega deals recorded in Q3 06 / Q2 06 Q3 06 / Q3 05 Outsourcing Consulting Services - 6.9% 5.3% Technology Services - 4.8% 11.4% CS / TS - 5.3% 9.9% Professional Services - 3.1% 8.4% Project & Consulting - 4.8% 9.4% Outsourcing Services 2.6% 20.0% TOTAL GROUP

  4. Slide 4: Revenue by discipline

    Revenue by discipline Q3 2005 Consulting Professional Services Services 11.3% 15.9% Technology Services 33.8% Professional Consulting Services Services Outsourcing Services 15.2% 10.4% 39.0% Technology Services 33.2% Outsourcing At constant rates and perimeter Services Q3 2006 41.2% 2006 Third Quart

  5. Slide 5: Revenue evolution – Current & organic growth by geography

    Revenue evolution – Current & organic growth by geography Current Organic Current Sequential Year on Year Sequential Year on Year M€ Q3 2005 Q2 2006 Q3 2006 Q3 06 / Q2 06 Q3 06 / Q3 05 Q3 06 / Q2 06 Q3 06 / Q3 05 North America 332 334 338 1.3% 1.8% 2.7% 5.4% Europe & Asia 1 342 1 581 1 543 - 2.4% 15

  6. Slide 6: Revenue by geography

    Revenue by geography Q3 2005 Asia South Pacific Europe 1.0% North 4.2% America 19.3% Asia France South Pacific 23.7% Uk & Europe 1.1% North Ireland America 4.1% 25.8% 18.0% Central France Europe 22.5% 6.9% UK Benelux & Ireland Nordic 13.8% Countries 29.4% 5.3% Central Europe 6.7% Benelux Nordic At c

  7. Slide 7: Booking evolution including mega deals

    Booking evolution including mega deals 4 500 M€ 4 038 Outsourcing 4 000 Project & Consulting 3 198 3 500 2 860 2 990 3 000 2 391 2 500 1 943 1 705 1 716 2 000 1 760 1 523 1 562 1 396 1 273 1 117 1 213 329 1 500 490 277 406 484 1 000 284 320 500 1 078 1 178 929 1 255 1 119 1 226 953 1 274 1 230 1 376

  8. Slide 8: Project & Consulting : Bookings in key countries

    Project & Consulting : Bookings in key countries Q3 2006 Year on Year NORTH AMERICA Consulting Services / Technology Services 177 9.5% Local Professional Services 35 24.0% UK & IRELAND Consulting Services / Technology Services 109 15.4% NETHERLANDS Consulting Services / Technology Services 125 13.0%

  9. Slide 9: Book to bill ratios Project & Consulting – Q3

    Book to bill ratios Project & Consulting – Q3 Q3 2006 Bookings Revenue BBR North America 212 180 1.18 Rest of the World 905 930 0.97 TOTAL 1 117 1 110 1.01 At budget rates 2006 Third Quarter Revenues 8

  10. Slide 10: September 2006 Results – Group headcount by geography

    September 2006 Results – Group headcount by geography NORTH AMERICA GEO: TOTAL GROUP: NORDIC GEO: • Opening: 6,351 Opening: 61,036 Closing: 65,438 Δ in P: +4,402 Δ in %: +7.2% • Opening: 3,429 • Closing: 6,275 • Closing: 3,530 • Change in Person: -76 • Change in Person: +101 • Change in %: -1,2% • C

  11. Slide 11: KPIs by Discipline – ARVE evolution by quarter

    KPIs by Discipline – ARVE evolution by quarter Consulting Services Technology Services Professional Services 90 86 86 86 85 86 85 85 79 80 80 80 78 79 79 79 69 70 67 66 66 66 65 62 60 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2005 2006 2005 2006 2005 2006 At constant rates an

  12. Slide 12: KPIs by discipline – COR evolution by quarter

    KPIs by discipline – COR evolution by quarter Consulting Services Technology Services Professional Services 1500 1255 1257 1201 1205 1222 1200 1200 1188 900 636 622 623 631 621 616 615 600 422 435 439 410 415 418 419 300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2005 2006 2005 2

  13. Slide 13: KPIs by discipline – COR evolution by quarter

    KPIs by discipline – COR evolution by quarter Consulting Services Technology Services Professional Services 1500 1255 1257 1201 1205 1222 1200 1200 1188 900 662 673 663 677 682 661 652 600 422 435 439 410 415 418 419 300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2005 2006 2005 2

  14. Slide 14: Global Outsourcing MAP Update

    Global Outsourcing MAP Update

  15. Slide 15: Agenda

    Agenda 1. MAP Program – A Reminder 2. 2006 Progress Against Plan 3. Roadmap to the Future 2006 Third Quarter Revenues 14

  16. Slide 16: MAP was announced as a top Group priority in Nov ’05

    MAP was announced as a top Group priority in Nov ’05 Significant Growth of OS, as % Capgemini Revenues From 22% in 2001 to 38% in 2005 Imbalanced Business Mix Portfolio heavy in lower margin IM; sales growth fuelled by mega-deals Business Return to be Improved OS Operating Margin at -1.2% in H1’05 “

  17. Slide 17: The levers identified will help OS achieve 8% Divisional Margin

    The levers identified will help OS achieve 8% Divisional Margin Business Mix ƒ Value-added offerings with industry focus Mid-term Mid-term ƒ Increased proportion of high-margin Levers Levers Divisional Divisional services Margin Margin Impact Impact ƒ Optimal mix of deal size Business Business Mix M

  18. Slide 18: Guidance for 2006 was clear

    Guidance for 2006 was clear Objectives ƒ 4% Divisional Margin for full year (c. 2.6% OM) ƒ 5% Divisional Margin for second half (c. 3.4% OM) Restructuring ƒ €70m ƒ 90 / 95% Cash ƒ 15 month payback 2006 Third Quarter Revenues 17

  19. Slide 19: Agenda

    Agenda 1. MAP Program – A Reminder 2. 2006 Progress Against Plan 3. Roadmap to the Future 2006 Third Quarter Revenues 18

  20. Slide 20: Zoom on OS profitability

    Zoom on OS profitability (at divisional margin level) H1 05 H2 05 H1 06 FY 06 ƒ Excluding Schneider 0.6% 5.6% 6.0% ≤ 7.0% ƒ Including Schneider -0.2% 2.7% 3.3% ≃ 4.0% Strong margin improvement excluding Schneider Schneider still a significant drag on profitability 2006 Third Quarter Revenues 19

  21. Slide 21: Restructuring

    Restructuring ƒ €70m On track ƒ 90 / 95% Cash 75 / 80% Cash ƒ 15 month payback 15 to 16 2006 Third Quarter Revenues 20

  22. Slide 22: 2006 MAP initiatives have succeeded in getting us over half of the way

    2006 MAP initiatives have succeeded in getting us over half of the way in our three year journey to 8% Divisional Margin Mid-term Mid-term Levers Levers Divisional Divisional Margin Margin Impact Impact ƒ Acquisition of majority stake in Indigo, Unilever’s F&A platform in India Business Business Mix

  23. Slide 23: 62% Rightshore growth. Onshore to Offshore ratio from 5.0 to 3.2: 1

    62% Rightshore growth. Onshore to Offshore ratio from 5.0 to 3.2: 1 18000 +24% +66% 4 262 FTE’s 16000 +72% 214000 626 FTE’s 12000 +3% 10000 January 06 December 06 est. Onshore India Poland China/Spain/Aus. 2006 Third Quarter Revenues 22

  24. Slide 24: Agenda

    Agenda 1. MAP Program – A Reminder 2. 2006 Progress Against Plan 3. Roadmap to the Future 2006 Third Quarter Revenues 23

  25. Slide 25: We successfully completed year one of a three year plan to industrialize our operations

    We successfully completed year one of a three year plan to industrialize our operations 2006 2007 2008 2009 Organized convergence & Tactical adjustments Some sites already (strategic sites & tactical sites) Site closed rationalization Strategic sites identified 10 centre 5 centre Convergence plan cl

  26. Slide 26: Guidance for 2007

    Guidance for 2007 Objectives ƒ > 7.5% full year Divisional Margin (approximately 5.5% Operating Margin) excluding Schneider ƒ 5 - 5.5% full year Divisional Margin including Schneider Restructuring ƒ € 35 m ƒ 90%-95% Cash ƒ 20 month payback 2006 Third Quarter Revenues 25

  27. Slide 27: Third Quarter 2006 Revenues

    Third Quarter 2006 Revenues Paris, November 9, 2006

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