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2006 Annual Results

2006 Annual Results. Paris, 15 February 2007. In 2006, Capgemini has recorded very solid progress. Double digit growth for our 4 disciplines. Doubling operating margin and net result. Operating Margin. Net Result. In M€. 447 (5,8%). x2. 293. 225 (3,2%). 141.

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2006 Annual Results

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  1. 2006 Annual Results Paris, 15 February 2007

  2. In 2006, Capgemini has recorded very solid progress Double digit growth for our 4 disciplines Doubling operating margin and net result Operating Margin Net Result In M€ 447 (5,8%) x2 293 225 (3,2%) 141 2005 2006 Dividend : + 40 % * Revenue CS/TS related to Mega deals (HMRC, Schneider & TXU)reclassified in CS/TS Priorities executed Optimized cost structure and delivery  1  2  3

  3. Ready for new heights in North America Q406/Q405 Revenues +10,2 % Revenues Q406/Q405 Bookings +15,2 % P&C FY06 Book to Bill 1,17 TOTAL US Consulting and Technology Services • Successful deployment of our sector/offerings focused strategy : FSI, Retail, TME, Automotive, SAP • Operational efficiency : Overruns decrease by 30% • Offshore development : 30% of TS hours performed in India Outsourcing Services • Successful execution of GM and TXU contracts • Early benefits of MAP recorded SOGETI • Double digit growth (+10,6%) and operating margin (13,3%) • Successfully launched testing business • Footprint expanded with the acquisition of Software Architects

  4. MAP drives strong results for Outsourcing Services Operating Margin Revenue Growth Strong Financial Records + 3,1% (+3 pt) + 16,1% Good execution of major new contracts Mid term margin impact Status Achieved 2006 Cost reduction Achieved 2006 On track Visibility 2007 Visibility 2007 Strong BPO Growth • Revenues Europe & Asia : + 47 % • Revenues US : +2,9 % • Workforce : 4500 • 86 % offshore • 4 Hubs, 8 satellites

  5. Investing in innovation and competencies Innovation Competencies Architecture Services TS Bookings 2006 2919 M€ TS Bookings 2005 2622 M€ Recruitment 188 M€ • 18 592 new Hires • 1 210 new colleagues integrated through OS • Headcount : 67 889 (+11,2%) +40% Share of Architecture Services in TS bookings Testing Sogeti Revenues 2006 1222 M€ Sogeti Revenues 2005 1108 M€ Training 114 M€ • 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 +39% Share of Testing in Sogeti revenues IM Command Centers IMCC Heacount in Poland & India 580 100 2005 2006

  6. Improving cross-discipline and cross-country business. Developing our sector approach and aligning organizations to improve portfolio management Sector Innovation Portfolio Management Loans and Mortgage Kanbay domain expertise Financial Services and Insurance Strengthening relations with our Top 30 clients Bookings 2005 6776 M€ Bookings 2006 8198 M€ Digital Media Telco in a box Telecom, Media and Entertainment 1652 M€ 3260 M€ Smart Metering Energy and Utilities Share of bookings at our 30 top clients CS/TS/OS Tax Systems Security HMRC Homeland Public Services • 5 country boards • 2 New European Business Units • New organization for consulting Future Value chain Shared Services Automotive Manufacturing, Retail and Distribution

  7. A tier-one player regarding offshore capabilities Total offshore headcount 15 291 +92% 23% Offshore/ total headcount 33% Offshore/ TS+OS headcount People • Recruitment focused on top talent = 1 hired every 8 interviews • 53% of people recruited coming from indian tier-I & II companies, 22% from referrals Delivery • Delivering large and complex projects : over 1600 people working for the 8 biggest projects • Reduction of the rate card, according to skills Sales • 75 % growth in the number of clients vs 2005 • 346 engagements serviced in 2006

  8. 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 leveraging Kanbay • KANBAY : Drive successful integration • I3 : Accelerate the Group positive momentum • CONSULTING SERVICES : Roll out a renewed ambition

  9. Adding Value through our I3 Transformation plan Implement new global operating model Leverage the group broad scope of services for our main clients Develop undisputed areas of domain expertise Win the battle for talent

  10. Adding Value through Kanbay Integration Consolidate Financial Services & Consumer Products positioning Strengthen Indian platform Reinforce North American presence Ensure fast & successful integration

  11. Financials

  12. Income statement: overview + 12.1% in Organic

  13. 2006 Revenues evolution Revenues quarterly evolution in M€

  14. Sustained growth in Q4

  15. Outsourcing drives Q4 growth CS/TS Revenues related to mega deals (HMRC, Schneider & TXU) recorded in Outsourcing CS/TS Revenues related to mega deals (HMRC, Schneider & TXU) reclassified in CS/TS At constant rates and perimeter

  16. When analysing the nature of work performed, all disciplines grow double digit CS/TS Revenues related to mega deals (HMRC, Schneider & TXU) recorded in Outsourcing CS/TS Revenues related to mega deals (HMRC, Schneider & TXU) reclassified in CS/TS At constant rates and perimeter

  17. 2006: Strong growth in a favorable market

  18. 2006 Revenues by sector FY 2005 Manufacturing, Retail & Distribution Energy & Utilities FY 2006 14,5% Manufacturing, Retail & Distribution 29,7% Energy & Utilities 14,0% Financial Services 13,1% 6,9% 29,0% Financial Services 10,6% 14,0% Other 24,3% Telecom, Media & Networks 6,5% 9,6% Other 27,8% Government Telecom, Media & Networks At constant rates and perimeter Government

  19. Bookings evolution by discipline 6 776 8 198 M€ 2 990 2 391 1 980 1 705 1 716 1 523 1 396 1 273 At constant rates and perimeter

  20. Consulting, Technology and Local Professional Services Bookings

  21. Book to Bill CS / TS / LPS – FY 2006 M€ At budget rates

  22. Charge-out rate – Consulting Services – Quarter evolution 1272 1246 1222 1225 1218 1200 1210 1189 2005 2006 At constant rates and perimeter

  23. Charge-out rate – Technology Services – Quarter evolution India included 636 626 621 623 622 617 616 615 India excluded 687 677 682 669 663 661 662 652 2006 2005 At constant rates and perimeter 2006 2005

  24. Charge-out rate – Local Professional Sces – Quarter evolution 445 439 435 422 419 415 418 410 2005 2006 At constant rates and perimeter

  25. Q3 Q1 Q3 ARVE – Quarter evolution by discipline Local Professional Services Technology Services Consulting Services Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q4 Q2 Q4 2005 2006 2005 2006 2005 2006 At constant rates and perimeter

  26. Consulting Services & Local Professional Services at double digit operating margin in H2 (1) before headquarters’ expenses At current rates and perimeter

  27. Strong operating margin improvement in all geographies but France (1) Items not allocated correspond to headquarters’ expenses At current rates and perimeter

  28. North America is now solidly in the black At current rates and perimeter

  29. France : a strong improvement in CS/TS and a solid LPS can not compensate for OS At current rates & perimeter

  30. SG&A are down in absolute terms despite a double digit growth in revenues

  31. Ratios of costs by nature impacted by big deals ramp-up

  32. Other operating income & expense:restructuring costs continue to trend down

  33. Operating margin almost entirely translated into cash 264 -263 -161 323 -148 498 1 632 -30 -66 447 1 336 -136 904 Working Capital evolution & other operational Cash flow 2006 Accrual Bonus (net of payment) Payment of Restruc- turing Cash Net of Debt 1.1.2006 Amorti- zation and provisions Payment Bonus 2005 Cash Net of Debt 31.12.2006 Operating Margin 31.12. 2006 Kanbay 14.7% Capital increase CAPEX Dividends

  34. Finance expense

  35. Income tax

  36. Balance Sheet (1) the balance sheet at Dec. 31, 2005 was restated in connection with the amendment of IAS 19

  37. Capex

  38. Shareholder’s equity

  39. Off balance sheet commitments Off Balance Sheet Commitments as of December 31, 2006 :

  40. Headcount evolution (*) out of which: Sogeti 4 282 India 3 897 Poland production centers 1 086

  41. Group headcount by discipline

  42. Annualized attrition

  43. Kanbay Preliminary P&L (unaudited)

  44. Balance Sheet – Kanbay (unaudited)(in millions of US$)

  45. 2006 Annual Results Paris, 15 February 2007

  46. Back upFY 2006

  47. Q4 Revenues by discipline Local Professional Services Consulting Services Q4 2005 11,5% 16,5% Technology Services 35,1% 36,9% Q4 2006 Outsourcing Services Consulting Services Local Professional Services 10,6% 16,1% 34,7% 38,6% Outsourcing Services Technology Services At constant rates and perimeter

  48. H2 Revenues by geography

  49. H2 Revenues by geography H2 2005 South Europe Asia Pacific North America 1,0% H2 2006 4,4% France 18,2% Asia Pacific South Europe 24,4% North America 1,1% France 25,2% 4,3% 17,4% UK & Ireland 6,7% 23,3% 14,2% Central Europe 5,8% 27,7% 6,9% Central Europe Nordic Countries Benelux 13,6% 5,7% UK & Ireland Benelux At constant rates and perimeter Nordic Countries

  50. H2 Revenues growth by discipline CS/TS Revenues related to mega deals (HMRC, Schneider & TXU) recorded in Outsourcing CS/TS Revenues related to mega deals (HMRC, Schneider & TXU) reclassified in CS/TS At constant rates and perimeter

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