2010 half year financial results · together. free your energies paris, july 29, 2010 2010 half...

Together. Free your energies

Paris, July 29, 2010

2010 Half Year Financial Results



2© 2010 Capgemini. All rights reserved.

3 highlights from H1 2010

H1 results are above expectations across the board

• 2% organic growth in Q2 2010 compared to Q1 2010

• Sogeti shows a strong acceleration: -8.1% (Q1 2010/Q1 2009) and +0.1% (Q2 2010/Q2 2009)

• Double digit growth for Financial Services in Technology services strongly driven by North America (+30% in H1)

• 5,8% of operating margin with the same sales investment as in 2009, strong emphasis on the five Top Line Initiatives

Our bookings support a return to growth in H2 10

We plan to grow and improve profitability in H2

• Bookings in Q2 2010 have increased 32% compared to Q2 2009 driven by +13% Project & Consulting bookings

• In H1, Outsourcing has renewed and extended key contracts: Hydro One & Met Police, more recently two GM contracts

• In the other Businesses, the Book-to-Bill ratio in Q2 has significantly increased: 1.28 in Q2 2010 vs. 1.06 in Q1 2010

• Our Top Line Initiatives have been confirmed as fuel for growth (36% of our H1 bookings )

• Public Sector is a risk and is tightly monitored. There are still growth opportunities in the sector (and outside)

• Our people management process is now in growth mode: global recruitment and offshore leverage

• New technologies are materializing (Platform as a Service,…)




(in M€) H1 2009 H2 2009 H1 2010H1 2010

vs

H1 2009

Revenues 4 376 3 995 4 211 - 3.8%

Operating expenses - 4 089 -3 687 - 3 966

Operating Margin 287 308 245

(% Revenues) 6.6% 7.7% 5.8% - 0.8 pt

Other operating income - 7 2

Other operating expenses - 120 - 149 - 47

Operating profit 167 166 200

(% Revenues) 3.8% 4.2% 4.7% + 0.9 pt

Net financial expense - 39 - 54 - 38

Income tax expense - 50 - 11 - 61

Share of profit of associates - - 1 -

Profit for the period 78 100 101

(% Revenues) 1.8% 2.5% 2.4% + 0.6 pt

Net cash and cash equivalents (end of period)

576 1 269 809

Number of employees (end of period) 89 453 90 516 95 586

Income Statement: Overview




Sequential Year on year

Q2 10 / Q1 10 Q2 10 / Q2 09

Consulting Services - 0.3 % - 9.7%

Technology Services 2.9 % - 3.0 %

Local Professional Services - 1.2 % 0.1 %

CS / TS / LPS 1.5 % - 2.9 %

Outsourcing Services 2.9 % - 7.0 %

TOTAL GROUP 2.0 % - 4.4 %

At constant rates and perimeter

Q2 Growth by Discipline




Current Organic

Current SequentialYear on

yearSequential

Year on year

(in M€) Q2 2009 Q1 2010 Q2 2010Q2 10 / Q1

10Q2 10 / Q2

09Q2 10 / Q1

10Q2 10 / Q2

09

North America 414 371 433 16.7% 4.4% 6.5% - 5.1%

France 484 488 493 1.1% 1.9% 1.2% 1.7%

UK & Ireland 516 453 470 3.8% - 8.9% - 0.2% - 11.8%

Benelux 348 318 327 2.9% - 6.1% 2.9 % - 6.1%

Rest of Europe, Asia & Latin America

409 422 436 3.2% 6.6% 0.7% - 0.2%

TOTAL 2 171 2 052 2 159 5.2% - 0.6% 2.0% - 4.4%

Benelux

North America

UK &

Ireland

France

Rest of Europe,

Asia & Latin

America

20.0%

21.8%

15.1%

22.9%

20.2%

Q2 2010

Q2 Revenues by Main Geography




H1 2010

6.4%

16.7%

41.2%

35.7%


Consulting Services

Technology

ServicesOutsourcing

Services

Local Professional

Services

Sequential Year-on-year

H1 10 / H2 09 H1 10 / H1 09

Consulting Services 7.2 % - 9.3 %

Technology Services 3.6 % - 6.1 %

Local Professional Services 4.0 % - 4.1 %

CS / TS / LPS 4.1 % - 5.9 %

Outsourcing Services - 1.9 % - 6.3 %

TOTAL GROUP 1.8 % - 6.1 %

H1 Revenues by Discipline





Current Organic

Current SequentialYear on

yearSequential

Year on year

(in M€) H1 2009 H2 2009 H1 2010H1 10 / H2

09H1 10 / H1

09H1 10 / H2

09H1 10 / H1

09

North America 836 754 804 6.6% - 3.9% - 4.2% - 7.3%

France 1 009 940 981 4.4% - 2.7% 4.3% - 2.8%

UK & Ireland 972 880 923 4.8% - 5.0% 2.7% - 7.6%

Benelux 734 663 645 - 2.7% - 12.2% - 2.7% - 12.2%

Rest of Europe, Asia & Latin America

825 758 858 13.3% 4.0% 8.2% - 1.7%

TOTAL 4 376 3 995 4 211 5.4% - 3.8% 1.8% - 6.1%

Benelux

North America

UK &

Ireland

France

Rest of Europe,

Asia & Latin

America

19.1%

21.9%

15.3%

23.3%

20.4%

H1 2010

H1 Revenues by Main Geography




11.1%

17.1%

8.2%

27.6%

8.2%

27.8%

H1 2010 Revenues

Energy, Utilities &

Chemicals

Financial

Services

Others

Public Sector

Telecom,

Media &

Entertainment

Manufacturing, Retail &

Distribution

H1 Revenues and Bookings by Sector

At budget rates

H1 10 / H1 09

Bookings Revenues

Financial Services - 4.0% 0.9%

Energy, Utilities & Chemicals 56.1% - 20.9%

Manufacturing, Retail & Distribution 20.2% - 2.3%

Public Sector 31.0% - 9.7%

Telecom, Media & Entertainment - 32.1% - 5.5%

Others - 7.6% 6.0%

TOTAL GROUP 13.8% - 6.0%




Bookings Evolution by Discipline

1 469

687

1 501

580

1 235

648

1 559

1 185

1 382

691

1 699

1 051

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10

Outsourcing

Consulting / Technology / Local Professional Services

2 156 2 0811 883

2 744

2 073

2 750

At constant rates & perimeter

(in M€)





Q4 Bookings Revenues BBR

North America 328 239 1.37

Rest of the world 1 371 1 092 1.26

TOTAL 1 699 1 331 1.28

At budget rates

Q2 2010

Book to Bill


Q4 Bookings Revenues BBR

North America 602 451 1.34

Rest of the world 2 479 2 188 1.13

TOTAL 3 081 2 639 1.17

H1 2010

(in M€)




50

60

70

80

90

80 81 8182 81

83

7678

7981

79 79

7070

69

6667

63

Consulting Services Technology Services Local Professional Services

At constant perimeter

Q1 Q2 Q2Q4

2009 2010

Q3 Q1

(%)

Q1 Q2 Q2Q4

2009 2010

Q3 Q1 Q1 Q2 Q2Q4

2009 2010

Q3 Q1

Utilization Rates by Discipline




Charge-out Rates

1152 11481095

11221115

1139

300

400

500

600

700

800

900

1000

1100

1200

479 477

444461

444

422

300

400

500

479480

470 476 467 469

300

400

500

Consulting Services

Technology Services (incl. India)

Local Professional Services

(in €)

Q1 Q2 Q2Q4

2009 2010

Q3 Q1

At constant rates and perimeterQ1 Q2 Q2Q4

2009 2010

Q3 Q1

Q1 Q2 Q2Q4

2009 2010

Q3 Q1




Headcount as of Dec. 31, 2009 90 516

Recruits (*) 13 505

Acquisitions / Outsourcing Deals (**) 1 106

Disposals - 98

Layoffs - 1 520

Leavers - 7 923

Headcount as of June 30, 2010 95 586

(*) out of which 7 740 in India

1 466 in other offshore locations

(**) out of which 197 for IBX

696 for SSS

68% Offshore

Attrition YTD June 09 June 10 YoY Var.

Consulting services 13.2% 22.1% 8.9 pts

Technology services 9.4% 18.4% 8.9 pts

Local Professional

services 10.4% 13.5% 3.1 pts

Outsourcing services 9.6% 16.1% 6.5 pts

Total Disciplines 9.9% 16.8% 6.9 pts

Headcount Evolution




Headcount Evolution by Discipline

4 290

3 827

3 719

3 600

3 700

3 800

3 900

4 000

4 100

4 200

4 300

4 400

Jan 09 Dec 09 Jun 10

Consulting Services

41 674

40 592

44 271

38 500

39 500

40 500

41 500

42 500

43 500

44 500

45 500


Technology Services

18 832

17 88817 950

17 700

17 900

18 100

18 300

18 500

18 700

18 900



26 275

28 090

29 447

26 000

26 500

27 000

27 500

28 000

28 500

29 000

29 500

30 000


Outsourcing Services




Offshore Leverage

0%

10%

20%

30%

40%

50%

60%

70%

80%

4,3%

53,2%

21,5%17,3%

11,6%

66,4%

6,6%

56,4%

32,5%

4,5%

56,9%

24,8%

19,1%

12,1%

75,3%

6,4%

58,3%

35,9%

January 10 June 10

Offshore Penetration per unit (billable headcount)




Evolution of Group Remuneration Costs from

H1 09 to H1 10

2010 Average salary increase onshore: + 1.3%

2010 Average salary increase offshore: + 6.6%

Average remuneration increase onshore: + 2.8% + 2.0%

Average remuneration increase offshore: + 10.1% + 1.7%

Group average remuneration cost evolution: - 1.6% - 2.9%

Despite increase in average remuneration cost onshore and offshore, the increase in

offshore leverage (from 27.1% in H1 09 to 31.5% in H1 10) reduces the overall Group average

remuneration cost

At current rates At constant rates




Operating

Margin(in M€)

H1 2009

H2 2009 H1 2010

Revenues 4 376 3 995 4 211

Personnel costs - 2 588 - 2 263 - 2 565

% of Revenues 59.1% 56.6% 60.9%

Purchases and subcontracting expenses - 1 074 - 1 008 - 975

% of Revenues 24.6% 25.2% 23.2%

Travel Expenses - 175 - 155 - 178

% of Revenues 4.0% 3.9% 4.2%

Rent and local taxes - 153 - 151 - 143

% of Revenues 3.5% 3.8% 3.4%

Depreciation, amortization, provisions and proceeds from asset disposals

- 99 - 110 - 105

% of Revenues 2.2% 2.8% 2.5%

Total operating expenses - 4 089 - 3 687 - 3 966

% of Revenues 93.4% 92.3% 94.2%


% of Revenues 6.6% 7.7% 5.8%

H1 2009

9.3%7.7%

76.4%

6.6%

G&A

Cost of services

rendered

Selling

H1 2010

10.7%7.0%

76.9%

7.4%

Cost of services

rendered

Operating

MarginSelling

9.2%

8.1%

5.8%

G&A

At current rates and perimeter

Operating Margin Analysis




H1 2009 H2 2009 H1 2010

Consulting Services

Technology Services


CS / TS / LPS

Outsourcing Services

10.6%

6.2%

9.3%

7.5%

6.7%

12.4%

7.6%

10.2%

8.8%

7.7%

11.1%

5.5%

7.2%

6.5%

6.7%

Total Operations (*) 7.2% 8.4% 6.6%

GROUP 6.6% 7.7% 5.8%


(*) before headquarters’ expenses

Operating Margin by Discipline




H1 2009 H2 2009 H1 2010

(In M€) RevenuesOp.

Margin% Revenues

Op.

Margin% Revenues

Op.

Margin%

North America 836 44 5.3% 754 33 4.4% 804 34 4.3%

France 1 009 49 4.9% 940 72 7.6% 981 50 5.1%

UK & Ireland 972 79 8.2% 880 86 9.7% 923 67 7.3%

Benelux 734 56 7.6% 663 66 10.0% 645 59 9.1%

Rest of Europe, Asia &

Latin America

o.w. Asia Pacific

825

63

88

30

10.6% 758

67

77

39

10.4% 858

86

66

24

7.7%

Not allocated (1) - 29 - 26 - 31

TOTAL 4 376 287 6.6% 3 995 308 7.7% 4 211 245 5.8%

At current rates and perimeter(1) Items not allocated correspond to headquarters’ expenses

Operating Margin by Main Geography




(in M€) H1 2009 H1 2010

Operating Margin 287 245

Other operating income - 2

Other operating expenses - 120 - 47

of which Restructuring costs

Stock options and performance shares

- 102- 9

- 34- 7

Net financial expense - 39 - 38

Income tax expense - 50 - 61

Profit for the year 78 101

Earnings per share as of June 30th (non diluted) – in € 0.53 0.65

Net Profit Analysis




Cash net ofDebt31.12.2009

H1 2010OperatingMargin

2010BonusAccrual (net)

Amorti-zationandprovisions

Paymentbonus2009

CAPEX Paymentofrestruc-turing

Other Working Capital evolution (excl. bonus effect)

Acqui-sitions

Cash Net of Debt 30.06.2010

Taxpaid

ExchangeRateDif.

Dividends& Treasuryshares

ImpactofOCEANE

287 163 70 -331 -87 -89 -143 -52 71 -140 13H1

2009

Comparable

Cash bef.nonOperationalitems

-6

-338 M€ operational flow vs -182 M€ in 2009

(in M€)

Net Cash Evolution

1269

245

15487

264

9186

348

88

1019

12390

809

3524

6 15

IncreaseIncapital

NetInterest& otherfinancialitems

-1 47




ASSETS Dec. 31,2009June 30,

2010 EQUITY & LIABILITIESDec. 31,

2009June 30,

2010

Goodwill 2 750 3 043 Equity 4 213 4 322

Intangible assets 116 125 Long-term borrowings 1 057 1 080

Property, plant & equipment 421 454 Deferred taxes 153 165

Deferred taxes 887 947 Provisions for pensions and other post-employment benefits 680 941

Other non-current assets 112 100 Non-current provisions 21 19

Other non-current liabilities 95 96

Total non-current assets 4 286 4 669 Total non-current liabilities 2 006 2 301

Accounts & notes receivable 2 067 2 505 Short-term borrowings and bankoverdrafts 278 98

Other receivables and income tax 257 316 Accounts and notes payable 2 026 2 052

Short-term investments 2 109 1 534 Advances from customers and billed in advance 567 534

Cash at bank 494 437 Current provisions 28 46

Other payables and income tax 95 108

Total current assets 4 927 4 792 Total current liabilities 2 994 2 838

Total Assets 9 213 9 461 Total Equity & Liabilities 9 213 9 461

(in M€) Balance Sheet




Our Top Line Initiatives boost our growth Application Lifecycle Services : Leadership position

• Target of €1,5bn bookings in 2010, with a double digit growth

• WARP1, the phase 1 Wide-Angle Rationalization Program received enthusiastic comments and was analyzed by Gartner as the best in the market

• SAP Lifecycle is seen as the most innovative of its kind and quoted in the joint SAP/Capgemini press release about our Pinnacle awards

Business Information Management : Advanced Solutions

• Rapid growth driven by demand for solutions to support improved decision making (+48% bookings increase YTD)

• Strong progress to evolve industry solution portfolio : Smart energy analytics, FS credit risk, Media IP rights management, Public security ID management

• Trend towards enterprise wide BI programs and strategic partnering (eg wins at KPN, Canon)

Infostructure Technology Services : Prepare PaaS future with cost reduction solutions

• New India team to lead sales and delivery

• Two offers to push in H2: BPOS with Microsoft and Immediate, our E-business Platform

• Our Private Cloud offerings are relevant in the Market: Airbus contract

• Investment in the “French National strategy for the digital age”

Smart Energy Services : Geographic Expansion

• SES now has a balanced portfolio in NA and Europe, and a presence in China

• The FORTUM win and SKVADER acquisition positioning Capgemini as a market leader in managed business services for Smart Energy Services

• 50% of the SES sales and pipeline represent new logo accounts

Testing Services : Offshore growth

• Very strong offshore growth to support the delivery of state-of-the-art testing solutions for customers

• Expand domain/industry-specific expertise and innovation using Test Labs

• Focus on North America , France, United Kingdom and Germany: clear opportunity to over perform




Public▪ Tax and security system + ?

▪ Metropolitan Police (UK); State of Nevada (NA); Department of Agriculture (NA) ; Prefecture de

Police (France); Futuro (Netherlands)

+31%

Our sector offers’ portfolio is fast following

markets needs

Consumer Product Retail

& Distribution

Key offers H1 / H1BookingsSector

Energy, Utilities &

Chemicals

▪ Emerging market; Customer analytic; Multichannel

▪ Maxeda (Benelux); Royal Mail Group Ltd (UK); Kraft Foods (NA); Inex (Finland); Premier Foods (UK);

Groupe Hamelin (France)

Manufacturing

General Services

Telecom & Media

H1 Key Wins

▪ Consolidation; PLM; Customerlifecycle management

▪ New entrants, network engineering, Smart Grid;

smart meters

▪ Consolidation; Diversification; Rail network management

▪ Billing; smart phone; digital media

+66%

+56%

H2 Funnel

++

++

+

-5%

- 32%

- 8%

+

=

▪ Hydro one (NA); Fortum Distribution (Scandinavia); Shen Zhen Energy cooperation (China)

Financial Services

▪ Risk Regulation; multi channelConsolidation/Standardisation -4% +++ ▪ HSBC (NA); Morgan Stanley (NA);

Progressive (NA)

▪ Bluescope Steel (Australia)

▪ Trainline (UK); SNCF (France)

▪ Telenor (Norway); Telekomunikacja Polska(Poland)




Strong HR momentum:

95 586 people: +6% Year to Date

Offshore leverage at 34.4% vs. 30.9 % end of 09

Recruitment machine : +8 000 recruits in Q2 10

vs. + 5 000 in Q1 10

Stabilization Onshore

+0.3%YTD

Strong growth offshore

+17.3 % YTD

New Platforms opened through acquisition of Strategic Systems Solutions: China, Singapore and Philippines

Offshore/Onshore Staff evolution




2 platforms are already delivering

differentiation and value

Procurement as a Service

Sourcing & Category

Management

OperationalProcurement

Services

PayablesManagement

Compliance Management

Reporting

Procurement Platform

Major Win: Kraft Food

E-services Platform

• Strategic Procurement services• BPO Procurement & Payables services• Operational Procurement services• Software as a Service (SaaS) technology

Major Win: Royal Mail Group

Capgemini Immediate is a fully integrated cloud service that defines the best digital strategy for our clients, and then selects, integrates and manages leading cloud suppliers on their behalf




Conclusion: Improved Outlook

H2 RevenuesFY 2010

Operating margin

Above 6.5% of revenues H2 year on year organic growth: +3% to +5%

Back-Up




2 205 2 171

1 946

2 049 2 052

2 159

1400

1600

1800

2000

2200

2400

Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10

Q1 2009 Q2 2009 H1 2009 Q3 2009 Q4 2009 H2 2009 FY 2009 Q1 2010 Q2 2010 H1 2010

In M€ (Published) 2 205 2 171 4 376 1 946 2 049 3 995 8 371 2 052 2 159 4 211

Sequential Current Growth - 1.5% -10.4% 5.3% 0.1% 5.2% 5.4%

Sequential Organic Growth - 1.4% -9.9% 6.3% -2.2% 2.0% 1.8%

Year-on-Year Current Growth -6.9% -0.6% -3.8%

Year-on-Year Organic Growth -7.7% -4.4% -6.1%

(in M€)

Revenues Quarterly Evolution




Current Current Organic

Q2 2009 Q1 2010 Q2 2010

Sequential Year on year Sequential Year on year

(in M€)Q2 10/

Q1 10

Q2 10/

Q2 09

Q2 10/

Q1 10

Q2 10/

Q2 09

North America 414 371 433 16.7% 4.4% 6.5% -5.1%

Europe and Asia

of which :1 757 1 681 1 726 2.7% - 1.8% 1.0% - 4.3%

France 484 488 493 1.1% 1.9% 1.2% 1.7%

UK & Ireland 516 453 470 3.8% - 8.9% - 0.2% - 11.8%

Benelux 348 318 327 2.9% - 6.1% 2.9% - 6.1%

Nordic 130 136 134 - 1.0% 3.3% - 4.6% - 8.9%

Germany & Central Europe

137 130 132 1.3% - 3.8% 0.6% - 6.0%

Southern Europe & Latin America

110 116 124 6.0% 12.4% 5.2% 11.2%

Asia Pacific 32 40 46 15.3% 45.5% 6.4% 21.7%

TOTAL 2 171 2 052 2 159 5.2% - 0.6% 2.0% - 4.4%

Q2 Revenues by Geography




H1 Revenues by Geography

Current Current Organic

H1 2009 H2 2009 H1 2010

Sequential Year on year Sequential Year on year

(in M€) H1 10 / H2 09 H1 10 / H1 09 H1 10 / H2 09 H1 10 / H1 09

North America 836 754 804 6.6% - 3.9% - 4.2% - 7.3%

Europe and Asia

of which :3 540 3 241 3 407 5.1% - 3.7% 3.4% - 5.8%

France 1 009 940 981 4.4% - 2.7% 4.3% - 2.8%

UK & Ireland 972 880 923 4.8% - 5.0% 2.7% - 7.6%

Benelux 734 663 645 - 2.7% - 12.2% - 2.7% - 12.2%

Nordic 262 226 270 19.6% 3.1% 10.1% - 7.6%


277 254 262 3.1% - 5.3% 1.3% - 7.0%


223 211 240 13.9% 7.1% 12.6% 6.1%

Asia Pacific 63 67 86 28.6% 38.1% 13.5% 18.2%

TOTAL 4 376 3 995 4 211 5.4% - 3.8% 1.8% - 6.1%




Q2 Revenues by Geography

6.5%15.4%

6.2% 23.6%

20.2%

21.5%

1.7%

4.9%

Q2 2009


Benelux

North

America

UK

& Ireland

Nordic

Germany

& Central

Europe

France

Southern

Europe

& Latin

America

Asia

Pacific

Q2 2010

6.2%15.2%

6.1%21.8%

20.1%

22.8%

2.1%

5.7%

Benelux

North

America

UK

& Ireland

Nordic

Germany

& Central

Europe

France

Southern

Europe

& Latin

America

Asia

Pacific




H1 Revenues by Geography

6.5%16.4%

6.3%22.3%

19.4%

22.5%

1.6%

5.0%

H1 2009


Benelux

North

America

UK

& Ireland

Nordic

Germany

& Central

Europe

France

Southern

Europe

& Latin

America

Asia

Pacific

H1 2010

Benelux

North

America

UK

& Ireland

Nordic

Germany

& Central

Europe

France

Southern

Europe

& Latin

America

Asia

Pacific

6.4%15.3%

6.2%

21.9%

19.1%

23.3%

2.1%

5.7%




H1 Revenues by Discipline

H1 2010

41.2%

35.7%

16.7%6.4%

H1 2009

6.7%

41.2%

16.3%

35.8%


Consulting

Services

Technology

Services

Outsourcing

Services

Local

Professional

Services

Consulting

Services

Technology

Services

Outsourcing

Services

Local

Professional

Services




13.2%

16.0%

7.1%

28.7%

8.2%

26.8%

H1 2009

Energy, Utilities &

Chemicals

Financial

Services

Others

Public Sector

Telecom,

Media &

Entertainment


Distribution

H1 Revenues by Sector

11.1%

17.1%

8.2%

27.6%

8.2%

27.8%

H1 2010

Energy, Utilities &

Chemicals

Financial

Services

Others

Public Sector

Telecom,

Media &

Entertainment


Distribution





June 09 Sept 09 Dec 09 Mar 10 June 10June 10/

June 09

June 10/

Dec. 09

Consulting Services 4 110 3 949 3 834 3 757 3 719 - 9.5% - 3.0%

Technology Services 39 403 39 380 40 541 41 282 44 271 12.4% 9.2%

Outsourcing Services 27 180 27 689 28 035 28 677 29 447 8.3% 5.0%

Local Professional Services 18 530 18 033 17 879 17 878 17 950 - 3.1% 0.4%

TOTAL GROUP* 89 453 89 278 90 516 91 792 95 586 6.9% 5.6%

* including not classified headcount

Evolution of Headcount by Discipline




Headcount by Geography

UK & IRELAND :

• Opening: 7 844

• Closing: 8 221

• Change in Person: +377

• Change in %: +4.8 %

ITALY :

• Opening: 1 510

• Closing: 1 544


• Change in %: +2.3%

IBERIA & Latin America:

• Opening: 6 604

• Closing: 6 881



FRANCE :

• Opening: 20 032

• Closing: 19 878

• Change in Person: - 154

• Change in %: -0.8%

BENELUX :

• Opening: 11 163

• Closing: 10 718

• Change in Person: - 445

• Change in %: -0.4%

ASIA PACIFIC :

• Opening: 24 008

• Closing: 28 419

• Change in Person: +4 411

• Change in %: +18.4%

CENTRAL EUROPE :

• Opening: 7 724

• Closing: 7 862



TOTAL GROUP:

Opening: 90 516 Closing: 95 586 D in P: +5 070 D in %: +5.6 %NORTH AMERICA :

• Opening: 7 950

• Closing: 8 264



NORDIC:

• Opening: 3 681

• Closing: 3 799






0 H1 2009 H2 2009 H1 2010

(in M€) RevenuesOp.

Margin% Revenues

Op.

Margin% Revenues

Op.

Margin%

North America 836 44 5.3% 754 33 4.4% 804 34 4.3%

France 1 009 49 4.9% 940 72 7.6% 981 50 5.1%

UK & Ireland 972 79 8.2% 880 86 9.7% 923 67 7.3%

Benelux 734 56 7.6% 663 66 10.0% 645 59 9.1%

Nordic 262 20 7.5% 226 15 7.0% 270 16 6.0%


277 31 11.1% 254 20 8.1% 262 21 7.9%


223 7 3.1% 211 3 1.5% 240 5 2.2%

Asia Pacific 63 30 N/A 67 39 N/A 86 24 N/A

Not allocated (1) - 29 - 26 - 31

TOTAL 4 376 287 6.6% 3 995 308 7.7% 4 211 245 5.8%

(1) Items not allocated correspond to headquarters’ expenses


Operating Margin by Geography




Operating Margin Analysis by Destination

(in M€) H1 2009 H2 2009 H1 2010

Revenues 4 376 3 995 4 211

Cost of services rendered - 3 345 - 3 021 - 3 240

% of Revenues 76.4% 75.6% 76.9%

Gross Margin 1 031 974 971

% of Revenues 23.6% 24.4% 23.1%

Selling Expenses - 338 - 291 - 338

% of Revenues 7.7% 7.3% 8.1%

General & Administrative Expenses - 406 - 375 - 388

% of Revenues 9.3% 9.4% 9.2%


% of Revenues 6.6% 7.7% 5.8%





(in M€) H1 2009 H2 2009 H1 2010

Total other operating income 0 7 2

Restructuring costs

Of which :(102) (111) (34)

People (80) (71) (23)

Transition to Offshore (4) (6) (3)

Buildings (18) (34) (8)

Integration costs related to acquired companies (5) (11) (4)

Acquisition costs N/A N/A (1)

Impairment of goodwill - (12) -

Expenses relating to share subscriptions, share grants and stock options

(9) (10) (7)

Other (4) (5) (1)

Total other operating expenses (120) (149) (47)

Other operating income and expense (120) (142) (45)

Other Operating Income and Expense




(in M€) H1 2009 H1 2010

Interest on convertible bonds (24) (28)

Other interest expenses (5) (4)

Income from cash and cash equivalents 14 8

Net finance costs (15) (24)

Other financial income Other financial expenses

78(102)

23(37)

Net financial expense (39) (38)

Net Financial Expense




(in M€) H1 2009 H1 2010

Current income tax (18) (39)

Tax payable on profit (15) (22)

Tax not based on taxable income (9) (17)

Adjustments on previous periods 6 0

Deferred income tax (32) (22)

Tax losses

• Net utilization of deferred tax assets on tax losses (33) (30)

France (27) (25)

Other regions (6) (5)

• Net reassessment of deferred tax assets on tax losses 1 7

France 0 0

Other regions 1 7

Temporary differences and change in tax rates 0 1

TOTAL INCOME TAX EXPENSE (50) (61)

Effective tax rate 39.3% 38.0%

Income Tax Expense




(In M€) H1 2009 H2 2009 FY 2009 H1 2010

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

780

83(13)

3155026

1001281

(41)1

281111

17812

164(54)

4436137

1010

8251

2461

(12)

Cash flows from operations before net finance costsand income taxIncome tax paidChange in restructuring debtChanges in operating working capital

242

(52)13

(303)

203

(4)16

380

445

(56)2977

262

(35)(53)

(431)

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

(100)(82)

(6)13

(143)3

5958

595(55)

(7)212

050

(57)

495(137)

(13)225

(143)8

591

(257)(81)(96)

24(122)

(1)0

73

Change in net cash and cash equivalents (198) 693 495 (460)

Opening net cash and cash equivalents 774 576 774 1 269

Closing net cash and cash equivalents 576 1 269 1 269 809

Net Cash Evolution




(in M€)

Total equity as of January 1, 2010 4 213

Dividends paid out for 2009 (122)

Valuation of stock options and performance shares grants 7

Increase in capital upon exercice of stock options 24

Income and expenses recognized 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

99

(207)1134

261

Profit for the period 101

Total equity as of June 30, 2010 4 322

Equity




H1 2010

H1 2009(in M€) Intangible assets

Property, plant &

equipmentTotal

December 31, n-1 116 421 537 562

Acquisitions 15 76 91 87

Disposals (1) (11) (12) (8)

Amortization / Depreciation for the period

(21) (61) (82) (83)

Perimeter changes 9 3 12 0

Translation adjustments & other movements

7 26 33 4

June 30, n 125 454 579 562

Capex




Commitments given

• Non cancelable leases (mainly offices, vehicles, computers) € 829M

• Other commitments:

• Other commitments € 59M

• Covenants on OCEANE bonds and syndicated credit facilities Compliant

• Limited financial guarantees granted to customers € 571M

• Bank guarantees granted to customers € 70M

• Parent performance and/or financial guarantees provided in various large clients contracts

Off Balance Sheet Commitments as of June 30, 2010:

Off Balance Sheet Commitments

2010 half year financial results · together. free your energies paris, july 29, 2010 2010 half...

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