2011 half year results - capgemini · 2011 half year results h1 key features influencing our...

Paris, July 28, 2011

2011 Half Year Results


Paul Hermelin

2© 2011 Capgemini. All rights reserved.


H1 Revenue Ahead of Expectations, Margin Results On-Track

Solid improvement

of Operating Margin and Net ResultHigh Revenue Growth

H1 2011/2010

101

127

0

50

100

150

200

250

300

350

H1 2010 H1 2011

Operating Margin % of revenues

Net Result Group Share

In €M

+26%

+18%

Consulting Services - 1.6% - 1.4%

Technology Services + 9.6% + 14.6%

Sogeti + 7.3% + 9.3%

Outsourcing + 6.6% + 15.3%

Application Management + 0.4% + 9.8%

Infrastructure Management + 9.4% + 19%

BPO + 21.8% + 22.4%

Group Total + 7.4% +12.9%

Current rates and perimeter

5.8% 6.1%*

245

289

(*) Operating Margin excl. CPM: 6.3% of revenues



H1 Key Features Influencing our Performance

Demonstrated capacity to over-perform the market +12.1% growth year-on-year in NA with 8.1% Operating Margin

Continued market share development with our Top Line Initiatives+29% revenues for our Testing offer, +43% revenues for our Smart Energy Services offer

Unabated offshore growth, +37.3% of our headcounts, a 2 point increase vs. end 2010

Buoyant development of our BPO activity, +21.8% year on year

Strong development in Fast growing economies+37.2% in Asia Pacific, +21% in Brazil

Recovery of Capgemini Consulting in key geographies+22.4% in North America and +20% in Germany

Four challenges ahead: market repositioning in the Netherlands,

private sector development in the UK, Infrastructure services market

challenges and New Business Models development



Our Acquisition Strategy Brings Strong ResultsWhile Accelerating our Organic Growth

Target

Organic Growth rate

Target

Operating Margin

Over €1 bn* revenue acquired since the beginning of 2010

Fast growth economiesCPM Braxis in Brazil; Praxis in China

~15% ~5%

New business modelSkvader; Prosodie

~5% ~15%

Geographic reinforcementSSS; CS Consulting; AIVE

~7% > 8%

Portfolio Value enhancement BICG; Artesys; Avantias

~15% ~10%

(*) 2010 annual basis



A Balanced Strategy Developing Profitable Growth

Margin evolution and Growth in Constant Currency - H1 Year on Year

Margin evolution

Growth in constant

currency

Capgemini

HCL

Wipro IT services

Cognizant

Infosys

T-SystemsCSC

Accenture

HP Services

IBM Services

TietoSteria

Logica

AtoS

TCS

Long-term objective: gaining market shares and exceeding 10% OM

2%

1%

0

-1%

-2%

-3%

40%30%20%10%0-10%Note : Estimate based on actuals and consensus

Fujitsu Services



Paul Spence



Q2 2011: Strong Sales Performance with Blue Chip Wins

Everything Everywhere, UK

Entercard, Nordic

AkzoNobel, Netherlands

Lyonnaise des Eaux, France

A major Dutch retail

organization in the Netherlands

Technology Services Outsourcing Services

IKEA, Sweden

Schneider Electric, France

ABC Industria E Comercio,

Brazil

Statoil, North America

Office depot, North America

Saint-Gobain, France

Several deals with the public

sector in France

2 deals with UK-based global

banks

Capgemini Consulting

Note : At budget rates and constant perimeter

Book-to-Bill Ratio in CS/ TS/ LPSBookings evolution

1 462 1 786 1 337 1 840 1 632 1 921

8501 270

1 0991 143

790862

0

1000

2000

3000

4000

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

CS/TS/LPS Outsourcing

2 3123 056

2 4362 983

2 4222 783

North America 1.16 1.27

Rest of the world 1.29 1.16

Total 1.26 1.18

Q2 2011 H1 2011


CS/TS/LPS+ 9.4%


June 2010 June 2011

Above 50M€

10-50M€

0-10M€

3.6

3.63.6

+15%

+41.2%

4

5.1

4.2 Deal size

In€bn

>€50M Deal average size growth: from €110M in 2010 to €115M in 2011

Our Sales Engines AmplifyMarket Growth Opportunities

At budget rates and constant perimeter

8 8.7

Success of our Key Account Management

Fruitful Portfolio Strategy

4 Global Service Lines: BIM, Testing, Smart Energy, BPM

12% of Group revenues (30% incl. ALS)

Big deal drivers: Everything Everywhere for Testing

High growth service lines, on average:

– +28% YoY revenues growth

– +14% YoY bookings growth

NBM: Skvader, IBX, Prosodie

42 CMA managed cross-discipline

+10% YoY revenue growth

+28% YoY bookings growth

Driving bigger deals

Growth in all SectorsHigher Funnel with more big Deals

Financial services 15.5% 13.7%

Energy, Utilities & Chemicals -39.5% 6.6%

MALS 29.2% 4.1%

CPRDT -3.2% 6.1%

Public Sector -17.9% 1.4%

Telecom, Media & Entertainment

11.3% 20.4%

Others 41.2% 10.9%

Booking Revenues

H1 2011 / 2010

15.718



Clear Competitive Advantages, Independence Leveraged

Winner of the Best Converged Infrastructure Solutions

Winner of the Best IT Application Implementation Partner of the Year

Beacon Awards: Sogeti winner of two awards

Common launch of an Agile Legacy Lifecycle service

Enterprise Partner of the Year

Joint plan to offer cloud services in 22 countries

Diamond Partner

Capgemini named leader among 14 global Oracle services providers by

Forrester Research

Pinnacle Award for Innovation

Capgemini certified as global provider of cloud services and hosting



Nicolas Dufourcq



(in M€) H1 2010 H2 2010 H1 2011

H1 2011

vs

H1 2010

Revenues 4 211 4 486 4 756 + 12.9 %

Operating expenses - 3 966 - 4 144 - 4 467

Operating Margin 245 342 289

(% Revenues) 5.8% 7.6% 6.1% + 0.3 pt

Other operating income 2 4 -

Other operating expenses - 47 - 57 - 49

Operating profit 200 289 240

(% Revenues) 4.7% 6.4% 5.1% + 0.4 pt

Net financial expense - 38 - 49 - 51

Income tax expense - 61 - 63 - 70

Non-controlling interests - 2 8

Profit for the period (group share) 101 179 127

(% Revenues) 2.4% 4.0% 2.7% + 0.3 pt

Net cash and cash equivalents (end of period)

809 1 063 169

Number of employees (end of period) 95 586 108 698 114 274

Income Statement: Overview


+ 7.4 %Organic


350 Current Organic

Current SequentialYear on

yearSequential

Year on year

(in M€) Q2 2010 Q1 2011 Q2 2011Q2 11 /

Q1 11

Q2 11 /

Q2 10

Q2 11 /

Q1 11

Q2 11 /

Q2 10

North America 433 424 445 5.1% 3.0% 10.2% 14.1%

France 493 524 515 - 1.9% 4.3% - 1.9% 4.3%

UK & Ireland 470 479 508 6.2% 8.2% 9.8% 10.1%

Benelux 327 323 319 - 1.3% - 2.5% - 1.3% - 4.0%

Rest of Europe, Asia & Latin America

436 600 619 3.1% 42.0% 3.6% 14.4%

TOTAL 2 159 2 350 2 406 2.4% 11.4% 4.1% 8.4%

Benelux

North America

UK &

Ireland

France

Rest of Europe,

Asia & Latin

America

18.5%

21.1%

13.3%

21.4%

25.7%

Q2 2011 Revenues by Main Geography



Sequential Year on year

Q2 11 / Q1 11 Q2 11 / Q2 10

Consulting Services - 3.0% - 2.3%

Technology Services 3.3% 11.0%

Local Professional Services - 0.3% 6.7%

CS / TS / LPS 1.8% 8.6%

Application Management 9.5% 3.4%

Infrastructure Services 7.4% 10.1%

Business ProcessOutsourcing

4.9% 20.8%

Outsourcing Services 8.0% 8.2%

TOTAL GROUP 4.1% 8.4%

At constant rates and perimeter

Q2 / H1 2011 Growth by Discipline

5.6%

15.2%41.3%

16.1%

CS

TSLPS

17.9%

3.9%

AM

IM

BPO

Sequential Year on year

H1 11 / H2 10 H1 11 / H1 10

Consulting Services 11.3% - 1.6%

Technology Services 3.8% 9.6%

Local Professional Services

7.8% 7.3%

CS / TS / LPS 5.5% 7.9%

Application Management 1.7% 0.4%

Infrastructure Services - 3.8% 9.4%

Business ProcessOutsourcing

11.3% 21.8%

Outsourcing Services - 0.2% 6.6%

TOTAL GROUP 3.3% 7.4%



H1 2010 H2 2010 H1 2011

(In M€) RevenuesOp.

Margin% Revenues

Op.

Margin% Revenues

Op.

Margin%

North America 804 34 4.3% 861 52 6.0% 869 70 8.1%

France 981 50 5.1% 950 77 8.2% 1 039 79 7.6%

UK & Ireland 923 67 7.3% 989 83 8.4% 987 61 6.1%

Benelux 645 59 9.1% 669 68 10.2% 642 40 6.2%

Rest of Europe, Asia &

Latin America858 66 7.7% 1 017 98 9.6% 1 219 72 5.9%

Not allocated (1) - 31 - 36 - 33

TOTAL 4 211 245 5.8% 4 486 342 7.6% 4 756 289 6.1%

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

Operating Margin by Main Geography



H1 2010 H2 2010 H1 2011

Consulting Services

Technology Services


CS / TS / LPS

Outsourcing Services

11.1%

5.5%

7.2%

6.5%

6.7%

10.5%

7.9%

11.3%

9.0%

7.5%

11.8%

5.8%

9.9%

7.4%

5.7%

Total Operations (*) 6.6% 8.4% 6.8%

GROUP (**) 5.8% 7.6% 6.1%

At current rates and perimeter

(*) before headquarters’ expenses

(**) 5.4% at 2011 perimeter

Operating Margin by Business



50

60

70

80

90

8183 83 83 82

83

80 7978 79 79

78

6866

67

7171 70

Consulting Services Technology Services Local Professional Services

At constant perimeter

Q1 Q2 Q2Q4

2010 2011

Q3 Q1

(%)

Q1 Q2 Q2Q4

2010 2011

Q3 Q1 Q1 Q2 Q2Q4

2010 2011

Q3 Q1

Utilization Rates by Business


(excluding CPMB)


Charge-out Rates

Consulting Services Technology Services onshore (Excl. CPMB & ex-Kanbay)


(in €)

1144 11671124

11881148 1159

300

400

500

600

700

800

900

1000

1100

1200

1300

Q1 Q2 Q2Q4

2010 2011

Q3 Q1

At budget rates and perimeter

479482

479489

480487

300

400

500

Q1 Q2 Q2Q4

2010 2011

Q3 Q1

626 629 620637

614 612

500

600

700

Q1 Q2 Q2Q4

2010 2011

Q3 Q1

454430

411422

409401

300

400

500

Q1 Q2 Q2Q4

2010 2011

Q3 Q1

Technology Services (including India, excluding CPMB)



Headcount as of Dec. 31, 2010 108 698

Recruits (*) 16 484

Acquisitions / Outsourcing Deals 892

Disposals - 23

Layoffs - 1 954

Leavers - 9 823

Headcount as of June 30, 2011 114 274

(*) out of which 2 150 in Sogeti (excl. India)

7 086 in India

1 498 In other offshore centers

53% offshore

Attrition YTDJune

2010

Dec

2010

June

2011YoY Var.

Consulting services 22.0% 21.9% 21.4% -0.6 pt

Technology services 18.3% 16.7% 16.9% - 1.4 pts

Local Professional

services 16.1% 15.5% 16.9% 0.8 pt

Outsourcing services 13.5% 15.0% 17.3% 3.8 pts

Total Business 16.8% 16.1% 17.7% 0.9 pt

Headcount Evolution



Offshore Leverage

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CS APPS1 APPS2 Infra Sogeti BPO Group Total (*)

5.1%

60.2%

17.8%

40.5%

7.6%

92.1%

36.4%

5.5%

61.7%

19.1%

40.8%

9.9%

91.7%

38.1%

January 11 June 11

Offshore penetration per SBU (billable headcount)

(*) Group Total includes Emerging Markets



Evolution of Group remuneration cost from H1 2010 to H1 2011

2011 Average salary increase onshore : 2.7%

2011 Average salary increase offshore: 7.4%

Despite increase in average remuneration cost in onshore and offshore units, it is the increase in offshore weight (from

31.6% in H1 2010 to 37.6% in H1 2011) which reduces the overall Group average remuneration cost.


-Excluding H1 2010

Bonus reversal &

Holdings

Average remuneration increase onshore + 3.6% + 2.8%

Average remuneration increase offshore + 5.0% + 5.0%

Group average remuneration costs evolution - 3.3% - 4.0%



Operating

Margin(in M€) H1 2010 H2 2010 H1 2011

Revenues 4 211 4 486 4 756

Personnel costs - 2 565 - 2 628 - 2 958

% of Revenues 60.9% 58.6% 62.2%

Purchases and subcontracting expenses - 975 - 1 067 - 1 052

% of Revenues 23.2% 23.8% 22.1%

Travel Expenses - 178 - 192 - 192

% of Revenues 4.2% 4.3% 4.0 %

Rent and local taxes - 143 - 139 - 158

% of Revenues 3.4% 3.1% 3.3%

Depreciation, amortization, provisions and proceeds from asset disposal

- 105 - 118 - 107

% of Revenues 2.5% 2.6% 2.3%

Total operating expenses - 3 966 - 4 144 - 4 467

% of Revenues 94.2% 92.4% 93.9%


% of Revenues 5.8% 7.6% 6.1%

9.2%8.1%

76.9%

5.8%

G&A

Cost of services

rendered

Selling

10.7%7.0%

77.3%

7.4%

Cost of services

rendered

Operating

MarginSelling

8.6%

8.0%

6.1%

G&A


Operating Margin Analysis


H1 2011

H1 2010


(in M€) H1 2010 H1 2011

Operating Margin 245 289

Other operating income 2 -

Other operating expenses - 47 - 49

of which Restructuring costs

Stock options and performance shares

- 34- 7

- 32- 9

Net financial expense - 38 - 51

Income tax expense - 61 - 70

Non-controlling interests - 8

Profit for the period (Group share) 101 127

Earnings per share (*) as of June 30th (non diluted) – in € 0.65 0.82

Net Profit Analysis

(*) Based on a total number of shares of 155 031 166 and 155 770 362 respectively



(in M€) H1 2010 H1 2011

Interest on convertible bonds (28) (29)

Other interest expenses (4) (10)

Income from cash and cash equivalents 8 13

Net finance costs (24) (26)

Other financial income Other financial expenses

23(37)

22(47)

Net financial expense (38) (51)

Net Financial Expense



245 154 87 -264 -86 -35 -358 -10 -52 24 -123H1

2010

Compa-

rable

-79

Net Cash Evolution

-51 88


Cash net ofDebt

31.12.2010

2011Bonus

provision

Amorti-zationand

provisions

BonusPayout

For 2010

Paymentof

Restruc-turing

Taxpaid

Other working capital

evolution (excl. bonus effect)

Acqui-sitions

Cash Net of Debt

30.06.2011

Netinterest

CAPEX,Net of

disposals

Increasein

capital

Exchangeratesdiff.

Cash netof debt bef.investing

and financialactivities

(in M€)

Dividends&

Treasuryshares

Debtincrease& others

1 063

289

164

77

329

3942

607

2168

487

151

104

169

3132

- 487 M€ cash flows from operating

activities vs - 257 M€ in H1 2010

- 576 M€ free cash flows vs - 319 M€ in H1 2010


Paul Hermelin



Capgemini Starting to Fully Benefit from Globalization

One of the fastest-growing players of the market

Engaged in an Operating Margin Transformation

New Big Deals with market leaders

Strong attraction driving +22% of recruitment pace YoY, headcounts reaching 114,000+ level (+5.1% compared to end 2010)

Successful 100% web-based advertising campaign + 600,000 unique visitors per month on our sites

Strong recognition of our combined Technology & Business expertise

Over-performing market growth in some Geographies like North America, and with Global Offers

Growth

Operating Margin

Blue chip clients

Recruitments

Brand Awareness

Alliances

Portfolio



2011 Guidance

Year on year reported revenue growth:

+ 9 to +10 %

Operating margin rate improvement:

between 0.5 and 1 point vs. 2010



Back up2011 Half Year Results



2 052

2 1592 105

2 381 2 350 2 406

1400

1600

1800

2000

2200

2400

2600

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

Q1 2010 Q2 2010 H1 2010 Q3 2010 Q4 2010 H2 2010 FY 2010 Q1 2011 Q2 2011 H1 2011

In M€ (Published) 2 052 2 159 4 211 2 105 2 381 4 486 8 697 2 350 2 406 4 756

Sequential Current Growth 5.2% - 2.5% 13.1 % - 1.3% 2.4 % 6.0 %

Sequential Organic Growth 2.1% - 0.8% 7.5 % - 2.3% 4.1 % 3.3 %

Year-on-Year Current Growth 14.5 % 11.4 % 12.9 %

Year-on-Year Organic Growth 6.3 % 8.4 % 7.4 %

(in M€)

Revenues Quarterly Evolution



Current Organic

Current SequentialYear on

yearSequential

Year on year

(in M€) H1 2010 H2 2010 H1 2011H1 11 /

H2 10

H1 11 /

H1 10

H1 11 /

H2 10

H1 11 /

H1 10

North America 804 861 869 1.0% 8.2% 5.8% 12.1%

France 981 950 1 039 9.3% 5.8% 9.3% 5.8%

UK & Ireland 923 989 987 -0.2% 6.9% 2.3% 5.2%

Benelux 645 669 642 -4.0% -0.4% -4.0% - 2.0%

Rest of Europe, Asia & Latin America

858 1 017 1 219 19.8% 42.0% 1.6% 13.3%

TOTAL 4 211 4 486 4 756 6.0% 12.9% 3.3% 7.4%

Benelux

North America

UK &

Ireland

France

Rest of Europe,

Asia & Latin

America

18.3%

20.8%

13.5%

21.8%

25.6%

H1 2011 Revenues by Main Geography



Current Current Organic

Q2 2010 Q1 2011 Q2 2011

Sequential Year on year Sequential Year on year

(in M€)Q2 11/

Q1 11

Q2 11/

Q2 10

Q2 11/

Q1 11

Q2 11/

Q2 10

North America 433 424 445 5.1% 3.0% 10.2% 14.1%

Europe and Asia

of which :1 726 1 926 1 961 1.8% 13.6% 2.8% 7.2%

France 493 524 515 - 1.9% 4.3% -1.9% 4.3%

UK & Ireland 470 479 508 6.2% 8.2% 9.8% 10.1%

Benelux 327 323 319 - 1.3% - 2.5% - 1.3% - 4.0%

Southern Europe & Latin America

124 225 236 5.3% 91.9% 5.7% 14.1%

Nordic 134 158 161 1.4% 19.5% 2.4% 14.4%

Germany & Central Europe

132 157 155 - 1.3% 17.5% -1.5% 6.4%

Asia Pacific 46 60 67 10.6% 44.0% 12.6% 39.8%

TOTAL 2 159 2 350 2 406 2.4% 11.4% 4.1% 8.4%

Q2 2011 Revenues by Geography



Current Current Organic

H1 2010 H2 2010 H1 2011

Sequential Year on year Sequential Year on year

(in M€)H1 11/

H2 10

H1 11/

H1 10

H1 11/

H2 10

H1 11/

H110

North America 804 861 869 1.0% 8.2% 5.8% 12.1%

Europe and Asia

of which :3 407 3 625 3 887 7.2% 14.1% 2.7% 6.4%

France 981 950 1 039 9.3% 5.8% 9.3% 5.8%

UK & Ireland 923 989 987 - 0.2% 6.9% 2.3% 5.2%

Benelux 645 669 642 - 4.0% -0.4% - 4.0% - 2.0%


240 359 461 28.1% 92.5% - 8.8% 14.2%

Nordic 270 273 319 16.9% 18.0% 13.8% 10.3%


262 272 312 15.0% 19.0% 4.8% 7.4%

Asia Pacific 86 113 127 12.1% 46.9% 9.5% 37.2%

TOTAL 4 211 4 486 4 756 6.0% 12.9% 3.3% 7.4%

H1 2011 Revenues by Geography



Q2 Revenues by Geography


Q2 2010

6.3%15.0%

6.6%

20.8%

17.6%

22.3%

2.1%

9.3%

Benelux

North

America

UK

& Ireland

Nordic

Germany

& Central

Europe

France

Southern

Europe

& Latin

America

Asia

Pacific

6.7%13.3%

6.4%

21.1%

18.5%

21.4%

2.8%

9.8%

Q2 2011

Benelux

North

America

UK

& Ireland

Nordic

Germany

& Central

Europe

France

Southern

Europe

& Latin

America

Asia

Pacific



H1 Revenues by Geography

6.7%13.5%

6.5%

20.8%

18.3%

21.8%

2.7%

9.7%


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

6.5%14.8%

6.6%

21.2%

17.5%

22.2%

2.1%

9.1%

H1 2011



H1 Revenues by Discipline

3.9%

17.9% 5.6%

41.3%

15.2%16.1%


H1 2010

17.6%

3.4%

40.5%

16.1%16.3%

6.1%

Consulting

Services

Technology

Services

Local

Professional

Services

Business

Process

Outsourcing

H1 2011

Application

Management

Infrastructure

Services

Consulting

Services

Technology

ServicesLocal

Professional

Services

Business

Process

Outsourcing

Application

Management

Infrastructure

Services



10.7%

20.5%

4.7%

25.2%

9.0%

12.5%

Energy, Utilities &

Chemicals

Financial

Services

Others

Public Sector

Telecom,

Media &

Entertainment

Customer products,

retail, distribution &

transportation

H1 Revenues by Sector


10.8%

19.4%

4.5%

26.6%8.1%

18.0%

Energy, Utilities &

Chemicals

Financial

Services

Others

Public Sector

Telecom,

Media &

Entertainment

12.6%

17.4%Manufacturing


Customer products,

retail, distribution &

transportation

Manufacturing

H1 2010

H1 2011


June 10 Sept 10 Dec 10 Mar 11 June 11June 11/

June 10

June 11/

Dec. 10

Consulting Services 3 719 3 424 3 654 3 400 3 333 - 10.4% - 8.8%

Technology Services 44 271 47 850 51 453 50 577 52 096 17.7% 1.2%

Outsourcing Services 29 447 30 900 34 744 38 881 39 252 33.3% 13.0%

Local Professional Services 17 950 18 488 18 645 18 974 19 295 7.5% 3.5%

TOTAL GROUP* 95 586 100 856 108 698 112 127 114 274 19.6% 5.1%

* including not classified headcount

Evolution of Headcount by Business



Headcount by Geography

UK & IRELAND :

• Opening: 8 515

• Closing: 8 688

• Change in Person: +173

• Change in %: +2.0%

Southern Europe & Latin America:

• Opening: 14 853

• Closing: 15 217



FRANCE :

• Opening: 20 277

• Closing: 20 570



BENELUX :

• Opening: 10 782

• Closing: 10 452

• Change in Person: -330

• Change in %: -3.1%

ASIA PACIFIC :

• Opening: 33 664

• Closing: 37 747

• Change in Person: +4 083

• Change in %: +12.1%

CENTRAL EUROPE :

• Opening: 7 928

• Closing: 8 396



TOTAL GROUP:

Opening: 108 698 Closing: 114 274 in P: +5 576 in %: +5.1%

NORDIC :

• Opening: 4 012

• Closing: 4 279



NORTH AMERICA :

• Opening: 8 667

• Closing: 8 925





Evolution of Group remuneration cost from H1 2010 to H1 2011

2011 Average salary increase onshore : 2.7%

2011 Average salary increase offshore: 7.4%

Despite increase in average remuneration cost in onshore and offshore units, it is the increase in offshore weight (from

31.6% in H1 2010 to 37.6% in H1 2011) which reduces the overall Group average remuneration cost.

At current rates and

perimeter

At constant rates

and perimeter

-

Excluding H1

2010 Bonus

reversal &

Holdings

-

Excluding H1

2010 Bonus

reversal &

Holdings

Average remuneration increase onshore - 1.0% - 1.7% + 3.6% + 2.8%

Average remuneration increase offshore + 2.2% + 2.2% + 5.0% + 5.0%

Group average remuneration costs evolution - 4.6% - 5.2% - 3.3% - 4.0%



0 H1 2010 H2 2010 H1 2011

(in M€) RevenuesOp.

Margin% Revenues

Op.

Margin% Revenues

Op.

Margin%

North America 804 34 4.3% 861 52 6.0% 869 70 8.1%

France 981 50 5.1% 950 77 8.2% 1 039 79 7.6%

UK & Ireland 923 67 7.3% 989 83 8.4% 987 61 6.1%

Benelux 645 59 9.1% 669 68 10.2% 642 40 6.2%


240 5 2.2% 359 14 3.7% 461 3 0.7%

Nordic 270 16 6.0% 273 20 7.2% 319 19 5.8%


262 21 7.9% 272 27 10.0% 312 19 6.0%

Asia Pacific 86 24 N/A 113 37 N/A 127 31 N/A

Not allocated (1) - 31 0 - 36 - 33

TOTAL 4 211 245 5.8% 4 486 342 7.6% 4 756 289 6.1%

(1) Items not allocated correspond to headquarters’ expenses


Operating Margin by Geography



Operating Margin Analysis by Destination

(in M€) H1 2010 H2 2010 H1 2011

Revenues 4 211 4 486 4 756

Cost of services rendered - 3 240 - 3 391 - 3 679

% of Revenues 76.9% 75.6% 77.3%

Gross Margin 971 1 095 1 077

% of Revenues 23.1% 24.4% 22.7%

Selling Expenses - 338 - 342 - 378

% of Revenues 8.1% 7.6 % 8.0%

General & Administrative Expenses - 388 - 411 - 410

% of Revenues 9.2% 9.2% 8.6%


% of Revenues 5.8% 7.6% 6.1%




(in M€) FY 2009 H1 2010 H2 2010 FY 2010 H1 2011

Restructuring costs

Of which :(213) (34) (37) (71) (32)

Workforce reduction (151) (23) (21) (44) (29)

Real estate assets streamlining (52) (8) (11) (19) (1)

Rightshoring (10) (3) (5) (8) (2)

Integration costs related to acquired companies (16) (4) (7) (11) (3)

Acquisition-related costs (1) (3) (4) (4)

Expenses relating to share subscriptions, share grants and stock options

(19) (7) (9) (16) (9)

Impairment of goodwill (12) - - - -

Other operating income 7 2 4 6 -

Other operating expense (9) (1) (1) (2) (1)

Other operating income and expense (262) (45) (53) (98) (49)

Other Operating Income and Expense



(in M€) H1 2010 H1 2011

Current income tax (39) (45)

Tax payable on profit (22) (23)

Tax not based on taxable income (17) (22)

Deferred income tax (22) (25)

Tax losses

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

France (25) (26)

Other regions (5) (4)

• Net reassessment of deferred tax assets on tax losses 7 18

France 0 8

Other regions 7 10

Temporary differences and change in tax rates 1 (13)

TOTAL INCOME TAX EXPENSE (61) (70)

Effective tax rate 38.0% 37.2%

Income Tax Expense



(In M€) H1 2010 H2 2010 H1 2011

Profit for the periodDepreciation, amortization and impairment of fixed assetsNet charges to provisionsGains and losses on disposals of assetsNet finance costsIncome tax expenseOther non-cash items

10182

51

2461

(12)

17794(7)

43063

5

11992

(15)7

2670

4

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

262

(35)(53)

(431)

366

(17)(6)

417

303

(42)(7)

(741)

Operating cash flowsCapital expenditure (net of proceeds)Acquisitions of companiesProceeds from issue of share capitalDividends paidNet proceeds/payments relating to treasury shares transactionsConvertible bonds through equityTranslation, perimeter changes & other

(257)(52)(90)

24(122)

(1)-

38

760(81)

(128)22

---

(319)

(487)(68)

(104)-

(154)3-

(84)

Change in net cash and cash equivalents (460) 254 (894)

Opening net cash and cash equivalents 1 269 809 1 063

Closing net cash and cash equivalents 809 1 063 169

Net Cash Evolution



ASSETS Dec. 31,2010

June 30, 2011 EQUITY & LIABILITIES Dec. 31,

2010June 30,

2011

Equity (attributable to owners of the company)Non-controlling interests

4 314

(7)

4 179

(17)

Goodwill 3 201 3 185 Total equity 4 307 4 162

Intangible assets 169 158 Long-term borrowings 1 102 629

Property, plant & equipment 499 505 Deferred taxes 178 181

Deferred taxes 891 849 Provisions for pensions and other post-employment benefits 804 742

Other non-current assets 115 133 Non-current provisions 13 18

Other non-current liabilities 279 274

Total non-current assets 4 875 4 830 Total non-current liabilities 2 376 1 844

Accounts & notes receivable 2 371 2 754 Short-term borrowings and bankoverdrafts 210 683

Income tax receivable 40 45 Accounts and notes payable 2 305 2 066

Other receivables 306 346 Advances from customers and billed in advance 576 519

Cash management assets 71 72 Current provisions 53 56

Cash and cash equivalents 2 305 1 419 Income tax payables 61 58

Other payables 80 78

Total current assets 5 093 4 636 Total current liabilities 3 285 3 460

Total Assets 9 968 9 466 Total Equity & Liabilities 9 968 9 466

(in M€)Balance Sheet



(in M€)

Equity(attributableto owners of

the Company)

Non-controllinginterests

Total Equity

Total equity as of January 1, 2011 4 314 (7) 4 307

Dividends paid out for 2010 (154) 0 (154)

Valuation of stock options and performance shares grants 9 0 9

Treasury shares 2 0 2

Put CPM-Braxis (2) 0 (2)

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 operationsOther

(117)

24(5)

1(137)

0

(2)

0000

(2)

(119)

24(5)

1(137)

(2)

Profit for the period 127 (8) 119

Total equity as of June 30, 2011 4 179 (17) 4 162

Equity



H1 2011

H1 2010(in M€) Intangible

assets

Property, plant &

equipmentTotal

December 31, n-1 169 499 668 537

Acquisitions/Increase 12 84 96 88

Internal developments 3 0 3 3

Disposals/Decrease (1) (2) (3) (12)

Amortization / Depreciation for the period

(27) (64) (91) (82)

Business combinations 7 0 7 12

Other movements & translation adjustments

(5) (12) (17) 33

June 30, n 158 505 663 579

Capex



Commitments given

• Non cancelable leases (mainly offices, vehicles, computers) € 791M

• Other commitments:

• Other commitments € 121M

• Covenants on OCEANE bonds and syndicated credit facilities Compliant

• Limited financial guarantees granted to customers € 651M

• Bank guarantees granted to customers € 63M

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

Off Balance Sheet Commitments as of June 30, 2011:

Off Balance Sheet Commitments



10.7%

20.5%

4.7%

25.2%

9.0%

17.4%

H1 2011 Revenues

Energy, Utilities &

Chemicals

Financial

Services

Others

Public Sector

Telecom,

Media &

Entertainment

MALS

H1 Revenues and Bookings by Sector

At budget rates

H1 11 / H1 10

Bookings Revenues

Financial Services 15.5% 13.7%

Energy, Utilities & Chemicals - 39.5% 6.6%

Manufacturing (MALS) 29.2% 4.1%

Customer products, retail, distribution & transportation (CPRDT)

- 3.2% 6.1%

Public Sector - 17.9% 1.4%

Telecom, Media & Entertainment 11.3% 20.4%

Others 41.2% 10.9%

TOTAL GROUP - 3.0% 7.4%

CPRDT

12.5%



Bookings Evolution by Discipline

1 462

850

1 786

1 270

1 337

1 099

1 840

1 143

1 632

790

1 921

862

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

Outsourcing

Consulting / Technology / Local Professional Services

2 312

3 056

2 436

2 983

2 422

2 783

At budget rates & constant perimeter

(in M€)




Q4 Bookings Revenues BBR

North America 350 302 1.16

Rest of the world 1 571 1 222 1.29

TOTAL 1 921 1 524 1.26

At budget rates

Q2 2011

Book to Bill


Q4 Bookings Revenues BBR

North America 731 578 1.27

Rest of the world 2 822 2 437 1.16

TOTAL 3 553 3 015 1.18

H1 2011

(in M€)



Growth analysis

+ 7.4%

+ 4.3%

+ 1.6%

+ 13.3%

- 0.4%

+ 12.9%

Organic

growth

CPM

Braxis

Other

acqui-

sitions

Constant

currency

growth

FX

impact

Reported

growth


2011 half year results - capgemini · 2011 half year results h1 key features influencing our...

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