2009 Fully Year financial results - capgemini.com€¦ · FY 2009 vs FY 2008 Revenues 8 710 4 376 3...

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Paris, 18 February 2010

2009 Full Year Financial Results

2009 Full Year Financial results


Firmly Sailing the Storm thanks to

i3 Outputs, Preparing for the Rebound

© 2009 Capgemini. All rights reserved

Financial analysts

2

Satisfactory resistance in 2009 thanks to a good management of cyclical activities; margin commitment delivered despite worsening environment

• A 8.7% revenue decrease in Q4 09, -6.7% excluding a large contract decrease

• Remarkable margin resistance capacity for Consulting activities at 11.4% margin over the year

• Satisfactory results in France in Technology Services with stable revenue

• Stringent management of salary average costs

• Tight headcount management allowed return to good utilization rates

Greater intimacy with strategic accounts bringing market share gains

Resilience strategy bearing fruit• Public sector at 28.1% of the Group revenues with a new footprint in North America

• Investment carried on in the Energy Utilities sector, 13% of the Group revenues

• Great achievements in Outsourcing: growth in 2009, 36.4% of the Group revenues and improved margin at 7.2%

Continuous offshore penetration, 28,000 people, 30.9% of headcount (+3.3 points)

Strong cash generation

Some key strengths to tackle 2010• In motion with a strong profitable growth program - ‘business as Unusual’

• Balance sheet further strengthened in 2009

• High confidence of managers and employees in the Group future - successful BSAAR and ESOP plan



Income Statement Overview


Financial analysts

3

(in M€) FY 2008 H1 2009 H2 2009 FY 2009FY 2009

vs

FY 2008

Revenues 8 710 4 376 3 995 8 371 -3.9 %

Operating expenses -7 966 -4 089 -3 687 -7 776

Operating Margin 744 287 308 595

(% Revenues) 8.5% 6.6% 7.7% 7.1% - 1.4 pts

Other operating income 20 - 7 7

Other operating expenses - 178 - 120 - 149 - 269

Operating profit 586 167 166 333

(% Revenues) 6.7% 3.8% 4.2% 4.0% - 2.7 pts

Net finance expense - 19 - 39 - 54 - 93

Income tax expense - 116 - 50 - 11 - 61

Share of profit of associates - - - 1 - 1

Profit for the period 451 78 100 178

(% Revenues) 5.2% 1.8% 2.5% 2.1% - 3.1 pts

Net cash and cash equivalents (end of period)

774 576 1 269 1 269

Number of employees (end of period) 91 621 89 453 90 516 90 516




Financial analysts

4

6.7%

16.9%

40.0%

36.4%

At constant rates and perimeter

Technology

Services

Outsourcing

Services

Local Professional

Services

FY 09 / FY 08

Consulting Services - 14.7%

Technology Services - 7.4%

Local Professional Services - 8.3%

CS / TS / LPS - 8.4%

Outsourcing Services 0.3%

TOTAL GROUP - 5.5%

2009 Revenues by Discipline

Consulting

Services




Financial analysts

5

Current Current Organic

(in M€) FY 2008 FY 2009FY 09 /

FY 08

FY 09 /

FY 08

North America 1 668 1 590 - 4.7% - 8.5%

France 2 077 1 949 - 6.1% - 6.1%

UK & Ireland 1 922 1 852 - 3.6% 7.5%

Benelux 1 303 1 397 7.3% - 12.9%

Rest of Europe, Asia & Latin America 1 740 1 583 - 9.1% - 7.6%

TOTAL 8 710 8 371 - 3.9% - 5.5%

Benelux

North America

UK

& Ireland

France

Rest of Europe,

Asia & Latin

America

19.0%

22.1%

16.7%

23.3%

18.9%

2009 Revenues by Main Geography



13.0%

6.9%28.1%

8.0%

27.5%

16.5%

At budget rates

Energy, Utilities &

Chemicals

Financial

Services

Other

Public Sector

Telecom,

Media &

Entertainment

Manufacturing, Retail

& Distribution

2009 Revenues by Sector

2009/2008

Bookings Revenues

Financial Services

Energy, Utilities & Chemicals

Manufacturing, Retail & Distribution

Public Sector

Telecom, Media & Entertainment

Other

- 14.6%

31.1%

- 13.1%

13.6%

- 9.7%

- 13.8%

- 14.3%

- 8.7%

- 5.7%

9.4%

- 20.8%

- 4.2%

TOTAL - 1.8% - 5.3%


Financial analysts

6




Financial analysts

7

Bookings Evolution by Discipline

1 689

565

1 784

455

1 389

658

1 653

1 259

1 518

756

1 539

620

1 277

704

1 603

1 263

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09

Outsourcing

Project & Consulting

2 254 2 2392 047

2 912

2 2742 159

At constant rates & perimeter

(in M€)

1 981

2 866




Financial analysts

8

Consulting / Technology / Local Professional Services

Q4 Bookings Revenues BBR

North America 276 242 1.14

Rest of the world 1 327 1 133 1.17

TOTAL 1 603 1 375 1.17

Q4 2009

Book to Bill Evolution

Consulting / Technology / Local Professional Services

Q4 Bookings Revenues BBR

North America 1 135 1 007 1.13

Rest of the world 4 802 4 472 1.07

TOTAL 5 937 5 479 1.08

FY 2009

At budget rates

(in M€)




Financial analysts

9

Current Organic

Current sequentialyear on

yearsequential

year on year

(in M€) Q4 2008 Q3 2009 Q4 2009Q4 09 /

Q3 09

Q4 09 /

Q4 08

Q4 09 /

Q3 09

Q4 09 /

Q4 08

North America 455 388 366 - 5.5% - 19.4% - 2.8% - 10.8%

France 540 431 509 18.0% - 5.7% 17.3% - 5.7%

UK & Ireland 452 450 431 - 4.3% - 4.7% - 0.3% 3.1%

Benelux 345 325 338 4.1% - 2.0% 4.1% - 20.4%

Rest of Europe, Asia & Latin America

446 352 405 15.1% - 9.1% 14.3% - 10.4%

TOTAL 2 238 1 946 2 049 5.3% - 8.4% 6.6% - 8.7%

Benelux

North America

UK

& Ireland

France

Rest of Europe,

Asia & Latin

America

17.9%

21.0%

16.5%

24.8%

19.8%

Q4 2009 Revenues by Main Geography




Financial analysts

10

Sequential Year on year

Q4 09 / Q3 09 Q4 09 / Q4 08

Consulting Services 8.9% - 15.5%

Technology Services 9.9% - 13.0%

Local Professional Services 11.7% - 8.9%

CS / TS / LPS 10.3% - 12.2%

Outsourcing Services 0.6% - 1.7%

TOTAL GROUP 6.6% - 8.7%


Q4 2009 Growth by Discipline



71

6867

6365

63

6767

50

60

70

80

90

8283 83 83

81 81 8182

7981 80 80

77

8081

78


Financial analysts

11

Consulting Services Technology Services Local Professional Services

At constant perimeter

(%)

Utilization Rates by Discipline

Q1 Q2 Q4

2008 2009

Q3 Q1 Q2 Q4Q3 Q1 Q2 Q4

2008 2009

Q3 Q1 Q2 Q4Q3 Q1 Q2 Q4

2008 2009

Q3 Q1 Q2 Q4Q3




Financial analysts

12

800

900

1000

1100

1200

400

500

600

400

500

Consulting Services

Technology Services

Local Professional Services

(in €)

Charge-out Rates

1 169 1 171 1 162 1 169

1 1371 113

1 0111 030

511 508489

511498 497

464

482

Q1 Q2 Q2Q4

2008 2009

Q3 Q1 Q3 Q4

474481 481 484

477 479470

477


Q1 Q2 Q2Q4

2008 2009

Q3 Q1 Q3 Q4

Q1 Q2 Q2Q4

2008 2009

Q3 Q1 Q3 Q4



Onshore – Offshore Headcount Evolution


Financial analysts

13

63 675 63 995 63 74064 135

66 34665 456

64 42663 415

62 512

19 83320 571

22 74723 997

25 275 25 609 25 02725 863

28 004

18000

23000

28000

33000

38000

50000

55000

60000

65000

Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09

Onshore (LHS) Offshore (RHS)

BAS acquisition +2,165




Financial analysts

14

Headcount as of Dec. 31, 2008 91 621

Recruits * 13 072

Acquisitions / Outsourcing Deals ** 543

Disposals - 250

Layoffs - 5 003

Leavers - 9 467

Headcount as of Dec. 31, 2009 90 516

(*) of which 5 762 in India

2 139 in other offshore locations

(**) out of which 207 for IACP

161 on Warner Bros projects

Attrition YTD Dec 08 Dec 09

Consulting Services 20.7% 13.7%

Technology Services 17.4% 9.9%

Outsourcing Services 15.0% 10.2%

Local Professionnal Services 18.3% 9.9%

Total Disciplines 17.1% 10.2%

Headcount Evolution

60% Offshore



0%

10%

20%

30%

40%

50%

60%

70%

Global CC NA TS TS Northern Europe

TS Central Europe

TS Southern Europe

Outsourcing Sogeti FS & Asia Group

2.5%

56.6%

24.0%

16.8%

9.9%

48.3%

5.1%

66.8%

28.5%

4.7%

55.8%

26.5%

18.2%

9.6%

55.0%

6.0%

67.8%

32.1%

December 2008 December 2009


Financial analysts

15

Further Offshore Leverage in 2009, Mainly in OS and FS

Offshore Penetration per unit




Financial analysts

16

Evolution of Group Remuneration Cost from

2008 to 2009

2009 Average salary increase onshore : 1.5%

Average remuneration decrease onshore: - 3.3%(incl. currency effects)

2009 Average salary increase offshore: 2.8%

Average remuneration decrease offshore : - 9.7%(incl. currency effects)

Group average remuneration cost evolution : - 5.9%(incl. currency effects)

Neutralizing the impact of major currencies evolution (USD appreciation and depreciation of GBP,

INR and PLN) compared to Euro : Group average remuneration cost still decreases by -4.6%

(Onshore : - 1.9%, Offshore : - 2.5%)

Increase in offshore weight in the average headcount (from 25.3% in 2008 to 27.8% in 2009) reduces

the overall Group average remuneration cost



© 2009 Capgemini. All rights reserved 17

(in M€)FY

2008H1

2009H2

2009FY

2009

Revenues 8 710 4 376 3 995 8 371

Personnel costs - 4 940 - 2 588 - 2 263 - 4 851

% of Revenues 56.7% 59.1% 56.6% 58.0%

Purchase and subcontracting expenses - 2 138 - 1 074 - 1 008 - 2 082

% of Revenues 24.6% 24.6% 25.2% 24.9%

Travel expenses - 389 - 175 - 155 - 330

% of Revenues 4.5% 4.0% 3.9% 3.9%

Rent and local taxes - 286 - 153 - 151 - 304

% of Revenues 3.3% 3.5% 3.8% 3.6%

Depreciation, amortization, provisions and net result from disposals of fixed assets

- 213 - 99 - 110 - 209

% of Revenues 2.4% 2.2% 2.8% 2.5%

Total operating expenses - 7 966 - 4 089 - 3 687 - 7 776

% of Revenues 91.5% 93.4% 92.3% 92.9%

10.7%7.0%

76.1%

7.4%

Cost of services

rendered

Operating

Margin

Selling

9.3%7.5%

7.1%

G&AAt current rates and perimeter

Operating Margin AnalysisFY 2009

Operating

Margin9.8%

7.3%

74.4%

8.5%

G&A

Cost of services

rendered

Selling

FY 2008

Financial analysts




At current rates and perimeter

(1) Items not allocated correspond to headquarters’ expenses

Operating Margin by Main Geography

FY 2008 FY 2009

(In M€) RevenuesOp.

Margin% Revenues

Op.

Margin%

North America 1 668 91 5.5% 1 590 77 4.9%

France 2 077 148 7.1% 1 949 121 6.2%

UK & Ireland 1 922 164 8.5% 1 852 165 8.9%

Benelux 1 303 183 14.0% 1 397 122 8.7%

Rest of Europe, Asia &

Latin America1 740 216 12.4% 1 583 165 10.4%

Not allocated (1) - - 58 - - - 55 -

TOTAL 8 710 744 8.5% 8 371 595 7.1%

Financial analysts

18




Financial analysts

19

FY 2008 H1 2009 H2 2009 FY 2009

Consulting Services

Technology Services

Local Professional Services

CS / TS / LPS

Outsourcing Services

12.8%

10.2%

12.9%

11.3%

5.4%

10.6%

6.2%

9.1%

7.5%

6.7%

12.4%

7.6%

10.2%

8.8%

7.7%

11.4%

6.9%

9.7%

8.1%

7.2%

Total Operations (*) 9.2% 7.2% 8.4% 7.8%

GROUP 8.5% 6.6% 7.7% 7.1%


(*) before headquarters’ expenses

Operating Margin by Discipline




Financial analysts

20

(in M€) FY 2008 FY 2009

Operating Margin 744 595

Other operating income 20 7

Other operating expenses - 178 - 269

of which Restructuring costs

Stock options, performance shares and @ESOP

- 103

- 22

-213

-19

Net finance expense - 19 - 93

Income tax expense - 116 - 61

Share of profit of associates - - 1

Profit for the year 451 178

Earning per share as of Dec. 31st (non diluted) - in € 3.09 1.16

Net Profit Analysis



Balance Sheet


Financial analysts

21

ASSETS Dec. 31,2008

Dec. 31,

2009EQUITY AND LIABILITIES Dec. 31,

2008

Dec. 31,

2009

Goodwill 2 726 2 750 Equity 3 939 4 213

Intangible assets 140 116 Long-term borrowings 987 1 057

Property, plant and equipment 422 421 Deferred taxes 138 153

Deferred taxes 863 887 Provisions for pensions and other post-employment benefits 503 680

Other non-current assets 91 112 Non-current provisions 45 21

Other non-current liabilities 112 95

Total non-current assets 4 242 4 286 Total non-current liabilities 1 785 2 006

Accounts and notes receivable 2 396 2 067 Short-term borrowings and bankoverdrafts 47 278

Other receivables and income tax 223 257 Accounts and notes payable 2 096 2 026

Short-term investments 1 290 2 109 Advances from customers and billed in advance 639 567

Cash at bank 578 494 Current provisions 20 28

Other payables and income tax 203 95

Total current assets 4 487 4 927 Total current liabilities 3 005 2 994

Total Assets 8 729 9 213 Total Equity and Liabilities 8 729 9 213

(in M€)



595

774

Cash net of

Debt

31.12.08

2009Operating

Margin

2009BonusAccrual (net)

Amorti-zation

andprovisions

Paymentbonus2008

CAPEX Paymentof

restruc-turing

Other Working Capital

evolution (excl. bonus

effect)

Acqui-sitions

Cash Net of Debt

31.12.2009

Taxpaid

ExchangeRate

Differences

Dividends& treasury

shares

Impactof

Oceane

744 333 93 - 319 - 177 - 126 - 41 -94 - 167 - 218 10FY

2008

Comparable

Cash bef.non

Operationalitems

- 284

347 M€ operational flow vs 413 M€ in 2008

(in M€)

Net Cash Evolution70

328

161

185 139

1 176

135225

1 269

13

Increasein

capital

Netinterest

29 - 27 (*)

4 20

(*) to be added in 2008, +129 M€ of carry back impact

273

56 55


Financial analysts

22



Market Still Soft in Early 2010,

Opened Perspectives


Financial analysts

23

Slow start of our activities impacted by 2009 elements Two large contracts evolution impact H1 2010 growth by 3.3 points

H2 2009 price decreases on-going impact

Lower onshore headcounts level not fully compensated by offshore growth

Demand still shy but some early signs of market turnaround Price stabilization in Consulting activities and in most Technology Services operations

Attrition picking up in some geographies like North America, India and in Consulting activities

Strong TS funnel led by sizeable deals (10-50M€)

Financial sector back in growth mode

• Strong traction with significant spending increase, notably in North America

• Offshore hiring resumed in Q409 (950 recruits in Nov-Dec) and a growing interest from clients to experience offshore

Consulting clients not any more in full cost cutting mode, some hot offers:

• Lean with double-digit growth, Shared Services, Post Merger Integration, Technology Transformation

Some encouraging signs in North America

• A 1.13 book-to-bill ratio in Q4, +38.6% YoY bookings in system integration

• Some key Technology services deals won with the US Army and with the State of Nevada (tax management)



Tackling 2010 with Agile Resources Management


Financial analysts

24

Offshore penetration in 2010

Back to recruitments, continuing on industrialization

4.3%

23.4%

13.9%7.6%

60.2%

36.4%32.1%

6%

55%

67.8%

9.6%

18.2%

4.7%

55.8%

26.5%

55.9%

67.5%

27.9%

Consulting North

America

TS1 TS2 TS3 FIA Sogeti Outsourcing Total

Group Dec 09 Dec10

Net Recruits / Leavers

284603

993

-1 000

0

1 000

2 000

Oct Nov Dec

Recruits

Leavers

Net

Net hiring resumed as of Q4 09,

early 2010 showing same trend

• 650 recruits onshore,

1.000 offshore in January 2010 only

Continuing to strengthen

offshore strategy in all units



Our Top Priorities to Win

the Profitable Growth Battle


Financial analysts

25

Run of our ‘business as Unusual’ program launchedin Nov 09

Focus on five global service lines to address high-growth market segments

Reengineer our delivery using Lean methods

1Continue to improve our resilience by leveraging Outsourcing

2

3Invest in new growth levers

Ready for acquisitions

New clients’ needs, convergence of technology innovation and offer development (pay-per-use contracts…)



A Strong Outsourcing Business

at the Heart of the Group


Financial analysts

26

led by stronger offshore leveragewith increasing profitability…

Operating Margin

3,1%

4,7%

5,4%

2%

4%

6%

2006 2007 2008

A dynamic business, already bringing more than 36% of the Group revenue

YE 2007 YE 2008 YE 2009

55%48%

41%

7,2%

2009

Good signing and renewals in Q4 09 and early 2010

• In the UK: Environment Agency (with TS), House of Fraser,

• In North America: Smith and Nephew, Warner Bros, Ontario Power Generation (5 years renewal)

• In France: Renault

• In the Netherlands: Dutch Ministry of Agriculture, Telfort, Maxeda

BPO dynamism with 2009 deals transitions (e.g. Bunge, Syngenta) and ramp-up of 2010 signed deals,

Kraft contract signed in North America

Largely offsetting mega deals decrease



Top Line Push with High Sales Force

Mobilization on our 5 Global Service Lines


Financial analysts

27

Business Information Management Gaining insights from information stored in business applications by

helping the enterprises to retain, organize and analyze their data

Application Lifecycle Services Complete approach to running, managing and developing applications in

a cost-effective manner

Testing Services Proven approach to highly industrialized software testing and quality

assurance, maximizing the IT systems ROI

Smart Energy Services Provide utility companies with more intelligent and efficient generation,

transmission and distribution capabilities

Infostructure Transformation Services 4 cloud solutions to redesign and realign an organization’s core

information

• Data center Optimization; Virtualization; Cloud Computing and Services; and Unified Communications

Oct 09

Dec 09

Feb

March

March

Dynamic go-to-market plans and specific push to strategic accounts

Launch dates

Win at KPN in the Netherlands

Nearly 20% BIM offshore headcount growth in Q1 2010

Win at Bouygues Telecom, an Outsourcing deal in France

Win at Fortum in Sweden



Going further on Delivery Management

for Increased Competitiveness


Financial analysts

28

6 ERP and ALS pilot projects launched since Q4 2009

Early results bringing up significant cost reduction potential

• Increased offshore leverage

• Streamlined issue management

• Advanced application performance monitoring techniques to predict

and correct application performance issues

• Application of standard tools in reporting and controlling

• Improved project governance bringing client intimacy, particularly in work

planning and prioritization

Immediate implementation from Q2 2010

• Implementation acceleration over the year and for 2011

• Development of a Lean ambassadors community in the field

Target: secure the double-digit margin ambition

Delivery methods

reengineered with

Lean principles



Preparing Next Growth Steps Leveraging

the Market Appetite for Technologies


Financial analysts

29

Improving our business expertise and reinforcing our solution portfolio• Global procurement service offering, including software-as-a-service purchasing technology,

thanks to the recent IBX acquisition

Reinforcing our presence in strategic geographies• North America

• Emerging markets

‘Managed services’, answering growing client needs for flexibility and move from Capex to Opex, with greater proportion of pay-per-use/ per transaction contracts

Further sector specific initiatives to leverage our sector expertise and go-to-market • e.g. in the Financial sector or cloud-government services (government-in-a-box, eBorders,

BIM services around public security, Citizen Service Platform)

Selective

acquisitions

Offer

development

Innovation and Industrialization will be key drivers

once confidence is back



Capgemini Has Already Positioned

its Profitable Growth Model


Financial analysts

30

SHAPE

InnovationIndustrialization

Growth

LEAD

Application Life cycle Services

Testing Services

ITS Cloud

Managed Services

Business Information Management

Smart Energy Services

From IT… …to business technology



2010 Outlook


Financial analysts

31

Revenues: - 2 to - 4 % like for like

Operating margin: 6.0 to 6.5 %

Dividend: € 0.80 per share

Back Up




Financial analysts

33

2 185 2 189

2 098

2 2382 205

2 171

1 946

2 049

1 700

1 900

2 100

2 300

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09

Q1 2008 Q2 2008 H1 2008 Q3 2008 Q4 2008 H2 2008 FY 2008 Q1 2009 Q2 2009 H1 2009 Q3 2009 Q4 2009 H2 2009 FY 2009

In M€ (Published) 2 185 2 189 4 374 2 098 2 238 4 336 8 710 2 205 2 171 4 376 1 946 2 049 3 995 8 371

Sequential Current Growth 0.2% -4.1% 6.6% -1.5% -1.5% 0.9% -10.4% 5.3% -8.7% -3.9%

Sequential Organic Growth 2.1% -4.8% 6.2% -3.2% -1.7% -1.1% -10.1% 6.6% -7.9% -5.5%

Year-on-Year Current Growth 0.9% -0.8% 0.1% -7.3% -8.4% -7.9% -3.9%

Year-on-Year Organic Growth 0.0% -3.7% -1.8% -9.1% -8.7% -8.9% -5.5%

(in M€)

Revenues Quarterly Evolution




Financial analysts

34


Q4 2008 Q3 2009 Q4 2009

SequentialYear on

yearSequential

Year on year

(in M€) Q4 09 / Q3 09Q4 09 / Q4

08Q4 09 / Q3 09

Q4 09 / Q4 08

North America 455 388 366 -5.5% -19.4% -2.8% -10.8%

Europe, Asia & Latin America

of which :

1 783 1 558 1 683 8.0% -5.6% 8.9% -8.3%

France 540 431 509 18.0% -5.7% 17.3% -5.7%

UK & Ireland 452 450 431 -4.3% -4.7% -0.3% 3.1%

Benelux 345 325 338 4.1% -2.0% 4.1% -20.4%

Germany & Central Europe

150 124 130 4.6% -13.5% 4.6% -15.4%

Nordic countries 143 98 128 30.3% -10.4% 29.8% -10.8%

Southern Europe & Latin America

116 99 111 13.2% -3.9% 13.0% -3.9%

Asia Pacific 37 31 36 15.2% -3.4% 9.0% -8.9%

TOTAL 2 238 1 946 2 049 5.3% -8.4% 6.6% -8.7%

Q4 2009 Revenues by Geography




Financial analysts

35


H2 2008 H1 2009 H2 2009

SequentialYear on

yearSequential

Year on year

(in M€) H2 09 / H1 09H2 09 /

H2 08H2 09 / H1 09

H2 09 /

H2 08

North America 857 836 754 - 9.8% - 12.0% - 3.4% - 9.1%


of which :

3 479 3 540 3 241 - 8.4% - 6.8% - 8.9% - 8.8%

France 1 020 1 009 940 - 6.8% - 7.9% - 6.9% - 7.7%

UK & Ireland 934 972 880 - 9.4% - 5.7% - 10.0% 2.3%

Benelux 671 734 663 - 9.7% - 1.1% - 9.7% - 19.5%

Germany & Central Europe 301 277 254 -8.1% - 15.4% - 8.4% - 16.5%

Nordic countries 269 262 226 - 13.8% - 16.0% - 16.8% - 14.0%


219 223 211 - 6.0% - 4.0% - 6.1% - 3.6%

Asia Pacific 65 63 67 7.4% 2.3% 5.5% - 1.8%

TOTAL 4 336 4 376 3 995 - 8.7% - 7.9% - 7.9% - 8.9%

H2 2009 Revenues by Geography




Financial analysts

36


(in M€) FY 2008 FY 2009 FY 2009 / FY 2008

North America 1 668 1 590 -4.7% - 8.5%


of which :

7 042 6 781 - 3.7% - 4.7%

France 2 077 1 949 - 6.1% - 6.1%

UK & Ireland 1 922 1 852 -3.6% 7.5%

Benelux 1 303 1 397 7.3% - 12.9%

Germany & Central Europe 592 531 - 10.3% - 11.0%

Nordic countries 578 488 - 15.7% - 9.9%


449 434 - 3.3% - 3.6%

Asia Pacific 121 130 6.7% 4.4%

TOTAL 8 710 8 371 - 3.9% - 5.5%

2009 Revenues by Geography




Financial analysts

37

2009 Revenues by Geography

5.8%16.7%

6.3%22.1%

19.0%

23.3%

1.6%

5.2%

6.1%18.1%

6.7%

19.5%

19.7%

23.4%

1.4%

5.1%


Benelux

North

America

UK

& Ireland

Nordic

Countries

Germany

& Central

Europe

France

Southern

Europe

& Latin

America

Asia

Pacific

Benelux

North

America

UK

& Ireland

Nordic

Countries

Germany

& Central

Europe

France

Southern

Europe

& Latin

America

Asia

Pacific

FY 2008

FY 2009




Financial analysts

38

17.5%7.4%

40.8%34.3%


16.9%6.7%

40.0%36.4%

Consulting

Services

Technology

Services

Outsourcing

Services

Local Professional

Services

Consulting

Services

Technology

Services

Outsourcing

Services

Local Professional

Services

2009 Revenues by Discipline

FY 2008

FY 2009



13.0%

6.9%

28.1%

8.0%

27.5%

16.5%


Energy, Utilities &

Chemicals

Financial

Services

Other

Public Sector

Telecom, Media &

Entertainment

Manufacturing, Retail &

Distribution

2009 Revenues by Sector

13.5%

6.9%24.3%

9.5%

27.6%

18.2%

Energy, Utilities &

Chemicals

Financial

Services

Other

Public Sector

Telecom, Media &

Entertainment

Manufacturing, Retail &

Distribution

FY 2008

FY 2009


Financial analysts

39




Financial analysts

40

June 08 Dec. 08 June 09 Dec. 09Dec. 09 /

Dec. 08

Dec. 09 /

June 09

Consulting Services 4 924 4 407 4 190 3 918 - 11.1% - 6.5%

Technology Services 37 970 40 340 38 344 39 555 - 1.9% 3.2%

Outsourcing Services 24 229 26 397 27 383 28 184 6.8% 2.9%

Local Professional Services 19 737 20 216 19 300 18 628 - 7.9% - 3.5%

TOTAL GROUP * 86 487 91 621 89 453 90 516 - 1.2% 1.2%

* including not classified Headcount

Evolution of Headcount by Discipline



Headcount by GeographyNORTH AMERICA :

• Opening: 8,379

• Closing: 8,100

• Change in Person: - 279

• Change in %: - 3.3 %

UK & IRELAND :

• Opening: 7 985

• Closing: 7 844


• Change in %: -1,8 %

ITALY :

• Opening: 1 462

• Closing: 1 510

• Change in Person: + 48

• Change in %: + 3,3%

IBERIA & Latin America:

• Opening: 6 451

• Closing: 6 604


• Change in %: +2,4%

FRANCE :

• Opening: 21 392

• Closing: 20 032

• Change in Person: - 1 360

• Change in %: - 6,4%

BENELUX :

• Opening: 12 291

• Closing: 11 163

• Change in Person: - 1 128

• Change in %: - 9,2%

ASIA PACIFIC :

• Opening: 22 078

• Closing: 24 008

• Change in Person: + 1 930

• Change in %: + 8,7 %

CENTRAL EUROPE :

• Opening: 7 534

• Closing: 7 724


• Change in %: + 2,5 %

NORDIC :

• Opening: 4,049

• Closing: 4,008


• Change in %: - 1.0 %

TOTAL GROUP:

Opening: 91 621 Closing: 90 516 D in P: - 1 105 D in %: - 1,2 %

NORTH AMERICA :

• Opening: 8 379

• Closing: 7 950


• Change in %: - 5,1 %

NORDIC :

• Opening: 4 049

• Closing: 3 681

• Change in Person: -368

• Change in %: - 9,1 %


Financial analysts

41




Financial analysts

42

0 FY 2008 H1 2009 H2 2009 FY 2009

(in M€) RevenuesOp.

Margin% Revenues

Op.

Margin% Revenues

Op.

Margin% Revenues

Op.

Margin%

North America 1 668 91 5.5% 836 44 5.3% 754 33 4.4% 1 590 77 4.9%

France 2 077 148 7.1% 1 009 49 4.9% 940 72 7.7% 1 949 121 6.2%

UK & Ireland 1 922 164 8.5% 972 79 8.2% 880 86 9.8% 1 852 165 8.9%

Benelux 1 303 183 14.0% 734 56 7.6% 663 66 10.0% 1 397 122 8.7%

Germany & Central Europe

592 82 13.9% 277 31 11.1% 254 20 7.9% 531 51 9.7%

Nordic countries 578 55 9.5% 262 20 7.5% 226 15 6.6% 488 35 7.3%


449 23 5.2% 223 7 3.1% 211 3 1.4% 434 10 2.3%

Asia Pacific 121 56 N/A 63 30 N/A 67 39 N/A 130 69 N/A

Not allocated (1) - 58 - 29 - 26 - 55

TOTAL 8 710 744 8.5% 4 376 287 6.6% 3 995 308 7.7% 8 371 595 7.1%

(1) Items not allocated correspond to headquarters’ expenses


Operating Margin by Geography




Financial analysts

43

Operating Margin Analysis

by Destination

(in M€) FY 2008 H1 2009 H2 2009 FY 2009

Revenues 8 710 4 376 3 995 8 371

Cost of services rendered - 6 478 - 3 345 - 3 021 - 6 366

% of Revenues 74.4% 76.4% 75.6% 76.1%

Gross Margin 2 232 1 031 974 2 005

% of Revenues 25.6% 23.6% 24.4% 24.0%

Selling Expenses - 632 - 338 - 291 - 629

% of Revenues 7.3% 7.7% 7.3% 7.5%

General & Administrative Expenses - 856 - 406 - 375 - 781

% of Revenues 9.8% 9.3% 9.4% 9.3%

Operating Margin 744 287 308 595

% of Revenues 8.5% 6.6% 7.7% 7.1%





Financial analysts

44

(in M€) FY 2008 H1 2009 H2 2009 FY 2009

Restructuring costs

Of which :(103) (102) (111) (213)

People (68) (80) (71) (151)

Transition to Offshore (14) (4) (6) (10)

Buildings (21) (18) (34) (52)

Integration costs (7) (5) (11) (16)

Impairment of goodwill (18) - (12) (12)

Expenses related to stock options, performance shares and @ESOP

(22) (9) (10) (19)

Other operating income 20 - 7 7

Other operating expenses (28) (4) (5) (9)

Total other operating income and expense (158) (120) (142) (262)

Other Operating Income and Expense



(in M€) FY 2008 FY 2009

Interest on convertible bonds (46) (56)

Other interest expenses (20) (9)

Income from cash and cash equivalents 68 22

Net finance costs 2 (43)

Other financial income 86 75

Other financial expense (107) (125)

Net finance expense (19) (93)

Net Finance Expense


Financial analysts

45




Financial analysts

46

(in M€) FY 2008 FY 2009

Current income tax (87) (24)

Tax payable on profit (69) (37)

Tax not based on taxable income (15) (16)

Adjustments on previous periods (3) 29

Deferred income tax (29) (37)

Tax losses

• Net utilization of deferred tax assets on tax losses (69) (61)

France (55) (46)

Other regions (14) (15)

• Net reassessment of deferred tax assets on tax losses 65 5

France 45 -

Other regions 20 5

Temporary differences and change in tax rates (25) 19

TOTAL INCOME TAX EXPENSE (116) (61)

Effective tax rate 20.5% 25.5%

Income Tax Expense




Financial analysts

47

(In M€) FY 2008 H1 2009 H2 2009 FY 2009

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

45124

213(62)

3(2)

1165

780

83(13)

3155026

1001281

(41)1

281111

17812

164(54)

4436137

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

748

(94)(14)(92)

242

(52)13

(303)

203

(4)16

380

445

(56)2977

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

548(157)(283)

10(143)

(75)0

(15)

(100)(82)

(6)13

(143)3

5958

595(55)

(7)212

050

(57)

495(137)

(13)225

(143)8

591

Change in net cash and cash equivalents (115) (198) 693 495

Opening net cash and cash equivalents 889 774 576 774

Closing net cash and cash equivalents 774 576 1 269 1 269

Net Cash Evolution




Financial analysts

48

(in M€)

Total equity as of January 1, 2009 3 939

Dividends paid out for 2008 (143)

Valuation of stock options, @ESOP shares and performance shares grants 19

Treasury shares 7

Increase in capital upon exercice of stock options 52

Increase in capital related to @ESOP 164

Increase in capital related to BSAAR 9

OCEANEs 2003 & 2009 equity components (net of deferred tax) 39

Income and expenses recognized directly 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

(51)

(159)293742

Profit for the period 178

Total equity as of Dec 31, 2009 4 213

Equity




Financial analysts

49

FY 2009

FY 2008(in M€)

Intangible assets

Property, plant &

equipmentTotal

December 31, n-1 140 422 562 613

Acquisitions 26 139 165 177

Disposals (1) (27) (28) (23)

Amortization / Depreciation for the period

(43) (121) (164) (213)

Perimeter changes 1 - 1 38

Other movements & translation adjustments

(7) 8 1 (30)

December 31, n 116 421 537 562

Capex




Financial analysts

50

Commitments given

• Non cancealable leases (mainly offices, vehicles, computers) € 865M

• Other commitments:

• Other commitments € 53M

• Covenants on OCEANE bonds and syndicated credit facilities Compliant

• Limited financial guarantees granted to customers € 266M

• Bank guarantees granted to customers € 57M

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

Off Balance Sheet Commitments as of December 31, 2009 :

Off Balance Sheet Commitments

2009 Fully Year financial results - capgemini.com€¦ · FY 2009 vs FY 2008 Revenues 8 710 4 376 3...

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