2010 Half Year Financial Results · Together. Free your energies Paris, July 29, 2010 2010 Half...
Transcript of 2010 Half Year Financial Results · Together. Free your energies Paris, July 29, 2010 2010 Half...
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Together. Free your energies
Paris, July 29, 2010
2010 Half Year Financial Results
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2010 Half Year Financial Results
Together. Free your energies
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,…)
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2010 Half Year Financial Results
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3© 2010 Capgemini. All rights reserved.
(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
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2010 Half Year Financial Results
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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
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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
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H1 2010
6.4%
16.7%
41.2%
35.7%
At constant rates and perimeter
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
At constant rates and perimeter
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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
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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%
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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€)
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Consulting / Technology / Local Professional Services
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
Consulting / Technology / Local Professional Services
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€)
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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
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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
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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
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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
Jan 09 Dec 09 Jun 10
Technology Services
18 832
17 88817 950
17 700
17 900
18 100
18 300
18 500
18 700
18 900
Jan 09 Dec 09 Jun 10
Local Professional Services
26 275
28 090
29 447
26 000
26 500
27 000
27 500
28 000
28 500
29 000
29 500
30 000
Jan 09 Dec 09 Jun 10
Outsourcing Services
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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)
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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
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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%
Operating Margin 287 308 245
% 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
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H1 2009 H2 2009 H1 2010
Consulting Services
Technology Services
Local Professional 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%
At current rates and perimeter
(*) before headquarters’ expenses
Operating Margin by Discipline
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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
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(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
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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
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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
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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
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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)
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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
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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
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Conclusion: Improved Outlook
H2 RevenuesFY 2010
Operating margin
Above 6.5% of revenues H2 year on year organic growth: +3% to +5%
-
Back-Up
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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
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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
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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%
Germany & Central Europe
277 254 262 3.1% - 5.3% 1.3% - 7.0%
Southern Europe & Latin America
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%
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Q2 Revenues by Geography
6.5%15.4%
6.2% 23.6%
20.2%
21.5%
1.7%
4.9%
Q2 2009
At constant rates and perimeter
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
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H1 Revenues by Geography
6.5%16.4%
6.3%22.3%
19.4%
22.5%
1.6%
5.0%
H1 2009
At constant rates and perimeter
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%
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H1 Revenues by Discipline
H1 2010
41.2%
35.7%
16.7%6.4%
H1 2009
6.7%
41.2%
16.3%
35.8%
At constant rates and perimeter
Consulting
Services
Technology
Services
Outsourcing
Services
Local
Professional
Services
Consulting
Services
Technology
Services
Outsourcing
Services
Local
Professional
Services
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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
Manufacturing, Retail &
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
Manufacturing, Retail &
Distribution
At constant rates and perimeter
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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
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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 Person: +34
• Change in %: +2.3%
IBERIA & Latin America:
• Opening: 6 604
• Closing: 6 881
• Change in Person: +277
• Change in %: +4.2%
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
• Change in Person: +138
• Change in %: +1.8%
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
• Change in Person: +314
• Change in %: +3.9%
NORDIC:
• Opening: 3 681
• Closing: 3 799
• Change in Person: +118
• Change in %: +3.2%
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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%
Germany & Central Europe
277 31 11.1% 254 20 8.1% 262 21 7.9%
Southern Europe & Latin America
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
At current rates and perimeter
Operating Margin by Geography
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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%
Operating Margin 287 308 245
% of Revenues 6.6% 7.7% 5.8%
At current rates and perimeter
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(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
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(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
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(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
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(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
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(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
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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
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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
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The information contained in this presentation is proprietary. ©2010 Capgemini. All rights reserved