Capgemini – a current perspective

Philippe Donche-Gay14th March 2007

1

2006 Annual Results

67889

1 632293

5.8%447

7 700

FY 2006

+ 6583678896368061036Number of employees(end of period)

+7281 632789904Net cash and cash equivalents

+15222271141Profit for the period

+2.6pts6.8%4.8%3.2%(% Revenues)+222266181225Operating Margin10.7%*3 9163 7846 954Revenues

FY 2006 vs

FY 2005H2 2006H1 2006FY 2005M€

Capgemini - 2006 Results

* + 12.1% in organic

2

2006 Annual Results

Capgemini recorded good progress in all areas

The 2006 The 2006 prioritiespriorities werewere executedexecuted

DoubledDoubled operating operating marginmargin and net and net resultresult

OptimizedOptimized costcost structure and structure and deliverydelivery

Double digit Double digit growthgrowth for all 4 disciplinesfor all 4 disciplines

+ 12,1 %TOTAL GROUP

+ 12,6%Outsourcing Services*+ 10,4 %SOGETI+ 12,8 %Technology Services+ 10,3 %Consulting Services

FY 06 / FY 05

+ 2,6 ptOperating Margin

- 1,2 ptGeneral and Administrative Expenses

- 1 ptSelling Expenses

- 0,4 ptCost of services rendered

3. ACCELERATE RIGHTSHORE

2. CONSOLIDATE OUTSOURCING PROFITABILITY

1. CONFIRM NORTH AMERICAN TURNAROUND

x2

InM€

2005 2006

Operating Margin Net Result

225(3,2%)

447(5,8%)

141293

Dividend : + 40 %* Revenue CS/TS related to Mega deals (HMRC, Schneider & TXU) reclassified in CS/TS

3

2006 Annual Results

The North American turnaround

SOGETI

Double digit growth (+10,6%) and operating margin (13,3%)Successfully launched testing businessFootprint expanded with the acquisition of Software Architects

Outsourcing Services

Successful execution of GM and TXU contractsEarly benefits of MAP recorded

Consulting and Technology Services

Successful deployment of our sector/offerings focused strategy : FSI, Retail, TME, Automotive, SAPOperational efficiency : Overruns decreased by 30%Offshore development : 30% of TS hours performed in India

Revenues

TOTAL US + 3,8 %

+ 2,1 %

+ 5,4 %

FY 06 / FY 05

+ 7,3 pt5,4%

+ 5,2 pt2,8 %

+ 9,2pt7,7 %

FY 06 / FY 05FY 06Operating Margin

Outsourcing Services

Project and Consulting

Q406/Q405 Revenues +10,2 %

Q406/Q405 Bookings+15,2 %

P&C FY06 Book to Bill1,17

4

2006 Annual Results

Mid term margin impact

MAP drove strong results for Outsourcing Services

1-1,5 ptSupport functions1,5-2 ptRightshore1-1,5 ptIndustrialization1-1,5 ptProcurement0,5 ptRenegotiation

Operating Margin

+ 3,1% (+3 pt)

Revenue Growth

+ 16,1%Strong Financials

Good execution of major contracts

Strong BPO Growth

Cost reduction

Status

Achieved 2006Achieved 2006

On trackVisibility 2007Visibility 2007

Revenues Europe & Asia : + 47 %Revenues US : +2,9 %Workforce : 4500

86 % offshore4 Hubs, 8 satellites

Toronto

Dallas

KatowiceKrakow

Bangalore

Guangzhou Hong Kong

Adelaide

Kolkata

Mumbai

Toronto

Dallas

KatowiceKrakow

Bangalore

Guangzhou Hong Kong

Adelaide

Kolkata

Mumbai

5

2006 Annual Results

People

Sales

Recruitment focused on top talent = 1 hired every 8 interviews53% of people recruited coming from indian tier-I & II companies, 22% from referrals

Delivering large and complex projects : over 1600 people working for the 8 biggest projectsReduction of the rate card, according to skills

75 % growth in the number of clients vs 2005346 engagements serviced in 2006

Delivery

1570750Poland470400China

69803550India

Headcount 2006Headcount 2005Country

5552719

KanbayIndigo

+92% 19%

27%

Offshore/ total headcount

Offshore/ TS+OS headcount

Total offshoreheadcount 15 291

Capgemini is now a Tier-one player in Offshore

6

2006 Annual Results

Sector Innovation

Financial Services

Telecom, Media and Entertainment

Energy and Utilities

Public Services

Manufacturing, Retailand Distribution

MortgagesPayments

Digital Media Telco in a box

Smart Metering

Tax SystemsSecurity

Value chainShared ServicesAutomotive

HMRCHomeland

Recruitment

18 592 new Hires

1 210 new staff integrated through OS

Headcount : 67 889 (+11,2%)

Training

24 training hours per FTE (+37%)

4650 people trained to certification (Architects, Project Managers…)

35 000 training days in India

7000 people through Capgemini

University

Competencies

Investments in Offerings & Competencies

7

2006 Annual Results

Our 2007 priorities : Going one step beyond

Fight For Leadership Keep Transforming

NORTH AMERICA : Join top 3 in selected domain areas

BPO : Extend footprint beyond F&A

FINANCIAL SERVICES :

Consolidate tier-one status leveragingKanbay

I3 : Accelerate the Group positive momentum

KANBAY : Drive successfulintegration

CONSULTING SERVICES : Roll out a renewed ambition

8

2006 Annual Results

Our transformation program is underway Higher Share of walletBetter RetentionLeveraging references

Higher mark-upSector dominanceFaster diffusion

Lower costsHigher productivityConsistent quality

InnovationIndustrialization

Intimacy

9

2006 Annual Results

Balanced Pyramid

PMs & Test Managers

SMEs & Relationship Managers

BAs and Architects

Senior Developers

Developers

Offshore Onsite

12MS technologies

13Java technologies

11Database

31Programming conceptual

5PM, Process

14Testing

86Industry certifications

245Capital Markets certified

352Capital Markets trained

#CertificationCertifications & Training

Kanbay microcosm

model

• Integrated “one team”concept

• Balanced skill distribution

• Relevant Industry experience

• High onsite-offshore leverage

• High pyramid leverage

• Full spectrum of trainings & certifications: technology, industry, leadership

x 50

Capgemini India

12 000

226 412 11261934

3679

6000

2001 2002 2003 2004 2005 2006

2001

2006

Rightshore : acceleration Industrialization is not just about offshore capacity

10

2006 Annual Results

DesignBusiness Processes

Design Execution

Of servicesbuild /bespoke services

Off the shelf

services

Task

Job

Expertise

Assemble:translate process

into services

Business analyst

Sectorialprocess knowledge

New job !Assembler

Business+ architectureunderstanding

Java.net,legacy

KM

Developer Sectorial KM Software architect

Engine (ESB,Netweaver,…)+ sectorialunderstanding

Software development : a new “assembly line”

Sector expertise is keySector expertise is key

Industrial (r)evolution of software development

11

2006 Annual Results

Innovation is “Top of the Mind” for our Clients

Our clients are clearly back in a growth cycle

Commoditization is unavoidable in most Industries

Innovation is again central in the CXO’s agenda

Collaboration

ProfitableGrowth

Innovation Productivity

12

2006 Annual Results

SOA is key to Financial Institutions

After : Customer centric model

-

Distributor

ProducteurP

Before : Product centric model

Customers Customers Customers

MO

RTG

AG

E

Third

par

tyC

ON

SUM

ER

LOA

NS

PER

SON

AL

AC

CO

UN

T

Reduce cost

Customer

Real time intelligent interaction

Third partyConsumer

Loansfactory

P

P

Mortgagefactory

DifferentiateProducteurP

13

2006 Annual Results

The Three Related Worlds of IT

EnterpriseDataManagement

Enterprise Systems Architecture

The Consumer Internet

The Internet WorldWide Web Web 2.0

Client Server nTier & Components

Service Oriented

RDBMS Data W’housing & BI

MasterData

Management

CUSTOMER

&

USER

INTEGRATED

EXPERiENCE

People

Processes

Information

14

2006 Annual Results

IT is expanding everywhere !

MICRO-COMPUTERERA

MAINFRAME ERA

NETWORK ERAENTREPRISES

MOBILITY

OBJECT

3270 C/S

HTTPHTML

XHTMLCSS

15

2006 Annual Results

© 2005 Capgemini - All rights © 2005 Capgemini - All rights

Capgemini enables its clientsto transform and perform

through technologies.

Our Mission

Capgemini – a current perspective

Philippe Donche-Gay14th March 2007