2006 Annual Results

1
2006 Annual Results

• Paris, 15 February 2007

2
In 2006, Capgemini has recorded very solid
progress
Doubling operating margin and net result
Double digit growth for our 4 disciplines
Operating Margin
Net Result
In M
447 (5,8)
x2
293
225 (3,2)
141
2005 2006
Dividend 40
Revenue CS/TS related to Mega deals (HMRC,
Schneider TXU) reclassified in CS/TS
Priorities executed
Optimized cost structure and delivery
?
1
?
2
?
3
3
Ready for new heights in North America
Q406/Q405 Revenues 10,2
Revenues
Q406/Q405 Bookings 15,2
PC FY06 Book to Bill 1,17
TOTAL US
Consulting and Technology Services

• Successful deployment of our sector/offerings
  focused strategy FSI, Retail, TME, Automotive,
  SAP
• Operational efficiency Overruns decrease by
  30
• Offshore development 30 of TS hours performed
  in India

Outsourcing Services

• Successful execution of GM and TXU contracts
• Early benefits of MAP recorded

SOGETI

• Double digit growth (10,6) and operating
  margin (13,3)
• Successfully launched testing business
• Footprint expanded with the acquisition of
  Software Architects

4
MAP drives strong results for Outsourcing
Services
Operating Margin
Revenue Growth
Strong Financial Records
3,1 (3 pt)
16,1
Good execution of major new contracts
Mid term margin impact
Status
Achieved 2006
Cost reduction
Achieved 2006
On track
Visibility 2007
Visibility 2007
Strong BPO Growth

• Revenues Europe Asia 47
• Revenues US 2,9
• Workforce 4500
• 86 offshore
• 4 Hubs, 8 satellites

5
Investing in innovation and competencies
Innovation
Competencies
Architecture Services
TS Bookings 2006 2919 M
TS Bookings 2005 2622 M
Recruitment
188 M

• 18 592 new Hires
• 1 210 new colleagues integrated through OS
• Headcount 67 889 (11,2)

40
Share of Architecture Services in TS bookings
Testing
Sogeti Revenues 2005 1108 M
Sogeti Revenues 2006 1222 M
Training
114 M

• 24 training hours per FTE delivered (37)
• 4650 people trained leading to certification
  (SOA, project management)
• 35 000 training days in India
• 7000 people trained at Capgemini University

39
Share of Testing in Sogeti revenues
IM Command Centers
IMCC Heacount in Poland India
580
100
2005 2006
6
Developing our sector approach and aligning
organizations to improve portfolio management
Sector Innovation
Portfolio Management

• Loans and Mortgage
• Kanbay domain expertise

Financial Services and Insurance
Strengthening relations with our Top 30 clients
Bookings 2005 6776 M
Bookings 2006 8198 M

• Digital Media
• Telco in a box

Telecom, Media and Entertainment
1652 M
3260 M

• Smart Metering

Energy and Utilities
Share of bookings at our 30 top clients CS/TS/OS

• Tax Systems
• Security

HMRC Homeland
Public Services

• 5 country boards
• 2 New European Business Units
• New organization for consulting

• Future Value chain
• Shared Services
• Automotive

Manufacturing, Retail and Distribution
7
A tier-one player regarding offshore capabilities
Total offshore headcount
15 291
92
23
Offshore/ total headcount
33
Offshore/ TSOS headcount
People

• Recruitment focused on top talent 1 hired
  every 8 interviews
• 53 of people recruited coming from indian
  tier-I II companies, 22 from referrals

Delivery

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

Sales

• 75 growth in the number of clients vs 2005
• 346 engagements serviced in 2006

8
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 FA
• FINANCIAL SERVICES Consolidate tier-one
  status leveraging Kanbay

• KANBAY Drive successful integration
• I3 Accelerate the Group positive momentum
• CONSULTING SERVICES Roll out a renewed
  ambition

9
Adding Value through our I3 Transformation plan
Implement new global operating model

Leverage the group broad scope of services for
our main clients

Develop undisputed areas of domain expertise

Win the battle for talent
10
Adding Value through Kanbay Integration
Consolidate Financial Services Consumer
Products positioning

Strengthen Indian platform

Reinforce North American presence

Ensure fast successful integration
11
Financials
12
Income statement overview
12.1 in Organic
13
2006 Revenues evolution
Revenues quarterly evolution in M
14
Sustained growth in Q4
15
Outsourcing drives Q4 growth
CS/TS Revenues related to mega deals (HMRC,
Schneider TXU) recorded in Outsourcing
CS/TS Revenues related to mega deals (HMRC,
Schneider TXU) reclassified in CS/TS
At constant rates and perimeter
16
When analysing the nature of work performed, all
disciplines grow double digit
CS/TS Revenues related to mega deals (HMRC,
Schneider TXU) recorded in Outsourcing
CS/TS Revenues related to mega deals (HMRC,
Schneider TXU) reclassified in CS/TS
At constant rates and perimeter
17
2006 Strong growth in a favorable market
18
2006 Revenues by sector
FY 2005
Manufacturing, Retail Distribution
Energy Utilities
FY 2006
14,5
29,7
Manufacturing, Retail Distribution
Energy Utilities
14,0
Financial Services
13,1
6,9
29,0
Financial Services
10,6
14,0
Other
24,3
Telecom, Media Networks
6,5
9,6
Other
27,8
Government
Telecom, Media Networks
At constant rates and perimeter
Government
19
Bookings evolution by discipline
6 776
8 198
M
2 990
2 391
1 980
1 705
1 716
1 523
1 396
1 273
At constant rates and perimeter
20
Consulting, Technology and Local Professional
Services Bookings
21
Book to Bill CS / TS / LPS FY 2006
M
At budget rates
22
Charge-out rate Consulting Services Quarter
evolution
1272
1246
1222
1225
1218
1200
1210
1189
2005
2006
At constant rates and perimeter
23
Charge-out rate Technology Services Quarter
evolution
India included
636
626
621
623
622
617
616
615
India excluded
687
677
682
669
663
661
662
652
2006
2005
At constant rates and perimeter
2006
2005
24
Charge-out rate Local Professional Sces
Quarter evolution
445
439
435
422
419
415
418
410
2005
2006
At constant rates and perimeter
25
ARVE Quarter evolution by discipline
Local Professional Services
Technology Services
Consulting Services
Q1
Q2
Q2
Q4
Q4
Q3
Q3
Q1
Q1
Q2
Q2
Q4
Q4
Q1
Q2
Q2
Q4
Q4
Q3
Q3
Q1
2005
2006
2005
2006
2005
2006
At constant rates and perimeter
26
Consulting Services Local Professional Services
at double digit operating margin in H2
(1) before headquarters expenses
At current rates and perimeter
27
Strong operating margin improvement in all
geographies but France
(1) Items not allocated correspond to
headquarters expenses
At current rates and perimeter
28
North America is now solidly in the black
At current rates and perimeter
29
France a strong improvement in CS/TS and a
solid LPS can not compensate for OS
At current rates perimeter
30
SGA are down in absolute terms despite a double
digit growth in revenues
31
Ratios of costs by nature impacted by big deals
ramp-up
32
Other operating income expenserestructuring
costs continue to trend down
33
Operating margin almost entirely translated into
cash
264
-263
-161
323
-148
498
1 632
-30
-66
447
1 336
-136
904
Working Capital evolution other operational
Cash flow
2006 Accrual Bonus (net of payment)
Payment of Restruc- turing
Cash Net of Debt 1.1.2006
Amorti- zation and provisions
Payment Bonus 2005
Cash Net of Debt 31.12.2006
Operating Margin
31.12. 2006
Kanbay 14.7
Capital increase
CAPEX
Dividends
34
Finance expense
35
Income tax
36
Balance Sheet
(1) the balance sheet at Dec. 31, 2005 was
restated in connection with the amendment of IAS
19
37
Capex
38
Shareholders equity
39
Off balance sheet commitments
Off Balance Sheet Commitments as of December 31,
2006
40
Headcount evolution
() out of which Sogeti 4 282
India 3 897
Poland production centers 1 086
41
Group headcount by discipline
42
Annualized attrition
43
Kanbay Preliminary PL (unaudited)
44
Balance Sheet Kanbay (unaudited)(in millions
of US)
45
2006 Annual Results

• Paris, 15 February 2007

46
Back upFY 2006
47
Q4 Revenues by discipline
Local Professional Services
Consulting Services
Q4 2005
11,5
16,5
Technology Services
35,1
36,9
Q4 2006
Outsourcing Services
Consulting Services
Local Professional Services
10,6
16,1
34,7
38,6
Outsourcing Services
Technology Services
At constant rates and perimeter
48
H2 Revenues by geography
49
H2 Revenues by geography
H2 2005
South Europe
Asia Pacific
North America
1,0
H2 2006
4,4
France
18,2
South Europe
Asia Pacific
24,4
North America
1,1
France
25,2
4,3
17,4
UK Ireland
6,7
23,3
14,2
Central Europe
5,8
27,7
6,9
Central Europe
Nordic Countries
Benelux
13,6
5,7
UK Ireland
Benelux
At constant rates and perimeter
Nordic Countries
50
H2 Revenues growth by discipline
CS/TS Revenues related to mega deals (HMRC,
Schneider TXU) recorded in Outsourcing
CS/TS Revenues related to mega deals (HMRC,
Schneider TXU) reclassified in CS/TS
At constant rates and perimeter
51
H2 Revenues by discipline
Local Professional Services
Consulting Services
H2 2005
11,4
16,2
Technology Services
H2 2006
34,6
37,8
Consulting Services
Local Professional Services
Outsourcing Services
10,5
15,7
33,9
39,9
Outsourcing Services
Technology Services
At constant rates and perimeter
52
2006 Revenues by geography
FY 2005
South Europe
Asia Pacific
FY 2006
North America
0,9
4,5
France
18,8
South Europe
Asia Pacific
24,3
North America
1,0
France
25,0
4,4
17,4
UK Ireland
6,6
23,6
13,9
Central Europe
6,0
27,6
6,7
Central Europe
Nordic Countries
Benelux
13,6
5,7
UK Ireland
Benelux
At constant rates and perimeter
Nordic Countries
53
2006 Revenues by discipline
Local Professional Services
Consulting Services
FY 2005
11,4
16,1
Technology Services
FY 2006
34,8
37,7
Consulting Services
Local Professional Services
Outsourcing Services
11,0
15,9
34,0
39,1
Outsourcing Services
Technology Services
At constant rates and perimeter
54
2006 Annual Results

• Paris, 15 February 2007