Société Générale The Premium Review Conference...Capgemini is the leading IT services vendor in...

Paris, December 1, 2011

Société GénéraleThe Premium Review Conference

Capgemini is the leading IT services vendor in Europe, in a market with strong fundamentals

Resilience and upward momentum in IT spendingLeading European player

Revenues 2010 (€m)

8,579¹ 8,697²

804

793

852 88

9

900

1,000

IT services spending ($bn)

% headcount offshore

37%N.A.16%10%39%

Tieto Indra Sistemas

Logica Atos Capgemini

2

1,714

4,325

492 51

3

511 54

4

590 62

9 671

743

804

763 79

3

400

500

600

700

800

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

E

20

12

E

Source: IT Services Worldwide Forecast, 2000-2014, GartnerNote: As latest reported¹ Pro forma acquisition of SIS (€3.6bn revenues in 2010)² CPM Braxis included for c.3 months

2,557

© 2011 Capgemini. All rights reserved.

Société Générale – The Premium Review ConferenceParis, December 1, 2011

A diversified business

14.9%

40.5%

39.8%

Technology Services

Local Professional

Services4.8%

Consulting Services

19.9%

North America

UK & IrelandFrance

Asia-PacificSouthern Europe

& Latin America

6.6%

22.0%

11.6%

3.1%18.3%

Energy, Utilities & Chemicals

Financial Services

Public

Manufacturing

22.3%

23.1%

18.4%10.0%

Revenue by business¹ Revenue by geography¹ Revenue by sector¹

3

39.8%

OutsourcingServices

Benelux

NordicCountries

Germany& Central Europe

12.8%6.6%

Others

Public Sector

Telecom, Media& Entertainment

4.1%9.3%

� Growth in outsourcing (from 22% in 2001) to develop a stable and long term revenue base

� Right balance achieved in business mix

� The most diversified European IT services company

� Growth of share in revenues from emerging markets

� Sector exposure consistent with market structure

5.7%

¹ As of Q3’11

� c.3/5 UK

� c.1/5 Netherlands



A resilient business model - Revenue

Long-term quarterly revenue trend¹ (€m) Key drivers for resilience

� Increasing share of outsourcing

� 39.8% of revenue as of Q3 2011 vs. 22% in 2001

� Strong organic growth through new client wins and

expansion in emerging geographies

� Average y-o-y organic growth rate of 7.6% since

1,764

2,378

2,000

2,500

3,000

� Q3’11% growth: 13.0%

� Average y-o-y organic growth rate of 7.6% since

2005

� Recent expansion into emerging markets with the

acquisition of CPM Braxis (c.5% of Capgemini’s

revenues)

� New segments opportunity: smart energy, BIM, IT

CRM (with acquisition of Prosodie)

0

500

1,000

1,500

4

FY 2005€6,954m

FY 2006€7,700m

FY 2007€8,703m

FY 2008€8,710m

FY 2009€8,371m

FY 2010€8,697m

FY 2011€9,480m²

¹ At current rates and perimeter² Implied by bottom-end of guidance (+9% y-o-y revenue growth)

� Q3 YTD% growth: 12.9%



A resilient business model – Operating margin

Key drivers for resilience

7.4%

8.5%

7.1% 6.8%7.3%E

8%

10%

12%

Long-term operating margin trend (% margin)

� Offshoring

� Now 37.4% of total headcount

� Offshore leverage increasing across businesses

� Cost optimization initiatives, e.g.

� Lean program on 25% of Group’s headcount with a target gain of 100bp margin

3.2%

5.8%

0%

2%

4%

6%

2005 2006 2007 2008 2009 2010 2011

1 Implied by bottom-end of guidance (+0.5ppt y-o-y increase in operating margin)

1

target gain of 100bp margin

� Transfer progressively offshore 20% of non client facing business development costs

� Cross-business unit utilization

� Mix effect: higher contribution from new business models and BPO

5© 2011 Capgemini. All rights reserved.


A diversified client exposure

� Majority of clients are blue-chip companies or governmental entities

� Top 50 clients represents less than 50% of revenueof revenue

� Top client = 10.2% of 2010 revenue

� Second biggest client = 2.3% of 2010 revenue



CENTRAL EUROPE :• Opening: 7 928

NORDIC :• Opening: 4 012• Closing: 4 437• Change in Person: +425• Change in %: +10.6%

NORTH AMERICA :• Opening: 8 667• Closing: 9 229• Change in Person: +562

A strong presence in more than 30 countries with strong offshoring capacity

Group headcount:117,428

Working offshore:43,931 (37.4%)

as of September 30, 2011

UK & IRELAND :• Opening: 8 515• Closing: 8 780• Change in Person: +265• Change in %: +3.1%

Southern Europe & Latin America:

• Opening: 14 853• Closing: 15 765• Change in Person: +912• Change in %: +6.1%

FRANCE :• Opening: 20 277• Closing: 21 519• Change in Person: +1 242• Change in %: +6.1%

BENELUX :• Opening: 10 782• Closing: 10 399• Change in Person: -383• Change in %: -3.6%

ASIA PACIFIC :• Opening: 33 664• Closing: 38 676• Change in Person: +5 012• Change in %: +14.9%

• Opening: 7 928• Closing: 8 623• Change in Person: +695• Change in %: +8.8%

• Change in Person: +562• Change in %: +6.5%



Building strong alliances with technology leaders...

� Winner of the Best Converged Infrastructure Solutio ns – Capgemini is the first global SI partner to win this award which combines the infrastructure portfolio of HP to offer our clients a complete , modern and low cost solution

� Winner of the Best IT Application Implementation Partner of the Year

� Capgemini Group: Premier IBM Business Partner� IBM Beacon Award Winner: Cloud Computing Innovation 2011 (Sogeti), Outstanding Collaboration with IBM GTS

2011 (Sogeti)� Global launch of Agile Legacy Lifecycle solution in collaboration with IBM

� Microsoft names Capgemini - Enterprise Partner of the Year� Capgemini and Microsoft Plan to Offer Accelerated Cloud Services in 22 Countries to help deploy customer

solutions on the Windows Azure platform.� Sogeti Expands Relationship with Microsoft Through Windows Azure Solutions in October 2011

� Oracle Global Application Partner of the Year Award received at Oracle OpenWorld for application innovation� Diamond Partner Awarded – recognizing our global expertise across Oracles broad technology portfolio� Sogeti referenced as Oracle Customer of Exadata with a full Oracle stacks

� Capgemini wins SAP Pinnacle Awards 2011 in the Global Partner Service Innovator category, as a result of Capgemini’s SAP Hosting in the Cloud solution

� Strategic partnership with Sybase and SAP to deploy and develop enterprise mobility solutions in September 2011 and offer them on a software-as-a-service (SaaS) and platform-as-a-service (PaaS) basis

• EMC becomes Capgemini’s Sixth Strategic Alliance Partner in July 2011• Roll-out of first joint offering around ‘Storage-as-a-Service’, aimed to help deliver more agile and efficient storage

solutions to customers. ‘Messaging-as-a-Service’ and other offerings will be rolled out over the next 12-18 months.


…with no associated technology risk for CapgeminiSociété Générale – The Premium Review Conference

Paris, December 1, 2011

Group strategic objectives

10% of revenues in Fast Growth

Economies

Recurrent revenue of €1bn in New

Business Model

Strong Capgemini consulting franchise

9

Cloud enabled infrastructure

Offshore leverage combining

innovation and industrialization

€1bn revenue with an IT intensive BPO

Productivity improvement through

Lean program



Acquisition of CPM Braxis (Sep. 2010), the largest Brazilian IT Services company

Transaction details

� 55% of CPM Braxis acquired for R517m (€233m), implied EV of R970m (€437m)

� Acquisition in cash (R230m) and shares (R287m, to CPM Braxis shareholders)

� Put and call option (exercisable between 2013 and 2015) on remainder of capital, amounting to €184m as of December 31, 2010

10

CPM Braxis: key figures

� Estimated revenue of R1bn in 2010 (€450m), with strong FS

and Telco sector presence

� 18% revenue CAGR 2008 to 2010

� Full IT services provider: applications (SI and OS),

Infrastructure (Consulting OS, HW / SW reseller)

Acceleration of external growth in fast growing economies

� Brazil is the most mature IT market in among the BRICs and the largest in Latin America

� Gartner foresees >10% growth until 2014 for the IT services market in Brazil

� Acquisition enhances Capgemini’s existing Latin America presence from 2,600 to 8,100 employees

� Brazil represents the 6th largest region within the Group, measured by headcount



Acquisition of Prosodie (Jun. 2011): growing into front office solutions

Transaction details

� Acquisition of 97.5% of share capital, remaining 2.5% being retained by key management and employees

� EV of €382m

� Fully financed in cash

New business model accelerator

� €172m revenues in 2010 and 5% CAGR 2007-10

� A complete multichannel client relationship solution, from client contact to payment with full customization options

� Management associated with development of new Prosodie within Capgemini

� Real-time IT infrastructure

Strong margin contributor

� €27m EBIT and 15.9% margin in 2010

� Unique know-how, advanced technical expertise

� R&D leading to Intellectual Property

� Synergies across commercial and verticals (e.g. Public and financial services sectors)



Relentless cost optimization

Capgemini is constantly aiming at increasing its operational flexibility, in order to adapt to business transformation and cycles

� Continue offshore development

� Average decrease in remuneration costs of 4.0% over 2007-2010 (constant rates)

� Transfer progressively offshore 20% of non client facing business development costs

Offshore workforce evolution

38.4

43.9

37.4%

40%

50%

40

50

Offshore workforce % of total headcount

(’000) (%)

12

� Lean program initiative for delivery as part of “Industrialization” effort

� Methodology, tools, shared program management, etc.

� Medium term target gain of 100bp

� Improved cross-business unit utilization

� “Worldwide staffing” initiative, supply chain improvement, management of “hidden investments”

� Agile restructuring to optimize age pyramid re-balancing

4.7

9.0

19.8

25.3

28.0

7.7%

13.3%

23.7%

27.6%

30.9%

35.3%

0%

10%

20%

30%

0

10

20

30

2005 2006 2007 2008 2009 2010 Q3 2011



Summary financials

€mRevenues 8,371 8,697 4,211 4,756 % growth (3.9)% 3.9% - 12.9%EBITA 595 587 245 289 % margin 7.1% 6.8% 5.8% 6.1%Net profit (Group share) 178 280 101 127

EBIT+Amort. and provisions 705 761 332 366

2009 2010 H1’10 H1’11

� Seasonality of operations with H1 margins traditionally lower than full-year

� Q3’11 Revenues: €2,378m

� Q3’10 Revenues: €2,105m

% growth: +13.0% y-o-y

13

¹ Defined as Net cash from operating activities (see Consolidated Financial Statements)-Capex net of disposals-Net interest² Defined as ST+LT borrowings, includes derivative instruments on borrowings

EBIT+Amort. and provisions 705 761 332 366 Changes in NWC 86 (119) (358) (607)Taxes paid (56) (52) (35) (42)Organic operating cash flows¹ 396 359 (319) (576)Total cash flows 592 (206) (460) (894)

Gross debt² 1,328 1,315 1,154 1,309 Net cash 1,269 1,063 809 169

Total equity 4,213 4,307 4,322 4,162

� Low cash tax rate (<20%) due to tax credits in North America and France

� Cash position traditionally lower end of H1 due to seasonality



FY 2011 to-date: financial performance summary

Sales (€m) EBITA (€m) Net profit (€m)

2894,211

101

1274,756

14

H1 2010 H1 2011 Q3 2010 Q3 2011

245

2,1052,378



H1 & Q3 2011: revenue and margin results on-track with full year guidance

Solid improvement of operating margin and net result

High revenue organic growth

H1 2011/2010

€m

Consulting Services - 1.6% - 0.9%

Technology Services + 9.6% + 7.2%

Q3 2010/2011

250

300

350+18%

245

289

Sogeti + 7.3% + 5.3%

Outsourcing + 6.6% + 2.7%

� Application Management + 0.4%

� Infrastructure Management + 9.4%

� BPO + 21.8%

Group Total + 7.4% +4.7%

¹ Operating margin excl. CPM: 6.3% of revenues

15

101

127

0

50

100

150

200

H1 2010 H1 2011

Operating margin

% of revenues

Net result Group share

+26%

5.8% 6.1%¹



Operating margin by business

Consulting Services 11.1% 10.5% 11.8%

Technology Services 5.5% 7.9% 5.8%

Local Professional Services 7.2% 11.3% 9.9%

H1 2010 H2 2010 H1 2011

Note: At current rates and perimeter¹ Before headquarters’ expenses² 5.4% at 2011 perimeter


CS / TS / LPS 6.5% 9.0% 7.4%

Outsourcing Services 6.7% 7.5% 5.7%

Total Operations¹ 6.6% 8.4% 6.8%

Group 5.8%² 7.6% 6.1%


FY 2011 guidance confirmed

Year-on-year reported revenue growth:

+ 9 to +10 % (and at least +5% organic)

Operating margin rate improvement:

Over 0.5 point vs. 2010



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