Capgemini Se · EURONEXT:CAP
Capgemini — Q2 2006 Earnings Presentation
28 slides from Capgemini's earnings presentation, Jul 27, 2006
Slide 1: Second Quarter 2006 Revenues
Second Quarter 2006 Revenues Paris, July 27, 2006
Slide 2: Capgemini has gained market share
Capgemini has gained market share Growth acceleration in Q2 Q1 2006 Q2 2006 Outsourcing 8.8% +6.5 pt 15.3% Projects & Consulting 10.4% 8.2% Projects & Consulting 6.9% +2.7 pt 9.6% (working days effect neutralized) Strong sales momentum Projects & Consulting H1 Bookings H1 06 vs H1 05 : Book to Bill
Slide 3: Successful deployment of NA strategy
Successful deployment of NA strategy The turnaround is there Bookings (M euros) Q2 05 Q2 06 Q2 06 / Q2 05 North America 265 308 16.2% of which 154 190 23.1% Consulting & Technology Focus on 3 growth platforms driven by innovation Telecom Media and Entertainment SAP with vertical domain expertise
Slide 4: Outsourcing on track to achieve 2006 objectives
Outsourcing on track to achieve 2006 objectives Double digit growth New succesful transitions HMRC extension Revenue: strong acceleration in Q2 Good H1 bookings General Motors London Metropolitan Police MAP execution Funnel mix moving in the right direction RightshoreTM Outsourcing funnel
Slide 5: Strong headcount increase for offshore
Strong headcount increase for offshore Headcount June 05 Dec 05 June 06 TS/OS/BPO India 2,600 3,550 4,670 China 390 400 430 +75% BPO Poland 580 750 1,150 BPO/OS Kolkata center opened in India including BPO Katowice center opened in Poland 400 freshers onboarding from India campus First brand
Slide 6: Capgemini is well positioned to gain market share
Capgemini is well positioned to gain market share Client show appetite for complex Application Services projects requiring integrated capabilities : 9 Sectorial Knowledge + ERP Expertise 9 Process Knowledge + ERP Expertise 9 Application Integration that leverages: • SOA capabilities • Offshore pla
Slide 7: Sustained growth in Q2
Sustained growth in Q2 Revenue quarterly evolution in M€ 2000 1915 1869 1808 1800 1764 1708 1674 1600 1400 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q1 2005 Q2 2005 H1 2005 Q3 2005 Q4 2005 H2 2005 FY 2005 Q1 2006 Q2 2006 H1 2006 Amount in M€ (Published) 1 708 1 764 3 472 1 674 1 808 3 482 6 954 1 869 1 91
Slide 8: Revenue by discipline
Revenue by discipline Q2 2005 Consulting Professional Services Services 12.8% 16.2% Technology Services 33.3% Professional Consulting Services Services Outsourcing Services 15.5% 11.2% 37.7% Technology Services 34.1% Outsourcing At constant rates and perimeter Services Q2 2006 39.2% 2006 Second Quar
Slide 9: Strong growth across the board
Strong growth across the board Revenue CS/TS related to mega deals recorded in Outsourcing Q2 06 / Q1 06 Q2 06 / Q2 05 Consulting Services 1.2% 4.5% Technology Services 1.3% 10.9% Professional Services - 5.0% 5.6% Project & Consulting - 0.4% 8.2% Outsourcing Services 9.4% 15.3% TOTAL GROUP 3.2% 10.9
Slide 10: Strong growth across the board
Strong growth across the board Revenue CS/TS related to mega deals recorded in Outsourcing H1 06 / H2 05 H1 06 / H1 05 Consulting Services 3.1% 4.4% Technology Services 11.2% 11.3% Professional Services 9.2% 10.6% Project & Consulting 9.0% 9.7% Outsourcing Services 10.7% 11.6% TOTAL GROUP 9.7% 10.4%
Slide 11: Revenue by geography
Revenue by geography Q2 2005 Asia South Pacific Europe 0.8% North 4.6% America 18.6% Asia France South Pacific 24.4% Uk & Europe 0.8% North Ireland America 4.5% 24.9% 17.4% Central France Europe 22.7% 6.3% UK Benelux & Ireland Nordic 13.7% Countries 29.0% 6.7% Central Europe 6.4% Benelux Nordic At c
Slide 12: North America returns to growth
North America returns to growth Q2 06 / Q1 06 Q2 06 / Q2 05 H1 06 / H2 05 H1 06 / H1 05 Sequential Year-on-year Sequential Year-on-year Growth Growth Growth Growth NORTH AMERICA Consulting Services / Technology Services 7.7% 12.1% 2.1% 8.3% Local Professional Services 7.2% 7.7% 2.7% 4.9% Outsourcing
Slide 13: Europe growing fast in Q2 despite a negative calendar impact
Europe growing fast in Q2 despite a negative calendar impact Current Organic Current Sequential Year on Year Sequential Year on Year M€ Q2 2005 Q1 2006 Q2 2006 Q2 06 / Q1 06 Q2 06 / Q2 05 Q2 06 / Q1 06 Q2 06 / Q2 05 North America 343 326 334 2.4% - 2.6% 6.3% 3.9% Europe & Asia 1 421 1 543 1 581 2.5%
Slide 14: Revenue by global sector – Sogeti excluded
Revenue by global sector – Sogeti excluded Q2 2005 Energy & Manufacturing, Utilities Retail & Distribution 14.7% 27.9% Financial Services Manufacturing, Energy & 12.0% Retail & Utilities Distribution 14.1% 27.5% Telecom, Media & Other Networks Services Financial 11.0% 7.1% Services 11.5% Government
Slide 15: Good Q2 bookings in Project & Consulting
Good Q2 bookings in Project & Consulting 4 500 M€ 4 038 Outsourcing 4 000 Projet & Consulting 3 500 2 860 3 198 2 990 3 000 2 391 2 500 1 943 2 000 1 716 1 760 1 705 1 562 1 396 1 117 1 500 1 213 1 273 329 490 484 277 1 000 284 320 500 1 078 1 178 929 1 255 1 119 1 226 953 1 274 1 230 1 376 0 Q1 04
Slide 16: Consulting and Technology Services: bookings in key countries
Consulting and Technology Services: bookings in key countries Q2 2006 Q2 06 / Q2 05 H1 2006 H1 06 / H1 05 Consulting Services / Technology Services North America 190 23.1% 377 25.0% Uk & Ireland 120 42.2% 219 28.2% Netherlands 136 10.4% 278 7.5% France 340 - 2.6% 553 3.2% 2006 Second Quarter Revenue
Slide 17: Book to bill ratios Project & Consulting – Q2
Book to bill ratios Project & Consulting – Q2 Q2 2006 Bookings Revenue BBR North America 233 184 1.27 Rest of the World 1 143 979 1.17 TOTAL 1 376 1 163 1.18 Including mega deals 2006 Second Quarter Revenues 16
Slide 18: KPIs by Discipline – ARVE evolution by quarter
KPIs by Discipline – ARVE evolution by quarter Consulting Services Technology Services Professional Services 90 86 86 85 86 86 86 85 84 85 83 80 80 79 79 79 79 76 78 76 74 75 70 70 68 68 67 66 64 65 65 64 62 60 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 19: Headcount evolution
Headcount evolution Headcount as of December 31, 2005 61 036 Recruits (*) 8 959 Acquisitions / Big Deals 316 Disposals - 608 Layoffs - 1 034 Leavers - 4 989 Headcount as of June 30, 2006 63 680 (*) out of which India 1568 2006 Second Quarter Revenues 18
Slide 20: KPIs by discipline – COR evolution by quarter
KPIs by discipline – COR evolution by quarter 1500 Consulting Services Technology Services Professional Services 1242 1227 1197 1200 1153 1150 1193 1193 1205 1121 1131 900 614 615 617 620 629 614 618 618 612 619 600 435 407 410 403 406 410 415 418 419 422 300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q
Slide 21: Charge-out rate evolution excluding India
Charge-out rate evolution excluding India 1500 Consulting Services Technology Services Professional Services 1242 1227 1197 1193 1193 1205 1200 1153 1150 1121 1131 900 655 644 657 661 661 675 631 635 640 641 600 435 407 410 403 406 410 415 418 419 422 300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1
Slide 22: Back Up
@® Capgemini CONSULTING .TECHNOLOGY.OUTSOURCING BUSINESS
Slide 23: H1 2006 - Revenue by discipline
H1 2006 - Revenue by discipline H1 2005 Consulting Professional Services Services 12.9% 16.0% Technology Services 33.3% Consulting Professional Services Services 11.7% Outsourcing 16.1% Services 37.8% Technology Services 34.0% Outsourcing At constant rates and perimeter Services H1 2006 38.2% 2006 S
Slide 24: H1 Revenues by geography
H1 Revenues by geography Current Organic Current Sequential Year on Year Sequential Year on Year M€ H1 2005 H2 2005 H1 2006 H1 06 / H2 05 H1 06 / H1 05 H1 06 / H2 05 H1 06 / H1 05 North America 685 668 660 - 1.3% - 3.6% 0.4% - 0.1% Europe & Asia 2 787 2 814 3 124 11.0% 12.1% 11.8% 12.9% of which U.K
Slide 25: H1 2006 - Revenue by geography
H1 2006 - Revenue by geography H1 2005 Asia South Pacific Europe 0.9% North 4.7% America 19.2% Asia France South Pacific 24.1% Uk & Europe North Ireland 0.9% America 4.5% 24.9% 17.4% Central France Europe 23.9% 6.4% UK & Ireland Benelux 27.5% Nordic 13.7% Countries 6.2% Central Europe 6.4% Benelux N
Slide 26: H1 2006 - Revenue by global sector – Sogeti excluded
H1 2006 - Revenue by global sector – Sogeti excluded H1 2005 Energy & Manufacturing, Utilities Retail & Distribution 16.1% 27.7% Financial Services Manufacturing, Energy & 11.8% Retail & Utilities Distribution 14.0% 27.8% Telecom, Media & Other Networks Services Financial 10.7% 7.7% Services 11.4% G
Slide 27: Book to bill ratios Project & Consulting – H1
Book to bill ratios Project & Consulting – H1 H1 2006 Bookings Revenue BBR North America 466 354 1.32 Rest of the World 2 140 1 966 1.09 TOTAL 2 606 2 320 1.12 2006 Second Quarter Revenues 26
Slide 28: 2006 Second quarter revenues
2006 Second quarter revenues July 27, 2006