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Capgemini — Q2 2005 Earnings Presentation

26 slides from Capgemini's earnings presentation, Jul 28, 2005

  1. Slide 1: Second Quarter 2005 Revenues

    Second Quarter 2005 Revenues Analysts Conference Call Paris, 28 July 2005

  2. Slide 2: Paul Hermelin, Chief Executive Officer

    Paul Hermelin Chief Executive Officer

  3. Slide 3: We are executing on our 2005 agenda

    We are executing on our 2005 agenda Accelerate North American 1 Turnaround Drive Sustainable, Profitable 2 Growth in Outsourcing Consolidate P&C European 3 Recovery 2

  4. Slide 4: Q2 2005 Financial Highlights

    Q2 2005 Financial Highlights Nicolas Dufourcq Chief Financial Officer

  5. Slide 5: Revenue Evolution

    Revenue Evolution 1 762 1 683 1 708 1 587 1 474 1 491 in M€ Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q1 2004 Q2 2004 H1 2004 Q3 2004 Q4 2004 H2 2004 FY 2004 Q1 2005 Q2 2005 H1 2005 Amount in M€ (2004 restated for IFRS impact) 1,474 1,491 2,965 1,587 1,683 3,270 6,235 1,708 1,762 3,470 Sequential Current

  6. Slide 6: Revenue Evolution by Geography Q2 2005

    Revenue Evolution by Geography Q2 2005 Current Organic Year on Year on M€ Q2 2004 Q1 2005 Q2 2005 Sequential Year Sequential Year North America 332 342 343 0.3% 3.3% -1.9% 9.0% Europe & Asia 1 159 1 366 1 419 3.9% 22.5% 3.2% 25.7% of which France 366 405 422 4.2% 15.2% 4.2% 15.2% UK & Ireland 273 42

  7. Slide 7: Revenue by Geography

    Revenue by Geography Q2 2005 At constant rate and perimeter SE AP NA 4% 1% 19% FR 2004 restated for IFRS impact 24% UK CE 26% 6% BE NO 13% 7% Q2 2004 SE AP NA 5% 1% 22% FR 26% UK 18% CE BE NO 8% 14% 6% 6

  8. Slide 8: Revenue Evolution – Organic Growth

    Revenue Evolution – Organic Growth Q2 05 / Q1 05 Q2 05 / Q204 H1 05 / H2 04 H1 05 / H1 04 Consulting Services 0.1% -3.1% 1.9% -3.2% Technology Services 2.5% 9.6% 9.0% 6.7% Professional Services 0.2% 8.4% 8.1% 8.2% P&C 1.4% 6.3% 7.1% 4.7% Outsourcing Services 3.7% 63.9% 11.9% 63.9% Total Group 2.2% 2

  9. Slide 9: Revenue Evolution – Organic Growth

    Revenue Evolution – Organic Growth H1 05 / H2 04 H1 05 / H1 04 Consulting Services 0.7% -2.2% Technology Services 16.0% 20.3% Professional Services 8.1% 8.2% P&C 10.6% 12.0% Outsourcing Services 8.1% 44.6% Total Group 8.8% 20.7% Revenue CS/TS related to mega deals reclassified in CS/TS 8

  10. Slide 10: Revenue by Discipline

    Revenue by Discipline CS Q2 2005 TS 16% 14% OS 36% 34% PS Q2 2004 18% 18% 28% At constant rate and perimeter 36% 2004 restated for IFRS impact 9

  11. Slide 11: Bookings Evolution excluding mega deals

    Bookings Evolution excluding mega deals each year at its budget rate M€ 2 500 2,072 OS 1,907 P&C 1,841 2 000 1,730 1,738 1,736 1,648 764 1,438 554 1 500 1,250 785 485 1,277 549 483 488 276 289 402 1 000 1308 1287 1245 1253 1122 1160 1189 1162 500 848 988 0 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q

  12. Slide 12: Bookings Evolution by Geography

    Bookings Evolution by Geography Excluding mega deals Year on Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Sequential Year North America 372 355 318 526 241 278 15.2% - 21.6% Rest of the World 1276 1375 959 1212 1197 1458 21.8% 6.0% Total 1648 1730 1277 1738 1438 1736 20.7% 0.3% Figures in M€ 11

  13. Slide 13: Unweighted funnel evolution by discipline

    Unweighted funnel evolution by discipline 17,585 17,682 17,998 17,426 14,911 14,145 13,255 11 541 12 048 11 930 12 029 8 106 8 913 7 698 3 998 4 496 4 334 4 071 4 147 4 592 4 016 2 041 1 548 1 664 1 486 1 487 1 381 1 476 Feb. 6 May 6 Aug. 5 Nov. 4 Dec. 2 Apr. 7 July 7 CS TS OS Current rates and peri

  14. Slide 14: Quarterly Utilization rate by discipline since 2004

    Quarterly Utilization rate by discipline since 2004 Quaterly Utilization rate by discipline since 2004 88 86 86 86 85 84 85 83 82 79 79 78 76 76 76 75 74 73 70 69 67 65 65 65 64 64 63 61 58 55 CS TS PS 13

  15. Slide 15: Quarterly Charge Out Rate by discipline since 2004

    Quarterly Charge Out Rate by discipline since 2004 Quaterly Charge Out Rate by discipline since 2004 118 8 1200 116 1 115 0 116 8 118 4 114 8 900 626 630 627 630 642 625 600 407 4 10 403 406 4 10 4 14 300 CS TS PS 14

  16. Slide 16: Pierre Danon, Chief Operating Officer

    Pierre Danon Chief Operating Officer

  17. Slide 17: Booster Plan: Summary & objectives

    Booster Plan: Summary & objectives ƒ Sogeti: No change, let it win ƒ NA OS: TXU at break even during H2 ƒ NA P&C: Full swing transformation • Resize • No Massive disruption • Change the Business (People and revenue) Model in H2 • Refocus • Spitting distance from • Change the break even in H2 Managem

  18. Slide 18: Booster Update: Restructuring Status

    Booster Update: Restructuring Status STATUS ƒ SFC cut by 30 % from 2004 to 2006 9 ƒ Restructuring Costs 2005 / 2006 9 ƒ Pyramid leverage from 13/1 to above 20/1 9 17

  19. Slide 19: Booster Plan: Transformation Status

    Booster Plan: Transformation Status ƒ Geographic model in place, central resources managed down to 3% in 2006 ƒ National dimension managed ƒ CS and TS business models identified and clarified ƒ Attrition did not bump up, still has to decrease ƒ New mindset real and starting to bear fruits 18

  20. Slide 20: Booster Plan: transition to operational excellence

    Booster Plan: transition to operational excellence ƒ Utilization up to 79 % ƒ Overruns down to 2.5 % ƒ Non billable travel expenses from $2.5 M to less than $ 2.0 M ƒ Offshore penetration progressing (goal is 30 % in 2006) 19

  21. Slide 21: Booster Plan: Status vs Objectives

    Booster Plan: Status vs Objectives ƒ Bookings: • Strong end of quarter 2 • Win rate up 3% • Q4, Q1, Q2 in sequential stability, H1 still 19 % down YoY • Book to bill 1.07 • Funnel for H2: being stimulated by Sales Campaigns ƒ Revenue: • H1 flat YoY at $ 350M • H2 potential erosion will be contained

  22. Slide 22: Paul Hermelin, Chief Executive Officer

    Paul Hermelin Chief Executive Officer

  23. Slide 23: H2 2005: A new step in performance improvement

    H2 2005: A new step in performance improvement Accelerate North American 1 Turnaround Drive Sustainable, Profitable 2 Growth in Outsourcing Consolidate P&C European 3 Recovery + 4 Change gears in rightshore 22

  24. Slide 24: www.capgemini.com

    Cap CONSULTING. TECHNOLOGY.OUTSOURCING www.capgemini.com

  25. Slide 25: BACK UP

    HNOLOGY.OUTSOURCING BACK UP

  26. Slide 26: Revenue by Sector

    Revenue by Sector FS Q2 2005 7% 12% EU 11% 14% MRD 29% Gvt 27% Q2 2004 TMN GS 7% 12% 16% 16% At constant rate and perimeter 18% 31% 2004 restated for IFRS impact Excluding Sogeti-Transiciel 25

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