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Capgemini — FY2009 Earnings Presentation
51 slides from Capgemini's earnings presentation, Feb 18, 2010
Slide 1: 2009 Full Year Financial Results
Together. Free your energies 2009 Full Year Financial Results Paris, 18 February 2010
Slide 2: Firmly Sailing the Storm thanks to i3 Outputs, Preparing for the Rebound
Firmly Sailing the Storm thanks to i3 Outputs, Preparing for the Rebound Satisfactory resistance in 2009 thanks to a good management of cyclical activities; margin commitment delivered despite worsening environment • A 8.7% revenue decrease in Q4 09, -6.7% excluding a large contract decrease • Rem
Slide 3: Income Statement Overview
Income Statement Overview FY 2009 (in M€) FY 2008 H1 2009 H2 2009 FY 2009 vs FY 2008 Revenues 8 710 4 376 3 995 8 371 -3.9 % Operating expenses -7 966 -4 089 -3 687 -7 776 Operating Margin 744 287 308 595 (% Revenues) 8.5% 6.6% 7.7% 7.1% - 1.4 pts Other operating income 20 - 7 7 Other operating expe
Slide 4: 2009 Revenues by Discipline
2009 Revenues by Discipline Consulting Services Local Professional Services 6.7% 16.9% 40.0% 36.4% FY 09 / FY 08 Consulting Services - 14.7% Outsourcing Services Technology Technology Services - 7.4% Services Local Professional Services - 8.3% CS / TS / LPS - 8.4% Outsourcing Services 0.3% TOTAL GRO
Slide 5: 2009 Revenues by Main Geography
2009 Revenues by Main Geography Rest of Europe, North America Asia & Latin America 18.9% 19.0% France 23.3% 22.1% Current Current Organic 16.7% FY 09 / FY 09 / UK (in M€) FY 2008 FY 2009 FY 08 FY 08 & Ireland North America 1 668 1 590 - 4.7% - 8.5% Benelux France 2 077 1 949 - 6.1% - 6.1% UK & Irela
Slide 6: 2009 Revenues by Sector
2009 Revenues by Sector Manufacturing, Retail Energy, Utilities & & Distribution Chemicals 13.0% 27.5% Financial Services 16.5% 2009/2008 6.9% Bookings Revenues 28.1% 8.0% Other Financial Services - 14.6% - 14.3% Energy, Utilities & Chemicals 31.1% - 8.7% Telecom, Manufacturing, Retail & Distributio
Slide 7: Bookings Evolution by Discipline
Bookings Evolution by Discipline (in M€) 4 500 Outsourcing 4 000 Project & Consulting 3 500 2 912 2 866 3 000 2 254 2 239 2 274 2 500 2 047 2 159 1 981 1 259 1 263 2 000 565 455 756 620 658 704 1 500 1 000 1 784 1 689 1 653 1 518 1 539 1 603 1 389 1 277 500 0 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 0
Slide 8: Book to Bill Evolution
Book to Bill Evolution (in M€) Consulting / Technology / Local Professional Services Q4 2009 Q4 Bookings Revenues BBR North America 276 242 1.14 Rest of the world 1 327 1 133 1.17 TOTAL 1 603 1 375 1.17 Consulting / Technology / Local Professional Services FY 2009 Q4 Bookings Revenues BBR North Amer
Slide 9: Q4 2009 Revenues by Main Geography
Q4 2009 Revenues by Main Geography North America Rest of Europe, Asia & Latin America 19.8% 17.9% France 24.8% 21.0% 16.5% Current Organic UK year on year on & Ireland Current sequential year sequential year Q4 09 / Q4 09 / Q4 09 / Q4 09 / Benelux (in M€) Q4 2008 Q3 2009 Q4 2009 Q3 09 Q4 08 Q3 09 Q4
Slide 10: Q4 2009 Growth by Discipline
Q4 2009 Growth by Discipline Sequential Year on year Q4 09 / Q3 09 Q4 09 / Q4 08 Consulting Services 8.9% - 15.5% Technology Services 9.9% - 13.0% Local Professional Services 11.7% - 8.9% CS / TS / LPS 10.3% - 12.2% Outsourcing Services 0.6% - 1.7% TOTAL GROUP 6.6% - 8.7% At constant rates and perim
Slide 11: Utilization Rates by Discipline
Utilization Rates by Discipline Consulting Services Technology Services Local Professional Services 90 83 83 83 (%) 82 81 80 80 81 81 81 81 82 79 80 80 78 77 71 68 70 67 67 67 65 63 63 60 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2008 2009 2008 2009 At cons
Slide 12: Charge-out Rates
Charge-out Rates 1200 1 169 1 171 1 162 1 169 (in €) 1 137 1 113 1100 1 030 1 011 600 1000 900 511 511 Consulting Services 508 489 498 497 500 482 800 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 464 2008 2009 Technology Services 400 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 500 481 484 474 481 477 479 477 470 2008 2009 Local Professiona
Slide 13: Onshore – Offshore Headcount Evolution
Onshore – Offshore Headcount Evolution BAS acquisition +2,165 38000 65000 66 346 65 456 64 426 33000 63 675 63 995 63 740 64 135 63 415 62 512 60000 28000 28 004 25 609 25 863 55000 25 275 25 027 23 997 23000 22 747 20 571 50000 19 833 18000 Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 De
Slide 14: Headcount Evolution
Headcount Evolution Headcount as of Dec. 31, 2008 91 621 Recruits * 13 072 60% Offshore Acquisitions / Outsourcing Deals ** 543 Disposals - 250 Layoffs - 5 003 Leavers - 9 467 Headcount as of Dec. 31, 2009 90 516 (*) of which 5 762 in India 2 139 in other offshore locations Attrition YTD Dec 08 Dec
Slide 15: Further Offshore Leverage in 2009, Mainly in OS and FS
Further Offshore Leverage in 2009, Mainly in OS and FS 67.8% 70% 66.8% Offshore Penetration per unit 55.8% 60% 56.6% 55.0% 48.3% 50% 40% 32.1% 26.5% 28.5% 30% 24.0% 18.2% 16.8% 20% 9.6% 9.9% 6.0% 10% 4.7% 5.1% 2.5% 0% Global CC NA TS TS Northern TS Central TS Outsourcing Sogeti FS & Asia Group Europ
Slide 16: Evolution of Group Remuneration Cost from 2008 to 2009
Evolution of Group Remuneration Cost from 2008 to 2009 2009 Average salary increase onshore : 1.5% Average remuneration decrease onshore: - 3.3% (incl. currency effects) 2009 Average salary increase offshore: 2.8% Average remuneration decrease offshore : - 9.7% (incl. currency effects) Gro
Slide 17: Operating Margin Analysis
Operating Margin Analysis FY 2009 7.0% At current rates and perimeter Operating Selling 10.7% 7.4% G&A Margin FY H1 H2 FY 7.1% 9.3% (in M€) 2008 2009 2009 2009 7.5% Revenues 8 710 4 376 3 995 8 371 Personnel costs - 4 940 - 2 588 - 2 263 - 4 851 % of Revenues 56.7% 59.1% 56.6% 58.0% 76.1% Purchase a
Slide 18: Operating Margin by Main Geography
Operating Margin by Main Geography FY 2008 FY 2009 Op. Op. (In M€) Revenues % Revenues % Margin Margin North America 1 668 91 5.5% 1 590 77 4.9% France 2 077 148 7.1% 1 949 121 6.2% UK & Ireland 1 922 164 8.5% 1 852 165 8.9% Benelux 1 303 183 14.0% 1 397 122 8.7% Rest of Europe, Asia & 1 740 216 12.
Slide 19: Operating Margin by Discipline
Operating Margin by Discipline FY 2008 H1 2009 H2 2009 FY 2009 Consulting Services 12.8% 10.6% 12.4% 11.4% Technology Services 10.2% 6.2% 7.6% 6.9% Local Professional Services 12.9% 9.1% 10.2% 9.7% CS / TS / LPS 11.3% 7.5% 8.8% 8.1% Outsourcing Services 5.4% 6.7% 7.7% 7.2% Total Operations (*) 9.2%
Slide 20: Net Profit Analysis
Net Profit Analysis (in M€) FY 2008 FY 2009 Operating Margin 744 595 Other operating income 20 7 Other operating expenses - 178 - 269 of which Restructuring costs - 103 -213 Stock options, performance shares and @ESOP - 22 -19 Net finance expense - 19 - 93 Income tax expense - 116 - 61 Share of prof
Slide 21: Balance Sheet
(in M€) Balance Sheet Dec. 31, Dec. 31, Dec. 31, Dec. 31, ASSETS EQUITY AND LIABILITIES 2008 2009 2008 2009 Goodwill 2 726 2 750 Equity 3 939 4 213 Intangible assets 140 116 Long-term borrowings 987 1 057 Property, plant and equipment 422 421 Deferred taxes 138 153 Provisions for pensions and other
Slide 22: Net Cash Evolution
Net Cash Evolution 70 (in M€) 273 328 161 13 4 20 595 56 55 185 225 139 135 1 269 1 176 774 347 M€ operational flow vs 413 M€ in 2008 Cash net of 2009 2009 Amorti- Payment CAPEX Payment Other Working Tax Exchange Cash bef. Dividends Increase Acqui- Net Impact Cash Net of Debt Operating Bonus zation
Slide 23: Market Still Soft in Early 2010, Opened Perspectives
Market Still Soft in Early 2010, Opened Perspectives Slow start of our activities impacted by 2009 elements Two large contracts evolution impact H1 2010 growth by 3.3 points H2 2009 price decreases on-going impact Lower onshore headcounts level not fully compensated by offshore growth Demand s
Slide 24: Tackling 2010 with Agile Resources Management
Tackling 2010 with Agile Resources Management Net Recruits / Leavers 2 000 Net hiring resumed as of Q4 09, 993 early 2010 showing same trend 1 000 603 Recruits 284 • 650 recruits onshore, Leavers 1.000 offshore in January 2010 only 0 Net -1 000 Oct Nov Dec Offshore penetration in 2010 Continuing
Slide 25: Our Top Priorities to Win the Profitable Growth Battle
Our Top Priorities to Win the Profitable Growth Battle Continue to improve our resilience by leveraging 1 Outsourcing Run of our ‘business as Unusual’ program launched in Nov 09 2 Focus on five global service lines to address high-growth market segments Reengineer our delivery using Lean methods
Slide 26: A Strong Outsourcing Business at the Heart of the Group
A Strong Outsourcing Business at the Heart of the Group A dynamic business, already bringing more than 36% of the Group revenue Good signing and renewals in Q4 09 and early 2010 • In the UK: Environment Agency (with TS), House of Fraser, • In North America: Smith and Nephew, Warner Bros, Ontario P
Slide 27: Top Line Push with High Sales Force Mobilization on our Global Service Lines
Top Line Push with High Sales Force Mobilization on our 5 Global Service Lines Launch dates Business Information Management Oct 09 Gaining insights from information stored in business applications by Win at KPN in the Netherlands helping the enterprises to retain, organize and analyze their data N
Slide 28: Going further on Delivery Management for Increased Competitiveness
Going further on Delivery Management for Increased Competitiveness 6 ERP and ALS pilot projects launched since Q4 2009 Early results bringing up significant cost reduction potential • Increased offshore leverage Delivery methods • Streamlined issue management reengineered with • Advanced applica
Slide 29: Preparing Next Growth Steps Leveraging the Market Appetite for Technologies
Preparing Next Growth Steps Leveraging the Market Appetite for Technologies Improving our business expertise and reinforcing our solution portfolio Selective • Global procurement service offering, including software-as-a-service purchasing technology, thanks to the recent IBX acquisition acquisiti
Slide 30: Capgemini Has Already Positioned its Profitable Growth Model
Capgemini Has Already Positioned its Profitable Growth Model Growth LEAD SHAPE ITS Cloud Application Life cycle Services Business Information Management Testing Services Smart Energy Services Managed Services From IT… …to business technology Industrialization Innovation 2009 Full Year Financial resu
Slide 31: 2010 Outlook
2010 Outlook Revenues: - 2 to - 4 % like for like Operating margin: 6.0 to 6.5 % Dividend: € 0.80 per share 2009 Full Year Financial results Together. Free your energies Financial analysts © 2009 Capgemini. All rights reserved 31
Slide 32: Back Up
Back Up
Slide 33: Revenues Quarterly Evolution
Revenues Quarterly Evolution 2 300 2 238 (in M€) 2 205 2 185 2 189 2 171 2 098 2 100 2 049 1 946 1 900 1 700 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 2008 Q2 2008 H1 2008 Q3 2008 Q4 2008 H2 2008 FY 2008 Q1 2009 Q2 2009 H1 2009 Q3 2009 Q4 2009 H2 2009 FY 2009 In M€ (Published) 2 185 2 189 4
Slide 34: Q4 2009 Revenues by Geography
Q4 2009 Revenues by Geography Current Current Organic Year on Year on Sequential Sequential year year Q4 2008 Q3 2009 Q4 2009 Q4 09 / Q4 Q4 09 / Q4 (in M€) Q4 09 / Q3 09 08 Q4 09 / Q3 09 08 North America 455 388 366 -5.5% -19.4% -2.8% -10.8% Europe, Asia & Latin 1 783 1 558 1 683 8.0% -5.6% 8.9% -8.
Slide 35: H2 2009 Revenues by Geography
H2 2009 Revenues by Geography Current Current Organic Year on Year on Sequential Sequential year year H2 2008 H1 2009 H2 2009 H2 09 / H2 09 / (in M€) H2 09 / H1 09 H2 08 H2 09 / H1 09 H2 08 North America 857 836 754 - 9.8% - 12.0% - 3.4% - 9.1% Europe, Asia & Latin 3 479 3 540 3 241 - 8.4% - 6.8% -
Slide 36: 2009 Revenues by Geography
2009 Revenues by Geography Current Current Organic (in M€) FY 2008 FY 2009 FY 2009 / FY 2008 North America 1 668 1 590 -4.7% - 8.5% Europe, Asia & Latin America 7 042 6 781 - 3.7% - 4.7% of which : France 2 077 1 949 - 6.1% - 6.1% UK & Ireland 1 922 1 852 -3.6% 7.5% Benelux 1 303 1 397 7.3% - 12.9%
Slide 37: 2009 Revenues by Geography
2009 Revenues by Geography Southern Europe Asia & Latin Pacific America North FY 2009 1.4% America Southern Europe France Asia & Latin 19.7% America Pacific North 5.1% America 1.6% 23.4% France 19.5% 19.0% 5.2% 6.7% UK 23.3% Germany & Ireland & Central 18.1% 6.1% 22.1% Europe Germany 6.3% Benelux No
Slide 38: 2009 Revenues by Discipline
2009 Revenues by Discipline Consulting Local Professional Services Services 7.4% 17.5% 40.8% FY 2009 34.3% Outsourcing Services Consulting Local Professional Services Technology Services Services 6.7% FY 2008 16.9% 40.0% 36.4% Outsourcing Services Technology At constant rates and perimeter Services
Slide 39: 2009 Revenues by Sector
2009 Revenues by Sector Energy, Utilities & Chemicals Manufacturing, Retail & Distribution 13.0% Financial FY 2008 27.5% Services 16.5% Energy, Utilities & Chemicals Manufacturing, Retail & Distribution 8.0% 6.9% Telecom, Media & 13.5% Entertainment 28.1% Financial Other 27.6% Services 18.2% Public
Slide 40: Evolution of Headcount by Discipline
Evolution of Headcount by Discipline Dec. 09 / Dec. 09 / June 08 Dec. 08 June 09 Dec. 09 Dec. 08 June 09 Consulting Services 4 924 4 407 4 190 3 918 - 11.1% - 6.5% Technology Services 37 970 40 340 38 344 39 555 - 1.9% 3.2% Outsourcing Services 24 229 26 397 27 383 28 184 6.8% 2.9% Local Professiona
Slide 41: Headcount by Geography
Headcount by Geography NORTH AMERICA : TOTAL GROUP: NORDIC : • Opening: 8 379 8,379 Opening: 91 621 Closing: 90 516 D in P: - 1 105 D in %: - 1,2 % • Opening: 4 049 4,049 • Closing: 7 950 8,100 • Closing: 3 681 4,008 • Change in Person: - 429 279 • Change in Person: -368 - 41 • Change in %: - 5,1 3.
Slide 42: Operating Margin by Geography
Operating Margin by Geography 0 FY 2008 H1 2009 H2 2009 FY 2009 Op. Op. Op. Op. (in M€) Revenues Margin % Revenues Margin % Revenues Margin % Revenues Margin % North America 1 668 91 5.5% 836 44 5.3% 754 33 4.4% 1 590 77 4.9% France 2 077 148 7.1% 1 009 49 4.9% 940 72 7.7% 1 949 121 6.2% UK & Irelan
Slide 43: Operating Margin Analysis by Destination
Operating Margin Analysis by Destination (in M€) FY 2008 H1 2009 H2 2009 FY 2009 Revenues 8 710 4 376 3 995 8 371 Cost of services rendered - 6 478 - 3 345 - 3 021 - 6 366 % of Revenues 74.4% 76.4% 75.6% 76.1% Gross Margin 2 232 1 031 974 2 005 % of Revenues 25.6% 23.6% 24.4% 24.0% Selling Expenses
Slide 44: Other Operating Income and Expense
Other Operating Income and Expense (in M€) FY 2008 H1 2009 H2 2009 FY 2009 Restructuring costs (103) (102) (111) (213) Of which : People (68) (80) (71) (151) Transition to Offshore (14) (4) (6) (10) Buildings (21) (18) (34) (52) Integration costs (7) (5) (11) (16) Impairment of goodwill (18) - (12)
Slide 45: Net Finance Expense
Net Finance Expense (in M€) FY 2008 FY 2009 Interest on convertible bonds (46) (56) Other interest expenses (20) (9) Income from cash and cash equivalents 68 22 Net finance costs 2 (43) Other financial income 86 75 Other financial expense (107) (125) Net finance expense (19) (93) 2009 Full Year Fina
Slide 46: Income Tax Expense
Income Tax Expense (in M€) FY 2008 FY 2009 Current income tax (87) (24) Tax payable on profit (69) (37) Tax not based on taxable income (15) (16) Adjustments on previous periods (3) 29 Deferred income tax (29) (37) Tax losses • Net utilization of deferred tax assets on tax losses (69) (61) France (5
Slide 47: Net Cash Evolution
Net Cash Evolution (In M€) FY 2008 H1 2009 H2 2009 FY 2009 Profit for the period 451 78 100 178 Impairment of goodwill 24 0 12 12 Depreciation, amortization and impairment of fixed assets 213 83 81 164 Net charges to provisions (62) (13) (41) (54) Gains and losses on disposals of assets 3 3 1 4 Net
Slide 48: Equity
Equity (in M€) Total equity as of January 1, 2009 3 939 Dividends paid out for 2008 (143) Valuation of stock options, @ESOP shares and performance shares grants 19 Treasury shares 7 Increase in capital upon exercice of stock options 52 Increase in capital related to @ESOP 164 Increase in capital rel
Slide 49: Capex
Capex FY 2009 Intangible Property, FY 2008 (in M€) assets plant & Total equipment December 31, n-1 140 422 562 613 Acquisitions 26 139 165 177 Disposals (1) (27) (28) (23) Amortization / Depreciation (43) (121) (164) (213) for the period Perimeter changes 1 - 1 38 Other movements & (7) 8 1 (30) tran
Slide 50: Off Balance Sheet Commitments
Off Balance Sheet Commitments Off Balance Sheet Commitments as of December 31, 2009 : Commitments given • Non cancealable leases (mainly offices, vehicles, computers) € 865M • Other commitments: • Other commitments € 53M • Covenants on OCEANE bonds and syndicated credit facilities Compliant • Limite
Slide 51: Together. Free your energies www.capgemini.com
Together. Free your energies www.capgemini.com The information contained in this presentation is proprietary. ©2010 Capgemini. All rights reserved