deutsche bank european technology conference...• robust client appetite for outsourcing services...
TRANSCRIPT
Together. Free your energies
Deutsche Bank European Technology ConferenceSeptember 11, 2009
Nicolas Dufourcq, CFO
Together. Free your energies| DB Euro Technology Conference 2009
© 2009 Capgemini. All rights reserved 2© 2009 Capgemini. All rights reserved 2
Solid H1 Achievements in a Tough Environment
� H1 commitments delivered• Limited YoY revenue decrease, good margin protection• Positive momentum in Q2 with a 1.10 book-to-bill ra tio in Projects and Consulting• Solid Outsourcing results: +2.6% revenue growth, ma rgin progression +1.8 point
� Healthy financials• Strong cash collection• Successful financial operations demonstrating marke t confidence and
management commitment
� Resilient assets proving their efficiency in the do wnturn• Robust client appetite for Outsourcing services• Benefits from significant footprint in the Public s ector and Energy & Utilities• Solid offshore lever
� Rigor and agility through stringent resources manag ement
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A Balanced Portfolio Softens Adverse Market Conditions
Margin by discipline
Consulting
Technology Services
Sogeti
Outsourcing Services
GROUP TOTAL
6.8%17.0%
40.3%35.9%
Outsourcing Services
Local Professional Services
13.4%
7.0%
28.5%
8.1%
27.0%
16.0%
Energy, Utilities &Chemicals
Financial Services
Public Sector
Telecom, Media & Entertainment
Manufacturing, Retail & Distribution
Consulting Services
TechnologyServices
H1 2009 Revenues by Sector
H1 2009 Revenues by Discipline
- 13.4 %
- 2.6 %
- 5.4 %
+ 2.6 %
H1 09 vs H1 08
- 2.2 %
Organic Growth by discipline
Other
10.5 %
6.1 %
9.1 %
6.5 %
Consulting
Technology Services
Sogeti
Outsourcing Services
H1 09
6.6 %GROUP TOTAL
H1 09 vs H1 08
- 2.8 pts
- 3.1 pts
- 2.4 pts
+ 1.8 pt
- 1.0 pt
6.8%
40.3%
35.9%
17.0%
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H1 Bookings Stable Year-on-Year but Drivenby Outsourcing
1 690
566
1 785
456
1 389
659
1 653
1 260
1 518
756
1 539
620
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09
Outsourcing
Project & Consulting
2 256 2 2412 048
2 913
2 274 2 159
4 497
4 433
At constant rates & perimeter
(in M€)
Book to Bill Ratio
North America 1.09
Rest of the world 1.06
TOTAL 1.07
At budget rates
- 11 %Financial Services
+ 19 %Telecom, Media & Entert.
- 20 %Manufacturing, Retail, Distrib.
Evolution H1 09 vs H1 08
Public Sector + 35 %
Energy & Utilities stable
Change in bookings by sector
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Group Headcount Evolution 2006-2009
58 872 63 675 66 346 64 426
9 01719 833
25 275 25 027
31/12/2006 31/12/2007 31/12/2008 30/06/2009
OnshoreOffshore
+120%
+8.2%
+27.4%
+4.2%
-1.0%
-2.9%
Offshore Remaining a Key Stabilizer
� A slight decrease of offshore headcount in H1 fully linked to reduced business volumes in the Financial sector
� Some political constraints limiting offshore demand expansion locally � But still appetite for Rightshore solutions confirmi ng the model
• Early signs of booking recovery in the Financial se ctor in Q2• Large demand in Infrastructure Management across se ctors
207Morocco
100Vietnam
598China
1,032
3,240
19,950
Latin America
Poland
India
Offshore ratio 28.0%
Starting H2
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Enhance usage of our centers of excellence in India,
domain platforms and delivery centricity
for content management and re-use
Enhance usage of our centers of excellence in India,
domain platforms and delivery centricity
for content management and re-use
End-to-end responsibility of some service offerings,
e.g. Business Intelligence Management
End-to-end responsibility of some service offerings,
e.g. Business Intelligence Management
Continuous Offshore Transformation in
Sales, Delivery, Leadership
• End-to-end delivery responsibilityon selected accounts
• Account management responsibility and support
• End-to-end delivery responsibilityon selected accounts
• Account management responsibility and support
Offshore is not Just About Numbers
Offshore locations diversification
• New center in Romania• IACP acquisition in Vietnam
Offshore locations diversification
• New center in Romania• IACP acquisition in Vietnam
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© 2009 Capgemini. All rights reserved 7
�An uneventful summer� Activity in line with expectations
� No material change in late August forecast
� No collapse of the market but no clear sign of reco very yet
� Financial Services remains the only sector where a real change in attitude is noticeable
No Surprise in Current trading
�October remains key, as always
� Our clients to get their first glimpse at their 10 budgets, giving us near perfect visibility on 09, and the base for our budget process
Together. Free your energies| DB Euro Technology Conference 2009
© 2009 Capgemini. All rights reserved 8
Outlook for FY 2009
H2 year-on-year organic revenue decrease of 4% to 6%(full year -3% to -4%)
Full year operating margin of around 7% of revenues
Together. Free your energies| DB Euro Technology Conference 2009
© 2009 Capgemini. All rights reserved 9
Together. Free your energies
Deutsche Bank European Technology ConferenceSeptember 11, 2009
Nicolas Dufourcq, CFO