Société Générale The Premium Review Conference. Paris, December 1, 2011

Transcription

1 Société Générale The Premium Review Conference

2 Capgemini is the leading IT services vendor in Europe, in a market with strong fundamentals Revenues 2010 ( m) Leading European player Resilience and upward momentum in IT spending IT services spending ($bn) % headcount offshore 39% 10% 16% N.A. 37% 1,000 8,579¹ 8,697² , ,714 2, Tieto Indra Sistemas Logica Atos Capgemini E 2012E Note: As latest reported ¹ Pro forma acquisition of SIS ( 3.6bn revenues in 2010) ² CPM Braxis included for c.3 months Source: IT Services Worldwide Forecast, , Gartner 2

3 A diversified business Revenue by business¹ Revenue by geography¹ Revenue by sector¹ Local Professional Services 14.9% Consulting Services 4.8% Technology Services 40.5% Southern Europe & Latin America France 22.0% Asia- Pacific 11.6% 3.1% 18.3% 19.9% North America UK & Ireland Manufacturing 18.4% 23.1% 10.0% Energy, Utilities & Chemicals 22.3% Financial Services Outsourcing Services 39.8% Germany & Central Europe 6.6% 12.8% Benelux 5.7% Nordic Countries Public Sector c.3/5 UK c.1/5 Netherlands 9.3% 4.1% Others Telecom, Media & Entertainment 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 ¹ As of Q3 11 3

4 A resilient business model - Revenue Long-term quarterly revenue trend¹ ( m) Key drivers for resilience 3,000 Increasing share of outsourcing 2,500 2, % of revenue as of Q vs. 22% in 2001 Strong organic growth through new client wins and 2,000 1,500 1,764 Q3 11 % growth: 13.0% Q3 YTD % growth: 12.9% expansion in emerging geographies Average y-o-y organic growth rate of 7.6% since ,000 Recent expansion into emerging markets with the acquisition of CPM Braxis (c.5% of Capgemini s 500 revenues) 0 FY ,954m FY ,700m FY ,703m FY ,710m FY ,371m FY ,697m FY ,480m² New segments opportunity: smart energy, BIM, IT CRM (with acquisition of Prosodie) ¹ At current rates and perimeter ² Implied by bottom-end of guidance (+9% y-o-y revenue growth) 4

5 A resilient business model Operating margin Long-term operating margin trend (% margin) Key drivers for resilience 12% Offshoring Now 37.4% of total headcount 10% Offshore leverage increasing across businesses 8% 6% 4% 3.2% 5.8% 7.4% 8.5% 7.1% 6.8% 7.3%E Cost optimization initiatives, e.g. Lean program on 25% of Group s headcount with a target gain of 100bp margin Transfer progressively offshore 20% of non client facing business development costs Cross-business unit utilization 2% Mix effect: higher contribution from new business models and BPO 0% Implied by bottom-end of guidance (+0.5ppt y-o-y increase in operating margin) 5

6 A diversified client exposure Majority of clients are blue-chip companies or governmental entities Top 50 clients represents less than 50% of revenue of revenue Top client = 10.2% of 2010 revenue Second biggest client = 2.3% of 2010 revenue 6

7 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 NORDIC : Opening: Closing: Change in Person: +425 Change in %: +10.6% NORTH AMERICA : Opening: Closing: Change in Person: +562 Change in %: +6.5% UK & IRELAND : Opening: Closing: Change in Person: +265 Change in %: +3.1% Southern Europe & Latin America: Opening: Closing: Change in Person: +912 Change in %: +6.1% FRANCE : Opening: Closing: Change in Person: Change in %: +6.1% BENELUX : Opening: Closing: Change in Person: -383 Change in %: -3.6% CENTRAL EUROPE : Opening: Closing: Change in Person: +695 Change in %: +8.8% ASIA PACIFIC : Opening: Closing: Change in Person: Change in %: +14.9% 7

8 Building strong alliances with technology leaders... Winner of the Best Converged Infrastructure Solutions 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 months. with no associated technology risk for Capgemini 8

9 Group strategic objectives Recurrent revenue of 1bn in New Business Model 10% of revenues in Fast Growth Economies Strong Capgemini consulting franchise Cloud enabled infrastructure Offshore leverage combining innovation and industrialization 1bn revenue with an IT intensive BPO Productivity improvement through Lean program 9

10 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 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 10

11 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 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) 11

12 Relentless cost optimization Capgemini is constantly aiming at increasing its operational flexibility, in order to adapt to business transformation and cycles Continue offshore development Offshore workforce evolution ( 000) (%) Offshore workforce % of total headcount 50 50% Average decrease in remuneration costs of 4.0% over (constant rates) Transfer progressively offshore 20% of non client facing business development costs Lean program initiative for delivery as part of Industrialization effort % % % 40% 30% Methodology, tools, shared program management, etc. Medium term target gain of 100bp % 27.6% 20% Improved cross-business unit utilization Worldwide staffing initiative, supply chain improvement, management of hidden investments Agile restructuring to optimize age pyramid re-balancing % 7.7% Q % 0% 12

13 Summary financials m H1 10 H1 11 Revenues 8,371 8,697 4,211 4,756 % growth (3.9)% 3.9% % EBITA % margin 7.1% 6.8% 5.8% 6.1% Net profit (Group share) Q3 11 Revenues: 2,378m Q3 10 Revenues: 2,105m % growth: +13.0% y-o-y Seasonality of operations with H1 margins traditionally lower than full-year EBIT+Amort. and provisions Changes in NWC 86 (119) (358) (607) Taxes paid (56) (52) (35) (42) Organic operating cash flows¹ (319) (576) Total cash flows 592 (206) (460) (894) Low cash tax rate (<20%) due to tax credits in North America and France Gross debt² 1,328 1,315 1,154 1,309 Net cash 1,269 1, Cash position traditionally lower end of H1 due to seasonality Total equity 4,213 4,307 4,322 4,162 ¹ Defined as Net cash from operating activities (see Consolidated Financial Statements)-Capex net of disposals-net interest ² Defined as ST+LT borrowings, includes derivative instruments on borrowings 13

14 FY 2011 to-date: financial performance summary Sales ( m) EBITA ( m) Net profit ( m) 4,211 4, ,105 2, H H Q Q

15 H1 & Q3 2011: revenue and margin results on-track with full year guidance High revenue organic growth Solid improvement of operating margin and net result H1 2011/2010 Q3 2010/ m +18% Consulting Services - 1.6% - 0.9% Technology Services + 9.6% + 7.2% Sogeti + 7.3% + 5.3% % Outsourcing + 6.6% + 2.7% Application Management + 0.4% % 6.1% ¹ Infrastructure Management + 9.4% 50 BPO % Group Total + 7.4% +4.7% 0 H H Operating margin % of revenues Net result Group share ¹ Operating margin excl. CPM: 6.3% of revenues 15

16 Operating margin by business H H H 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% 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% Note: At current rates and perimeter ¹ Before headquarters expenses ² 5.4% at 2011 perimeter 16

17 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

18 The information contained in this presentation is proprietary Capgemini. All rights reserved