Bear Stearns 8th Annual Computer & Business Services Conference
Lanny Cohen NA Project & Consulting CEO June 12, 2007 Capgemini is breaking out of the pack !
Revenue, Growth & Margin
50% #1 Listed European IT Services Company Tata 1st European to move massively offshore: Infosys 40% +92% 2006 Satyam Q1’07 continues growth momentum: Wipro +18% revenues 30% Patni
20% Capgemini
% Growth Accenture 10% Logica EDS 0% CSC ATOS5% IBM 10% 15% 20% 25% 30% -10% Operating Margin %
Rankings – Gartner IT Services Worldwide Market Metrics Database April 2007 Kathryn Bear Stearns Conference Hale. © 2007 Capgemini - All rights reserved 1 Group Revenue
2400 2214 Q1 07 vs Q1 06 2200 2035 Current Growth = 18.5% 1915 Organic Growth = 14.2% 2000 1869 1881 Q1 07 vs Q4 06 1800 Current Growth = 8.8% Organic Growth = 4.1% 1600
1400 Q1 06 Q2 06 Q3 06 Q4 06 Q1 2007
Group Revenue in M €
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© 2007 Capgemini - All rights reserved 2 2007 Group Priorities
Improve Operational Efficiency Develop NA
Further MAP roll-out New leaders development Favor offshore margin accretion Grow Consulting Services Focus on low performing units Additional vertical offers Grow offshore leverage 1:3
Leverage Kanbay Integration Prepare for Step Changes in
FSI (NA, UK, test Continental Consulting Europe) BPO Non-FSI: regional adjustment India harmonization This will lead us to: ÆAbove market revenue growth Æ8.5% operating margin in 2008
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© 2007 Capgemini - All rights reserved 3 Our North America Business
Project & Outsourcing Financial Sogeti Consulting Services
$2.3 bn Company
• In 2006 Capgemini had the highest client • Member of the 2006 Business Week “Top 50 satisfaction score for the 2nd year in a row in a Places to Launch a Career” ranking Forrester scorecard that rates U.S. clients’ • Kanbay was the #1 performer in the Forbes satisfaction with their IT service providers Fast Tech 25 as the fastest growing public • Vault named Capgemini #8 in its Top 25 technology company in the US in 2006 Technology Consulting Firms in 2006 • AOS ranked #2 in the 2006 International • Capgemini was positioned as a leader for the Association of OS Professionals “Top 100 Global second year in a row in Gartner’s NA ERP Service Outsourcers” & #5 in the “Top 30 BPO Provider Magic Quadrant review and among the Providers” top 4 for both NA Supply Chain Management • Sogeti recently acquired Software Architects Service Providers and its NA CRM Service and remains the most profitable division in NA Providers Magic Quadrant with double digit growth each quarter
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© 2007 Capgemini - All rights reserved 4 NA Project & Consulting Revenue
270.8
236.3 237.7 222.2
183.7 175.7 172.8 170.2 165.3 Book 139.8 .
Ext. Rev.
Q1 06 Q2 06 Q3 06 Q4 06 Q1 07
NA Revenue in M $
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© 2007 Capgemini - All rights reserved 5 NA Project & Consulting Strategy
Sector Focus: • Life Sciences • Consumer Products & Retail • Energy, Utilities & Chemicals • Manufacturing
Strategic Platforms: • SAP • Oracle • Consulting Services Revitalization • Offshore Business Development • Collaboration with Outsourcing
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© 2007 Capgemini - All rights reserved 6 The Engine to Fuel Our Growth
Higher Share of wallet Intimacy Better Retention Leveraging references
Industrialization Innovation
Lower costs Higher mark-up Higher productivity Sector dominance Consistent quality Faster diffusion
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© 2007 Capgemini - All rights reserved 7 www.capgemini.com