Capgemini 2008 Audited Results

12 February 2009

The Board of Directors of Cap Gemini S.A., chaired by Serge Kampf, convened on February 11, 2009 to review and authorize for issue the audited financial statements for the year ended December 31, 2008.

After a fourth quarter up by 3.3% on Q4 2007, the Capgemini Group has recorded for the full year, revenues growth of 5.0% on a like-for-like basis (constant Group structure and exchange rates). However on a published basis (current Group structure and exchange rates), revenues are practically the same as for last year, due to the strong appreciation of the Euro against the US dollar (+6.9%) and especially the pound sterling (+16.1%), two currencies which accounted for more than 40% of the Group’s consolidated revenues in 2007.

Bookings for the year in consulting, technology and local professional services amount to €6,221 million, up by almost 9% over 2007, and the book-to-bill ratio is 1.09.

Outsourcing has recorded bookings of €3,038 million from which €1,149 million should be deducted following the amicable separation agreement concluded at the end of the year with EFH, who, having acquired our client TXU, decided to exercise the change of control clause included in the contract signed with the latter in 2004.

Outside of the effects of the renegotiation of certain major contracts, total bookings reach €9,259 million, which is a rise of 4% on the comparable number for 2007.

Operating margin – which is up in all four of the Group’s disciplines – comes out at €744 million, which is 8.5% of 2008 consolidated revenues, against 7.4% for last year.

Net other operating expense is €158 million (which includes €103 million in restructuring costs), leading to an operating profit of €586 million, which is 6.7% of revenues.

After net finance expense of €19 million and a tax charge of €116 million, consolidated profit for the year amounts to €451 million, or 5.2% of revenues.

2008 acquisitions (in particular Getronics PinkRoccade Business Applications Services BV) have not weakened the financial strength of the Group, with net cash of €774 million at December 31, 2008.

Earlier today the Board of Directors decided to recommend the payment of a dividend of €1 per share([3]) at the next General Shareholders Meeting i.e. one third of Group profit for the year, in line with Capgemini’s dividend policy.

Outlook for 2009
In a climate of high uncertainty, the Group considers that it does not have enough visibility beyond the first half. For the first six months of the year like-for-like revenues could see a modest decline. This would only have a limited impact on the operating margin, which should remain above 6.5% (operating margin for the first half of 2008 being 7.6%).

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