European IT & Technology Conference

Paris, 16 March 2006

Hubert GiraudBusiness Process Outsourcing CEO

1

In 2005, Capgemini got back into the race1. Capgemini won market share

Q1 + 20.3%Q2 + 22.1%Q3 + 9.8%Q4 + 9.6%FY + 15.0%

Organic growth

2005/2004

3. Capgemini returned to profit

2. Capgemini has significantly improved operating performance

-4420

62

163

H1 2004 H2 2004 H1 2005 H2 2005

-1.5%

-600

-500

-400

-300

-200

-100

0

100

200

300

Operating margin

2004 2005

-534

+141

-24

+225

Net Income +675 ME

Operating margin+3,6 pt

4. Capgemini achieved its major goals

1 Consolidate Project & Consulting European recovery

2 Accelerate the North American turnaround

3 Drive sustainable, profitable growth in outsourcing

4 Change gears in RightshoreTM

+0.6%+1.8%

+4.7%

2

In 2005, Capgemini won market share

RightshoreTM

US presenceAlliances

“From consulting to outsourcing & Business Process Outsourcing”

Transformation capabilityFront-office

Collaborative Business Experience“decentralization and entrepreneurship”

Due to our unique position… ...These clients trusted us in 2005

Le chiffre d’affaire du groupe progresse de +15%Toutes nos activités sont en croissance

Versus European competitors

Versus global Tech competitors

Versus Indian Pure Play competitors

Versus other leadersIn the sector

Group revenues are up +15%All our businesses are growing

3

In 2005, Capgemini returned to profit

Project & Consulting Europe

TOTAL US

Incl. Consulting & Technology services US

Outsourcing

Operating Margin

European P&C levels of profitability are in line with our peersNorth America profitable in H2 2005 Outsourcing on a strong improvement trend, accelerated by MAP

Group Operating margin

Net Income (M€)

3.4% (e)

- 8.0%-11.9% (e)

- 2.0%

8.7%2.8%

- 0.8%1.5%

2004

6.3%- 6.6%-8.2%- 1.2%

H1 2005 H2 2005

- 0.4% 1.8% 4.7%

-534 +58 +83

+141

4

In 2005, Capgemini achieved its major goals

1 Consolidate Project & Consulting European recovery

These businesses have begun a new expansion cycleA few lead indicators point the way forward

Top performers (Divisional Margin)

(%)

123456789

Sd&MSogeti NetherlandsTME C4France CSPortugal Sogeti SwedenFrance TS WestSogeti BeluxNetherlands CS/TS

18.417.014.512.111.611.411.010.910.9

Best operational swings

-10

-5

0

5

10

15FR CS+TS NL CS+TS UK CS+TS Norway Finland Denmark Italy Spain

2004 Divisional margin

+7,2 +4,6 +5,5 +8 +10,1 +4,7+3,7 +4,7

2005 Division margin

5

In 2005, Capgemini achieved its major goals

2 Accelerate US turnaround

Turnaround plan has delivered above forecastTurnaround will be confirmed during H1 2006

Sales Performance

P&C bookings H2 2005 : + 5% vs. H2 2004+ 3% vs. H1 2005

P&C bookings Q4 2005 : + 10% vs. Q4 2004

Return to profitUS Operating margin : + 2.8% en H2 2005 vs. - 8% in 2004TS & CS Operating margin close to breakeven

Lower Attrition

Headcount : 3,200 in Dec. 05 vs. 2,900 in July 05Stabilize onshore headcountDouble offshore headcountStabilize attrition rate at around 25%

Operating Efficiency

Pipeline P&C > $ 1BnOverruns : - 50% vs. 2004

2% of revenues in Q4 2005

6

In 2005, Capgemini achieved its major goals

3 Drive sustainable, profitable growth in outsourcing

Over 15% of outsourcing work mobilizes skills from CS and TS businessesMAP launched to accelerate outsourcing profitability

Mega Deals

HMRC

Business Process Outsourcing / Application Mgt / Infrastructure Mgt

significant additional work2 millions (+40%) online assessment as of 31/01/06

TXU

Schneider

18 months ahead of schedule1,400 Rightshore seatsMeasured client satisfaction (99%)

BPO breakthrough in Finance & Administration

Rebalanced portfolio (19 new deals between € 10-50M)

Growth of AM vs. IM

Strong commercial drive :

GM : € 498M

Metropolitan Police : € 503M

Swansea : € 91 M

Zurich : € 41 M

Successful transition (31countries)Global Core System production delayed by 6 months / one year

7

M€FY 2004IFRS restated

H1 2005 H2 2005 FY 2005FY 2005

vsFY 2004

Operating Revenue 6 235 3 472 3 482 6 954-6 729

2253.2%

175-186214-38

-35141904

61,036

+11.5%*Operating expenses -6 259 -3 410 -3 319Operating Margin -24 62 163(% Op. Revenue) -0.4% 1.8% 4.7% +3.6 ptOther operating Income 6 143 32Other operating expense -263 -82 -104Operating income -281 123 91Financial Interest Income & Expenses, net

-27 -9 -29

Income tax expense -226 -56 21Profit/(Loss) for the period -534 58 83Net cash and cash equivalents 285 498 904 +618Number of employees (end of period) 59,324 59,190 61,036

(*)+15% organic

Strong growth & margin improvement

8

In 2005, Capgemini set out its future1. Launch of the MAP initiative 2. Doubled ‘RightshoreTM’ Capability

4. Capgemini has adapted to new demand in the market3. Capgemini recruited and

invested in training

2005

Div

isio

n M

argi

n

2%

8%

Jan 2005 Feb 2006

Indi

an h

eadc

ount

2000

4000

14,500 new hires

1.7 M training hours

2006

4%

Service Oriented ArchitectureRightshoreTM EuropeBPO Finance & Administration3rd Generation ERP…

9

In 2005, Capgemini launched the MAP initiative

Revenues

Production costs

Business Mix

Re-negotiation

Purchasing

Rightshore

Rationalization

General Expenses Support Function

TBD

0.5%

1 – 1.5%

1.5 – 2%

1 – 1.5%

1 – 1.5%

Impact on Op. MarginLevers

MAP in implementation phase since Dec. 2005Goal: divisional operating margin of 4% in 2006

Project : Governance structure in place Full time team of 14 people (OS+CS)

RationalizationNew organization in Service Line (Europe, US, BPO)Sale of hardware maintenance business France to Unisys

PurchasingGood start to the Cap 30 program

Rightshore : Growth led in 2006 by GM and Eli Lilly

Re-negotiation3 contracts currently under re-negotiation in Q1 2006

Support Functions:Closure of site in UK and NetherlandsBPO of F&A functions

10

In 2005 Capgemini increased “RightshoreTM” capability

Capgemini is the leading European company in offshoreTarget is to have 10,000 people in India by 2007

India

China

Poland

Spain

France

2,050

200

350

150

300

Headcount ‘04Country Headcount ‘05 Type

3,550

400

750

300

450

Offshore TS/OS/BPO

Offshore BPO

Nearshore BPO/OS

Nearshore OS

Local TS/OS

+80%

50% of offshore staff works for Europe

Outlook 2006Open Calcutta site (with BPO)Create a second site in Krakow (Poland) Oviedo gets stronger (Spain )Opening of Capgemini University in IndiaAccelerate on-campus recruitment at Indian universities

11

2006 Priorities

Focus on adding value to clients• Invest in innovation (SOA, 3rd generation ERP

Business Intelligence…) and competencies • Develop sector approach and improve portfolio

management• Grow RightshoreTM capability

Confirm North American turnaround

Implement MAP initiative• Develop BPO and Application Management• Target divisional margin of 4% in 2006

1

2

3

BPO Overview

13

BPO Global ServicesToronto, Dallas, Krakow, Mumbai, Guangzhou & Adelaide

Procure to PayStrategic Sourcing

eBusiness

Purchasing

Supplier Management

Catalogue Management

Master Data Management

Customs & Tariff

Vendor Performance Mngmnt

Global Capability• > 20 different Accounting Systems

• > 500,000 invoices per month

• > 25 languages

• > $250 million receivables/month

• > $7bn in procurement management

Accounting to ReportingGeneral Ledger

Accounts Payable

Accounts Receivable

Cash & Asset Management

Planning and Budgeting

Management Reporting

Financial Analysis

Tax Compliance

Additional CapabilitiesHR & Payroll

Time & Expense Management

Financial Services Knowledge Process Outsourcing

Technical PublicationTechnical Publication

14

Global BPO RightshoreTM Delivery Network

Guangzhou & Hong Kong

Krakow

China 2

Poland 2

3rd European transaction

centre

Asturias

AdelaideMumbai

Malmö

Lyon

Bangalore

Toronto

Dallas

South American

centre

X

XHubSatellitePlannedX

“BPOpenTM” backbone

“BPOpenTM” backbone

3500 Seats

Kalkotta

0

500

1000

1500

2000

2003 2004 2005 2006

Offshore F&A

15

Capgemini & Microsoft are collaborating to buildthe BPOpenTM Service Orientated Architecture

Globally Collaborative Workforce

Stan

dard

Bus

ines

s Pr

oces

ses

Business Process ManagementBusiness Process Management

Integration Backbone (Enterprise Service Bus)Integration Backbone (Enterprise Service Bus)

Common Processing Model(Standards based)

Common Processing Model(Standards based)

XML

XML

XML

XML

XML

XML

System ASystem A System BSystem B System nSystem n

Krakow Guangzhou South Africa India

Business Process ManagementBusiness Process Management

Integration Backbone (Enterprise Service Bus)Integration Backbone (Enterprise Service Bus)

Common Processing Model(Standards based)

Common Processing Model(Standards based)

XML

XML

XML

XML

XML

XML

System ASystem ASystem ASystem A System BSystem BSystem BSystem B System nSystem nSystem nSystem n

Krakow Guangzhou South Africa India

Lega

cy In

tegr

atio

n

Legacy WrappingClient System Integration

…

Inte

grat

ed S

ervi

ce P

latfo

rm

Globally Collaborative Workforce

Stan

dard

Bus

ines

s Pr

oces

ses

Business Process ManagementBusiness Process Management

Integration Backbone (Enterprise Service Bus)Integration Backbone (Enterprise Service Bus)

Common Processing Model(Standards based)

Common Processing Model(Standards based)

XML

XML

XML

XML

XML

XML

System ASystem A System BSystem B System nSystem n

Krakow Guangzhou South Africa India

Business Process ManagementBusiness Process Management

Integration Backbone (Enterprise Service Bus)Integration Backbone (Enterprise Service Bus)

Common Processing Model(Standards based)

Common Processing Model(Standards based)

XML

XML

XML

XML

XML

XML

System ASystem ASystem ASystem A System BSystem BSystem BSystem B System nSystem nSystem nSystem n

Krakow Guangzhou South Africa India

Lega

cy In

tegr

atio

n

Legacy WrappingClient System Integration

…

Inte

grat

ed S

ervi

ce P

latfo

rm

…

Inte

grat

ed S

ervi

ce P

latfo

rm

Microsoft Technology

platform

MicrosoftDevelopment

Expertise

CapgeminiGlobal BPOexperience

CapgeminiProcess &Productivityexpertise

16

Complex Projects with Significant Consolidation Ratio’s

Client Dairy Farm Dow Corning Syngenta Danfoss

Countries servedINCLUDE…

Hong KongChinaAustraliaIndonesiaJapanSingaporeMalaysiaNew ZealandUSThailand

...includingUSUKBelgiumFranceAustraliaJapanKoreaThailandChinaMalaysia

KrakowGuangzhou

20:2

…includingGermanyHungaryItalySwedenSwitzerlandSpainAustraliaChinaIndiaMalaysiaPhillippinesSouth KoreaTaiwanThailandVietnam

…includingNorwayFinlandSwedenDenmarkGermanyFranceUKAustriaCzechHungarian

Capgemini RightshoreTM Solution Centres Guangzhou KrakowGuangzhou

Krakow

OverallConsolidationRatio

10:1 20:2 24:1

17

Full Scope F&A BPO – International Paper

Solution:

10 yr + contractFull Scope F&A : GL, AR, AP, T&E, and Treasury240 FTE’s in Krakow, PolandSupporting 32 separate legal entities in 12 countries Languages: English, German, French, Dutch, Polish, Russian

Benefits:50% cost reduction on processingFTE’s reduced by 10% yr1, 5% yr2.1.5 million invoices are processed per annum; unified SAP platform and electronic workflow implementedEnhanced quality (e.g. error rated reduced compared to pre-outsourcing) and improved control environmentClean external and internal audits

(Contract expanded from $25bnIntl. Paper in 2004 to include:-$6.5bn subsidiary with afurther 64 fte’s Full Scope)

Kraków

Inverurie

Svetogorsk

Kwidzyn

ParisBrussels

Stamford

Memphis

18

Where to draw the service split-line: Hydro One – Full Scope F&A

Accounts Payable

Customer Billing

Accounts Receivable

T & E

Vendor inquiries

Customer Inquiries

Employee Inquiries

INTERNAL CONTROL FRAMEWORK

Fixed Assets Projects Inventory

General Ledger/Trial Balance

Management Reporting &

Analysis

Financial Reporting

ReconciliationsJournal

Processing

Hydro One

T/O: $5bnCustomers: 1.2mill.

Need• costs down• Compliance• Transformation

In a de-regulated environment.

Solution: Full Scope F&A, > 750 FTE’s

• AP, AR, T&E, FA, PC, GL, Pay, Decision Support, Planning, Budgeting, Reporting, Settlements, Billing, Logistics, Sourcing, Procurement + IM, AM & ITO

Hydro One retained:• Ext. reporting, Corp a/c consolidation, Acctg. Policy, Financial Planning, Treasury, Tax

Benefits:• Cost reduction – 30%• Quality increases• AP days outstanding down 30%• Enquiry response time down 75%

Scope increased over c

ontract d

uration

19

BPO - expanding our capabilities

New Tools

Building ScaleIn Our Delivery Network

The Collaborative Business Model

Increased BPO Growth Rate

No.1 in Shared Services

Industry Experience

Quality – ISO & Six Sigma

Compliance - SOX

BPOpenTM - Speed to Value

RightshoreTM

Krakow - the best BPO centre

Transformational - CS, TS, OS

20

BPO Summary

Resources

Partners

Key Sectors

• Manufacturing

• Retail

• Energy & Utilities

• Financial Services

• 3500 Staff & growing

• BPOpenTM

• RightshoreTM

• Dallas, Toronto, Krakow

• Mumbai, Guangzhou, Adelaide

• BPOpenTM powered by …

• CoE in ….

• BPM technologies inclu…

• Multi-domain BPO - F&A, P2P, HR

• Complex multi-language, multi-country

• Consolidation ratio’s > 10

Experience