Capgemini : Capgemini reports solid performance in 2012

           Capgemini : Capgemini reports solid performance in 2012

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            Christel Lerouge
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                 Capgemini reports solid performance in 2012

  * Revenues of €10.3 billion, up 5.9% 

  * Operating margin rate of 7.7%, up 0.3 points 

  * Profit for the year attributable to shareholders of €370 million 

  * Net cash and cash equivalents of €872 million 

Paris, February 20, 2013 - The Board of Directors of Cap Gemini chaired by Mr.
Paul Hermelin, convened today in Paris  to review and authorize for issue  the 
accounts^[1] of Capgemini Group for the year ended December 31, 2012. The  key 
figures are as follows:

(in millions of euros)                             FY   H1 2012 H2 2012   FY
                                                   2011                  2012
Revenues                                          9,693   5,150   5,114 10,264
Operating margin^[2] (before amortization of        738     347     477    824
intangible assets acquired through business
combinations)
as a % of revenues                                 7.6%    6.7%    9.3%   8.0%
Operating margin                                    713     328     459    787
as a % of revenues                                 7.4%    6.4%    9.0%   7.7%
Operating profit^[3]                                595     237     364    601
Profit for the year attributable to shareholders    404     143     227    370
as a % of revenues                                 4.2%    2.8%    4.4%   3.6%
Net cash and cash equivalents                       454      27     872    872
Organic Free Cash flow^[4]                          164   (309)     805    496

Despite a  slow market,  2012 saw  the Group  cross the  €10 billion  revenues 
milestone (€10,264 million). Revenues increased 5.9% on 2011 published figures
(i.e. at current Group structure and exchange rates). On a like-for-like basis
(i.e. at constant Group structure and exchange rates) revenues grew 1.2%.  The 
difference between these two rates is primarily due to the appreciation of the
US dollar and the UK pound against  the euro and the integration of  Prosodie, 
acquired in July 2011.

Bookings during the year totaled €10,084 million, at the same level as in 2011
(€10,122 million). The book-to-bill  ratio is 1.07 for  the year and 1.16  for 
the fourth  quarter  for  Technology  Services,  Local  Professional  Services 
(Sogeti) and Consulting  Services together, confirming  the dynamism of  these 
activities.

The operating margin is €787 million,  or 7.7% of 2012 consolidated  revenues, 
representing an increase of 0.3 points on 2011, in line with Group objectives.
The Group continues to improve its  profitability, even attaining 9.0% in  the 
second half of 2012. Before amortization of intangible assets acquired through
business combinations, the  operating margin is  8.0% in 2012.  In spite of  a 
significant increase in  restructuring costs  (€168 million  in 2012  compared 
with €81 million in 2011), operating profit is €601 million.

Profit for the  year attributable  to shareholders  is €370  million after  an 
income tax expense which increased by 40.0% (€140 million versus €101  million 
in 2011).

Net cash and cash equivalents total €872 million at December 31, 2012, up €418
million  year-on-year.  Boosted  by  the  excellent  second-half  performance, 
organic free cash  flow is €496  million, compared with  €164 million in  2011 
(including anticipated payments  from some major  anglo-saxon clients of  €100 
million).

The Board  of  Directors decided  this  date to  recommend  the payment  of  a 
dividend of  €1 per  share^[5]  at the  next Ordinary  Shareholders'  Meeting, 
unchanged on last year.  This represents a distribution  of 44% of profit  for 
the year attributable to shareholders,  above the standard amount  (one-third) 
distributed by the Group for many years.

The Board of  Directors also  decided to cancel  1,937,647 of  its own  shares 
purchased between  December, 2012  and February  2013 for  a total  amount  66 
million euros, representing 1.2% of the outstanding share capital.

Outlook for 2013

After accounting for the decreased revenue of our Aspire contract (with  HMRC) 
and the  Group focus  on  removing dilutive  business,  the Group  targets  an 
organic revenue growth for 2013 in line with 2012.
The  Group  expects  an  operating  margin  rate  in  excess  of  8.3%  before 
amortization of intangible assets acquired through business combinations (i.e.
over 8.0%, as reported until now).
Cumulated organic free cash flow for the period 2012-2013 is anticipated to be
between €750 and
800 millions.

For Paul  Hermelin, Chairman  and  Chief Executive  Officer of  the  Capgemini 
Group: "Despite the economic slowdown observed  in 2012 in the euro zone,  the 
Group reports a solid performance - in line with its commitments - and  proves 
once again its  ability to hold  firm against economic  fluctuations. We  have 
strengthened our  global focus  -  as demonstrated  by  our success  in  North 
America, the world's leading IT services market -, grew our offshore resources
and enriched our services portfolio. In 2013  more than ever, we will seek  to 
establish Capgemini as  a global  leader alongside the  major market  players, 
able to satisfy client requirements on competitivity and innovation."

                                    o 0 o
            Notes to the press release published February 20, 2013

Operations by major region:

  * France - which retains  its number-one spot among  the Group's regions  in 
    terms of  revenues,  saw  this  latter increase  2.0%  on  2011  published 
    figures,  taking  into   account  the  acquisition   of  Prosodie.  On   a 
    like-for-like basis  revenues  fell  2.1%, with  Technology  Services  and 
    Outsourcing Services remaining stable. The operating margin for the region
    is 7.8%, in line with the Group average; 

  * The North  America region  reported remarkable  revenue growth  of  16.4%. 
    Organic growth of 7.0% was driven by the vitality of Technology  Services, 
    Sogeti and Consulting  Services. With  an operating margin  rate of  8.8%, 
    North America remains,  as in  2011, one  of the  Group's most  profitable 
    regions; 

  * The United  Kingdom &  Ireland  region reported  revenue growth  of  8.1%. 
    Like-for-like growth  is  limited  at 0.9%,  the  dynamism  of  Technology 
    Services more than offsetting the slowdown in Outsourcing Services due  to 
    the  expected  reduction  in  public  sector  expenditure.  At  7.7%,  the 
    operating margin rate is up 0.6 points on 2011; 

  * Benelux recorded an 11.7%  decline in revenues in  2012 with a  sequential 
    stabilization in the  fourth quarter.  The operating margin  rate is  7.2% 
    (down slightly by 0.2  points on 2011). Measures  taken in September  have 
    already enabled a return to an operating margin rate of 10% in the  second 
    half of 2012 (a level identical to the second half of 2009); 

  * In the  rest  of the  world,  revenue  increased 8.8%  on  average  (+6.3% 
    like-for-like), with  the Nordic  countries  and the  Asia-Pacific  region 
    reporting the  strongest growth.  The average  operating margin  of  these 
    regions is 9.3%, up 1.4 points on 2011. 

Operations by business:

  * Technology Services - the  Group's leading business  in terms of  revenues 
    (over 40%)  -  reported growth  of  3.5% (like-for-like),  with  a  steady 
    improvement in  the resource  utilization rate  and a  slight increase  in 
    prices enabling an increase in its operating margin rate of over one point
    to 7.9%; 

  * Outsourcing Services - which contributes 40% of Group revenues -  reported 
    revenue growth of  0.5% (like-for-like)  and an operating  margin rate  of 
    7.6%, in line with 2011;  

  * Sogeti (15%  of  Group  revenues)  reported a  1.3%  decline  in  revenues 
    (like-for-like) and a slight fall in  the operating margin rate (10.4%  in 
    2012 compared with 10.9% in 2011); 

  * Consulting Services  (5% of  Group revenues)  reported a  3.6% decline  in 
    revenues like-for-like. Despite a slight fall in the operating margin rate
    in 2012, Consulting Services remains the Group's most profitable  business 
    (11.2%). 

Headcount:

On December 31, 2012, the total  headcount of the Group was 125,110  employees 
compared with 119,707 employees at the end  of the prior year. We reached  the 
50,000 employee  milestone in  Offshore  centers (50,425  offshore  employees, 
including 41,019  in India),  representing 40%  of the  total Group  headcount 
compared with 37% at the end of 2011.
The Group recruited over 31,000 new employees in 2012.

Mr Paul Hermelin's compensation, Chairman and Chief Executive Officer:

The Board of Directors, after hearing  the recommendations put forward by  the 
Selection and Compensation Committee,  made the following decisions  regarding 
the of the Chairman and Chief Executive Officer's compensation:

The Committee reminded the Board that Mr. Hermelin's compensation is  composed 
- as for all of  the Group's managers -  of a fixed part  equal to 60% of  the 
total target compensation  and of  a variable part  (40% of  the total  target 
compensation) composed:

           * for half of  it (V1) of  the ratio existing  between the  Group's 
             consolidated and audited financial  results and the same  results 
             as they were anticipated in the budget i.e 107,16 %, 

           * and for the other half (V2) of the percentage of achievement of a
             number of  personal  objectives  of a  strategic  or  operational 
             nature which had been given to him at the beginning of the  year. 
             The Board validated the assessment  made by the Committee of  the 
             degree of achievement of each  of these objectives, the total  of 
             the notes so attributed being 104 /100. 

Mr. Hermelin's actual compensation for the  fiscal year 2012 thus breaks  down 
as follows:

           * a fixed salary of euro 1,320,000 paid in monthly installments 

           * a first part  equal to  euro 471,500 (107,16  % of   a 440,000  € 
             target ) 

           * a second part equal to euro 457,600 (104 % of a 440,000 € target
             ) 

that is a total of euro 2,249,100,  up 2.98% from the actual compensation  for 
2011.

The Committee  proposed  to  the  Board, which  accepted  it,  to  reflect  Mr 
Hermelin's new responsibilities  as Chairman of  the Board since  May 24th  in 
addition to his position as Chief Executive Officer and hence to increase  his 
target compensation to euro 2 420 000 (a fixed salary of euro 1,452,000 plus a
variable part of  euro 968,000) after  five years of  stagnation, Mr  Hermelin 
having requested that his target  compensation remained unchanged during  such 
period with regard to the challenging economic environment.

The board acknowledged that Mr Hermelin  renounced all board fees to which  he 
was duly entitled for 2012.

Performance shares grants :

The Board of Directors, after hearing  the recommendations put forward by  the 
Selection and Compensation Committee,  decided to grant 1 209 100  performance 
shares representing 0,75 %  of the outstanding share  capital to 368  grantees 
out of which 50 000 amounting to 4,1 % of the total grant were allocated to Mr
Paul Hermelin. It is reminded that the May 2012 AGM authorized the issuance of
up to 1,5 %  of the share  capital as performance  shares subordinated to  two 
performance conditions,  one internal  condition relating  to free  cash  flow 
generation over three years and one external condition reflecting share  price 
outperformance over a basket of competitors.
Mr Hermelin must  keep any  actually granted shares  until the  expiry of  his 
corporate officer role.

For further information go to: capgemini.com

[1]^ Audit procedures  on  the  consolidated financial  statements  have  been 
completed. The auditors are in the process of issuing their report.

[2] Operating margin is one of the  Group's key performance indicators. It  is 
defined as the difference  between revenues and  operating costs, these  being 
equal to  the cost  of  services rendered  (expenses incurred  during  project 
delivery) plus selling and general and administrative expenses.

[3] Operating profit of  the Group  incorporates the  charges associated  with 
shares or options allocated to a large  number of employees, as well as  other 
non-recurring income and expenses such  as goodwill impairment, capital  gains 
or losses  on  disposals,  restructuring  costs, the  cost  of  acquiring  and 
integrating acquired  companies, as  well as  the impacts  of the  curtailment 
and/or settlement of defined benefit pension plans.

[4] Organic Free  Cash  flow  is  equal to  cash  flow  from  operations  less 
acquisitions of  property,  plant, equipment  and  intangible assets  (net  of 
disposals) and adjusted for flows relating to the net interest cost.
[5] Subject to  the approval  of shareholders  at the  Combined  Shareholders' 
Meeting to be  held on  Thursday May  23, 2013,  and in  compliance with  NYSE 
Euronext regulations, the  ex-dividend date  will be  Monday, June  3 and  the 
dividend payment date Thursday, June 6.

PR Capgemini Eng FY2012

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