First Half Results 2004Paul HermelinSeptember 9, 2004

1

| H1 2004 results

Main Results for the Period

20 ME operating loss

However:

H1 revenue stabilized

Best ever backlog visibility

Major actions underway

Positive H2 outlook

2

| H1 2004 results

Costs

Operating margin

Operating income

Net income

Net Cash

Revenue

Bookings

Key Figures

H1 2004 H1 20035,908 3,7572,970 3,023

(2,990) (2,942)(20) 81

-0.7% 2.7%(135) (90)(4) 419

In € mn

3

| H1 2004 results

H1 Priorities: Energize the top line

Confirm breakthrough in Transformation Outsourcing

Leverage Transiciel acquisition to launch LPS as aon-shore alternative

Stabilize Technology and Consulting Services

Leverage the need to renew the brand for a strong marketing initiative

While …

Leveraging discipline based model to maximize utilization

Continuing support function cost reduction

The Group is back on the growth track1

0

| H1 2004 results

Record Bookings and increased visibility

1.7

4.4

2.7

10.0

June 2003 June 2004

6.1

12.7

€ 12.7 billion end of June 2004

Book to Bill TS = 1.15Book to Bill CS = 1.17

+ 106% BacklogYear on Year

+ 60% Bookings Year on Year

€ mn€ 5.9 billion in H1 2004

1 743

1 788

1 461

452

1 194

408

1 220

559

936

1 135

1 287

554

848

402 2 380

4 124

1 160

488

1 245

3 015

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04

P&C OS

6

| H1 2004 results

Examples of Success

Project & Consulting OutsourcingTXU (USA - Energy)

Draegerwerk (Germany - Life Sciences)

ABB (Sweden - MRD)

Georg Fisher (Switzerland - MRD)

Endesa (Spain - Energy)

Phoenix Childrens’ Hospital (USA-Healthcare)

Euroclear (Belgium - Finance)

Skydraft (Sweden - Energy)Madrid Airport (Spain - Public)Department of Homeland Security(USA - Public)BWX Technologies (USA - Public)Ministry of Health (Netherlands -Public)New South Wales Councils Syndicate (Australia - Public)RWE Power (Germany - Energy)Vodafone NL (Netherlands -Telecom)Debitel (Germany - Telecom)Excel Logistics (USA - MRD)

7

| H1 2004 results

Local Professional ServicesOutsourcing Services

Technology ServicesConsulting Services

All disciplines pointing to Growth

- 3.2%

0

200

400

600 + 5.4% + 5%

H1 2003 H2 2003 H1 2004 H2 2004 (e)

positivepositive

- 17.2%

0

200

400

600

800

H1 2003 H2 2003 H1 2004 H2 2004 (e)

- 5.5%

200

400

600

800

1000

1200

1000

- 12.0%

0H1 2003 H2 2003 H1 2004 H2 2004 (e)

0

- 3.1%

+ 5.6%> +25%

0

300

600

900

1200

+ 0.1%

H2 2004 (e)H1 2003 H2 2003 H1 2004

8

| H1 2004 results

Organic Growth H1 2004 / H1 2003 Q2 2004 / Q2 2003North America - 22.2% - 21.7%

Europe/Asia-Pac. - 1.7% + 0.6%

Total Group - 7.1% - 5.3%

Revenue growth underway in Europe

Organic growth Q4 03/Q4 02 Q2 04/Q2 03Central Europe + 11% + 11.5%Nordic - 6.4% + 4.2%UK/Ireland - 13.2% + 1.3%France - 12.7% + 2.2%Benelux - 16.7% - 3.8%

9

| H1 2004 results

Capgemini now a world leader in Transformation Outsourcing

Client Start in Total amount(€ mn)

Ontario Power Generation(OPG) 2001 695

Hydro One (HO) 2002 837Inland Revenue (IR) 2003 4,734 TXU 2004 3,334

Schneider 2004 NC

10

| H1 2004 results

Strict Deal selection criteria to generate cash

Sound cash flow profileLess than 18 months margin ramp-upHigh Consulting and Technology projects content to cover transition costs and generate up-front margin

Cumulated Cash Flow

0

200

400

600

800

1200

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

€ mn

1000

1

| H1 2004 results

Mega deals margin profiles

OPG + Hydro One + Inland Revenue + TXU

0

50

100

150

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Div. profit (M€) Div. Margin(%)

Inland Revenue & TXUentering into production

12

| H1 2004 results

Return to growth

Q1 Q2

-9.0%

-12.8% -11.5% -10.5%-8.9%

-5.3%

-17.1%-15.4% -16.1%

-14.0%

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Q3 Q4

+9 %(e)

+14%(e)

2002 2003 2004

Year on YearOrganic growth

Margin Analysis2

14

| H1 2004 results

1. Exceptionally high cost items:TS overruns and write-offsBranding campaignExcessive attrition (notably in US)

2. Increased investmentBusiness Development (notably on mega deals)Productivity

H1 Operating Income

15

| H1 2004 results

Operating margin reflects different performance by Disciplines

H1 2004

Revenue(M€)

Divisional Margin (M €)

In % ofRevenue

Consulting 527 15 2.9%

Technology 1 093 (31) -2.8%

Outsourcing 844 21 2.5%

Professional Services 506 42 8.2%

Total Disciplines 2 970 47 1.6%

Shared costs (67)

Total Group 2 970 (20) -0.7%

16

| H1 2004 results

Technology Services

Sogeti/TransicielConsulting Services

Utilization rate

79,4 81,7 81,1 79,582,6 84,1

505560657075808590

Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04

69,6 71,6 72,4 73,1 73,1 73,3

505560657075808590

Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04

59,963,2 61,7 63,7 64 64,5

505560657075808590

Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04

17

| H1 2004 results

H1 2003 H2 2003 H1 2004

Revenue Op. Inc % Revenue Op. Inc % Revenue Op. Inc %

North America 933 28 3.0% 783 13 1,7% 660 -32 -4.8%

U.K. & Ireland 522 15 2.9% 494 21 4,3% 536 -9 -1.7%

Nordic 199 -6 -3.0% 178 2 1,1% 191 -7 -3.7%

Benelux 393 33 8.4% 369 39 10,6% 414 21 5.1%

Central Europe 212 6 2.8% 225 14 6,2% 225 7 3.1%

France 566 19 3.4% 500 5 1,0% 745 12 1.6%

South. Europe 153 -14 -9.2% 132 -23 -17,4% 157 -11 -7.0%

Asia Pacific 45 51 3 5,8% 42 -1 -2.4%

TOTAL 3,023 81 2.7% 2,732 74 2,7% 2,970 -20 -0.7%

Revenue and Margin by Geography

18

| H1 2004 results

North America -Difficult H1 with improved outlook for H2

Outsourcing• Respectable level of profitability

• Revenue growth 20% year on year

• 50% of North America revenue in H2 2004

Consulting• 1.16 book to bill ratio

• Slightly negative margin in H1

• Return to profit H2 2004

Technology• 37 ME losses in H1 largely due to high overruns

• New management in place and drastic actions

On-going actions

20

| H1 2004 results

Headline action list

1. Staff mobilization & motivation

2. Sales Effectiveness Collaborative selling

Win Centers to increase Win Rate

3. Build on the successful integration Sogeti/Transiciel

4. Consulting: sectorial focus to deliver growth

5. Outsourcing: take advantage of volume to reduce relative cost base

6. Pursue our Support Function Cost initiative

21

| H1 2004 results

Three focus areas to improve H2 operating margin

1.Deal with «problem children»

2.Technology Services

3.North America

22

| H1 2004 results

Improve the performance of Technology Services

1. Adjusting to pricing conditions

2. Streamlining structures and indirect

3. Objectives: Be price competitive and increase utilization (from 73.3% to 78%)

4. Delivery• Dedicated delivery risk monitoring teams at business unit, country

and group level

• «Flying squads» generating significant returns

23

| H1 2004 results

North America: Leadership action plan in execution

Sales:• Profile new prospects by sector and geographies• Change order campaigns on existing accounts

Delivery:• Flying Squad ‘efficiency’ teams assigned to complex projects• Systematic leveraging of off-shore

Control:• Strict bidding review process to limit risk and financial exposure• Systematic management review of large contracts• Individual review of non-billing staff and re-assignment to projects

People:• Fight attrition • Hire critical skills in Sales and Delivery functions

Financials

25

| H1 2004 results

Income Statement

In M€ H1 2004 H1 2003Operating Revenue 2,970 3,023Operating expenses (2,990) (2,942)Operating Income (20) 81In % of Operating Revenue - 0.7% +2.7%Interest income/(expense),net (12) (5)Other revenue and expenses, net (62) (105)Income Before Tax (94) (29)In % of Operating revenue -3.2% -1.0%Income Tax (17) (39)Income before GW Amortization (111) (68)Equity in net results of affiliates (1) (1)Minority interests (1)Net Income Before GW Amortization (112) (70)Amortization of Goodwill and Market shares (23) (20)Net Income (135) (90)In % of Operating revenue -4.5% -3.0%

26

| H1 2004 results

In M€ H1 2003 H2 2003 H1 2004 H1 2004Excl. Transiciel

Salarial and social charges (1,922) (1,750) (1,974)66.4%(655)22.1%(162)5.5%

(114)

3.8%(85)2.9%

(1,016)34.2%

(2,990)-100.7%

(1,780)% of Operating Revenue 63.6% 64.1% 65.6%

Purchases and other charges (620) (561)% of Operating Revenue 20.5% 20.5%

Travel Expenses (190) (160)% of Operating Revenue 6.3% 5.9%

Office rents and relatedcharges (126) (102)

% of Operating Revenue 4.2% 3.7%Depreciation and amortization (84) (84)

% of Operating Revenue 2.8% 3.1%Total Other charges (1,020) (907) (964)

% of Operating Revenue 33.7% 33.2% 35.5%Total costs (2,942) (2,657) (2,744)

% of Operating Revenue -97.3% -97.3% -101.1%

Cost base analysis

27

| H1 2004 results

55,171

Headcount as of Jan 1, 2004Recruits (1)

Acquisitions/Big DealsDisposalsLayoffsLeavers (2)

TOTAL GROUP HEADCOUNT

Headcount as of June 30, 2004

55,5764,292

489-57

-1,294-3,835

(1) Including 1,214 for Sogeti/Transiciel and 521 in India(2) Attrition rate for H1 2004: 13.9% vs 10% in H1 2003

Headcount evolution

28

| H1 2004 results

Cash Flow Statementin M€ H1 2004 H1 2003

Net income/(loss) (134) (90)Depreciation & Amortisation 109 103Provisions 7 10Change in deferred taxes (2) 18Change in working capital (161) (103) *Sale of carry back 33 74Investment activities (119) (83)Other (3) 25Net change in cash (270) (46)Net (debt)/cashbeginning of period 266 465Net (debt)/cashend of period (4) 419

* restated from the 74 M€ monetization proceeds from a carry back receivable

29

| H1 2004 results

Balance Sheet

ASSETS Dec 31,2003

June 30, 2004 LIABILITIES Dec 31,

2003June 30,

2004

Intangible Assets 1,849 1,955 Shareholders' equity 3,351 3,268

Tangible Assets 471 454Investments 88 92Long term deferred tax assets 671 657 Accounts & notes

payable 1,384 1,421Total non current assets 3,079 3,158 Other payables 83 87Accounts & notes receivables 1,411 1,532 Financial debt 924 829Other current assets 320 336Cash & Cash Equivalent (*) 1,190 825

Total Assets 6,000 5,851 Total Liabilities 6,000 5,851

Provision &other long term liabilities

258 246

(*) net of bank overdrafts

Guidance

31

| H1 2004 results

Well prepared to reap the rewards of our efforts in H2

Summary

Three of the four disciplines now on the right track

Best ever levels of visibility on sales and backlog showing client confidence

Fuller grasp of the North American situation

Teams winning against their competitors generating positive morale

32

| H1 2004 results

Guidance

Revenue • Double digit sequential growth in H2• Sequential growth in all disciplines

Margin• H2 operating margin between 2 and 3%

Cash• Restore positive net cash position in H2

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