Financial Results

Paris, September 9, 2004

Paris, September 8, 2004, the Board of Directors of Cap Gemini S.A., under the Chairmanship of Serge Kampf, reviewed the 2004 first half final consolidated and audited financial statements of the Capgemini Group.

Key figures are as follows:

1. Revenues and bookings

Consolidated revenues for the first half 2004 reached a total of 2,970 million euros:

• when compared to the 2003 first half, this figure is down 7.1% at constant exchange rates and perimeter and down 1.8% at current rates and perimeter,

• however, when compared to the second half 2003, revenues have increased 0.8% at constant exchange rates and perimeter and 8.8% at current exchange rates and perimeter.

Therefore, the Group’s revenues are now well underway to resuming a growth track, and this is mainly due to the recent success in the outsourcing business, particularly in Transformational outsourcing, and the effect of integrating Sogeti and Transiciel. Conversely, Project & Consulting business is still posting a slight decline in revenue but should be growing in the second half.

Looking at the business by main regions, it should be noted that compared to the first months of the year, the second quarter has shown a net rebound in the business in Continental Europe and - with a slight delay- in the United Kingdom, whereas the North American business is showing a 22% drop in revenues at constant exchange rates. This is due to the weak level of bookings recorded in 2003 and in particular during the second half of 2003.

It should be noted that the orderbook has more than doubled from where it was a year ago: 12.6 Billion euros as at June 30, 2004 versus 6.1 Billion euros in the same period last year (at current exchange rates). As a result, the Group has a significantly improved visibility on its business for the forthcoming quarters: with respect to second half 2004, the current orderbook is expected to contribute to revenues in excess of 400 million euros.

2. The evolution by business line is contrasted

• Finally, Sogeti-Transiciel (Local Professional Services), which now represents 17% of consolidated revenues for the Group, still today records the highest operating profitability and is looking forward to ambitious levels of growth.

3. Operating margin and net earnings

• Operating income is slightly negative (-20 million euros) representing –0.7% of revenue against 2.7% of revenues as at June 30, 2003. This deterioration is mainly due to the following:

  • the heavy commercial investment required to submit proposals (an often long and complex process) for the major mandates that the Group won or lost in the first half of the year;

  • the identification and booking of significant overruns on a number of contracts signed in 2001 and 2002 with terms that have proved difficult to meet. This item alone represents 80 million euros;

  • a one-off charge of 30 million euros related to the name change (dropping the reference to Ernst & Young) and the corresponding worldwide branding campaign;

  • the sharp fall in operating performance of the North American operations and, to a lesser extent, in the United Kingdom.

• Group net income shows a loss of 135 million euros (versus 90 million euros as at June 30, 2003), and this takes into account:

  • “other income and expenses” for a net amount of –62 million euros (of which 52 are restructuring costs) versus 105 million euros as at June 30, 2003;

  • other P/L items (financial net charge, tax, minority interest, goodwill amortization) for an aggregate of -53 million euros (versus –66 for the first half of 2003).