CONTENTS - Capgemini

NOTE 3 – CHANGES IN GROUP STRUCTURE
A) 2004 and 2005
The main changes in Group structure in 2004 and 2005 were as
follows:
In the United States, the Group formed Capgemini Energy LP as part
of a ten-year service contract, effective July 1, 2004, with the American
power company TXU Energy Company LLC. At December 31,
2004, Capgemini Energy LP, was 97.1%-owned by the Group and
was fully consolidated.
In January 2005, the Group sold its 25.22% stake in IS Energy for
€21 million, further to the exercise by E.ON of the call option it held
on IS Energy’s shares.
On June 16, 2005, the Group sold its US healthcare business to the
Accenture group for €143 million.
On August 12, 2005, the Group entered into an alliance with the
Japanese group NTT Data Corporation and sold its 95% stake in
Capgemini Japan K.K. for €30 million.
B) 2006
The main changes in Group structure in 2006 were as follows:
On September 30, 2006, the Group acquired 100% of the capital of
German group FuE (FuE-Future Engineering GmbH, FuE-Future
Engineering & Consulting GmbH and Computer Konzept EDV
Beratung und Betreuung GmbH). The FuE group is Germany’s
NOTE 4 – REVENUES
Revenues break down as follows by geographic areas:
in millions of euros
leading aerospace consulting and engineering firm, based mainly in
Hamburg, Bremen, Baden-Baden and Toulouse. The Group has a
headcount of approximately 250.
The provisional allocation of the acquisition price led to the recognition
of €3 million in amortizable intangible assets and €29 million
in goodwill. At the acquisition date, the FuE group’s net assets stood
at €8 million, including cash and cash equivalents amounting to €5
million. Its contribution to consolidated revenues and profit for 2006
is €6 million and €1 million, respectively.
On October 11, 2006, the Group purchased 51% of the capital of
Unilever Shared Service Limited (also known as Indigo), a subsidiary
of Hindustan Lever Limited (Unilever group). Indigo is an administrative,
financial and control service center for Unilever in India, and
owns centers in Bangalore and Chennai, employing nearly 600 service
professionals. Indigo is fully consolidated at December 31, 2006.
The purchase agreement includes a call/put option for Capgemini/
Hindustan Lever Limited on the remaining 49% of Indigo, exercisable
from October 1, 2008 for a period of six months. If exercised,
the Group would own 100% of Indigo. At December 31, 2006, the
Group recognized a financial debt for an amount equal to the present
value of the option at that date. The difference between the present
value of the option and the carrying amount of the related minority
interests is recorded in goodwill.
The provisional allocation of the acquisition price led to the recognition
of €2 million in amortizable intangible assets and €20 million in
goodwill. At the acquisition date, Indigo’s net assets stood at €1 million,
including financial debt of €1 million. Indigo’s contribution
to consolidated revenues for 2006 is €3 million. Its contribution to
consolidated profit for the year is not material.
2004 2005 2006
Amount % Amount % Amount %
North America 1,351 22 1,353 20 1,341 17
United Kingdom and Ireland 1,288 20 1,738 25 2,126 28
Nordic countries 391 6 415 6 441 6
Benelux 857 14 956 14 1,046 14
Germany and Central Europe 477 8 443 6 514 7
France 1,479 24 1,666 24 1,816 23
Southern Europe 299 5 310 4 339 4
Asia-Pacific 93 1 73 1 77 1
TOTAL 6,235 100 6,954 100 7,700 100
The year-on-year increase in revenues in 2006 is 10.7% on a current Group structure and exchange rate basis and 12.1% on a like-for-like
basis (based on constant exchange rates and Group structure).
ANNUAL REPORT 2006 Capgemini
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