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84 ANNUAL GROUP CONSOLIDATED FINANCIAL STATEMENTS Capgemini NOTE 11 – GOODWILL AND INTANGIBLE ASSETS Changes in goodwill and intangible assets can be analyzed as follows by type of asset: in millions of euros Goodwill Software REPORT 2006 Capgemini Internally generated intangible assets Other intangible assets Total GROSS VALUE AT JANUARY 1, 2004 1,788 146 37 38 2,009 Translation adjustments (16) (7) - (6) (29) Acquisitions/Increase - 22 2 50 74 Disposals/Decrease (14) (29) - (14) (57) Changes in Group structure 35 2 - 85 122 Other movements (7) 50 - 1 44 AT DECEMBER 31, 2004 1,786 184 39 154 2,163 Translation adjustments 41 10 - 13 64 Acquisitions/Increase 1 19 2 5 27 Disposals/Decrease (5) (20) - (13) (38) Changes in Group structure 4 (16) - (2) (14) Other movements - 8 - (16) (8) AT DECEMBER 31, 2005 1,827 185 41 141 2,194 Translation adjustments (13) (3) - (9) (25) Acquisitions/Increase - 13 9 8 30 Disposals/Decrease - (59) (1) (15) (75) Changes in Group structure 56 - - 6 62 Other movements - (16) 12 1 (3) AT DECEMBER 31, 2006 1,870 120 61 132 2,183 ACCUMULATED AMORTIZATION AT JANUARY 1, 2004 98 21 23 142 Translation adjustments (5) - 1 (4) Additions 33 7 12 52 Disposals (22) - (13) (35) Changes in Group structure - - 8 8 Other movements 15 - 2 17 AT DECEMBER 31, 2004 119 28 33 180 Translation adjustments 7 - 2 9 Additions 44 7 16 67 Disposals (19) - (12) (31) Changes in Group structure (12) - (1) (13) Other movements 2 - - 2 AT DECEMBER 31, 2005 141 35 38 214 Translation adjustments (3) - (2) (5) Additions 13 6 18 37 Disposals (56) (1) (8) (65) Changes in Group structure - - - - Other movements - - - - AT DECEMBER 31, 2006 95 40 46 181 IMPAIRMENT AT JANUARY 1, 2004 - 4 - - 4 Translation adjustments - - - - - Additions 19 - - - 19 Changes in Group structure - - - - - Other movements (7) 4 - - (3) AT DECEMBER 31, 2004 12 8 - - 20 Translation adjustments - - - - - Additions 6 3 - - 9 Changes in Group structure - - - - - Other movements - - - - - AT DECEMBER 31, 2005 18 11 - - 29 Translation adjustments - - - - - Additions 3 - (2) 1 2 Changes in Group structure - - - - - Other movements - (7) 7 - - AT DECEMBER 31, 2006 21 4 5 1 31 NET AT DECEMBER 1, 2004 1,774 57 11 121 1,963 AT DECEMBER 1, 2005 1,809 33 6 103 1,951 AT DECEMBER 31, 2006 1,849 21 16 85 1,971
Net value of goodwill At December 31, 2006, goodwill breaks down by geographic area as follows: France (€477 million), United Kingdom (€477 million), Benelux (€438 million), North America (€199 million), and Germany and Central Europe (€132 million). Changes in the net value of goodwill in 2006 primarily reflect: goodwill relating to the acquisition of German group FuE on September 30, 2006, amounting to €29 million; goodwill relating to the acquisition of Unilever Shared Service Limited (also known as Indigo) on October 11, 2006, amounting to €20 million (including the call option on minority interests); an impairment loss on United Kingdom goodwill amounting to €3 million; The main assumptions used to measure the recoverable amount of goodwill are as follows: Cash generating units North America translation losses arising on goodwill denominated in foreign currencies, amounting to €13 million. Goodwill impairment tests The carrying amounts of goodwill at December 31, 2006 were tested for impairment in accordance with the Group’s related specific procedure. Based primarily on the discounted cash flows method, this procedure consists of assessing the recoverable amount of each cash generating unit (CGU) within the Group. CGUs correspond either to subsidiaries or to geographic areas in which the Group has operations. United Kingdom Benelux Sogeti Other Total Net carrying amount of goodwill (in millions of euros) 199 477 307 505 361 1,849 Method used to measure the value of the CGU Value in use Number of years over which cash flows are estimated and extrapolated indefinitely 5 years Long-term growth rate 3% After-tax discount rate at December 31, 2006 (1) 10.9 % 10.1% After-tax discount rate at December 31, 2005 (1) 10.5 % 10.1% After-tax discount rate at December 31, 2004 (1) 10.1 % (1) The application of pre-tax discount rates to pre-tax cash flows leads to the same valuation of CGUs. Reconciliation of the acquisition cost of intangible assets in the balance sheet with the amount reported in the cash flow statement The acquisition cost of intangible assets reported in the balance sheet (€30 million) is different from the figure provided in the cash flow statement (€29 million), which excludes transactions with no cash impact (i.e., acquisitions of assets held under finance leases amounting to €1 million in 2006). ANNUAL REPORT 2006 Capgemini 85
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CONTENTS 02 Financial highlights 03
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THE CAPGEMINI GROUP I - COMPANY HIS
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Prospects for 2007. Demand should r
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is beginning to produce a European
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Professional IT Services Market Sha
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Simplified organization chart for t
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ut also on local issues, in partner
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the investment slowdown led to down
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BREAKDOWN OF WORKFORCE BY AGE: EVOL
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in 2005. Overall satisfaction with
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same content management platform an
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committed to delivering a truly col
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urgent health crises, which an empl
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7.5 The group and the environment E
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principles into its offers and to r
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this trend is set to increase in th
Page 33 and 34: Economic conditions The Group’s g
Page 35 and 36: STOCK MARKET CAPITALIZATION From Ja
Page 37 and 38: MANAGEMENT REPORT PRESENTED BY THE
Page 39 and 40: 1.5 Profitability Operating margin
Page 41 and 42: €193 million in actuarial gains r
Page 43 and 44: paragraph 3 of article 158 of the F
Page 45 and 46: As is the case for all the Group’
Page 47 and 48: VI - FINANCING POLICY AND MARKET RI
Page 49 and 50: of the countries in which beneficia
Page 51 and 52: under French corporate governance g
Page 53 and 54: is based on the percentage of attai
Page 55 and 56: internal control procedures cannot
Page 57 and 58: specific issues relating to the fol
Page 59 and 60: Management and, above all, the Chai
Page 61 and 62: GROUP CONSOLIDATED FINANCIAL STATEM
Page 63 and 64: CONSOLIDATED STATEMENTS OF INCOME F
Page 65 and 66: CONSOLIDATED STATEMENTS OF CASH FLO
Page 67 and 68: (1) Restated in accordance with IFR
Page 69 and 70: Exchange differences arising on mon
Page 71 and 72: term growth rates for the period be
Page 73 and 74: Other financial liabilities With th
Page 75 and 76: NOTE 3 - CHANGES IN GROUP STRUCTURE
Page 77 and 78: In 2004 and 2005, restructuring cos
Page 79 and 80: The difference between the French s
Page 81 and 82: Fair value of options granted and i
Page 83: Dilutive impact of the June 24, 200
Page 87 and 88: Reconciliation of the acquisition c
Page 89 and 90: Deferred tax liabilities at Decembe
Page 91 and 92: Total accounts receivable net of ad
Page 93 and 94: Upon early redemption, the bonds ma
Page 95 and 96: The facility agreement includes cov
Page 97 and 98: Cap Gemini S.A. pays a variable rat
Page 99 and 100: B) Analysis of movements in provisi
Page 101 and 102: F) Contributions to plans in 2007 T
Page 103 and 104: NOTE 20 - CURRENT AND NON-CURRENT P
Page 105 and 106: At December 31, 2006, commitments r
Page 107 and 108: Results for 2004 break down as foll
Page 109 and 110: At December 31, 2005, assets and li
Page 111 and 112: NOTE 27 - NUMBER OF EMPLOYEES A) Av
Page 113 and 114: NOTE 29 - LIST OF CONSOLIDATED COMP
Page 115 and 116: Country Consolidated company % inte
Page 117 and 118: FIVE-YEAR FINANCIAL SUMMARY in mill
Page 119 and 120: STATUTORY AUDITORS’ SPECIAL REPOR
Page 121 and 122: STATUTORY AUDITORS’ SPECIAL REPOR
Page 123 and 124: TEXT OF THE DRAFT RESOLUTIONS PRESE
Page 125 and 126: Ninth resolution Authorization to b
Page 127 and 128: Meeting may decide to appropriate a
Page 129 and 130: Proposed renewals of financial auth
Page 131 and 132: Changes in the Company’s capital
Page 133 and 134: CORPORATE GOVERNANCE To avoid repet
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MEMBERS OF THE BOARD Yann DELABRIÈ
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MEMBERS OF THE BOARD Phil LASKAWY D
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DIRECTORS’ INTERESTS This informa
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Fees paid by the Group to the Statu
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CROSS-REFERENCE TABLE To facilitate
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CONTENTS - Capgemini

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