CONTENTS
Summary 3
I— Valuation 6
􀁑 Market performance 6
􀁑 Sector at historical lows in terms of P/E and EV/Sales 6
􀁑 Operating and market comparisons 7
􀁑 DCF approach 9
II— Choosing our European sector Top Pick 11
􀁑 Ranking European companies on non-valuation criteria 11
􀁑 Our European sector Top Pick 12
III— Current sector characteristics 15
􀁑 Most recent indications from companies – still on the optimistic side 15
􀁑 What makes the current cycle different from previous ones 16
􀁑 Volume and pricing sensitivity 21
IV— How we built our 2009 estimates 24
􀁑 Leading indicators 24
􀁑 Detailed estimates 25
V— Companies under review 27
􀁑 Alten 28
􀁑Altran 30
􀁑Assystem 32
􀁑 Atos Origin 34
􀁑 Capgemini 36
􀁑Devoteam 38
􀁑EDB 40
􀁑 Indra 42
􀁑 Logica 44
􀁑 Sopra 46
􀁑 Steria 48
􀁑Tieto 50