2013 Q1 Revenues

| Press release
Capgemini: 1st quarter results confirm 2013 annual objectives

Paris, May 2, 2013 – Capgemini Group reports Q1 2013 consolidated revenues of €2,499 million, down 2.6% on published revenues (i.e. at current Group structure and exchange rates) from the same period last year and 1.7% on a like-for-like basis (i.e. at constant Group structure and exchange rates). This is primarily due to the weak economic environment in Europe and a negative calendar impact in Q1 2013. These results are in line with our expectations and enable us to confirm 2013 objectives.


Q1 2013 Revenues Q1 2012 Revenues Change Q1 2013/
Q1 2012
 
€2,499 million
 
€2,565 million
 
 
Published
 
 
-2.6%
 
Like-for-like
 
 
-1.7%

The decrease in revenues on a like-for-like basis breaks down as follows:

  • by business, Consulting Services, Technology Services and Local Professional Services reported an average drop in revenues of 3%. Technology Services declined 1.2%, while Consulting Services and Local Professional Services (Sogeti) contracted 10.1% and 5.2%, respectively. Outsourcing Services revenues grew 0.2%.
  • by region, the emerging countries of Asia and Latin America reported the strongest growth (+6.3%) while the private sector lifted the United Kingdom and Ireland by 2%. Revenue was stable in North America following the slowdown in sales at the end of 2012. France – which remains the Group’s largest business in terms of revenues – was affected by the economic climate and reported a drop in revenues of 4.8%. The Benelux continued to suffer from the crisis impacting the Netherlands: Revenue fell 8.7% but has entered a stabilisation phase. The rest of Europe, particularly susceptible to cyclical impacts, is down 2.6%.

We recorded Bookings of €2,171 million in Q1, similar to Q1 2012. The combined book-to-bill ratio of Consulting Services, Technology Services and Local Professional Services remains positive at 1.07.

Capgemini continued to pursue a balanced approach to recruitment between its historical countries and “offshore” locations. On March 31, 2013, the total headcount of the Group was 126,429 employees. Offshore employees totaled 51,978 (including 41,900 employees in India), representing 41.1% of the total headcount.

The Group maintains its objectives for 2013 and continues to forecast like-for-like revenue growth in line with 2012 (+1.2%).

The Group forecasts an operating margin in excess of 8.3%, before amortisation of intangible assets acquired through business combinations (i.e. over 8.0% as reported until now).

Cumulated organic free cash flow for the period 2012-2013 should be between €750 million and €800 million.
 
For Paul Hermelin, Chairman and Chief Executive Officer of Capgemini: “We maintain our annual objectives for revenue growth and operating margin improvement, in spite of the difficult economic climate, particularly in Europe, which is as expected. We continue to pursue the implementation of our three priorities: expanding our offering portfolio to address evolving client needs, recruiting young graduates to maintain a balanced age pyramid and industrialising our processes to increase our competitiveness. Thanks to the diversification of our offering portfolio, we are confident in our ability to address recent evolutions in client needs and manage the complexity of their requests.”

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Appendix

Utilisation rates (%)


  Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
Consulting Services 65 67 64 67 62
Local Professional Services 82 83 83 82 80
Technology Services 80 80 81 81 79


Change in revenues by business (like-for-like)
 

  % of revenues
Q1 2012
% of revenues
Q1 2013

Q1 2013 / Q1 2012
Consulting Services 5.1 4.7 -10.1
Local Professional Services 15.8 15.4  -5.2
Technology Services 40.4 40.6 -1.2
Outsourcing Services 38.7 39.3  0.2


Change in revenues by geography


        Published Organic
  Published Sequential
(%)
Year-on Year
(%)
Sequential
(%)
Year-on Year
(%)
  Q1 2012 Q4 2012 Q1 2013 Q1 13 / Q4 12 Q1 13 / Q1 12 Q1 13 / Q4 12 Q1 13 / Q1 12
North America 505 517 501 -3.0 -0.8 -1.0 0.1
United Kingdom and Ireland 510 501 510 1.9 -0.1 7.4 2
France 578 568 551 -3.1 -4.8 -3.1 -4.8
Benelux 298 280 273 -2.2 -8.7 -2.2 -8.7
Rest of Europe 478 495 469 -5.4 -1.5 -5.5 -2.6
APAC and Latin America 196 230 195 -15.4 -0.4 -16.0 6.3
Total 2,565 2,591 2,499 -3.6 -2.6 -2.3 -1.7


Q1 2013 major events

  • Capgemini won a major application services contract with Norway Post worth €34 million over six years.
  • Capgemini signed a major five-year BPO contract with the Swedish industrial group, Sandvik, worth several tens of millions of euros.
  • The energy utility E.ON chose Capgemini for the management of its smart meters in Sweden. This five-year contract is worth several tens of millions of euros.