Capgemini reports Q1 2023 growth above 10%
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relations:Victoire GruxTel.: +33 6 04 52 16
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Capgemini reports Q1
2023 growth
above 10%
-
Revenues of €5,729 million, up +10.9% at current exchange
rates and +10.7% at constant exchange
rates*
-
Bookings of €5,867 million, up +6.5% at constant exchange
rates
Paris, May 4, 2023 – The
Capgemini Group reported Q1 2023 revenues of €5,729 million, up
+10.9% year-on-year at current exchange rates and +10.7% at
constant exchange rates*.
Aiman Ezzat, Chief Executive Officer of the
Capgemini Group, said: “Capgemini has delivered a very good start
to the year, above expectations, in an economic environment that
remains tense with some clients adopting a ‘wait-and-see’ attitude.
The trends observed in our markets are in line with the scenario
anticipated for 2023. Our performance demonstrates the agility and
resilience of our model, and the relevance of our strategy. We
continue to reinforce our role as a strategic partner for our
clients’ business and technology transformations, with added-value
solutions specific to each industry.
We also continue to invest in upskilling our
people and enhancing our portfolio of offers. We are expanding our
capabilities in technologies and industries to respond to our
clients’ business needs in their transition to a digital and
sustainable economy. We are thus accelerating on our Sustainability
training on key topics such as net zero strategies, clean tech,
circular economy, or biodiversity. We are also exploring the most
relevant use cases in Artificial Intelligence, notably through our
new Generative AI Lab.
This strong first quarter reinforces our
confidence in our growth prospects for the year, which should now
reach or exceed the mid-point of the targeted range.”
|
Revenues(in millions of euros) |
|
Change |
|
2022 |
2023 |
|
Reported |
At constant exchange rates* |
Q1 |
5,167 |
5,729 |
|
+10.9% |
+10.7% |
Momentum remained robust in early 2023, with
revenue growth of +10.7% at constant exchange rates* in Q1 2023.
Organic growth (i.e. adjusted for Group scope and exchange rates)
was +10.1%, a deceleration that was more limited than expected
given the high comparison base.
In an economic environment that remains
challenging, this performance was mainly driven by the strength of
the Group’s high added value service offerings in the areas of
Intelligent Industry and Customer First.
OPERATIONS BY REGION
Most of the Group’s regions continued to grow
double-digits at constant exchange rates in Q1 2023.
Revenues in the United Kingdom and
Ireland region (12% of Group revenues in Q1 2023)
increased +13.9% at constant exchange rates, driven by strong
growth in the Manufacturing and Consumer Goods sectors and the
solid performance of Financial Services and the Public Sector.
Momentum also remained strong in the
Rest of Europe (31% of Group revenues), with
growth of +13.8% at constant exchange rates, driven by double-digit
growth in the sectors of Manufacturing, the Public Sector and
Financial Services - as well as TMT (Telecoms, Media and
Technology) and Energy & Utilities.
Activity in France (20% of
Group revenues) was dynamic, with growth of +12.4% at constant
exchange rates, boosted by strong momentum in the Manufacturing,
Financial Services, Consumer Goods and Public sectors.
The North America region (29%
of Group revenues) recorded comparatively moderate growth of +6.1%
at constant exchange rates. While the Manufacturing and Services
sectors were particularly dynamic, the Financial Services and
Consumer Goods sectors trailed, with growth rates lagging behind
other regions. The TMT sector experienced a slight contraction.
Finally, revenues in the Asia-Pacific
and Latin America region (8% of Group revenues) increased
by +8.4% at constant exchange rates. In Asia-Pacific, the robust
momentum - now essentially organic - was primarily fueled by the
Financial Services, Manufacturing and Consumer Goods sectors.
OPERATIONS BY
BUSINESS
All Group business lines reported growth rates
of close to or above 10% at constant exchange rates.
Strategy & Transformation
services (9% of Group revenues in Q1 2023) and Applications
& Technology services (62% of Group revenues and
Capgemini’s core business) posted growth in total revenues* at
constant exchange rates of +15.6% and +10.7%, respectively. This
strong momentum, albeit decelerating compared to 2022 as expected,
reflects the priority given by Group clients to their strategic
digital transformation projects.
Operations & Engineering
total revenues* (29% of Group revenues) grew +9.2% at constant
exchange rates, with sustained activity levels across all the
businesses.
HEADCOUNT
At March 31, 2023, the Group’s total headcount
stood at 357,000, up +5% year-on-year. 207,300 employees work in
offshore centers, or 58% of the total headcount, up +4%.
BOOKINGS
Bookings totaled €5,867 million in Q1 2023, up
+6.5% year-on-year at constant exchange rates against a
particularly high comparison base, with +26% growth in Q1 2022. The
book-to-bill ratio of 1.02 is above the average since 2017.
OUTLOOK
The Group’s financial targets for 2023 are:
- Revenue growth of +4% to +7% at
constant currency;
- Operating margin of 13.0% to
13.2%;
- Organic free cash flow of around
€1.8 billion.
The inorganic contribution to growth should be
0.5 points at the lower end of the target range and
1.0 point at the upper end.
CONFERENCE CALL
Aiman Ezzat, Chief Executive Officer,
accompanied by Carole Ferrand, Chief Financial Officer, and Olivier
Sevillia, Chief Operating Officer, will present this press release
during a conference call in English to be held today at
8.00 a.m. Paris time (CET). You can follow this conference
call live via webcast at the following link. A replay will also be
available for a period of one year.
All documents relating to this publication will
be posted on the Capgemini investor website at
https://investors.capgemini.com/en/.
PROVISIONAL CALENDAR
May 16,
2023 Shareholders’
MeetingJuly 28,
2023 H1 2023
results
It is recalled that the dividend payment
schedule to be submitted to the Shareholders’ Meeting for approval
would be:
May 30,
2023 Ex-dividend
date on Euronext ParisJune 1,
2023 Payment of the
dividend
DISCLAIMER
This press release may contain forward-looking
statements. Such statements may include projections, estimates,
assumptions, statements regarding plans, objectives, intentions
and/or expectations with respect to future financial results,
events, operations and services and product development, as well as
statements, regarding future performance or events. Forward-looking
statements are generally identified by the words “expects”,
“anticipates”, “believes”, “intends”, “estimates”, “plans”,
“projects”, “may”, “would”, “should” or the negatives of these
terms and similar expressions. Although Capgemini’s management
currently believes that the expectations reflected in such
forward-looking statements are reasonable, investors are cautioned
that forward-looking statements are subject to various risks and
uncertainties (including, without limitation, risks identified in
Capgemini’s Universal Registration Document available on
Capgemini’s website), because they relate to future events and
depend on future circumstances that may or may not occur and may be
different from those anticipated, many of which are difficult to
predict and generally beyond the control of Capgemini. Actual
results and developments may differ materially from those expressed
in, implied by or projected by forward-looking statements.
Forward-looking statements are not intended to and do not give any
assurances or comfort as to future events or results. Other than as
required by applicable law, Capgemini does not undertake any
obligation to update or revise any forward-looking statement.
This press release does not contain or
constitute an offer of securities for sale or an invitation or
inducement to invest in securities in France, the United States or
any other jurisdiction.
ABOUT CAPGEMINI
Capgemini is a global leader in partnering with
companies to transform and manage their business by harnessing the
power of technology. The Group is guided everyday by its purpose of
unleashing human energy through technology for an inclusive and
sustainable future. It is a responsible and diverse organization of
nearly 360,000 team members in more than 50 countries. With its
strong 55-year heritage and deep industry expertise, Capgemini is
trusted by its clients to address the entire breadth of their
business needs, from strategy and design to operations, fueled by
the fast evolving and innovative world of cloud, data, AI,
connectivity, software, digital engineering and platforms. The
Group reported 2022 global revenues of €22 billion.Get the Future
You Want | www.capgemini.com
* *
*
APPENDICES1
BUSINESS CLASSIFICATION
- Strategy &
Transformation includes all strategy, innovation and
transformation consulting services.
- Applications &
Technology brings together “Application Services” and
related activities and notably local technology services.
- Operations &
Engineering encompasses all other Group businesses. These
comprise Business Services (including Business Process Outsourcing
and transaction services), all Infrastructure and Cloud services,
and R&D and Engineering services.
DEFINITIONS
Organic growth or like-for-like
growth in revenues is the growth rate calculated at
constant Group scope and exchange rates. The Group scope
and exchange rates used are those for the reported period. Exchange
rates for the reported period are also used to calculate
growth at constant exchange rates.
Reconciliation of growth rates |
Q1 2023 |
Organic growth |
+10.1% |
Changes in Group scope |
+0.6 pt |
Growth at constant exchange rates |
+10.7% |
Exchange rate fluctuations |
+0.2 pt |
Reported growth |
+10.9% |
When determining activity trends by business and
in accordance with internal operating performance measures, growth
at constant exchange rates is calculated based on total
revenues, i.e., before elimination of inter-business
billing. The Group considers this to be more representative of
activity levels by business. As its businesses change, an
increasing number of contracts require a range of business
expertise for delivery, leading to a rise in inter-business
flows.
Operating margin is one of the
Group’s key performance indicators. It is defined as the difference
between revenues and operating costs. It is calculated before
“Other operating income and expense” which include amortization of
intangible assets recognized in business combinations, the charge
resulting from the deferred recognition of the fair value of shares
granted to employees (including social security contributions and
employer contributions), and non-recurring revenues and expenses,
notably impairment of goodwill, negative goodwill, capital gains or
losses on disposals of consolidated companies or businesses,
restructuring costs incurred under a detailed formal plan approved
by the Group’s Management, the cost of acquiring and integrating
companies acquired by the Group, including earn-outs comprising
conditions of presence, and the effects of curtailments,
settlements and transfers of defined benefit pension plans;
Normalized net profit is equal to profit for the
year (Group share) adjusted for the impact of items recognized in
“Other operating income and expense”, net of tax calculated using
the effective tax rate. Normalized earnings per
share are computed like basic earnings per share, i.e.
excluding dilution.
Organic free cash flow is equal
to cash flow from operations less acquisitions of property, plant,
equipment and intangible assets (net of disposals) and repayments
of lease liabilities, adjusted for cash out relating to the net
interest cost.
Net debt (or net cash
and cash equivalents) comprises (i) cash and cash
equivalents, as presented in the Consolidated Statement of Cash
Flows (consisting of short-term investments and cash at bank) less
bank overdrafts, (ii) cash management assets (assets presented
separately in the Consolidated Statement of Financial Position due
to their characteristics), less (iii) short- and long-term
borrowings. Account is also taken of (iv) the impact of hedging
instruments when these relate to borrowings, inter-company loans
and own shares.
RESULTS BY REGION
|
Revenues(in millions of euros) |
|
Change |
|
|
Q1 2022 |
Q1 2023 |
|
Reported |
At constant exchange rates |
|
North America |
1,509 |
1,663 |
|
+10.2% |
+6.1% |
|
United Kingdom and Ireland |
635 |
686 |
|
+8.0% |
+13.9% |
|
France |
1,035 |
1,163 |
|
+12.4% |
+12.4% |
|
Rest of Europe |
1,546 |
1,739 |
|
+12.5% |
+13.8% |
|
Asia-Pacific and Latin America |
442 |
478 |
|
+8.1% |
+8.4% |
|
TOTAL |
5,167 |
5,729 |
|
+10.9% |
+10.7% |
|
RESULTS BY BUSINESS
|
Total revenues* (% of Group revenues) |
|
Changeat constant
exchange rates in Total revenues*
of the business |
|
Q1 2022 |
Q1 2023 |
|
Strategy & Transformation |
8% |
9% |
|
+15.6% |
Applications & Technology |
63% |
62% |
|
+10.7% |
Operations & Engineering |
29% |
29% |
|
+9.2% |
1 Note that in the appendix, certain totals may
not equal the sum of amounts due to rounding adjustments.
- Capgemini_-_2023-05-04_-_2023_Q1_Revenues
- Capgemini_-_2023_05_04_Q123_infographics
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