Media relations:
Florence Lièvre
Tel.: +33 1 47 54 50 71
florence.lievre@capgemini.com
Investor relations:
Vincent Biraud
Tel.: +33 1 47 54 50 87
vincent.biraud@capgemini.com
Q1 2017: Capgemini
starts the year on a solid footing
Paris, April 26, 2017 - Capgemini Group achieved
consolidated revenues of €3,171 million in the first quarter of
2017, up 2.8% year-on-year at constant exchange rates*.
For Paul Hermelin, Chairman and
Chief Executive Officer of Capgemini Group: "We start the year on a
solid footing. Our revenue growth of 2.8% in Q1 is driven by a
strong momentum in Continental Europe and an improved performance
in North America. Financial Services and Manufacturing - which
together account for nearly half of the Group's revenues - show
growth rates close to 10%. This reflects our ability to support key
market players in their digital transformation. In addition, a
strong level of bookings confirms the good start to the year.
Digital and Cloud grew 24%
year-on-year and now account for 32% of our revenues. We completed
three focused acquisitions this quarter, aimed at further expanding
our portfolio in these areas and bringing innovative and end-to-end
digital solutions to our clients: Idean, a digital design firm
based in Palo Alto, Atlanta-based TCube Solutions, specialized in
Duck Creek Technologies insurance software and Itelios, an
omni-channel e-commerce expert.
We are also investing in our
automation platforms and our global production centers to accompany
our clients in their drive to improve competitiveness.
By continuing to implement our
strategic priorities, we demonstrate our ability to achieve all our
objectives for 2017, the year of Capgemini's 50th
anniversary."
|
(In millions of euros) |
|
Change |
|
Q1 2016 |
Q1 2017 |
|
As reported |
At constant exchange rates* |
At constant exchange rates and Group scope* |
Revenues |
3,092 |
3,171 |
|
+2.6% |
+2.8% |
+2.6% |
Q1 revenues totaled €3,171
million, up 2.6% year-on-year on a reported basis. At constant
exchange rates*, revenue grew
2.8% after adjusting for the Brazilian equipment resale business
which is being discontinued.
OPERATIONS BY
BUSINESS
Consulting
Services (4% of Group revenues), driven by growth in
Continental Europe and fueled by digital transformation demand,
reported year-on-year revenue growth of 10.6% at constant exchange
rates. Technology & Engineering Services
(16% of Group revenues) grew 5.0% at constant exchange rates,
progressing across all Group regions, with a return to growth in
France amplified by the positive impact of the number of working
days this quarter. Application Services (61%
of Group revenues) benefitted from a strong market demand for
digital and cloud-based application offerings and continue to drive
Group momentum, with revenue growth of 5.3%. Other
Managed Services (19% of Group revenues) reported revenues down
by 7.6%. This is entirely attributable to Infrastructure Services
which continue to be impacted by the anticipated decline in the UK
public sector. Business Services (Business Process Outsourcing and
platforms) are stable in Q1.
OPERATIONS BY
MAJOR REGION
In Q1, as planned, North America began to restore its growth momentum,
with revenues almost stable year-on-year, at -0.2% at constant
exchange rates, a marked improvement on the -3.1% reported in Q4
2016. In this region, the Energy & Utilities sector confirmed
its path to recovery, with a third quarter of sequential revenue
stability, while the Financial Services sector enjoyed good
momentum and the Manufacturing sector strengthened. The United Kingdom and Ireland reported a revenue decline
of 7.6% at constant exchange rates, reflecting the anticipated
decline in the public sector while private sector remains healthy.
France grew 5.2%, with almost 10% increase in
Financial Services and Manufacturing, as well as in the consumer
sectors (Commerce, Distribution, Telecom, etc.). The Rest of Europe enjoyed revenue growth of 7.8%, with
around 10% increase in Germany, Scandinavia and Italy and positive
growth in Benelux. Finally, the Asia-Pacific and
Latin America region grew 13.6%, with activity slightly down in
Latin America (excluding the Brazilian equipment resale business)
and strong growth in Asia-Pacific.
HEADCOUNT
At March 31, 2017, the Group's
total headcount stood at 195,800, up 7% year-on-year, with 111,300
employees in offshore centers (57% of the total headcount).
BOOKINGS
Bookings totaled €3,001 million in
Q1 2017, down 3.2% at constant exchange rates on Q1 2016 which
benefited from the renewal of a major multi-year contract in the UK
public sector.
OUTLOOK FOR
2017
For 2017, the Group forecasts
revenue growth at constant exchange rates of 3.0%, an operating
margin of 11.7% to 11.9% and organic free cash flow generation in
excess of €950 million.
In addition:
-
The Group expects the impact of currency
movements on revenues to be limited on a full year basis, with the
impact of the pound sterling depreciation against the euro
offsetting notably the appreciation of the US dollar and the
Brazilian real;
-
The Group has decided to discontinue its
equipment resale activity in Brazil, which represented
approximately €60 million in 2016. In order not to disrupt the
analysis of quarterly trends, organic growth and growth at constant
exchange rates are presented after removing this activity from 2016
and 2017 revenues;
-
The impact of acquisitions on revenue growth is
estimated at this stage to be a few tens of basis points.
CONFERENCE
CALL
Paul Hermelin, Chairman and Chief
Executive Officer and Aiman Ezzat, Chief Financial Officer, will
present this press release during a conference call in English to
be held today at 8 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 placed online on the Capgemini investor website
at https://www.capgemini.com/results.
SCHEDULE
May 10,
2017 Combined
Shareholders' Meeting
July 27, 2017
Publication of H1 2017 results
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 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.
In this disclaimer, the term
"Capgemini" refers to Cap Gemini SA, its affiliates and their
respective directors, managers and employees.
ABOUT
CAPGEMINI
With more than 190,000 people,
Capgemini is present in over 40 countries and celebrates its
50th Anniversary
year in 2017. A global leader in consulting, technology and
outsourcing services, the Group reported 2016 global revenues of
EUR 12.5 billion. Together with its clients, Capgemini creates and
delivers business, technology and digital solutions that fit their
needs, enabling them to achieve innovation and competitiveness. A
deeply multicultural organization, Capgemini has developed its own
way of working, the Collaborative Business ExperienceTM, and draws
on Rightshore®, its
worldwide delivery model.
Learn more about us at www.capgemini.com.
Rightshore® is
a trademark belonging to Capgemini
APPENDIX
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 published fiscal year. Exchange rates for the published fiscal
year are also used to calculate growth at constant
exchange rates.
As announced on the publication of
the outlook for 2017, to ensure that the discontinuation of
equipment resale activities in Brazil does not disrupt the analysis
of quarterly trends, organic growth and growth at constant exchange
rates will be presented after removing this activity from 2016 and
2017 revenues.
Growth rates reconciliation |
Organic growth |
+2.6% |
Changes in
Group scope |
+0.2pt |
Growth at constant exchange rates |
+2.8% |
Exchange
rates fluctuations |
+0.2pt |
Current growth |
+3.0% |
Activities
being discontinued |
-0.4pt |
Reported growth |
+2.6% |
The impact from currencies is
primarily due to the appreciation of the Brazilian real, the US
dollar and the Canadian dollar and the depreciation of the pound
sterling. The impact of discontinued activities is linked to
evolution of the equipment resale business in Brazil, which in the
first quarter of 2016 represented 18 million euros at the reported
rate.
RESULTS BY
REGION
|
Revenues |
|
Change |
|
Q1 2016
(In millions of euros) |
Q1 2017
(In millions of euros) |
|
At constant exchange rates |
As reported |
North America |
938 |
972 |
|
-0.2% |
+3.6% |
United Kingdom and
Ireland |
525 |
435 |
|
-7.6% |
-17.1% |
France |
633 |
666 |
|
+5.2% |
+5.2% |
Rest of Europe |
780 |
841 |
|
+7.8% |
+7.9% |
Asia-Pacific and Latin America |
216 |
257 |
|
+13.6% |
+18.9% |
TOTAL |
3,092 |
3,171 |
|
+2.8% |
+2.6% |
OPERATIONS BY
BUSINESS
|
% of revenues |
|
Change |
|
Q1 2016 |
Q1 2017 |
|
At constant exchange rates |
Consulting
services |
4% |
4% |
|
+10.6% |
Technology &
Engineering Services |
15% |
16% |
|
+5.0% |
Application
services |
59% |
61% |
|
+5.3% |
Other
managed services |
22% |
19% |
|
-7.6% |
TOTAL |
100% |
100% |
|
+2.8% |
UTILIZATION
RATES
|
Q1 2016 |
Q2 2016 |
Q3 2016 |
Q4 2016 |
Q1 2017 |
Consulting
services |
70% |
71% |
68% |
70% |
71% |
Technology &
Engineering Services |
82% |
83% |
83% |
83% |
82% |
Application
services |
81% |
81% |
82% |
81% |
81% |
* The terms and
non-GAAP measures marked with an (*) are defined and/or reconciled
in the appendix to this press release.
Q1 2017: Capgemini starts the year
on a solid footing
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Capgemini via Globenewswire
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