Capgemini Press Release// Growth momentum stronger than anticipated
in Q1 2021
Media
relations:Florence LièvreTel.: 01 47 54
50 71florence.lievre@capgemini.com
Investor
relations:Vincent BiraudTel.: 01 47 54 50
87vincent.biraud@capgemini.com
Growth momentum
stronger than
anticipated in Q1 2021
Paris, April
29,
2021 – Capgemini
Group reported Q1 2021 revenues of €4,271 million, up 24.2%
year-on-year at constant exchange rates1*.
Aiman Ezzat, Chief Executive Officer of the
Capgemini Group, commented: “We delivered an excellent performance
in the first quarter of 2021, with a return to organic growth.
Growth was stronger than anticipated and activity even surpassed
pre-health crisis levels, reflecting not only a more dynamic market
but also the accelerated deployment of our strategy. Performance
improved across all our geographies and sectors. We are strongly
positioned in cloud and data, the main drivers of technology and
business transformation in the years to come, which fueled this
performance. The first quarter was also marked by a return to
large-scale recruitment to meet client demand. In this context, our
growth for 2021 should exceed the mid-point of the targeted
range.
We recently unveiled the Capgemini Engineering
brand which brings together a unique set of cutting-edge
capabilities in Engineering and R&D. This perfectly complements
the Group’s already well-established portfolio of business
offerings and supports our leadership position in Intelligent
Industry.
Finally, we were recently named one of
the world’s most ethical companies for the
ninth year in a row. This is a very meaningful distinction for me
because our Group is founded on values that enable us to forge
long-lasting relationships with all stakeholders in our ecosystem
and pave the way for a sustainable future.
I would also like to reaffirm that our priority
remains the health and well-being of our teams. Currently we are
closely monitoring the health situation in India and Brazil and
continue to provide support to all our employees. ”
|
Revenues(in millions of euros) |
|
Change |
|
2020 |
2021 |
|
Reported |
Atconstant exchange
rates* |
Q1 |
3,547 |
4,271 |
|
+20.4% |
+24.2% |
Group momentum continued to improve in Q1 2021,
with annual growth rates higher than in Q4 2020. With a return to
growth at constant scope and exchange rates in Q1, at +1.7%, Group
revenues are already up on pre-crisis levels.
Group revenues rose by +20.4% at current
exchange rates and +24.2% at constant exchange rates*, with the
consolidation of Altran Technologies (“Altran”) effective April
1st, 2020. This momentum also reflects the double-digit growth
achieved in Digital and Cloud activities.
OPERATIONS BY
REGION
In Q1 2021, annual growth rates at constant
exchange rates improved across all Group regions compared to Q4
2020, reflecting stronger underlying organic growth momentum, i.e.
at constant scope and exchange rates.
On an organic basis, the North
America
(28% of Group revenues) and Rest
of Europe (31% of Group revenues)
regions returned to growth. Growth accelerated in
Asia-Pacific
and Latin
America
(7% of Group revenues) and United Kingdom and
Ireland (12% of
Group revenues), climbing to double figures in the latter region.
Finally, France (22% of Group revenues) continued
its gradual recovery, although it was still down on Q1 2020.
Momentum improved in all sectors in Q1 2021. In
particular, on an organic basis: the Manufacturing sector (25% of
Group revenues, including the Life Sciences segment) reported the
most significant improvement, with now only a limited year-on-year
contraction. The Public sector (14% of Group revenues) maintained
its strong performance, once again reporting double-digit growth.
The Consumer Goods sector (12% of Group revenues) reported a strong
Q1 with a return to solid growth. Finally, the Services sector (5%
of Group revenues, including transportation, hotels and catering),
which bore the brunt of the crisis, reported a further improvement,
with a substantially lower decline than in Q4 2020.
OPERATIONS BY
BUSINESS
All of the Group's businesses reported further
sequential improvements in annual growth rates compared to the
previous quarter, both at constant exchange rates and organically
(that is at constant scope and exchange rates).
All businesses are now posting organic growth in
total revenues*, except for Engineering which however clearly
improved. On an organic basis,
Strategy
& Transformation consulting
services (7% of Group revenues) and Applications
& Technology
services (62% of Group revenues and Capgemini’s core business)
returned to growth in Q1 2021.
Operations
& Engineering services (31%
of Group revenues) continued their recovery with only a slight
decline in activity, boosted by higher growth in cloud
infrastructure services.
The +77,6% growth in Operations
& Engineering total revenues
at constant exchange rates reflects the consolidation of Altran,
which mainly delivers Engineering services. The Altran
consolidation had a much lesser impact on the other business
lines.
HEADCOUNT
As of March 31, 2021, the Group’s total
headcount stood at 274,500, up 25.3% year-on-year, with a 21.7%
increase in employees in offshore centers to 152,000 (55% of the
total headcount and a 1-point increase compared to December 31,
2020).
BOOKINGS
Bookings totaled €4,201 million in Q1 2021, up
27.3% at constant exchange rates year-on-year. The book-to-bill
ratio also improved to 98%, compared to 96% in Q1 2020.
OUTLOOK
For the full year 2021, the Group aims to
achieve:
- A constant currency growth of +7.0%
to +9.0%;
- An operating margin of 12.2% to
12.4%, i.e. at 2019 level;
- An organic free cash flow above
€1,300 million.
The inorganic contribution to growth is
anticipated at c. 4.5 points.
CONFERENCE CALL
Aiman Ezzat, Chief Executive Officer, and Carole
Ferrand, Chief Financial 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 placed online on the Capgemini investor website at
https://investors.capgemini.com/en/.
CALENDAR
May 20,
2021 Shareholders’
Meeting behind closed doors (more information is available on this
page)
July 28,
2021 Publication of
H1 2021 results
It is recalled that the payment schedule for the
dividend – the amount of which (€1.95 per share) will be submitted
for approval to the Shareholders’ Meeting - is as follows:
June 2,
2021 Ex-dividend
date on Euronext ParisJune 4,
2021 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
270,000 team members in nearly 50 countries. With its strong 50
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 in 2020
global revenues of €16 billion.Get the Future You Want |
www.capgemini.com
***
APPENDIX2 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
2021 |
Organic growth |
+1.7% |
Changes in Group scope |
+22.5 pts |
Growth at constant exchange rates |
+24.2% |
Exchange rate fluctuations |
-3.8 pts |
Reported growth |
+20.4% |
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 expenses” 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 is 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.
REVENUES BY
REGION
|
Revenues(in millions of euros) |
|
Change |
|
|
Q1 2020 |
Q1 2021 |
|
Reported |
At constant exchange
rates |
|
North America |
1,133 |
1,207 |
|
+6.5% |
+16.1% |
|
United Kingdom and Ireland |
410 |
502 |
|
+22.2% |
+24.1% |
|
France |
755 |
931 |
|
+23.2% |
+23.2% |
|
Rest of Europe |
980 |
1,336 |
|
+36.4% |
+35.3% |
|
Asia-Pacific and Latin America |
269 |
295 |
|
+9.8% |
+17.3% |
|
TOTAL |
3,547 |
4,271 |
|
+20.4% |
+24.2% |
|
REVENUES BY
BUSINESS
|
Total revenues*(% of Group revenues) |
|
Changeat constant exchange rates
in total
revenues*of the
business |
|
Q1 2020 |
Q1 2021 |
|
Strategy & Transformation |
7% |
7% |
|
+25.2% |
Applications & Technology |
71% |
62% |
|
+5.7% |
Operations & Engineering |
22% |
31% |
|
+77.6% |
* The terms and Alternative Performance Measures
marked with an (*) are defined and/or reconciled in the appendix to
this press release.2 Note that in the appendix, certain totals may
not equal the sum of amounts due to rounding adjustments.
- Capgemini_-_2021-04-29_-_Q1_2021_Revenues
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