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Victoire Grux
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vincent.biraud@capgemini.com
- 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
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
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
Momentum also remained strong in the Rest of
Activity in
The
Finally, revenues in the
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
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
All documents relating to this publication will be posted on the
PROVISIONAL CALENDAR
May 16, 2023 Shareholders’ Meeting
July 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 Paris
June 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
This press release does not contain or constitute an offer of securities for sale or an invitation or inducement to invest in securities in
ABOUT
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 | |||
1,509 | 1,663 | +10.2% | +6.1% | |||
635 | 686 | +8.0% | +13.9% | |||
1,035 | 1,163 | +12.4% | +12.4% | |||
Rest of | 1,546 | 1,739 | +12.5% | +13.8% | ||
442 | 478 | +8.1% | +8.4% | |||
TOTAL | 5,167 | 5,729 | +10.9% | +10.7% |
RESULTS BY BUSINESS
Total revenues* (% of Group revenues) | Change at 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.
Attachments
Capgemini _-_2023-05-04_-_2023_Q1_RevenuesCapgemini _-_2023_05_04_Q123_infographics
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