Organic Revenue Growth of 2.8% and 5.7% at Current Group Structure and Exchange Rates in Q3 2014

| Financial news
Paris, November 6, 2014 – Capgemini Group reports Q3 2014 revenues of €2,591 million, up 2.8% on Q3 2013 on a like-for-like basis (i.e. at constant Group structure and exchange rates). This performance is all the more significant as the scheduled reduction of IT hardware sales to a major South American client weighed approximately one point on Group growth for the quarter. Revenues grew 5.7% at current Group structure and exchange rates. The difference between these two rates is due to favorable movements in certain currencies used by the Group and the consolidation of Euriware, the French company that was acquired in May.
Q3 2014
Revenues
Q3 2013
Revenues
Change Q3 2014/
Q3 2013
€2,591 million €2,451 million At constant Group
structure and
exchange rates
+2.8%
At current Group
structure and
exchange rates
+5.7%

At constant Group structure and exchange rate, growth in revenues breaks down as follows:
  • By business, Consulting Services (4% of Group revenues) contracted by 3.0%. Local Professional Services (Sogeti) (14% of Group revenues) remained stable, with good growth in North America and the Nordic countries offset by a downturn in France. Application Services (55% of Group revenues) grew 5.1%, driven by the dynamism of project activities in North America and the United Kingdom and by application management activities. Other Managed Services (27% of Group revenues) reported limited growth (+0.6% in Q3) but progressed 4.0% excluding the impact of the reduction of hardware sales referred to in the introduction.
  • By region, North America reported a very strong performance (+11.9%), particularly in financial services, energy, and utilities, as well as in retail and consumer goods sector. The United Kingdom and Ireland region enjoyed revenue growth of 4.0%. France reported a slight downturn in activity (-0.5%), but grew 9.0% at current Group structure and exchange rates thanks to the consolidation of Euriware. Benelux reported a slight fall of 0.8%, marking the start of a stabilization. The rest of Europe is now growing (2.9%), underpinned by the growth of Italy, Germany, Spain and the Nordic countries. The Asia-Pacific and Latin America region contracted 7.2%; Asia-Pacific grew nearly 10% over the quarter and Latin America should return to double-digit growth from Q4.

Bookings totaled €1,987 million in Q3 2014, up very slightly compared to the same period in 2013.
 
At September 30, 2014, the total headcount of the Group was 141,045, up 7.3% on December 31, 2013. Offshore employees totaled 64,616 and represented 45.8% of the total headcount. The Indian headcount increased 17% over one year.
 
The strong Q3 performance reinforces the Group’s annual guidance for 2014 of organic revenue growth of 2% to 4% and an operating margin rate between 8.8% and 9.0%. Organic free cash flow is expected to exceed €500 million.
 
For Paul Hermelin, Chairman and CEO of Capgemini Group: "In spite of an economic environment which remains mediocre in Europe, Capgemini reports strong performance. Thanks to our global geographic mix, we are able to capitalize on the excellent growth in North America (+11.9%). Furthermore, we continue to combine innovation and competiveness in order to offer our clients a service portfolio tailored to their expectations."

Appendix


Utilization rates
  Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014
Consulting Services 62% 69% 64% 67% 65% 69% 64%
Local Professional Services (Sogeti) 80% 82% 83% 82% 81% 82% 82%
Application Services 80% 81% 82% 82% 81% 82% 82%


Revenue by business

 

% revenues Q3 2013 % revenues Q3 2014 Q3 2014 /
Q3 2013*
Consulting Services
4.1%
3.8%
-3.0%
Local Professional Services (Sogeti)
14.6%
14.5%
0.0%
Application Services
55.5%
55.0%
5.1%
Other Managed Services
25.8%
26.7%
0.6%
* At constant Group structure and exchange rate


Revenue by geographic area

In millions of euros Q1 2013 Q2 2013 Q3 2013 Q1 2014 Q2 2014 Q3 2014 Q3 2014 / Q3 2013
              Published Organic
North America 501 530 516 495 540 572 10.9% 11.9%
United Kingdom and Ireland 510 500 482 539 542 540 12.0% 4.0%
France 551 541 514 556 587 560 9.0% -0.5%
Benelux 273 268 258 265 264 256 -0.8% -0.8%
Rest of Europe 469 473 418 466 458 425 1.4% 2.9%
Asia-Pacific and Latin America 195 222 263 182 210 238 -9.5% -7.2%
Total 2,499 2,534 2,451 2,503 2,601 2,591 5.7% 2.8%


Year to Date Revenue
In millions of euros YTD 2013 YTD 2014 YTD 2014 / YTD 2013
      Published Organic
North America 1,547 1,607 3.9% 8.0%
United Kingdom and Ireland 1,492 1,621 8.7% 3.5%
France 1,606 1,703 6.1% 0.8%
Benelux 799 785 -1.6% -1.6%
Rest of Europe 1,360 1,348 -1.0% 0.8%
Asia-Pacific and Latin America 680 631 -7.2% 2.5%
Total 7,484 7,695 2.8% 2.7%


Key events of Q3 2014
  • Signature of a major managed services contract with FrieslandCampina in the agri-food sector in the Netherlands.
  • Extension of a finance and accounting BPO contract with a leading European group in the healthcare sector.
  • Signature of an ERP roll-out contract with the Australian company, Westfarmers.
  • Signature of several SAP business suite on HANA® deployment contracts in the United States.
  • Certification by SAP HANA® of two key applications for retail commerce.
  • Signature of a strategic partnership agreement with VMware to deliver enterprise mobility management solutions powered by AirWatch.
  • Launch of three Engineered Systems service offerings developed in partnership with Oracle.
  • Upgrade of Capgemini’s rating to BBB+ by Standard & Poor's.
  • Capgemini ranked by Gartner among global leaders for SAP implementation services.