Capgemini : Capgemini reports solid performance in 2012
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Capgemini reports solid performance in 2012
*Revenues of €10.3 billion, up 5.9%
*Operating margin rate of 7.7%, up 0.3 points
*Profit for the year attributable to shareholders of €370 million
*Net cash and cash equivalents of €872 million
Paris, February 20, 2013 - The Board of Directors of CapGemini chaired by Mr.
Paul Hermelin, convened today in Paris to review and authorize for issue the
accounts^ of Capgemini Group for the year ended December 31, 2012. The key
figures are as follows:
(in millions of euros) FY H1 2012 H2 2012 FY
Revenues 9,693 5,150 5,114 10,264
Operating margin^ (before amortization of 738 347 477 824
intangible assets acquired through business
as a % of revenues 7.6% 6.7% 9.3% 8.0%
Operating margin 713 328 459 787
as a % of revenues 7.4% 6.4% 9.0% 7.7%
Operating profit^ 595 237 364 601
Profit for the year attributable to shareholders 404 143 227 370
as a % of revenues 4.2% 2.8% 4.4% 3.6%
Net cash and cash equivalents 454 27 872 872
Organic Free Cash flow^ 164 (309) 805 496
Despite a slow market, 2012 saw the Group cross the €10 billion revenues
milestone (€10,264 million). Revenues increased 5.9% on 2011 published figures
(i.e. at current Group structure and exchange rates). On a like-for-like basis
(i.e. at constant Group structure and exchange rates) revenues grew 1.2%. The
difference between these two rates is primarily due to the appreciation of the
US dollar and the UK pound against the euro and the integration of Prosodie,
acquired in July 2011.
Bookings during the year totaled €10,084 million, at the same level as in 2011
(€10,122 million). The book-to-bill ratio is 1.07 for the year and 1.16 for
the fourth quarter for Technology Services, Local Professional Services
(Sogeti) and Consulting Services together, confirming the dynamism of these
The operating margin is €787 million, or 7.7% of 2012 consolidated revenues,
representing an increase of 0.3 points on 2011, in line with Group objectives.
The Group continues to improve its profitability, even attaining 9.0% in the
second half of 2012. Before amortization of intangible assets acquired through
business combinations, the operating margin is 8.0% in 2012. In spite of a
significant increase in restructuring costs (€168 million in 2012 compared
with €81 million in 2011), operating profit is €601 million.
Profit for the year attributable to shareholders is €370 million after an
income tax expense which increased by 40.0% (€140 million versus €101 million
Net cash and cash equivalents total €872million at December 31, 2012, up €418
million year-on-year. Boosted by the excellent second-half performance,
organic free cash flow is €496 million, compared with €164 million in 2011
(including anticipated payments from some major anglo-saxon clients of €100
The Board of Directors decided this date to recommend the payment of a
dividend of €1 per share^ at the next Ordinary Shareholders' Meeting,
unchanged on last year. This represents a distribution of 44% of profit for
the year attributable to shareholders, above the standard amount (one-third)
distributed by the Group for many years.
The Board of Directors also decided to cancel 1,937,647 of its own shares
purchased between December, 2012 and February 2013 for a total amount 66
million euros, representing 1.2% of the outstanding share capital.
Outlook for 2013
After accounting for the decreased revenue of our Aspire contract (with HMRC)
and the Group focus on removing dilutive business, the Group targets an
organic revenue growth for 2013 in line with 2012.
The Group expects an operating margin rate in excess of 8.3% before
amortization of intangible assets acquired through business combinations (i.e.
over 8.0%, as reported until now).
Cumulated organic free cash flow for the period 2012-2013 is anticipated to be
between €750 and
For Paul Hermelin, Chairman and Chief Executive Officer of the Capgemini
Group: "Despite the economic slowdown observed in 2012 in the euro zone, the
Group reports a solid performance - in line with its commitments - and proves
once again its ability to hold firm against economic fluctuations. We have
strengthened our global focus - as demonstrated by our success in North
America, the world's leading IT services market -, grew our offshore resources
and enriched our services portfolio. In 2013 more than ever, we will seek to
establish Capgemini as a global leader alongside the major market players,
able to satisfy client requirements on competitivity and innovation."
o 0 o
Notes to the press release published February 20, 2013
Operations by major region:
*France - which retains its number-one spot among the Group's regions in
terms of revenues, saw this latter increase 2.0% on 2011 published
figures, taking into account the acquisition of Prosodie. On a
like-for-like basis revenues fell 2.1%, with Technology Services and
Outsourcing Services remaining stable. The operating margin for the region
is 7.8%, in line with the Group average;
*The North America region reported remarkable revenue growth of 16.4%.
Organic growth of 7.0% was driven by the vitality of Technology Services,
Sogeti and Consulting Services. With an operating margin rate of 8.8%,
North America remains, as in 2011, one of the Group's most profitable
*The United Kingdom & Ireland region reported revenue growth of 8.1%.
Like-for-like growth is limited at 0.9%, the dynamism of Technology
Services more than offsetting the slowdown in Outsourcing Services due to
the expected reduction in public sector expenditure. At 7.7%, the
operating margin rate is up 0.6 points on 2011;
*Benelux recorded an 11.7% decline in revenues in 2012 with a sequential
stabilization in the fourth quarter. The operating margin rate is 7.2%
(down slightly by 0.2 points on 2011). Measures taken in September have
already enabled a return to an operating margin rate of 10% in the second
half of 2012 (a level identical to the second half of 2009);
*In the rest of the world, revenue increased 8.8% on average (+6.3%
like-for-like), with the Nordic countries and the Asia-Pacific region
reporting the strongest growth. The average operating margin of these
regions is 9.3%, up 1.4 points on 2011.
Operations by business:
*Technology Services - the Group's leading business in terms of revenues
(over 40%) - reported growth of 3.5% (like-for-like), with a steady
improvement in the resource utilization rate and a slight increase in
prices enabling an increase in its operating margin rate of over one point
*Outsourcing Services - which contributes 40% of Group revenues - reported
revenue growth of 0.5% (like-for-like) and an operating margin rate of
7.6%, in line with 2011;
*Sogeti (15% of Group revenues) reported a 1.3% decline in revenues
(like-for-like) and a slight fall in the operating margin rate (10.4% in
2012 compared with 10.9% in 2011);
*Consulting Services (5% of Group revenues) reported a 3.6% decline in
revenues like-for-like. Despite a slight fall in the operating margin rate
in 2012, Consulting Services remains the Group's most profitable business
On December 31, 2012, the total headcount of the Group was 125,110 employees
compared with 119,707 employees at the end of the prior year. We reached the
50,000 employee milestone in Offshore centers (50,425 offshore employees,
including 41,019 in India), representing 40% of the total Group headcount
compared with 37% at the end of 2011.
The Group recruited over 31,000 new employees in 2012.
Mr Paul Hermelin's compensation, Chairman and Chief Executive Officer:
The Board of Directors, after hearing the recommendations put forward by the
Selection and Compensation Committee, made the following decisions regarding
the of the Chairman and Chief Executive Officer's compensation:
The Committee reminded the Board that Mr. Hermelin's compensation is composed
- as for all of the Group's managers - of a fixed part equal to 60% of the
total target compensation and of a variable part (40% of the total target
*for half of it (V1) of the ratio existing between the Group's
consolidated and audited financial results and the same results
as they were anticipated in the budget i.e 107,16 %,
*and for the other half (V2) of the percentage of achievement of a
number of personal objectives of a strategic or operational
nature which had been given to him at the beginning of the year.
The Board validated the assessment made by the Committee of the
degree of achievement of each of these objectives, the total of
the notes so attributed being 104 /100.
Mr. Hermelin's actual compensation for the fiscal year 2012 thus breaks down
*a fixed salary of euro 1,320,000 paid in monthly installments
*a first part equal to euro 471,500 (107,16 % of a 440,000 €
*a second part equal to euro 457,600 (104 % of a 440,000 € target
that is a total of euro 2,249,100, up 2.98% from the actual compensation for
The Committee proposed to the Board, which accepted it, to reflect Mr
Hermelin's new responsibilities as Chairman of the Board since May 24th in
addition to his position as Chief Executive Officer and hence to increase his
target compensation to euro 2420000 (a fixed salary of euro 1,452,000 plus a
variable part of euro 968,000) after five years of stagnation, Mr Hermelin
having requested that his target compensation remained unchanged during such
period with regard to the challenging economic environment.
The board acknowledged that Mr Hermelin renounced all board fees to which he
was duly entitled for 2012.
Performance shares grants :
The Board of Directors, after hearing the recommendations put forward by the
Selection and Compensation Committee, decided to grant 1209100 performance
shares representing 0,75 % of the outstanding share capital to 368 grantees
out of which 50000 amounting to 4,1 % of the total grant were allocated to Mr
Paul Hermelin. It is reminded that the May 2012 AGM authorized the issuance of
up to 1,5 % of the share capital as performance shares subordinated to two
performance conditions, one internal condition relating to free cash flow
generation over three years and one external condition reflecting share price
outperformance over a basket of competitors.
Mr Hermelin must keep any actually granted shares until the expiry of his
corporate officer role.
For further information go to: capgemini.com
^Audit procedures on the consolidated financial statements have been
completed. The auditors are in the process of issuing their report.
Operating margin is one of the Group's key performance indicators. It is
defined as the difference between revenues and operating costs, these being
equal to the cost of services rendered (expenses incurred during project
delivery) plus selling and general and administrative expenses.
Operating profit of the Group incorporates the charges associated with
shares or options allocated to a large number of employees, as well as other
non-recurring income and expenses such as goodwill impairment, capital gains
or losses on disposals, restructuring costs, the cost of acquiring and
integrating acquired companies, as well as the impacts of the curtailment
and/or settlement of defined benefit pension plans.
Organic Free Cash flow is equal to cash flow from operations less
acquisitions of property, plant, equipment and intangible assets (net of
disposals) and adjusted for flows relating to the net interest cost.
Subject to the approval of shareholders at the Combined Shareholders'
Meeting to be held on Thursday May 23, 2013, and in compliance with NYSE
Euronext regulations, the ex-dividend date will be Monday, June 3 and the
dividend payment date Thursday, June 6.
PR Capgemini Eng FY2012
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information contained therein.
Source: Capgemini via Thomson Reuters ONE
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