Capgemini: Capgemini continues to deliver on its strategic priorities Strong increase in profit in H1 2014: +36%

 Capgemini: Capgemini continues to deliver on its strategic priorities Strong
                     increase in profit in H1 2014: +36%

               Press Relations
               Christel Lerouge
         Tel. +33 1 47 54 50 71
             Investor Relations
               Walter Vejdovsky
         Tél. +33 1 47 54 50 87

          Capgemini continues to deliver on its strategic priorities

                  Strong increase in profit in H1 2014: +36%


Paris, July 31, 2014 - Capgemini  Group reports H1 2014 consolidated  revenues 
of €5 104 million, up 1.4% vs. H1 2013 at current group structure and exchange
rates and 2.6% on a like-for-like basis (i.e. at constant Group structure  and 
exchange rates). In Q2  revenues increased by 3.0%  compared with 2.3% in  Q1. 
The H1 operating margin reached 7.9%,  up 0.6 points vs. the margin  delivered 
in the same period in 2013. Profit for H1 attributable to shareholders surged
36% to €240 million, compared with €176 million in H1 2013. The Group is well
on track on the execution of its strategic priorities: innovation, notably  by 
accompanying  its  clients  in  the  adoption   of  the  cloud  and  the   new 
technologies,  and  competitiveness  with  the  enhancement  of  its  offshore 
platforms and the industrialization of its production.


(in million of Euros)                                  H1 2013 H1 2014 Change
  Revenues                                                5,033   5,104 +1.4%*
  Operating margin^[1]                                      367     402
                                     as % of revenues      7.3%    7.9% +0.6pt
  Operating profit                                          302     354
                                     as % of revenues      6.0%    6.9% +0.9pt
  Profit attributable to shareholders                       176     240   +36%
                                     as % of revenues      3.5%    4.7%
  Net cash and cash equivalents at the end of the           272     205
  Organic free cash flow^[2]                              (313)   (148)

 * +2.6% on like-for-like basis

Like-for-likegrowth in revenues breaks down as follows:

  oBy business*, Consulting Services (4% of Group revenues) contracted by
    4.7%. Local Professional Services (Sogeti) (15% of Group revenues) grew
    slightly by 0.6% (+1.1% in Q2). Application Services (56% of Group
    revenues) grew 2.2% in H1 (+2.5% in Q2) supported by a good momentum in
    SMAC and application maintenance. Other Managed Services (24% of Group
    revenues) showed the best increase with 6.5% in H1 (+7.2% in Q2) fueled by
    growth in BPO and Infrastructure Services.
  oby region, the emerging countries of Asia Pacific and Latin America
    reported strong growth (+9.1%). Activity in North America remains strong
    with a revenue growth of 6.1% in H1 (+7.9% in Q2). With an increase of
    revenues of 3.3%, the United Kingdom and Ireland region is showing the
    dynamism of the commercial sector. Activity in France continued to expand
    by 1.5% in H1 (+1.9% in Q2) in spite of a slow environment. Benelux
    reported a 2.1% fall in revenues in H1, with the decrease limited to 1.2%
    in Q2; aiming for a stable activity in the second-half. The rest of Europe
    is flat (-0.1%) with still a difficult environment in Spain.

Bookings totaled €5 653 million in H1 2014, a growth 20% compared to the  same 
period in 2013 and an overall book to bill of 1.11.

The operating margin of the Group for H1 2014 reached €402 million, or 7.9% of
revenues, up 0.6 points on H1 2013.

Profit for the period attributable  to shareholders is €240 million,  compared 
with €176 million for H1 2013, an increase of 36%.

Organic free  cash flow  is -€148  million  for H1  2014 compared  with  -€313 
million for H1 2013. Net cash and cash equivalents total €205 million on  June 
30, 2014.

At the end of H1 2014, the total headcount of the Group was 138,809  including 
1,842 employees from the acquisition of  Euriware, which was completed on  May 
7, 2014. Offshore employees totaled 62,909, up 16% on June 30, 2013 (including
51,877 in India) and represented  45% of the Group  headcount, up 3 points  on 
June 30, 2013.

H1 strong performance supports  the Group's annual  guidance, it confirms  its 
objectives for 2014 of an 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 the Capgemini Group: "In spite of  slow 
economic growth  in our  key markets  in Continental  Europe, we  continue  to 
execute our strategy and meet our commitments; reporting growth in H1 in  line 
with our objectives, driven by the momentum of our operations in North America
and emerging countries, and a strong  improvement in profits. Our strategy  to 
combine competitiveness and innovation is bearing fruit."

The Board of  Directors has also  decided, pursuant to  resolutions 30 and  31 
voted in the  last Shareholders  General Assembly,  to launch  a new  capital 
increase reserved for employees for a maximum of 5 million shares, along  with 
the end of the 2009 share ownership plan; the transaction should be  completed 
before the end of 2014. It also authorized a new share buyback program of  €80 
million in order to  neutralize the future dilution  generated by the  various 
equity-based instruments granted to employees.

*Note on the definition of the businesses:

The growing  demand  of  customers,  to integrate  within  a  single  contract 
maintenance services and application development, has led the Group to  revise 
the presentation of segment information  by business. The distinction  between 
Technology Services, including application development, and Outsourcing  which 
includes the maintenance activity, has therefore become artificial.

Accordingly, effective from January 1, 2014, segment reporting by business  is 
presented as follows:

  oConsulting Services, which help to enhance the performance of
    organizations based on in-depth knowledge of client industries and
    processes (unchanged),
  oLocal Professional Services, which provide assistance and support to
    internal IT teams within client companies (unchanged),
  oApplication Services, which devise, develop, implement and maintain IT
    applications covering the Group's system integration and application
    maintenance activities.
  oOther Managed Services, which integrate, manage and/or develop either
    fully or partially, client's IT Infrastructure systems (or that of a group
    of clients), transaction services, on demand services and/or business
    activities (Business Process Outsourcing, BPO).


    Results by region

              % Revenues   Growth vs. H1 2013    Operating margin
                            H1 2014   Published Like-for-like H1 2013  H1 2014
  North America              20.3%      0.3%        6.1%       12.3%    11.9%
  United Kingdom and         21.2%      7.0%        3.3%        8.1%    9.9%
  France                     22.4%      4.7%        1.5%        7.2%    6.7%
  Benelux                    10.3%      -2.1%       -2.1%       8.2%    8.9%
  Rest of Europe             18.1%      -2.1%       -0.1%       6.2%    7.9%
  Asia Pacific and Latin      7.7%      -5.7%       9.1%       2.6%    2.7%
  TOTAL                      100.0%     1.4%        2.6%        7.3%    7.9%

    Results by business

                                   % revenues Growth ^(1) vs. Operating margin
                                    H1 2014       H12013     H1 2013  H1 2014
  Consulting                          4.4%         -4.7%        7.7%    7.0%
  Local Professional Services        15.2%         0.6%         9.1%    8.2%
  Application Services               56.4%         2.2%         8.4%    9.3%
  Other Managed Services             24.0%         6.5%         6.0%    7.3%

^ (1) like-for-like

    Key events of H1 2014

  oLaunch of "Digital Customer Experience", a new global service line to help
    organizations digitalize their customer experience

  oStrategic partnership with VMWare to jointly develop new business cloud
    orchestration solutions
  oOver €40M contract with Lloyd's Register to deliver new and enhanced
    infrastructure and application services
  oAcquisition of the French IT Services firm Euriware
  oPartnership signed with Areva covering a large outsourcing and systems
    integration contract for €1 billion over 10 years
  oBPO contract with Honeywell for the management of financial and accounting
  oExpansion of our partnership with Cloudera to help organizations
    accelerate their Big Data initiatives
  oApplication Services contract with Office Depot

Historical results by business

            Revenue in €M               2012   2013  H1 2013 H1 2014
  Consulting                            500    456     237     226
  Local Professional Services (Sogeti) 1,528  1,498    755     775
  Application Services                 5,908  5,825   2,923   2,879
  Other Managed Services               2,328  2,313   1,118   1,224
  Total                                10,264 10,092  5,033   5,104

   Operating Margin in % of revenue    2012  2013  H1 2013 H1 2014
  Consulting                           11.2% 7.8%   7.7%    7.0%
  Local Professional Services (Sogeti) 10.7% 10.6%  9.1%    8.2%
  Application Services                 8.6%  9.7%   8.4%    9.3%
  Other Managed Services               7.0%  7.1%   6.0%    7.3%


[1]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  amortization of  intangible assets  recognized in  business 
combinations, the  charges  associated with  shares  or options  allocated  to 
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.

[2]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.

PR H1 2014


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf
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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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