Paris – The Capgemini Group generated consolidated revenues of €2,764 million in the first quarter of 2015, up 10.5% at current Group structure and exchange rates compared to the first quarter of 2014. At constant Group structure and exchange rates, the growth of revenues is up 1.5%*.
For Paul Hermelin, Chairman and Chief Executive Officer of Capgemini Group: “In a slightly improved economic environment in Europe and despite the anticipated revenue decline generated by a major contract of the Group, Capgemini achieved a solid performance in the first quarter 2015.
Capgemini has taken advantage of its excellent performance in North America, where its revenue grew 11.7% on a like-for-like basis and 33.8% at current Group structure and exchange rates. Meanwhile, the regions of Asia Pacific and Latin America reported organic growth of 22.9%.
Capgemini Consulting has successfully achieved its turnaround by focusing on digital transformation. The business recorded a rebound in activity of 3.1% in Q1 15 after several consecutive quarters of decline.
Finally, we report a strong progression of 10.3% in bookings, confirming the alignment of our portfolio to customer demand. SMAC revenue grew by 22% YoY and represents 17% of Q1 revenues1.
Innovation and industrialization remain at the heart of the Group’s priorities, they represent the two improvement levers to continually provide innovative and quality services to our customers.”
| In million of euros | Q1 2014 |
Q1 2015 |
Change at constant Group structure and exchange rates |
Change at current Group structure and exchange |
| Revenues | 2 503 | 2 764 | +1.5% | +10.5% |
(*)The difference between these two rates is mainly due to the integration of Euriware and the evolution of the U.S. dollar and the British pound sterling
OPERATIONS BY BUSINESS
On a like-for-like basis, Consulting services (4% of Group revenues) reported a revenue growth of 3.1%. Local professional services (Sogeti) (15% of Group revenues) are stable (+0.5%) and Application Services (57% of Group revenues) reported growth of 4.6%. Other managed services(24% of Group revenues) contracted by 5.1% due to the scheduled modification of the contract mentioned above.
OPERATIONS BY MAJOR REGION
On a like-for-like basis, North America reported a revenue growth of 11.7%. The United Kingdom and Ireland revenue contracted by 16.1%. France is a little more dynamic than during the second half of 2014 with an increase in revenues of 1.2%. Benelux is quasi stable with a progression of +0.9%. In the “Rest of Europe”, the growth is a little more buoyant, reported revenues were up 3.0%. Finally, the Asia-Pacific and Latin America region reported the fastest growth with +22.9%.
HEADCOUNT
On March 31, 2015, the total headcount of the Group was 147,016 employees. Offshore employees totaled 69,965, representing 48% of the total Group headcount. Furthermore, in April 2015 the Group crossed the 60,000 employees milestone in India.
NEW ORDERS
Bookings during first quarter of 2015 totaled €2 680 million, an increase of 10.3% on 2013 on a like-for-like basis.
2015 OUTLOOK
Based on the first quarter results, the Group raises its growth objectives for 2015: Capgemini forecasts a revenue growth, at current rates and perimeter, of at least 5% (although it had communicated a growth objective of 3% to 5% in February). Furthermore, the Group confirms that it is targeting an operating margin rate between 9.5% and 9.8%. Organic free cash flow is expected to exceed €600 million.
Appendix
Evolution in revenue by region:
| Current | Current | Organic | ||
| Year-on-year % | Year-on-year % | |||
| Q1 | Q1 | Q1 2015 / | Q1 2015 / | |
| 2014 | 2015 | Q1 2014 | Q1 2014 | |
| North America | 495 | 662 | 33.8% | 11.7% |
| UK and Ireland | 539 | 504 | -6.6% | -16.1% |
| France | 556 | 620 | 11.5% | 1.2% |
| Benelux | 265 | 267 | 0.9% | 0.9% |
| Rest of Europe | 466 | 471 | 1.2% | 3.0% |
| Asia Pacific & Latin America | 182 | 240 | 31.6% | 22.9% |
| Total | 2 503 | 2 764 | 10.5% | 1.5% |
Evolution in revenue by business (at constant Group structure and exchange rates):
| % of revenues Q1 2014 |
% of revenues Q1 2015 |
Q1 2015 / Q1 2014 |
|
| Consulting services | 4% | 4% | 3.1% |
| Local Professional Services (Sogeti) | 15% | 15% | 0.5% |
| Application services | 56% | 57% | 4.6% |
| Other managed services | 25% | 24% | -5.1% |
Utilization rates (%):
| Q1 2014 |
Q2 2014 |
Q3 2014 |
Q4 2014 |
Q1 2015 |
|
| Consulting services | 65% | 69% | 64% | 70% | 71% |
| Local Professional Services (Sogeti) | 81% | 82% | 82% | 82% | 81% |
| Application services | 81% | 82% | 82% | 82% | 82% |
