Capita Plc · LSE:CPI
Capita — H1 2025 Earnings Presentation
51 slides from Capita's earnings presentation, August 2025
Slide 1: 2025 Half Year Results
2025 Half Year Results August 2025
Slide 2: H1 2025 results video
H1 2025 results video To view this video online please visit: https://capita.wistia.com/medias/kemzfjyvj7 2
Slide 3: CEO Adolfo Hernandez
CEO Adolfo Hernandez 3
Slide 4: Disclaimer
Disclaimer This presentation and any oral information or accompanying materials provided in looking statements and/or forecasts contained in the Materials. No representation or connection with it (together, the “Materials”) have been prepared solely for informational warranty is made that any of the
Slide 5: Recapping our strategic themes: a better Capita
Recapping our strategic themes: a better Capita Technology Efficiencies Delivery Company Improved Clarity on Workforce Delivering value to financial what Capita equipped for customers, employees performance is famous for change and shareholders Positive operational momentum across our key strategic
Slide 6: Our vision
Our vision The trusted outsourcing partner, innovating to deliver quality services by combining the best people, AI, and technology to drive superior results and create outstanding experiences for our customers 1 Our strategic Technology Efficiencies Delivery Company pillars 2 Cost Sales Product and
Slide 7: H1 2025 Summary
H1 2025 Summary Improving operational momentum, conviction in delivery of H2 financial performance • Launch of Capita AI • Step change in • £4.4bn unweighted • 15% average Catalyst Lab, delivering customer interest handling time Technology efficiencies and innovative in AI/agentic AI pipeline higher
Slide 8: Financial Review: 2025 Half Year Performance
Financial Review 2025 Half Year Performance All figures included within this presentation are on an adjusted basis unless otherwise stated CFO Pablo Andres 8
Slide 9: Financial highlights
Financial highlights £m HY25 HY24 Change Improvement in operating Revenue 1,154.8 1,198.6 (3.7)% and free cash flow Operating profit 42.6 54.5 (21.8)% Revenue decline primarily due to Contact Centre declines Operating margin 3.7% 4.5% (80)bps more than offsetting good performance in Capita Public Se
Slide 10: Adjusted to reported reconciliation
Adjusted to reported reconciliation Reported loss reflects cost of £m HY25 HY24 Change the cost reduction programme Adjusted profit before tax 22.6 31.9 (9.3) Business exits include the Group’s Mortgage Business exits (7.3) 36.4 (43.7) Services business and costs related to business exits. HY24 cred
Slide 11: Capita Public Service
Capita Public Service Strong growth in revenue and margin £m HY25 HY24 Change Revenue 711.8 685.6 3.8% Revenue Operating EBITDA and Operating profit 57.2 47.4 20.7% +3.8% margin 8.0% cash conversion Benefit of Health Flow through of higher Flow through of Operating margin 8.0% 6.9% +110bps Assessmen
Slide 12: Capita Public Service (62% Group revenues)
Capita Public Service (62% Group revenues) Achievements in H1 2025… Execution Growth Delivery Efficiency Technology Royal Navy School of Phase one of new Implemented operating Built capabilities Several examples from Maritime Engineering operating model model to improve services team Capita AI Catal
Slide 13: Capita Experience – Contact Centre
Capita Experience – Contact Centre £m HY25 HY24 Change Positive impact of cost savings programme offset by continued revenue headwinds Revenue 277.4 346.2 (19.9)% Revenue Operating loss EBITDA and Operating loss (11.4) 1.1 n/a (19.9)% £11.4m cash conversion Operating margin (4.1)% 0.3% (440)bps Reve
Slide 14: Contact Centre (24% Group revenues)
Contact Centre (24% Group revenues) Achievements in H1 2025… Execution Growth Delivery Efficiency Technology Leaner delivery model Launched nine 800 FTE across 4 clients AI-driven gamification AI solutions used by 30 introduced offerings targeting transferred to global with Centrical across clients,
Slide 15: Capita Experience – Pension Solutions
Capita Experience – Pension Solutions Stable revenue, operating profit impacted by £m HY25 HY24 Change lower interest rates Revenue 86.1 86.4 (0.3)% Revenue Operating margin EBITDA and Operating profit 9.7 11.4 (14.9)% (0.3)% 11.3% cash conversion Operating margin 11.3% 13.2% (190)bps Broadly in lin
Slide 16: Pension Solutions (7% Group revenues)
Pension Solutions (7% Group revenues) Achievements in H1 2025… Execution Growth Delivery Efficiency Technology Key contract £0.5bn orderbook until Successful proof of Operational efficiencies Collaborating with renewed with large end of 2035 concept of automating delivered Microsoft Gold Partner on
Slide 17: Capita Experience – Regulated Services
Capita Experience – Regulated Services £m HY25 HY24 Change Continued progress on exits Revenue 79.5 80.4 (1.1)% Operating profit 2.5 12.6 (80.2)% Revenue Operating profit EBITDA and cash Operating margin 3.1% 15.7% (1260)bps (1.1)% (80.2)% conversion Reflects previously Flow through of contract Impr
Slide 18: Cash flow
Cash flow £m HY25 HY24 Good cash conversion EBITDA 80.2 102.4 Net of deferred income and CFA 56.7 40.3 Net of deferred income and CFA reflects the timing of cash receipts on two major contracts and the non-recurrence of several Other working capital (including AR and AP) (68.5) (71.5) one-off deferr
Slide 19: Cash flow and net debt movement
Cash flow and net debt movement £m HY25 HY24 Improved free cash flow performance Cash generated from operations 35.5 18.4 excluding business exits Capital expenditure reflects investment in our contract delivery with Net capital expenditure (15.2) (21.2) new technology solutions and cyber capabiliti
Slide 20: Liquidity & net debt
Liquidity & net debt Strong liquidity position £m HY25 FY24 RCF extended in July to 31 December 2027 and Revolving credit facility (RCF) 250.0 250.0 amended to include a £50m accordion option, undrawn Less: drawing on committed facilities - - at half year (HY24: undrawn) Available committed faciliti
Slide 21: 2025 outlook – Group outlook unchanged
2025 outlook – Group outlook unchanged • Group: expect revenue to be broadly flat overall, based on following expected movements: o Public Service: guidance upgraded to mid-single digit revenue growth driven by annualised benefit of new contracts and strong H1 performance Revenue o Contact Centre: m
Slide 22: CEO Adolfo Hernandez
CEO Adolfo Hernandez 22
Slide 23: Market Backdrop: AI creating new opportunities
Market Backdrop: AI creating new opportunities c.£50bn c.£55bn c.£10bn AI driving disruption in public and private sectors c.£30bn 2025 2027 c.£40bn Services not AI-enabled c.£25bn AI-enabled services AI-enabled services as share of total European BPO market1 • Growing technology and AI adoption req
Slide 24: Our service line positioning
Our service line positioning Star Positions Transformation Potential Manage for Value • Repeat and expand • Tech-enablement & • Optimising delivery Actions/ positions/win share automation • Delivery through partners Options: • Continued focus on • Partner with • Radical transformation operational ex
Slide 25: Progress with Manage for Value
Progress with Manage for Value Manage for Value Status Implementation Capita One disposal completed in September Standalone Software 2024, c. £180m net disposal proceeds achieved Sale announced December 2024, completion Mortgages expected Q3 2025 In progress Adopting AWS Cloud WAN and Software Defin
Slide 26: Agentic AI: an enabler of efficiency and growth
Agentic AI: an enabler of efficiency and growth Predictive AI Generative AI Autonomous & Agentic AI Perform specific tasks Human-like ability to Human-like ability to plan tasks and by learning from data, create new variations What does this perform actions by selecting and e.g. to predict values or
Slide 27: Where we are playing in the emerging AI value chain
Where we are playing in the emerging AI value chain Agents • Mapping customer business processes • Use best-available Agentic delivery if possible BPO processes • Recruit, develop & manage humans in the loop • Provide security, data and governance • Deliver a managed outcome Governance ~$280bn Appli
Slide 28: Real opportunity to extend use of AI across Capita
Real opportunity to extend use of AI across Capita Capita starting to harness AI to orchestrate …with human-in-the-loop workflows end-to-end… essential Capita Public Services Capita Experience (Contact Centre and Pension Solutions) Humans can override for Front Front Input Human sensitive decisions
Slide 29: AI in the Front/Middle/Back Office examples
AI in the Front/Middle/Back Office examples Front Office Middle Office Back Office AgentSuite now live on six Discount verification system Appian aged debt tool clients, driving reductions in for Transport for London’s helping councils collect aged handling time and improved new tolling scheme, Coun
Slide 30: Significant opportunity for AI in Capita's future
Significant opportunity for AI in Capita's future Repeatable offerings Lower costs Reduce manual work Win more Automate Data Better colleague experience Improved productivity Profitable growth Built on a foundational layer of our process knowledge, our colleagues’ expertise and our hyperscaler partn
Slide 31: BETTER Technology: Building our hyperscaler relationships
BETTER Technology Building our hyperscaler relationships Achievements Looking to date… forwards… Over 260,000 monthly Copilot actions in July (up from Continue ServiceNow deployment Co-develop AI enabled BPO 150,000 in June), reduces manual effort, improves focusing on agentic AI across products for
Slide 32: Capita AI Catalyst Lab
BETTER Technology Capita AI Catalyst Lab The Capita AI Catalyst Lab has initiated deep dive into 12 workflow areas including: Example: AI Automated Recruitment - customer service - knowledge management Moved from concept to live deployment Comprehensive data audit capabilities - training within a sh
Slide 33: Capita AI Catalyst Lab – Agentic AI proof of concepts examples
BETTER Technology Capita AI Catalyst Lab – Agentic AI proof of concepts examples Multi-Agent Orchestration AI in the Field Multi-Agent Front Office AI Assessments and Quality Review Agent for Fire Risk Customer Service Assessment (CPS Customer) (Fire Service College) Productivity (Pensions) • Multi-
Slide 34: BETTER Efficiencies: Continued progress on cost savings
BETTER Efficiencies Continued progress on cost savings • On track to deliver £250m annualised savings by December 2025 £205m • Expect total cash costs to achieve savings annualised savings across 2025 of £55m at 31 July 2025 • £22m cash costs to achieve in first half £160m • Savings creating space f
Slide 35: How does AI help drive and embed cost efficiencies and culture?
BETTER Efficiencies How does AI help drive and embed cost efficiencies and culture? Fixing the basics: Priorities for H2: • New EOS platform investment is • Process mapping, review and eliminating manual order automation processing • Acceleration of Agentic AI deployment • Improving our shared servi
Slide 36: BETTER Delivery: Improving on Sales Effectiveness
BETTER Delivery Improving on Sales Effectiveness Total contract value secured in H1 Capita Public Service Contact Centre Pension Solutions up 17% at £1,044m Opportunities Win rate across all won in H1 opportunities increased to 2025 including 77% up from 48% H1 2024 Unweighted pipeline with higher t
Slide 37: BETTER Company
BETTER Company Customer first, always Fearless innovation +10 point We prioritise our customers We love bold ideas and improvement Employee net promoter in everything we do, adopt the best solutions to score in H1 25 versus FY24 working hard to exceed continuously improve, their expectations with wo
Slide 38: People vs Digital Agents
BETTER Company People vs Digital Agents Understand Analyse Report Create Search Enrich Our human in the loop concept is a key part of our transformation: Decide Execute • For all of our internal projects and contract portfolio Digital Agents • Improving customer outcomes by using best resource for t
Slide 39: Responsible and Ethical AI
BETTER Company Responsible and Ethical AI Our AI commitments: Our Generative AI oversight Committee ensures human Uphold human governance and safety overview of critical decisions and we are providing continuous training on the responsible use of AI Protect privacy and fairness We are a trusted All
Slide 40: Recapping – our waves of change as we adapt to changing markets
Recapping – our waves of change as we adapt to changing markets Impact Invest in Future Growth Innovation & through Agentic AI Ways of working Cost to launch and scale Transform way BPO operates in public and private sector transformation solutions Trusted sovereign partner to to fund the journey La
Slide 41: H1 summary and H2 priorities: Reiterating Medium-term
H1 summary and H2 priorities: H1 Summary: H2 Priorities: • Growing engagement from clients in AI solutions • Improving financial performance in Contact Centre • Strong in growing markets and in which Capita • Resolving remaining Manage for Value businesses has a right to win • Focus on delivering re
Slide 42: Q&A
Q&A 42
Slide 43: Appendix
Appendix
Slide 44: 2025 modelling assumptions
2025 modelling assumptions (unchanged from previous assumptions) Depreciation & amortisation Broadly in line with 2024. Total charge c.3.5% of revenue P&L interest Broadly in line with 2024 Working capital Reduced working capital outflow Non-cash and other adjustments Broadly in line with 2024 Cash
Slide 45: Divisional overview
Divisional overview £m Public Service Contact Centre Pension Solutions Regulated Services plc costs Group HY25 HY24 HY25 HY24 HY25 HY24 HY25 HY24 HY25 HY24 HY25 HY24 Revenue 711.8 685.6 277.4 346.2 86.1 86.4 79.5 80.4 - - 1,154.8 1,198.6 Operating 57.2 47.4 (11.4) 1.1 9.7 11.4 2.5 12.6 (15.4) (18.0)
Slide 46: Leading indicators on journey to reaching medium-term targets
Leading indicators on journey to reaching medium-term targets – further update to be provided at FY25 results Leading Indicators FY24 FY23 Group and divisional overheads as a percentage of revenue 10.5% 10.7% Percentage of overall adjusted revenue from contracts where gen AI has been deployed 8.3% N
Slide 47: Revenue bridge by driver
Revenue bridge by driver £m 1,300.0 1,250.0 1,200.0 1,198.6 (37.8) 1,150.0 (14.1) 15.0 1,154.8 77.0 1,100.0 (72.8) (11.1) 1,050.0 1,000.0 950.0 900.0 850.0 800.0 Telecommunications Losses Wins HY25 vertical HY24 Contract exits Scope & Volume Indexation in Regulated Services 47
Slide 48: Order book bridge
Order book1 bridge Relevant to approximately 76% £m of revenue base 4,500 4,240.7 (26.4) Additions in 2025 include renewals with the 4,000 658.1 4,031.9 Education Authority Northern Ireland, Primary Care (840.5) 3,500 Support England, and expanded scope on our Royal Navy Training contract, all withi
Slide 49: Five key market trends impacting the customer experience landscape
We are actively responding against five key market trends that are impacting the overall customer experience (CX) landscape – technology key to address these changing needs Capita’s Response to Key Trends Capita’s Activities to Address Trend Technology Offshoring Talent Commentary Offshore penetrati
Slide 50: Capita's innovative customer experience AI tools
Hence over the last 18 months we have been deploying a range of innovative AI technology and tooling to support transforming our service delivery Overview of Capita’s Innovative customer experience AI Tools Benefits Overview Higher Lower Examples Sales Fewer Lower Lower AHT FCR & Training Uplift Cal
Slide 51: Glossary of terms
Glossary of terms Term Definition Book to bill This is the ratio of TCV sold in the year / external revenue Operating cash conversion Calculated as operating cash flow excluding business exits divided by adjusted EBITDA Win rate Win rate is the proportion by value of contracts won as a proportion of