Capgemini Se · EURONEXT:CAP
Capgemini — Capgemini Se Ord — H1 2024 Earnings Presentation
40 slides from Capgemini's earnings presentation, Jul 26, 2024
Slide 1: H1 2024 Results
H1 2024 Results July 26, 2024 Capgemini®
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements. Such statements may include projections, estimates, assumptions, statements regarding plans, objectives, intentions and/or expectations with respect to future financial results, events, operations and services and product developme
Slide 3: Aiman Ezzat, Chief Executive Officer
Aiman EZZAT Chief Executive Officer
Slide 4: Resilient performance in H1
Resilient performance in H1 REVENUES BOOKINGS BOOK-TO-BILL -2.6% cc YoY € 11,793m 1.06 € 11,138m € 6,138m Q2 1.09 Q2 OPERATING MARGIN NORMALIZED EPS ORGANIC FCF 12.4% € 5.88 € 163m € 1,384m +1% YoY + € 216m YoY H1 2024 Results | July 26, 2024 All numbers are H1 except stated otherwise © Capgemini 20
Slide 5: Q2 is better than Q1 across businesses, geographies and sectors
Q2 is better than Q1 across businesses, geographies and sectors BUSINESSES SECTORS UK & Ireland Strategy & Public North America -2.8% Transformation Sector -5.4% France Q1 : -3.2% Q2 : -2.5% +2.7% +3.0% Q1 : -7.1% Q1 : +1.6% Q1 : +2.4% Q2 : -3.7% -2.7% Rest of Europe Q2 : +3.7% Q2 : +3.6% Q1 : -2.8%
Slide 6: 2024 Outlook
2024 Outlook REVENUE GROWTH OPERATING MARGIN ORGANIC FCF -0.5% 13.3% around to -1.5% to 13.6% € 1.9 bn at constant exchange rates PREVIOUSLY 0% to +3% Inorganic contribution of around 0.5 point (was from a marginal impact up to 1 point) H1 2024 Results | July 26, 2024 © Capgemini 2024. All rights re
Slide 7: Fully leveraging Generative AI opportunity
Fully leveraging Generative AI opportunity CATALYSING TRANSFORMATION CREATING VALUE WITH GEN AI FOR OUR CLIENTS Delivering > 350 in flight projects projects EUROPEAN GLOBAL TELECOMMUNICATION LIFE SCIENCES at scale > 2,000 qualified opportunities GenAI assistants for Customer GenAI for Cloud and GenA
Slide 8: Well positioned to capture growth opportunities
Well positioned to capture growth opportunities RECOGNIZED BY OUR ECOSYSTEM OF PARTNERS INTELLIGENT CLOUD INDUSTRY AI DATA GENERATIVE AI RECOGNIZED AS A LEADER BY THE ANALYSTS ACROSS BUSINESSES AND INDUSTRIES DIGITAL SUSTAINABILITY CORE H1 2024 Results | July 26, 2024 © Capgemini 2024. All rights re
Slide 9: Olivier Sevillia, Chief Operating Officer
Olivier SEVILLIA Chief Operating Officer
Slide 10: Q2 & H1 2024 Revenues by Sector
Q2 & H1 2024 Revenues by Sector Q2 2024 H1 2024 Energy Services Year-on-Year Year-on-Year & Utilities Constant Constant Manufacturing Currency Currency Telco, Media 5% & Technology 8% Financial Services -5.4% -6.3% 27% Energy & Utilities +0.9% +1.7% 11% Manufacturing -1.1% -1.3% H1 Consumer Goods &
Slide 11: Bookings Evolution
Bookings Evolution QUARTERLY HALF-YEAR Book to Bill 1.06 1.11 0.98 1.16 1.02 1.07 0.96 1.18 1.02 1.09 Book to Bill 1.01 1.03 1.05 1.09 1.05 1.06 ▐ in EUR billion (at reported rates) 2022 2023 2024 H1 2024 Results | July 26, 2024 © Capgemini 2024. All rights reserved | 11
Slide 12: Generating Value for Our Clients
GENERATING VALUE FOR OUR CLIENTS DATA & AI CLOUD JAPAN US GERMAN CANADA GLOBAL INTELLIGENT LIFE SCIENCES AEROSPACE AUTOMOTIVE UTILITY HIGH-TECH INDUSTRY Product Sustenance & Cloud-based supply Engineering process RFID-based Data & Platform Satellite data processing Robotics Automation chain efficien
Slide 13: Nive Bhagat, Chief Financial Officer
Nive BHAGAT Chief Financial Officer
Slide 14: Financial Overview
Financial Overview Constant ▐ in EUR millions H1 2023 H1 2024 Variation Currency Growth Revenues 11,426 11,138 -2.5% -2.6% Operating expenses -10,013 -9,754 Operating margin 1,413 1,384 -2% (in % of revenues) 12.4% 12.4% +0 bp Other operating income and expenses -262 -237 Operating profit 1,151 1,14
Slide 15: Quarterly Revenue Growth
Quarterly Revenue Growth ▐ Revenues in EUR millions Constant currency growth 5,729 5,697 5,616 5,611 5,480 5,527 Q2: -1.9% YoY H1: -2.6% YoY Q1 2024 Q2 2024 H1 2024 Year-on-Year Organic -3.6% -2.3% -3.0% Group scope +0.3pts +0.4pts +0.4pts Constant Currency -3.3% -1.9% -2.6% Currencies -0.2pts +0.4p
Slide 16: Q2 & H1 2024 Revenues by Region
Q2 & H1 2024 Revenues by Region Variation APAC & LATAM Q2 2024 H1 2023 H1 2024 Year-on-Year Revenues Year-on-Year Rest of Europe UK & 9% Constant Constant Ireland (in €m) (in €m) Reported Currency Currency 12% 31% North America 1,581 3,288 3,108 -5.5% -5.4% UK & Ireland 696 1,386 1,380 -0.4% -2.8% H
Slide 17: Q2 & H1 2024 Revenues by Business
Q2 & H1 2024 Revenues by Business Total Revenues Strategy & Transformation Operations & Engineering 9% Q2 2024 H1 2024 Year-on-Year Year-on-Year 29% Constant Constant Currency Currency H1 Strategy & Transformation +3.7% +2.7% 2024 Applications & Technology -2.9% -3.4% Operations & Engineering -0.5%
Slide 18: Headcount Evolution
Headcount Evolution Headcount evolution Attrition -8,700 -4% -3,900 June 2023 June 2024 Attrition Variation LTM LTM Strategy & Transformation 18.2% 13.9% -4.3pts 349,500 336,900 Applications & Technology 19.5% 14.2% -5.3pts Operations & Engineering 23.3% 16.9% -6.4pts TOTAL 20.9% 15.2% -5.7pts Workf
Slide 19: Operating Margin by Region
Operating Margin by Region H1 2023 H1 2024 Operating Operating Revenues Revenues Margin Margin (in €m) (in €m) (%) (in €m) (in €m) (%) North America 3,288 500 15.2% 3,108 481 15.5% UK & Ireland 1,386 255 18.4% 1,380 282 20.5% France 2,308 257 11.1% 2,245 205 9.1% Rest of Europe 3,472 365 10.5% 3,470
Slide 20: Operating Margin Analysis
Operating Margin Analysis ▐ in EUR millions H1 2023 H1 2024 Revenues 11,426 11,138 Cost of services rendered -8,438 -8,164 in % of revenues -73.8% -73.3% Gross margin 2,988 2,974 in % of revenues 26.2% 26.7% Selling expenses -803 -824 in % of revenues -7.0% -7.4% General & Administrative expenses -7
Slide 21: Net Financial Result and Income Tax
Net Financial Result and Income Tax ▐ in EUR millions H1 2023 H1 2024 Interest on bonds -63 -51 Other interest income and expense 73 87 Net interest expense 10 36 Other financial income and expenses -32 -16 Net financial income / expense -22 20 ▐ in EUR millions H1 2023 H1 2024 Income tax -313 -326
Slide 22: Net Profit Analysis
Net Profit Analysis ▐ in EUR millions H1 2023 H1 2024 Operating margin 1,413 1,384 Other operating income and expenses -262 -237 of which _Restructuring costs -68 -53 _Amortization of intangible assets acquired through business combinations -63 -64 _ Acquisition and integration costs -29 -19 _Expens
Slide 23: Organic Free Cash Flow Generation
Organic Free Cash Flow Generation ▐ in EUR millions 1,963 Net Debt 1,873 1,852 €2.8bn as at June 30, 2024 1,288 1,160 1,119 1,080 vs. €2.0bn as at Dec 31, 2023 429 64 11 106 193 163 90 -53 H1 FY H1 FY H1 FY H1 FY H1 FY H1 FY H1 FY H1 2017 2017 2018 2018 2019 2019 2020 2020 2021 2021 2022 2022 2023 2
Slide 24: Q&A
Q&A Aiman EZZAT Olivier SEVILLIA Nive BHAGAT Chief Executive Officer Chief Operating Officer Chief Financial Officer
Slide 25: Appendix
Appendix Capgemini®
Slide 26: Alternate Performance Measures
Alternate Performance Measures ▐ Organic growth, or like-for-like growth, in revenues is the growth rate calculated at constant Group scope and exchange rates. The Group scope and exchange rates used are those for the published period. Exchange rates for the published period are also used to calcula
Slide 27: Net Cash Evolution
Net Cash Evolution ▐ in EUR millions Operating Amortization Lease debt Working Net Organic Returns to Tax paid Capex net Others margin & Provisions repayment capital Interests FCF shareholders M&A Others FX 0 +242 -144 -101 NET DEBT 12/2023 -2,047 -1,003 NET DEBT 06/2024 +1,384 -2,775 -14 -135 -66 +
Slide 28: Net Cash Evolution
Net Cash Evolution ▐ in EUR millions H1 2023 H1 2024 Profit for the period 812 838 Depreciation, amortization and impairment of fixed assets and right-of-use 345 339 Change in provisions -20 -45 Losses on disposals of assets and others 17 5 Net finance costs -10 -36 Income tax expense / (income) 313
Slide 29: Revenue Quarterly Evolution
Revenue Quarterly Evolution Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Revenues (in €m) 5,729 5,697 5,480 5,616 5,527 5,611 Year-on-Year organic growth +10.1% +4.7% +2.0% -0.9% -3.6% -2.3% Year-on-Year CC growth +10.7% +5.2% +2.3% -0.2% -3.3% -1.9% Year-on-Year CC growth by Region North America
Slide 30: Bookings Evolution
Bookings Evolution ▐ in EUR million (at reported rates) 6,643 6,101 6,138 5,867 5,655 5,275 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 ▐ Constant Currency Growth YOY (in %) +6.5% +1.2% +1.4% +1.7% -3.5% +0% H1 2024 Results | July 26, 2024 © Capgemini 2024. All rights reserved | 30
Slide 31: Q2 2024 Revenues by Region
Q2 2024 Revenues by Region APAC & LATAM Q2 2023 Q2 2024 Variation Revenues Year-on-Year Rest of Europe UK & Constant Ireland 9%5% (in €m) (in €m) Reported 8% Currency 12% 27% North America 1,625 1,581 -2.7% -3.7% 31% 11% UK & Ireland 700 696 -0.5% -2.5% Q2 France 1,145 1,114 -2.7% -2.7% 2024 13% 20%
Slide 32: Q2 2024 Revenue Mix by Sector / Business
Q2 2024 Revenue Mix by Sector / Business Revenues By Sector Revenues By Business (in % of Group Revenues) (in % of Total Revenues) Services Energy & Utilities Strategy & Transformation 5% Manufacturing Operations & 9% 8% Engineering 27% 29% Telco, Media & Technology 11% Q2 Q2 13% 2024 2024 21% 15% 6
Slide 33: Offshore Leverage Evolution
Offshore Leverage Evolution 57% 58% 57% 58% 58% 57% 57% 56% 54% 54% 47% 44% 40% 35% 37% 31% 28% 24% 13% Dec. 06 Dec. 07 Dec. 08 Dec. 09 Dec. 10 Dec. 11 Dec. 12 Dec. 13 Dec. 14 Dec. 15 Dec. 16 Dec. 17 Dec. 18 Dec. 19 Dec. 20 Dec. 21 Dec. 22 Dec. 23 Jun. 24 H1 2024 Results | July 26, 2024 © Capgemini
Slide 34: Utilization Rates Evolution
Utilization Rates Evolution Strategy & Transformation Applications & Technology 78% 79% 79% 80% 79% 80% 70% 69% 66% 68% 67% 67% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 H1 2024 Results | July 26, 2024 © Capgemini 2024. All rights reserved | 34
Slide 35: Operating Margin – Analysis by Nature of Costs
Operating Margin – Analysis by Nature of Costs ▐ in EUR millions H1 2023 H1 2024 Revenues 11,426 11,138 Personnel costs -7,969 -7,807 in % of revenues -69.7% -70.1% Purchases and subcontracting expenses -1,446 -1,403 in % of revenues -12.7% -12.6% Travel expenses -161 -145 in % of revenues -1.4% -1.
Slide 36: Balance Sheet
Balance Sheet ASSETS EQUITY & LIABILITIES June 30, Dec. 31, June 30, June 30, Dec. 31, June 30, ▐ in EUR millions ▐ in EUR millions 2023 2023 2024 2023 2023 2024 (1) Equity 10,063 10,454 10,843 Non-controlling interests 17 19 22 Total equity 10,080 10,473 10,865 Goodwill 10,955 11,213 11,357 Long-te
Slide 37: Cash Flow Statement
Cash Flow ▐ in EUR millions H1 2023 H1 2024 Statement Profit for the period attributable to owners of the Company 812 838 Depreciation, amortization and impairment of fixed assets and Lease right-of-use assets 345 339 Change in provisions -20 -45 Losses on disposals of assets and other 17 5 Expenses
Slide 38: Comprehensive Income & Change in Equity
Comprehensive Income & Change in Equity ▐ in EUR millions H1 2023 H1 2024 Actuarial gains and losses on defined benefit pension plans, net of tax (1) -5 71 Remeasurement of hedging derivatives and net investment, net of tax (2) 89 56 Translation adjustments (2) -102 229 Other, net of tax (1) 0 -1 OT
Slide 39: Bond Debt Maturity Profile
Bond Debt Maturity Profile ▐ in EUR millions 1,200 1,000 , 800 800 800 600 500 2024 2025 2026 2027 2028 2029 2030 2031 2032 (Oct.) (June) (Apr.) (Apr.) (Apr.) (June) (Apr.) H1 2024 Results | July 26, 2024 © Capgemini 2024. All rights reserved | 39
Slide 40: About Capgemini
About Capgemini Biraud, Vincent Massoni, Patrick Head of Investor Relations Senior Manager, Investor Relations Capgemini is a global business and technology transformation partner, helping organizations to accelerate their dual transition to a digital and sustainable world, while creating tangible i