Capgemini Se · EURONEXT:CAP
Capgemini — Capgemini Se Ord — H1 2022 Earnings Presentation
41 slides from Capgemini's earnings presentation, Oct 27, 2022
Slide 1: H1 2022 Results
H1 2022 RESULTS JULY 28, 2022 Capgomini@
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: Strong Momentum
STRONG MOMENTUM REVENUES BOOKINGS BOOK-TO-BILL +18.5% € 10,688M cc YoY € 11,607M 1.09 +19.3% Q2 cc YoY +22% cc YoY 1.11 Q2 OPERATING MARGIN NORMALIZED EPS ORGANIC FCF 12.2% € 4.87 € 193M +0.2pts YoY +36% YoY H1 2022 Results | July 28th, 2022 All numbers are H1 except stated otherwise © Capgemini 202
Slide 5: H1 Acceleration Visible Across the Board
H1 ACCELERATION VISIBLE ACROSS THE BOARD BUSINESSES SECTORS UK & Ireland North America +23% Strategy & Transformation Services +17% France Q2 +24% +30% +28% Q2 +17% +13% Rest of Europe Applications & Consumer Q2 +15% Technology Goods & Retail +17% Asia Pacific +21% +24% Q2 +18% & Latin America +42%
Slide 6: Positioned for Continuous Growth
POSITIONED FOR CONTINUOUS GROWTH • Increasing share of wallet for technology STRUCTURAL • Clients digital transformation running at +15.8% MARKET full speed cc growth LTM • Leadership in Intelligent DEMAND Industry • Solid large deals pipeline • Cloud, Data & AI everywhere • Industry focused solutio
Slide 7: Equipped for Market Evolution
EQUIPPED FOR MARKET EVOLUTION H1 2022 Results | July 28th, 2022 © Capgemini 2022. All rights reserved | 7
Slide 8: Accelerating with Our Clients on Sustainability, Net Zero 2040
ACCELERATING WITH OUR CLIENTS ON SUSTAINABILITY BEST-IN-CLASS STRONG BUSINESS WE LIVE OFFERINGS LIVE ACCELERATION IN H1 SUSTAINABILITY SUSTAINABILITY CAMPUS COMMIT NET NEW launched in Q2 BUSINESS ZERO MODELS 40% STRATEGY clients penetrated talent upskilled by end 2022 ACT GREEN CORE SUSTAINABLE SUST
Slide 9: 2022 Outlook
2022 OUTLOOK REVENUE GROWTH OPERATING MARGIN ORGANIC FCF +14% 12.9% above to +15% to 13.1% €1,700M PREVIOUSLY +8% to +10% At constant exchange rates Inorganic contribution around 1.5 points H1 2022 Results | July 28th, 2022 © Capgemini 2022. All rights reserved | 9
Slide 10: Olivier Sevillia, Chief Operating Officer
Olivier SEVILLIA Chief Operating Officer
Slide 11: Reaping the Benefits of Our Go-to-Market Strategy
REAPING THE BENEFITS OF OUR GO-TO-MARKET STRATEGY SECTOR GROWTH Focused Industry Approach H1 Q2 Large Accounts Centricity Financial Services +14.4% +16.6% CXO Intimacy Energy & Utilities +7.3% +8.6% Manufacturing +22.3% +23.3% Proactive Deal Shaping Consumer Goods & Retail +23.5% +23.1% Publ
Slide 12: Focused to Deliver Strong Business Value to CXOs
FOCUSED TO DELIVER STRONG BUSINESS VALUE TO CXOS INTELLIGENT GLOBAL AUTOMOTIVE US MEDTECH Digital cockpit Connected lab Product re-engineering Advanced metering infrastructure, INDUSTRY systems and software ecosystems and Transformation Next Gen Grid & Edge compute CUSTOMER EUROPEAN RAILWAYS APAC IN
Slide 13: Carole Ferrand, Chief Financial Officer
Carole FERRAND Chief Financial Officer
Slide 14: Financial Overview
FINANCIAL OVERVIEW Constant ▐ in EUR millions H1 2021 H1 2022 Variation Currency Growth Revenues 8,711 10,688 +22.7% +18.5% Operating expenses -7,669 -9,387 Operating margin 1,042 1,301 +25% (in % of revenues) 12.0% 12.2% +0.2pts Other operating income and expenses -230 -233 Operating profit 812 1,0
Slide 15: Quarterly Revenue Growth
QUARTERLY REVENUE GROWTH ▐ Revenues in EUR millions Constant currency growth 5,521 5,167 Q2: +19.3% YoY 4,897 4,552 H1: +18.5% YoY 4,440 4,271 Q1 2022 Q2 2022 H1 2022 Year-on-Year Organic +16.3% +18.1% +17.2% Group scope +1.4pts +1.2pt +1.3pts Constant Currency +17.7% +19.3% +18.5% Currencies +3.3pt
Slide 16: Q2 & H1 2022 Revenues by Region
Q2 & H1 2022 REVENUES BY REGION Q2 2022 H1 2021 H1 2022 Variation APAC & LATAM Year-on-Year Revenues Year-on-Year UK & North America Ireland 9% Constant Constant (in €m) (in €m) Reported Currency Currency 12% 30% North America +16.7% 2,478 3,170 +27.9% +16.8% UK & Ireland +24.1% 1,018 1,287 +26.4% +
Slide 17: Q2 & H1 2022 Revenues by Business
Q2 & H1 2022 REVENUES BY BUSINESS Strategy & Total Revenues Operations & Transformation Engineering 8% H1 2021 H1 2022 H1 2022 Total Revenues Year-on-Year 29% Constant (in % of Group Revenues) Currency H1 Strategy & Transformation 7% 8% +29.7% 2022 Applications & Technology 62% 63% +21.1% Operations
Slide 18: Headcount Evolution
HEADCOUNT EVOLUTION Headcount Evolution Attrition +18,000 +22% +44,600 June 2021 June 2022 Attrition Variation LTM LTM Strategy & Transformation 16.7% 22.8% +6.1pts 289,500 352,100 Applications & Technology 14.9% 27.5% +12.6pts Operations & Engineering 15.4% 26.7% +11.3pts TOTAL 15.2% 27.0% +11.8pts
Slide 19: Operating Margin by Regions
OPERATING MARGIN BY REGIONS H1 2021 H1 2022 Operating Operating Revenues Revenues Margin Margin (in €m) (in €m) (%) (in €m) (in €m) (%) North America 2,478 389 15.7% 3,170 490 15.5% UK & Ireland 1,018 179 17.6% 1,287 237 18.4% France 1,872 141 7.5% 2,113 226 10.7% Rest of Europe 2,710 312 11.5% 3,16
Slide 20: Operating Margin Analysis
OPERATING MARGIN ANALYSIS ▐ in EUR millions H1 2021 H1 2022 Revenues 8,711 10,688 Cost of services rendered -6,417 -7,895 in % of revenues -73.7% -73.8% Gross margin 2,294 2,793 in % of revenues 26.3% 26.2% Selling expenses -584 -727 in % of revenues -6.7% -6.8% General & Administrative expenses -66
Slide 21: Net Financial Expense and Income Tax
NET FINANCIAL EXPENSE AND INCOME TAX ▐ in EUR millions H1 2021 H1 2022 Interest on bonds -70 -64 Other interest income and expense 11 18 Net interest expense -59 -46 Other financial income & expenses -26 -25 Net financial expense -85 -71 ▐ in EUR millions H1 2021 H1 2022 Income tax -282 -327 Effecti
Slide 22: Net Profit Analysis
NET PROFIT ANALYSIS ▐ in EUR millions H1 2021 H1 2022 Operating margin 1,042 1,301 Other operating income and expenses -230 -233 of which _Restructuring costs -40 -24 _Amortization of intangible assets acquired through business combinations -59 -68 _ Acquisition and integration costs -64 -43 _Expens
Slide 23: Organic Free Cash Flow Generation
ORGANIC FREE CASH FLOW GENERATION ▐ in EUR millions 1,873 1,288 Net debt 1,080 1,160 1,119 1,071 €4.1bn as at June 30, 2022 815 vs. €3.2bn as at Dec 31, 2021 429 64 31 11 106 193 90 -86 H1 FY H1 FY H1 FY H1 FY H1 FY H1 FY H1 FY H1 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021 2021
Slide 24: Q&A
Q&A Aiman EZZAT Olivier SEVILLIA Carole FERRAND Chief Executive Officer Chief Operating Officer Chief Financial Officer
Slide 25: Appendix
APPENDIX Papaomini@
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 NET DEBT 12/2021 -3,224 -157 NET DEBT +276 -104 06/2022 -4,094 -827 +1,301 -74 -145 -77 +19
Slide 28: Net Cash Evolution
NET CASH EVOLUTION ▐ in EUR millions H1 2021 H1 2022 Profit for the period 444 668 Depreciation, amortization and impairment of fixed assets and right-of-use 328 356 Change in provisions -93 -18 Losses on disposals of assets and others 8 13 Net finance costs 59 46 Income tax expense / (income) 282 3
Slide 29: Bookings Evolution
BOOKINGS EVOLUTION ▐ in EUR million (at reported rates) 6,134 5,726 5,473 4,927 4,608 4,201 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 ▐ Constant currency growth YOY (in %) +27.3% +14.3% +15.0% +10.3% +26.5% +18.8% H1 2022 Results | July 28th, 2022 © Capgemini 2022. All rights reserved | 29
Slide 30: Revenue Quarterly Evolution
REVENUE QUARTERLY EVOLUTION Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Revenues (in €m) 4,271 4,440 4,552 4,897 5,167 5,521 Year-on-Year organic growth +1.7% +12.9% +13.2% +13.2% +16.3% +18.1% Year-on-Year CC growth +24.2% +12.4% +12.9% +12.5% +17.7% +19.3% Year-on-Year CC growth by Region Nort
Slide 31: Q2 2022 Revenues by Regions
Q2 2022 REVENUES BY REGIONS APAC & LATAM Q2 2021 Q2 2022 Variation Revenues Year-on-Year North America Constant UK & (in €m) (in €m) Reported Ireland 9% Currency North America 1,271 1,661 +30.7% +16.7% 12% 30% UK & Ireland 516 652 +26.2% +24.1% France 941 1,078 +14.6% +14.5% Q2 Rest of Europe 1,374
Slide 32: Q2 & H1 2022 Revenues by Sector
Q2 & H1 2022 REVENUES BY SECTOR Q2 2022 H1 2022 Services Energy Year-on-Year Year-on-Year & Utilities Constant Constant Manufacturing 5% Currency Currency 8% Consumer Goods Financial Services +16.6% +14.4% 26% & Retail Energy & Utilities +8.6% +7.3% 13% Manufacturing +23.3% +22.3% H1 Consumer Goods
Slide 33: Q2 Revenue Mix by Sector / Business
Q2 REVENUE MIX BY SECTOR / BUSINESS Revenues By Sector Revenues By Business (in % of Group Revenues) (in % of Total Revenues) Services Energy Strategy & & Utilities Transformation 5% Operations & 8% Manufacturing Engineering 8% 26% Consumer Goods 29% & Retail 13% Q2 Q2 2022 2022 12% 22% Telco, Media
Slide 34: Operating Margin – Analysis by Type of Costs
OPERATING MARGIN – ANALYSIS BY TYPE OF COSTS ▐ in EUR millions H1 2021 H1 2022 Revenues 8,711 10,688 Personnel costs -6,034 -7,420 in % of revenues -69.3% -69.4% Purchases and subcontracting expenses -1,187 -1,444 in % of revenues -13.6% -13.5% Travel expenses -47 -109 in % of revenues -0.5% -1.0% R
Slide 35: Offshore Leverage Evolution
OFFSHORE LEVERAGE EVOLUTION 58% 57% 58% 58% 59% 56% 57% 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 Mar. 22 Jun. 22 H1 2022 Results | July 28th, 2022 © Capgemini 2022. All
Slide 36: Utilization Rates Evolution
UTILIZATION RATES EVOLUTION Strategy & Transformation Applications & Technology 83% 84% 82% 79% 79% 80% 75% 73% 73% 72% 69% 69% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 H1 2022 Results | July 28th, 2022 © Capgemini 2022. All rights reserved | 36
Slide 37: Balance Sheet
BALANCE SHEET ASSETS EQUITY & LIABILITIES June 30, Dec. 31, June 30, June 30, Dec. 31, June 30, ▐ in EUR millions 2021 2021 2022 ▐ in EUR millions 2021 2021 2022 Equity (1) 6,681 8,467 8,938 Non-controlling interests 11 12 15 Total equity 6,692 8,479 8,953 Goodwill 10,096 10,633 11,087 Long-term bor
Slide 38: Cash Flow Statement
CASH FLOW ▐ in EUR millions H1 2021 H1 2022 STATEMENT Profit for the period attributable to owners of the Company Non-controlling interests 443 1 667 1 Depreciation, amortization and impairment of fixed assets and Lease right-of-use assets 328 356 Change in provisions -93 -18 Losses on disposals of
Slide 39: Comprehensive Income & Change in Equity
COMPREHENSIVE INCOME & CHANGE IN EQUITY ▐ in EUR millions H1 2021 H1 2022 Actuarial gains and losses on defined benefit pension plans, net of tax (1) 198 247 Remeasurement of hedging derivatives and net investment, net of tax (2) 42 -18 Translation adjustments (2) 210 423 OTHER ITEMS OF COMPREHENSIV
Slide 40: Bond Debt Maturity Profile
BOND DEBT MATURITY PROFILE ▐ in EUR millions 1,200 1,000 , 1,000 , 800 800 800 600 500 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 (Jul.) (Oct.) (June) (Apr.) (Apr.) (Apr.) (June) (Apr.) Notes issued prior to 2020 Notes issued in April 2020 Notes issued in June 2020 H1 2022 Results | July 28th
Slide 41: About Capgemini
About Capgemini Biraud, Vincent Massoni, Patrick Head of Investor Relations Senior Manager, Investor Relations Capgemini is a global leader in partnering with companies to transform and manage their business by harnessing the power of technology. The Group is guided everyday by its purpose of +33 1