Capgemini Se · EURONEXT:CAP
Capgemini — Capgemini Se Ord — FY 2023 Earnings Presentation
43 slides from Capgemini's earnings presentation, Feb 14, 2024
Slide 1: FY 2023 Results
FY 2023 Results February 14, 2024
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: Delivering another record performance in 2023
Delivering another record performance in 2023 REVENUES BOOKINGS OPERATING MARGIN € 22,522m € 23,887m 13.3% +4.4% cc YoY 1.06 Book to Bill +30bp ORGANIC FCF NORMALIZED EPS DIVIDEND PER SHARE € 1,963m € 12.44 € 3.40 + € 111m +8% +5% Full Year 2023 Results | February 14, 2024 © Capgemini 2024. All righ
Slide 5: Demonstrating resilience and agility in a challenging environment
Demonstrating resilience and agility in a challenging environment BUSINESSES SECTORS UK & Ireland North America +7.9% Strategy & Transformation Public Sector -1.3% France Q4 : +2.7% +8.6% +10.6% Q4 : -6.6% +6.1% Rest of Europe Q4 : +2.5% +7.6% Asia Pacific & Latin America Applications & Technology M
Slide 6: Reinforcing a strong ten-year dynamic
Reinforcing a strong ten-year dynamic REVENUES Revenues OPERATING MARGIN Operating Margin 25 14% 13.3% 12.9% 13.0% € billion 22.0 22.5 12.1% 12.3% 11.7% 11.9% 12% 11.5% 20 18.2 10.6% 15.8 10% 9.2% 15 14.1 12.8 13.2 12.5 11.9 8% 10.6 10 6% 5 4% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 2
Slide 7: Strategically investing to deliver value-led transformations
Strategically investing to deliver value-led transformations Innovation Value-led solutions Talent Intelligent Industry Customer First Ecosystem of partners Delivery excellence Cloud Data & AI Brand recognition Sustainability solutions Industry expertise Full Year 2023 Results | February 14, 2024 ©
Slide 8: Focusing on creating value for our clients through Gen AI
Focusing on creating value for our clients through Gen AI GEN AI STRONG MARKET AT SCALE DYNAMICS > 300 projects Catching UK EUROPEAN demand at scale > 800 qualified deals in the pipeline PHARMACEUTICAL RETAILER Gen AI assistant for Private GPT Platform Gen AI product assistant for From PoCs to dep
Slide 9: Continuously committing to ESG
Continuously committing to ESG ENVIRONMENT SOCIAL GOVERNANCE TOTAL CARBON EMISSIONS DIVERSITY LEADERSHIP DIVERSITY 38.8% Women Women among the Group’s - 30% Reduction (scope 1,2 & 3) in workforce Vs. 2019 baseline + 1pt vs. 2022 26.2% executive leaders + 1.8pts vs. 2022 BUSINESS TRAVEL EMISSIO
Slide 10: 2024 Outlook
2024 Outlook REVENUE GROWTH OPERATING MARGIN ORGANIC FCF +0% 13.3% around to +3% to 13.6% € 1.9 bn at constant exchange rates Inorganic contribution marginal at the lower end of the target range and up to 1 point at the upper end Full Year 2023 Results | February 14, 2024 © Capgemini 2024. All right
Slide 11: Olivier Sevillia, Chief Operating Officer
Olivier SEVILLIA Chief Operating Officer
Slide 12: Q4 & FY 2023 Revenues by Sector
Q4 & FY 2023 Revenues by Sector Q4 2023 FY 2023 Energy Services Year-on-Year Year-on-Year & Utilities Constant Constant Manufacturing Currency Currency 5% Telco, Media & Technology 8% Financial Services -4.3% +1.0% 27% Energy & Utilities +5.9% +5.0% 11% Manufacturing +0.5% +7.8% FY Consumer Goods &
Slide 13: Bookings Evolution
Bookings Evolution ▐ in EUR billion (at reported rates) +2.6% CC YoY QUARTERS FULL YEAR 25.0 23.7 23.9 +1.7% CC YoY 6.7 6.6 20.0 19.5 6.1 6.1 5.9 16.9 5.5 5.4 5.3 15.1 15.0 10.0 5.0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Bookings (€b) 5.5 6.1 5.4 6.7 5.9 6.1 5.3 6.6 Book
Slide 14: Transformation solutions that match our client needs
Transformation solutions that match our client needs CLOUD DATA & AI GLOBAL GLOBAL GLOBAL GLOBAL INTELLIGENT AUTOMOTIVE AEROSPACE TECH SUPPLIER RETAIL INDUSTRY Gas Conversion Project Innovation Hub for R&D for Assisted Business Transformation Multi-tenant Security Data for Sequencing Digital Manufac
Slide 15: Nive Bhagat, Chief Financial Officer
Nive BHAGAT Chief Financial Officer
Slide 16: Financial Overview
Financial Overview Constant ▐ in EUR millions FY 2022 FY 2023 Variation Currency Growth Revenues 21,995 22,522 +2.4% +4.4% Operating expenses -19,128 -19,531 Operating margin 2,867 2,991 +4% (in % of revenues) 13.0% 13.3% +0.3pts Other operating income and expense -474 -645 Operating profit 2,393 2,
Slide 17: Quarterly Revenue Growth
Quarterly Revenue Growth ▐ Revenues in EUR millions Constant currency growth 5,754 5,729 5,697 5,616 5,521 5,553 5,480 Q4: -0.2% YoY 5,167 FY: +4.4% YoY Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Year-on-Year Organic +10.1% + 4.7% + 2.0% -0.9% + 3.9% Group scope +0.6pts +0.5pts +0.3pts +0.7pts +0.5pts
Slide 18: Q4 & FY 2023 Revenues by Region
Q4 & FY 2023 Revenues by Region APAC & LATAM Q4 2023 FY 2022 FY 2023 Variation Year-on-Year Revenues Year-on-Year Rest of Europe Constant Constant UK & 9% (in €m) (in €m) Reported Ireland Currency Currency 12% 30% North America -6.6% 6,737 6,462 -4.1% -1.3% UK & Ireland +2.7% 2,561 2,709 +5.8% +7.9%
Slide 19: Q4 & FY 2023 Revenues by Business
Q4 & FY 2023 Revenues by Business Strategy & Total Revenues Operations & Transformation Engineering 9% Q4 2023 FY 2023 Year-on-Year Year-on-Year 29% Constant Constant Currency Currency FY Strategy & Transformation +4.9% +8.6% 2023 Applications & Technology -0.6% +4.5% Operations & Engineering -1.3%
Slide 20: Headcount Evolution
Headcount Evolution Headcount evolution Attrition -15,700 -3,500 -5% Dec 2022 Dec 2023 Attrition Variation LTM LTM Strategy & Transformation 21.8% 14.8% -7.0pts 359,600 340,400 Applications & Technology 25.0% 15.3% -9.7pts Operations & Engineering 26.5% 19.0% -7.5pts TOTAL 25.5% 16.7% -8.8pts Workfo
Slide 21: Operating Margin by Region
Operating Margin by Region FY 2022 FY 2023 Operating Operating Revenues Revenues Margin Margin (in €m) (in €m) (%) (in €m) (in €m) (%) North America 6,737 1,051 15.6% 6,462 1,010 15.6% UK & Ireland 2,561 462 18.0% 2,709 504 18.6% France 4,276 518 12.1% 4,537 571 12.6% Rest of Europe 6,437 746 11.6%
Slide 22: Operating Margin Analysis
Operating Margin Analysis ▐ in EUR millions FY 2022 FY 2023 Revenues 21,995 22,522 Cost of services rendered -16,163 -16,474 in % of revenues -73.5% -73.1% Gross margin 5,832 6,048 in % of revenues 26.5% 26.9% Selling expenses -1,518 -1,598 in % of revenues -6.9% -7.1% General & administrative expen
Slide 23: Net Financial Expense and Income Tax
Net Financial Expense and Income Tax ▐ in EUR millions FY 2022 FY 2023 Interest on bonds -128 -115 Other interest income and expense 61 132 Net interest expense -67 17 Other financial income & expenses -62 -59 Net financial expense -129 -42 ▐ in EUR millions FY 2022 FY 2023 Income tax -710 -626 Effe
Slide 24: Net Profit Analysis
Net Profit Analysis ▐ in EUR millions FY 2022 FY 2023 Operating margin 2,867 2,991 Other operating income and expense -474 -645 of which Restructuring costs -82 -179 Amortization of intangible assets acquired through business combinations -136 -123 Acquisition and integration costs -84 -59 Expenses
Slide 25: Organic Free Cash Flow Generation
Organic Free Cash Flow Generation ▐ in EUR millions Net Debt 1,873 1,852 1,963 €2.0bn as at Dec 31, 2023 vs. €2.6bn as at Dec 31, 2022 1,288 1,071 1,080 1,160 1,119 815 668 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Full Year 2023 Results | February 14, 2024 © Ca
Slide 26: Q&A
Q&A Aiman EZZAT Olivier SEVILLIA Nive BHAGAT Chief Executive Officer Chief Operating Officer Chief Financial Officer
Slide 27: Appendix
Appendix Capgemini®
Slide 28: 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 29: Net Cash Evolution
Net Cash Evolution Operating Amortization Lease debt Working Net Organic Returns to ▐ in EUR millions Tax paid Capex net Others FCF shareholders M&A Others FX margin & Provisions repayment capital Interests -297 +592 -463 -320 0 -11 -254 -275 -2,047 -2,566 +2,991 -1,445 +1,963 -125 -343 +469 NET DEB
Slide 30: Net Cash Evolution
Net Cash Evolution ▐ in EUR millions FY 2022 FY 2023 Profit for the period 1,550 1,668 Depreciation, amortization and impairment of fixed assets and right-of-use 719 700 Change in provisions -77 -65 Losses on disposals of assets and others 13 22 Net finance costs 67 -17 Income tax expense / (income)
Slide 31: Revenue Quarterly Evolution
Revenue Quarterly Evolution Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Revenues (in €m) 5,167 5,521 5,553 5,754 5,729 5,697 5,480 5,616 Year-on-Year organic growth +16.3% +18.1% +14.3% +12.8% +10.1% +4.7% +2.0% -0.9% Year-on-Year CC growth +17.7% +19.3% +15.7% +14.0% +10.7% +5.2
Slide 32: Bookings Evolution
Bookings Evolution ▐ in EUR million (at reported rates) 6,685 6,643 6,134 6,101 5,867 5,473 5,427 5,275 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 ▐ Constant Currency Growth YOY (in %) +26.5% +18.8% +12.5% +11.4% +6.5% +1.2% +1.4% +1.7% Full Year 2023 Results | February 14, 2024
Slide 33: Q4 2023 Revenues by Region
Q4 2023 Revenues by Region APAC & LATAM Q4 2022 Q4 2023 Variation Revenues Year-on-Year Rest of Europe UK & Constant 8% (in €m) (in €m) Reported Ireland Currency 12% 31% North America 1,764 1,566 -11.3% -6.6% UK & Ireland 628 647 +3.0% +2.7% Q4 France 1,155 1,184 +2.5% +2.5% 2023 21% Rest of Europe
Slide 34: Q4 2023 Revenue Mix by Sector / Business
Q4 2023 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 Telco, Media 27% 29% & Technology 11% Q4 Q4 2023 2023 13% 21% 62% C
Slide 35: Offshore Leverage Evolution
Offshore Leverage Evolution 57% 58% 57% 58% 58% 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 Full Year 2023 Results | February 14, 2024 © Capgemini 2
Slide 36: Utilization Rates Evolution
Utilization Rates Evolution Strategy & Transformation Applications & Technology * 78% 78% 78% 78% 78% 79% 79% 80% 69% 69% 68% 69% 70% 66% 68% 67% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 * 2022 quarterly utilizati
Slide 37: Operating Margin – Analysis by Nature of Costs
Operating Margin – Analysis by Nature of Costs ▐ in EUR millions FY 2022 FY 2023 Revenues 21,995 22,522 Personnel costs -14,969 -15,341 in % of revenues -68.1% -68.2% Purchases and subcontracting expenses -3,049 -2,977 in % of revenues -13.9% -13.2% Travel expenses -290 -322 in % of revenues -1.3% -
Slide 38: Balance Sheet
Balance Sheet ASSETS EQUITY & LIABILITIES Dec. 31, Dec. 31, Dec. 31, Dec. 31, ▐ in EUR millions ▐ in EUR millions 2022 2023 2022 2023 (1) Equity 9,727 10,454 Non-controlling interests 16 19 Total equity 9,743 10,473 Goodwill 11,090 11,213 Long-term borrowings 5,655 5,071 Intangible assets 906 798 De
Slide 39: Cash Flow Statement
▐ in EUR millions FY 2022 FY 2023 Cash Flow Profit for the period attributable to owners of the Company Non-controlling interests 1,547 3 1,663 5 Statement Depreciation, amortization and impairment of fixed assets and Lease right-of-use assets Change in provisions (Gains) / Losses on disposals of as
Slide 40: Comprehensive Income & Change in Equity
Comprehensive Income & Change in Equity ▐ in EUR millions FY 2022 FY 2023 Actuarial gains and losses on defined benefit pension plans, net of tax (1) 195 -57 Remeasurement of hedging derivatives and NIH, net of tax (2) -66 50 Translation adjustments (2) 112 -255 Other, net of tax (1) 4 4 OTHER ITEMS
Slide 41: Bond Debt Maturity Profile
Bond Debt Maturity Profile ▐ in EUR millions 1,200 1,000 1,000 , (redeemed at maturity on 800 800 800 July 3, 2023) 600 500 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 (Jul.) (Oct.) (June) (Apr.) (Apr.) (Apr.) (June) (Apr.) Full Year 2023 Results | February 14, 2024 © Capgemini 2024. All right
Slide 42: ESG Policy Indicators
ESG Policy Indicators 2019 2022 2023 Change 2025 2030 Objectives Key Performance Indicators (baseline) vs. 2019 Target Target ₂ Scope 1 & 2 - Absolute emissions (ktCO e) 153.9 18.9 13.3 -91% -80% ₂ Scope 3 - Employee commuting emissions per headcount Environment 1.08 0.36 0.50 -54% -55% Be carbon ne
Slide 43: 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