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Strong Growth in Capgemini Earnings in H1 2015

30 Jul 2015

Paris – Capgemini Group today published its results for the 1st half of 2015.

For Paul Hermelin, Chairman and Chief Executive Officer of Capgemini Group: “Once again we report a good performance this semester marked by a strong growth in published revenues and a further improvement in our operating margin and net profit (+21%). The combined evolution of our geographic mix and our portfolio of offerings towards high value-added segments enables us to further improve our profitability and gain market share.

The constant shift to more innovation in our service offerings is paying off. We enable our clients to get all the benefits from Digital, Big Data and Cloud Computing developments and become the reference partner in these areas for an increasing number of major brands. Our Social, Mobile, Analytics and Cloud (SMAC) offerings grew by 25% year-on-year to represent over 20% of the Group’s business in Q2 2015.

The acquisition of the US Company IGATE, completed in early July, will allow us to further strengthen our presence in North America, by far the largest and most innovative technology and services market in the world. Including IGATE, we now have 96,000 employees in our global delivery centers out of a total headcount of almost 180,000, positioning Capgemini on par with the industry leaders.

The IGATE integration process is now underway which together with the accelerated development of our Digital business, will be the Group’s priority for the coming period.

Finally, we are raising our guidance for 2015 based on H1 results and taking into account the integration of IGATE.”


in millions of eurosH1 2014H1 2015Change
Operating margin1402486+21%
as a % of revenues7.9%8.7%+0.8pt
Operating profit354447+26%
as a % of revenues6.9%8.0%+1.1pt
Net profit (Group share)240290+21%
Net cash and cash equivalents2051,464 
Organic Free Cash Flow2(148)(86)+62

The Group generated revenues of €5,608 million in H1 2015, up 9.9% on H1 2014 published figures. Organic growth is 1.4%, excluding the impact of fluctuations in Group currencies against the euro and the consolidation of the French company, Euriware, acquired in May 2014.

New orders recorded during the first six months of 2015 totaled €5,309 million, compared with €5,653 million in H1 2014. Restated for the €1 billion Areva contract signed in H1 2014, this is a 5% increase at constant rates and perimeter.

The operating margin amounted to €486 million, or 8.7% of revenues, up 0.8 point on the H1 2014 margin rate of 7.9%.

Net profit (Group share) totaled €290 million compared with €240 million for H1 2014, an increase of 21%.

H1 2015 Organic Free Cash Flow came in at -€86 million compared with -€148 million in H1 2014.


Consulting Services (4% of Group revenues) benefited from the focus on “digital transformation”, reporting activity growth of 8% on a published basis and 4% like-for-like in the first-half 2015. This growth was driven by a double-digit increase in North America and the Rest of Europe, but activity also grew in France and Benelux. The operating margin rate improved 1.1 point year-on-year, reaching 8.1% for the first-half 2015.

Local Professional Services (Sogeti, 15% of Group revenues) reported 7% growth in revenues on a published basis, and 0.5% like-for-like. Activity growth in North America, the United Kingdom and Benelux was offset by a slowdown in the Rest of Europe region. The operating margin rate increased 0.5 point on the first-half 2014 to 8.7%.

Application Services (58% of Group revenues) were the main driver behind Group growth in the first-half 2015, with a year-on-year surge in revenues of 12% on a published basis and a like-for-like increase of 5%. Geographically, this growth was fueled by the North America, Rest of Europe, Asia-Pacific and Latin America regions. The operating margin rate increased 0.7 point on the first-half 2014 to 10.0%.

Other Managed Services (23% of Group revenues) reported revenues grew 6% year-on-year in the first-half 2015, this represents a 7% contraction on a like-for-like basis. The impact of the change in the structure of a UK public sector contract, announced in December 2014, largely offset the growth observed in France, North America and the Asia Pacific and Latin America region. The operating margin rate increased 0.9 point on the first-half 2014 to 8.2%. 



H1 2015

(in million)
Growth on H1 2014Operating margin rate
PublishedLike-for-likeH1 2014H1 2015
North America1,400+35.2%+11.8%11.9%13.3%
United Kingdom and Ireland1,026-5.1%-15.4%9.9%12.7%
Rest of Europe964+4.4%+5.7%7.9%7.5%
Asia Pacific and Latin America472+20.1%+15.5%2.7%3.2%


H1 2015

(in million)
Growth on H1 2014    Operating margin rate
PublishedLike-for-likeH1 2014H1 2015
Consulting Services244+7.7%+4.4%7.0%8.1%
Local Professional Services832+7.3%+0.5%8.2%8.7%
Application Services3,234+12.3%+5.1%9.3%10.0%
Other Managed Services1,298+6.0%-6.7%7.3%8.2%

1 Operating margin is one of the Group’s key performance indicators. It is defined as the difference between revenues and operating costs. It is calculated before amortization of intangible assets recognized in business combinations, the charges associated with shares allocated to employees, as well as non-recurring income and expenses such as goodwill impairment, capital gains or losses on disposals, restructuring costs, the cost of acquiring and integrating acquired companies, as well as the impacts of the curtailment and/or settlement of defined benefit pension plans.

2 Organic free cash flow is equal to cash flow from operations less acquisitions of property, plant, equipment and intangible assets (net of disposals) and adjusted for flows relating to the net interest cost.