Q1 2014 revenues Q1 2013 revenues Change Q1 2014/
Q1 2013
€2,503 million €2,499 million At constant Group structure and exchange rates + 2.3%
At current Group structure and exchange rates + 0.2 %

(*)The difference between these two rates is mainly due to the unfavorable evolution of the U.S. dollar and the Brazilian real

The change in revenues at constant Group structure and exchange rates breaks down as follows:

  • by business, Group growth is driven by Outsourcing Services (+3.7%) and by Technology Services (+2.5%), together they represent 80% of Capgemini’s revenues. Conversely, the most cyclical businesses continue to be affected by a weak demand environment in Continental Europe: Revenues for Local Professional Services (Sogeti) are stable (-0.1%), while Consulting Services decline is limited to 2.6%.
  • by region, it is again the Asia-Pacific and Latin America region that reported the fastest growth (+11.7%). The recovery of activity in North America is confirmed with a growth rate of 4.1%. The United Kingdom and Ireland region rose 2.7% despite the continuing decline in the public sector. France confirmed a moderate growth of 1.0%. With the exception of Benelux, which posted a decline (-2.9%) due to the weak market, the rest of Europe grew slightly (+1.2%).

Bookings amounted to €2,224 million in the first quarter of 2014, up 5% compared to the same period in 2013. The combined book-to-bill ratio of Consulting Services, Technology Services and Local Professional Services stood at 1.05.

As of March 31, 2014, the total headcount of the Group was 134,000. Offshore penetration increased by 4 points year on year to 45%, representing more than 60,000 employees.

In addition, in April, the Group crossed the threshold of 50,000 employees in India. The first European IT Services company to have developed massively in this country, Capgemini has a tremendous expertise and an undeniable asset to gain market share.

Based on these results, the Group confirms its objectives for 2014: an organic revenue growth of 2% to 4% and an operating margin rate between 8.8% and 9.0%. Organic free cash flow is expected to exceed €500 million.

For Paul Hermelin, Chairman and CEO of Capgemini: “We began 2014 with a stronger momentum than 2013. It is by playing our two strengths – competitiveness and innovation – that we best meet our clients’ needs. Competitiveness, supported by the power of our offshore platforms. Innovation, through the constant development of new offerings around cloud, big data and digital to enable our clients’ business transformation.”

Appendix

Change in revenue by region:

        Current Organic
  Current Sequential
%
Year-on-year % Sequential
%
Year-on-year %
  Q1 2013 Q4 2013 Q1 2014 Q1 14 /
Q4 13
Q1 14 / 
Q1 13
Q1 14 /
Q4 13
Q1 14 /
Q1 13
North America 501 527 495 -5.9 -1.2 -4.4 4.1
UK  and Ireland 510 512 539 5.3 5.7 3.8 2.7
France 551 584 556 -4.7 1.0 -4.7 1.0
Benelux 273 282 265 -6.2 -2.9 -6.2 -2.9
Rest of Europe 469 478 466 -2.7 -1.0 -2.5 1.2
Asia Pacific & Latin America 195 224 182 -19.0 -6.4 -15.4 11.7
Total 2499 2607 2503 -4.0 0.2 -3.6 2.3

Change in revenue by business (at constant Group structure and exchange rates):

  % of revenues
Q1 2013
% of revenues
 Q1 2014
Q1 2014 /
Q1 2013
Consulting Services 4.7 4.5 -2.6
Local Professional Services 15.4 15.6 -0.1
Technology Services 40.6 39.1 2.5
Outsourcing Services 39.3 40.8 3.7

Utilization rates (%):

  Q1 2013 Q2
2013
Q3
2013
Q4 2013 Q1 2014
Consulting Services 62 69 64 67 65
Local Professional Services 80 82 83 82 81
Technology Services 79 80 81 81 80

Q1 2014 major events: