-- Results in line with targets:
-- Revenues growth of 5%
-- 8.5% operating margin (up 1.1 points)
-- Profit for the year of EUR451 million (5.2% of revenues)
-- Dividend of EUR1 per share maintained
The Board of Directors of Cap Gemini S.A. (Paris:CAP), chaired
by Serge Kampf, convened on February 11, 2009 to review and
authorize for issue the audited financial statements for the year
ended December 31, 2008. The key figures are the following:
(in millions of Euros) FY H1 H2 FY
2007(reminder) 2008 2008 2008
=-------------------------------------------------------------------------
Published Revenues 8,703 4,374 4,336 8,710
=-------------------------------------------------------------------------
Operating Margin (1) 640 332 412 744
=-------------------------------------------------------------------------
As a % of revenues 7.4% 7.6% 9.5% 8.5%
=-------------------------------------------------------------------------
Operating Profit (2) 493 288 298 586
=-------------------------------------------------------------------------
Profit for the period 440 231 220 451
=-------------------------------------------------------------------------
As a % of revenues 5.1% 5.3% 5.1% 5.2%
=-------------------------------------------------------------------------
Net Cash and cash equivalents 889 533 774 774
=-------------------------------------------------------------------------
After a fourth quarter up by 3.3% on Q4 2007, the Capgemini
Group has recorded for the full year, revenues growth of 5.0% on a
like-for-like basis (constant Group structure and exchange rates).
However on a published basis (current Group structure and exchange
rates), revenues are practically the same as for last year, due to
the strong appreciation of the Euro against the US dollar (+6.9%)
and especially the pound sterling (+16.1%), two currencies which
accounted for more than 40% of the Group's consolidated revenues in
2007.
Bookings for the year in consulting, technology and local
professional services amount to EUR6,221 million, up by almost 9%
over 2007, and the book-to-bill ratio is 1.09.
Outsourcing has recorded bookings of EUR3,038 million from which
EUR1,149 million should be deducted following the amicable
separation agreement concluded at the end of the year with EFH,
who, having acquired our client TXU, decided to exercise the change
of control clause included in the contract signed with the latter
in 2004.
Outside of the effects of the renegotiation of certain major
contracts, total bookings reach EUR9,259 million, which is a rise
of 4% on the comparable number for 2007.
Operating margin - which is up in all four of the Group's
disciplines - comes out at EUR744 million, which is 8.5% of 2008
consolidated revenues, against7.4% for last year.
Net other operating expense is EUR158 million (which includes
EUR103 million in restructuring costs), leading to an operating
profit of EUR586 million, which is 6.7% of revenues.
After net finance expense of EUR19 million and a tax charge of
EUR116 million, consolidated profit for the year amounts to EUR451
million, or 5.2% of revenues.
2008 acquisitions (in particular Getronics PinkRoccade Business
Applications Services BV) have not weakened the financial strength
of the Group, with net cash of EUR774 million at December 31,
2008.
Earlier today the Board of Directors decided to recommend the
payment of a dividend of EUR1 per share(3) at the next General
Shareholders Meeting i.e. one third of Group profit for the year,
in line with Capgemini's dividend policy.
Outlook for 2009
In a climate of high uncertainty, the Group considers that it
does not have enough visibility beyond the first half. For the
first six months of the year like-for-like revenues could see a
modest decline. This would only have a limited impact on the
operating margin, which should remain above 6.5% (operating margin
for the first half of 2008 being 7.6%).
(1)Operating margin is one of Group's key performance indicators
for the Group's activity. It is defined as the difference between
revenues and operating costs, these being equal to the sum of costs
of services rendered (expenses incurred during project delivery),
selling and general and administrative expenses.
(2)Operating profit incorporates the charges associated with
shares or options allocated to certain employees, as well as other
non recurring income and expenses such as goodwill impairment,
capital gains or losses on disposals, restructuring costs, the cost
of integrating recently acquired companies, as well as the impacts
of the curtailment and settlement of defined benefit pension
plans.
(3) Subject to the approval of the shareholders at the General
Shareholders Meeting to be held on Thursday April 30, 2009, and in
compliance with NYSE Euronext regulations, the ex-dividend date
will be Tuesday May 5, the record date Thursday May 7 and the
dividend payment date is as of Monday May 11.
Appendix
Operations by Region:
-- North America:
like-for-like revenues are up by 3.4%. The good performance
in
outsourcing, consulting and local professional services more
than
makes up for the drop in revenues in Technology Services, which
can be
explained by the difficulties in the financial services sector,
as
well as the gradual replacement of local subcontractors by the
Group's
Indian resources. Operating margin amounts to 5.8%, slightly
down on
2007;
-- Europe and the rest of the world:
Benelux posted like-for-like revenue growth of 11.6% at
constant
exchange rates and perimeters, similar to 2007, and remains the
main
contributor to Group profitability despite a slight drop in
operating
margin (14.2% versus 15.0% in 2007). France is seeing its
margin
improve by close to 3 points to 7.3%, while its revenues, driven
by
the dynamism of technology and local professional services, have
grown
by 5.4%, slightly above the Group average. The United Kingdom
&
Ireland region has seen its operating margin rise by a point to
reach
7.8%, despite a marginal drop in like-for-like revenues (-0.5%)
due to
the planned decrease in revenues with HMRC. Excluding this
contract,
revenues for the region are up by 7% and its outsourcing
business even
posts double-digit growth. The other countries or regions are
globally
up by 7.8% like-for-like, with particularly strong growth in
Italy,
the Nordic countries and Southern Europe; their operating margin
is up
by almost 2 points (12.6% versus 10.7% in 2007).
Operations by Discipline:
-- Local professional services (Sogeti Group) has recorded both
the strongest growth (+9.1% like-for-like)
and the best operating margin in 2008 (12.9%);
-- Outsourcing has recorded fine growth of 4.6% thanks to good
momentum in all regions, especially Benelux and Germany; its
operating
margin continues to rise, reaching 5.4%;
-- Consulting has recorded the strongest margin improvement (12.8%
on 10.5% in 2007); but with growth which is weaker than that of
other
disciplines (2.4%) due to a notable weakening over the second
half;
-- Technology services has recorded growth of 4.1% but actual
growth is two points higher when taking into account the
growing
volume of revenues made for the other Group disciplines,
outsourcing
in particular. Moreover, thanks notably to administrative
cost
control, its operating margin is up by more than a point to
10.2%.
Headcount:
Between December 31, 2007 and December 31, 2008, the headcount
grew by 8,113 people, with almost half of new recruitment being
carried out in offshore countries. Essentially concentrated in
India, but also in Poland, China, Morocco and South America
offshore employees represented 28% of the total Group headcount
(25,275 people out of a total 91,621) on December 31.
Executive Compensation:
Having taken into account the recommendations of the Selection
and Compensation Committee, the Board of Directors has made the
following decisions concerning the compensation of the Chairman and
of the Chief Executive Officer:
-- For 2008: The Board has authorized the assessment of the said
committee, regarding the degree to which Mr. Serge Kampf and Mr.
Paul
Hermelin have attained the qualitative objectives set for them
at the
beginning of the year, and has therefore retained for the
calculation
of the second variable portion of their 2008 compensation a
total
weighted percentage of 110% for Mr. Kampf and 113% for Mr.
Hermelin.
The first variable portion being automatically determined by
the
Group's results in a number of general budget areas
(including
revenues, operating margin and central costs...), their
variable
compensation for 2008 will have been EUR617,000 for Mr. Kampf
(110.2% of
theoretical variable) and EUR982,000 for Mr. Hermelin (111.7%
of
theoretical variable);
-- For 2009: The Board has decided to maintain unchanged theoretical
compensation for Messrs. Kampf and Hermelin (fixed and variable
if
objectives attained).
The Board has also approved the list of beneficiaries of
performance shares, for which authorization was given by the
Ordinary and Extraordinary Shareholders Meeting April 17, 2008. The
Directors decided to add the name of Paul Hermelin, to whom they
have allocated 50,000 shares, which is 3.4% of the total
granted.