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Capgemini posts 11% 2011 revenue growth.

Paul Hermelin
Capgemini 20

Paris: Capgemini Group has turned in strong 2011 financial results but does not expect to see much organic growth in 2012.

  • Revenue growth of 11.4%
  • Group profit up 44%

Capgemini Group yesterday reported total 2011 revenues of €9,693 million, up 11.4% on published revenues (i.e. at current group structure and exchange rates). On a like-for-like basis (i.e. at constant group structure and exchange rates), revenues rose 5.6%, with the difference between these two rates primarily due to the consolidation of CPM Braxis (Brazil) and Prosodie (France), acquired in October 2010 and July 2011, respectively.

Bookings during the year totaled €9,903 million, down on last year (-8.4% like-for-like) during which a large number of Outsourcing Services contracts were renewed. Conversely, Technology Services, Local Professional Services and Consulting Services reported 6.2% growth in bookings and a book-to-bill ratio of 1.12, confirming, Capgemini says, the dynamism of these markets.

The operating margin is up in each of the group's four businesses and totals €713 million, or 7.4% of 2011 consolidated revenues, compared to 6.8% in 2010. Operating profit increased 21.7% to €595 million.

After a net financial expense of €105 million (compared to €87 million last year) and an income tax expense of €101 million (compared to €124 million last year), group profit for the year was €404 million, up 44.3% on last year.

Net cash and cash equivalents at December 31, 2011 total €454 million, up €285 million on June 30, 2011, thanks in particular to the generation of considerable free cash flow in the second-half of the year. Acquisitions during the year (particularly Prosodie for €376 million) did not impact the financial strength of the Group.
Outlook for 2012

Capgemini says that, strengthened by investments in recent years, it is able to approach 2012, "with a certain degree of confidence. The good demand levels witnessed at the end of last year have not weakened at the beginning of 2012 and activity trends remain positive in several major markets including North America.

"However, due to reduced visibility and the uncertain macro-economic environment, the group currently expects to report limited organic growth in revenues (taking account in particular of the public sector cost cuts introduced in the majority of European countries) and an increase in the operating margin rate."

Paul Hermelin, Chief Executive Officer of Capgemini Group, said, "Strengthened by its good results, the group will continue to focus its offering on high value-added services, anticipating in this way the new needs of its customers, and step-up the industrialization of its production model, in order to reinforce its position among global leaders in its business sector."

Operations by major region

  • France — still the group's biggest market — saw revenue surge 10.7% on 2010 published figures, that is taking account of the acquisition of Prosodie. Like-for-like growth was 4.9%, thanks to the good performance of Technology Services and Local Professional Services. The operating margin rate for the region increased 2 points on 2010 to 8.7%;
  • The United Kingdom and Ireland reported like-for-like growth of 2%, despite substantial cost cuts in the public sector. At 7.1%, the operating margin rate fell 0.8 points on 2010.
  • North America reported marked growth in revenues (+11.5% like-for-like), driven by project and consulting activities. With an operating margin rate of 8.8% — up 3.6 points on 2010 — North America became the group's most profitable region;
  • Benelux remains a difficult market for the sector as a whole, where the group reported a contraction in revenues (-4.4% like-for-like) and an operating margin rate of 7.4%, down 2.3 points on 2010;
  • In the other regions, revenue growth (+10.9% on average, like-for-like) was marked by a business recovery in the Nordic countries and improved performance in Central Europe. The average operating margin rate of these regions was 7.9%.

Operations by business

  • Technology Services enjoyed sustained like-for-like growth of 8.4%, reflected by a high level of recruitment and an operating margin rate of 6.8%, up slightly on 2010. The situation varied across the group's regions, with North America reporting a significant increase in profitability while the United Kingdom and Benelux reported downturns;
  • Outsourcing Services reported like-for-like growth in revenues of 3.0% and an operating margin rate of 7.7%, up 0.6 point on 2010;
  • Sogeti reported like-for-like growth in revenues of 6.3%, with an operating margin rate (10.9%) up significantly on 2010 (+1.7 points);
  • Consulting Services, the business most heavily affected by the public sector cost cuts, reported a slight increase in 2011 revenues (+1.2% like-for-like) and even growth of 9.2% in the fourth quarter. The operating margin rate increased over one point to remain — at 12.0% — the highest of the group's four main businesses.


The group recruited nearly 33,000 employees in 2011, including just over half in Capgemini's "historical" "onshore" countries. At December 31, 2011, the total headcount had increased over 10% to 119,707 employees, compared to 108,698 at the end of the prior year. This headcount includes 44,468 offshore employees (including 35,728 in India), representing 37% of the total compared to 35% last year.

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