Capgemini Groupin vuoden 2004 tulos (eng)
2.03.2005
2004 Full Year Results
- a return to growth
- 2.35 % operating margin in the second half
- 402 M€ of net cash at December 31, 2004
- strong momentum in the fourth quarter
Financial Highlights for 2004
The Board of Directors of Cap Gemini SA, under its Chairman Mr. Serge Kampf, met on 23rd February 2005 to examine and approve the final and audited accounts for the Capgemini Group whose financial year ended on 31st December 2004.
|
in millions of euros | 2003 | H1 2004 | H2 2004 | 2004 |
| Revenues | 5,754 | 2,970 | 3,321 | 6,291 |
| Operating Income
As a % of revenues | 155
2.7% | (20)
(0.7%) | 78
2.35% | 58
0.9% |
| Net Income | (197) | (135) | (224) | (359) |
| Consolidated net equity | 3,351 | 3,268 | 3,002 | 3,002 |
| Net Cash | 266 | (4) | 402 | 402 |
| Bookings (1) | 11,502 | 5,906 | 4,544 | 10,450 |
| Headcount at end of period | 55,576 | 55,171 | 59,324 | 59,324 |
(1) at 2004 perimeter and rates for both financial years.
- 2004 Consolidated revenues for the Group totaled 6,291
million euros, an increase of 2.7% over the year at constant rates and perimeter
and an increase of 9.3% at current rates and perimeter, the principal change to
the latter being due to the currency fluctuations in the dollar rate against the
euro and to the acquisition of Transiciel on 31 December, 2003.
The first half of the year was characterized by a stabilization of the business; the second half of the year showed a net improvement which translates into a sequential growth of 12.4% over the first half and growth of 13.3% over the same period last year, at constant rates and perimeter.
- Operating income totaled 58 million euros, i.e. an
operating margin of 0.9% versus 155 million euros in 2003 (a margin of 2.7%).
The first half of the year marked the low point of the past three years,
incurring a loss of 20 million euros (a margin of -0.7%). However, the second
half of the year posted operating income of 78 million euros (a margin of
2.35%), echoing the first results of the turnaround plan implemented over the
past two years.
- Net income for the Group was a loss of 359 million euros
after taking into account in particular an exceptional tax charge of 125 million
euros, restructuring costs of 220 million euros (of which 127 million euros were
associated with staff redundancies and 93 million due to the ongoing
rationalization of office space) and a goodwill depreciation charge of 51
million euros.
- Net cash position has significantly improved over the year, from 266 million euros at the end of 2003 to a net position of 402 million euros at the end of 2004. This figure includes 98 million euros of proceeds from the disposal of assets.
Business Overview in 2004
2004 was a year of transition and does not yet reflect the full year effects of either the stabilization in pricing or the improvement in the utilization rates since September, or the drastic measures taken to improve the cost base. European operations (to which the Asia Pacific practice is attached) saw operating income rise from 12 million euros in the first half of the year to 110 million euros in the second half, and is starting 2005 with renewed operational confidence. In contrast, North America incurred a 32 million euros loss in the second half of the year (same amount as in the first half), due in the main to the consulting and technology practices.
2004 also marked the turning point in the recent history of the Group as it implemented its strategy to rebalance its business portfolio. With an average of 33% in outsourcing over the year (an increase of 21% on 2003) the Group has significantly increased the proportion of its recurring business: at the end of 2004, the backlog stood in excess of 14 billion euros (an increase of 40% over the year) and this should contribute 3 billion euros to 2005 revenues. That said, 2004 confirmed the Group’s breakthrough into the dynamic transformation outsourcing arena (TXU contract in the US last spring, Schneider Electric contract in France at the end of the year, both on the back of the signing of the Aspire contract in the UK at the end of 2003), as well as in the outsourcing of support functions (Business Process Outsourcing). The Group’s ability to provide execution in consulting, technology and systems integration at a global level has become a trump card whenever ‘transformation’ is a central issue to clients’ needs.
Lastly, with the integration of the Transiciel business, the Group has created a powerful business in local professional services: with a headcount of almost 14 000, this business posted a revenue increase of 6.6% in 2004 at constant rates and perimeter and now contributes 16% to Group revenues as against 8% in 2003.
Outlook
In a context of gradual market upturn, the principal levers for improving the operational performance of the Group will be higher utilization rates in the project and consulting arenas but also the continued efforts to streamline the cost base: 2004 second half operating performance in Europe and the favorable market conditions since the beginning of this year pave the way for a significant improvement in European operations’ profitability in 2005.
Management’s priority for 2005 is to achieve the turnaround of the North American business. A full-scale recovery plan is underway which will restore operational breakeven in the second half of 2005.
In summary, the Group’s revenues are expected to increase by around 10% in 2005 and its operating margin should show a marked improvement over the level reached in the second half of 2004.
Media contacts:
Media Relations:
Philippe Guichardaz
Tel. 33 (0)1 47
54 50 45
Florence Riu
Tel. 33 (0)1 53 70 74 26
Investor Relations: Laurence Chalmet
Tel. 33 (0)1 47 54
50 52