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    CAP   FR0000125338

CAPGEMINI SE

(CAP)
  Report
Real-time Euronext Paris  -  11:39 2022-10-04 am EDT
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Capgemini : 2022 FIRST HALF FINANCIAL REPORT

08/02/2022 | 01:12pm EDT

INTERIM FINANCIAL REPORT

CONSOLIDATED FINANCIAL STATEMENTS

CAPGEMINI JUNE 30, 2022

CONTENTS

FINANCIAL HIGHLIGHTS ..........................................................................................................................................................

3

STATUTORY AUDITORS' REPORT ON THE 2022 HALF-YEARLY FINANCIAL INFORMATION ..........................................

4

INTERIM FINANCIAL REVIEW...................................................................................................................................................

5

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED JUNE 30, 2022......

9

DECLARATION BY THE PERSON RESPONSIBLE FOR THE INTERIM FINANCIAL REPORT ...........................................

26

CAPGEMINI JUNE 30, 2022 2

FINANCIAL HIGHLIGHTS

Consolidated financial statements

in millions of euros

First-half 2018

First-half 2019 **

First-half 2020 ***

First-half 2021

First-half 2022

Revenues

6,467

7,007

7,581

8,711

10,688

Operating expenses

(5,760)

(6,210)

(6,763)

(7,669)

(9,387)

Operating margin *

707

797

818

1,042

1,301

% of revenues

10.9%

11.4%

10.8%

12.0%

12.2%

Operating profit

521

658

577

812

1,068

% of revenues

8.0%

9.4%

7.6%

9.3%

10.0%

Profit for the period attributable to owners of the Company

314

388

311

443

667

% of revenues

4.8%

5.5%

4.1%

5.2%

6.3%

Earnings per share

Average number of shares outstanding during the period

167,323,709

165,843,357

167,646,025

168,453,627

170,561,706

Basic earnings per share (in euros)

1.88

2.34

1.86

2.63

3.91

Normalized earnings per share * (in euros)

2.64

2.90

2.80

3.58

4.87

GOODWILL AT JUNE 30

7,323

7,591

10,316

10,096

11,087

EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY AT JUNE 30

6,992

7,466

5,922

6,681

8,938

(NET DEBT) / NET CASH AND CASH EQUIVALENTS * AT JUNE 30

(2,192)

(1,621)

(6,008)

(4,826)

(4,094)

ORGANIC FREE CASH FLOW * AT JUNE 30

11

90

106

429

193

Average number of employees

201,318

213,470

239,086

276,700

339,635

Number of employees at June 30

205,574

216,801

265,073

289,501

352,148

  • Operating margin, normalized earnings per share, net debt / net cash and cash equivalents and organic free cash flow, alternative performance measures monitored by the Group, are defined in Note 3 - Alternative performance measures, to the condensed interim consolidated financial statements for the half-year ended June 30, 2022.
  • Data from First-half 2019 reflects the application of IFRS 16, Leases, using the modified retrospective method.
  • First-half2020 data reflects the consolidation of Altran from April 1, 2020.

CAPGEMINI JUNE 30, 2022 3

STATUTORY AUDITORS' REPORT ON THE 2022 HALF-YEARLY FINANCIAL INFORMATION

Statutory auditors' report on the half-yearly financial information

(For the period from January 1, 2022 to June 30, 2022)

To the Shareholders

CAPGEMINI SE

11 rue de Tilsitt

75017 Paris

In compliance with the assignment entrusted to us by Annual general meeting and in accordance with the requirements of article L. 451-1-2 III of the French Monetary and Financial Code ("Code monétaire et financier"), we hereby report to you on:

  • the review of the accompanying condensed half-year consolidated financial statements of Capgemini SE, for the period from January 1, 2022 to June 30, 2022;
  • the verification of the information presented in the half-year management report.

These condensed half-year consolidated financial statements are the responsibility of the Board of Directors. Our role is to express a conclusion on these financial statements based on our review.

I - Conclusion on the financial statements

We conducted our review in accordance with professional standards applicable in France.

A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed half-year consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34- standard of the IFRSs as adopted by the European Union applicable to interim financial information.

II - Specific verification

We have also verified the information presented in the half-year management report on the condensed half-year consolidated financial statements subject to our review. We have no matters to report as to its fair presentation and consistency with the condensed half-year consolidated financial statements.

French original signed by

Neuilly-sur-Seine and Courbevoie, August 2, 2022

The Statutory Auditors

PricewaterhouseCoopers Audit

Mazars

Itto El Hariri

Romain Dumont

Dominique Muller

Anne-Laure Rousselou

CAPGEMINI JUNE 30, 2022 4

INTERIM FINANCIAL REVIEW

Capgemini reported very strong H1 2022 results. Following record growth in Q1 2022, Capgemini accelerated further in the second quarter. This momentum was largely fueled by the Intelligent Industry and Customer First business areas, as well as activities driven by Cloud and Data. This illustrates the importance of digital transformation for Group customers and the structural increase in their investments in technology.

Given this strong growth momentum, the Group has raised its growth objective for 2022, while retaining its other financial objectives unchanged for the current year (see the "Outlook for fiscal year 2022" section below).

Capgemini continued to attract and develop its talent during the half-year - a real growth driver - exceeding 350,000 employees at June 30, 2022. In particular, the Group stepped up training measures in line with its objective to increase by 5% each year the average number of training hours received by each employee.

FINANCIAL PERFORMANCE

Capgemini generated revenues of €10,688 million in H1 2022, up +22.7% on a reported basis and +18.5% at constant exchange rates. Organic growth (i.e. excluding the impacts of currency fluctuations and changes in Group scope) is +17.2%.

Group growth accelerated in Q2 to reach +19.3% at constant exchange rates and +18.1% organically, confirming the strong momentum observed in the previous quarter.

Bookings totaled €11,607 million in the first half of 2022, up +22% year-on-year at constant exchange rates. The book-to-bill ratio is 1.09 for H1 and 1.11 for Q2, reflecting ongoing robust commercial momentum.

The operating margin is €1,301 million, or 12.2% of revenues, an increase of +25% or +0.2 points year-on-year. As expected, mix and pricing improvement offset the return of certain operating costs, such as travel expenses, and those of developing Group talent.

Other operating income and expenses represent a net expense of €233 million, virtually stable year-on-year. The decrease in restructuring costs was partially offset by amortization of intangible assets recognized in business combinations, as well as by the impact of the increase in the Capgemini share price until the end of 2021 on the long-termshare-based compensation expense.

As a result, Capgemini's operating profit is up +32% to €1,068 million, or 10.0% of revenues.

The net financial expense is €71 million, down €14 million on H1 2021.

The income tax expense is €327 million and includes exceptional tax expenses of €29 million, compared with €56 million last year. These tax expenses relate to (i) the transitional impact of the 2017 US tax reform and (ii) in 2021, the consequence of a 2021 change in a local tax regulation on legal restructurings carried out in 2016. Adjusted for these expenses, the effective tax rate is 29.9%, compared with 31.0% in H1 2021 and 29.2% in FY 2021.

Net profit (Group share) is up +50% year-on-year at €667 million for the first six months of 2022. Basic earnings per share rose by +49% year-on-year to €3.91, while normalized earnings per share increased +36% to €4.87. Normalized earnings per share adjusted for exceptional tax expenses rose +29% to €5.03.

The Group generated organic free cash flow of €193 million, down as expected from €429 million in the same period of 2021.

Return to shareholders increased under the combined effect of a higher dividend (€2.40 per share or €409 million) and share buybacks during the period (totaling €517 million on a performed basis).

Furthermore, the Group disbursed a net amount of €34 million on external growth transactions during the half-year.

HEADCOUNT

At June 30, 2022, the Group's total headcount stood at 352,100, up 22% year-on-year, with a 27% increase in employees in offshore centers to 207,900 (59% of the total headcount).

CAPGEMINI JUNE 30, 2022 5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Capgemini SE published this content on 02 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2022 17:11:06 UTC.


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