The Board of Directors of Capgemini SE chaired by Paul Hermelin, convened in Paris on July 26, 2017 to review and authorize the issue of the accounts of Capgemini Group for the 1st half of 2017.
For Paul Hermelin, Chairman and Chief Executive Officer of Capgemini Group: "After starting the year on a solid footing, the momentum accelerated in the second quarter. First-half results are robust, confirming our ability to support our clients' digital transformation and process industrialization. Our portfolio's transition towards Digital and Cloud continues and these activities account for 37% of Q2 revenues. Our automation offerings are also expanding, with 4,000 experts in Robotic Process Automation, cognitive technologies and artificial intelligence.
These results reflect the good alignment between our innovative offerings and growing client demand across all sectors and geographies. Continental Europe is particularly dynamic with double-digit growth in Germany and Italy and solid momentum in France. Growth in North America is recovering as planned and should strengthen by the end of the year.
The acceleration of our growth combined with our operating margin expansion confirms the relevance of our strategy. Following these strong first-half results, we confirm our targets for revenue growth, operating margin and free cash flow for 2017, the year of Capgemini's 50thanniversary."
The Group generated revenues of €6,412 million in H1 2017, up 2.5% on H1 2016 reported revenues and 3.0% at constant exchange rates*. Organic growth (i.e. excluding the impact of currency fluctuations and changes in Group scope) was 2.7%. Digital & Cloud revenues grew 23% at constant exchange rates and account for 35% of H1 revenues.
In Q2, Group growth accelerated slightly to reach 3.3% year-on-year at constant exchange rates and 2.9% on an organic basis. Digital & Cloud accounted for 37% of revenues up from 32% in Q1.
Bookings totaled €6,389 million in the first six months of 2017, compared with €6,341 million reported for H1 2016, which benefited from the renewal of a major multi-year contract in the UK public sector.
The operating margin* is €672 million, up 5% on H1 2016. It represents 10.5% of revenues, an increase of 30 basis points year-on-year.
Other operating income and expenses total €134 million, compared with €128 million in H1 2016. Restructuring costs increased to €50 million, while acquisition and integration costs fell to €17 million.
H1 2017 operating profit increased to 8.4% of revenues or €538 million, up 6% year-on-year.
The net financial expense is €28 million, down €34 million year-on-year, following a reduction in Group debt and the gain realized on the early unwinding of currency swaps set up in connection with IGATE acquisition financing.
The income tax expense is €140 million. The €53 million year-on-year increase is mainly due to the recognition of deferred tax income of €32 million in H1 2016.
Net profit (Group share) is €375 million for the first half, up 3% year-on-year. Basic EPS (earnings per share) is €2.23. Normalized EPS* is €2.81, representing a 12% year-on-year increase on H1 2016 EPS adjusted for the one-off tax income.
The Group generated organic free cash flow* of €64 million in H1 2017, an improvement of €33 million on H1 2016. Return to shareholder amounted to €338 million over the period, comprising a dividend payment of €262 million and share buybacks totaling €76 million.
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