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Tel.: +33 6 04 52 16 55
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Tel.: +33 1 47 54 50 87
vincent.biraud@capgemini.com

Capgemini delivers another record performance in 2023

• Revenues of €22,522 million in 2023, up +2.4%• Growth at constant exchange rates* of +4.4% for the full year, and -0.2% in Q4• Operating margin* up 30 basis points to 13.3% of revenues• +7% increase in net profit, Group share, with normalized earnings per share* up +8%• Organic free cash flow * of €1,963 million• Proposed dividend of €3.40 per share

Paris, February 14, 2024 – The Board of Directors of Capgemini SE, chaired by Paul Hermelin, convened on
February 13 in Paris to review and adopt the accounts 1 of the Capgemini Group for the year-ended
December 31, 2023.
Aiman Ezzat, Chief Executive Officer of the Capgemini Group, said: “2023 was another year of growth for theGroup with improving profitability and a strong cash flow conversion, despite a slowdown in our industry. Our
results illustrate the strength of our positioning, our agility and our resilience.
Our clients recognize the value we bring as their business and technology transformation partner. In 2023, theGroup continued to invest in building the capabilities and solutions to help them transition to an increasingly
digital and sustainable economy.
This was notably the case for generative AI, which is top of mind for all large organizations. We are positioned
as a leading player enabling our clients to explore, test and scale solutions for tangible business impact. Throughour €2 billion investment plan announced last July, we continue to strengthen and upskill our teams, invest in
solutions and leverage a broad ecosystem of technology partners including Microsoft, Google, AWS, Salesforce
and Mistral AI.
In terms of sustainability offerings, we also stepped up our efforts in 2023. We continue to help our clients
accelerate their transition towards Net Zero through strategy definition, business model adaptation and designof sustainable products and services. 2023 was also an important year on our own ESG roadmap, with major
progress achieved towards a more sustainable and inclusive world.
The Group is well-equipped to improve its performance in 2024, while the environment is expected to remain
soft in the first half. This year again, the Group expects to grow, with the trough in Q1, improve its operating
margin and maintain a superior free cash flow conversion.”*
1

The terms and Alternative Performance Measures marked with an (*) are defined and/or reconciled in the appendix to this press release.
Audit procedures on the consolidated financial statements have been completed. The auditors are in the process of issuing their report.

Press Release1

KEY FIGURES
2022

2023

Change21,99522,522+2.4%

Operating margin*

2,867

2,991

+4%

as a % of revenues

13.0%

13.3%

+30 basis points

2,393

2,346

-2%

10.9%

10.4%

1,547

1,663

+7%

9.70

+7%

(in millions of euros)
Revenues

Operating profit
as a % of revenues
Net profit (Group share)
Basic earnings per share (€)

9.09

Normalized earnings per share (€)*

11.52

12.44

+8%

Organic free cash flow*

1,852

1,963

+€ 111m

Net cash / (Net debt)*(2,566)(2,047)aaexcluding tax expenses of €73 million in 2022 related to the impact of the US tax reform

Capgemini delivered a solid performance in 2023 despite the weak economic environment, with results exceedingor in line with its financial targets for the year.
After two years of record growth, persisting macroeconomic challenges and rising geopolitical tensions led to a
gradual market slowdown in 2023 that came in line with Group expectations. Capgemini reported revenues of€22,522 million in 2023, up +2.4% vs. 2022 published figures. Constant currency growth* was +4.4%, within
the 2023 target range of +4% to +7%. With acquisitions contributing +0.5 points to growth, organic growth*(i.e., excluding the impact of currency fluctuations and changes in Group scope) reached +3.9%.
Bookings totaled €23,887 million in 2023, a year-on-year increase of +2.6% at constant exchange rates,
representing a book-to-bill ratio of 1.06 for the year, and 1.18 in Q4. This reflects sustained commercial
momentum despite lengthened decision cycles.
While large corporations and organizations hold firm on their digital and sustainability ambitions, they are
increasingly prioritizing operational agility and cost efficiency. This translates into strong demand fortransformation programs with short payback, which leverage the Group’s high value-added service offerings mostnotably in Intelligent Industry, as well as in activities driven by Cloud, Data & Artificial Intelligence.
This ongoing shift in Capgemini’s offerings portfolio towards more value creating services, combined withstrengthened operational efficiency, generated a 40 basis points increase in gross margin, despite the rising
inflation and market slowdown.
As a result, the operating margin* increased to 13.3% of revenues, or €2,991 million, up +4% in value
compared to 2022. This year-on-year improvement of 30 basis points exceeds the target of 0-20 basis points set
for 2023.
Other operating income and expense was a net expense of €645 million, compared with €474 million in 2022.
This increase is mainly attributable to higher restructuring charges, which increased by €97 million, and to achange in French accounting practices as set by the French National Accounting Council (ANC), which resulted in
an additional €63 million non-cash expense related to the annual employee share ownership plan.
Capgemini’s operating profit was €2,346 million, or 10.4% of revenues, compared with €2,393 million in 2022.
The net financial expense was €42 million compared with €129 million in 2022, this evolution being mainly
driven by higher interest income in a context of rising interest rates.
The income tax expense was €626 million compared with €710 million last year. The effective tax rate wasslightly down at 27.2%, compared with 28.1% in 2022 (excluding €73 million tax expenses related to the impactof the US tax reform).
Taking into account the share of profits of associates and non-controlling interests, the Group share in net
profit rose by +7% year-on-year to €1,663 million. Basic earnings per share increased also by +7% to €9.70.
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Normalized earnings per share* was €12.44, compared with €11.09 in 2022 and €11.52 excluding the tax
expenses related to the impact of the US tax reform.
Organic free cash flow* amounted to €1,963 million, above the target of “around €1.8 billion” set for the year.
Capgemini invested €343 million in acquisitions during the past year. The Group also paid dividends of€559 million (€3.25 per share) and allocated €883 million (net) to share buyback programs. Finally, the 10th
employee share ownership plan, which proved highly successful and thus contributed to maintaining employee
shareholding between 8 to 9% of the share capital, led to a gross capital increase of €467 million.
The Board of Directors has decided to recommend the payment of a dividend of €3.40 per share at the
Shareholders’ Meeting of May 16, 2024. The corresponding payout ratio is 35% of net profit (Group share), inline with the Group’s historical distribution policy.
OPERATIONS BY REGION
At constant exchange rates, the United Kingdom and Ireland region (12% of Group revenues) maintained arobust momentum in 2023 with revenues growing +7.9%. This performance was primarily driven by the Public
Sector as well as the Consumer Goods & Retail and Manufacturing sectors, while activities in the Financial Services
and TMT sectors were roughly stable year-on-year. The operating margin reached a record level of 18.6%
compared with 18.0% in 2022.
The Rest of Europe region (30% of Group revenues) also performed well with revenue growth of +7.6% fueled
to a large extent by the Public Sector and the Manufacturing sector. The Energy & Utilities sector was also buoyant
while growth in Financial Services was limited. The operating margin was 11.7%, up from 11.6% a year earlier.
France (20% of Group revenues) revenues grew +6.1%, mainly supported by strong growth in the Manufacturing
and Consumer Goods & Retail sectors. TMT was the only sector to contract in 2023. The operating margin further
improved by 50 basis points year-on-year to 12.6%.
Conversely, revenues in North America (29% of Group revenues) decreased slightly by -1.3%. The
Manufacturing and Services sectors showed good growth. Revenue decline was particularly visible in the TMT and
Consumer Goods & Retail sectors, but more limited in the Financial Services sector. The operating margin was
15.6% as in 2022.
Finally, revenues in the Asia-Pacific and Latin America region (9% of Group revenues) grew +4.6%. Growth
was mostly driven by the Asia-Pacific region where Consumer Goods & Retail, Services, Manufacturing and the
Public Sector enjoyed double-digit growth rates, whereas Financial Services remained virtually stable, and TMT
contracted visibly. The operating margin improved substantially to 12.2% compared with 10.6% the year before.
OPERATIONS BY BUSINESSAt constant exchange rates, Strategy & Transformation consulting services (9% of Group revenues) reported
a +8.6% growth in total revenues* in 2023. This sustained momentum illustrates the strength of the Group's
strategic positioning as a partner for its clients' digital and sustainable ambitions.
Applications & Technology services (62% of Group revenues and Capgemini’s core business) reported a+4.5% increase in total revenues.
Finally, Operations & Engineering services total revenues (29% of Group revenues) grew +2.8%.
OPERATIONS IN Q4 2023
As expected, the progressive deceleration in Capgemini revenue growth observed since the beginning of the year
continued in Q4. Group revenues totaled €5,616 million, virtually stable at -0.2% at constant exchange rates,and -0.9% when adjusted for Group scope and exchange rate impacts.

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At constant exchange rates, revenues in the United Kingdom and Ireland region grew +2.7% at constantexchange rates, underpinned by fairly broad-based growth but weighed down by sizeable contraction in the
Financial Services and TMT sectors. Revenue growth in the Rest of Europe region, which also stood at +2.7%,
was driven by solid momentum in the Energy & Utilities and Public sectors. In France, the Manufacturing andEnergy & Utilities sectors fueled revenue growth of +2.5%. With revenues down by -6.6% year-on-year, thedeceleration in North America compared to Q3 growth rates (-4.0% year-on-year) was in line with Group average,
with the largest revenue declines in the Consumer Goods & Retail and TMT sectors. Finally, revenues in the AsiaPacific and Latin America region grew by +1.1% despite the visible decline in the Financial Services and TMT
sectors, thanks to solid growth in most of the other sectors.
Bookings rose +1.7% in Q4 at constant exchange rates to reach €6,643 million, corresponding to a book-to-billratio of 1.18.
HEADCOUNTAt December 31, 2023, the Group’s total headcount stood at 340,400, down by 5% year-on-year.
The onshore workforce decreased slightly at 145,800 employees, down by 2% year-on-year, while the offshore
workforce was down by 7% to 194,600 employees, i.e., 57% of the total headcount.
BALANCE SHEETCapgemini continued to strengthen its financial structure in 2023 on the back of its strong cash flow generation.
At December 31, 2023, the Group had cash, cash equivalents and cash management assets of €3.7 billion. Afteraccounting for borrowings of €5.7 billion and derivative instruments, Group net debt* is €2.0 billion, down
compared with €2.6 billion at December 31, 2022.
CORPORATE SUSTAINABILITY
In line with the commitments of its ESG (Environment, Social and Governance) Policy presented in December
2021, Capgemini continued to deliver visible progress on the front of corporate sustainability in 2023.
Firstly, the Group further strengthened its position as a leader committed to fostering diversity and inclusion invarious dimensions. On gender diversity specifically, the proportion of women in the total workforce reached38.8% at the end of 2023, up by 1 point year-on-year and almost 6 points since 2019. The proportion of womenamong executive leadership positions reached 26.2%, up by 1.8 points year-on-year and more than 9 points
since 2019.
In human capital development, the Group provided 17.8 million learning hours to employees during the past
year, compared with 17.4 million in 2022. The average number of learning hours per employee stands at 53.8
hours, up +5% year-on-year in line with the Group’s commitment.
The scale of impact through digital inclusion initiatives expanded significantly in 2023. Among the largest projects
in terms of new beneficiaries, the Pi Lab program provides an easily accessible technology platform to equip
Indian teachers and students with digital skills. Overall, Capgemini’s various programs and partnerships withleading non-profit organizations benefited almost 2.5 million individuals in 2023, bringing the cumulative numberof beneficiaries to 4.4 million since 2018.
Regarding environmental sustainability, as a reminder, Capgemini set in 2022 ambitious near-term (2030) andlong-term (2040) carbon footprint targets. These targets imply notably a 90% reduction in all emissions (Scope
1, 2 and 3) by 2040 to reach its “net zero emissions” targets as validated by the SBTi (Science-Based Targets
initiative). At the end of 2023, the Group’s absolute carbon emissions (Scope 1, 2 and 3) have fallen by 30%
against the 2019 baseline. As regards its carbon neutrality target for own operations by 2025, Capgemini’s

Press Release4

operational carbon emissions 2 have decreased by 47% since 2019, and by 75% net of high-quality carbon credits.
Among other tangible progress achieved in 2023, the share of renewable energies in the Group’s electricity
consumption reached 96% compared with 88% in 2022.
In recognition of its continued ESG performance, the Group’s inclusion in the Dow Jones Sustainability Index(DJSI) Europe was confirmed at the end of the year. Capgemini also maintained its position on the “A list” in the2023 CDP (Carbon Disclosure Project) assessment, as released in early February 2024.
OUTLOOK
The Group’s financial targets for 2024 are:•

Revenue growth of 0% to +3% at constant currency;•

Operating margin of 13.3% to 13.6%;•

Organic free cash flow of around €1.9 billion.

The inorganic contribution to growth should be marginal at the lower end of the target range, and up to 1 pointat the upper end.
CONFERENCE CALL
Aiman Ezzat, Chief Executive Officer, accompanied by Nive Bhagat, Chief Financial Officer, and Olivier Sevillia,
Chief Operating Officer, will comment on this publication during a conference call in English to be held today at
8.00 a.m. Paris time (CET). You can follow this conference call live via webcast at the following link. A replay
will also be available for a period of one year.
All

documents

relatingtothispublication

will

be

postedontheCapgemini

investorwebsiteathttps://investors.capgemini.com/en/.
PROVISIONAL CALENDAR
April 30, 2024

Q1 2024 revenues

May 16, 2024

Shareholders’ meeting

July 26, 2024

H1 2024 results

The dividend payment schedule to be submitted to the Shareholders’ Meeting for approval would be:
May 29, 2024

Ex-dividend date on Euronext Paris

May 31, 2024

Payment of the dividend

DISCLAIMER
This press release may contain forward-looking statements. Such statements may include projections, estimates,
assumptions, statements regarding plans, objectives, intentions and/or expectations with respect to futurefinancial results, events, operations and services and product development, as well as statements, regarding
future performance or events. Forward-looking statements are generally identified by the words “expects”,“anticipates”, “believes”, “intends”, “estimates”, “plans”, “projects”, “may”, “would”, “should” or the negatives ofthese terms and similar expressions. Although Capgemini’s management currently believes that the expectations
reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking
statements are subject to various risks and uncertainties (including, without limitation, risks identified inCapgemini’s Universal Registration Document available on Capgemini’s website), because they relate to future
events and depend on future circumstances that may or may not occur and may be different from thoseanticipated, many of which are difficult to predict and generally beyond the control of Capgemini. Actual results
and developments may differ materially from those expressed in, implied by or projected by forward-looking
statements. Forward-looking statements are not intended to and do not give any assurances or comfort as to2
Corresponding to Scopes 1 and 2, and Scope 3 including emissions linked to employee commuting and business travel but excluding those frompurchased goods and services.

Press Release5

future events or results. Other than as required by applicable law, Capgemini does not undertake any obligation
to update or revise any forward-looking statement.
This press release does not contain or constitute an offer of securities for sale or an invitation or inducement toinvest in securities in France, the United States or any other jurisdiction.
ABOUT CAPGEMINI
Capgemini is a global business and technology transformation partner, helping organizations to accelerate theirdual transition to a digital and sustainable world, while creating tangible impact for enterprises and society. It isa responsible and diverse group of 340,000 team members in more than 50 countries. With its strong over 55year heritage, Capgemini is trusted by its clients to unlock the value of technology to address the entire breadthof their business needs. It delivers end-to-end services and solutions leveraging strengths from strategy anddesign to engineering, all fueled by its market leading capabilities in AI, cloud and data, combined with its deepindustry expertise and partner ecosystem. The Group reported 2023 global revenues of €22.5 billion.
Get the Future You Want | www.capgemini.com***

APPENDIX 3

BUSINESS CLASSIFICATION•

Strategy & Transformation includes all strategy, innovation and transformation consulting services.

•

Applications & Technology brings together “Application Services” and related activities and notably local
technology services.

•

Operations & Engineering encompasses all other Group businesses. These comprise Business Services(including Business Process Outsourcing and transaction services), all Infrastructure and Cloud services, andR&D and Engineering services.

DEFINITIONS
Organic growth or like-for-like growth in revenues is the growth rate calculated at constant Group scopeand exchange rates. The Group scope and exchange rates used are those for the reported period. Exchange
rates for the reported period are also used to calculate growth at constant exchange rates.
Reconciliation of growth rates

Q1

Q2

Q3

Q4

FY

2023

2023

2023

2023

2023

Organic growth+10.1%

+4.7%

+2.0%

-0.9%

+3.9%

Changes in Group scope+0.6 pts+0.5 pts+0.3 pts+0.7 pts+0.5 pts

Growth at constant exchange rates+10.7%

+5.2%

+2.3%

-0.2%

+4.4%

Exchange rate fluctuations+0.2 pts-2.0 pts-3.6 pts-2.2 pts-2.0 pts

Reported growth+10.9%

+3.2%

-1.3%

-2.4%

+2.4%

When determining activity trends by business and in accordance with internal operating performance measures,growth at constant exchange rates is calculated based on total revenues, i.e., before elimination of interbusiness billing. The Group considers this to be more representative of activity levels by business. As its

3

Note that in the appendix, certain totals may not equal the sum of amounts due to rounding adjustments.

Press Release6

businesses change, an increasing number of contracts require a range of business expertise for delivery, leading
to a rise in inter-business flows.
Operating margin is one of the Group’s key performance indicators. It is defined as the difference between
revenues and operating costs. It is calculated before “Other operating income and expense” which include
amortization of intangible assets recognized in business combinations, expenses relative to share-based
compensation (including social security contributions and employer contributions) and employee share ownershipplan, and non-recurring revenues and expenses, notably impairment of goodwill, negative goodwill, capital gains
or losses on disposals of consolidated companies or businesses, restructuring costs incurred under a detailed
formal plan approved by the Group’s management, the cost of acquiring and integrating companies acquired by
the Group, including earn-outs comprising conditions of presence, and the effects of curtailments, settlements
and transfers of defined benefit pension plans.
Normalized net profit is equal to profit for the year (Group share) adjusted for the impact of items recognized in“Other operating income and expense”, net of tax calculated using the effective tax rate. Normalized earnings
per share is computed like basic earnings per share, i.e., excluding dilution.
Organic free cash flow is equal to cash flow from operations less acquisitions of property, plant, equipment
and intangible assets (net of disposals) and repayments of lease liabilities, adjusted for cash out relating to the
net interest cost.
Net debt (or net cash) comprises (i) cash and cash equivalents, as presented in the Consolidated Statement of
Cash Flows (consisting of short-term investments and cash at bank) less bank overdrafts, and also including (ii)cash management assets (assets presented separately in the Consolidated Statement of Financial Position due
to their characteristics), less (iii) short- and long-term borrowings. Account is also taken of (iv) the impact ofhedging instruments when these relate to borrowings, intercompany loans, and own shares.
RESULTS BY REGION
Revenues2023(in millions ofeuros)

Year-on-year growthreported

Operating margin rate

at constantexchange rates

2022

2023

North America

6,462

-4.1%

-1.3%

15.6%

15.6%

United Kingdom and Ireland

2,709

+5.8%

+7.9%

18.0%

18.6%

France

4,537

+6.1%

+6.1%

12.1%

12.6%

Rest of Europe

6,837

+6.2%

+7.6%

11.6%

11.7%

Asia-Pacific and Latin America

1,977

-0.4%

+4.6%

10.6%

12.2%

22,522

+2.4%

+4.4%

13.0%

13.3%

TOTAL

RESULTS BY BUSINESS
Total revenues*

Year-on-year growth2023(% of Grouprevenues)

At constant exchange rates in
Total revenues* of the business

Strategy & Transformation

9%

+8.6%

Applications & Technology

62%

+4.5%

Operations & Engineering

29%

+2.8%

Press Release

7

SUMMARY INCOME STATEMENT AND OPERATING MARGIN(in millions of euros)
Revenues
Operating expenses

2022

2023

Change21,99522,522+2.4%(19,128)(19,531)

Operating margin

2,867

2,991

as a % of revenues

13.0%

13.3%

(474)

(645)

Operating profit

Other operating income and expense

2,393

2,346

as a % of revenues

10.9%

10.4%

+4%

-2%

Net financial expense

(129)

(42)

Income tax income/(expense)

(710)

(626)

Share of profit of associates

(4)

(10)

(-) Non-controlling interests

(3)

(5)

1,547

1,663

+7%

2022

2023

Change170,251,066

171,350,138

Profit for the period, Group share

NORMALIZED AND DILUTED EARNINGS PER SHARE(in millions of euros)
Average number of shares outstanding
BASIC EARNINGS PER SHARE (in euros)
Diluted average number of shares outstanding
DILUTED EARNINGS PER SHARE (in euros)(in millions of euros)
Profit for the period, Group share
Effective tax rate(-) Other operating income and expense, net of tax
Normalized profit for the period
Average number of shares outstanding
NORMALIZED EARNINGS PER SHARE (in euros)

9.09

9.70

176,019,736+7%

177,396,346

8.79

9.37

+7%

2022

2023

Change

1,547

1,663

+7%

28.1%

27.2%

340

469

1,887

2,132

170,251,066+13%

171,350,138

11.09

12.44

+12%

In 2022, the Group recorded a tax expense of €73 million related to the impact of the US tax reform. Taking into
account the average number of shares outstanding, this represented an amount of €0.43 per share. Adjusted forthis tax expense, normalized earnings per share were therefore €11.52.
CHANGE IN CASH AND CASH EQUIVALENTS AND ORGANIC FREE CASH FLOW(in millions of euros)
Net cash from operating activities

2022

2023

2,517

2,525

Acquisitions of property, plant and equipment and intangible assets, net of disposals

(283)

(254)

Net interest cost

(71)

(11)

Repayments of lease liabilities

(311)

(297)

ORGANIC FREE CASH FLOW
Other cash flows from (used in) investing and financing activities
Increase (decrease) in cash and cash equivalents

1,852

1,963

(1,118)(2,126)

734

(163)

Effect of exchange rate fluctuations

(58)

(115)

Opening cash and cash equivalents

3,119

3,795

Closing cash and cash equivalents

3,795

3,517

Press Release8NET DEBT(in millions of euros)

December 31, 2022

Cash and cash equivalents

December 31, 2023

3,802Bank overdrafts
Cash and cash equivalents
Cash management assets

3,536

(7)

(19)

3,795

3,517

386

161

Long-term borrowings(5,655)(5,071)

Short-term borrowings and bank overdrafts(1,102)(675)(-) Bank overdrafts
Borrowings, excluding bank overdrafts

7

19(6,750)(5,727)

Derivative instruments
NET CASH / (NET DEBT)

32(2,566)(2,047)

ESG PERFORMANCE

2019

2022

2023

Changevs. 2019

₂
Scope 1 & 2 - Absolute emissions(ktCO e)

153.9

18.9

13.3

-91%

-80%

Scope 3 - Employee commuting
₂
emissions per headcount(tCO e/head)

1.08

0.36

0.50

-54%

-55%

₂
Scope 3 - Business travel emissions
per headcount (tCO e/head)

1.26

0.40

0.50

-60%

-55%

₂
Scope 3 - Purchased goods andservices - Scope 3 (ktCO e)

299.9

365.6

349.5

17%

-50%

% of electricity from renewables

28%

88%

96%

+8 ptsIncrease average learning hours
Average Completed Learning Hours
per employee by 5% every year
per headcount trained during theto ensure regular lifelong
reporting period
learning

41.9

51.4

40% of women in our teams by
2025

33.0%

37.8 %

38.8%

5m beneficiaries supported by
Cumulated number of beneficiaries
our digital inclusion programs bysince 2018
2030

29,012

1.9m

4.4m

30% of women in Group% of women in Group executive
executive leadership positions inleadership positions
2025

16.8%

24.4 %

26.2%% of the headcount with an Ethics
score of 7-10

87%

86%

Cyber Rating agencies - CyberVadis
score

942

958

940-950(out of 1,000)

DPO certification

65%

72%

95%

Environment

Objectives

Be carbon neutral for our own
operations no later than 2025
and across our supply chain by
2030, and committed to
becoming a net zero business by
2040

GovernanceSocialTransition to 100% renewableelectricity by 2025, and electricvehicles by 2030

Maintain over 80% of theworkforce with an Ethics scoreof 7-10Be recognized as a front leader
in data protection andcybersecurity

Key Performance Indicators% of women in the workforce(baseline)

2025
Target100%

2030
Target

100%

53.8
(+5%
YoY)

+28%

+5.8 pts

40%5m+9.4 pts

30%

>80%

>80%

Note 1: In the table above, 2023 data may include some estimates and some historical data are restated to ensure comparability.
Note 2: Employee commuting and business travel emissions increase in 2023 year-on-year is due to post-pandemic gradual return to the officeand travel.

Press Release9