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FINANCIAL INFORMATION
4.1 Analysis on Capgemini 2016 Group consolidated results
4
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Registration Document 2016 — Capgemini
Operations by major region
16%
United Kingdom & Ireland
8%
Asia-Pacific & Latin America
20%
France
30%
North America
26%
Rest of Europe
North America
reported revenues of €3,800 million in 2016 (30%
of Group revenues), a 14.5% year on year increase at constant
exchange rates. This growth reflects the impact of the
consolidation of 12 months of IGATE revenues in 2016. Excluding
IGATE, the year 2016 was marked by the severe contraction in
the Energy & Utilities sector, which fully offset the 3.3% organic
growth recorded in other sectors, notably in Financial Services
and Manufacturing. Operating margin for the region rose 0.5 point
year-on-year to 15.4% of revenues. Thus, at €587 million, the
operating margin has more than doubled in the past two years.
€1,993 million (16% of Group revenues) rose 4.1% at constant
exchange rates to €1,993 million. Local momentum was fueled by
the private sector (now accounting for 57% of the region’s
revenues) which grew organically at around 10% while public
sector revenues were down as anticipated. The Brexit vote did not
materially affect the activity in the region, however, the
depreciation of the pound sterling against the euro led to a 7.3%
United Kingdom and Ireland
reported 2016 revenues of
decline in consolidated revenues and has lowered by 2 points to
16% the region’s weight in the Group. The operating margin is
€290 million, representing an operating margin rate of 14.6%, up
1.2 points on 2015.
France
reported revenues of €2,567 million (20% of Group
revenues) up 5.0% year-on-year driven by strong growth in the
Retail & Consumer goods, Financial Services and the
Manufacturing & Automotive sectors. By business, performance
was particularly strong in Application Services. The operating
margin for 2016 increased by 18% in value and by 1.0 point in
rate to reach €234 million and 9.1% of revenues.
Automotive as well as the Public sector were among the most
dynamic sectors this year. Geographically, Germany and
Scandinavia recorded the strongest growth in the region, while
activity in the Benelux remained stable. Operating margin was
€339 million and 10.5% of revenues, up 0.3 point year-on-year.
The
Rest of Europe
region (which includes Benelux since
January 2016 and now represents 26% of Group revenues) with
revenues of €3,214 million reported a 5.3% growth at constant
exchange rates. Retail & Consumer goods, Manufacturing &
recorded a further contraction in revenues. The operating margin
was €64 million in 2016, compared with €39 million the previous
year. The improvement in profitability in Asia Pacific has more than
offset the deterioration in Latin America, resulting in an operating
The
Asia-Pacific and Latin American
region (8% of Group
revenues) recorded growth of 8.2% at constant exchange rates to
€965 million in 2016, with this year again contrasting trends.
Growth in the Asia-Pacific region, supported by the development
of Financial Services, remains very strong. The situation in Brazil
continued to weigh on the performance of Latin America, which
margin rate expansion of 2.4 points to 6.6%.