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FINANCIAL INFORMATION
4.1 Analysis on Capgemini 2016 Group consolidated results
4
166
Registration Document 2016 — Capgemini
development of APIs (customer interface for communication of
◗
major global bank;
software components) to power a new Digital platform for a
company for innovation and transformation, was asked to
Capgemini is the preferred partner of a French mass catering
more than 10 Digital projects;
mentor the Digital transformation of the Company and steer
operator;
major Digital transformation contract with a European telecoms
◗
7-year service agreement with a US insurance company
◗
Business Administration Services);
delivered through Capgemini’s IBAS platform (Integrated
manufacturer;
digital transformation consulting assignment for a European car
◗
submarine systems;
cloud-based Big Data & Analytics assignment for global leader in
◗
cybersecurity assignments for a leading European insurance
◗
a cruise ship operator;
company, an environmental agency, a Dutch discount chain and
a top-three European airport;
systems integration and infrastructure consulting assignment for
◗
supplier;
implementation of Digital applications for a Digital camera
biotechnology company;
launch of a strategic transformation plan for an agricultural
◗
automation of testing and transformation for a US finance
company;
the food retail business in the United Kingdom;
phase on a Digital customer engagement for a brand devised for
building a new membership program, data model, deployment
◗
transformation program for a German automotive equipment
◗
Product Lifecycle Management (PLM).
manufacturer to adopt next generation Digital technologies for
in 2016:
Finally, the following contracts illustrate other commercial activity
Capgemini secured its position as a strategic supplier to HMRC
◗
Capgemini will transition a number of services between now and
In support of HMRC’s decision to take greater control of IT,
June 2017 (March 2016);
collection) notably in application development and management
(the UK government department primarily tasked with tax
being one of the world’s most digitally advanced tax authorities.
services through to June 2020 in support of HMRC’s ambition of
Capgemini announced the renewal of its managed services
◗
contact with the UK Ministry of Defense (March 2016);
company based in the US to manage all IT applications and
deliver end-to-end ADM services (September 2016).
Capgemini signed a contract with a global medical technology
◗
and outlook for 2017
Comments on the Capgemini Group consolidated financial statements
4.1.2
Consolidated income statement
Consolidated revenues
total €12,539 million for the year ended
5.2% (+7.9% at constant foreign exchange rates). Operating
December 31, 2016, compared with €11,915 million in 2015, up
2015.
expenses total €11,099 million compared with €10,653 million in
2015. The average headcount rose 15.1% in 2016 to 185,593,
costs represent 60.7% of revenues compared with 60.9% in
56% of the total Group headcount, compared with 54% in 2015.
compared with 161,268 in 2015. Offshore employees represent
personnel costs (+4.8%) to €7,611 million for 2016. Personnel
An analysis of costs by nature highlights a €351 million increase in
An analysis of costs by function reveals:
the cost of services rendered is €9,183 million, or 73.3% of
◗
improvement in the gross margin to 26.7% of revenues in 2016;
revenues, down 0.9 point on 2015. This enabled an
percentage increase on last year;
selling costs total €1,032 million, or 8.2% of revenues, a slight
◗
revenues), a reduction of 0.2 point on 2015 as a result of a strict
general and administrative expenses total €884 million (7.0% of
◗
cost control policy.
The
operating margin
is therefore €1,440 million in 2016, or
11.5% of revenues compared with 10.6% in 2015.
Other operating income and expense
(including the
combinations) represents an overall net expense of €292 million in
amortization of intangible assets recognized in business
€52 million is mainly due to integration costs as well as the
2016, compared with €240 million in 2015. This increase of
IGATE acquisition over 12 months in 2016.
amortization of intangible assets recognized in the context of the
Operating profit
is €1,148 million (9.2% of revenues) compared
12.3%.
with €1,022 million (8.6% of revenues) in 2015, an increase of
(€118 million). This rise is mainly due to the recognition of the
The
net financial expense
is €146 million, up on 2015
coupon on the 2015 bond issue for a full 12 months in 2016.
An
income tax expense
of €94 million is recognized in respect of
This is due to the remeasurement of deferred tax assets on US tax
2016, compared with income tax income of €203 million in 2015.
income (net) of €180 million in respect of goodwill arising on legal
loss carry-forwards in 2015 in the amount of €476 million and tax
restructurings in 2016. Adjusted for this non-recurring item, the
2015).
effective tax rate is 27.3% in 2016 (compared with 30.1% in
€921 million in 2016, compared with €1,124 million in 2015. Basic
Profit for the year attributable to owners of the Company
is
169,450,721 ordinary shares outstanding in 2016, compared with
earnings per share are €5.44 based on an average of
outstanding in 2015.
€6.67 based on an average of 168,452,917 ordinary shares