Capgemini Se Ord

Hello, it's my pleasure to share with you today our Q1 2021 revenues. But first, in a context where COVID-19 is still circulating and with difficult circumstances, notably in India and Brazil, I want to reiterate that our priority continues to be the health and well-being of our employees, and we are fully committed to providing them with support. Now turning to today's financial results news. We delivered an excellent performance in the first quarter of 2021 with a return to organic growth. During our annual results in February, we referred to the positive signals observed in our business and announced a gradual improvement in the first half of the year. This has been confirmed and is even beyond our expectations. In Q1, growth was stronger than anticipated and activity surpassed pre-health crisis levels. The demands of our customers in terms of digital transformation continue to accelerate and our positioning on the key drivers of this business transformation allows us to respond fully to them. This quarter, we see a return to organic growth. It is a plus 1.7%. We have indeed observed a stronger acceleration than anticipated. So it's a very good start and a very encouraging sign for the quarters to come. With the consolidation of Altran, our Q1 revenues are up 24.2% at constant currency. In view of these results, we of course confirm the three objectives for the year 2021 announced in February. They are growth at constant currency of between 7% to 9%, an increase in the operating margin to reach between 12.2% and 1.4%, and organic free cash flow generation exceeding 1.3 billion euros. It is still early in the year and the uncertainties related to the health situation are still important. But based on what we are seeing in this beginning of 2021, we can aim to exceed the midpoint of the range that was announced in February. To summarize, at the start of the year, all indicators are green for us and we intend to continue on this path. It's been a busy quarter featuring growth and clear signs of recovery. There has been positive development in all of our geographies, our businesses and our sectors. In terms of the geographies, all regions except France are now experiencing organic growth with different dynamics of course. For example, Asia-Pacific, Latin America, UK and Ireland regions accelerated with double-digit growth for the latter. In other good news, North America and the continental Europe region, excluding France, which we call rest of Europe, have returned to organic growth. I'm thinking in particular of markets like Germany, where the dynamics are very good. With regards to France, the situation improved again significantly over this quarter. It's therefore certainly going in the right direction. At a sector level now, all our businesses improved their performance over this quarter compared to the pace recorded in the fourth quarter of last year. This reflects a strong underlying organic growth momentum. For example, manufacturing, which represents more than 20% of our turnover and includes life sciences, recorded the most notable improvement. The consumer goods sector also made an excellent start to the year, returning to large positive growth. The public sector has maintained strong momentum with again double-digit growth. and the financial services and telecommunication, media and technology sectors continue to be on a good trend. Our continued strong performance in digital and cloud once again double-digit growth, help to fuel our QN performance and also prove our good positioning. An example of this is the major contract win we announced with the Metropolitan Police Service, the UK's main police service, to transform their IT infrastructure to the cloud. The five-year contract will provide an improved user experience to more than 44,000 employees and agents. This project will also strengthen their digital interactions with UK citizens. In other activities, the Altran integration continued as planned during Q1, which was marked by the creation of a new brand, Capgemini Engineering, where we have brought together the cutting-edge capabilities in engineering and R&D from Altran with Capgemini's expertise in digital manufacturing. This makes a team of 52,000 engineers and scientists present all over the world. A final sign of recovery that we are seeing is the acceleration of recruitment. At Capgemini, we have returned to large-scale recruitment to meet client demand, stepping up our own initiatives to attract the very best talent. To sum up Q1, all our businesses are progressing and we see clear signs of recovery. As explained during our Capital Markets Day at the end of March, the Group is strongly positioned on the main drivers of technology and business transformation in the years to come, and our performance at the beginning of 2021 is a testament to that.