Full Year 2024 Capgemini SE Earnings Call Transcript
Key Points
- Capgemini SE (CAPMF) demonstrated resilience in a challenging market, maintaining an operating margin of 13.3% despite a revenue decline.
- The company achieved a robust book-to-bill ratio of 1.08, indicating strong commercial momentum.
- Organic free cash flow remained strong at EUR1,961 million, aligning with the 2024 target.
- Capgemini SE (CAPMF) made significant strides in AI and generative AI, with these technologies accounting for around 5% of Q4 bookings.
- The company achieved major progress in its ESG roadmap, reducing absolute emissions by 35% compared to 2019 and increasing the share of renewable energy to 98%.
- Revenues decreased by 2% year on year at constant currency, with a notable slowdown in France and the manufacturing sector.
- The financial services sector only returned to growth in Q4, indicating earlier struggles.
- Operating margin in France decreased by 240 basis points year on year due to lower activity levels.
- Attrition increased slightly over the past quarter, bringing the last 12-month attrition rate to 15.7%.
- The company faces a challenging geopolitical and economic environment, leading to a cautious outlook with a wide growth bracket from minus 2% to plus 2% for 2025.
Good day and thank you for standing by. Welcome to the Capgemini 2024 full year results webcast and conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Aiman Ezzat, CEO. Sir, please go ahead.
Thank you. Good morning and thank you for joining us for the 2024 full year results call, and I'm joined today by our CFO, Nive Bhagat.
In 2024, the market proved weaker than we anticipated at the beginning of the year. Clients did not increase their discretionary spend. And as we discussed before, Capgemini faced some unexpectedly strong headwinds in the second half, notably in manufacturing and in France. In this challenging environment, the group demonstrated a strong resilience of the operating model while sustaining investment in cloud, in gen AI and AI, in digital core and intelligence industry notably. And we
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