2. Key
Financials
GBP
million
31-‐Dec-‐10
31-‐Dec-‐11
31-‐Dec-‐12
Revenue
2,744.0
2,930.2
3,351.8
YOY
revenue
growth
(%)
2.1%
6.8%
14.4%
EBITDA
465.6
497.8
544.1
EBITDA
Margin
17.0%
17.0%
16.2%
Net
Income
235.0
238.0
236.0
Net
Margin
8.6%
8.1%
7.0%
Cash
and
Equivalents
38.5
71.5
319.9
Total
Assets
2,860.3
3,537.5
3,863.4
Market
Capitaliza=on
as
at
1st
July
2013
6,329.1
Business
Overview
■ Founded
in
1984,
The
Capita
Group
Plc
(“Capita”)
is
a
business
process
outsourcing
(BPO)
and
professional
services
company.
■ Headquarters
in
London
with
offices
in
Europe,
New
York
and
India.
■ Capita
is
a
FTSE
100
constituent
and
ranked
in
Euro
top
300.
■ Capita
has
physical
presence
in
15
jurisdictions
across
the
globe
and
employs
over
52,500
employees
at
320
offices.
■ The
Investor
&
Banking
Services
division
which
provides
corporate
services,
capital
market
services,
employee
solutions,
private
client
solutions,
fund
services
business
and
aviation
leasing
has
service
delivery
across
Europe
with
some
support
functions
in
India
and
a
representative
office
in
New
York.
Overall
Business
Centre
Network
■ Onshore
(56
centers)
-‐ UK
■ Nearshore
(6
centers)
-‐ Continental
Europe
-‐ Ireland
-‐ Channel
Islands
-‐ Isle
of
Man
■ Offshore
(8
centers)
-‐ India
-‐ South
Africa
-‐ Dubai
Overview
The
Capita
Group
Plc
Business
Model
Source:
Capital
IQ,
Company
Website,
Annual
Report
Building
Capability
&
Scale
Targeting
Growth
Markets
Creating
Innovative
Solutions
Securing
Organic
Growth
■ Providing
business
process
management
(“BPM”)
services
to
10
markets
across
the
UK
public
and
private
sectors
■ Extensive
resources
and
services
■ Information
and
Communicatio
ns
Technologies
and
BPM
skills
■ Extensive
Infrastructure
■ Client
responsive
solutions
■ Improving
service
outcomes
and
reducing
costs
■ Multi
service,
transformatio
nal
and
long
term
contracts
■ Shared
service
platforms
■ Single
services
Growth
Markets
and
Scalability
supported
by
Small
to
Medium
Acquisition
strategy
3. 9 9 11
20 19
18
15
11 8
4
5
6
3 3
18 19 17
7 6
4
5 5
6
22 23
26
0
20
40
60
80
100
120
2010 2011 2012
Percentage(%)
Central Government Local Government Education
Health Justice & Emergency Services Defence
Life & Pensions Insurance Financial Services
Other Private Sector
Private
Public
52% 53% 53%
1
94 95 95
6 5 5
10
20
30
40
50
60
70
80
90
100
2010 2011 2012
Percentage(%)
United Kingdom Other
Source:
Capital
IQ,
Company
Website,
Annual
Report
Revenue
by
Geography
(FY2010
–
2012)
Revenue
by
Markets
(FY2010
–
2012)
Revenue
Overview
The
Capita
Group
Plc
4. Capita
Group
Professional
Services
Workplace
Services
Integrated
Services
Investor
&
Banking
Services
Property
Services
IT
Services
&
Consulting
Life
&
Pensions
Customer
Management
&
International
Justice
&
Secure
Services
Health
&
Wellbeing
General
Insurance
Actuarial
&
Client
Accounting
Investigation
Claims
&
Underwriting
IT
Services
Consulting
Assurance
&
Testing
Local
Government
Services
&
Partnerships
Total
Document
Services
Debt
Management
Services
Resourcing
&
Development
Services
HR
Solutions
Business
Travel
&
Conferences
Census
Central
Government
Services
Customer
Management
&
Criminal
Records
Bureau
Corporate
Services
Capital
Market
Services
Fund
&
Trust
Services
Design
&
Infrastructure
Regional
services
Consultancy
Services
Customer
Services
&
Support
Sales
&
Customer
Acquisition
Debt
Collection
Secure
Information
Solutions
Secure
Mobile
Solutions
Translating
&
Interpreting
Medical
Services
Finance
&
Procurement
Systems
Customer
Management
Administration
&
Business
Support
Insurance
Broking
&
Distribution
Customer
Remediation
See
Page
6
18%
17%
13%
10%
8%
7%
7%
6%
5%
5%
4%
Life &Pensions
IT Services &Consulting
Professional Services
Workplace Services
Integrated Services
Investor &Banking Services
PropertyServices
Customer Management&International
Justice &Secure Services
Health &Wellbeing
General Insurance
Revenue
by
Business
Divisions
(FY2012
)
Source:
Capital
IQ,
MarketLine
and
Annual
Report
Business
Overview
The
Capita
Group
Plc
5. M&A
Volume
&
Value
Trend
(2007
–
YTD
June
2013)
147.4
177.5
301
341
178
107
0
50
100
150
200
250
300
350
400
0
5
10
15
20
25
Deal
Value
(£m)
Deal
Volume
Deal
Volume Deal
Value
2008 2009 2010 2011 2012 2013
Acquisition
Strategy
■ Capita
generally
seek
to
target
acquisitions
that
fit
with
their
strategy
and
core
competences,
generate
sustainable,
quality
revenues,
are
preferably
not
in
an
auction
as
they
aim
to
acquire
without
competition
and
can
be
secured
for
an
attractive
price.
■ Capita
looks
for
small
to
medium
sized
businesses
that
helps
them
to
grow
organically,
strengthen
existing
capabilities,
extend
their
market
position,
access
a
new
client
base,
build
economies
of
scale
and
enter
a
new
market.
■ Capita
looks
to
acquire
businesses
relatively
frequently
and
acquisitions
are
not
necessary
to
secure
deals,
but
could
be
used
to
improve
the
company’s
position.
■ In
March
2013,
CEO
Paul
Pindar
was
quoted
in
an
interview
that
they
are
assessing
potential
M&A
opportunities
in
the
debt
sector
and
prefers
to
acquire
economically
priced
businesses
in
financial
difficulty.
■ Capita
expects
M&A
activity
to
be
broadly
in
line
with
past
years
with
approximately
a
budget
of
£200
million
for
2013.
■ From
2013,
Capita
would
only
report
on
acquisitions
with
a
capital
value
of
£25
million
or
more.
Source:
Capital
IQ,
Company
Website,
Annual
Report,
MarketLine
Asia Pacific 2%
Europe 96%
North America 2%
Asia Pacific Europe
Middle East and Africa North America
South and CentralAmerica
M&A
Activity
by
Geography
(2007
–
YTD
June
2013)
M&A
Overview
Acquisi=on
Ac=vity
6. Completed
Date
Target Target Description
Country
Value
Acquiring
Division
(Capita)
Strategy
18/06/13
Creating
Careers
Ltd
Creating
Careers
provides
learners
who
have
been
disengaged
from
traditional
education
techniques
with
a
route
to
accredited,
nationally-‐recognised
qualifications.
UK - Workplace
Services
It
adds
value
to
the
range
of
services
currently
supplied
to
the
education
and
learning
and
development
sectors
09/05/13
KnowledgePool
Group
Limited
KnowledgePool
provides
learning
managed
services,
including
its
three
core
service
components
of
supplier
management,
training
administration
and
learning
consultancy.
UK - Workplace
Services
It
enhances
Capita’s
capability
to
support
organisations
to
meet
regulatory
training
requirements
and
develop
the
knowledge
and
skills
of
their
workforce.
03/05/13
Blue
Sky
Performance
Improvement
Limited
Blue
Sky
provides
bespoke,
high
quality
learning
and
development
solutions.
UK Workplace
Services
Blue
Sky’s
expertise
will
be
used
to
progress
Capita’s
own
operational
teams.
22/04/13
G2G3
Group
Limited
G2G3
designs
immersive
simulations,
virtual
environments
and
organisational
change
management
programmes
for
corporations
in
the
UK
and
overseas.
UK
- Justice
&
Secure
Services
The
acquisition
will
add
value
to
the
range
of
services
in
Capita’s
Justice
&
Emergency
Services
sector
25/03/13
STL
Technologies
Limited
STL
provides
software
and
ICT
to
the
criminal
justice
system,
including
courts
and
the
police,
and
to
asylum
and
immigration
tribunals.
UK Justice
&
Secure
Services
It
provides
further
depth
to
the
range
of
solutions
offered
in
and
has
significant
synergies
with
our
existing
justice
and
secure
services
business.
20/03/13
Micro
Librarian
Systems
Limited
the
UK
based
company
engaged
in
providing
high
specification
library
automation
and
management
systems
to
educational
institutions
UK
-‐
IT
Services
&
Consulting
The
acquisition
is
in
line
with
Capita
plc’s
strategy
to
develop
capability
in
its
target
markets.
12/03/13
Northgate
Managed
Services
Limited
Northgate
Managed
Services
(NMS)
provides
cloud-‐
based,
infrastructure
solutions
and
specialist
managed
services.
UK
65.0
IT
Services
&
Consulting
It
enhances
Capita’s
offering
to
clients
and
enable
them
to
transform
the
way
they
do
business.
01/03/13
iQor
Holdings
UK
Ltd
iQor
provides
outsourced
debt
collection
services
in
the
UK,
helping
companies
and
organisations
to
manage
high
risk
customers
and
ensure
revenue
collection.
UK 42.0 Customer
Management
&
International
It
enhances
Capita’s
wider
debt
management
capability
and
provides
in
house
`late
stage'
debt
recovery
expertise.
01/03/13
Fire
Service
College
The
Fire
Service
College
is
the
largest
single
provider
of
specialist
operational
fire
and
rescue
training
in
the
UK.
UK
-‐
Justice &
Secure
Services
The
acquisition
further
expands
and
complements
Capita’s
existing
capability
in
the
emergency
services
market
23/10/12
Medicare
First
Ltd
Medicare
First
is
a
social
work
recruitment
consultancy
providing
locum
qualified
social
workers
throughout
UK.
UK
-‐
Workplace
Services
It
provides
natural
synergies
with
Capita’s
existing
social
care
locum
business.
Source:
Capital
IQ,
Company
Website,
MarketLine
M&A
Overview
Latest
Acquisi=ons
to
date
