AGM Statement and Trading Update

12 May 2015 Capita plc - AGM statement and trading update Capita plc (`Capita'), the UK's leading customer and business processmanagement services company, is holding its Annual General Meeting today and isissuing the following trading update statement covering progress to date in2015. Summary Capita has made an encouraging start to 2015, having secured £1.2bn (May 2014:£1.1bn) aggregate contracts and acquired 7 businesses for a combinedconsideration of £215m. All of the completed acquisitions have been integratedinto the group and we are pleased with the initial performance of avocis, ourlargest transaction to date. As anticipated in our full year results statement issued on 26 February, weremain on track to deliver low double digit revenue growth and meet consensusexpectations for the full year. Organic growth, sales and business development We expect mid-single digit organic growth in 2015, net of attrition, driven bythe combination of new contracts announced in the year to date, the fullbenefit from 2014's contract wins and growth from the divisional businesses. Our bid pipeline, last reported at £5.1bn on 26 February, remains buoyant inboth the private and public sector. Behind this we have a substantive prospectlist, with a number of bids which will reach their short list phase and feedinto our pipeline over the course of the year. There are no material (definedas 1% of group revenue) contracts up for renewal until 2019. To date in 2015, we have secured contracts with an aggregate value of £1.2bnincluding a contract to deliver services to the Department for Environment,Food & Rural Affairs (Defra) as part of our joint venture with Defra to operatethe Food and Environment Research Agency (Fera), being selected as preferredbidder by Central London Community Health Trust and the extension and expansionof our existing service delivery contract with Sheffield City Council. We announced today that we have been selected as preferred bidder to providecorporate services for Central London Community Health Trust, including ICT, HR(payroll and recruitment), estates and facilities management, followed by theplanned delivery of finance services. The contract is expected to be worth £80mover 10 years. We formed the Fera joint venture with Defra in March, which includes a 10 yearservice agreement with Defra, a 10 year sole supplier framework for other Crownbodies worth up to £150m per annum and a sizeable opportunity to grow thebusiness by providing more high end science services to the commercial sector.Fera is expected to achieve £700m revenue over its first 10 years. In February, Capita was approved by NHS England to join the new Lead ProviderFramework for Commissioning Support Services, under which £3-5bn of servicessuch as finance, HR and GP IT are expected to be procured. A number ofprocurement opportunities have already commenced under the Framework. Value enhancing acquisitions Capita has acquired 7 companies to date in 2015 for a total consideration of £215m, including avocis and Scholand & Beiling in DACH (Germany, Switzerland andAustria) and Constructionline. Our DACH businesses have made a good start since we completed the acquisitions.We are in early discussions with a number of potential clients in the region,confirming our view that there is significant growth potential there forcustomer contact management services. We have acquired four smaller companies to enhance our capabilities since thefull year results, with combined annual revenue of £35m, for an aggregateconsideration of £22m. Voice Marketing is an outbound customer managementbusiness which complements our current inbound and customer care services inCustomer Management & International. Sigma Seven is a specialist provider ofmobile field worker software which complements AMT Sybex. ThirtyThree is aleading employer branding, communications and digital media specialist, whichenhances our managed services recruitment offering within Workplace Services.Finally, BCS specialises in the design of civil and structural engineeringprojects and expands our existing transport specialism within Property &Infrastructure. Outlook We have good visibility and remain on track to deliver low double digit revenuegrowth and meet consensus expectations in 2015, supported by contract wins andacquisitions announced in the year to date and the full year benefit from thosecompleted in 2014. The market for customer services and business processmanagement is large, remains active and provides a good platform for growth inthe UK and increasingly Northern Europe over the medium to long term. Interim Management Statements Following changes to the rules applicable to UK listed companies to bring themin line with the EU Transparency Directive, henceforth Capita will not bemaking Interim Management Statements. However, in addition to this AGMstatement, Capita will provide a trading update toward the year end on anongoing basis. -Ends- For further information: Capita plc Tel: 020 7654 2219Shona Nichols, Corporate Communications DirectorAndrew Ripper, Head of Investor Relations Capita press office Tel: 020 7654 2399 About Capita Capita plc is the UK's leading provider of customer and business processmanagement (BPM) and integrated professional support service solutions. With68,000 people at over 400 sites, including 80 business centres across the UK,Europe, India and South Africa, the Group uses its expertise, infrastructureand scale benefits to transform its clients' services, driving down costs andadding value. Capita is quoted on the London Stock Exchange (CPI.L), and is aconstituent of the FTSE 100 with 2014 revenue of £4.4bn. Further information onCapita plc can be found at: www.capita.co.uk.