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" Capita Capita H1 2026 Results August 2026
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2 “Better Capita” is re-writing the BPO playbook supporting a fundamentally changed investment proposition To view this video online please visit: https://capita.wistia.com/medias/vaq1akf6qt/
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3 CEO Adolfo Hernandez
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4 Disclaimer This presentation and any oral information or accompanying materials provided in connection with it (together, the “Materials”) have been prepared solely for informational purposes for the shareholders of Capita plc (“Capita”), and not for any other purpose or for any other person. Neither Capita, nor any of its affiliates, and none of their respective Directors, officers, employees, agents and advisers, makes any representation or warranty, express or implied, in relation to the accuracy or completeness of the information contained in the Materials, or accepts or assumes any responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) to any person in respect of them save as would arise under English law. The Materials are based on the knowledge and information available to Capita’s Directors at the date it was prepared and therefore facts stated and views expressed may change after that date. Certain statements contained within the Materials may constitute forward-looking statements for the purposes of applicable securities laws regarding Capita’s business, financial position and results of operations, the current expectations, beliefs or opinions of the management of Capita and/or statements concerning risks and uncertainties relating to Capita’s business. Forward-looking statements may be identified by the words "anticipate", "believe", "intend", "estimate", "expect", “may”, “would be”, “seek”, “target” and words of similar meaning. Although Capita’s Directors believe the expectations reflected in such forward-looking statements are reasonable, those statements involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur and which may cause actual results and developments to differ materially from those expressed, projected or implied by those forward-looking statements and/or forecasts. Forward-looking statements and forecasts are not guarantees of future performance and the actual outcome of the matters referred to in any such forward-looking statements and/or forecasts may differ materially from those made in or suggested by the forward- looking statements and/or forecasts contained in the Materials. No representation or warranty is made that any of the forward-looking statements or forecasts will come to pass or that any forecast results will be achieved, or as to the reasonableness of any such forward-looking statements or forecasts. You are cautioned not to place any reliance on such statements or forecasts. The forward-looking and other statements and forecasts speak only to the belief of Capita’s Directors as at the date of the Materials. Neither Capita, nor any of its affiliates, and none of their respective Directors, officers, employees, agents and advisers, undertakes or accepts any obligation or responsibility to prepare or release any update of, or revisions to, any forward-looking statement, forecast, opinion (which are subject to change without notice) or any other information or statement contained in the Materials, or to correct any inaccuracies in the Materials which may become apparent. No statement in the Materials is intended as a profit forecast or a profit estimate and no statement in the Materials should be interpreted as such, or to mean that earnings per Capita share for the current or future financial years would necessarily match or exceed the historical published earnings per Capita share. The Materials do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or any other securities in Capita or any other company.
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Continued progress and delivery to becoming the leading AI-enabled business services partner • Continued idea origination and innovation throughout organisation with Group’s AI Catalyst Lab Efficiencies Technology • First European BPO to launch Storefront on AWS Marketplace • 500 AI agents live across Group; increasing productivity • £250m annualised cost savings delivered by the end of 2025 • £40m annualised savings to be delivered by the end of 2027; as at 30 June action taken to deliver £8m annualised savings • Embedded cost conscious culture as we move to next phase of transformation journey Delivery • KPI performance maintained around 90%* • Agreed and completed sale of private sector contact centre business – allowing significant strategic simplification • CSPS remediation plan underway Company • Launched phase 2 on “Celebrate!” recognition platform, including financial recognition • Increased data & AI training, upskilling colleagues and building AI literacy • Launch of Forward Deployment Orchestrator with Salesforce Forward Deployment Engineer programme • Continue to embed culture change activity • Total contract value £1bn; £24bn unweighted sales pipeline H1 2026 Results Summary - Group • Positive free cash flow expected to be delivered in 2027 *excluding Civil Service Pension Scheme Adjusted revenue: £906.4m H1 2025: £892.2m Adjusted operating profit: £32.2m H1 2025: £47.1m Adjusted operating margin: 3.6% H1 2025: 5.3% Free cash flow, excluding business exits: £3.5m H1 2025: £25.2m 5
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H1 2026 Results Summary 6 Capita Public Service 80% of Group revenues KPI performance maintained around 90% Best Total Contract Value (TCV) won performance in H1 since 2021, secured contracts with value of £801m cNPS improvement in four consecutive years to +37 points 100% renewal rate delivered in the first half Strong start to July with Transport for London contract renewal with TCV of £425m Celebrated 5 year partnership delivering Royal Navy training Using AI agents across the division to drive efficiency and quality services e.g. on Troubles Permanent Disablement Payment Scheme Pension Solutions 12% of Group revenues Total Contract Value won up over 100% in the first half of the year 99% win rate in first half, up from 94% in the prior year 22 Triennial Valuations completed for clients Over 7 million scheme members served Delivered 99 communication projects for clients 94% KPI performance across division (excluding CSPS) CSPS remediation plan underway Positive engagement with Hartlink Online Platform
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Capita has undergone significant transformation to unlock value… Now a leaner organisation with platform to deliver Well progressed in vision to be the first AI led BPO Highest ever Group cNPS; improving win rates & £24bn unweighted pipeline Comprehensive cost out program transforming how we operate, organise and deliver Delivered annualised cost savings of £250m and built transformation muscle supporting continuous discipline Generate free cash flow CAIPO org systematically deploying tech – hyperscaler partners; AI Catalyst Lab, AI Catalyst stack, combined with Human in the Loop Launching and scaling first AI solutions with customers People strategy to support vision - increased accountability, innovative culture, sales effectiveness Transformhow BPO operates in public and private sector Trusted sovereign partner to regulated & public industries in capturing benefits from AgenticAI Developing a future state operating model: • Simplified • Agile • Automated Blueprint for Capita’s agentification (internally & customers) Cost & EBITDA transformation to fund the journey Innovation& ways of working to launch and scale solutions Future state operating model Future growth Done Ongoing Positive free cash flow, before business exits, in 2027 7
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…and significant simplification of the Group which continued in H1 2026 8 Closed book Life & Pensions • Announced final client agreement reached December 2025 • Continued progress in hand back and transition activities Organisational and cost simplification • Unlocked significant savings as we simplify the Group • £250m savings now delivered • Private sector contact centre disposal - on track to deliver £40m annualised across 2026 and 2027; of which action taken to deliver £8m Private sector contact centre disposal • Announced March 2026; completed 31 July • Allows Group to focus on complex, differentiated middle and back-office services in public & regulated markets • Doubling down on large growing markets Now focused on two structural growth markets – Public Sector (80% of Group revenue) and Pension Solutions (12% of Group revenue)
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Financial Review H1 2026 Performance All figures included within this presentation are on an adjusted basis unless otherwise stated 9 CFO Pablo Andres
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Financial highlights Margin reduction driven by pensions remediation costs Revenue growth in Public Service and Pension Solutions, partially offset by a decline in Regulated Services driven by the non-repeat of a £19m prior year contract exit benefit, and a marginal decline in retained Contact Centre Operating profit reduction reflects the additional costs incurred on the CSPS contract and non-repeat of £6m benefit from 2025 contract exit fee, partly offset by savings delivered through the cost reduction programme in 2025 Profit before tax decreased due to lower operating profit and higher finance costs from higher average net debt Decline in cash conversion due to continued investment in CSPS, contract mobilisation costs, prior year favourable timing and completion of a major contract milestone within Public Service Free cash flow reflects the flow through of reduction in profits and lower cash conversion Net financial debt (pre-IFRS 16): EBITDA ratio 1.6x at 30 June 2026 1. Net debt includes £200m of financial debt, £299m IFRS 16 leases, and excludes £94m lease receivable asset 10 ChangeHY25HY26£m 1.6%892.2906.4Revenue (31.6)%47.132.2Operating profit (170)bps5.3%3.6%Operating margin (57.0)%29.112.5Profit before tax (PBT) n/a(6.1)13.4Earnings per share (EPS) (pence) (19.5)%73.959.5EBITDA (31.4)%82.956.9Operating cash flow (16.6)%112.2%95.6%Cash conversion (86.1)%25.23.5Free cash flow (87.5)(412.2)(499.7)Net debt1 (113.4)(87.0)(200.4)Net financial debt (pre-IFRS 16)
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Adjusted to reported reconciliation Lower costs associated with the 2025 cost reduction programme Business exits includes costs related to the disposal of the private sector contact centre business Incurred £4m of costs in relation to the ongoing simplification programme in 2026 Net finance costs reflect our hedging valuation movements 11 ChangeHY25HY26£m (16.6)29.112.5Adjusted profit before tax 8.8(10.9)(2.1)Business exits (4.1)-(4.1)Simplification programme 16.5(16.5)-Cost reduction programme (4.5)3.0(1.5)Net finance (expense) / income 2.3(3.0)(0.7)Cyber incident 2.41.74.1Reported profit before tax (continuing operations)
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Capita Public Service (80% of Group revenue) Operating margin Increased volumes in Local & Regional Partnerships transactional business and on the Disabled Students Allowance contract Growth in the Transport for London contract, including Silvertown Tunnel programme Partly offset by the flow through of prior year contract losses and lower recoveries on the Smart DCC contract Increase of cost allocation due to pensions profit reduction impacting margin by 0.5% Flow through of prior year contract losses and lower cost recoveries on the Smart DCC contract Annualisation of cost savings initiatives from the prior year Other includes continued investment in AI, hyperscalers and data capabilities, and timing of insurance recoveries Operating margin (10)bps EBITDA and cash conversion 8.0% 7.9% Revenue +2.4% Steady growth in revenue Cash conversion reduction reflects, timing of cash receipts on a large contract milestone, unwind of favourable timing of receipts in 2025 and mobilisation costs on the Synergy Business Process Services contract 12 ChangeHY25HY26£m 2.4%711.8729.2Revenue 0.9%57.257.7Operating profit (10)bps8.0%7.9%Operating margin 2.2%72.373.9EBITDA (28.5)%52.237.3Operating cash flow (21.7)%72.2%50.5%Cash conversion
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Capita Experience – Pension Solutions (12% of Group revenue) Impact of the CSPS contract Increased volumes on our existing contracts Revenue +24.7% Significant remediation of the Civil Service Pension Scheme contract Additional costs on the CSPS contract as we resolve the operational issues Other includes lower consulting volumes due to redeployment of resources to CSPS contract Partially offset by lower cost allocations driven by reduction in profits Flow through of additional costs on the CSPS contract Cash conversion includes investment in CSPS, offset by the receipt of a 2025 delayed milestone payment and favourable timing on working capital EBITDA and cash conversion Operating loss £(3.6)m Operating margin 11.3% (3.4)% 13 ChangeHY25HY26£m 24.7%86.1107.4Revenue n/a9.7(3.6)Operating profit (1,470)bps11.3%(3.4)%Operating margin (85.0)%13.32.0EBITDA (41.9)%9.35.4Operating cash flow 200.1%69.9%270.0%Cash conversion
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Capita Experience – Retained Contact Centre (7% of Group revenue) Reduction in revenue reflects lower project work and the accounting impact of the extension of a major contract Revenue (6.0)% Reduced margins driven by revenue headwinds Flow through of lower revenue Other includes continued investment in AI, hyperscalers and data capabilities, and higher cost allocations Partly offset by savings delivered through the cost reduction programme in 2025 Cash conversion driven by the usual receipt profile on a major contract EBITDA and cash conversion Operating profit (63.6)% Operating margin 4.6% 1.8% 14 ChangeHY25HY26£m (6.0%)71.467.1Revenue (63.6)%3.31.2Operating profit (280)bps4.6%1.8%Operating margin (43.8)%8.04.5EBITDA (0.5)%44.043.8Operating cash flow 423.3%550.0%973.3%Cash conversion
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Cash flow Reduced cash driven by pensions and year end timing of cash flows Operating cash flow impacted by reduced EBITDA and lower inflow in net deferred income and CFA. High conversion in first half driven by the usual receipt profile on a major contract Reduced deferred income and CFA reflecting timing of cash receipts on a major contract milestone, unwind of favourable timing of receipts at year end and ongoing investment in CSPS and Synergy contracts Non-cash and other adjustments include movement in provisions and non-cash items £2m incurred on the recently announced simplification programme 15 HY25HY26£m 73.959.5EBITDA 61.332.8Net deferred income and CFA (45.3)(37.5)Other working capital (including AR and AP) (7.0)2.1Non-cash and other adjustments 82.956.9Operating cash flow 112.2%95.6%Operating cash conversion -(1.9)Simplification programme (15.4)(2.1)Cost reduction programme 1.1(1.5)Cyber incident 68.651.4Cash generated from operations excluding business exits
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Cash flow and net debt movement Reduced cash generated from operations mostly driven by pensions Capital expenditure reflects continued investment in our contract delivery with new technology solutions and cyber capabilities Increased interest paid reflects higher net debt during 2026 Tax paid driven by timing differences Net debt includes £200m of financial debt, £299m IFRS 16 leases, and excludes £94m lease receivable asset Lease liability includes £15m related to the private sector contact centre business classified as discontinued operations 16 HY25HY26£m 68.651.4Cash generated from operations excluding business exits (13.0)(15.4)Net capital expenditure (18.8)(20.2)Interest paid 0.9(0.9)Tax (paid) / received (12.5)(11.4)Net capital lease payments 25.23.5Free cash flow excluding business exits FY25HY26£m (143.4)(200.4)Net financial debt (pre-IFRS 16) (318.2)(299.3)Lease liability (461.6)(499.7)Net debt 96.693.9Lease receivable (365.0)(405.8)Net debt including lease receivable
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Liquidity & net debt FY25HY26£m 250.0325.0Revolving credit facility (RCF) -(47.0)Less: drawing on committed facilities 250.0278.0Available committed facilities 79.472.7Net cash less restricted cash 329.4350.7Total liquidity In June 2026, the Group extended and increased its RCF to £325m, replacing the previous RCF (£250m) and additional committed facility (£75m), and extending the expiry date of the facility to June 2029 (including the option for two additional one- year extensions) In July 2026, the Group issued £41m equivalent of US private placement loan notes maturing in July 2029, and repaid £84m of maturities Net financial debt to EBITDA ratio (both pre-IFRS 16): 1.6x at 30 June 2026 (31 December 2025: 1.0x) PPNs are net of swaps RCF increased and extended, strengthening liquidity 17 RCF maturity
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Order book1 bridge 1. Order book represents the consideration which the Group will be entitled to receive from customers when the Group satisfies the remaining performance obligations in the contracts. Excludes non-contracted volumetric revenue and scope changes, contract extensions (unless pre-priced), revenue from frameworks and transactional businesses 2. Excludes Transport for London win worth £425m over five years which was contracted in July 2026 Relevant to approximately 76% of H1 revenue Additions in HY26 include wins of the Synergy Business Process Services and Army Collective Training System contracts, a renewal with a major client within Pension Solutions, and expanded scope on the Primary Care Support England contract Regulated Services includes the closed book Life & Pensions contracts, the results of which are presented within business exits Private sector contact centre is excluded as it meets the criteria of discontinued operations Forward profile of net wins, scope changes and indexation 2 TotalRegulated Services Contact Centre Pension Solutions Public Service £m FY25HY26FY25HY26FY25HY26FY25HY26FY25HY26 3,765.34,010.9106.5108.3473.6430.9465.1530.92,720.12,940.8Order book HY26 Order book by Division 18
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2026 outlook, in line with expectations Revenue Free cash flow Operating margin • Expect revenue to be broadly flat overall • In line with previous guidance. Reduction in margin reflecting additional costs on the CSPS contract and residual overheads as the business transitions to a simpler operating model Net debt • Increase reflecting free cash outflow and outflows associated with disposal of private sector contact centre business and closed book Life & Pensions hand backs • Free cash outflow before impact of business exits of between £35m –£50m, reflecting increased costs associated with the CSPS contract, post mitigating actions across the Group • Strong cash flow performance in Public Service 19
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20 CEO Adolfo Hernandez
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Resilient structural growth markets in which we have leading positions... 2030 market size in £ Total Addressable Market (TAM): c. £155bn Broader UK Public Sector Services (BPO and ITeS) and Regulated Industry (BPO and ITeS) Total Addressable Market (TAM): £5bn+ UK DB Pensions Revenue Pool Serviceable Addressable Market (SAM): c. £50bn Serviceable Addressable Market (SAM): c £2.75bn IT-enabled Services (ITeS)/BPO market Pensions market Source: Gartner; Oxygen; OC&C 2025; BCG analysis 21 Core: £15bn with high maturity of service offering Core: £0.85bn mid / large DB admin & consulting spend IT-enabled services/BPO market growth rate to 2030, SAM 4.5% Pensions market growth rate to 2030, SAM 5.0%
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We are the No 1 strategic supplier to UK government (Public Service: 80% of Group revenue) 22 Differentiated value-creating AI opportunity • New Prime Minister agenda - increased scrutiny of old style basic outsourcing creates an opportunity for Capita – the public sector needs to boost productivity and we are a trusted partner for AI enabled service reform, devolution delivery and workforce productivity • We understand public-sector operations better than tech firms, while applying AI more effectively than traditional outsourcers • Consultants help governments design transformation. Capita helps governments run transformed services Not building AI from scratch, acting as an orchestrator integrating existing best-in- class technology: • Internally/client zero proven-AI deployment at scale • Outcome-accountability commercial model • UK-onshore delivery aligned with government’s stated preference Strong competitive positioning in the UK UK No.1 strategic supplier of SITS1 & BPS1 to UK Government Barriers to entry/part of the Capita “moat”: • Deep public sector domain expertise • Multi-decade experience running complex/ end-to-end, regulated operations at scale • Upfront transformation investment, revenue profit and cash flow builds over time • Long duration contracts £23.5bn pipeline of opportunities today £1.5bn annual revenue in 2025 c.8% adjusted operating margin 1. Source: TechMarketView Public Service revenue split by vertical: Local & Regional Partnerships Central Government Defence & National Preparedness
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Capita’s alignment with UK Government’s agenda 23 Government priority Government’s first initiatives Capita Public Service propositions / existing contracts Radical devolution of powers Empowering mayors & combined authorities; rewiring Whitehall delivery to the regions; regional shared services Local Public Service delivery; Revenues & Benefits; AI-led shared services (Catalyst Stack); Driving productivity Affordable housing surge Biggest council housebuilding since the post-war era on public land; cutting the housing-benefit bill; faster land release Planning & place; Housing Benefit / Revenues & Benefits Skills & Employability Parity for technical/vocational routes; guaranteed youth work placements; reducing NEETs; 16–18 free bus travel Capita Learning / apprenticeships; Employability; Flexible working schemes with DfE, NEETS A leaner, higher-productivity state "Good growth" & regeneration; more delivery for less; automating high-volume public services AI-led BPO driving productivity; Intelligent document & mailroom processing Welfare reform & social care Reforming assessments & conditionality; more support into work; substantial social-care change Functional Assessment Service; Into-work / Employability; Agentic AI Defence, resilience & Buy British Fully funding the Defence Investment Plan; Buy British / social-value weighting; national resilience National Programmes; Royal Navy training; ACTS; Defence resilience & recruitment support
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24 A simplified Group: what we offer Capabilities delivering more predictable outcomes Citizen Services Assessment Services Pension Administration Operational Services Workforce Services Frictionless citizen engagement that builds trust and satisfaction Streamlining case-based assessments, collections and disbursement Pension administration and consulting services; focused on defined benefit schemes Freeing organisations to focus on core service delivery through efficient, compliant operations Creating future ready public service teams AI & Automation enablement Driving smarter outcomes through AI-powered BPO innovation Secure, digital-first solutions powering public service innovation Supported by technology and delivered by skilled, experienced people
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Our position in value chain and business model Value in AI services 70 20 10 Source: BCG view Capita’s value chain Our moat is knowing how processes really work Point AI solutions cover a narrow part of the stack • Applications • AI models • Infrastructure Capita’s moat Adoption & change Works with employees to embed change Deep process knowledge Understands workarounds and exceptions Human oversight Provides judgement in regulated work Uses technology to deliver efficiency Better outcomes Lower risk Sustainable advantage Technology Operational knowledge Human oversight Better outcomes 25 People and process Technology Algorithms
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Capita has been investing for over 2 years to be ready to win Our strategy is aligned with the market shift to governed, outcome-led human-agent operations The key now is commercial conversion 26 Jun 2024 AI strategy at CMD CapitaContact with AWS Jul 2024 Launch of AgentSuite Feb 2025 AI Catalyst Lab Jun 2025 200+ AI use cases Oct 2025 AI Catalyst Stack Mar 2025 AI-led BPO narrative; active agents and AI-enabled ops Jul 2026 Forward Deployed Orchestrator (FDO) Capita moved broadly in step with the market, building capabilities as the operating model evolved Capita journey Built real operating assets • AI Catalyst Lab, Stack and AgentSuite are concrete capabilities • Not just commentary: packaged tools and operating methods 2Aligned with market direction 1 • Moved from augmentation to orchestration • Public narrative evolved in line with the wider market Human-in-the-loop is the expected model • FDO matches buyer expectations for governance, outcomes and accountability • Avoids the failed pure- replacement story 3 Strength in complex regulated process • Capita is concentrating middle and back-office work • This is where orchestration, domain depth and accountability matter most 4 Capita future 2026: Human-agent operating model Governed AI + people + automation becomes the expected model 4 Market evolution: from point tools to governed, outcome-led human-agent operations Market evolution 2024-2025: Provider productisation Platforms, vertical models and accelerators launched across the market 2 2025: Orchestration reality Point agents alone are not enough; end-to-end process design matters 32024: AI disruption anxiety Fear that agents would displace outsourced service work 1
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The investment in efficiency and technology is helping better delivery and building a growth platform Total contract value won in H1 £1bn Unweighted pipeline £24.4bn KPI performance maintained around 90% Maintaining our delivery record Win rate across all opportunities 84% Up from 82% in H1 2025 Pipeline opportunities for H2 2026 and 20272026 wins Major renewal in Pensions worth 27 Strongest performance in Public Service since 2021 Pipeline continues to increase as we review opportunity sets *revenue commencement expected H2 2027 £137m * £425m secured in July * £36m secured in July
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Adjusted to reported reconciliation Lower costs associated with the 2025 cost reduction programme Business exits includes costs related to the disposal of the private sector contact centre business Incurred £4m of costs in relation to the ongoing simplification programme in 2026 Net finance costs reflect our hedging valuation movements 28 ChangeHY25HY26£m (16.6)29.112.5Adjusted profit before tax 8.8(10.9)(2.1)Business exits (4.1)-(4.1)Simplification programme 16.5(16.5)-Cost reduction programme (4.5)3.0(1.5)Net finance (expense) / income 2.3(3.0)(0.7)Cyber incident 2.41.74.1Reported profit before tax (continuing operations)
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Supported by our technology, hyperscaler partners and operational excellence New Capita AI & Product Office team investing since 2025: AI Catalyst stack Integrated platform leveraging hyperscaler partner technology AI Catalyst lab Innovation engine to drive change throughout organisation Partner achievements: 29 • First European BPO to launch on Storefront with 20 outcome led products • Amazon Connect Service Delivery accreditation achieved • Achieved Snowflake Select Partner status • Agreement to modernise data infrastructure • Microsoft Solutions Partner designation renewed (Data & AI, Digital & App Innovation, Infrastructure and Security) • Significant growth in Co-pilot actions, 575k monthly interactions with 46,000 assisted hours • 5 Microsoft Marketplace listings deployed • Progressed to Select partner status • Strategic Collaboration Agreement to deliver Agentforce and MuleSoft Integration • Strong progress in building analytics layer into Finance & Operations • Early adoption internally
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Using Capita internally as client zero - AI/Tech is delivering operational efficiency, workforce readiness and scalable AI adoption AI-led workforce assessment, training and upskilling • Supports assessment and training for 2,000+ specialists for a large health assessment client. Generated ~788 quizzes and delivered ~8,000 assessment questions • Completed 17,000+ minutes of assessment activity • Quiz creation now takes under one minute at approx. £0.0005 per quiz, significantly reducing 2 days of specialist effort • Voice-based training builds learner confidence and engagement- a safer space to ask questions without fear of judgement Agent support, compliance adherence and quality improvement • Developed a real-time AI assistant that gives colleagues in-the-moment guidance before work reaches review stages. Building on existing quality assurance capabilities that reduced reported quality issues by 86%, the solution improves quality, consistency and compliance at the point of delivery Scale / internal AI readiness & upskilling • 497 AI agents deployed across 12 capability categories, supporting thousands of employee interactions across knowledge retrieval, workflow automation, content generation and analytics. Creates a scalable AI operating capability across Capita 30 Area Metric Progress as at end July 2026 AI-powered assessments & alignment platform (Assure Hub) and voice-based training companion Real-time quality & compliance assistant AI Registry Proves AI internally before market launch, reducing implementation risk and accelerating client adoption
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*NEW* Forward Deployment Orchestrator Orchestrating best in class technology and measurable benefits of AI 31 MIT 2025 study of enterprise generative AI found that 95% of organisations see no measurable impact on business” “McKinsey reported fewer than one in ten organisations have scaled AI agents in any single function 1. Intake & capture 2. Triage 3. Data enrichment 4. Routing 5. Assessment 7. Human Review 8. Action & output 6. Decision The process: Launching Forward Deployment Orchestrator 1. Observe Process intelligence on how systems work 2. Deploy Design and build operating model with agent-enabled workflows 3. Orchestrate Compose people, agents and platforms 4. Operate Run and own outcome Value Creation
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Better company 32 Capita delivers a range of employability programmes designed to support people and take positive steps towards employment: Responsible business, driven by our values Responsible AI Principles & Charter Case Study: Employability Supporting young people through work experience Building skills and confidence for those facing complex barriers 91 young people supported through digital employability pilot 100 paid work experience placements with clients Department for Work & Pensions and Transport for London Military spouses talent pool launched Local initiatives supporting local communities Group attrition at 17% 30,838 completed instances of AI and Data learning through live virtual sessions, self-led digital content, and hyperscaler learning
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first, always Customer innovation Fearless Achieve together valued Everyone is Values Technology and AI Driven Transformation Financial Strength and Value Creation Operational Efficiency and Cost Discipline Strategic Growth and Market Positioning Responsible Business People, Culture and Capability Strategic initiatives Capita - the leading AI enabled Business Services Partner Vision Creating better outcomes PurposeStrategy Unlocking Value Together Better Technology Better Efficiencies Better Delivery Better Company 33 Driving an improvement in financial performance
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Appendix 34
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Capita 2030 | We are addressing key AI adoption blockers in public sector In the futureActivity to dateKey adoption blockers • Proposition rationalisation and re-development to demonstrate AI benefits • Align to Group AI upskilling programme showing demand volumes to move to wider implementation • External rollout of AI training proposition • Digital Transformation in contract activity • Legacy integration thought leadership • Internal training rollout for AI tools • Learning Services development of AI training content • Development of the multi agency data sharing proposition Legacy IT & Data Silos Digital Skills Gap • Expand talent & skills programme • Explore contract lifecycle management systems • Development of standard contract libraries • Improving small to medium contract process management • Continuous commercial shaping through client workshops and thought leadership • Managing changing commercial terms through renewal / rebid negotiations Traditional bid requirements Change control restrictions Understanding AI commercials • Continue Sales upskilling through to deepen product & commercial knowledge • Expand Account Management best practice to target client pain-points • Expand proposition and market development activity for specific pain-points • Continued case studies to demonstrate AI in action for good • Continuing thought leadership, AI innovation workshops, demonstration of capabilities with Cabinet Office • Targeting pain-points for current contracts across Group • Set up new Account Management Function • Developed through transparent business cases, customer zero activity & client co-creation through innovation workshops Target areas of highest concern Fragmented Dep’t co- ordination Ethical Concerns Transformation Challenges Commercial Challenges Adoption Levers 35
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Forward Deployment Orchestrator benefits Commercial conversion has started: live client economics 92% of conversations resolved end to end by AI UK broadcaster WhatsApp channel: 12,000+ conversations a month, handling time down from 29 to 14 minutes. Industry best practice runs at 70 to 90% 80% first-time resolution, a 2.5x uplift Under 1 minute to clear a straightforward regulated application, from 4 days On a client in central government, an AI operator runs 26 authenticity checks with a full audit trail. It clears within defined rules or refers to a person Up to 6.5 hrs saved on complex tax cases HMRC automation unified data across 20+ systems and 18m cases a year, with 105 FTE redeployed to higher-value casework 43% cut in candidate screening time Capita recruitment, 1,000+ hours saved in the first four months Local government Contact.AI deployment, live January 2026, with the containment rate doubled 36
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Example: AI-Led Customer Service on WhatsApp 37 Large UK Broadcaster deploying Capita Contact.AI to run WhatsApp as a customer service channel. It now handles over 12,000 conversations a month, with the majority resolved without a human agent. 92% Resolved by AI entirely automated; 70–90% is the industry best-practice range 4.33/5 Customer Effort Score 82% rated 4–5 of 5 52% Lower handling time Average Handling Time down from 29 min to 14 min from Apr to May 2026 12,000+ Conversations / month supported by a team of 95 FTEs Capita Contact.AI is an AI-led, omnichannel contact centre solution spanning voice, chat, email and messaging, built on Amazon Connect. WhatsApp is one of its messaging channels. The same platform extends to voice and web chat under one operating model. PLATFORM CHANNELS Voice Chat Messaging Deployment shown: WhatsApp messaging channel. How it fits: Capita Contact.AI
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2026 modelling assumptions Depreciation & amortisation Total charge c.3.5% of revenue Working capital In line with previous guidance Non-cash and other adjustments In line with previous guidance Cash tax In line with previous guidance Net capital lease payments Continued reduction in 2026 reflecting reductions in property footprint. Interest on lease liabilities included in both P&L and cash interest Capex Reduced investment reflecting our hyperscaler and cloud-based strategy Total spend: £30mto £40m Cash interest Low to mid-single digit increase compared to 2025, in line with average net debt increase P&L interest Low to mid-single digit increase compared to 2025, in line with average net debt increase 3838
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2026 outlook, in line with expectations Revenue Free cash flow Operating margin • Public Service: broadly flat revenue, reflecting impact of previously announced losses and contract wins in 2026 which commence in the second half of 2027 • Retained Contact Centre: low single digit revenue reduction, reflecting impact of lower project work and the accounting impact of the extension of a major contract • Pension Solutions: mid-teen growth, as previously expected • Regulated Services: decline driven by non-repeat of prior year one-off benefit in the Mortgage Software business • Public Service: operating profit consistent with the prior year; operating margin maintained at c.8% • Retained Contact Centre: margin reduction reflecting the above mentioned revenue reduction • Pension Solutions: operating loss reflecting additional costs associated with the CSPS contract and remediation • Regulated Services: expected to be broadly breakeven Net debt • Increase reflecting free cash outflow and outflows associated with disposal of private sector contact centre and closed book Life & Pensions hand backs • Free cash outflow before impact of business exits of between £35m – £50m, reflecting increase costs associated with the CSPS contract, post mitigating actions across the Group • Strong cash flow performance in Public Service 39
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Divisional overview 40 Key items by division: • Public Service – small increase in revenue year-on-year. Slight reduction in margin reflecting flow through of prior year contract losses, lower cost recoveries on the Smart DCC contract, continued investment in AI, hyperscalers and data capabilities, and an increase in the allocation of central functions costs as a consequence of the reduction in operating profit in Pension Solutions, partly offset by savings from the cost reduction programme. Operating cash flow impacted by prior year completion of a major contract milestone, unwind of favourable timing of receipts in 2025 and mobilisation costs • Pension Solutions – increased revenue reflecting the CSPS contract. Operating loss in 2026 driven by additional costs associated with the CSPS contract, partly offset by lower allocation of central functions costs as a consequence of the reduction in operating profit. Decrease in operating cash flow reflected the additional costs on the CSPS contract. The improved operating cash conversion reflects receipt of a 2025 delayed milestone payment • Retained Contact Centre – revenue reduction reflecting impact of lower project work and accounting impact of extending a major contract. Reduced margins driven by flow through impact of revenue, continued investment in AI, hyperscalers and data capabilities and higher cost allocations, partially offset by cost savings. Increased cash conversion driven by usual phasing of significant cash receipts from a customer • Regulated Services – overall reduction in financial performance driven by non-repeat of one-off benefit in 2025 arising from a contract exit • plc – operating profit benefits from the cost reduction programme. Note that the central functions costs that were allocated to the private sector contact centre business within the Contact Centre segment have been reallocated to the Capita plc segment. These stranded costs are being addressed as part of the £40m cost saving programme by the end of 2027. The reduction in operating loss reflects savings delivered by the cost reduction programme, together with benefits realised from lease modifications. Increase in operating cash outflow reflects the repayment against the non-recourse trade receivables financing arrangement and timing of supplier payments 40
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Capita Experience – Regulated Services (0.3% of Group revenue) 4141 Non-repeat of £19m one-off benefit in 2025 arising from a contract exit Revenue (88.2)% Non-repeat of £6m net benefit from termination fee received from 2025 contract exit Partly offset by savings delivered through the cost reduction programme in 2025 Operating profit £0.5m EBITDA and operating cash flow largely reflects flow through of profits EBITDA and cash flow Includes one remaining business, Mortgage Software, being managed for value Operating margin 24.5% 18.5%
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Revenue bridge by driver 42
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Contact CentresUsers Ops teams Exec MI Portals Mobile Partner APIs Process Observability (capture, mining, conformance, ROI) BPO Delivery Better execution (SLAs, Playbooks) Capita Internal Continuous improvement Public Sector OaaS Observability-as-a-Service (Discovery, Evidence, ROI) Data Management & Intelligence Lakehouse | Pipelines | Semantic Layer Orchestration & Integration MCP | A2A | API Mesh | Connectors APIs/Events │ Feedback/telemetry │ Agent Actions Evidence │ Patterns │ KPIs │ Events Low-code Agents | Workflows | Templates | Guardrails Pro-code Custom Agents | Workflows | Templates | Guardrails Cross-Cutting: Identity • Sec/Gov • FinOps (policies, RBAC, audit, data residency, cost controls) Data/Signals (desktop, logs, RPA, ERP/CRM, tickets, voice/text) Cloud Foundations (network, landing zones, KMS) 43 Integrated platform leveraging hyperscaler partners' technologies to automate business processes, combining process observability, rapid AI build and deployment, secure orchestration, and trusted data management Capita AI Catalyst Stack - “Process First” Agentification Engine
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Glossary of terms Term Definition Operating cash conversion Book to bill Win rate Calculated as operating cash flow excluding business exits divided by adjusted EBITDA This is the ratio of TCV sold in the year / external revenue Win rate is the proportion by value of contracts won as a proportion of those we bid for 44