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Atos — Q3 2012 Earnings Presentation
32 slides from Atos's earnings presentation, Oct 25, 2012
Slide 1: Third quarter 2012
Third quarter 2012 Thursday 25 October, 2012
Slide 2: Disclaimers
Third quarter Disclaimers 2012 25 October 2012 ▶ This document contains further forward-looking statements that involve risks and uncertainties concerning the Group's expected growth and profitability in the future. Actual events or results may differ from those described in this document due to a n
Slide 3: Agenda
Third quarter Agenda 2012 25 October 2012 1. Q3 2012 Highlights 2. Q3 2012 Financial performance 3. Atos growth drivers 4. 2012 objectives 5. Q&A session 3
Slide 4: Q3 2012 Highlights
Third quarter 2012 25 October 2012 Gilles Grapinet, Senior Executive Vice President, Global Functions Q3 2012 Highlights 4
Slide 5: Q3 2012 Highlights
Third quarter Q3 2012 Highlights 2012 25 October 2012 116% 2,181 +0.2% Book to bill Revenue (EUR m) Revenue organic evolution 121% (excluding Siemens) (Q3 2011*: EUR 2,177 m) (Q3 2011: -0.3%) (Q3 2011: 96%) 15.3 +112 75,900 Backlog (EUR bn) Net cash (EUR m) Total Group number (1.7 years of revenue o
Slide 6: Main wins over the third quarter of 2012 (1/2)
Third quarter Main wins over the third quarter 2012 of 2012 (1/2) 25 October 2012 Manufacturing, Retail & Services ▶ Leading German car manufacturer (Germany): SI - Infrastructure Solution - New ▶ American automotive supplier (USA): MS - Adaptive Workplace – New ▶ Belgische Distributiedienst (Belgiu
Slide 7: Main wins over the third quarter of 2012 (2/2)
Third quarter Main wins over the third quarter 2012 of 2012 (2/2) 25 October 2012 Public sector, Healthcare &Transport ▶ Department of Work & Pensions (UK): BPO - Personal Independence Payments - New ▶ Postnord (Nordics): MS - Managed Infrastructure Solution – New ▶ Transport for Greater Manchester
Slide 8: Q3 2012 backlog evolution: a strong improvement
Third quarter Q3 2012 backlog evolution: a 2012 strong improvement (in EUR billion) 25 October 2012 EUR 15.3 B EUR 14.9 B 0.1 C & TS 0.4 year C & TS 2.2 2.5 HTTS & SB HTTS & SB 1.8 years Systems Systems Integration 1.0 year Integration 1.7 years 1.7 years of revenue of revenue Managed Managed Servic
Slide 9: Robust commercial activity 1/2
Third quarter Robust commercial activity 1/2 2012 25 October 2012 ▶ Total order entries in Q3 2012 at EUR 2,532 million, representing a book to bill ratio of 116 per cent Q3 2012 Q3 2011 YTD 2012 YTD 2011 Recurring businesses 127% 93% 123% 96% Cyclical activities 90% 103% 95% 104% Total Group 116% 9
Slide 10: Robust commercial activity 2/2
Third quarter Robust commercial activity 2/2 2012 25 October 2012 ▶ Excluding Siemens, book to bill ratio over the first nine months of the year was 120 per cent with all Verticals above 100 per cent YTD 2012* Manufacturing, Retail & Services 100% Public sector, Healthcare & Transport 134% Financial
Slide 11: A very stable and promising Pipeline
Third quarter A very stable and promising Pipeline 2012 (in EUR million) 25 October 2012 Qualified Pipeline value 6,000 5,500 EUR 5.2 B EUR 5.1 B 5,000 15 % 14% 15% 22% 4,500 13% 13% 10% 4,000 10% 3,500 3,000 2,500 2,000 1,500 1,000 Dec-11 Mar-12 Jun-12 Sep-12 Deals above EUR 100 million Deals betwe
Slide 12: Q3 2012 Financial performance
Third quarter 2012 25 October 2012 Michel-Alain Proch, Executive Vice President and Group CFO Q3 2012 Financial performance 12
Slide 13: Revenue constant scope and exchange rates reconciliation
Third quarter Revenue constant scope and 2012 exchange rates reconciliation 25 October 2012 In EUR million Q3 2012 Q3 2011 % growth Statutory revenue 2,181 2,093 +4.2% Scope impact 25 Exchange rates impact 59 Revenue at constant scope and exchange rates 2,181 2,177 +0.2% Q3 2011 Transfer Fx Asset Q3
Slide 14: Q3 2012 revenue performance by Service Line
Third quarter Q3 2012 revenue performance by 2012 Service Line 25 October 2012 Systems Integration ▶ Growth in 2 of 4 Service Lines 24% HTTS & thanks to Atos’ recurring profile and Specialized new businesses won in 2012 Businesses Managed 22% Services 48% Consulting & Technology Services 6% In EUR m
Slide 15: Q3 2012 revenue performance by GBU
Third quarter Q3 2012 revenue performance by 2012 GBU 25 October 2012 In EUR million Q3 2012 Q3 2011* % growth Germany 427 443 -3.7% United-Kingdom & Ireland 426 387 +10.0% Benelux 236 242 -2.2% Atos Worldline 228 223 +2.3% France 228 228 +0.0% North America 147 141 +4.4% Central & Eastern Europe 13
Slide 16: 9M 2012 revenue performance by Service Line
Third quarter 9M 2012 revenue performance by 2012 Service Line 25 October 2012 Systems ▶ Growth in recurring businesses over- Integration 24% HTTS & compensating cyclical activities. Specialized Businesses 22% Managed Services 47% Consulting & Technology Services In EUR million YTD 2012 YTD 2011* %
Slide 17: 9M 2012 revenue performance by GBU
Third quarter 9M 2012 revenue performance by 2012 GBU 25 October 2012 In EUR million YTD 2012 YTD 2011* % growth Germany 1,266 1,234 +2.6% United-Kingdom & Ireland 1,238 1,149 +7.8% Benelux 729 765 -4.8% Atos Worldline 685 677 +1.3% France 728 742 -1.8% North America 423 394 +7.1% Central & Eastern
Slide 18: Q3 2012 cash flow and net cash position
Third quarter Q3 2012 cash flow and net cash 2012 position (in EUR million) 25 October 2012 Statutory net Free cash flow Statutory net cash 30/06/12 Dividend Q3 2012 Acquisitions* cash 30/09/12 -6 +32 -15 112 101 * acquisition of DAESA in Spain 18
Slide 19: Q3 2012 Group headcount evolution
Third quarter Q3 2012 Group headcount evolution 2012 25 October 2012 -1,965 +3,155 -854 +236 75,900 75,329 Headcount a s Scope e ffect* Hiring Leave rs Re structuring & Headcount a s of 30/06/12 dismissa ls of 30/09/12 * acquisition of DAESA in Spain 19
Slide 20: Annualized attrition by quarter
Third quarter Annualized attrition by quarter 2012 25 October 2012 ▶ Attrition remains under control 12.3% 12.6% 11.4% 11.2% 11.2% 10.6% 10.3% 10.6% 11.2% 10.0% 9.4% 10.6% 10.2% 8.3% 9.5% 9.6% 9.7% 9.4% 8.7% 8.7% 8.1% Total Group Onshore 7.1% Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q
Slide 21: Atos growth drivers
Third quarter 2012 25 October 2012 Gilles Grapinet, Senior Executive Vice President, Global Functions Atos growth drivers 21
Slide 22: Atos growth drivers
Third quarter Atos growth drivers 2012 25 October 2012 Atos new MS HTTS and SI market momentum repositioning improved 2012 sales A much New Growth performance initiatives in Europe stronger (Cloud, and US top-line engine Canopy, …) Service eXpand quality 22
Slide 23: Network of Business Technology & Innovation Center to provide a new client experience
Network of Business Technology & Innovation Third quarter Center to provide a new client experience 2012 25 October 2012 ▶ First center in Bezons/Paris ▶ Inaugurated in August ▶ Further locations being assessed 23
Slide 24: The IT services market has entered into a 3rd stage
Third quarter The IT services market has 2012 entered into a 3rd stage 25 October 2012 “Community Big data enabling IT” PC market size IT to support Mainframe Network Social IT communities Computing Mobility (IT for us) Embedded devices IT to support core “Business business enabling IT” (IT for my c
Slide 25: Atos and the Cloud
Third quarter Atos and the Cloud 2012 25 October 2012 Strong open partnership ecosystem Cloud is the key growth factor through co-investment, JVs and of future IT spend acquisitions in selected areas X5 Enable the transformation Enable the shift to SaaS for Reinforcing of our clients to leading Atos
Slide 26: Atos' reinforced portfolio in innovation
Atos’ reinforced portfolio in innovation Third quarter 2012 Offerings go-live in H2 2012 25 October 2012 Q3 2012 Q4 2012 Omni commerce Mobile Doccle Consumercloud (ex orange) & (multichannel) wallet (eArchiving) Offence processing center HTTS / Atos Worldline CUG suite Close loop service (QE) vouche
Slide 27: London 2012: A successful hospitality program
Third quarter London 2012: A successful hospitality 2012 program with 600+ customers hosted 25 October 2012 27
Slide 28: 2012 objectives
Third quarter 2012 25 October 2012 Gilles Grapinet, Senior Executive Vice President, Global Functions 2012 objectives 28
Slide 29: 2012 Objectives
Third quarter 2012 Objectives 2012 25 October 2012 2012 The Group confirms all its objectives for 2012 as stated in the February 23rd, 2012 release, i.e.: ▶Revenue – The Group expects a slight revenue organic growth compared to proforma for full year 2011. ▶Operating margin – the Group has the objec
Slide 30: Q&A session
Third quarter 2012 25 October 2012 Management team Q&A session 30
Slide 31: From Questions to Answers
Third quarter 2012 25 October 2012 From Questions to Answers 31
Slide 32: Thank you
Thank you Atos, the Atos logo, Atos Consulting, Atos Worldline, Atos Sphere, Atos Cloud and Atos WorldGrid are registered trademarks of Atos SA. June 2011 © 2011 Atos. Confidential information owned by Atos, to be used by the recipient only. This document, or any part of it, may not be reproduced, c