Atos Se · EURONEXT:ATO
Atos — Investor Day (November 2016)
38 slides from Atos's investor day presentation, Nov 8, 2016
Slide 1: 2016 Investor Day
2016 Investor Day Atos’ Headquarters, Bezons November 08, 2016 © Atos - Confidential
Slide 2: Disclaimer
Disclaimer ▶ This document contains forward-looking statements that involve risks and uncertainties, including references, concerning the Group's expected growth and profitability in the future which may significantly impact the expected performance indicated in the forward-looking statements. These
Slide 3: Vision, strategy & 3-year plan targets
Vision, strategy & 3-year plan targets Thierry Breton, Chairman & CEO
Slide 4: 2016 Ambition: strong value creation
2016 Ambition: strong value creation © Atos - Confidential
Slide 5: A culture of commitment
A culture of commitment 2016 Ambition: execution above initial targets without generating debt Revenue Operating margin Free cash flow 2013 c. €8.6bn c. €0.6bn €365m 7.5% 2016 Ambition as presented in c. €10bn c. €0.9bn €450-500m November 2013 8.5% to 9.5% 2016e Current view c. €12bn c. €1.1bn >€550
Slide 6: Strong value creation
Strong value creation 2016 Ambition: execution above initial targets +40% revenue and x2 net income over 2013-2016 Without indebting the company Net cash position from €0.9bn end of 2013 to c. €0.5bn end of 2016e With no capital increase to finance acquisitions +90% EPS over 2013-2016 6 | Atos – 201
Slide 7: Atos share price performance
Atos share price performance From €18 (November 17, 2008) to €94 (November 4, 2016) Market cap: €10bn x8 Atos: +421% CSC: +375% Accenture: +326% SopraSteria: +272% Capgemini: +205% Market cap: €1.2bn EuroStoxx Techno: +100% IBM: +97% HP: +62% CAC 40: +38% 100 7 | Atos – 2016 Investor Day Source: Nas
Slide 8: Atos share price performance
Atos share price performance From €18 (November 17, 2008) to €94 (November 4, 2016) As presented at 2013 Investor Day 2016 Ambition €100 €100 Atos share price (EUR)Atos share price (EUR) €94: +421% CAC 40 (rebased) CAC 40 (rebased) €80 €80 Accenture: +326% STOXX 600 Techno (rebased) STOXX 600 Techno
Slide 9: Financial discipline
Financial discipline Less acquisition spending than peers from January 2014 From January 2014 Number of acquisitions Total acquired EV Peer A 7 €10,050m Peer B 2 €4,258m Peer C 7 €3,882m Peer D 3 €3,171m Atos 4 €2,145m Peer E 3 €1,753m Source: Capital IQ, MergerMarket , FactSet, Atos. Peer group: HP
Slide 10: Financial discipline
Financial discipline Less acquisition spending than peers from January 2009 From January 2009 Number of acquisitions Total acquired EV Peer A 10 €15,837m Peer B 22 €11,655m Peer C 10 €10,420m Peer D 8 €4,915m Atos 6 €3,082m Peer E 5 €1,973m Source: Capital IQ, MergerMarket , FactSet, Atos. Peer grou
Slide 11: A size significantly increased
A size significantly increased Statutory revenue evolution (€bn) 11.7 10.7 8.8 8.6 9.1 6.8 5.0 2010 2011 2012 2013 2014 2015 2016e 11 | Atos – 2016 Investor Day
Slide 12: A sustained new trend of revenue organic growth
A sustained new trend of revenue organic growth Statutory revenue (€m) Phase 1 of new business model Organic evolution % 000 Sales reorganization 3,036 800 2,940 600 Integration and 2,708 2,757 2,777 2,666 restructuring 2.1% 400 2,514 +1.8% 2,427 +1.8% +1.6% 200 2,209 000 2,064 2,113 +0.5% +0.4% +0.
Slide 13: Tech medium term vision
Tech medium term vision © Atos - Confidential
Slide 14: Our vision
Our vision Digital Shockwaves in Business will deeply affect end to end production and service processes in all sectors of the economy. The Digital Shockwaves will interact and interfere: Sometimes reinforcing their impact and sometimes cancelling each other out. Some will impact certain industries
Slide 15: The emergence of smart services
The emergence of smart services from data … … to smart services CONNECTION INSIGHT LEARNING SMART SERVICE AND CONTEXT REALISATION IoT Web of Systems Machine Learning Predictive becomes Prescriptive Virtual Sensors Service Platforms Automation with distributed architectures will become the core compo
Slide 16: Data drives the business
7 data-driven technological breakthroughs will mark the 3rd digital wave 1. Exascale We are here 2. Artificial 10’s Intelligence 70’s 90’s 3. 5G Mainframes Web & mobile Internet 4. Swarm computing of devices 5. Blockchains 6. Quantum computing Data 7. Homomorphic & quantum safe Data Data drives driv
Slide 17: Our Vision
Our Vision Digital disruption Business models – through new sources of business value and partnership, driven by data and connectivity. Ways of working – resulting from changes in Business processes and the very nature of work. Disruptive technologies – the developments that bring revolutionary chan
Slide 18: 1/ Business models
1/ Business models Finding new markets and revenue streams Finding New Markets and Revenue Streams 18 | Atos – 2016 Investor Day
Slide 19: 2/ Ways of working
2/ Ways of working Collaborating with people, machines & virtual beings Collaborating with People, Machines and Virtual Beings 19 | Atos – 2016 Investor Day
Slide 20: 3/ Disruptive technologies
3/ Disruptive technologies Mastering the technologies of disruption Mastering the Technologies of Disruption 20 | Atos – 2016 Investor Day
Slide 21: 4/ Evolving challenges
4/ Evolving challenges Addressing ever-changing challenges POPULATION DEMOGRAPHICS Food & Water Access to Availability health-care ETHICAL DILEMMA CLIAMTE CGANGE Human- kind Access to Social power interaction HUMAN BEHAVIOUR Addressing Ever Changing Challenges 21 | Atos – 2016 Investor Day
Slide 22: Atos strategy implementation
Atos strategy implementation From 2016 to 2019, managing the transition of the highest shockwave in the IT industry since decades © Atos - Confidential
Slide 23: Digital transformation driving disruption in Managed Services
Digital transformation driving in depth disruption in our Managed Services business Cloud Legacy Autonomics Cognitive Orchestration Robotic Orchestrated Intelligent Cognitive Artificial Process Automation Automation Automation Intelligence Automation 23 | Atos – 2016 Investor Day
Slide 24: A Digital Transformation Factory to implement Atos strategy
A Digital Transformation Factory to implement Atos strategy over 2017-2019 Orchestrated Hybrid Online acquiring SAP HANA by Atos Transactional services Contactless payment ePayment Circuit Atos Canopy Sociable collaboration Openscape Atos Digital Atos Codex Workplace Unified communication aaS applic
Slide 25: Atos leadership recognized by key analysts
Atos leadership already recognized by key analysts in the 4 Digital Transformation Factory offers Hybrid Orchestration Cloud SAP HANA ▶ LEADER & STAR PERFORMER ▶ MAJOR PLAYER SAP HANA Private Cloud Enablement Utilities Services ▶ MAJOR PLAYER Next ▶ LEADER Generation SAP Cloud Services EMEA ▶ MAJOR
Slide 26: Fully mobilized teams around a threefold culture
Fully mobilized teams around a threefold culture Atos teams developed a strong business culture around three pillars Commitment Acquisition Client satisfaction We always deliver what Strong culture developed A services delivery we committed ourselves for acquisition with focused on client to financi
Slide 27: A Culture of Innovation
A culture of Technology Innovation at the heart 5,000 active patents at the Atos group level c. € 300m Research & Development 120+ 15 A Culture new patents filed each year R&D centers in 9 countries of Innovation c. 300 innovation workshops in 2016 27 | Atos – 2016 Investor Day
Slide 28: Launch of the Quantum Computing program
Launch of the Quantum Computing program From left to right: Cyril Allouche, Head of Atos Quantum Lab; Artur Ekert, Professor of Quantum Physics at Oxford and Singapore Universities; Sophie Houssiaux, Head of Atos R&D Big Data & Security; Philippe Vannier, Atos EVP Big Data & Security Atos Technology
Slide 29: Culture of Partnerships with Global Strategic Technology leader
Culture of Partnerships with Global Strategic Technology leader Enhanced alliance with the Global Strategic Partnership with Siemens DELL/EMC Federation + + A global alliance AND a €230M joint investment program into innovation Innovation & critical mass Strong alliance until at least 2021 with ▶ On
Slide 30: Michael Dell, Chairman & CEO - Dell
Michael Dell Chairman & CEO - Dell Testimonial 30 | Atos – 2016 Investor Day
Slide 31: Joe Kaeser, CEO - Siemens AG
Joe Kaeser CEO - Siemens AG Testimonial 31 | Atos – 2016 Investor Day
Slide 32: Atos 2020 talent requirements
Atos 2020 talent requirements… Major people challenges towards 2020 Competition for digital talents 10,000 8,000 everywhere UK & Ireland Benelux & The Nordics United Kingdom, Ireland Belgium, Denmark, Estonia, Finland, Luxembourg, Sweden, The Netherlands Thousands of Millennials 13,000 to attract/ye
Slide 33: Extra-financial performance objectives 2020
Extra-financial performance objectives 2020 Part of Atos’ DNA: fully integrated in company operations Talented people to support the Increase the Atos GreatPlaceToWork Trust digital transformation – A global Index® reflecting employees satisfaction to employer Top 10% Industry benchmark Value for cl
Slide 34: 2019 targets
2019 targets At constant scope Revenue organic growth 2% to 3% 2017-2019 CAGR Operating margin 10.5% to 11.0% of revenue Free cash flow: Operating margin conversion into free c. 65% cash flow 34 | Atos – 2016 Investor Day
Slide 35: Use of cash
Use of cash We pursue acquisitions with the same discipline in Acquisitions financials and technologies as in the past years Dividends 25% to 30% pay-out ratio Option of dividend paid in shares No dogma Shares buy-back 35 | Atos – 2016 Investor Day
Slide 36: Atos will continue to significantly grow
Atos will continued to significantly grow Revenue evolution (€bn) 11.7 10.7 8.8 8.6 9.1 6.8 5.0 2010 2011 2012 2013 2014 2015 2016e 2019e Earnings Per Share +90% Earnings Per Share + … 36 | Atos – 2016 Investor Day
Slide 37: Atos 2019 Ambition
Atos 2019 Ambition Consulting End-to-end sales process & Systems Integration roll-out on top clients and growth and profitability global quality program catch-up industrialization Consolidate Managed Services leading position and leverage its leadership Develop Worldline as an undisputed European le
Slide 38: Thanks
Thanks Atos, the Atos logo, Atos Codex, Atos Consulting, Atos Worldgrid, Worldline, BlueKiwi, Bull, Canopy the Open Cloud Company, Unify, Yunano, Zero Email, Zero Email Certified and The Zero Email Company are registered trademarks of the Atos group. April 2016. © 2016 Atos. Confidential information