Atos Se · EURONEXT:ATO

Atos — H1 2012 Earnings Presentation

45 slides from Atos's earnings presentation, Jul 27, 2012

  1. Slide 1: First half 2012 results

    First half 2012 results Friday 27 July 2012 - Paris

  2. Slide 2: Disclaimers

    First half Disclaimers 2012 27 July 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 number

  3. Slide 3: Agenda

    First half Agenda 2012 27 July 2012 1. H1 2012 Highlights 2. H1 2012 Financial performance 3. Action plan in France and update on integration and Group transformation 4. Commercial performance and strategic initiatives for future growth 5. Strategy and 2012 objectives 6. Q&A session 3

  4. Slide 4: H1 2012 Highlights

    First half 2012 27 July 2012 Thierry Breton, Chairman & CEO H1 2012 Highlights 4

  5. Slide 5: H1 2012 key achievements

    First half H1 2012 key achievements 2012 27 July 2012 ▶ We reached all our targets for H1 2012 ▶ Partnership strengthened: ▶ Acquisitions of companies: – blueKiwi, a social workplace software company located in France – E-Utile, an Italian leader in smart energy solutions – MSL, a specialist in majo

  6. Slide 6: H1 2012 Highlights

    First half H1 2012 Highlights 2012 27 July 2012 4,366 +1.4% 15 113% Book to bill Revenue (EUR m) (H1 2011 pro forma: Revenue organic evolution Backlog (EUR bn) (1.7 years of revenue 120% (excluding Siemens) (H1 2011 : -0.7%) vs. 1.5 years EUR 4,307 m) (H1 2011: 101%) in H1 2011) 5.7% 102 129 +101 Op

  7. Slide 7: H1 2012 Financial performance

    First half 2012 27 July 2012 Michel-Alain Proch, Executive Vice President and Group CFO H1 2012 Financial performance 7

  8. Slide 8: Constant scope and exchange rates figures reconciliation

    First half Constant scope and exchange 2012 rates figures reconciliation 27 July 2012 In EUR million H1 2012 H1 2011 % growth Statutory revenue 4,366 2,476 +76.3% Scope impact 1,768 Exchange rates impact 63 Revenue at constant scope and exchange rates 4,366 4,307 +1.4% Operating margin 248.8 166.2 +

  9. Slide 9: H1 2012 performance by Service Line

    First half H1 2012 performance by Service 2012 Line 27 July 2012 Systems ▶ Growth in 2 Service Lines Integration HTTS & 24% Specialized Businesses ▶ Atos revenue based on multi-year 22% contracts increased to 77 percent Managed Consulting Services & Technology 47% Services ▶ Cyclical activities star

  10. Slide 10: Managed Services

    First half Managed Services 2012 27 July 2012 ▶ Revenue, operating margin: In EUR million H1 2012 H1 2011* % growth Revenue 2,026 1,967 +3.0% Operating margin 146.2 66.0 +121.5% Operating margin rate 7.2% 3.4% +386bp *constant scope and exchange rates Other countries Germany 19% 28% ▶ Revenue breakd

  11. Slide 11: Systems Integration

    First half Systems Integration 2012 27 July 2012 ▶ Revenue, operating margin: In EUR million H1 2012 H1 2011* % growth Revenue 1,067 1,087 -1.9% Operating margin 41.2 32.7 +26.0% Operating margin rate 3.9% 3.0% +85bp *constant scope and exchange rates Other France countries 16% 21% ▶ Revenue breakdo

  12. Slide 12: HTTS & Specialized Businesses

    First half HTTS & Specialized Businesses 2012 27 July 2012 ▶ Revenue, operating margin: In EUR million H1 2012 H1 2011* % growth Revenue 967 936 +3.2% of which HTTS 597 571 +4.4% Operating margin 105.8 96.7 +9.4% of which HTTS 89.9 81.9 +9.7% Operating margin rate 10.9% 10.3% +61bp of which HTTS 15.

  13. Slide 13: Consulting & Technology Services

    First half Consulting & Technology Services 2012 27 July 2012 ▶ Revenue, operating margin: In EUR million H1 2012 H1 2011* % growth Revenue 307 316 -2.8% Operating margin 11.6 23.5 -50.5% Operating margin rate 3.8% 7.4% -365bp *constant scope and exchange rates Latin Other UK & countries America Ibe

  14. Slide 14: H1 2012 performance by Business Units (GBU/SBU)

    First half H1 2012 performance by Business 2012 Units (GBU/SBU) 27 July 2012 Revenue Operating Margin Operating Margin % In EUR million H1 2012 H1 2011* % growth H1 2012 H1 2011* H1 2012 H1 2011* Germany 840 791 +6.2% 65.6 24.7 7.8% 3.1% United-Kingdom & Ireland 812 761 +6.7% 55.7 45.7 6.9% 6.0% Fra

  15. Slide 15: H1 2012 Group headcount evolution

    First half H1 2012 Group headcount evolution 2012 27 July 2012 -3,879 +5,977 -1,666 +928 75,329 73,969 Headcount a s Scope e ffect Hiring Leave rs Re structuring & Headcount a s of 01/01/12 dismissa ls of 30/06/12 15

  16. Slide 16: Annualized attrition by quarter

    First half Annualized attrition by quarter 2012 27 July 2012 ▶ Attrition remains under control 12.3% 12.6% 11.4% 11.2% 11.2% 10.6% 10.3% 10.0% 11.2% 9.4% 10.6% 10.2% 8.3% 9.5% 9.6% 9.7% 9.4% 8.7% 8.1% Total Group Onshore 7.1% Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2

  17. Slide 17: IT integration costs

    First half IT integration costs 2012 27 July 2012 ▶ Integration costs: primarily the migration of internal IT platforms ▶ Completion of the program expected by the end of 2012 • H2 2011 EUR 30 million • H1 2012 EUR 28 million 18 months • H2 2012e EUR 22 million EUR 80 million Total cost of the IT in

  18. Slide 18: Situation of Atos pension plans

    First half Situation of Atos pension plans 2012 27 July 2012 ▶ Atos has around 80% of its pension liabilities in the UK and the Netherlands ▶ In H1, main impacts were : – finalization of the SIS UK pension transfer with EUR 285 million liabilities and EUR 393 million assets, which resulted in a EUR

  19. Slide 19: H1 2012 Statutory income statement

    First half H1 2012 Statutory income 2012 statement 27 July 2012 H1 2011 In EUR million H1 2012 statutory Revenue 4,366 2,476 Operating Margin 248.8 166.2 % revenue 5.7% 6.7% Staff reorganization -27.6 -24.1 Premises rationalization -8.1 1.8 Integration & acquisition costs -28.4 -16.3 Customer relati

  20. Slide 20: H1 2012 cash flow and net cash position

    First half H1 2012 cash flow and net cash 2012 position (in EUR million) 27 July 2012 SIS post Net cash before Acquisitions / Net debt closing Free cash flow acquisition and disposals and Statutory net 31/12/11 adjustment H1 2012 disposal Equity change cash 30/06/12 -48 +129 148 101 -142 +161 20

  21. Slide 21: H1 2012 Cash flow statement

    First half H1 2012 Cash flow statement 2012 27 July 2012 In EUR million H1 2012 H1 2011 OMDA (*) 345.4 241.0 Net capital Expenditures -131.0 -72.3 Change in working capital 58.4 51.7 Cash flow from operations 272.8 220.4 Reorganisation -25.4 -34.7 Rationalisation -24.9 -20.1 Taxes paid -30.8 -21.9 N

  22. Slide 22: Simplified balance sheet

    First half Simplified balance sheet 2012 27 July 2012 30 June 31 Dec. 30 June In EUR million 2012 2011 2011 Goodwill 1,966 1,982 1,578 Intangible assets 466 472 84 Tangible assets 683 680 368 Non-current financial assets 57 208 256 Net Deferred tax assets 159 137 201 Net Non-current assets 3,331 3,4

  23. Slide 23: Action plan in France and update on integration and Group transformation

    First half 2012 27 July 2012 Charles Dehelly, Senior Executive Vice President of Global Operations Action plan in France and update on integration and Group transformation 23

  24. Slide 24: France Focus

    First half France Focus 2012 27 July 2012 New Management team Short term actions ▶ New CEO ▶ Margin improvement as of October 2011 ▶ Simplification of the organisation ▶ New HR Director as of December 2011 ▶ Enhanced people management ▶ New MS Head as of February 2012 ▶ New Consulting Head as of Feb

  25. Slide 25: France Focus Short term execution plan

    First half France Focus 2012 Short term execution plan 27 July 2012 ▶ Margin improvement – Weekly review of projects in MS and SI starting with most critical ones – Monitoring of associated action plans (price renegotiation, delivery model optimization…) 300 250 – Increased focus on margin in local

  26. Slide 26: SG&A: Update of post-merger savings

    First half SG&A: Update of post-merger savings 2012 27 July 2012 ▶ As presented at the Investor Day on 6 October 2011: ▶ Confirmation of the 2012e SG&A target at 11.5% with Q4 2012e below 11% 26

  27. Slide 27: Indirect headcount reduction: fully identified and exit plan well online

    Indirect headcount reduction: fully identified and First half exit plan well online to deliver expected savings 2012 27 July 2012 Capacity free up identified headcount Revised ambition 2(2076) 2,020 Revised ambition 1(2020) 1,750 Initial ambition 1,575 Wave 3 in H1 2012: other GBUs 1,125 Wave 2 in Q

  28. Slide 28: Real Estate: surface reduction well on track to deliver expected savings

    Real Estate : surface reduction well on First half track to deliver expected savings 2012 27 July 2012 ▶ Former SIS scope real estate in thousand of square meter -130 -165 -220 with full 670 effect in 2013 540 485 450 SIS real estate Dec 31st, 2011 June 30th, 2012 Dec 31st, 2012 at closing Goal Conf

  29. Slide 29: Commercial performance and strategic initiatives for future growth

    First half 2012 27 July 2012 Gilles Grapinet, Senior Executive Vice President, Global Functions Commercial performance and strategic initiatives for future growth 29

  30. Slide 30: H1 Commercial activity

    First half H1 Commercial activity 2012 27 July 2012 ▶ Total order entry in H1 2012 at EUR 4,949 million ▶ Book to bill ratio by activity: H1 2012 H1 2011* Recurring businesses 121% 99% Cyclical activities 97% 103% Total Group 113% 101% ▶ Book to bill ratio by market: H1 2012 excluding Siemens Manufa

  31. Slide 31: Manufacturing, Retail & Services

    First half Manufacturing, Retail & Services 2012 Business trend and Atos commercial performance 27 July 2012 MRS business trends: Atos growth drivers: ▶ Unique positioning in IT ▶ Main international manufacturing outsourcing: Atos is systematically firms globalizing IT landscape invited to major MRS

  32. Slide 32: Public sector, Healthcare & Transport

    First half Public sector, Healthcare & Transport 2012 Business trend and Atos commercial performance 27 July 2012 PHT business trends: Atos growth drivers: ▶ In ITO : European footprint and ▶ More pressure on short term for customers intimacy in the largest discretionary spends countries ▶ Public de

  33. Slide 33: Financial Services

    First half Financial Services 2012 Business trend and Atos commercial performance 27 July 2012 FS business trends: Atos growth drivers: ▶ Key position in outsourcing with ▶ Crisis in the financial sector strong positioning in Europe, but reinforces trend for IT outsourcing increasing footprint in AP

  34. Slide 34: Telecoms, Media & Technology

    First half Telecoms, Media & Technology 2012 Business trend and Atos commercial performance 27 July 2012 TMT business trends: Atos growth drivers: ▶ Strong pressure on Telco leading to ▶ Major positioning on outsourcing consolidation and savings ▶ Leverage customer base by pushing ▶ Business enablin

  35. Slide 35: Energy & Utilities

    First half Energy & Utilities 2012 Business trend and Atos commercial performance 27 July 2012 E&U business trends: Atos growth drivers: ▶ Significant challenges in 2012: Energy prices, ongoing ▶ Major player in Managed Services environmental sensitivity, search for successful business models ▶ Incr

  36. Slide 36: H1 2012 backlog evolution

    First half H1 2012 backlog evolution 2012 (in EUR billion) 27 July 2012 EUR 14.9 B EUR 14.1 B +0.3 C & TS C & TS 0.5 year HTTS & SB 1.6 years HTTS & SB -4.4 +4.9 Systems Systems Integration 0.9 year Integration 1.7 years of revenue Managed Managed Services 2.4 years Services 31/12/2011 Scope and Rev

  37. Slide 37: Pipeline at the end of June 2012

    First half Pipeline at the end of June 2012 2012 (in EUR million) 27 July 2012 Qualified Deals above EUR 100 million Pipeline value Deals between EUR 50 - 100 million 6,000 Deals below EUR 50 million EUR 5.3 B 5,500 5,000 15% 14% 4,500 4,000 13% 13% 3,500 EUR 2.7 B 3,000 11% 12% 2,500 2,000 1,500 1,

  38. Slide 38: Strategy and 2012 objectives

    First half 2012 27 July 2012 Thierry Breton, Chairman & CEO Strategy and 2012 objectives 38

  39. Slide 39: Atos key strategic action fields

    First half Atos key strategic action fields 2012 27 July 2012 WIN RATE Order ▶ Integration & transformation entry External PIPELINE ▶ Improve quality & security revenue (size, Margin diversification, ▶ Capture Synergies qualification) ▶ Industrialization “Always innovate” ▶ Be awarded as great place

  40. Slide 40: Being a global leader at addressing the three demands in IT services

    Being a global leader at addressing the three First half demands that Atos is seeing in the IT services 2012 market 27 July 2012 Market Customers demand expectations Atos’ answers Ambition ▶ HTTS development ▶ Core Business innovation ▶ Specialized BU (AWL, ▶ Be amongst ▶ European AWG, MEV, CNS, …)

  41. Slide 41: Dynamics of our strategy

    Dynamics of our strategy First half 2012 27 July 2012 2009 2010 2011 2012 2013 2014 2015 Operating Margin Operating GROUP Goal achieved GROUP TRANSFORMATION Margin TRANSFORMATION + 250 bp, catching 7% to 8% up with competitors Objective: ▶ ROLL OUT OF HTTS Leader in ▶ DEVELOPMENT OF IT SPECIALIZED B

  42. Slide 42: 2012 Objectives

    First half 2012 Objectives 2012 27 July 2012 2012 After a satisfactory first half, the Group is in a position to confirm 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 pro forma for full year 201

  43. Slide 43: Q&A session

    First half 2012 27 July 2012 Management team Q&A session 43

  44. Slide 44: From Questions to Answers

    First half 2012 27 July 2012 From Questions to Answers 44

  45. Slide 45: 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

Atos — H1 2012 Earnings Presentation on 6ix