Slide 1: FY 2022 Results
FY 2022 Results Bezons, March 1, 2023 © Atos
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 r
Slide 3: Today's presenters
Today’s presenters Group CFO Nourdine Bihmane Diane Galbe Philippe Oliva Nathalie Sénéchault Co-CEO, in charge of Co-CEO, in charge of the Group Senior Executive VP Group CFO Tech Foundations Evidian perimeter 3 | 01-03-2023 | © Atos
Slide 4: Agenda
Agenda 1. 2022 Highlights 2. Progress in Strategic Transformation Project 3. 2022 Financial Performance 4. Outlook 5. Q&A 4 | 01-03-2023 | © Atos
Slide 5: 01. 2022 Highlights
01. 2022 Highlights Nourdine Bihmane & Philippe Oliva
Slide 6: 2022 highlights
2022 highlights Atos delivering on strategic transformation plan Strong operational recovery in H2 delivers FY22 results in line with guidance Robust pick-up in commercial momentum in Q4 with book-to-bill at 112% Confidence for 2023, progressing towards mid-term ambitions Significant progress achiev
Slide 7: Key Financial Figures
2022 Key Financial Figures Revenue Operating Margin OMDA € 11.3 bn 3.1% €1,020 m +1.3% yoy, cst. curr. of revenue +0.1% yoy, organic Free Cash Flow Net Debt Headcount €-187 m € 1,450 m 110,797 €-58 m excluding costs related to 2.4x pre IFRS 16 OMDA transformation plan 7 | 01-03-2023 | © Atos
Slide 8: Headcount evolution
Headcount evolution +29,458 109,135 110,797 (24,102) (3,493) (201) 62% in offshore & nearshore locations Headcount as of Scope Hiring Leavers Restructuring, Headcount as of 31/12/21 dismissals & transfers 31/12/22 Sept. 2022: Atos listed for the first time as one of ‘Europe’s Best Workplaces’ c. 85,
Slide 9: Tech Foundations in 2022: fast and tangible first results on turnaround plan
Tech Foundations in 2022: fast and tangible first results on turnaround plan REFOCUS RECOVER REBOUND ✓ Mobilized teams around ✓ Cost take-out actions ✓ Increased add-on and revenue ambitious turnaround plan ✓ Restructuring initiated, focus on ✓ Drove revenue retention ✓ Near term pricing actions to
Slide 10: Tech Foundations in 2022: delivering ahead of plan
Tech Foundations in 2022: delivering ahead of plan Better-than-anticipated top line momentum €6,026 m +0.3% 2022 revenue Q4: deliberate reduction in BPO and VAR as part of portfolio rationalization -2.7% -1.2% +1.0% excl. non-strategic activities (BPO, VAR, UCC) -1.6% -11.4% Organic revenue growth F
Slide 11: Tech Foundations in 2022: accelerated commercial performance
Tech Foundations in 2022: accelerated commercial performance 94% 83% ✓ Continued growth in new logos 54% 59% 57% 67% 54% 58% ✓ Increased selectivity in order entry ✓ Early successes with large deals Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 2021 2022 2021 2022 2021 2022 2021 2022 Q4 main wins World’s largest Newly fo
Slide 12: Evidian in 2022: strong value proposition around clear distinctive factors
Evidian in 2022: strong value proposition around clear distinctive factors World leader in managed Emerging end-to-end Strong offering in Trusted sustainability security services cloud transformation sovereign cloud solutions partner enabling clients’ player decarbonization Sole European HPC Strong
Slide 13: Evidian in 2022: uptick in revenue growth and operating margin in H2
Evidian in 2022: uptick in revenue growth and operating margin in H2 €5,315 m +5.4% organic revenue growth in H2 (+11% in Q4) 2022 revenue ✓ Ramp-up of Advanced Computing following strong order entry in Q2 ✓ Steady strong growth in Cybersecurity Services where Evidian capitalizes on global leadershi
Slide 14: Evidian: pick up in commercial momentum in Q4
Evidian: pick up in commercial momentum in Q4 130% ✓ Strong sequential increase at both BDS and Digital ✓ 51% short-term bookings with faster revenue yield Q4 book-to-bill vs. 85%% in Q3 2022 ✓ Focus on smaller, low-risk contracts Q4 main wins Max Planck Eurocontrol Global retail leader Siemens Buil
Slide 15: 02. Progress in Strategic Transformation Project
02. Progress in Strategic Transformation Project Diane Galbe
Slide 16: Significant progress achieved in strategic transformation project
Significant progress achieved in strategic transformation project Works councils Information and consultation process complete ✓ Consultation process of Atos European works councils (SEC) completed in 3 months ✓ Local consultation processes completed in all 31 countries where it was necessary Separa
Slide 17: Separation project key milestones
Separation project key milestones On track for completion in H2 2023 February 2023 Ahead of Distribution July 29, 2022 Full completion of Convening of Financing of the employee consultation Shareholders interim period processes meeting P P P September 7, 2022 ‘Soft spin’ / H2 2023 Start of the SEC I
Slide 18: Non core businesses divestment program well on track
Non core businesses divestment program well on track €700m expected proceeds Transaction Signing Status Worldline stake June 2022 ✓ Closed EGSE September 2022 Closing expected in Q1 23 c.80% already secured Sislog October 2022 ✓ Closed within 7 months Atos Italia* November 2022 Closing expected in H
Slide 19: Key Non-Financial Indicators & Recognitions
Key Non-Financial Indicators & Recognitions Sustainability in our DNA % of total spend Net promoter score CO2 Emissions assessed by Ecovadis from our clients scopes 1,2 and 3 or alternative assessments 66% 2.5 Mtons 70% stable vs 2021 reduced by -24% since 2019 vs. 68% in 2021 S&P Global Ecovadis CD
Slide 20: 03. 2022 Financial Performance
03. 2022 Financial Performance Nathalie Sénéchault
Slide 21: Financial overview
2022 Financial overview Change at €M FY 2022 FY 2021 Change cst. currency Revenue 11,341 10,839 +4.6% +1.3% Operating Margin 356 383 In % of revenue 3.1% 3.5% -40 bps -60 bps OMDA 1,020 1,095 In % of revenue 9.0% 10.1% -110 bps Normalized Net income -28 -215 Net income -1,012 -2,962 Free Cash Flow e
Slide 22: 2022 revenue bridge
2022 revenue bridge Return to growth at constant currency, organic stabilization +4.6% In €M: +3.3% 11,341 10,839 +0.1% +1.2% +1.3% at constant currency 2021 Revenue Organic Scope Foreign Exchange 2022 Revenue 22 | 01-03-2023 | © Atos
Slide 23: Business shift to growth areas in H2
Continued sequential Business improvement shift to growth areas in organic growth accelerating H2: +2.3% Organic growth turned positive in Q4: +4.6% • Evidian strongly up • Tech Foundations down due to -0.1% portfolio rationalization -2.4% -1.9% • Comparison basis -8.9% Q4 2021 Q1 2022 Q2 2022 Q3 20
Slide 24: 2022 operating margin
2022 operating margin Strong recovery in H2 as expected 3.1% operating margin in FY22 H2 improvement mainly driven by: ✓ Decrease in structure costs 5.1% ✓ Selective hirings ✓ Cost discipline ✓ Reduction in underperforming 1.1% contracts and associated losses ✓ Pricing H1 2022 H2 2022 24 | 01-03-202
Slide 25: Operating margin to Net income
Operating margin to Net income €M 2022 2021 Operating margin 356 383 o/w €-266m related to Atos’ envisioned Reorganization, Rationalization, Integration costs -451 -437 transformation plan Amortization of intangible assets -140 -151 Equity based compensation -25 -34 Impairment of goodwill and other
Slide 26: 2022 Free cash flow
2022 Free cash flow In €m OMDA +1,020 Capex and leases -656 Change in Working Capital +126 Tax paid -59 Net cost of financing debt -29 RRI costs (excl. costs related -154 Include a €60m refund from to transformation plan) German restructuring plan announced in 2021 Other changes -305 Excluding costs
Slide 27: 2022 change in net debt
2022 change in net debt (328) In €M: (187) (1,450) (1,226) +219 +72 Net debt FCF Acquisitions & Sale of Worldline FX & others Net debt Dec 2021 2022 Disposals Shares Dec 2022 Leverage ratio at 2.4x OMDA pre IFRS 16 27 | 01-03-2023 | © Atos
Slide 28: 04. Outlook
04. Outlook Nourdine Bihmane & Philippe Oliva
Slide 29: Evidian 2023 priorities
Evidian 2023 priorities Drive revenue growth acceleration • Deploy new customer value proposition and portfolio of offerings • Maximize synergies and leverage joint go-to-market • Build sales capabilities, increase large deals win rate Delivery excellence and profitability In 2023, • Targeted margin
Slide 30: Tech Foundations 2023 priorities
Tech Foundations 2023 priorities REFOCUS: accelerate the reshaping of our portfolio • Tackle underperforming contracts, wind down non-core activities • Continue to rationalize VAR and non strategic offerings In 2023, we expect: RECOVER: step up cost structure adaptation ✓ Continued stabilization of
Slide 31: 2023 full-year outlook
2023 full-year outlook Group Evidian Tech Foundations Acceleration Managed decrease Organic revenue -1.0% to +1.0% Core stabilization vs. 2022 growth Portfolio rationalization +0.1% in 2022 +2.0% in 2022 -1.6% in 2022 4% to 5% Improvement Positive territory Operating margin* vs. 2022 (% of revenue)
Slide 32: Conclusion
Conclusion P Atos delivering on strategic plan P Strong operational recovery achieved in H2 2022 Evidian and Tech Foundations will hold Investor Days prior to the P Confidence for 2023, separation project well on track envisaged separation P On track to achieve 2026 objectives 32 | 01-03-2023 | © At
Slide 33: 05. Q&A
05. Q&A Atos
Slide 34: Thank you
Thank you Atos is a registered trademark of Atos SE. 20223 © Copyright 2023, Atos SE. Confidential Information owned by Atos group, to be used by the recipient only. This document, or any part of it, may not be reproduced, copied, circulated and/or distributed nor quoted without prior written approv