Slide 1: Q3 2024 Results
Q3 2024 Results Paris, October 24th, 2024
Slide 2: Today's presenters
Today’s presenters Jean Pierre Clay Jacques-François Mustier Van Doren de Prest Group CEO Chief Growth Officer Group CFO 2 | 24/10/2024 | Atos
Slide 3: 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 4: Agenda
Agenda 1. Key messages 2. Q3 2024 Business Highlights 3. Q3 2024 Financial Results 4. Key takeaways 5. Q&A 4 | 24/10/2024 | Atos
Slide 5: Key messages
01 Key messages Jean Pierre Mustier Group CEO
Slide 6: Q3 2024 highlights
Q3 2024 highlights Industrial turnaround plan Q3 Strategic has started performance updates • Decision from the Court on pre- • Revenue evolution in line • Sale of Worldgrid to Alten on arranged financial restructuring with updated business plan track plan expected today communicated on Sept 2 • Ongo
Slide 7: Q3 2024 activity consistent with Sept 2nd business plan
Q3 2024 activity consistent with Sept 2nd business plan Group Revenue Order Entry Cash position €2.3bn €1.5bn of -4.4% yoy. Organic 66% of revenue €1.1bn In line with Q3 2023 excl. large deals (1) Eviden: • BDS order entry benefitting from • Continued market softness in key several HPC contracts sig
Slide 8: Q3 2024 Business Highlights
02 Q3 2024 Business Highlights Clay Van Doren Chief Growth Officer
Slide 9: Q3 order entry at €1.5 billion
Q3 order entry at €1.5 billion Book-to-bill at 66% vs 84% in prior year, in line with Q3 2023 book-to-bill excluding large exceptional deals (1) Eviden Tech Foundations • Q3 BtB at 73% (80% in Q3 23) • Q3 BtB at 60%, consistent with prior years (3) • Q4 BtB expected close to Q4 23 (2) • Q4 BtB expec
Slide 10: Q3 2024 Group organic growth & revenue by regional business unit
Q3 2024 Group organic growth & revenue by regional business unit Organic revenue evolution Revenue mix Others 3% Northern Southern Americas Americas Europe & APAC Europe -10.5% -6.6% 21% 22% c.€2.3bn Central Southern Europe Europe Central Northern -0.4% -0.7% Europe Europe & APAC 24% 31% 10 | 24/10/
Slide 11: Americas impacted by general slowdown in market conditions and contract terminations
Americas impacted by general slowdown in market conditions and contract terminations Organic revenue evolution Eviden: Double-digit decline • Contract terminations and volume Northern Americas decline in Healthcare, Finance, and Europe & APAC -10.5% -6.6% Transport & Logistics • High single-digit de
Slide 12: Central Europe stable driven by Tech Foundations
Central Europe stable driven by Tech Foundations Organic revenue evolution Eviden: Northern Low single-digit decline: Americas Europe & APAC -10.5% -6.6% • Volume reductions in Digital from Manufacturing and Public Sector customers Tech Foundations Central Southern Mid-single-digit growth: Europe Eu
Slide 13: Southern Europe roughly stable driven by Digital growth
Southern Europe roughly stable driven by Digital growth Organic revenue evolution Eviden: Roughly flat: • Growth in Digital, benefitting from Northern Americas Europe & APAC contract win with a major European -10.5% -6.6% utility company in France • Lower revenue in BDS vs. 2023 (when supercomputer
Slide 14: Northern Europe & APAC revenue decrease reflects soft market conditions
Northern Europe & APAC revenue decrease reflects soft market conditions and contract terminations Organic revenue evolution Eviden: Mid-single-digit decline: Northern • Decline of Digital revenue, reflecting lower Americas Europe & APAC demand from UK Public Sector customers -10.5% -6.6% • Positive
Slide 15: Workforce evolution reflects transfer of 4,900 employees
Workforce evolution reflects transfer of 4,900 employees following contract completions and terminations 91,611 +1,839 (3,840) 82,211 (7,399) Incl. c.4,900 employees transferred to new service provider following contract completions and terminations Headcount as of Hiring Leavers Restructuring, dism
Slide 16: Q3 2024 Financial results
03 Q3 2024 Financial results Jacques-François de Prest Group CFO
Slide 17: Q3 2024 revenue bridge
Q3 2024 revenue bridge Organic evolution in €m: 2,590 (15) 2,575 (107) (154) -0.6% 2,305 (10) -4.4% -5.6% -0.4% Q3 2023 revenue Adoption of Q3 2023 revenue Organic Scope Foreign Exchange Q3 2024 revenue new accounting (restated) treatment (agent vs. Principal) 17 | 24/10/2024 | Atos
Slide 18: €232m reduction in Q3 of one-off working capital optimization
€232m reduction in Q3 of one-off working capital optimization as planned Working capital optimization • Working capital optimized €1.8 bn through: • Accounts receivable non-recourse factoring 650 • Cash in advance received from customers • Specific optimization on trade payables 455 -€0.2bn • Plan t
Slide 19: Financial restructuring plan designed to restore long-term financial sustainability
Financial restructuring plan designed to restore Atos long-term financial sustainability ✓ ✓ ✓ Sustainable capital structure Sufficient liquidity to execute Necessary time and with very significant the Business Plan flexibility to implement reduction of net debt • €1.7bn new money, of which: Atos’ s
Slide 20: Financial restructuring plan: indicative timeline and next steps
Financial restructuring plan Indicative timeline and next steps Very strong support of shareholders Favorable vote of all classes of affected parties of the draft accelerated 6 Sept safeguard plan Convening of affected parties Dec Publication on 27 Sept Execution of the 4 concomitant Atos’ website o
Slide 21: FY 2024 outlook
FY 2024 outlook Mid-single-digit organic revenue decrease, corresponding to revenue Revenue expected at circa €9.7 billion Operating Operating margin of circa €238 million excluding additional provisions to margin be booked for some underperforming contracts(1) Free cash Change in cash before debt r
Slide 22: Key takeaways
04 Key takeaways Jean Pierre Mustier Group CEO
Slide 23: A new chapter for Atos
A new chapter for Atos 1 Financial restructuring plan secured with closing expected by year-end or early January 2025 Clients starting to resume normal interactions 2 stronger commercial activity expected in Q4, with the anticipated return of multi-year contracts New governance in place : 3 Philippe
Slide 24: Q&A session
05 Q&A session
Slide 25: Thank you
Thank you For more information please contact: David Pierre-Kahn – Head of Investor Relations david.pierre-kahn@atos.net M +33 6 28 51 45 96 Sofiane El Amri – Investor Relations sofiane.elamri@atos.net M +33 6 29 34 85 67 Atos is a registered trademark of Atos SE. © 2024 Atos. Confidential informati