Atos Se · EURONEXT:ATO
Atos — Atos Origin — H1 2001 Earnings Presentation
31 slides from Atos's earnings presentation, September 2001
Slide 1: Atos Origin Year 2001 1st Half Results
1 Atos Origin Year 2001 1st Half Results 1st Half 2001 Results September 2001
Slide 2: Agenda
2 Agenda • 1st HALF 2001 SUMMARY OF OPERATIONS • MERGER IMPLEMENTATION • VISION • APPENDICES 1st Half 2001 Results September 2001
Slide 3: Atos Origin achievements
3 Atos Origin achievements Delivering merger benefits • Merger completed in record time • EUR130 million revenues disposed – Disposal of contact center business to SNT – Other disposals in Brazil, Nordic, Germany • Significant commercial wins • Financial results on track 1st Half 2001 Results Septem
Slide 4: Financial performance
4 Financial performance Atos Origin delivers its commitments to the market In Euro Million 1H 2001 1H 2000 % Change Revenue 1,518 1,402 +8.3% Income from Operations 128.9 82.2 +56.8% Income from Operations % 8.5% 5.9% +2.6 pts Net Income after Goodwill 67.3 28.5 +136% Average Shares # Outstanding (m
Slide 5: Balance sheet & cash flow highlights
Balance sheet & 5 cash flow highlights Restructuring compensated by operational cash flow • Net debt of EUR113 million at the end of June 2001, stable from end 2000 • Strong underlying cash flow from operations (EUR169 M in 1H 2001) • Working capital reduced to 8% of revenue (annualized) • Commitmen
Slide 6: Global presence
6 Global presence Revenue per region In Euro Million 1H 2001 1H 2000 % Change % of total France 540 455 18.6% 36% Netherlands 381 337 13.2% 25% Other EMEA 442 433 2.0% 29% Americas 118 138 -14.5% 8% Asia / Pacific 37 39 -4.1% 2% Total 1,518 1,402 8.3% 100% * Proforma, on-going basis • Strong growth
Slide 7: Merger and Acquisition Policy
7 Merger and Acquisition Policy Criteria for Success • There must be strong complementarity / fit • Clear strategic intent / clear disposal strategy • Management structure must be clear (no compromises) • Communication (internally and externally) • Speed of implementation 1st Half 2001 Results Septe
Slide 8: Consulting & Systems Integration
8 Consulting & Systems Integration Successful restructuring in Systems Integration In Euro Million 1H 2000 1H 2001 % change • Growth in Q2 up to +8% from Revenue 742.1 775.5 +4.5% +1% in Q1 Income from operations 48.6 66.3 +36.2% • Strong growth in France Income from operations % 6.5% 8.5% +2.0 pts
Slide 9: Managed Services
9 Managed Services Surge in Managed Services performance In Euro Million 1H 2000 1H 2001 % change • Accelerating trend toward Revenue 463.7 528.0 +13.9% outsourcing by large Income from European firms operations 42.2 60.8 +44.1% Income from operations % 9.1% 11.5% +2.4 pts • Economies of scale and P
Slide 10: On-line Services
10 On-line Services On-line Services affected by telecoms and internet slowdown In Euro Million 1H 2000 1H 2001 % change Revenue 196.3 214.5 +9.3% • 10%+ growth in payment and Income from CRM services operations 22.5 23.4 +4.0% Income from • 21% growth in internet services operations % 11.4% 10.9% -
Slide 11: KPN outsourcing contract
11 KPN outsourcing contract One of the largest European outsourcing contracts • Minimum revenues of EUR 1.1 billion over 6 years • Taking control of 7 data centers • More than 1,000 employees to transfer to Atos Origin • Contract will increase Managed Services revenues by over 20% • KPN end user ser
Slide 12: Large accounts
12 Large accounts Successful large account program • Large accounts grew by 14% in 1H 2001 • Philips revenues lower but remaining ahead of budget • Remaining 26 accounts grew by more than 25% 1st Half 2001 Results September 2001
Slide 13: Backlog
13 Backlog Recent wins in Managed Services lift backlog • Significant strengthening of Managed Services backlog • Systems integration building up order book • Cover for the remaining of year at 85% as of June 30 1st Half 2001 Results September 2001
Slide 14: Key financial targets
14 Key financial targets Outlook for 2001 Proforma, on going basis 2001 E Annual revenue growth 10% Operating margin >8% 1st Half 2001 Results September 2001
Slide 15: 1st half 2001 wins
15 1st half 2001 wins Region Customer Description Australia Capral Aluminium E-mail Hosting Austria Chemson WAN Services Belgium Tabacofina SAP, Archiving Europe Philips C&SI and Managed Services contracts France André Global outsourcing France Intermarché Loyalty scheme roll out France Renault Web
Slide 16: 1st half 2001 wins
16 1st half 2001 wins Region Customer Description Netherlands / Belgium Euronext Partnership extension Netherlands KPN Datacenter outsourcing Netherlands Shell SAP Management Netherlands CAN Outsourcing Spain Repsol YPF Systems integration Singapore MOOG QAD implementation UK United Biscuits SAP Sup
Slide 17: Agenda
17 Agenda • 1H 2001 SUMMARY OF OPERATIONS • MERGER IMPLEMENTATION • VISION • APPENDICES 1st Half 2001 Results September 2001
Slide 18: Commercial synergies
18 Commercial synergies Ramping up commercial synergies • Accelerating top line growth • Atos Euronext expansion in Belgium and The Netherlands • Focus on large account program • Sales and marketing strengthened to accelerate cross selling 1st Half 2001 Results September 2001
Slide 19: Comprehensive Sales & Marketing Strategy
Comprehensive Sales & 19 Marketing Strategy Market Managers Banking & CPG & High-Tech & Process & Finance Retail Telecoms Industries Domain Managers Large Account Directors Management Management Enterprise Enterprise eBusiness eBusiness Outsourcing Outsourcing Consulting Consulting Solutions Solutio
Slide 20: Restructuring and cost savings
20 Restructuring and cost savings Strong surge in profitability due to restructuring • Major restructuring program in loss-making territories • Corporate costs reduced from 3.2% in 2000 to 1.4% in 1H 2001 • Indirect costs rationalization program • Datacenter reorganization in progress • Premises rat
Slide 21: Restructuring country focus
21 Restructuring country focus • UK – Reorganization 100% complete – Site rationalization 75% complete (3 sites closed) • Germany – Reorganization 50% complete – Site rationalization 50% complete (5 sites closed) • North America – Reorganization 80% complete – Site rationalization 100% complete (4 s
Slide 22: Agenda
22 Agenda • 1H 2001 SUMMARY OF OPERATIONS • MERGER IMPLEMENTATION • VISION • APPENDICES 1st Half 2001 Results September 2001
Slide 23: Vision
23 Vision Clear goals and objectives • Focus on a balanced mix of design, build and run activities • Capitalize on vertical industry sector knowledge • Develop a focused management consulting practice • Focus on customers • Leverage strong human resources management • Build on Global presence 1st Ha
Slide 24: Conclusions
24 Conclusions • Merger completed in record time • Financials on track • International team in place • Global company ready for growth and further acquisitions 1st Half 2001 Results September 2001
Slide 25: Agenda
25 Agenda • 1H 2001 SUMMARY OF OPERATIONS • MERGER IMPLEMENTATION • VISION • APPENDICES 1st Half 2001 Results September 2001
Slide 26: Human resources
26 Human resources Leverage strong human resources management No of employees * 31-12-2000 30-06-2001 % Change % of total France 9,732 10,632 +9% 38.7% Netherlands 6,093 6,061 -1% 22.0% Other EMEA 7,961 7,744 -3% 28.2% Americas 1,881 1,751 -7% 6.4% Asia / Pacific 1,088 1,188 +9% 4.3% Corporate 161 1
Slide 27: Proforma Income Statement
27 Proforma Income Statement (in EUR millions) June 30, % June 30, % 2001/2000% 2001 profitability 2000 profitability growth proforma Revenue 1,518.0 1,402.1 +8.3% Income from operations 128.9 8.5% 82.2 5.9% +57% Net financial expense (3.5) (1.6) Non-recurring items 1.8 (22.2) Corporate income tax (
Slide 28: Statutory Income Statement
28 Statutory Income Statement (in EUR millions) Six months Six months Period ended ended ended June 30, 2001 June 30, 2000 Dec. 31, 2000 (15 months) Revenue 1,518.0 583.9 1,913.7 Operating costs and expenses (613.1) (818.8) Personnel expenses (776.0) (933.9) Total operating expenses (1,389.1) (528.1
Slide 29: Proforma Capital Employed
29 Proforma Capital Employed CAPITAL EMPLOYED (in EUR millions) June 30, 2001 December 31, 2000 Goodwill (gross value) 443.6 386.2 Other intangible fixed assets 37.8 41.3 Tangible fixed assets 204.1 194.8 Investments 29.2 26.5 ------- ------- Total fixed assets 714.7 648 .8 Working capital requireme
Slide 30: Statutory Balance Sheet
30 Statutory Balance Sheet (in EUR millions) June 30, 2001 Dec. 31, 2000 June 30, 2000 Intangible fixed assets * Goodwill 355.7 310.0 239.6 * Other intangible fixed assets 37.8 41.3 19.5 Tangible fixed assets 204.1 194.8 118.6 Investments 29.2 26.5 9.8 Total fixed assets 626.8 572.6 387.5 Inventorie
Slide 31: Cash-flow statement
31 Cash-flow statement (in EUR millions) June 30, 2001 Flow from operating activities before rationalization plan 169,4 +/- Rationalization plan (111,3) Improvement of working capital requirements + 37,4 Cash from operating activities 95,5 Net operating investments (62,4) Net financial investments (