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Atos — Q1 2024 Earnings Presentation
20 slides from Atos's earnings presentation, Apr 25, 2024
Slide 1: Q1 2024 Performance
Q1 2024 Performance Bezons April 25, 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 Paul Carlo Jacques-François Saleh d’Asaro Biondo de Prest Group CEO Group COO Group CFO 3 | 25-04-2024 | © Atos
Slide 4: Agenda
Agenda 1. Q1 2024 Highlights 2. Q1 2024 Performance 3. Financial update 4. Q&A 4 | 25-04-2023 | © Atos
Slide 5: Q1 2024 highlights
Q1 2024 highlights 1 Q1 2024 Revenue €2,5 billion, down -2.6% organically reflecting • Continued softness in Americas and the UK in Eviden; • Lower scope of work with certain clients in Americas and Central Europe in Tech Foundations 2 Order entry of €1.6bn for a book-to-bill of 64% reflecting delay
Slide 6: Q1 2024 highlights: financing, business plan and refinancing
Q1 2024 highlights 5 Implementation of the €450m interim financing in progress 6 Business plan presented on April 9 to be adjusted to reflect current business performance and trends. - Update to be communicated to the market in the coming days 7 Refinancing proposal deadline extended to May 3 - Allo
Slide 7: Q1 2024 performance
Q1 2024 performance Group* Eviden* Tech Foundations* Revenue €2.479 m €1.164 m €1.314 m Organic evolution -2.6% -3.9% -1.5% Order entry €1.586 m €966 m €620 m Book-to-bill 64% 83% 47% Operating margin €48 m €22 m €26 m OM% 1.9% 1.9% 2.0% 7 | 25-04-2023 | © Atos *: unaudited figures
Slide 8: Eviden order entry in Q1
Eviden order entry in Q1: improved commercial activity in high-performance computing 83% 104% Q1 Eviden book-to-bill Q1 BDS book-to-bill Q1 main wins German European Federal Office Parliament Accelerating digital Implementation AI supercomputer designed for Major extension Expansion of transformatio
Slide 9: Tech Foundations order entry in Q1
Tech Foundations order entry in Q1: impacted by contract decisions delay, particularly in the public sector 47% Q1 2024 book-to-bill Q1 main wins Asian bank Governmental entity in Egypt 3-year extension for Provide and implement smart 6-year managed services mainframe upgrade campus networks in orde
Slide 10: Group organic growth and revenue by regional business unit
Q1 2024 Group organic growth and revenue by regional business unit YoY Organic evolution Revenue Mix Others 3% Southern Southern Americas Americas Europe Europe 22% +0.7% -7.5% 23% €2.5bn Central Northern Northern Europe Europe & APAC Europe & Central -3.8% -3.2% Europe APAC 22% 30% 10 | 25-04-2023
Slide 11: Group organic growth and revenue by regional business unit
Q1 2024 Group organic growth and revenue by regional business unit YoY Organic Growth Eviden Mid-single digit growth: Southern • Strong activity in High-Performance Americas Computing Europe +0.7% -7.5% • Growth in Digital benefitting from large contracts ramp-up in Spain and with a major European u
Slide 12: Group organic growth and revenue by regional business unit
Q1 2024 Group organic growth and revenue by regional business unit YoY Organic Growth General slowdown in market conditions Southern Americas Eviden: Europe +0.7% -7.5% • BDS: Tougher comparison with the prior year (delivery of a HPC in Q1 ‘23) • Digital: contract completions and volume decline in H
Slide 13: Group organic growth and revenue by regional business unit
Q1 2024 Group organic growth and revenue by regional business unit YoY Organic evolution Eviden: Slight revenue decline: Southern Europe Americas • Growth in Digital activities in Germany +0.7% -7.5% and Austria • Lower activities in BDS Tech Foundations Central Northern High-single digit revenue de
Slide 14: Group organic growth and revenue by regional business unit
Q1 2024 Group organic growth and revenue by regional business unit YoY Organic evolution Eviden High-single digit decline: Southern • Lower demand from Public Sector, Americas Europe Healthcare and Insurance customers +0.7% -7.5% Tech Foundations Revenue slightly up: • Contribution from Asia and inc
Slide 15: Q1 2024 revenue bridge
Q1 2024 revenue bridge Organic evolution In €m: 2,806 (16) 2,790 (67) (239) -0.6% (4) 2,479 -2.6% -8.4% -0.1% Q1 2023 Adoption of Q1 2023 Organic Scope Foreign Q1 2024 revenue new accounting revenue Exchange revenue treatment (restated) (agent vs. Principal) 15 | 25-04-2023 | © Atos
Slide 16: Q1 2024 operating margin
Q1 2024 operating margin -140 bps organic decrease vs prior year In €m: 3.3% Eviden: €22m ✓ OM% at 1.9%, down -330 bps organically 1.9% ✓ Revenue decline year-over-year 84 ✓ Lower utilization of billable resources ✓ Investment in Advanced Computing 48 Tech Foundations: €26m ✓ OM% at 2.0%, up +50 bps
Slide 17: Headcount evolution
Headcount evolution +3,079 (3,073) 95,140 (1,504) 93,642 (1,159) vs Q1 2023 Headcount as of Hiring Leavers Restructuring dismissals & Headcount as of 31/12/2023 transfers 31/03/2024 13% LTM attrition (lowest Q1 over 3 years) 17 | 25-04-2023 | © Atos
Slide 18: Ongoing amicable conciliation procedure
Ongoing amicable conciliation procedure • Interim financing of €450 million from existing banking group, bondholders and the French State in progress • Business plan presented on April 9 to be adjusted to reflect current business performance and trends • Revisions to the 2024-2027 business plan to l
Slide 19: Agenda
Agenda 1. Q1 2024 Highlights 2. Q1 2024 Performance 3. Financial update 4. Q&A 19 | 25-04-2023 | © Atos
Slide 20: 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 Atos is a registered trademark of Atos SE. April 2023. © 2023 Atos. Confidential information owned by Atos, to be used by the recipient only. This document, o