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Atos — Q3 2011 Earnings Presentation
27 slides from Atos's earnings presentation, Oct 25, 2011
Slide 1: Third quarter 2011
Third quarter 2011 Tuesday 25 October, 2011
Slide 2: Disclaimers
Third quarter Disclaimers 2011 25 October 2011 ▶ 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 n
Slide 3: Agenda
Third quarter Agenda 2011 25 October 2011 1. Q3 2011 Highlights 2. Q3 2011 Operational performance 3. Actions to accelerate revenue growth 4. 2011 Objectives 5. Conclusion and Q&A 3
Slide 4: Q3 2011 Highlights
Third quarter 2011 25 October 2011 Gilles Grapinet, Senior Executive Vice President, Global Functions Q3 2011 Highlights 4
Slide 5: Q3 2011 Highlights
Third quarter Q3 2011 Highlights 2011 25 October 2011 2,093 -0.3% -234 Revenue (EUR m) Revenue organic Net debt (EUR m) evolution (Q3 2010 pro forma: EUR (Q3 2010: EUR -198 m) (Q3 2010: -3.5%) 2,099 m) 96% 14 74,088 Book to bill Backlog (EUR bn) Total Group number (Q3 2010: 90%) (1.6 years of revenu
Slide 6: Main wins over the third quarter of 2011 (1/2)
Third quarter Main wins over the third quarter 2011 of 2011 (1/2) 25 October 2011 Manufacturing, Retail & Transport ▶ Siemens AG (Latin America): Non Data Center Services - Renewal ▶ Britvic (UK & IR): Adaptive Workplace (non-cloud) – Extension ▶ Catalent Pharma Solutions (North America): Managed In
Slide 7: Main wins over the third quarter of 2011 (2/2)
Third quarter Main wins over the third quarter 2011 of 2011 (2/2) 25 October 2011 Telecom, Media & Technology ▶ Nokia Siemens Network (Germany and USA): Adaptive Workplace (non- cloud) – Renewal ▶ Wolter Kluwers (Benelux): Infrastructure outsourcing - New ▶ Vodafone (CEE): Legacy Application Develop
Slide 8: Q3 2011 backlog evolution (in EUR billion)
Third quarter Q3 2011 backlog evolution 2011 (in EUR billion) 25 October 2011 Siemens 2.1 2.0 2.8 Other SIS customers 3.8 1.6 years 14.1 14.0 of 1.5 revenue 7.5 years of revenue Backlog Revenue Q3 Order entry Q3 Backlog 01/07/11 2011 2011 30/09/11* * Backlog at 30/09/11 includes updated rules to
Slide 9: Commercial activity
Third quarter Commercial activity 2011 25 October 2011 ▶ Total order entries in Q3 2011 at EUR 2,014 million, representing a book to bill ratio of 96 per cent ▶ The Group expects to reach a book to bill ratio above 100 per cent for the full year 2011 Cyclical Recurring Book to bill Total Group activ
Slide 10: Q3 2011 Operational performance
Third quarter 2011 25 October 2011 Michel-Alain Proch, Executive Vice President and Group CFO Q3 2011 Operational performance 10
Slide 11: Revenue constant scope and exchange rates reconciliation
Third quarter Revenue constant scope and 2011 exchange rates reconciliation 25 October 2011 In EUR million Q3 2011 Q3 2010 % growth Statutory revenue 2,093 1,210 72.9% Scope impact 930 Exchange rates impact -41 Revenue at constant scope and exchange rates 2,093 2,099 -0.3% In EUR million 9M 2011 9M
Slide 12: Q3 2011 revenue performance by Service Line
Third quarter Q3 2011 revenue performance by 2011 Service Line 25 October 2011 In EUR million Q3 2011 Q3 2010* % growth Managed Services 1,007 987 +2.1% Systems Integration 528 550 -4.1% HTTS & Specialized Businesses 421 412 +2.3% Consulting & Technology Services 136 150 -9.2% Total Group 2,093 2,09
Slide 13: H1 2011 statutory revenue: from former to new Atos Service Lines
Third quarter H1 2011 statutory revenue : from 2011 former to new Atos Service Lines 25 October 2011 H1 2011 Transfer Transfer to H1 2011 statutory to C & TS HTTS & SB new Atos In EUR million Consulting 91 +207 298 C & TS Systems Integration 874 -159 -67 648 Systems Integration Managed Services 906
Slide 14: 9 months 2011 revenue performance by Service Line
Third quarter 9 months 2011 revenue 2011 performance by Service Line 25 October 2011 In EUR million 9M 2011 9M 2010* % growth Managed Services 1,862 1,837 +1.4% Systems Integration 1,176 1,202 -2.2% HTTS & Specialized Businesses 1,096 1,078 +1.7% Consulting & Technology Services 435 477 -9.0% Total
Slide 15: Q3 2011 revenue performance by GBUs
Third quarter Q3 2011 revenue performance by 2011 GBUs 25 October 2011 In EUR million Q3 2011 Q3 2010* % growth Germany 448 454 -1.2% France 228 242 -5.8% United-Kingdom & Ireland 349 335 +4.3% Benelux 242 260 -7.0% Atos Worldline 226 224 +1.0% Central and Eastern Europe 129 130 -1.4% North America
Slide 16: 9 months 2011 revenue performance by GBUs
Third quarter 9 months 2011 revenue 2011 performance by GBUs 25 October 2011 In EUR million 9M 2011 9M 2010* % growth Germany 646 644 +0.4% France 733 753 -2.6% United-Kingdom & Ireland 807 779 +3.6% Benelux 683 719 -5.1% Atos Worldline 679 663 +2.4% Central and Eastern Europe 154 154 -0.4% North Am
Slide 17: Cash-flow and 2011 net debt targets
Third quarter Cash-flow and 2011 net debt targets 2011 25 October 2011 SIS acquisition Cash at closing Opening net Free cash Working Loss-making Funding Creation of Free cash Free cash Target net debt flow H1 Dividend Net debt Convertible capital contracts receivable Siemens flow Q3 flow Q4 debt 01/
Slide 18: Q3 2011 Group headcount evolution
Third quarter Q3 2011 Group headcount evolution 2011 25 October 2011 ▶ Number of staff from SIS who joined Atos on July 1st, 2011 was 26,571 ▶ Total number of Atos staff on July 1st 2011 was 74,397 ▶ Total number of Group employees was 74,088 at the end of September 2011 ▶ Direct employees was 65,92
Slide 19: Actions to accelerate revenue growth
Third quarter 2011 25 October 2011 Gilles Grapinet, Senior Executive Vice President, Global Functions Actions to accelerate revenue growth 19
Slide 20: Service Lines
Third quarter Service Lines 2011 25 October 2011 Business HTTS & Specialized Businesses Enabling 20% IT Services Consulting & System Technology Integration Services 27% Foundation 7% IT Services Managed Services 46% On 2010 pro forma revenue basis 20
Slide 21: Atos Global Portfolio
Third quarter Atos Global Portfolio 2011 25 October 2011 Financial Public, Manufacturing Energy Telecom, Services Health & Retail & & Media & Transport Services Utilities Technology (20%) (26%) (32%) (7%) (15%) • Card processing • eGovernment • Manufacturing • Smart metering • B2B / B2C cloud • Inte
Slide 22: Expand addresses what we sell, how we sell and how we support Sales
Third quarter Expand addresses what we sell, how 2011 we sell and how we support Sales 25 October 2011 Portfolio positioning and product-market strategy Win-rate Proactive sales improvement management Sales performance Sales operations management industrialization Resource rebalancing Pre-sales gove
Slide 23: 2011 Objectives
Third quarter 2011 25 October 2011 Gilles Grapinet, Senior Executive Vice President, Global Functions 2011 Objectives 23
Slide 24: 2011 Objectives confirmed
Third quarter 2011 Objectives confirmed 2011 25 October 2011 The following objectives relate to the year 2011 which include 12 months of Atos and 6 months of SIS acquired in July 2011 2011 ▶ Revenue – Around EUR 6.8 billion ▶ Operating margin – 6.2% of Revenue ▶ Free Cash Flow – Around EUR 170 milli
Slide 25: Conclusion and Q&A
Third quarter 2011 25 October 2011 Management team Conclusion and Q&A 25
Slide 26: From Questions to Answers
Third quarter 2011 25 October 2011 From Questions to Answers 26
Slide 27: 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