Atos Se · EURONEXT:ATO
Atos — Q3 2017 Earnings Presentation
37 slides from Atos's earnings presentation, Oct 24, 2017
Slide 1: Q3 2017 revenue
Q3 2017 revenue Bezons October 24, 2017
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
Slide 3: Agenda
Agenda 1.Q3 2017 highlights 2.Operational performance 3.Commercial activity 4.Transformation TOP Program 5.Conclusion and Q&A 3 | Atos – Q3 2017 revenue
Slide 4: Q3 2017 highlights
Q3 2017 highlights Thierry Breton Chairman & CEO
Slide 5: Q3 2017 highlights
Q3 2017 highlights Contract signatures: acceleration in digital businesses materializing the Atos Digital Transformation Factory success Organic growth by division fully in line with 3-year plan Pursue acquisition strategy creating value for our shareholders with financial discipline A new step in t
Slide 6: Q3 2017 key figures
Q3 2017 key figures Revenue Organic growth €3,002m +2.5% +10.9% at constant +2.3% on 9m YTD exchange rates Order entry Total headcount €2,892m 98,692 96% book to bill -0.5% in Q3 (excluding scope effect) 6 | Atos – Q3 2017 revenue
Slide 7: A continued revenue growth momentum driven by the Group commercial dynamism
A continued revenue growth momentum driven by the Group commercial dynamism Statutory revenue (€m) Organic evolution % 3,244 3,200 3,200 3,111 0.4% 3,036 3,002 2,940 2,757 2,777 2,666 2,708 0.3% 2,700 2,514 2,427 +2.4% +2.5% 0.2% +2.0% +1.9% 2,200 +1.8% +1.8% +1.6% 0.1% 1,700 +0.4% +0.3% +0.5% 0.0%
Slide 8: Pursue acquisitions strategy in 2017
Pursue acquisitions strategy in 2017 Reinforcing Atos’ footprint and digital capacities Cloud Big Data Cybersecurity e-health e-payments orchestration & AI The Breakaway Group baltics Healthcare Provider Consulting e-payments North America Digital technologies Cost synergies 8 | Atos – Q3 2017 reven
Slide 9: Atos strategy in AI development
From data to artificial intelligence Atos strategy in AI development Largest European data 1/ Access to Data hosting company integrating, processing, Legacy data and data lakes managing, and securing our customers’ data CYBERSECURITY 2/ Algorithms factory and software expertise Reinforced internal r
Slide 10: Rolling-out Artificial Intelligence to Atos' major clients
Rolling-out Artificial Intelligence to Atos’ major clients Our solutions already …delivering the best business embedding AI… outcomes to our clients 1/ Data lakes Varian Medical Systems: Improve product manufacturing City of Eindhoven: Real time forecast Deep learning 2/ algorithms Siemens: Industri
Slide 11: Operational performance
Operational performance Elie Girard Group CFO
Slide 12: Constant scope and exchange rates figures reconciliation
Constant scope and exchange rates figures reconciliation In € million Q3 2017 Q3 2016 change Statutory revenue 3,002 2,777 +8.1% Exchange rates effect -69 Revenue at constant exchange rates 3,002 2,708 +10.9% Scope effect 227 Exchange rates effect on acquired/disposed perimeters -4 Revenue at consta
Slide 13: Q3 2017 revenue by Division
Q3 2017 revenue by Division ▶ Organic growth by Division fully in line with 3-year plan ▶ Continuing focus on cross-Divisions sales fueled by Digital 12% Transformation Factory offerings 5% 25% 57% Organic Q3 2017 Q3 2016* In € million evolution Infrastructure & Data Management 1,712 1,697 +0.9% Inf
Slide 14: Infrastructure & Data Management
Infrastructure & Data Management ▶ Continued strong growth in Hybrid Cloud Transformation ▶ Leadership reinforced in Digital Workplace North America 14% 28% Germany In € million Q3 2017 7% United-Kingdom & Ireland Revenue 1,712 9% Organic growth +0.9% Benelux & The Nordics Order entry 1,490 Book to
Slide 15: Business & Platform Solutions
Business & Platform Solutions ▶ Positive trend recorded in the previous quarters confirmed ▶ Increasing demand related to S/4 HANA implementation ▶ New projects delivered in Industry 4.0 based on Atos Codex France 25% Germany 30% In € million Q3 2017 Benelux & The Nordics Revenue 762 Organic growth
Slide 16: Big Data & Cybersecurity
Big Data & Cybersecurity ▶ Efficient cross-selling on existing Infrastructure & Data Management customers ▶ Strong revenue growth in Cybersecurity ▶ Dynamic HPC and bullions sales supporting Big Data services France 19% Germany In € million Q3 2017 3% North America Revenue 154 49% 5% Organic growth
Slide 17: Worldline
Worldline In € million Q3 2017 Revenue 375 ▶ Strong revenue growth acceleration Organic growth +6.4% ▶ Increased volumes in all businesses Order entry 384 Book to bill 103% ▶ High demand for digitalization of Headcounts 9,142 transactions Revenue mix by Country ▶ India boosted by demonetization Fran
Slide 18: Q3 2017 revenue by Business Unit
Q3 2017 revenue by Business Unit ▶ Positive dynamic in continental Europe 12% 19% ▶ Atos UK operations well positioned to face Brexit ▶ Strong mobilization in North America to boost 16% commercial activity 17% Organic 9% Q3 2017 Q3 2016* In € million evolution 13% 13% Germany 561 552 +1.6% North Ame
Slide 19: Q3 2017 headcount evolution
Q3 2017 headcount evolution +3,321 -3,801 +692 98 480 98 692 Headcount as Scope Hiring Leavers, Headcount as of 30/06/17 restructuring of 30/09/17 & dismissals 19 | Atos – Q3 2017 revenue
Slide 20: Acquisitions 1/2
Acquisitions 1/2 Cybersecurity Cloud Orchestration Company • Circa 70 ServiceNow certified • Cybersecurity IP consultants joining 200+ Atos Contribution • Network security expertise certified staff (Engage ESM) to Atos • Atos in a leading position in • Market shares in telco and aerospace ServiceNow
Slide 21: Acquisitions 2/2
Acquisitions 2/2 e-health e-payments Company The Breakaway Group baltics Healthcare Provider Consulting • Consulting skills • Strong reinforcement in online • Reinforced leading position in North payment and e-commerce Contribution America (Anthelio) on healthcare to Atos growing market • Leading po
Slide 22: IFRS 15 implementation
IFRS 15 implementation Identification of the performance obligations in multiple arrangements services contracts Not For Atos: Transition & material Estimated effect: transformation/build phases ▶ c. -5% on revenue Costs to acquire a contract Not ▶ c. +50 bps on For Atos: Incremental pre-sales costs
Slide 23: Commercial activity
Commercial activity Patrick Adiba Chief Commercial Officer
Slide 24: Q3 Commercial activity dashboard
Q3 Commercial activity dashboard Order entry Book to bill ratio €2.9bn 96% 105% September YTD 2017 Backlog Qualified pipeline €21.9bn €7.3bn 1.8 years of revenue 7.0 months of revenue 24 | Atos – Q3 2017 revenue
Slide 25: New Q3 2017 contracts leveraging the Atos Digital Transformation Factory
New Q3 2017 contracts leveraging the Atos Digital Transformation Factory Hybrid Cloud SAP HANA Workplace Large manufacturer in the US Codex Asian Tier 1 oil company Digital payments 25 | Atos – Q3 2017 revenue
Slide 26: Main sales focus for Q4
Main sales focus for Q4 Strongly focus on Complete the Digital Transformation NAO sales organization transformation Factory momentum Leverage Increase New sales channels Unify cross-selling to accelerate bullions on Atos customers base sales 26 | Atos – Q3 2017 revenue
Slide 27: Atos Digital Transformation Factory: Recognized Strong Leadership
Atos Digital Transformation Factory: Recognized Strong Leadership Leader Application Transformation Digital Services Digital Technology Strategy • Leader Digital Transformation Services • Major Player Digital Services Transformation & Consultancy Services Atos Canopy Atos Digital Atos Orchestrat
Slide 28: Transformation TOP Program
Transformation TOP Program Eric Grall Head of Global Operations
Slide 29: TOP is Atos DNA: focus on continuous improvement
TOP is Atos DNA: focus on continuous improvement “Tier One Program” Total Operational Performance Turn around program “The right to be the Leader” i.e. more growth, more margin, more attractive to talents than other.” TOP2 to turn around and integrate SIS Tier one Company: “The right to become a Qua
Slide 30: 2017 TOP Programs to secure margin improvement
2017 TOP Programs to secure margin improvement Continuous improvement TOP Programs c.10% Volumes/ mix New Top Pro forma Programs 9.4% & pensions Other TOP actions RISE Salary Productivity, Increase LEAN,… Automatio n 2017 New TOP Programs: Price concession Workforce • Application Management Mgt indu
Slide 31: Atos Infrastructure & Data Management: automation update
Atos Infrastructure & Data Management : automation update Q3 automation Automation catalog x 2 account coverage (BOTS deployed) 211 From 340 BOTS in H1 to c. 700 BOTS in H2 (+90 vs. H1) Current average Account with highest automation DC automation achieved achieved to date (post full deployment) (po
Slide 32: Atos BDS and B&PS: automation update
Atos BDS and B&PS : automation update BDS B&PS B&PS : 2,000+ Q3 Automation Prescriptive SOC BOTS deployed in H2 Account Coverage 70% for customer Automation achieved environments 100+ on incoming security incidents B&PS Atos Virtual B&PS Atos Intelligent Assistant (AVA) Automation Platform & complem
Slide 33: Conclusion and Q&A
Conclusion and Q&A Thierry Breton Chairman & CEO
Slide 34: 2017 guidance & 2019 targets
2017 guidance & 2019 targets 2017 2019 2% to 3% above +10% at constant FX Revenue growth 2017-2019 above +2% organically organic CAGR Operating margin circa 10% of revenue circa 11% of revenue* Free cash flow: Operating margin between conversion into free c. 65% 55% and 58% cash flow 34 | Atos – Q3
Slide 35: Key take-aways
Key take-aways Solid growth in all Continued high Accelerating the focus on TOP US sales Divisions matching transformation organization customers’ needs Program transformation Pursuing our Acceleration in Customers digital dynamic automation transformation acquisition roll-out powered by AI strategy
Slide 36: Q&A
? ? Q&A
Slide 37: Thanks
Thanks Atos, the Atos logo, Atos Codex, Atos Consulting, Atos Worldgrid, Worldline, BlueKiwi, Bull, Canopy the Open Cloud Company, Unify, Yunano, Zero Email, Zero Email Certified and The Zero Email Company are registered trademarks of the Atos group. April 2016. © 2016 Atos. Confidential information