Slide 1: H1 2024 Results
H1 2024 Results Paris, August 1st, 2024
Slide 2: Today’s presenters
Today’s presenters Jean Pierre Carlo Jacques-François Mustier d’Asaro Biondo de Prest Chairman & CEO Group COO Group CFO 2 | 01/08/2024 | 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. H1 2024 Business Highlights 3. H1 2024 Financial Results 4. Key takeaways 5. Q&A 4 | 01/08/2024 | Atos
Slide 5: Key messages
01 Key messages Jean Pierre Mustier Chairman & CEO
Slide 6: H1 2024 highlights
H1 2024 highlights Successful H1 Operational conciliation process performance highlights • Fully funded financial • Revenue and Operating • Successful delivery of the restructuring plan Margin in line with the UEFA contract • Ample liquidity to run the business plan • Ongoing delivery of business co
Slide 7: H1 2024 performance
H1 2024 performance Group Revenue Group operating margin Group Free cash flow €5.0 bn €115 m €-1.9 bn -2.7% yoy. Organic 2.3% of revenue • Eviden: continued market • Eviden profitability impacted by Including: softness in the Americas and higher SG&A costs allocated to contract scope reductions in t
Slide 8: H1 2024 Business Highlights
02 H1 2024 Business Highlights Carlo d’Asaro Biondo COO
Slide 9: 88% renewal rate demonstrating continued customer confidence in a challenging context
88% renewal rate demonstrating continued customer confidence in a challenging context 1. Positive reception of latest Group financial Challenging environment restructuring announcements for the industry: Market softness in key geographies 2. Delay in contract awards as some customers wait (Americas,
Slide 10: Commercial strategy focused on contracts with fast implementation and large renewals
Commercial strategy focused on contracts with fast implementation, and on large contract renewals leveraging partners Eviden Tech Foundations 85% Group H1 Book-to-bill: 73% (vs 93% in H1 2023) 63% Vs 99% Vs 87% in H1 23 in H1 23 Illustrative Q2 wins Major European Leading European air traffic US use
Slide 11: H1 2024 Group organic growth & revenue by regional business unit
H1 2024 Group organic growth & revenue by regional business unit Organic revenue evolution Revenue Mix Others 3% Southern Southern Americas Americas Europe Europe Stable -6.9% 22% 22% c.€5.0bn Central Northern Europe Europe & APAC Central -4.5% -1.3% Europe Northern Europe & APAC 22% 31% 11 | 01/08/
Slide 12: Southern Europe stable thanks to HPC activities
Southern Europe stable thanks to HPC activities Organic revenue evolution Eviden: Low single digit growth : Southern Americas • Growth in Digital activities thanks to Europe Stable -6.9% ramp-up of large contracts in Spain and in France • HPC deliveries in France Northern Tech Foundations Central Eu
Slide 13: Americas impacted by general slowdown in market conditions and contract completions
Americas impacted by general slowdown in market conditions and contract completions Organic revenue evolution Eviden: Low-double digit decline Southern Americas • Volume reductions & contract Europe Stable -6.9% completions in Healthcare and Finance • Comparative effect in BDS with the delivery of a
Slide 14: Central Europe impacted by delays in Public Sector spending and contract ramp downs
Central Europe impacted by delays in Public Sector spending and contract ramp downs Organic revenue evolution Mid-single digit decline in both Eviden and Tech Foundations Southern Americas Europe Eviden: Stable -6.9% • Project delay in Mission Critical Systems • Contract ramp downs in Manufacturing
Slide 15: Northern Europe & APAC revenue decrease reflects soft market conditions
Northern Europe & APAC revenue decrease reflects soft market conditions Organic revenue evolution Low-single digit decline in both Eviden and Tech Foundations Southern Eviden: Americas Europe Stable -6.9% • Lower demand in Digital activities partly compensated by new business in advanced computing w
Slide 16: Ongoing workforce optimization and decrease in attrition rates
Ongoing workforce optimization and decrease in attrition rates +5,819 95,140 91,611 (6,658) Incl. C. (2,690) +1,900 headcounts in offshore delivery centers Headcount as of Hiring Leavers Restructuring, dismissals Headcount as of 31/12/23 & others 30/06/24 14.3% attrition rate decrease year-over year
Slide 17: H1 2024 Financial results
03 H1 2024 Financial results Jacques-François de Prest CFO
Slide 18: H1 2024 key financial figures
H1 2024 key financial figures Revenue Operating margin Free cash flow €5.0 bn €115 m €-1.9 bn 2.3% of revenue -2.7% yoy. organic €0.2 bn capex -100bps organically €1.3 bn lower WCR optimization vs Dec23 Net loss Normalized Net debt group share net loss €4.2 bn €-1.9 bn €-124 m Impairment charge of V
Slide 19: H1 2024 revenue bridge
H1 2024 revenue bridge Organic evolution in €m: 5,548 (33) 5,515 (140) (416) -0.6% -2.7% 4 4,964 -7.5% +0.1% H1 2023 revenue Adoption of H1 2023 revenue Organic Scope Foreign Exchange H1 2024 revenue new accounting (restated) treatment (agent vs. Principal) 19 | 01/08/2024 | Atos
Slide 20: H1 2024 operating margin
H1 2024 operating margin -100 bps organic decrease vs prior year (in €m) 3.3% Eviden: €58m ✓ OM% at 2.4%, down -230 bps organically ✓ Higher SG&A costs allocated to the business rather than 2.3% allocated to Other expenses 168 ✓ Revenue decline ✓ Lower utilization of billable resources and absorptio
Slide 21: Operating margin to Net income
Operating margin to Net income (in € million) H1 2024 H1 2023 Operating margin 115 212 Reorganization costs -60 -430 Rationalization and associated costs -5 -30 Integration and acquisition costs -2 -4 Amortization of intangible assets (PPA from acquisitions) -29 -60 Equity-based compensation -3 -14
Slide 22: Operating margin to Net income
Operating margin to Net income (in € million) H1 2024 H1 2023 Operating margin 115 212 • €-34 m restructuring expenses Reorganization costs -60 -430 • €-26 m outstanding activities on the separation of the Group Rationalization and associated costs -5 -30 Integration and acquisition costs -2 -4 Amor
Slide 23: Operating margin to Net income
Operating margin to Net income (in € million) H1 2024 H1 2023 Operating margin 115 212 Reorganization costs -60 -430 Rationalization and associated costs -5 -30 Integration and acquisition costs -2 -4 Consisting mainly of: Amortization of intangible assets (PPA from acquisitions) -29 -60 • €-1,452 m
Slide 24: Operating margin to Net income
Operating margin to Net income (in € million) H1 2024 H1 2023 Operating margin 115 212 Reorganization costs -60 -430 Rationalization and associated costs -5 -30 Integration and acquisition costs -2 -4 Amortization of intangible assets (PPA from acquisitions) -29 -60 Equity-based compensation -3 -14
Slide 25: Operating margin to Net income
Operating margin to Net income (in € million) H1 2024 H1 2023 Operating margin 115 212 Reorganization costs -60 -430 Rationalization and associated costs -5 -30 Integration and acquisition costs -2 -4 Amortization of intangible assets (PPA from acquisitions) -29 -60 Equity-based compensation -3 -14
Slide 26: Free cash flow reflecting increased investments for customers and reduction of one-off working capital
Free cash flow reflecting increased investments for customers and reduction of one-off working capital optimization (in € million) H1 2024 H1 2023 Operating Margin before Depreciation & Amortization (OMDA) 373 487 Capital expenditures -278 -110 Lease payments -159 -181 Change in working capital requ
Slide 27: Free cash flow reflecting increased investments for customers and reduction of one-off working capital
Free cash flow reflecting increased investments for customers and reduction of one-off working capital optimization (in € million) H1 2024 H1 2023 Capex up €168 m, reflecting significant Operating Margin before Depreciation & Amortization (OMDA) 373 487 investment in client projects for future Capit
Slide 28: €1.3 billion less working capital optimization in H1 2024 vs year-end fiscal 2023
€1.3 billion less working capital optimization in H1 2024 compared vs year-end fiscal 2023, as planned Working capital optimization €1.8 bn • Working capital optimized through: • Accounts receivable 650 -€1.3bn non-recourse factoring • Cash in advance received from customers • Specific optimization
Slide 29: Free cash flow reflecting increased investments for customers and reduction of one-off working capital
Free cash flow reflecting increased investments for customers and reduction of one-off working capital optimization (in € million) H1 2024 H1 2023 Operating Margin before Depreciation & Amortization (OMDA) 373 487 Capital expenditures -278 -110 Lease payments -159 -181 Change in working capital requ
Slide 30: Financial restructuring Update
Financial restructuring Update Completion of an important step in the financial restructuring process ✓ ✓ ✓ Secured c.€1.7 bn Net debt Reduction Debt maturity new financings by €3.1 bn extended to 2029 to fund the business • €2.9 bn of debt and beyond equitization €800 m short-term • €0.2 bn of capi
Slide 31: Key takeaways
04 Key takeaways Jean Pierre Mustier CEO
Slide 32: Key takeaways
Key takeaways Refinancing plan secures 1 Atos long-term future Renewed focus on business 2 growth, contract delivery and client satisfaction Ongoing strong 3 employee commitment 32 | 01/08/2024 | Atos
Slide 33: Q&A session
05 Q&A session
Slide 34: 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. © 2024 Atos. Confidential information owned by Atos, to be used by the recipient only. This document, or any part o