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Atos — Atos Origin — FY2010 Earnings Presentation
40 slides from Atos's earnings presentation, Feb 16, 2011
Slide 1: Media Presentation
MEDIA PRESENTATION 1 CORPORATE PRESENTATION www.atosorigin.com
Slide 2: Contents
CONTENTS 1. Full year 2010 Highlights 2. Full year 2010 Results 3. Vision 4. Strategy update 5. SIS acquisition follow-up 6. Objectives 2011 2 Full year 2010 Results - Paris, February 16th, 2011 www.atosorigin.com
Slide 3: 2010: We reached our commitments
2010: We reached our commitments Guidance Achievement Ambition to improve by +50 Operating Margin to +100 basis points 6.7% with . H1: 6.0% compared to 2009 i.e. 6.2% - 6.7% . H2: 7.4% Objective to confirm the Operating Cash Flow : improvement achieved in - 2009: EUR 117 M Cash Generation 2009 by ge
Slide 4: 2010 Highlights (1/2)
2010 Highlights (1/2) Agreement with Siemens » Global partnership » To acquire Siemens Information Services (SIS) Improved commercial activity » Book to Bill ratio at 111% in 2010 (125% in Q4 2010) compared to 100% in 2009 (89% in Q4 2009) » Implementation of sales organization by market (GAMA) TOP
Slide 5: 2010 Highlights (2/2)
2010 Highlights (2/2) HTTS Strategy & Specialized businesses » Roll-out in new geographies » First signatures and increasing pipeline » WorldGrid Building the future by accelerating innovation » Scientific Community » New Global Key Offerings 5 Full year 2010 Results - Paris, February 16th, 2011 www
Slide 6: Improved commercial activity
Improved commercial activity » Total order entry of EUR 5 590 M representing a book to bill ratio at 111% Total Systems Managed Book to Bill Consulting HTTS Group Integration Services FY 2010 111% 109% 113% 93% 113% FY 2009 100% 93% 96% 106% 119% » Full qualified pipeline at EUR 2.7 B, compared to E
Slide 7: Solid commercial activity in Q4 2010
Solid commercial activity in Q4 2010 » Q4 2010 order entry at EUR 1,650 M representing +39% compared to Q4 2009 Consulting + Systems Managed Services + Book to Bill Total Group Integration HTTS + Medical BPO Q4 2010 125% 104% 139% Q4 2009 89% 94% 85% Q4 Book to Bill ratio reached 125% compared to th
Slide 8: Some customers' contracts won in Q4 2010
Some customers’ contracts won in Q4 2010 France : Rexel, EADS DGAC UK, DWP, Royal Mail, Home Office et NHS Scotland. Benelux, Philips, ING, ABN AMRO et Achmea. Atos Worldline ING, Cortal Consors et ABN AMRO. Germany, Karstadt , Neckermann Brasil, Petrobras South africa Vodacom 8 Full year 2010 Resul
Slide 9: Contents
CONTENTS 1. Full year 2010 Highlights 2. Full year 2010 Results » Operational performance » Financial results 3. Vision 4. Strategy update 5. SIS acquisition follow-up 6. Objectives 2011 9 Full year 2010 Results - Paris, February 16th, 2011 www.atosorigin.com
Slide 10: 2010 Financial Highlights (1/4)
2010 Financial Highlights (1/4) Operational performance » Revenue at EUR 5,021 M with an organic decrease at -3.5% In € Million FY 2010 FY 2009 ∆% Revenue 5,021 5,127 -2.1% Exchange rates impact 75 Revenue at constant exchange rates 5,021 5,202 -3.5% 10 Full year 2010 Results - Paris, February 16th,
Slide 11: 2010 Financial Highlights (3/4)
2010 Financial Highlights (3/4) Full year 2010 Operating Margin evolution » up by +107 pts compared to 2009 6.7% 5.7% 7.4% 6.8% 6.0% 4.6% 119 150 175 187 294 337 H1 09 H1 10 H2 09 H2 10 FY 09 FY 10 NB: all figures based at 2010 scope and exchange rates (M€) 11 Full year 2010 Results - Paris, Februar
Slide 12: 2010 Financial Highlights
2010 Financial Highlights Financial performance » Operating Margin at EUR 337 M (6.7% of revenue), representing an increase of +107bp compared to 2009 at same scope and exchange rates » OMDA at EUR 532 M, representing 11% of revenue » EUR 65 M of staff restructuring costs as part of the Group transf
Slide 13: 2010 Performance by service line
2010 Performance by service line Revenue and Operating Margin Revenue Operating Margin Operating Margin % % In EUR M illion FY 2010 FY 2009 FY 2010 FY 2009 FY 2010 FY 2009 growth Managed Services 1,847 1,945 -5.0% 146 104 7.9% 5.3% Systems Integration 1,771 1,859 -4.8% 70 80 4.0% 4.3% HTTS 1,035 991
Slide 14: Managed Services
Managed Services Revenue breakdown by GBU Other » 2010 GCEMA countries UK 12.8% 12.9% 20.9% Benelux France 29.2% 24.2% Revenue and Operating Margin » Two-year comparison FY 2010 FY 2009 % Organic (*) In € Million Revenue 1,847 1,945 -5.0% Operating margin 145.7 103.9 +40.3% Operating margin rate 7.9
Slide 15: System Integration
System Integration Utilization rate Revenue breakdown by GBU » 2010 Other » Evolution by quarter GCEMA Spain countries H1 2009 H2 2009 H1 2010 H2 2010 13.4% 11.2% 9.2% UK 81% 81% 81% 80% 12.2% Benelux 18.1% France 35.9% Revenue and Operating Margin » Two-year comparison FY 2010 FY 2009 % Organic (*)
Slide 16: High Tech Transactional Services
High Tech Transactional Services Spain Revenue breakdown by GBU AWL AWL 2.4% Asia 3.5% Germany Belgium » 2010 30.9% 9.5% Other countries Total UK 2.1% Atos Wordline 8.9% = 83.7% AWL France 42.7% Revenue and Operating Margin » Two-year comparison FY 2010 FY 2009 % Organic (*) In € Million Revenue 1,0
Slide 17: Consulting
Consulting Utilization rate Revenue breakdown by GBU Asia » Evolution by quarter » 2010 Spain 0.6% UK 21.2% H1 2009 H2 2009 H1 2010 H2 2010 24.3% 64% 67% 70% 69% France 18.2% Benelux 35.7% Revenue and Operating Margin » Two-year comparison FY 2010 FY 2009 % Organic (*) In € Million Revenue 208 247 -
Slide 18: 2010 Performance by Global Business Unit
2010 Performance by Global Business Unit Revenue and Operating Margin Total Revenue Operating Margin Operating Margin % In EUR M illion FY 2010 FY 2009 % growth FY 2010 FY 2009 FY 2010 FY 2009 France 1,133 1,128 +0.4% 45 47 3.9% 4.2% Benelux 938 997 -5.9% 92 84 9.9% 8.4% United Kingdom 904 937 -3.5%
Slide 19: Headcount evolution
Headcount evolution Over the year 2010 » Increasing direct staff since May 2010 to stick to the evolution of activity » Decreasing indirect staff as an effect of restructuring to reduce cost base (TOP program) » Hiring: +5,884 new employees +5,884 +416 49,036 -4,874 48,278 -2,184 Opening staff Hirin
Slide 20: Statutory Income statement
Statutory Income statement FY 2009 FY 2009 In € M illion FY 2010 Comparable Statutory Revenue 5,021 5,127 5,127 Operating Margin 337 291 290 % revenue 6.7% 5.7% 5.7% Staff reorganisation (65) (141) (141) Premises offices rationalisation (39) (86) (86) Other operating income and expenses (34) (32) 7
Slide 21: Cash Flow statement
Cash Flow statement (In EUR Million) FY 2010 FY 2009 OMDA (*) 532 501 Net capital Expenditures (176) (198) Change in working capital 53 35 Cash from Operations 409 338 Taxes paid (61) (40) Net costs of financial debt paid (5) (11) Net interest of convertible bonds (13) (2) Reorganisation (100) (117)
Slide 22: Contents
CONTENTS 1. Full year 2010 Highlights 2. Full year 2010 Results 3. Vision 4. Strategy update 5. SIS acquisition follow-up 6. Objectives 2011 22 Full year 2010 Results - Paris, February 16th, 2011 www.atosorigin.com
Slide 23: Strategy designed to develop the segments of the IT services market
Strategy designed to develop the 2 segments of the IT services market » IT services to support customers’ top line growth for their : CRITICAL IT Competitive positioning BUSINESS Time to Market Innovation Atos Origin » Atos Origin answers : Industry expertise HTTS portfolio roll out operates IT Key
Slide 24: Dynamics of the strategy
Dynamics of the strategy 2009 2010 2011 2012 2013 Operating Margin Objective: GROUP TRANSFORMATION 7% to 8%, catching up with competitors • ROLL OUT OF HTTS Objective: • DEVELOPMENT OF IT SPECIALIZED BUSINESSES X2 HTTS • INNOVATION • NEW DISTINCTIVE OFFERINGS • TOPLINE GROWTH / CONSOLIDATE MARKET PO
Slide 25: Contents
CONTENTS 1. Full year 2010 Highlights 2. Full year 2010 Results 3. Vision 4. Strategy update 5. SIS acquisition follow-up 6. Objectives 2011 25 Full year 2010 Results - Paris, February 16th, 2011 www.atosorigin.com
Slide 26: TOP, a dynamic transformation program
TOP, a dynamic transformation program: 30 global initiatives within the Group 5. Well Being At Work » Seven projects to attract and retain Talents, and innovate at work 4. Sustainability »Implementation of initiatives to become a leader in Corporate 1. Cost optimization and Responsibility cash manag
Slide 27: Top Sales: best-in-class account planning process
Top Sales: we have implemented a best-in-class account planning process Main achievements in 2010 » 700 accounts have account managers and proper account plans: for all above EUR 5 M yearly revenues, to be updated twice a year » Account manager function defined consistently across GBUs and extended
Slide 28: Showing Leadership in Corporate Responsibility
Showing Leadership in Corporate Responsibility Highly demanding commitment to be “best in class” » 1st IT Company Member of the GRI since 2009 » Member of the UN Global Compact since 2010 » 1st CR Report published in 2010 and qualified by GRI, world de facto reporting standard A zero carbon IT infra
Slide 29: Well Being at Work
Well Being at Work Imagine the new way of working and be recognized as one of the best companies to work for 2010 achievements WbW Ambitions for 2011 » Atos Campus concept to be deployed (Pune, Madrid, Frankfort, Grenoble) WbW as a leverage for SIS » Innovation at work with smart collaborative tools
Slide 30: HTTS: first successes and continued focused sales effort
HTTS: first successes and continued focused sales effort 2010 effort focused on building teams, and sales momentum, with a specific effort on closing first new significant deals in Q4 and preparing 2011 priority initiatives Sales activity in Q4 was strong, both on local HTTS activities, and on lever
Slide 31: Delivering on our innovation roadmap
Delivering on our innovation roadmap Cloud Computing Smart Utilities Technology Green IT Social 14 January 2010 31 st March 2010 Smart Mobility Social Computing ECM& Collaboration Economic Financial 6 July 2010 7 February 2011 31 Full year 2010 Results - Paris, February 16th, 2011 www.atosorigin.com
Slide 32: Contents
CONTENTS 1. Full year 2010 Highlights 2. Full year 2010 Results 3. Vision 4. Strategy update 5. SIS acquisition follow-up 6. Objectives 2011 32 Full year 2010 Results - Paris, February 16th, 2011 www.atosorigin.com
Slide 33: Creation of a European champion in IT services
Creation of a European champion in IT services : New company combining Atos Origin and SIS » A “best in class” company in the two major IT domains Reinforce the Business New Enabling services Company through focused partnerships to develop specialized business Leader in jointly with Siemens Europe B
Slide 34: Integration timeline
Integration timeline Dec. 2010 – Feb. 2011 Mid-April 2011 June 2011 early July 2011 Employee Works’ Antitrust Expected council opinion Atos EGM clearance closing (Jan, 13th) • CEO kick-off • All day integration Instigating a top (January 10th) review (March 15th) management • TOP² kick off • Cluster
Slide 35: Integration of SIS: initiatives for effective integration
Integration of SIS : 24 initiatives to achieve effective integration and operational efficiency SIS activity will be included in one of these workstreams Integration workstreams TOP2 workstreams I1 • Financial processes T1 TOP² • Global account Plan I2 Sales • Social processes T2 • Project Improveme
Slide 36: Contents
CONTENTS 1. Full year 2010 Highlights 2. Full year 2010 Results 3. Vision 4. Strategy update 5. SIS acquisition follow-up 6. Objectives 2011 36 Full year 2010 Results - Paris, February 16th, 2011 www.atosorigin.com
Slide 37: Objectives 2011 (1/2)
Objectives 2011 (1/2) (current Atos Origin Scope) Revenue » Considering the outcome from its large customers and an improving economic environment, the Group expects to return to a slight organic growth in 2011. Operating Margin » Operating Margin target is to increase by +50 to +100 basis points in
Slide 38: Objectives 2011 (2/2)
Objectives 2011 (2/2) With consolidation of SIS, expected as of 1 July 2011 (subject to anti-trust clearance and Shareholders’ approval) » As soon as the transaction is completed, the new guidance for the year 2011 will include SIS (6 months expected in the second half of the year) » This guidance i
Slide 39: Objectives 2011 (2/2)
Objectives 2011 (2/2) With consolidation of SIS, expected as of 1 July 2011 (subject to anti-trust clearance and Shareholders’ approval) » For 2011, with 12 months for Atos Origin (January to December) and six months for Siemens IT Solutions and Services (July to December), these targets are the fol
Slide 40: Full year 2010 Results - Paris, February 16th, 2011 www.atosorigin.com
40 Full year 2010 Results - Paris, February 16th, 2011 www.atosorigin.com