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Atos — Q1 2015 Earnings Presentation
25 slides from Atos's earnings presentation, Apr 22, 2015
Slide 1: First quarter 2015
First quarter 2015 Wednesday, April 22, 2015 - Bezons
Slide 2: Disclaimers
Disclaimers First quarter 2015 April 22, 2015 ▶ 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 nu
Slide 3: Agenda
First quarter Agenda 2015 April 22, 2015 1. Q1 2015 highlights 2. Operational performance 3. Commercial activity 4. Update on Xerox ITO acquisition 5. Conclusion 6. Q&A session 3
Slide 4: Q1 2015 highlights
First quarter 2015 April 22, 2015 Thierry Breton, Chairman & CEO Q1 2015 highlights 4
Slide 5: Q1: reaching important milestones
Q1: reaching important milestones First quarter 2015 Well on track to achieve 2016 Ambition April 22, 2015 Q1 2015 €2,427m +17.6% year-on-year (+12.2% at constant exchange rates) revenue +0.2% organic growth Q1 2015 €2,198m order entry +26% at constant exchange rates (91% book to bill) Cloud, Big Da
Slide 6: 2015 objectives
First quarter 2015 objectives 2015 April 22, 2015 The Group confirms all its objectives for 2015 as stated in the February 18, 2015 release, i.e.: ▶ Revenue The Group targets a positive organic revenue growth ▶ Operating margin The Group has the objective to improve its operating margin rate targeti
Slide 7: Operational performance
2 First quarter 2015 April 22, 2015 Elie Girard, Executive Vice President and Group CFO Operational performance 7
Slide 8: Constant scope and exchange rates reconciliation
Constant scope and exchange First quarter 2015 rates reconciliation April 22, 2015 In € million Q1 2015 Q1 2014 % change Statutory revenue 2,427 2,064 +17.6% Scope effect 259 Exchange rates effect 99 Revenue at constant scope and exchange rates 2,427 2,422 +0.2% ▶ Scope effect was related to the acq
Slide 9: Q1 2015 revenue performance by Service Line
Q1 2015 revenue performance by First quarter 2015 Service Line April 22, 2015 ▶ Managed Services slightly up Managed Services thanks to the UK 11% ▶ Consulting & Systems 5% Consulting & Systems Integration stable outside Integration Germany 51% Big Data & Cyber-security ▶ Continuous traction of Big
Slide 10: Q1 2015 revenue performance by Business Unit
Q1 2015 revenue performance by First quarter 2015 Business Unit April 22, 2015 ▶ Strong Managed Services growth in the United Kingdom ▶ Stable revenue in France ▶ Good momentum in India, Middle-East & Africa, Asia Pacific, and Iberia ▶ Germany and Benelux & The Nordics impacted by ramp-downs and con
Slide 11: Headcount evolution
First quarter Headcount evolution 2015 April 22, 2015 ▶ 2,160 employees exited the Group workforce following: – Sale of on-sites services activities in France – Early termination of the Work Capability Assessment BPO contract ▶ Attrition at 10.6% at Group level and 19.0% in emerging countries 85,865
Slide 12: Offshore delivery evolution in Systems Integration
Offshore delivery evolution in First quarter 2015 Systems Integration April 22, 2015 ▶ 40% of the Systems Integration direct workforce in offshore countries 50% SI offsore ratio SI offshore 3-year plan 40% 33% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2
Slide 13: Commercial activity
3 First quarter 2015 April 22, 2015 Patrick Adiba, Executive Vice President and Chief Commercial Officer Commercial activity 13
Slide 14: Commercial activity dashboard
First quarter Commercial activity dashboard 2015 April 22, 2015 2,198 91% Order entry (€ million) Book to bill ratio +26% at constant exchange rates (vs. 81% in Q1 2014) 16.6 5.6 Backlog (€ billion) Qualified pipeline (€ billion) (1.7 years of revenue) (6.7 months of revenue) 14
Slide 15: Most relevant wins in Q1 2015
First quarter Most relevant wins in Q1 2015 2015 April 22, 2015 Managed Services Big Data & Cyber-security Managed Services A leading global professional A global sportswear A major national research services company company institute Service desk, Mobility, Enterprise End-user Outsourcing Services
Slide 16: New commercial policy materializing in order entry mix
New commercial policy materializing First quarter 2015 in order entry mix April 22, 2015 ▶ New businesses increased by +65% Renewals Fertilization New contracts 26% 47% 41% 28% 23% 20% 46% 33% 36% Q1 2013 Q1 2014 Q1 2015 16
Slide 17: Update on Xerox ITO acquisition
4 First quarter 2015 April 22, 2015 Michel-Alain Proch, Senior Executive Vice President, coordinating United States Update on Xerox ITO acquisition 17
Slide 18: Day 1 commercial readiness and market dynamics
Day 1 commercial readiness and First quarter 2015 market dynamics April 22, 2015 Complementary business approach A new go-to-market ready day 1 Atos North America Xerox ITO customer centric approach Market 1 Market 2 Market … Market x Client ... Client ... Client ... Client … Client … Client … Clien
Slide 19: Update on Carve out & closing status (1/2)
Update on Carve out & closing status First quarter 2015 (1/2) April 22, 2015 Integration Program on track for H1 2015 expected closing date Key dates Status (as presented at the time of the announcement) December 18, 2014 ▶ Announcement of transaction End- January 2015 ▶ Employee Work’s Council re
Slide 20: Update on Carve out & closing status (2/2)
Update on Carve out & closing status First quarter 2015 (2/2) April 22, 2015 23 work streams covering all aspects of the integration • Integration governance functioning with positive and open relationships at all levels • All work streams are led by Atos and Xerox top management (co- leadership) •
Slide 21: Conclusion
5 First quarter 2015 April 22, 2015 Thierry Breton, Chairman & CEO Conclusion 21
Slide 22: 2014 transformation materializing in a strong Q1
2014 transformation materializing First quarter 2015 in a strong Q1 2015 April 22, 2015 1 ¾ of order entry are new businesses/fertilization 2 Strong momentum in our innovative offerings 3 Promising operations in the US Start of the year well on track to 2015 objectives Atos will hold an Analyst Da
Slide 23: Q&A session
6 First quarter 2015 April 22, 2015 Management team Q&A session 23
Slide 24: From Questions to Answers
First quarter 2015 April 22, 2015 From Questions Answers 24
Slide 25: Thank you
Thank you Atos, the Atos logo, Atos Consulting, Atos Worldgrid, Worldline, BlueKiwi, Bull, Canopy the Open Cloud Company, Yunano, Zero Email, Zero Email Certified and The Zero Email Company are registered trademarks of the Atos group. © 2015 Atos. Confidential information owned by Atos, to be used b