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Atos — Atos Origin — Q1 2007 Earnings Presentation
30 slides from Atos's earnings presentation, May 14, 2007
Slide 1: Atos Origin Q1 2007 Revenues
Atos Origin Q1 2007 Revenues Conclusion of Group review of strategic options Paris, 14 May 2007 Atos, Atos and fish symbol, Atos Origin and fish symbol, Atos Consulting, and the fish symbol itself are registered trademarks of Atos Origin SA. June 07 © 2006 Atos Origin. Private for the client. This r
Slide 2: Disclaimers
Disclaimers » This presentation contains further forward-looking statements that involve risks and uncertainties concerning the Group’s expected growth and profitability for 2007. Actual events or results may differ from those described in this presentation due to a number of risks and uncertainties
Slide 3: Agenda
Agenda » CONCLUSION OF REVIEW OF STRATEGIC OPTIONS » Q1 2007 HIGHLIGHTS » Q1 2007 FINANCIAL PERFORMANCE » STATUS ON TRANSFORMATION PLAN » 2007 OUTLOOK 2
Slide 4: Conclusion of review of strategic options
Conclusion of review of strategic options » Strategic review announced 26 March 2007 following expressions of interest » Indepth but short review process without disruption to operations » No binding offers at end of process, few private equities familiar with IT sector therefore reference price dif
Slide 5: Agenda
Agenda » CONCLUSION OF REVIEW OF STRATEGIC OPTIONS » Q1 2007 HIGHLIGHTS » Q1 2007 FINANCIAL PERFORMANCE » STATUS ON TRANSFORMATION PLAN » 2007 OUTLOOK 4
Slide 6: Q1 2007 Financial highlights
Q1 2007 Financial highlights » Revenue at EUR 1,435 M with top line growth at +6.9% and organic growth at +2.5% » Underlying net debt of EUR 411 M compared to EUR 360 M as of 31 December 2006 » Transformation Plan well on track » UK action plan in progress » Italy restructuring in progress with some
Slide 7: Agenda
Agenda » CONCLUSION OF REVIEW OF STRATEGIC OPTIONS » Q1 2007 HIGHLIGHTS » Q1 2007 FINANCIAL PERFORMANCE » STATUS ON TRANSFORMATION PLAN » 2007 OUTLOOK 6
Slide 8: Q1 2007 – Revenue organic growth
Q1 2007 – Revenue organic growth In € Millions Q1 2007 Q1 2006 % Change Revenue reported for Q1 2006 1,435 1,342 +6.9% Acquisition (65) Disposals (5) Exchange Rate impact (1) Organic growth 1,370 1,336 +2.5% 7
Slide 9: Performance by geographical area
Performance by geographical area In € Millions Revenue % Current % Organic Q1 2007 Q1 2006 growth growth* France 398 405 -1.7% -1.1% United Kingdom 273 270 +1.2% -1.3% The Netherlands 273 259 +5.6% +5.6% Germany + Central Europe 143 143 +0.2% +1.7% Rest of EMEA 257 186 +38.4% +4.4% Americas 55 47 +1
Slide 10: Revenue mix by geography
Revenue mix by geography Q1-07 Americas 4% Asia Pacific 3% France 29% Rest of EMEA 14% Germany + Central Europe 10% At constant scope The Netherlands United Kingdom and exchange rates 20% 20% Q1-06 Americas 3% Asia Pacific 2% France 30% Rest of EMEA 14% Germany + Central Europe 11% The Netherlands 1
Slide 11: UK 1/2
UK 1/2 » Consulting Staff / profile mix underway and 50 staff restructured New organisation in place facing off Public, Private and Finance sectors Utilisation rates from 51% in December 2006 to 63% in March 2007 : +6 points coming from restructuring +6 points coming from more volume Book to
Slide 12: UK 2/2
UK 2/2 » Managed Operations Transition of all contracts underway (DCA, NFUM, NHS Scotland, Gateway portal) Off-shoring to Malaysia and India in process » Medical Services NHS Diagnostics contract : ¾ Early service contract in Q1 2007 ¾ Decision to postpone the start of the prime contract in ag
Slide 13: Italy
Italy Revenue decreased by 9.8% in Q1-07 vs Q1-06 Telecom sector growing Regione Sicilia build contract continues to develop Market environment still deteriorated and continued price pressure resulting in significant decrease of the ADR compared to Q1 2006 Management efforts resulted in th
Slide 14: Performance by service line
Performance by service line In € Millions Revenue % Current % Organic Q1 2007 Q1 2006 growth growth* Consulting 95 103 -8.0% -6.3% Systems Integration 584 570 +2.5% +3.1% Managed Operations 756 669 +13.0% +3.4% Total Group 1,435 1,342 +6.9% +2.5% (*) Revenue organic growth : at constant scope and ex
Slide 15: Revenue mix by service line
Revenue mix by service line Q1-07 Consulting 7% Managed Systems Operations 50% Integration 43% of wich Application At constant scope Management 14% Q1-06 and exchange rates Consulting 8% Managed Operations 50% Systems Integration 42% of wich Application Management 16% 14
Slide 16: Revenue mix by sector
Revenue mix by sector Q1-07 Process Transport 6% Public Sector & Industries 7% Utilities 27% CPG & Retail 11% Manufacturing 11% Telecom & Media Finance 21% 16% At constant scope Q1-06 Process Transport 6% Public Sector & and exchange rates Industries 8% Utilities 27% CPG & Retail 9% Manufacturing 12
Slide 17: Backlog coverage
Backlog coverage Q1-07 Revenue & To find Backlog 15.1% 71.4% Pipeline 13.5% On the basis of +8.5% top line growth in 2007 Q1-06 Revenue & To find 15.3% Backlog 70.1% Pipeline 14.6% 16
Slide 18: Staff Evolution
Staff Evolution Opening staff as of 31 December 2006 49,841 Hiring +2,702 Disposals (166) Leavers (2,090) Lay-offs (187) Closing staff as of 31 March 2007 50,100 17
Slide 19: Staff by geography
Staff by geography Closing Closing % total Change since 31/12/06 31/03/07 opening France 14,887 14,974 30% +87 +0.6% United Kingdom 6,322 6,305 13% (17) -0.3% The Netherlands 8,248 8,503 17% +255 +3.1% Germany + Central Europe 3,882 3,724 7% (158) -4.1% Rest of EMEA 10,443 10,648 21% +205 +2.0% Amer
Slide 20: Staff by service line
Staff by service line Closing Closing % total Change since 31/12/06 31/03/07 opening Consulting 2,698 2,631 5% (67) -2.5% Systems Integration 24,836 24,376 49% (460) -1.9% Managed Operations 22,132 22,904 46% +772 +3.5% Corporate 181 189 0% +8 +4.4% Total Group 49,847 50,100 100% +253 +0.5% 19
Slide 21: Agenda
Agenda » CONCLUSION OF REVIEW OF STRATEGIC OPTIONS » Q1 2007 HIGHLIGHTS » Q1 2007 FINANCIAL PERFORMANCE » STATUS ON TRANSFORMATION PLAN » 2007 OUTLOOK 20
Slide 22: Transformation plan objectives and initiatives
3 objectives over 3 years 7 Initiatives Clients/ 1 Accelerate organic growth » Sales Offer capabilities » Industrialization Global » Offshoring 2 Improve operational efficiency Delivery » MS Global Delivery 3 Operate as a Global Company Talents » Talents » Finance, HR and IT Support Functions » Purc
Slide 23: Industrialisation: Q1 progress and Q2 milestones
303 Highlights in Q1 and Outlook for Q2 Q1-07 progress Q2-07 milestones »Sales University launched: » Review of all existing sales » Location found, official opening in resources Sales May » Recruitment strategy for sales functions Sales » Negotiations with partners underway » Re-allocation of part
Slide 24: Offshoring: Q1 progress and Q2 milestones
303 Highlights in Q1 and Outlook for Q2 Q1-07 progress Q2-07 milestones » New offshoring governance in » Launch of an aggressive India (Change to a “cost center” recruitment plan in India Offshoring model) has greatly increased » Opening of a service delivery demand for work to be done platform in M
Slide 25: Finance, HR and IT: Q1 progress and Q2 milestones
303 Highlights in Q1 and Outlook for Q2 Q1-07 progress Q2-07 milestones » Launch of Global Talent » Implementation of a new global Management initiative and recruitment strategy appointment of a Talent Manager » Launch of Relay - our Talents » Implemented a single global international mobility progr
Slide 26: Purchasing: Q1 progress and Q2 milestones
303 Highlights in Q1 and Outlook for Q2 Q1-07 progress Q2-07 milestones » AT Kearney hired to pilot » Implementation of a strong, achievement of quick-wins on centralized purchasing Purchasing five priority categories organisation » Implementation of pilots on: » Implementation of a homogenous » Sub
Slide 27: Agenda
Agenda » CONCLUSION OF REVIEW OF STRATEGIC OPTIONS » Q1 2007 HIGHLIGHTS » Q1 2007 FINANCIAL PERFORMANCE » STATUS ON TRANSFORMATION PLAN » 2007 OUTLOOK 26
Slide 28: 2007 Outlook
2007 OUTLOOK » Generate +8.5% of top line growth » Recovery of operating margin in the UK and in Italy » Strengthened management team and organization » Focused execution of the Transformation Plan » Development of Atos Worldline, Atos Euronext Market Solutions and Medical BPO » Improvement of opera
Slide 29: Questions
Questions Paris, 14 May 2007 Atos, Atos and fish symbol, Atos Origin and fish symbol, Atos Consulting, and the fish symbol itself are registered trademarks of Atos Origin SA. June 07 © 2006 Atos Origin. Private for the client. This report or any part of it, may not be copied, circulated, quoted with
Slide 30: Atos Origin Q1 2007 Revenues
Atos Origin Q1 2007 Revenues Conclusion of Group review of strategic options Paris, 14 May 2007 Atos, Atos and fish symbol, Atos Origin and fish symbol, Atos Consulting, and the fish symbol itself are registered trademarks of Atos Origin SA. June 07 © 2006 Atos Origin. Private for the client. This r