Atos SE · EURONEXT:ATO
Atos — Atos Origin — Q1 2004 Earnings Presentation
30 slides from Atos's earnings presentation, May 14, 2004
Slide 1: Q1 FY 2004
Q1 FY 2004 May 14, 2004
Slide 2: Agenda
Agenda • GROUP ACHIEVEMENTS • Q1 2004 BUSINESS PERFORMANCE • INTEGRATION FOLLOW-UP • COMPLETION ACCOUNTS 2 Turning Client Vision into Results
Slide 3: Highlights of Q1 2004
Highlights of Q1 2004 • Revenue in line with our expectations at €1,305 M • Net debt reduced to €703 M • Very positive integration process • Agreement with Schlumberger on acquisition price 3 Turning Client Vision into Results
Slide 4: Agenda
Agenda • GROUP ACHIEVEMENTS • Q1 2004 BUSINESS PERFORMANCE • INTEGRATION FOLLOW-UP • COMPLETION ACCOUNTS 4 Turning Client Vision into Results
Slide 5: Revenue performance Q1 2004
Revenue performance Q1 2004 Note 1 : Based on Pro forma Combined Q1 2003 including Sema Group estimated figures Note 2 : Based on Atos Origin Q1 2004 unaudited figures 5 Turning Client Vision into Results
Slide 6: Revenue performance Q1 2004
Revenue performance Q1 2004 Note 1 : Based on Pro forma Combined Q1 2003 including Sema Group estimated figures Note 2 : Based on Atos Origin Q1 2004 unaudited figures 6 Turning Client Vision into Results
Slide 7: Revenue performance Q1 2004
Revenue performance Q1 2004 Note 1 : Based on Pro forma Combined Q1 2003 including Sema Group estimated figures Note 2 : Based on Atos Origin Q1 2004 unaudited figures 7 Turning Client Vision into Results
Slide 8: Profile Revenue Q1 2004
Profile Revenue Q1 2004 Business mix Geography Industry Q1 2004 Revenue: €1,305M Note : Based on Atos Origin Q1 2004 unaudited figures 8 Turning Client Vision into Results
Slide 9: Other revenue indicators
Other revenue indicators • Tier 1 30 Key Accounts represents 45% of Group’s revenue • Full backlog end of March 2004 : € 6.5 billion representing 1.2 year • Full pipeline end of March 2004 : € 2.5 billion representing 0.5 year • Book to bill ratio Q1 2004 : 95% but 101% excluding “low margin” BPO wi
Slide 10: Staff evolution
Staff evolution Merger restructuring in progress Dec. 31, 2003 Mar. 31, 2004 (758) (423) 1,178 19,589 Leavers & Restructuring Hiring Change in dismissals perimeter 46,058 Staff turnover at 6.9% 26,473 Indirect staff ratio at 12.6% Revenue per head at 124 K€ Subcontractors at 6.8% of productive staff
Slide 11: Net debt
Net debt • Opening net debt : €720 M, based on : • €266 M Atos Origin stand alone • €454 M Sema acquisition price : €400 M paid in cash + €44 M change in working capital + €10 M transaction fees • Closing net debt end of March 2004 : €703 M Note 1 : Based on Atos Origin Q1 2004 unaudited figures Not
Slide 12: Agenda
Agenda • GROUP ACHIEVEMENTS • Q1 2004 BUSINESS PERFORMANCE • INTEGRATION FOLLOW-UP • COMPLETION ACCOUNTS 12 Turning Client Vision into Results
Slide 13: 2004 Objectives
2004 Objectives • Integrate the businesses • Execute our disposal program • Meet our financial targets 13 Turning Client Vision into Results
Slide 14: Integration on track
Integration on track • Major decisions taken • Priorities agreed • Operating model agreed and in place • Integration programmes launched • Governance structures in place • Milestones under management • Follow up – Go to market – Regions – Business management 14 Turning Client Vision into Results
Slide 15: Agenda
Agenda • GROUP ACHIEVEMENTS • Q1 2004 BUSINESS PERFORMANCE • INTEGRATION FOLLOW-UP • COMPLETION ACCOUNTS 15 Turning Client Vision into Results
Slide 16: Agreement with Schlumberger
Agreement with Schlumberger In connection with the review of the completion accounts • Final adjusting payment of €50 M • Funding half of any increase in pension contributions, over 6 years, for a maximum of €60 M • Confirmation of agreement on services over a maximum of 7 years, up to a contract va
Slide 17: Combined Statements Disclaimer
Combined Statements Disclaimer • Sema Group completion accounts – Finalized on April 29th, 2004 following the agreement with Schlumberger – Prepared in US GAAP – Unaudited by Schlumberger auditors • Opening Balance Sheet – Retroactive consolidation as of January 1st, 2004 – Under IFRS rules and Atos
Slide 18: Sema Group Preliminary Balance Sheet
Sema Group Preliminary Balance Sheet Note : Based on Sema Group unaudited figures 18 Turning Client Vision into Results
Slide 19: Sema Group Preliminary Goodwill
Sema Group Preliminary Goodwill (a) based on weighted average closing share price during the 20 trading days preceding the announcement : 45.95 € (b) based on opening share price as of 1st January 2004 : 51.35 € (c) based on equity as of June 30th, 2003 with exchange rate : 1$=0,8751€ transaction ex
Slide 20: Combined pro forma Preliminary Balance Sheet
Combined pro forma Preliminary Balance Sheet Note 1 : Based on Sema Group unaudited figures Note 2 : Net debt excluding Special Purpose Vehicle 20 Turning Client Vision into Results
Slide 21: Sema Group Income Statement
Sema Group Income Statement Note : Based on Sema Group unaudited figures 21 Turning Client Vision into Results
Slide 22: Sema Group Income Statement
Sema Group Income Statement Note : Based on Sema Group unaudited figures 22 Turning Client Vision into Results
Slide 23: Combined pro forma Income Statement
Combined pro forma Income Statement Note : Based on Sema Group unaudited figures 23 Turning Client Vision into Results
Slide 24: Share Ownership
Share Ownership Note (a) : To the Management Board’s knowledge Note (b) : Based on common stock at the end of March 31st, 2004 24 Turning Client Vision into Results
Slide 25: Agenda
Agenda • STRATEGY 25 Turning Client Vision into Results
Slide 26: Strategy
Strategy • End to end service offerings • Balanced mix of consulting, build and run • Capitalize on industry sector knowledge • Develop a focused consulting practice • Focus on clients • Leverage strong HR management Build on global presence 26 Turning Client Vision into Results
Slide 27: A client-centric company with global operations
A client-centric company with global operations • Clear strategy • Solid business mix • Balanced industry sector mix • Strong client base • Stable and international management team 27 Turning Client Vision into Results
Slide 28: Agenda: Appendices
Agenda • APPENDICES 28 Turning Client Vision into Results
Slide 29: Combined performance 2003
Combined performance 2003 Note : Based on Sema Group unaudited figures 29 Turning Client Vision into Results
Slide 30: Combined performance 2003
Combined performance 2003 Note : Based on Sema Group unaudited figures 30 Turning Client Vision into Results