Slide 1: H1 2017 results
H1 2017 results Bezons July 26, 2017
Slide 2: 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
Slide 3: Agenda
Agenda 1.H1 2017 highlights 2.Financial performance 3.Commercial activity 4.Operational achievements 5.Conclusion and Q&A 3 | Atos – H1 2017 results
Slide 4: H1 2017 highlights
H1 2017 highlights Thierry Breton Chairman & CEO
Slide 5: Atos' technology leap…
Atos’ technology leap… Atos’ Leadership Blue chips Tech Days reinforcement in partners to sell in Brussels Cybersecurity bullions & Big Data Launch of the world-first prescriptive SOC Launch of the most powerful quantum simulator in the world 5 | Atos – H1 2017 results
Slide 6: …and a strong execution of our strategy…
…and a strong execution of our strategy… Sustainable Implementation revenue Full speed of integration Business & Organic growth of Platform confirmed Solutions between industrialization +2% and S&P plan +3% 6 | Atos – H1 2017 results
Slide 7: …supports the Atos profitable growth
…supports the Atos profitable growth Commercial Macro M&A momentum environment Positive Strong Key commercial momentum in pipeline wins in H1 2017 Europe focused on and strong Still supportive all our pipeline economy in the strategic US priorities 7 | Atos – H1 2017 results
Slide 8: H1 2017 key figures (1/2)
H1 2017 key figures (1/2) Revenue Organic growth Order entry €6,311m +2.2% €6.9bn +12% at constant exchange rates +2.4% in Q2 +9% year-on-year Book to bill Operating margin Operating margin rate 109% €538m 8.5% 120% in Q2 +21% year-on-year +190bps at constant scope and exchange rates 8 | Atos – H1 2
Slide 9: H1 2017 key figures (2/2)
H1 2017 key figures (2/2) Net income Group share Basic Earnings Per Share Total number of employees €211m €2.01 98,480 +25% year-on-year* +22% year-on-year* -1.5% over H1 2017 Free cash flow OM conversion to FCF Net cash position €242m 45% €342m +35% year-on-year vs. 40.5% in H1 2016 Strong capabili
Slide 10: A world constantly more exposed to cybercrime
A world constantly more exposed to cybercrime Digital world with massive Explosion of Cybercrime interconnection & data flows • Ransomware: $1bn in 2016, +300% vs. 2015 • 3.7 billion Internet users today, multiplied by 92 vs. 2005 • 4,000 ransomware per day • 200 million connected wearables in 2019
Slide 11: Atos end-to-end cybersecurity offering
Atos end-to-end cybersecurity offering Security risk Atos prescriptive assessment operations center Penetration testing A holistic Regulation Security Situational Cyber emergency governance approach awareness response teams compliance Crisis management Protect Analyze Managed security CyberInsurance
Slide 12: Atos global cybersecurity capabilities
Atos global cybersecurity capabilities Outstanding operational capabilities • More than 4,500 experts • 14 Security Operation Centers spread over 5 continents • 3 million secure entry points • 100 million security IT events managed per hour Leveraging an advanced scientific and technologic community
Slide 13: Entanglement of quantum & cybersecurity in Atos technologic roadmap
Entanglement of quantum & cybersecurity in Atos technologic roadmap Cybersecurity Big Data Predictive Prescriptive Quantum Machine Quantum Bull security security Homomorphic intelligence Learning Sequana Encryption Machine Foreseeing the Eradicating Creating future Fostering deep Empowering the Pion
Slide 14: Financial performance
Financial performance Elie Girard Group CFO
Slide 15: Constant scope and exchange rates figures reconciliation
Constant scope and exchange rates figures reconciliation In € million H1 2017 H1 2016 change Statutory revenue 6,311 5,697 +10.8% Exchange rates effect -44 Revenue at constant exchange rates 6,311 5,653 +11.6% Scope effect 518 Exchange rates effect on acquired/disposed perimeters 5 Revenue at consta
Slide 16: An accelerating trend of revenue organic growth
An accelerating trend of revenue organic growth driven by the Group commercial dynamism Statutory revenue (€m) Organic evolution % 3,244 3,200 3,200 3,111 0.4% 3,036 2,940 2,757 2,777 2,666 2,708 0.3% 2,700 2,514 2,427 +2.4% 0.2% +2.0% +1.9% 2,200 +1.8% +1.8% +1.6% 0.1% 1,700 +0.4% +0.3% +0.5% 0.0%
Slide 17: H1 2017 performance by Division
H1 2017 performance by Division ▶ Positive growth and operating margin 12% Infrastructure & Data Management improvement in all Divisions 6% Business & Platform Solutions ▶ Acceleration in Business & Platform Solutions 57% Big Data & Cybersecurity ▶ Synergies with Unify and Equens 25% contributing to
Slide 18: Infrastructure & Data Management
Infrastructure & Data Management ▶ Continued strong growth in Orchestrated North America Hybrid Cloud infrastructures 14% Germany 31% ▶ Leadership in Digital Workplace services 6% further reinforced United-Kingdom & Ireland 9% ▶ Automation and Unify integration Benelux & The Nordics strongly contrib
Slide 19: Business & Platform Solutions
Business & Platform Solutions ▶ Shift to high value digital transformation France projects 27% ▶ Industrialization program of application 32% Germany services underway Benelux & The Nordics ▶ Improved workforce management materializing in the utilization rate increase 10% 18% United-Kingdom & Irelan
Slide 20: Big Data & Cybersecurity
Big Data & Cybersecurity ▶ Strong momentum for cybersecurity ▶ Success of Security Operating Center 23% France offering Germany ▶ Bullion sales boosted by new partnerships 49% North America 8% agreements United-Kingdom & Ireland 9% 11% Other countries Organic H1 2017 H1 2016* In € million evolution
Slide 21: Worldline
Worldline ▶ Financial Processing strong growth led by volume increase and fraud prevention 7% France 13% 25% ▶ Merchant Services benefiting from higher Belgium acquiring volumes and a strong Germany momentum in India 13% The Netherlands ▶ Fast delivery of equensWorldline costs 23% United-Kingdom syn
Slide 22: H1 2017 performance by Business Unit
H1 2017 performance by Business Unit ▶ Revenue growth and operating margin improvement in almost all Business Units ▶ United-Kingdom and North America showing the strongest commercial dynamism Revenue Operating margin Operating m argin % Organic H1 2017 H1 2016* H1 2017 H1 2016* H1 2017 H1 2016* In
Slide 23: H1 2017 headcount evolution
H1 2017 headcount evolution ▶ Adaptation of hiring to automation +6,959 -8,712 ▶ Focus of hiring on +137 Atos Digital 100,096 Transformation 98,480 Factory skills ▶ Stable attrition rate ▶ Continued increase Headcount as Scope Hiring Leavers, Headcount as of 31/12/16 restructuring of 30/06/17 in tra
Slide 24: Income statement
Income statement In € million H1 2017 H1 2016 % yoy Revenue 6,311 5,697 +10.8% Operating margin 538 444 +21.2% Staff reorganization, rationalization, and integration -82 -97 Equity based compensation -45 -22 Purchase Price Allocation amortization -62 -45 Others (including €51m Visa share in H1 2016)
Slide 25: Cash flow statement
Cash flow statement In € million H1 2017 H1 2016 Operating Margin before Depreciation and Amortization 712 586 Capital Expenditures -235 -202 Change in working capital requirement -37 -24 Cash from operations 439 361 Reorganization, rationalization & integration costs -101 -96 Taxes paid -64 -74 Net
Slide 26: Cash conversion
Cash conversion 800 65,0% Free cash flow H1 60,0% 700 Free cash flow FY 55% 52.5% to 58% Cash conversion H1 55,0% 600 Cash conversion FY 579 50,0% 500 43% 45% 45,0% 400 40% 41% 393 40,0% 300 293 35,0% 200 242 29% 30,0% 181 100 23% 25,0% 104 67 0 20,0% 2014 2015 2016 2017 26 | Atos – H1 2017 results
Slide 27: Net cash evolution
Net cash evolution +31 -12 -168 481 -51 +242 -8 -101 -72 342 329 Net cash Worldline's Unify S&P Restated Free Acquisitions Capital Dividend Share FX rate Net cash 31/12/16 intermediation consolidation net cash cash increase paid buy-back fluctuation 30/06/17 activitities 31/12/2016 flow effect resta
Slide 28: Balance sheet – main items
Balance sheet – main items 31 December 2016 30 June 2017 restated Shareholders’ equity € 4,861 m € 4,835 m Net cash € 342 m € 329 m Goodwill € 4,193 m € 4,185 m Net pensions deficit € 1,335 m € 1,388 m Total Assets at the end of June 2017 reached € 13.1 billion 28 | Atos – H1 2017 results
Slide 29: Commercial activity
Commercial activity Patrick Adiba Chief Commercial Officer
Slide 30: H1 2017 commercial activity dashboard
H1 2017 commercial activity dashboard Order entry Book to bill ratio €6,869m 109% +9% year-on-year 120% in Q2 2017 Backlog Qualified pipeline €22.2bn €7.0bn 1.8 years of revenue 6.7 months of revenue 30 | Atos – H1 2017 results
Slide 31: Atos Digital Transformation Factory: Recognized Strong Leadership
Atos Digital Transformation Factory: Recognized Strong Leadership Leader Application Transformation Digital Services Leader Digital Transformation Services Transformation Major Player Digital Services Atos Canopy Atos Business Atos Atos Digital Orchestrated Accelerators Codex Workplace Hybrid
Slide 32: Main wins in Q2 2017 leveraging the Atos Digital Transformation Factory
Main wins in Q2 2017 leveraging the Atos Digital Transformation Factory Cloud BBC European industrial equipment manufacturer SAP HANA Workplace Testing and Codex certification company Cyber Security Digital payments Cybersecurity Digital payments 32 | Atos – H1 2017 results
Slide 33: Two emblematic wins in Q2 2017
Two emblematic wins in Q2 2017 European industrial Testing and equipment manufacturer certification company ▶ Global Private Cloud Datalake with ▶ Large Cloud-based Infrastructure & Data Regional Hubs Management contract won thanks to a ▶ Data acquisition through connectivity to key competitive adva
Slide 34: Unify – Sales actions update
Unify – Sales actions update Growth Levers Actions • Unify offering integrated in the Account Plans “Whitespace” • First wins and active pipeline • 517 k users in many accounts from Large enterprises to SMB Circuit • Continue to leverage the successful Siemens migration to Circuit • First wins and p
Slide 35: Operational achievements
Operational achievements Eric Grall Head of Global Operations
Slide 36: Atos Canopy Orchestrated Hybrid Cloud H1 2017 update
Atos Canopy Orchestrated Hybrid Cloud H1 2017 update Atos Hybrid Cloud Growth New Portfolio Development H1 2017 Private Azure Cloud >30% SAP+HANA on Cloud by Atos (on Bullions) Customer case study Atos added value Cloudification Factory & Transformation Services Optimized public cloud via Atos Servi
Slide 37: Atos Infrastructure & Data Management: Automation deployment on-track
Atos Infrastructure & Data Management : Automation deployment on-track H1 Automation Major Automation programs account coverage vs H1 2017 plan IPSoft Arago 121 vs 65 target Atos Cloud Automation Portal For customers under Account with highest Automation program, current Automation achieved to date
Slide 38: Atos Business & Platform Solutions: RISE Program on track
Atos Business & Platform Solutions RISE Program on track versus 2017 objectives Operating margin Staff to be redeployed Improvement in FY 2017 Global Resource 120 bps 1,000+ Management shifted to India in H1 2017 Atos Intelligent Automation factory Automation Platform Strategic Acceleration set-up i
Slide 39: Conclusion and Q&A
Conclusion and Q&A Thierry Breton Chairman & CEO
Slide 40: 2017 objectives confirmed
2017 objectives confirmed The Group confirms all its objectives for 2017 stated in the April 24, 2017 release: ▶ Revenue growth: circa +9.5% at constant exchange rates, above +2% organically ▶ Operating margin: circa 10% of revenue ▶ Free cash flow: operating margin conversion rate to free cash flow
Slide 41: Q&A
Slide 42: Thanks
Thanks Atos, the Atos logo, Atos Codex, Atos Consulting, Atos Worldgrid, Worldline, BlueKiwi, Bull, Canopy the Open Cloud Company, Unify, Yunano, Zero Email, Zero Email Certified and The Zero Email Company are registered trademarks of the Atos group. April 2016. © 2016 Atos. Confidential information