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Atos — Investor Day (October 2011)
122 slides from Atos's investor day presentation, Oct 6, 2011
Slide 1: Atos Investor Day
Atos Investor Day Thursday 6 October, 2011 - Morning 06 October 2011
Slide 2: Disclaimers
Disclaimers Atos Investor Day 6 October 2011 ▶This presentation 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
Slide 3: Morning agenda
Morning agenda Atos Investor Day 09:00am to 12:45pm 6 October 2011 09:00 Thierry Breton Vision, strategy and priorities in the current environment 09:40 Michel-Alain Proch Financials 10:15 Questions and answers session 10:40 Break 11:00 Charles Dehelly TOP² and Synergies: from transformation to marg
Slide 4: Afternoon agenda
Afternoon agenda Atos Investor Day 01:50pm to 4:30pm 6 October 2011 01:50 Eric Grall Managed Services 02:15 Marc-Henri HTTS & SB Desportes 02:40 Robert Goegele Manufacturing, Retail & Services 03:00 Break 03:20 Francis Meston Global Delivery in SI 03:40 Swen Rehders Large Deal Team 04:00 Q&A session
Slide 5: Video Atos brand
Video Atos Investor Day 6 October 2011 Atos brand 5
Slide 6: Vision, strategy and priorities in the current environment
1 Atos Investor Day 6 October 2011 Thierry Breton, Chairman & CEO VISION, STRATEGY AND PRIORITIES IN THE CURRENT ENVIRONMENT 6
Slide 7: Outline
Outline Atos Investor Day 6 October 2011 I. Our current macroeconomic environment II. Update on SIS integration III. Atos: a defensive asset in a tough economic environment IV. The upside levers of Atos V. Strategy and outlook 7
Slide 8: I. Our current macroeconomic environment
I. Our current macroeconomic environment 06 October 2011
Slide 9: Current macroeconomic environment
Current macroeconomic Atos Investor Day environment 6 October 2011 ▶ 2011e – 2012e GDP growth forecasts 4% 3% 2% 1% 0% (1%) (2%) 2009a (3%) 2010a (4%) 2011e (5%) 2012e (6%) France United Kingdom Germany United States European Union Source: IMF, September 2011 Modest economic growth in 2011-2012e in
Slide 10: Focus on debt crisis
Focus on debt crisis Atos Investor Day 6 October 2011 ▶ CDS evolution show concerns on ▶ …even if 10Y yields favourably sovereign debt… impacted by euroswap rate decrease 600 7% Greece CDS Greece 10Y currently at yield currently 3,536 bps at 23.32% 6% 500 5% 400 4% 300 3% 200 2% 100 1% - - Jan Feb M
Slide 11: Political agenda
Political agenda Atos Investor Day 6 October 2011 General election November 20th, 2011 Presidential election April 22nd, 2012 Presidential election November 6th, 2012 General election Sept. / Oct. 2013 General election April 2013 11
Slide 12: Debt crisis accelerates changes in our environment
Debt crisis accelerates changes Atos Investor Day in our environment 6 October 2011 Technology Social ▶ Digital Enablement of Critical National ▶ Hyper connectivity Infrastructure ▶ Virtual communities ▶ Social Business Computing ▶ Public Trust in Large Organizations ▶ Virtualization & Cloud technol
Slide 13: Atos response
Atos response Atos Investor Day 6 October 2011 Accelerate on Innovation Accelerate on Social innovation ▶ Capitalize on our Wellbeing at Work ▶ Cloud strategy program (GRI A+, GPTW…) ▶ Promote our Global key offerings ▶ Innovation at Work Clients Accelerate our Financial discipline Development in em
Slide 14: Being a leader in the two segments of the IT market
Being a leader in the two segments Atos Investor Day of the IT market 6 October 2011 IT services to support customers’ top line growth for their: CRITICAL IT BUSINESS Competitive positioning Time to Market ▶ Be the world leader Innovation in Critical IT services Atos answers: Industry expert
Slide 15: II. Update on SIS integration
II. Update on SIS integration 06 October 2011
Slide 16: Atos is fully operational
Atos is fully operational Atos Investor Day 6 October 2011 1st July ▶ Approval of SIS merger by 99.99% of our shareholders! ▶ M. Roland Busch (Siemens) elected as new Board member ▶ New name, new brand, new logo 1st July onwards ▶ Announcement of the new organization and N-1 / N-2 / N-3 appointments
Slide 17: A new organization structure reflecting SIS integration
A new organization structure Atos Investor Day reflecting SIS integration 6 October 2011 Group Markets & Sales GBU and SBU functions GBU Germany Public, Health Siemens Manufacturing, Financial Energy & Telecom, Winfried Holz Transport Retail & Finance Account Services Services Utilities Media & Tech
Slide 18: Snapshot on Atos pro forma figures by Service Line
Snapshot on Atos pro forma Atos Investor Day figures by Service Line 6 October 2011 ▶ Combined 2010 revenue by Service Line in EUR million 3,953 Atos stand-alone EUR 5.0 billion SIS stand-alone EUR 3.6 billion 2010 Pro-forma Revenue Breakdown C & TS 8% 2,230 HTTS 2,267 & SB 20% 1,711 MS 991 46% SI 3
Slide 19: Snapshot on Atos pro forma figures by Verticals
Snapshot on Atos pro forma Atos Investor Day figures by Verticals 6 October 2011 ▶ Combined 2010 revenue by Verticals (in EUR million) 2,749 Atos stand-alone EUR 5.0 billion SIS stand-alone EUR 3.6 billion 2,190 1,522 1,715 800 559 1,298 611 627 1,228 1,389 1,156 93 686 534 Manufacturing, Public, He
Slide 20: Snapshot on Atos pro forma 2010 figures by geographies
Snapshot on Atos pro forma 2010 Atos Investor Day figures by geographies 6 October 2011 Germany Emerging countries: EUR 1,843 million EUR 649 million Rank: #2 NAM: France: EUR 476 million EUR 1,472 million Rank: #1 North & South West Europe: Benelux: EUR 473 million EUR 1,399 million Rank: #1 United
Slide 21: Snapshot on Atos headcounts as of 08/2011
Snapshot on Atos headcounts as Atos Investor Day of 08/2011 6 October 2011 Atos # of headcounts Total headcounts: 73,949 Of which 25% outside Europe Benelux 7,162 North & South West Europe UK/Ireland 1,729 4,666 Central & Eastern Europe 9,640 North America 3,906 Germany 10,014 Iberia 5,376 3,103 Asi
Slide 22: Snapshot on Atos headcounts as of 08/2011
Snapshot on Atos headcounts as Atos Investor Day of 08/2011 6 October 2011 Atos # of headcounts Total headcounts: 73,949 Of which 25% outside Europe Benelux 8,306 North & South West Europe UK/Ireland 1,729 Central & Eastern Europe 4,666 9,640 North America 3,906 10,862 Germany Iberia 5,652 3,562 Asi
Slide 23: III. A defensive asset in a tough economic environment
III. A defensive asset in a tough economic environment 06 October 2011
Slide 24: A non-cyclical and outperforming business
A non-cyclical and outperforming Atos Investor Day business 6 October 2011 Atos is ahead of competitors even in a tough macro environment ▶ In absolute terms… ▶ … and relative to the sector 8.1% 7.1% 6.8% 8% 08-10 CAGR of 13.8% 6.7% 7% 6.7% 337 4.8% 2013e 5.7% 5.9% guidance 290 261 1.9% 1.8% 1.7% 1.
Slide 25: Improvement of free cash flow generation
Improvement of free cash flow Atos Investor Day generation 6 October 2011 ▶ Evolution of FCF (in EUR million) 170 143 117 (52) 2008a 2009a 2010a 2011e 25
Slide 26: A strong capital structure and zero net debt ambition
A strong capital structure post SIS Atos Investor Day acquisition and a zero net debt ambition 6 October 2011 ▶ Evolution of Atos net debt (in EUR million and including convertible bonds) 270 139 91 0 31/12/2010 30/06/2011 01/07/2011 31/12/2011 30/06/2012 Net debt : 0.26x 0.17x 0.37x 0.24x . OMDA Ze
Slide 27: An increasing, recurring revenue stream provided by Outsourcing
An increasing, recurring revenue Atos Investor Day stream provided by Outsourcing 6 October 2011 Through the combination with SIS, from 74% of revenue is based on multi-year contracts ▶ Very strong Managed Services footprint New ▶ Recognized infrastructure in service desks, networking Outsourcing an
Slide 28: Pipeline reinforced by SIS acquisition
Pipeline reinforced by SIS Atos Investor Day acquisition 6 October 2011 ▶ Weighted Pipeline in EUR billion 5.1 Deals EUR 100 m + Deals EUR 50-100 m 17% 30% Deals below EUR 50 m +88% 13% 2.7 11% 23% 12% 70% 77% Atos Origin Atos 30th June 2011 3rd October 2011 SIS Acquisition gives Atos access to more
Slide 29: IV. The upside levers of Atos
IV. The upside levers of Atos 06 October 2011
Slide 30: Three axis of development already effective
Three axis of development already Atos Investor Day effective 6 October 2011 ▶ Actions field ▶ Programs implemented 1 Operational “TOP” performance Launched in December 2008 2 People “Well being @ work” performance Launched in December 2009 3 Commercial “Expand” performance Launched in September 201
Slide 31: TOP²
Leveraging on 3 years of Atos Investor Day successful Group transformation 6 October 2011 The 4 key levers of the TOP² program 3. Lean 4. Standard of Development of living lean techniques in Realization of Managed Services 14% cost savings TOP² 2. Cost of premises 1. Streamline G&A Optimizatio
Slide 32: Combination synergies
Combination synergies Atos Investor Day 6 October 2011 Key sources of cost synergies 3. Merger of Headquarters A single HQ to run Atos 1. Procurement and indirect costs Synergies Stronger purchasing power 2. Management rationalization Streamlining management layers Additional EUR 125 m in EBIT
Slide 33: Top-line growth levers of Atos
Top-line growth levers of Atos Atos Investor Day 6 October 2011 The Global Partnership with Siemens is on track with governance agreed and teams in place Commercial Joint Siemens One HTTS partnerships investments Implementation Implementation Implementation Implementation ► Commercial ► Integration
Slide 34: Atos differentiators in the Cloud transformation
Atos differentiators in the Cloud Atos Investor Day transformation 6 October 2011 ▶ Atos positioning in Cloud Computing ▶ Scale – Essential to industrialize and B-2-C achieve economies of scale Public cloud ▶ Google ▶ Client base and client intimacy ▶ Amazon… – Required to be their partner throughou
Slide 35: Atos skills in cloud computing and distinctive offers
Atos skills in cloud computing and Atos Investor Day distinctive offers 6 October 2011 PaaS IaaS SaaS BPaaS PaaS: Platform as a service SaaS: Software as a service IaaS: Infrastructure as a HTTS & SPECIALIZED service BUSINESSES BPaaS: Business process as a service 35
Slide 36: Investment on people involvement
Investment on people involvement Atos Investor Day 6 October 2011 Imagine the new way of working by intensively using new technologies while matching the social expectations of our employees and the “Y generation” Be recognized by 2012 as one of the best companies to work for ▶ Obtained for Atos Ori
Slide 37: Strategy and outlook
IV. Strategy and outlook 06 October 2011
Slide 38: Dynamics of our strategy
Dynamics of our strategy Atos Investor Day 6 October 2011 2009 2010 2011 2012 2013 2014 2015 Operating GROUP Margin Goal Operating achieved TRANSFORMATION + 250 bp, TOP2 Margin (TOP) catching up with 7% to 8% competitors AtoS Objective: ▶ ROLL OUT OF HTTS Leader in ▶ DEVELOPMENT OF IT SPECIALIZED BU
Slide 39: Objectives 2011
Objectives 2011 Atos Investor Day 6 October 2011 The following objectives relate to the year 2011 which include 12 months of Atos and 6 months of SIS acquired in July 2011 2011 ▶ Revenue – Around EUR 6.8 billion ▶ Operating margin – 6.2% of Revenue ▶ Free Cash Flow – Around EUR 170 million 39
Slide 40: Strategy and objectives: Significant value creation potential
Strategy and objectives: Significant Atos Investor Day value creation potential 6 October 2011 2013 * ▶ Revenue – Between EUR 9 billion and EUR 10 billion ▶ Operating margin – Between 7 and 8 per cent ▶ EPS – Growth in excess of 50 per cent versus EPS New Company 2011 ▶ Free Cash Flow – In the range
Slide 41: Atos in brief…
Atos in brief… Atos Investor Day 6 October 2011 ▶ Fully on track on SIS integration ▶ A defensive asset in economic downturn, leveraging on the resilience of the outsourcing business ▶ Major opportunity to compete on large deals ▶ Global Partnership with Siemens ▶ Significant upsides to reach operat
Slide 42: Financials
2 Atos Investor Day 6 October 2011 Michel-Alain Proch, Executive Vice President and Group CFO FINANCIALS 42
Slide 43: New entity pro forma financials
2 Atos Investor Day 6 October 2011 New entity pro forma financials 2011 targets A strong capital structure Key takeaways 43
Slide 44: Pro-forma revenue
Pro-forma revenue Atos Investor Day 6 October 2011 2010 2011 OG % In EUR million H1 H2 FY H1 H1 11 vs. 10 Atos Origin 2 495 2 499 4 994 2 476 -0,7% SIS 1 790 1 795 3 585 1 699 -5,1% Pro-forma Atos 4 285 4 295 8 579 4 175 -2,6% 44
Slide 45: Pro-forma operating margin
Pro-forma operating margin Atos Investor Day 6 October 2011 2010 2011 In EUR million H1 H2 FY H1 Atos Origin 150 185 334 166 as a % of revenue 6,0% 7,4% 6,7% 6,7% SIS (63) (38) (101) (12) as a % of revenue (3,5%) (2,1%) (2,8%) (0,7%) Pro-forma Atos 87 147 233 154 as a % of revenue 2,0% 3,4% 2,7% 3,7
Slide 46: Overview of H1 2011 pro forma revenue
Overview of H1 2011 pro forma Atos Investor Day revenue 6 October 2011 ▶ Revenue by Service line C & TS 7% HTTS & SB Managed 20% Services 46% Systems Integration 27% 46
Slide 47: Overview of H1 2011 pro forma revenue
Overview of H1 2011 pro forma Atos Investor Day revenue 6 October 2011 ▶ Revenue by GBUs Other BUs Iberia 7% Germany 4% N&SWE 19% 5% NAM 6% CEE 6% UK / Ireland 17% Atos Worldline 11% France Benelux 12% 13% 47
Slide 48: Overview of H1 2011 pro forma revenue
Overview of H1 2011 pro forma Atos Investor Day revenue 6 October 2011 ▶ Revenue by Market Energy & Telecoms, Utilities Media & 7% Manufacturing, Technology Retail, 15% Services 32% Financial Services 20% Public, Health & Transportation 26% 48
Slide 49: Pro forma revenue by Service Line
Pro forma revenue by Service Line Atos Investor Day 6 October 2011 H1 2010 H2 2010 FY 2010 H1 2011 Atos Atos Atos Atos In EUR million Origin SIS Total Origin SIS Total Origin SIS Total Origin SIS Total Managed Services 850 1,132 1,983 872 1,098 1,970 1,723 2,230 3,953 855 1,063 1,918 % growth 0.5% (
Slide 50: Pro forma revenue by GBU (1/2)
Pro forma revenue by GBU (1/2) Atos Investor Day 6 October 2011 H1 2010 H2 2010 FY 2010 H1 2011 Atos Atos Atos Atos In EUR million Origin SIS Total Origin SIS Total Origin SIS Total Origin SIS Total Germany 189 690 879 187 678 864 376 1,368 1,744 198 604 802 % growth 4.6% (12.5%) (8.8%) UK + Ireland
Slide 51: Pro forma revenue by GBU (2/2)
Pro forma revenue by GBU (2/2) Atos Investor Day 6 October 2011 H1 2010 H2 2010 FY 2010 H1 2011 Atos Atos Atos Atos In EUR million Origin SIS Total Origin SIS Total Origin SIS Total Origin SIS Total NAM 42 208 249 41 186 227 83 394 476 40 194 235 % growth (3.2%) (6.4%) (5.8%) N&SWE 12 220 232 11 229
Slide 52: Pro forma revenue by Markets
Pro forma revenue by Markets Atos Investor Day 6 October 2011 H1 2010 H2 2010 FY 2010 H1 2011 Atos Atos Atos Atos In EUR million Origin SIS Total Origin SIS Total Origin SIS Total Origin SIS Total Manufacturing, Retail, Services 614 766 1,380 614 756 1,370 1,228 1,522 2,749 625 727 1,351 % growth 1.
Slide 53: Pro-forma operating margin by Service Line
Pro-forma operating margin by Atos Investor Day Service Line 6 October 2011 ▶ Detailed operating margin by Service Line H1 2010 H2 2010 FY 2010 H1 2011 Atos Atos Atos Atos In EUR million Origin SIS Total Origin SIS Total Origin SIS Total Origin SIS Total Managed Services 59 (25) 34 84 5 89 143 (20)
Slide 54: Pro-forma operating margin by GBU (1/2)
Pro-forma operating margin by Atos Investor Day GBU (1/2) 6 October 2011 ▶ Detailed operating margin by GBU H1 2010 H2 2010 FY 2010 H1 2011 Atos Atos Atos Atos In EUR million Origin SIS Total Origin SIS Total Origin SIS Total Origin SIS Total Germany 10 (12) (2) 4 2 6 14 (10) 4 11 15 27 % of revenue
Slide 55: Pro-forma operating margin by GBU (2/2)
Pro-forma operating margin by Atos Investor Day GBU (2/2) 6 October 2011 ▶ Detailed operating margin by GBU H1 2010 H2 2010 FY 2010 H1 2011 Atos Atos Atos Atos In EUR million Origin SIS Total Origin SIS Total Origin SIS Total Origin SIS Total NAM 1 (15) (14) 2 (7) (6) 3 (23) (19) 3 (5) (2) % of reve
Slide 56: New entity pro forma financials
2 Atos Investor Day 6 October 2011 New entity pro forma financials 2011 targets A strong capital structure Key takeaways 56
Slide 57: 2011e Revenue
2011e Revenue Atos Investor Day 6 October 2011 H1 2011 H2 2011e Atos EUR 2.5 bn EUR 2.5 bn 2011 statutory revenue objective: SIS EUR 1.7 bn EUR 1.8 bn EUR 6.8 bn Pro forma 2011e revenue: EUR 8.5 bn 57
Slide 58: 2011e Operating Margin
2011e Operating Margin Atos Investor Day 6 October 2011 H1 2011 H2 2011e 2011 Atos 6.7% 8.4% statutory operating margin SIS (0.7%) 2.7% objective: 6.2% Pro forma 2011e operating margin: 4.9% 58
Slide 59: Cash-flow and net debt targets 2011
Cash-flow and net debt targets 2011 Atos Investor Day 6 October 2011 SIS acquisition Cash at closing Opening net Working Loss-making Funding Creation of Target net debt Dividend Net debt Convertible capital contracts receivable Siemens debt 01/01/11 FCF H1 11 2010 30/06/11 Cash bonds adjust. funding
Slide 60: EPS 2011e
EPS 2011e Atos Investor Day 6 October 2011 Convertible Shares Non diluted Fully diluted 21.10.09 01.07.11 As of 69,914,077 5,414,771 75,328,848 31.12.2010 SIS acquisition 12,483,153 5,382,131 8,932,642 01.07.2011 Total shares 82,397,230 5,414,771 5,382,131 93,194,132 Average total # 76,155,653 5,414
Slide 61: New entity pro forma financials
2 Atos Investor Day 6 October 2011 New entity pro forma financials 2011 targets A strong capital structure Key takeaways 61
Slide 62: Strong level of liquidity sources available for Atos
Strong level of liquidity sources Atos Investor Day available for Atos 6 October 2011 ▶ Refinancing of Atos syndicated loan early 2011 (April) Syndicated loan ▶ EUR 1.2 bn revolving facility refinanced with 12 banks (maturing in 2016) - 25% used so far ▶ EUR 200 m of securitization Securitization ▶
Slide 63: A strong capital structure
A strong capital structure Atos Investor Day 6 October 2011 ▶ Completion of the acquisition while preserving Atos’ capital structure ▶ Pro forma leverage significantly below banking covenant ▶ Atos’ financing and acquisition capacities maintained ▶ Historical net debt / OMDA ratio: Banking covenant
Slide 64: Focus on Atos pensions
Focus on Atos pensions Atos Investor Day 6 October 2011 Atos legacy SIS In EUR million 30/06/2011 31/12/2010 31/12/2009 Expected Total Liabilities (2 495) (2 504) (2 122) (978) Total Assets 2 277 2 201 1 872 956 Unrecognized 5 6 10 10 Net (213) (297) (240) (12) Pensions in P&L 16 (32) 6 Operating ma
Slide 65: New entity pro forma financials
2 Atos Investor Day 6 October 2011 New entity pro forma financials 2011 targets A strong capital structure Key takeaways 65
Slide 66: Key takeaways
Key takeaways Atos Investor Day 6 October 2011 ▶ The new Atos is a defensive asset: ▶ 2013 EPS commitment – 74% of recurring revenue ▶ SIS performance as expected: 4,7 € – (5.1%) OG and (0.7%) OM in H1 At least ▶ Cost synergies are confirmed: + 50% +1,6 € – EUR 225 m mainly from SIS 15% SG&A ▶ Cash
Slide 67: TOP² and synergies: from transformation to margin improvement
3 Atos Investor Day 6 October 2011 Charles Dehelly, Senior Executive Vice President, Global Operations TOP² AND SYNERGIES: FROM TRANSFORMATION MARGIN IMPROVEMENT 67
Slide 68: Reminder of our financial goals
Reminder of our financial goals Atos Investor Day 6 October 2011 AtoS H1 2011 From AO 2010 Atos 2013 Pro forma 100 Revenue 100 100 Gross Margin 18% 16,7% 18-18,5% Top² Ambition to secure SG&A 11.3% 13% 10-11% Atos 2013 Operating 6.7% 3,7% 7-8% Margin 68
Slide 69: SG&A: Close gap with former AO level and extract volume synergies
SG&A: Close gap with former AO Atos Investor Day level and extract volume synergies 6 October 2011 SG&A as a % of revenue 13% 160-170M€ 195-225M€ Restructuring 15-20M€ 11.3% Siemens 10-15M€ Job market - C&B alignment 65-70M€ 10,5% 50-55M€ - Expatriates Efficiency gain through Expenses and 2 Years AV
Slide 70: A sustainable productivity approach on SG&A
A sustainable productivity approach Atos Investor Day on SG&A as opposed to cost cutting 6 October 2011 Capacity free up identified headcount 1750 1575 Wave 3 in Q4: other 1125 GBUs Wave 2 in Q3: CEE, NL, NSWE Wave 1 in Q2: GER, HQ, NAM, UK % of total 40% 63% 100% SG&A analyzed AVA leads to identify
Slide 71: Gross Margin
Gross Margin Atos Investor Day 6 October 2011 TOP² led actions to close the Gross Margin gap between former SIS and Atos Origin businesses EUR 30-40 M FY 18,5% EUR 155 M FY EUR 70-75 M FY Real estate e.g. 9 sqm pp in EUR 30-40 M FY Labor western conditions countries (EUR MS SI Middle 16,7% Alignment
Slide 72: Real estate
Real estate Atos Investor Day 6 October 2011 confident in achieving Atos standards leading to EUR 40-50 million/year savings through sqm/hc ratio reduction ▶ Specific deal signed with Siemens Real Estate in June Siemens (space adjustment without termination costs): 50% Real Estate ▶ 100ksqm progress
Slide 73: TOP² to sustain the competitiveness of Atos
TOP² to sustain the Atos Investor Day competitiveness of Atos 6 October 2011 ▶ Offshore ▶ Price concessions ▶ Workforce management ▶ Salary increases ▶ Purchasing + ▶ Lean Management ▶ Improve Competitiveness ▶ Tooling/automation TOP² develops productivity programs to improve competitiveness and off
Slide 74: TOP² is the extension of the successful TOP program
TOP² is the extension of the successful Atos TOP program covering the new Atos scope Investor Day 6 October 2011 ▶ A program running at Atos since 2009; running at SIS since Jan 2011 ▶ Same structure as during previous TOP (2009-2011) populated with experienced Top leaders and some former SIS Talent
Slide 75: Purchasing
Purchasing Atos Investor Day 6 October 2011 Synergies savings related to volume consolidation : EUR 70 M spread over the 2011/2013 through standardization to increase competitiveness + Recurring EUR 120-150 million per year purchasing savings ▶ Systematic reverse auctions every 4 months HW, SW ▶ Low
Slide 76: Lean Management: Applying proven approach to SIS perimeter
Lean Management: Applying Atos Investor Day proven approach to SIS perimeter 6 October 2011 Staff working under Lean Management, FTE ▶5 lean projects launched +14000 FTE at SIS prior to closing; pilots found 25% efficiency gains ▶Ex-Atos Lean Management infrastructure ported to SIS ▶Freed up people
Slide 77: Tooling Automation
Tooling Automation: Atos Investor Day 6 October 2011 NAM is piloting dynamic dispatch for onsite support before worldwide rollout ▶ Atos NAM has significant presence in Desktop Outsourcing (1600 FTEs; ~$200M annually) Canada ▶ Must continue to innovate to stay ahead of the United States competition
Slide 78: Atos Germany at a glance
Atos Germany at a glance Atos Investor Day 6 October 2011 Close to the customer! Almost 11,000 business technologists from Atos in Germany; main locations with more than 1000 employees: München, Nürnberg, Frankfurt, Essen Biggest Group Business Unit within Atos worldwide: EUR 1.8 billion revenue (pr
Slide 79: Zoom on Germany by Winfried Holz
Zoom on Germany by Winfried Holz Atos Investor Day 6 October 2011 Announcement Closing Today Dec. 14th July 1st Dec. 2011 Dec. 2012 Jan. 10th Mar. 25th May. 10th Jun. 20th Jul. 26th Oct. 31st Jun. 2012 Restructuring 65% 85% 100% Discussions with: All employees Antitrust Ecktpunktepapier: Agreemen
Slide 80: Key takeaways
Key takeaways Atos Investor Day 6 October 2011 ▶ Upper side of anticipated synergies from SIS acquisition confirmed ▶ New opportunities identified to further secure our financial goals ▶ Planned Germany restructuring including HQ already fully secured to deliver expected savings ▶ New AtoS N-2 /N-3
Slide 81: Video Dance Together
Video Atos Investor Day 6 October 2011 Dance Together 81
Slide 82: Atos' new growth engines
4 Atos Investor Day 6 October 2011 Gilles Grapinet, Senior Executive Vice President, Global Functions Atos’ new growth engines 82
Slide 83: Content
Content Atos Investor Day 6 October 2011 I. Our vision of the IT Market II. Atos new growth levers III. Cloud 83
Slide 84: I. Our vision of the IT Market
I. Our vision of the IT Market 06 October 2011
Slide 85: Atos vision of the IT Market
Atos vision of the IT Market Atos Investor Day 6 October 2011 Market segment Customers expectations Atos’ Answers • HTTS Development Business • Core Business innovation • Specialized BU for specific Enabling • Competitive differentiation sub-Markets (Worldline, IT • Top Line Growth and Worldgrid, ME
Slide 86: Additional strengths from SIS acquisition
Additional strengths from SIS Atos Investor Day acquisition 6 October 2011 Market segment • Additional vertical • Additional Business expertise and offerings Geographic Enabling • Scope extension for coverage IT HTTS and Special Businesses • Additional Big deal Services capabilities • Siemens partne
Slide 87: II. Atos new growth levers
II. Atos new growth levers 06 October 2011
Slide 88: From a Sales perspective integration is well advanced
From a Sales perspective Atos Investor Day integration is well advanced 6 October 2011 Integrated portfolio defined √ Integrated Sales materials available on July 1rst √ Former AO and SIS sales force trained to joint Sales best practice methodology √ Integrated large deal team up and running
Slide 89: The new Atos Organization supports our growth strategy
The new Atos Organization Atos Investor Day supports our growth strategy 6 October 2011 EXPAND 89
Slide 90: The new Atos Organization supports our growth strategy
The new Atos Organization Atos Investor Day supports our growth strategy 6 October 2011 Lever 1: Vertical Go-to -Market Lever 2: Lever 3: Siemens Large partnership deals EXPAND Lever 5 : EXPAND Lever 4 Reinforced Service Lines 90
Slide 91: The new Atos Organization supports our growth strategy
The new Atos Organization Atos Investor Day supports our growth strategy 6 October 2011 Lever 1: Vertical Go-to -Market EXPAND 91
Slide 92: Our Market organization is a key driver of growth
1 : Our Market organization is a Atos Investor Day key driver of growth 6 October 2011 Global Service Line Global Market Service Line profitability Accountable for Pipeline, Order Entry and Sales Define and implement delivery models, Accountable for Sales costs processes and tooling Define
Slide 93: Our Market organization is a key driver of growth
1 : Our Market organization is a Atos Investor Day key driver of growth 6 October 2011 Cross-fertilize on Global Market Structure portfolio across Service Lines Global Market Leader EXCOM member SIS Portfolio Strategy & Business Cross-sell across geographies and Service Enhance Development Lines c
Slide 94: Atos Global Portfolio
Atos Global Portfolio Atos Investor Day 6 October 2011 Financial Public, Manufacturing Energy Telecom, Services Health & Retail & & Media & Transport Services Utilities Technology (20%) (26%) (32%) (7%) (15%) • Card processing • eGovernment • Manufacturing • Smart metering • B2B / B2C cloud • Intern
Slide 95: Atos Global Portfolio: up-sell and cross-sell
Atos Global Portfolio Atos Investor Day 6 October 2011 Financial Public, Manufacturing Energy Telecom, Services Health & Retail & & Media & Transport Services Utilities Technology (20%) (26%) (32%) (7%) (15%) • Card processing • eGovernment • Manufacturing • Smart metering • B2B / B2C cloud • Intern
Slide 96: The new Atos Organization supports our growth strategy
The new Atos Organization Atos Investor Day supports our growth strategy 6 October 2011 Lever 2: Large deals EXPAND 96
Slide 97: Strategic Sales Engagement: Atos new large deals organization
2 Strategic Sales Engagement Atos Investor Day Atos new large deals organization 6 October 2011 Strategic Sales Engagement Global Sales Engagement 70 experts in Global SSE to address cross-borders deals on a Global basis: •MS deals over EUR 100 million •SI/HTTS deals over EUR 50 million Local Sales
Slide 98: Strategic Sales Engagement: Atos new large deals organization
2 Strategic Sales Engagement Atos Investor Day Atos new large deals organization 6 October 2011 Strategic Sales Engagement Global Sales Engagement 70 experts in Global SSE to address cross-borders deals on a Global basis: •MS deals over Dedicated EUR 100 million •SI/HTTS dealssession over EUR with 5
Slide 99: The new Atos Organization supports our growth strategy
The new Atos Organization Atos Investor Day supports our growth strategy 6 October 2011 Lever 3: Siemens partnership EXPAND 99
Slide 100: Siemens partnership key achievements up-to-date
3 Siemens partnership key Atos Investor Day achievements up-to-date 6 October 2011 ▶ Set-up of partnership governance √ ▶ Successful set-up of partnership teams both at corporate level and in business units √ ▶ Identification of a significant first pipeline of opportunities √ ▶ Commercial cooperatio
Slide 101: Atos has now joined 12 out of 14 Siemens One Market Development Boards
3 Atos has now joined 12 out of 14 of Atos Siemens One Market Development Boards Investor Day 6 October 2011 101
Slide 102: Siemens Global Partnership Collaboration and Investments Areas
3 Siemens Global Partnership Atos Investor Day Collaboration and Investments Areas 6 October 2011 7 4 5 2 7 3 Number of projects 102
Slide 103: The new Atos Organization supports our growth strategy
The new Atos Organization Atos Investor Day supports our growth strategy 6 October 2011 EXPAND Lever 4 Reinforced Service Lines 103
Slide 104: Service Lines
5 Service Lines Atos Investor Day 6 October 2011 Business HTTS & Specialized Businesses Enabling 20% Dedicated IT session with Marc-Henri Services Desportes at 2:15pm Dedicated System session with Francis Integration Meston at Foundation 27% 3:20pm Dedicated session IT with Eric Grall at Services Ma
Slide 105: Service Lines
5 Service Lines Atos Investor Day 6 October 2011 Business HTTS & Specialized Businesses Enabling 20% IT Services Consulting & System Technology Integration Services 27% Foundation 7% IT Services Managed Services 46% 105
Slide 106: Consulting & Technology Services
Consulting & Technology Services Atos Investor Day 6 October 2011 ▶ More than 6 500 proximity experts, ▶ EUR 600 million revenues BENELUX – 2200 UK – 220 GERMANY – 100 FRANCE – 2200 IBERIA – 1350 LATAM - 670 106
Slide 107: Synergies between Consulting and Technology Services
Synergies between Consulting and Atos Investor Day Technology Services 6 October 2011 ▶ Same business-model: − Success based on people excellence − Work performed on customer site close to the customer − Very little project risks, no SLAs − Very little CAPEX − Highly cyclical will benefit from the e
Slide 108: France success story
France success story Atos Investor Day 6 October 2011 2009 2010 2011 Atos Consulting Atos Consulting (Atos Consulting, Atos System Integration Formation, IT Consulting) -Atos Formation Atos Consulting & -IT Consulting Technology Services -Professional Services Atos Professional Services Managed Serv
Slide 109: C&TS ambition is to reach 10% Operating Margin
C&TS ambition is to reach 10% Atos Investor Day Operating Margin 6 October 2011 2009 2010 2011 Atos Consulting Atos Consulting (Atos Consulting, Atos System Integration Formation, IT Consulting) -Atos Formation Atos Consulting & -IT Consulting C&TS ambition Technology Services -Professional Services
Slide 110: The new Atos Organization supports our growth strategy
The new Atos Organization Atos Investor Day supports our growth strategy 6 October 2011 EXPAND Lever 5 : EXPAND 110
Slide 111: Expand is a Sales Transformation program launched in Sept 2011
5 Expand is a Sales Transformation Atos Investor Day program launched in Sept 2011 6 October 2011 ▶ EXCOM driven program ▶ Operational targets and KPIs – Pipe – Win rate – Order Entry ▶ Strong Alignment with TOP² for execution – Leverages the same country leaders as TOP – Linkage with budget process
Slide 112: Expand addresses what we sell, how we sell and how we support Sales
5 Expand addresses what we sell, Atos Investor Day how we sell and how we support Sales 6 October 2011 Portfolio positioning and product-market strategy Win-rate Proactive sales improvement management Sales performance Sales operations management industrialization Resource rebalancing Pre-sales gove
Slide 113: Building on TOP approach, Expand is orchestrated to deliver results
5 Building on TOP approach, Expand is Atos orchestrated to deliver tangible results to be Investor Day materialized in semestrial budgets 6 October 2011 Budget 2013 Budget 2013 H2 2012 Budget H1 2012 H2 2012 ▶ Atos in Magic Quadrant in all H1 2012 ▶ Lean Sales rolled relevant markets out to 100% of
Slide 114: Building on TOP approach, Expand is orchestrated to deliver results
5 Building on TOP approach, Expand is Atos orchestrated to deliver tangible results to be Investor Day materialized in semestrial budgets 6 October 2011 Budget 2013 Budget 2013 H2 2012 Budget H1 2012 H2 2012 ▶ Atos in Magic Quadrant in all H1 2012 ▶ Lean Sales rolled relevant markets out to 100% of
Slide 115: Atos vision of the IT Market
Atos vision of the IT Market Atos Investor Day 6 October 2011 Market segment Customers expectations Atos’ Answers • HTTS Development Business • Core Business innovation • Dedicated specialized BU Enabling • Competitive for specific sub-Markets (Worldline, Worldgrid, IT differentiation MEV, …) Servic
Slide 116: III. Cloud
III. Cloud 06 October 2011 Your business technologists. Powering progress Ato S
Slide 117: Cloud in the IT services market
Cloud in the IT services market Atos Investor Day 6 October 2011 Another transformation for IT, That will generate additional demand for services Custom Packaged Public cloud development software IT Internaly Private Outsourcing managed cloud Hybrid cloud Total market growth 2000-2012 ▶ IT services
Slide 118: Private Cloud is our priority target
Private Cloud is our priority target Atos Investor Day 6 October 2011 Cloud Market in B€ 2011 2015 CAGR The share of the Atos Public Cloud 34.7 74.8 21% addressable market Private Cloud 11.5 50.5 45% transferring to Public Total 46.2 125.3 28% cloud will remain very In % of IT Services 5% 12% limite
Slide 119: Atos is Cloud ready
Atos Atos is Cloud ready Investor Day 6 October 2011 Outsourcing Cloud ▶ Managed Services ▶ Private cloud – Datacenter operation – Datacenter operation – Physical, people and servers – Physical, people, servers and mutualisation software mutualisation – Virtualization and automation – Monthly billin
Slide 120: Emergence of Cloud is an opportunity for Atos
Emergence of Cloud is an Atos Investor Day opportunity for Atos 6 October 2011 SCALE CLIENT BASE AND CLIENT is essential to industrialize and INTIMACY achieve economies of scale are required to be their partner through out the transformation ATOS DIFFERENTIATORS IN THE CLOUD TRANSFORMATION ABILITY T
Slide 121: Key takeaways
Key takeaways Atos Investor Day 6 October 2011 ▶ Atos has implemented an organization which fully supports its new Growth levers ▶ Atos has launched an new major initiative – EXPAND - to improve Sales force effectiveness and leverage Atos new leadership on the market ▶ From a Sales perspective integ
Slide 122: Thank you
Thank you Atos, the Atos logo, Atos Consulting, Atos Worldline, Atos Sphere, Atos Cloud and Atos WorldGrid are registered trademarks of Atos SA. June 2011 © 2011 Atos. Confidential information owned by Atos, to be used by the recipient only. This document, or any part of it, may not be reproduced, c