Slide 1: H1 2023 Results
H1 2023 Results Bezons, July 28, 2023 © Atos
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 r
Slide 3: Today's presenters
Today’s presenters Group CFO Nourdine Bihmane Diane Galbe Philippe Oliva Nathalie Sénéchault Group CEO Group SEVP in charge of Co-CEO, in charge of the Group Co-CEO, in charge of strategic projects and Eviden perimeter Chief Financial Officer Tech Foundations support functions 3 | 28-07-2023 | © Ato
Slide 4: Agenda
Agenda 1. H1 2023 Highlights 2. Progress in Strategic Transformation Project 3. H1 2023 Financial Results 4. Outlook 5. Q&A 4 | 28-07-2023 | © Atos
Slide 5: 01. H1 2023 Highlights
01. H1 2023 Highlights Nourdine Bihmane & Philippe Oliva
Slide 6: H1 2023 highlights
H1 2023 highlights Atos shows continued operational improvement with robust H1 results Solid commercial traction in Q2 results in 112% book-to-bill Robust organic revenue growth at +2.3% and strong increase in operating margin to 3.8%, tripling compared to H1 2022 Full-year revenue growth outlook up
Slide 7: Tech Foundations' Analyst Day takeaways
Tech Foundations’ Analyst Day takeaways Clear path to value creation Redefined portfolio Pivoting to industry Comprehensive >40% higher Total Addressable leading offerings transformation plan Market with 3-5% 2022-2026 CAGR driving 0-2% p.a. core revenue €1.2bn gross run-rate benefits by growth in n
Slide 8: Tech Foundations: embedding Gen-AI to enhance all aspects of our business
Tech Foundations: embedding Gen-AI to enhance all aspects of our business Hybrid cloud & Digital workplace delivery infrastructure delivery Personalized experiences Automated incident triage, ticket Knowledge Management routing and problem resolution Co-pilot offering readiness Coding assistance New
Slide 9: Tech Foundations: book-to-bill soars to 106% in Q2
Tech Foundations: book-to-bill soars to 106% in Q2 Reaping the benefits of refocused go-to-market strategy 106% 94% 83% 68% 67% ✓ Successful fertilization of top 100 accounts 54% 59% 57% 54% 58% ✓ Strong revenue retention 2021 ✓ Improved traction in the US 2022 2023 Q1 Q2 Q3 Q4 Q2 main wins US leadi
Slide 10: Tech Foundations: continued strong execution delivers robust H1 performance
Tech Foundations: continued strong execution delivers robust H1 performance Portfolio rationalization driving managed revenue decrease €2,923 m H1 2023 revenue Core ✓ Stabilization of core business revenue business only +0.1% -0.1% -0.1% Total TF -0.6% ✓ Deliberate reduction in non-strategic activit
Slide 11: Eviden: expanding the possibilities of data and technology
Eviden: expanding the possibilities of data and technology Unique sovereign capabilities and complementarities across service lines Deep industry expertise enhanced by efficient delivery model and strong IP portfolio Opening of 3 new Cloud Launch of AIsaac New Campus and leading ‘Post-quantum ready’
Slide 12: Eviden: Building Gen-AI offerings from applications to orchestration
Eviden: Building Gen-AI offerings from applications to orchestration, model factory and infrastructure Helping our customers leverage the potential of Generative AI: Gen-AI Business Value driven services and solutions Local Public Industry Code Protection Low latency, from Cloud services Pre-Package
Slide 13: Eviden: 119% book-to-bill in Q2
Eviden: 119% book-to-bill in Q2, well-balanced between Digital and Big Data & Cybersecurity ✓ Continuous focus on smaller, low-risk contract 119% ✓ 48% short-term bookings with faster revenue yield Q2 book-to-bill ✓ Main wins showcasing differentiating factors that set Eviden apart ✓ Highly synergis
Slide 14: Eviden: strong momentum in H1
Eviden: strong momentum in H1 Continued strong organic revenue growth €2,625 m H1 2023 revenue +9.5% ✓ H1: strong growth in Digital Security and +7.0% Advanced Computing +4.6% ✓ Digital’s growth significantly improved vs. H1 2022 +7.0% Q1 2022 Q2 2023 H1 2023 ✓ Q2: Fewer net working days comparison
Slide 15: 02. Progress in Strategic Transformation project
02. Progress in Strategic Transformation project Diane Galbe
Slide 16: Internal operational carve-out completed within 12-month timeframe
Internal operational carve-out completed within 12-month timeframe July 2023: local carve-outs successfully Tech Foundations and Eviden executed in all geographies* … are now fully operational as separate entities within the Atos Group Covering 99.7% of Group Tech Foundations Eviden revenue Distinct
Slide 17: Non-core businesses divestment program fully secured
Non-core businesses divestment program fully secured Streamlining portfolio and contributing to financing our transformation Transaction Signed Status €700m Worldline stake June 2022 Closed EGSE Sept. 2022 Closed proceeds secured Sislog Oct. 2022 Closed within 12 months Atos Italia Nov. 2022 Closed
Slide 18: 15% attrition in Q2
Headcount evolution +8,431 110,797 107,013 (1,647) (8,164) (2,404) Restructuring: -1,356 Dismissals & transfers: -1,048 Headcount as of Scope Hiring Leavers Restructuring, Headcount as of 31/12/22 dismissals & transfers 30/06/23 61 Great Place to Work certification achieved in 44 15% attrition in Q2
Slide 19: 03. H1 2023 Financial Results
03. H1 2023 Financial Results Nathalie Sénéchault
Slide 20: H1 2023 Financial overview
H1 2023 Financial overview €M H1 2023 H1 2022 Variation Revenue 5,548 5,563 -0.3% Operating Margin 212 59 +259% In % of revenue 3.8% 1.1% +270 bps OMDA 487 369 +32.0% In % of revenue 8.8% 6.6% +220 bps Normalized Net income -113 -119 Net income -600 -503 Free Cash Flow -969 -555 Net debt 2,321 1,792
Slide 21: H1 2023 revenue bridge
H1 2023 revenue bridge Robust organic growth +0.5% at constant currency In €M: 5,563 +2.3% -1.7% -0.8% 5,548 Q1: +2.8% Q2: +1.6% H1 2022 Revenue Organic Scope Foreign Exchange H1 2023 Revenue 21 | 28-07-2023 | © Atos
Slide 22: H1 2023 operating margin
H1 2023 operating margin Tripling compared to H1 2022 Improvement driven by both perimeters: x3.5 3.8% Tech Foundations Eviden ✓ Steady delivery on margin ✓ Cost-take-out actions expansion plan with 32% of targeted €1,2bn gross ✓ Portfolio rationalization 1.1% benefits achieved (€230m gross incremen
Slide 23: Operating margin to Net income
Operating margin to Net income €M H1 2023 H1 2022 Operating margin 212 59 Transformation costs including: • Accrual of new plan in Germany; Reorganization, Rationalization, Integration costs -464 -124 • Costs associated with internal carve out finalized in July 2023 Amortization of intangible assets
Slide 24: Cash Flow Statement
Cash Flow Statement €M H1 2023 H1 2022 Operating Margin 212 59 + Depreciation of Right of Use and Fixed Assets 293 327 + Net book value of assets sold/written off 2 5 +/- Net charge/(release) of provisions -20 -21 Operating Margin before Depreciation & Amortization 487 369 Capital Expenditures -110
Slide 25: Free cash flow
Free cash flow Underlying improvement in cash from operations; planned ramp-up of transformation costs; WC normalization In €M: +101 +46 +161 +250 +144 (555) (969) H1 2023 Working Capital Increase in RRIs ∆ Interests ∆ Others CFO underlying H1 2022 FCF normalization linked to & Tax improvement FCF t
Slide 26: H1 2023 Change in net debt
H1 2023 Change in net debt In €M: (969) (120) (2,321) +218 € 2.6 bn Gross cash (1,450) € 0.3 bn Undrawn credit facility Net debt FCF H1 2023 Proceeds from FX & others Net debt Dec 2022 disposals June 2023 26 | 28-07-2023 | © Atos
Slide 27: 04. Full year outlook
04. Full year outlook Nourdine Bihmane
Slide 28: 2023 full-year outlook
2023 full-year outlook Group Eviden Tech Foundations Acceleration Managed decrease Organic revenue 0.0% to +2.0% Core stabilization vs. 2022 growth Previously -1.0% to +1.0% Portfolio rationalization +0.1% in 2022 +2.0% in 2022 -1.6% in 2022 4% to 5% Improvement Positive territory Operating margin*
Slide 29: 05. Q&A
05. Q&A Atos
Slide 30: Thank you!
Thank you! For more information please contact: Thomas Guillois – Head of Investor Relations M+ 33 6 21 34 36 62 thomas.guillois@atos.net Atos is a registered trademark of Atos SE. July 2023. © 2023 Atos. Confidential information owned by Atos, to be used by the recipient only. This document, or any