Atos SE · EURONEXT:ATO

Atos — H1 2013 Earnings Presentation

46 slides from Atos's earnings presentation, Jul 24, 2013

  1. Slide 1: First half 2013 results

    First half 2013 results Wednesday, July 24th 2013

  2. Slide 2: Disclaimers

    First Half Disclaimers 2013 July 24th, 2013 ▶ This document 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 numb

  3. Slide 3: Agenda

    First Half Agenda 2013 July 24th, 2013 1. H1 2013 - Highlights 2. H1 2013 - Financial performance 3. H1 2013 - Commercial performance 4. Update on carve-out of 5. Tier One Program follow-up 6. Canopy: = the Atos Cloud Services entity 7. Conclusion 8. Q&A session 3

  4. Slide 4: H1 2013 - Highlights

    First Half 2013 July 24th, 2013 Thierry Breton, Chairman & CEO H1 2013 - Highlights 4

  5. Slide 5: Highlights (1/3)

    First Half Highlights 2013 1/3 July 24th, 2013 H1 2013 H1 2012 Revenue (EUR m) 4,290 4,316 Operating margin (in % and EUR m) 6.5% EUR 279 m 5.6% EUR 244 m Free cash flow (EUR m) 158 127 Net cash (EUR m) 359 101 Revenue and operating margin at constant scope and exchange rates 5

  6. Slide 6: Highlights (2/3)

    First Half Highlights 2013 2/3 July 24th, 2013 H1 2013 H1 2012 Net income Group share (EUR m) 116 102 Book to bill 106% 113% Backlog 15.5 14.9 (EUR b) 1.8 years of revenue 1.7 years of revenue Total number of employees 77,105 75,329 6

  7. Slide 7: Highlights (3/3)

    First Half Highlights 2013 3/3 July 24th, 2013 ▶ Carve-out of Atos Payment and Merchant Transactional activities completed ▶ Adaptation of the organization: – Group Business Units – Service Lines – Global Markets ▶ Atos brings innovative IT solutions to BtoB markets through global strategic cooperat

  8. Slide 8: Management team and geographical presence of Worldline

    First Half Management team and geographical 2013 presence of Worldline July 24th, 2013 Top management ▶ Thierry BRETON: Atos Chairman and CEO, Worldline Chairman; ▶ Gilles GRAPINET: Atos SEVP Global Functions, Worldline CEO; ▶ Marc-Henri DESPORTES: Worldline General Manager, Atos Executive Committee

  9. Slide 9: 2013 Objectives

    First Half 2013 Objectives 2013 July 24th, 2013 2013 The Group confirms all its objectives for 2013 as stated in the February 21st, 2013 release, i.e.: ▶Revenue – The Group expects to continue to slightly grow compared to 2012. ▶Operating margin – The Group has the objective to improve its operating

  10. Slide 10: H1 2013 - Financial performance

    First Half 2013 July 24th, 2013 Michel-Alain Proch, Executive Vice President and Group CFO H1 2013 - Financial performance 10

  11. Slide 11: Constant Scope and exchange rate figures reconciliation

    First Half Constant Scope and exchange rate 2013 figures reconciliation July 24th, 2013 In EUR million H1 2013 H1 2012 % growth Statutory revenue 4,290 4,366 -1.7% Scope impact -5 Exchange rates impact -45 Revenue at constant scope and 4,290 4,316 -0.6% exchange rates Operating margin 279.0 248.8 +1

  12. Slide 12: Performance by Service line

    First Half Performance by Service line 2013 July 24th, 2013 Systems ▶ Activity overall stable Integration 26% HTTS & Specialized Businesses 20% ▶ Accelerating growth in HTTS Managed Consulting ▶ Strong operating margin increase in Services & 47% Technology Services 7% Managed Services and in Systems

  13. Slide 13: Managed Services

    First Half Managed Services 2013 July 24th, 2013 In EUR million H1 2013 H1 2012* change Revenue 1,998 1,997 +0.0% Operating margin 162.5 143.5 +13.2% Operating margin rate 8.1% 7.2% +95bp *constant scope and exchange rates ▶ Positive dynamic in the US and Other the UK thanks to large contracts count

  14. Slide 14: Integration Systems

    First Half Integration Systems 2013 July 24th, 2013 In EUR million H1 2013 H1 2012* change Revenue 1,133 1,142 -0.8% Operating margin 55.0 37.2 +47.9% Operating margin rate 4.9% 3.3% +160bp *constant scope and exchange rates ▶ Revenue grew in Germany, Other France Central & Eastern Europe, and count

  15. Slide 15: HTTS & Specialized Businesses

    First Half HTTS & Specialized Businesses 2013 July 24th, 2013 In EUR million H1 2013 H1 2012* change Revenue 844 833 +1.4% of which HTTS 592 561 +5.6% Operating margin 99.4 104.9 -5.2% of which HTTS 93.8 87.8 +6.8% Operating margin rate 11.8% 12.6% -82bp of which HTTS 15.8% 15.7% +19bp *constant sco

  16. Slide 16: Consulting & Technology Services

    First Half Consulting & Technology Services 2013 July 24th, 2013 In EUR million H1 2013 H1 2012* change Revenue 314 343 -8.5% Operating margin 13.9 14.2 -2.1% Operating margin rate 4.4% 4.1% +29bp *constant scope and exchange rates ▶ Operating margin France improvement with enhanced 43% Benelux & Th

  17. Slide 17: Performance by Business unit

    First Half Performance by Business unit 2013 July 24th, 2013 ▶ Revenue performance driven by North America and the UK ▶ Continued increase of Atos Worldline, accelerating in Q2 ▶ Germany almost flat excluding base effect from the Siemens Revenue Operating Margin Operating Margin % In EUR million H1

  18. Slide 18: Group Headcount evolution

    First Half Group Headcount evolution 2013 July 24th, 2013 3,576 5,756 1,473 19 77,105 76,417 Headcount a s of Scope e ffect Hiring Leave rs Re structuring & Headcount a s of 31/12/12 dismissa ls 30/06/13 ▶ Direct staff representing 92.1 percent of the total headcount ▶ Group offshore capability +8%

  19. Slide 19: H1 2013 – Income Statement

    First Half H1 2013 – Income Statement 2013 July 24th, 2013 In EUR million H1 2013 H1 2012 Revenue 4,290 4,366 Operating Margin 279.0 248.8 % revenue 6.5% 5.7% Staff reorganization -48.3 -27.6 Rationalization and associated costs -21.2 -10.7 Integration & acquisition costs -10.4 -25.8 Customer relati

  20. Slide 20: H1 2013 – Cash flow statement

    First Half H1 2013 – Cash flow statement 2013 July 24th, 2013 In EUR million H1 2013 H1 2012 OMDA* 380.9 345.4 Capital Expenditures -169.8 -155.3 Change in working capital requirement 63.3 58.4 Cash from operations 274.4 248.5 Taxes paid -36.9 -30.8 Net costs of financial debt paid -17.4 -16.5 Reorg

  21. Slide 21: H1 2013 - Commercial performance

    First Half 2013 July 24th, 2013 Gilles Grapinet, Senior Executive Vice President, Global Functions H1 2013 - Commercial performance 21

  22. Slide 22: H1 2013 commercial activity

    First Half H1 2013 commercial activity 2013 July 24th, 2013 ▶ Book to bill ▶ Pipeline H1 2013 H1 2012* Cyclical activities 98% 99% Weighted pipeline was Recurring businesses 110% 121% at EUR 5.0 billion Total Group 106% 113% ▶ Cyclical activities ▶ Recurring businesses 120% 120% 120% 121% 100% 100%

  23. Slide 23: Q2 2013 main wins

    First Half Q2 2013 main wins 2013 July 24th, 2013 ▶ Renewal in BPO of a major contract with NS&I (Financial Services) in the UK ▶ New Managed Services contracts with a large European consumer electronics company in the Netherlands, Givaudan in Switzerland, and American College Testing and City of In

  24. Slide 24: Backlog to revenue evolution by Service Line

    First Half Backlog to revenue evolution by 2013 Service Line July 24th, 2013 ▶ Total backlog at EUR 15.5 billion at the end of June 2013 ▶ Managed Services ▶ HTTS & Specialized Businesses 2.0 2.3 2.2 2.2 2.0 2.2 1.5 1.5 1.8 1.6 1.0 1.0 0.5 0.5 0.0 0.0 Jun-12 Dec-12 Jun-13 Jun-12 Dec-12 Jun-13 ▶ Syst

  25. Slide 25: Worldline carve-out update

    First Half 2013 July 24th, 2013 Gilles Grapinet, Atos Senior Executive Vice President, Global Functions Chief Executive Officer of Worldline 25

  26. Slide 26: Worldline presentation: leading European player in e-payment services

    First Half Wordline presentation 2013 July 24th, 2013 leading European player in e-payment services GLOBAL BRAND EFFICIENT GROWTH INTEGRATION RECOGNITION OPERATION ACCELERATION 26

  27. Slide 27: Worldline is up and running

    First Half Worldline is up and running 2013 Carve-out is completed July 24th, 2013  4 entities created Legal entities created by  2 intermediate holdings are in legal scheme countries  4 entities formerly completed in Q3 2013 Social process  Positive opinion received in May from Work Councils (E

  28. Slide 28: Key figures

    First Half Key figures 2013 July 24th, 2013 H1 2013 H1 2013 revenue H1 2013 revenue operating margin organic growth rate €548m +5.4% 14.6% 14.2% in H1 2012 H1 2013 free Geographical Total headcounts cash flow footprint €62m c. 7,100 17 EUR €50m in H1 2012 countries 28

  29. Slide 29: A client-centric e-Payment company built around Global Business Lines

    First Half A client-centric e-Payment company 2013 built around 3 Global Business Lines July 24th, 2013 e-payment and e-payment e-payment services transaction services for banking for merchants for governments, transportations,… institutions Merchant Financial Mobility & Services Processing e-Transa

  30. Slide 30: Merchant Services & Terminals

    Merchant Services & First Half 2013 Terminals July 24th, 2013 Main activities & offerings H1 2013 performance* ▶ Commercial 178 million revenue EUR acquiring and acceptance services +3.7% organic growth ▶ Online services 18.3% operating margin ▶ Private label cards and loyalty services Growth driver

  31. Slide 31: Mobility & e-Transactional Services

    First Half Mobility & e-Transactional 2013 Services July 24th, 2013 Main activities & offerings H1 2013 performance* ▶ e-Government services (tolling systems, fine 182 million revenue EUR processing centers,…) +10.0% organic growth ▶ e-Ticketing solutions and services 11.4% operating margin ▶ e-Cons

  32. Slide 32: Financial Processing & Software Licensing

    Financial Processing & First Half 2013 Software Licensing July 24th, 2013 Main activities & offerings H1 2013 performance* ▶ Issuing processing 189 million revenue EUR services ▶ Acquiring +2.8% organic growth processing services 18.5% operating margin ▶ Online banking platforms Growth drivers ▶ Pay

  33. Slide 33: H1 2013 Worldline performance

    First Half H1 2013 Worldline performance 2013 July 24th, 2013 Revenue (in EUR million) Operating margin (in EUR million) +5.4% Revenue +3.7% 178 (in EUR million) Merchant 171 548 Services & and organic 18.5% 18.3% growth 520 Terminals 31.7 32.5 (in %) H1 2012* H1 2013 H1 2012* H1 2013 +10.0% 182 Mob

  34. Slide 34: A leading position

    A European leading multi-channel transactionnal First Half specialist focused on value added services 2013 July 24th, 2013 Payment Digital transactions transactions volumes in 2012 A leading position volumes in 2012 - 2.2 billion of - 2.2 billion calls acquiring (IRV & contact transactions centers)

  35. Slide 35: Tier One Program

    First Half 2013 July 24th, 2013 Charles Dehelly, Senior Executive Vice President of Global Operations Tier One Program 35

  36. Slide 36: Tier One Program is the engine of Atos continuous improvement

    Tier One Program is the engine of First Half 2013 Atos continuous improvement… July 24th, 2013 New end-to-end transformations Managed Services example: covering all Atos processes. H1 2013 pilot confirmed initial targets in terms of quality and impact: ▶ Accelerated roll-out starting with key proces

  37. Slide 37: Offsetting strong price pressure while securing financial improvement

    …to offset strong price pressure First Half while securing our committed 2013 financial improvement July 24th, 2013 Continue existing program, on top the new end-to-end program, to offset additional competition pressure. Competitors fight for + New end-to-end growth transformations program ▶ Offshor

  38. Slide 38: The Atos Cloud Services entity

    First Half 2013 July 24th, 2013 Charles Dehelly, Senior Executive Vice President of Global Operations THE ATOS CLOUD SERVICES ENTITY 38

  39. Slide 39: A global end to end offering focused on large enterprises and administrations

    A global end to end offering focused on First Half 2013 large enterprises and administrations July 24th, 2013 Consulting SaaS PaaS IaaS App store and On premise Cloud Strategy Canopy Velocity SaaS roadmap vBlock appliances • Strategic Advisory • Implementation/ • Development & test Off premise IaaS

  40. Slide 40: A global Cloud and Enterprise software service line

    A global Cloud and Enterprise software First Half service line to manage all Atos activities 2013 related to cloud July 24th, 2013 Cloud and Enterprise software service line: MS-SI-C&TS Cloud Atos/EMC/VMware related activities Joint venture and technologies Ambition: ▶ EUR 200+ million revenue in 20

  41. Slide 41: Conclusion

    First Half 2013 July 24th, 2013 Thierry Breton, Chairman & CEO Conclusion 41

  42. Slide 42: Atos as a global leader in corporate & social responsibility

    First Half Atos as a global leader in corporate 2013 & social responsibility July 24th, 2013 2010 2011 2012 2013 CSR report Awaiting results Extra- financial Rating Supply Score 2013 available Score: 6/10 Score: 6/10 Score: 7/10 chain in Q4 GPTW Poland Other awards 42

  43. Slide 43: Key takeaways

    First Half Key takeaways 2013 July 24th, 2013 H1 2013 Performance ▶ H1 2013 performance as expected, in line with FY 2013 guidance ▶ Strong commercial activity in Q2 with large renewals ▶ Cyclical business not yet restarted in Europe Group optimization ▶ Adaptation of the Group organization (Service

  44. Slide 44: Q&A session

    First Half 2013 July 24th, 2013 Management team Q&A session 44

  45. Slide 45: From Questions to Answers

    First Half 2013 July 24th, 2013 From Questions to Answers 45

  46. Slide 46: Thank you

    Thank you Atos, the Atos logo, Atos Consulting, Atos Worldline, Atos Sphere, Atos Cloud and Atos WorldGrid are registered trademarks of Atos SE. 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

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