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Atos — H1 2019 Earnings Presentation
32 slides from Atos's earnings presentation, Jul 25, 2019
Slide 1: H1 2019 results
H1 2019 results Bezons July 25, 2019 © 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
Slide 3: Agenda
Agenda 1.H1 2019 highlights 2.H1 2019 performance 3.Conclusion and Q&A 3 | 25-07-2019 | © Atos
Slide 4: H1 2019 highlights
H1 2019 highlights Thierry Breton Chairman & CEO
Slide 5: H1 2019 highlights
H1 2019 highlights Infrastructure & Data Management and North America well on track towards growth in H2 Syntel integration moving as planned with first order entry synergies generated and cost synergies materializing Big Data & Cybersecurity pursued its double-digit growth supported by strong attra
Slide 6: H1 2019 key figures
H1 2019 key figures Revenue Operating margin Free cash flow €5,744m €529m +0.8% organically €23m 9.2% of revenue Q2 at +1.1% Total number employees Net income Group share Order entry 108,851 €180m €5.7bn €3.21 Normalized Diluted -1.5% over H1 2019 at Book to Bill 100% EPS from continuing constant sc
Slide 7: 2019 objectives confirmed
2019 objectives confirmed Revenue +1% to +2% organic growth Operating c. 10.5% of revenue margin Free cash flow €0.6 to €0.7bn 7 | 25-07-2019 | © Atos
Slide 8: Key technology releases of the semester
Key technology releases of the semester #1: High computing capabilities everywhere ► On premises/in the Cloud ► At the edge #2: Turning data into ► the Quantum revolution business value everywhere ► Artificial Intelligence #3: Ensuring trust and ► Specific algorithms security everywhere ► Cybersecur
Slide 9: Enhancement of existing partnerships and signature of new agreements
Enhancement of existing partnerships and signature of new agreements Atos Becomes a Atos recognized as part Atos recognized as Google Microsoft Azure Expert of DELL EMC President’s Cloud Global Managed Service Circle in recognition for Breakthrough Partner Provider outstanding performance of the Yea
Slide 10: People strategy supporting growth and anticipating automation
People strategy supporting growth and anticipating automation Atos #1 Digital certification New partnerships Atos #1 certified 1 Cybersecurity 2 Google Cloud 3 ahead of 3 year 4 with major Expertise plan universities AI for Industry 5,000+ full-time 22,000 digital ecosystem Cybersecurity experts cer
Slide 11: Atos Green digital partner of our customers
Atos Green digital partner of our customers Anticipating new TCFD (*) regulation 100 % carbon offset for our customers Leading Edge Research for Green IT 15 out of 100 most energy Atos brand new next-generation efficient Super Computer datacenter in France is 30% are manufactured by Atos more energy
Slide 12: H1 2019 performance
H1 2019 performance Elie Girard Deputy CEO & Group CFO
Slide 13: Main wins in Q2 2019 confirming Digital acceleration
Main wins in Q2 2019 confirming Digital acceleration Entry-Exit System Cloud extension implementation to & Application facilitate border checks & Management reduce delays Migration to cloud with Google Cloud Cyber secured OpenScape space for Google Voice and UCC Cloud's G Suite BullSequana applicati
Slide 14: H1 2019 Commercial activity dashboard
H1 2019 Commercial activity dashboard Order entry Backlog €5.7bn €21.3bn 100% Book to Bill ratio in H1 2019 1.9 year of revenue (113% in Q2) 2 11 Qualified Pipeline in H1 2019 in H1 2018 €7.1bn 7.4 months of revenue contracts > € 50m coming for renewal 14 | 25-07-2019 | © Atos
Slide 15: Constant scope and exchange rates figures reconciliation
Constant scope and exchange rates figures reconciliation In € million H1 2019 H1 2018 % change Statutory revenue 5,744 6,005 -4.3% Exchange rates effect 68 Revenue at constant exchange rates 5,744 6,074 -5.4% Scope effect -395 Exchange rates effect on acquired/disposed perimeters 23 Revenue at const
Slide 16: H1 2019 performance by Division
H1 2019 performance by Division ▶ Infrastructure & Data Management well on track 8% Infrastructure & Data towards growth in H2 Management ▶ Business & Platform Solutions transformation Business & Platform Solutions underway through Syntel integration 37% 55% ▶ Continuous double-digit growth in Big D
Slide 17: Infrastructure & Data Management
Infrastructure & Data Management ▶ Strong improvement in Q2 notably in North North America America 15% 26% Germany ▶ Acceleration of Hybrid Cloud Orchestration, 7% United Kingdom & Ireland Technology Transformation Services and Unified 9% Benelux & The Nordics Communications 22% France ▶ Operating M
Slide 18: Business & Platform Solutions
Business & Platform Solutions ▶ Syntel integration moving as planned with North America synergies starting to materialize and contributing 23% 22% to 80 bps margin rate improvement France ▶ Cleaning of several low margin Atos legacy Germany 9% United Kingdom & Ireland contracts 21% ▶ Continued stron
Slide 19: Syntel integration and revenue synergies
Syntel integration and revenue synergies Strong pipeline, focus on deals and signatures Syntel clients growth in line with business plan in H1 2019 Revenue Synergies Two key renewals with significant ▪ 21 deals already closed in H1 scope extension signed of $40M each for US-based insurers ▪ c. € 40M
Slide 20: Syntel delivery and cost synergies
Syntel delivery and cost synergies Savings from G&A and Account Transformation Transformation synergies Employee and facility transformation ▶ Procurement and real estate synergies materialized in H1 2019, resulting in €14M annualized cost savings. ▶ New Tirunelveli Global Delivery Center now operat
Slide 21: Big Data & Cybersecurity
Big Data & Cybersecurity ▶ Continued strong business trend with France double-digit growth in both Cybersecurity 22% Germany and Big Data Benelux & The Nordics 43% 3% ▶ Accelerated investments in innovative North America 9% offerings and R&D United Kingdom & Ireland 9% ▶ Strong level of hiring in hi
Slide 22: H1 2019 performance by Business Unit
H1 2019 performance by Business Unit North America ▶ North America on track towards growth in H2 19% 23% Germany ▶ All geographies recorded growth in continental France 9% Europe United Kingdom & Ireland 19% ▶ Syntel cost synergies starting to materialize and 15% Benelux & The Nordics 15% Other Busi
Slide 23: The Atos transformation & performance program
: the Atos transformation & performance program Automation Infrastructure & Data Mgmt. • Atos Automation Marketplace deployed & c. 1 850 use • Span and Pyramid Control early results cases available • 25% of vacancies turned into automation/software roles • Automation Certified Employees x7 in H1 201
Slide 24: Income statement
Income statement In € million H1 2019 H1 2018 Revenue 5,744 5,241 Operating margin 529 416 % of revenue 9.2% 7.9% Reorganization, Rationalization, Integration & acquisition costs -104 -65 Amortization of intangible assets (PPA from acquisitions) -79 -49 Equity based compensation -34 -32 Others -24 -
Slide 25: Free Cash Flow: H1 / H2 timing effects
Free Cash Flow: H1 / H2 timing effects In € million H1 2019 H1 2018 Operating Margin before Depreciation & Amortization 835 542 as a % of revenue 14.5% 10.3% Capital Expenditures -173 -177 Lease payments -167 - Change in working capital requirement -269 -152 Cash from operations 227 213 Reorganizati
Slide 26: Bridge FCF: from H1 to FY
Bridge FCF: from H1 to FY 26 | 25-07-2019 | © Atos
Slide 27: Net cash evolution
Net cash evolution Free FX rate Net debt Deconsolidation cash Capital Dividend Share fluctuation Net debt 31/12/18 of Worldline flow Acquisitions increase paid buy-back effect 30/06/19 -2,872 -11 +15 +23 -2 938 -2,939 - 58 +35 -76 +5 27 | 25-07-2019 | © Atos
Slide 28: H1 2019 headcount evolution
H1 2019 headcount evolution 28 | 25-07-2019 | © Atos
Slide 29: Conclusion
Conclusion Thierry Breton Chairman & CEO
Slide 30: 2019 main priorities
2019 main priorities Return to growth in H2 for Successfully integrate Syntel North America and for and generate synergy plans to Infrastructure & Data improve Business & Platform Management Solutions profitability Position Big Data & Roll out RACE program to Cybersecurity as a leading increase oper
Slide 31: Q&A
Slide 32: Thank you
Thank you Atos, the Atos logo, Atos Syntel, and Unify are registered trademarks of the Atos group. July 2019. © 2019 Atos. Confidential information owned by Atos, to be used by the recipient only. This document, or any part of it, may not be reproduced, copied, circulated and/or distributed nor quot