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Atos — Q1 2012 Earnings Presentation
28 slides from Atos's earnings presentation, Apr 25, 2012
Slide 1: First quarter 2012
First quarter 2012 Wednesday 25 April, 2012
Slide 2: Disclaimers
First quarter Disclaimers 2012 25 April 2012 ▶ 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 num
Slide 3: Agenda
First quarter Agenda 2012 25 April 2012 1. Q1 2012 Highlights 2. Q1 2012 Financial performance 3. Atos growth drivers 4. 2012 objectives and 2013 targets 5. Q&A session 3
Slide 4: Q1 2012 Highlights
First quarter 2012 25 April 2012 Gilles Grapinet, Senior Executive Vice President, Global Functions Q1 2012 Highlights 4
Slide 5: Q1 2012 Highlights
First quarter Q1 2012 Highlights 2012 25 April 2012 2,163 +2.4% 107% Revenue (EUR m) Revenue organic Book to bill evolution (Q1 2011 pro forma: EUR (Q1 2011: -1.3%) (Q1 2011: 101%) 2,112 m) 14.5 +34 74,992 Backlog (EUR bn) Net cash (EUR m) Total Group number (1.7 years of revenue (Dec 2011: EUR -142
Slide 6: Quarterly revenue organic evolution
First quarter Quarterly revenue organic evolution 2012 25 April 2012 ▶ Led by Managed Services and HTTS & Specialized Businesses ▶ eXpand program launched in H2 2011 to +2.4% +2.2% accelerate growth in all Service Lines 0% -1.2% -1.3% -0.1% -0.3% -3.8% -3.5% -5.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 201
Slide 7: Main wins over the first quarter of 2012 (1/2)
First quarter Main wins over the first quarter of 2012 2012 (1/2) 25 April 2012 Manufacturing, Retail & Services ▶ Large medical manufacturer (North America): MS -Managed Infrastructure Solution ▶ Large retailer (Germany): MS/SI - Managed Infrastructure Solution - Renewal ▶ Pharmaceutical company (B
Slide 8: Main wins over the first quarter of 2012 (2/2)
First quarter Main wins over the first quarter of 2012 2012 (2/2) 25 April 2012 Telecoms, Media & Technology ▶ Important Telco operator (Benelux): MS/SI - Application Operations ▶ Telco manufacturer (Germany): MS - Managed Infrastructure Solution ▶ Large Telco operator (France): SI - Various Busines
Slide 9: Commercial activity
First quarter Commercial activity 2012 25 April 2012 ▶ Total order entries in Q1 2012 at EUR 2,312 million, representing a book to bill ratio of 107 per cent Cyclical Recurring Book to bill Total Group activities businesses Q1 2012 107% 102% 109% Q1 2011* 101% 103% 100% ▶ Excluding Siemens, book to
Slide 10: Q1 2012 backlog evolution
First quarter Q1 2012 backlog evolution 2012 (in EUR billion) 25 April 2012 EUR 14.1 B +0.3 EUR 14.5 B C & TS C & TS 0.5 year -2.2 +2.3 HTTS & SB 1.5 years HTTS & SB Systems Systems Integration Integration 1.0 year 1.7 years 1.7 years of revenue of revenue Managed Managed 2.3 years Services Services
Slide 11: Pipeline at the end of March 2012
First quarter Pipeline at the end of March 2012 2012 (in EUR million) 25 April 2012 6 000 Qualified weighted EUR 5.4 B Pipeline 5 000 15 % 22 % 4 000 13 % 10 % EUR 2.7 B 3 000 11 % 12 % 2 000 1 000 0 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Deals below EUR 50 M Deals bet
Slide 12: Q1 2012 Financial performance
First quarter 2012 25 April 2012 Michel-Alain Proch, Executive Vice President and Group CFO Q1 2012 Financial performance 12
Slide 13: Revenue constant scope and exchange rates reconciliation
First quarter Revenue constant scope and 2012 exchange rates reconciliation 25 April 2012 In EUR million Q1 2012 Q1 2011 % growth Statutory revenue 2 163 1 228 +76,2% SIS scope impact 840 Deferred asset scope impact 31 Exchange rates impact 13 Revenue at constant scope and exchange rates 2 163 2 112
Slide 14: Q1 2012 revenue performance by Service Line
First quarter Q1 2012 revenue performance by 2012 Service Line 25 April 2012 HTTS & Consulting & ▶ Growth in 2 of 4 Service Lines thanks Specialized Technology to Atos’ recurring profile and new Businesses Services businesses won in Q4 2011 22% 7% Systems Integration ▶ Stabilized activity in Systems
Slide 15: Q1 2012 revenue performance by GBU
First quarter Q1 2012 revenue performance by 2012 GBU 25 April 2012 In EUR million Q1 2012 Q1 2011* % growth Germany 418 394 +6.1% United-Kingdom & Ireland 390 369 +5.8% Benelux 248 262 -5.2% France 255 259 -1.6% Atos Worldline 226 222 +1.8% North America 134 124 +8.4% Central and Eastern Europe 130
Slide 16: Q1 2012 cash flow and net cash position target
First quarter Q1 2012 cash flow and net cash 2012 position target (in EUR million) 25 April 2012 e-utile SIS post Net debt Free cash flow acquisition closing Net cash Net cash target 31/12/11 Q1 2012 impact adjustment 31/03/12 30/06/12 at least +100* +34 +161 +161 -142 -18 +34 * Excluding dividend a
Slide 17: Q1 2012 Group headcount evolution
First quarter Q1 2012 Group headcount evolution 2012 25 April 2012 ▶ Slight increase coming from deferred assets -2,029 +2,948 -986 +1,089 74,992 73,969 Headcount as Scope effect* Hiring Leavers Dismissals, Headcount as of 01/01/12 restructuring & of 31/03/12 other * SIS deferred transferring asset:
Slide 18: Annualized attrition by quarter
First quarter Annualized attrition by quarter 2012 25 April 2012 ▶ Attrition remains under control 12.3% 12.6% 11.4% 11.2% 11.2% 10.6% 10.3% 11.2% 9.4% 10.6% 10.2% 8.3% 9.5% 9.6% 9.7% 9.4% 8.1% Total Group Onshore 7.1% Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 18
Slide 19: Atos growth drivers
First quarter 2012 25 April 2012 Gilles Grapinet, Senior Executive Vice President, Global Functions Atos growth drivers 19
Slide 20: Atos growth drivers
First quarter Atos growth drivers 2012 25 April 2012 Managed HTTS Specialized Businesses Services Payment & e-CS Industry Specific A leader in core Skills and Europe differentiators know-how eXpand Canopy Partnerships Accelerating An alliance with With leading profitable EMC² and players growth VMwa
Slide 21: Advanced cloud services: Atos, EMC and VMware alliance
To unleash the cloud revolution, Atos, EMC First quarter and VMware formed a strategic alliance 2012 25 April 2012 The Leading European The #1 Storage The #1 Cloud IT services company Cloud solutions vendor Virtualization company Advanced cloud Services for the benefit of large and upper midsized en
Slide 22: What does Canopy offer to the market?
What does Canopy offer First quarter 2012 to the market ? 25 April 2012 Cloud lifecycle consulting – Strategy Consulting – Technology consulting (security…) – Migration and planning Development & Development and Migration Services Migration Services – Architecting, designing – Development and implem
Slide 23: 2012 objectives and 2013 targets
First quarter 2012 25 April 2012 Gilles Grapinet, Senior Executive Vice President, Global Functions 2012 objectives and 2013 targets 23
Slide 24: 2012 Objectives
First quarter 2012 Objectives 2012 25 April 2012 2012 The Group confirms all its objectives for 2012 as stated in the February 23rd, 2012 release, i.e.: ▶Revenue – The Group expects a slight revenue organic growth compared to proforma for full year 2011. ▶Operating margin – the Group has the objecti
Slide 25: Strategy and objectives: Significant value creation potential
First quarter Strategy and objectives: Significant 2012 value creation potential 25 April 2012 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 26: Q&A session
First quarter 2012 25 April 2012 Management team Q&A session 26
Slide 27: From Questions to Answers
First quarter 2012 25 April 2012 From Questions to Answers 27
Slide 28: 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