Atos Se · EURONEXT:ATO
Atos — Investor Day (November 2016)
128 slides from Atos's investor day presentation, Nov 8, 2016
Slide 1: 2016 Investor Day
2016 Investor Day Atos’ Headquarters, Bezons November 08, 2016 © Atos - Confidential
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: Future is about growth: commercial actions
Future is about growth: commercial actions Patrick Adiba, Group CCO Charles Dehelly, Group SEVP
Slide 4: Key levers of growth fuel by the digital transformation need of our clients
Key levers of growth fuel by the digital transformation need of our clients 1 Focus on High Growth offers 2 Focus development in High Growth markets Focus on the roll out of our demonstrated 3 efficient sales process 4 | Atos – 2016 Investor Day
Slide 5: Atos 2019 ambition
Atos 2019 ambition Be the enabler of customers data business models Customer Go-to-Market: single handed customer relation. One team, one contract Digital Transformation Factory Single handed transformation with committed business outcome & timelines Atos Canopy SAP HANA Atos Digital Atos solutions
Slide 6: 2-Focus development in High Growth markets
2-Focus development in High Growth markets An ambitious growth potential and strategy in North America NAM +4.5% CAGR E M APAC E + Y% ▶ The largest, richest A and fastest growing + world IT market. ▶ Early Technology Y adopter % 6 | Atos – 2016 Investor Day Source: Gartner Market DATABOOOK - 2016-20
Slide 7: 3-Sales transformation delivering results but still significant potential
3-Sales transformation delivering results but still a significant potential of improvement Market lead accounts: 65% of total revenue: c. 5% growth rate But: Traditional SL account: 35% of total ER: c. -5% growth rate Today #1 among only 30% of our top accounts 7 | Atos – 2016 Investor Day
Slide 8: 3-Market lead account
3-Market lead account: Tight and Systematic tracking of progresses Atos Sales methodology ▶ Focus on Market led top accounts (~200 accounts) representing 65% of Target total Atos sales setting ▶ Building of differentiated value proposition ▶ Creation of joint account teams (Client Executive on Atos
Slide 9: Strong sales efficiency measures to accelerate growth
Strong sales efficiency measures to accelerate growth Focus, efficiency, customer-centricity Extended Global Cross Service-Line Streamlined Accounts offerings sales process management Digital One Contract Target Transformation Factory ▶ 50 Accounts Atos Digital workplace >€100m + + ▶ 50 Atos Codex S
Slide 10: Atos Canopy Orchestrated Hybrid Cloud
Atos Canopy Orchestrated Hybrid Cloud Eric Grall, Head of Managed Services Michael Kollar, Chief Digital Officer North America
Slide 11: Atos Cloud capabilities
Atos Cloud capabilities Leader in Cloud enablement Deployed one of 3.300+ world’s the Cloud experts largest Named LEADER in Hybrid Cloud Cloud by leading industry analysts Global player 20–30% €700m Powerful Cloud Ecosystem cost savings in annual revenue 12 months 11 | Atos – 2016 Investor Day
Slide 12: Atos Canopy: Enabling the digital journey
Atos Canopy Orchestrated Hybrid Cloud Enabling the digital journey Clients Business Drivers Atos Solutions ▶ Business Agility / Speed to Market ▶ Industrialized migration to cloud ▶ Business Strategy Execution ▶ End-to-end Service Integration ▶ Application transformation and ▶ Hybrid Cloud Eco-Syste
Slide 13: Atos Canopy Orchestrated Hybrid Cloud
Atos Canopy Orchestrated Hybrid Cloud Leveraging Atos and partner expertise, improving productivity and lowering risk Application Consulting Application Transformation Security Services Digital Apps Cloud Cloud Foundry Legacy Apps Compose Service Orchestration & End-to-End Management Clouds from Ato
Slide 14: Applying our integration expertise to cloud
Atos Canopy Orchestrated Hybrid Cloud Applying our integration expertise to cloud digital and vertical fuel’s growth Customers ▶ Customer business processes benefiting from Business Order to digital andCustomer Production verticalMulti-channel fuel’s growthHybrid Cloud & mixture of Elastic Applicati
Slide 15: Transforming customers applications & infrastructure
Atos Canopy Orchestrated Hybrid Cloud to transform customers applications & infrastructure Application Classification Cloudification Factory Hybrid Cloud Platforms Complex Value Strategic Regulatory ReFresh Public (Standardize) ReFactor / ReFabric (Modernize) Private Cr
Slide 16: We continuously leverage cloud innovation
We continuously leverage cloud innovation Innovation never stops – within Atos and our unique network of partners Research & Client Strategic Cloud Development Innovation Partners Ecosystem 16 | Atos – 2016 Investor Day
Slide 17: A strong sales momentum
A strong sales momentum with large recent signatures ▶ Application Modernization Services ▶ Hybrid Cloud Services ▶ Integrated ecosystem of partners ▶ Continuous innovation … and many others 17 | Atos – 2016 Investor Day
Slide 18: Canopy 3-year plan
Atos Canopy Orchestrated Hybrid Cloud 3-year plan €1.7bn 1 Expand in application transformation and native new apps for cloud revenue Benefit from growth in Big Data 2 including IoT Utilize strong position from our strong 3 Software Defined Data Center offerings €700m Leverage expertise in Hybrid Cl
Slide 19: Why clients are choosing Atos as their cloud partner
Why clients are choosing Atos as their cloud partner End-to-end Leveraging an Expertise in (Legacy-Hybrid) Continuous ecosystem of application management & innovation and strategic migration orchestration increased partners automation 19 | Atos – 2016 Investor Day
Slide 20: SAP HANA by Atos
SAP HANA by Atos Ursula Morgenstern Head of Consulting & Systems Integration R.V. Narasimham Head of Global Delivery Center C&SI
Slide 21: HANA: ONE Database ONE Platform ONE System
HANA: ONE Database ONE Platform ONE System HANA is SAP response to Digital transformation IT Cost Optimization SAP new flagship HANA Cloud Platform Suite of SaaS software Business Cost Optimization Business Process transformation HANA In Memory Database 21 | Atos – 2016 Investor Day
Slide 22: SAP HANA will be increasingly important for SAP
SAP HANA will be increasingly important for SAP HANA: ONE Database & ONE Platform & ONE System 2016 2019 +21% (+7% CAGR) Market: €21.5bn Market: €26.0bn 25% Market Trends 54% SAP HANA 4,700 customers SAP HANA 75% Non-SAP customers moving to SAP HANA 9,700 customers (+27%) SAP ERP customers moving to
Slide 23: Atos SAP HANA growth plan
Atos SAP HANA growth 3 years plan Leverage existing SAP 1 €700m expertise and client base Expand in S/4HANA implementation, HANA 2 migration and HANA revenue €100m operation Further leverage of Atos 3 competence in HCP and revenue innovative solutions 2016 2019e 23 | Atos – 2016 Investor Day
Slide 24: Atos end-to-end HANA value proposition
Atos provides an unique end-to-end HANA value proposition Covering the full scope of SAP HANA Implementations Comprehensive S/4HANA & Flexible HANA Hosting and HCP Capabilities Cloud Services Unique S/4HANA Tools and Leading HANA Appliance: Accelerators Bullion 24 | Atos – 2016 Investor Day
Slide 25: Bullion servers most scalable solution for SAP HANA
Bullion servers are the most scalable solution for SAP HANA HANA certified 25 | Atos – 2016 Investor Day
Slide 26: We enable our customer visions through SAP HANA solutions
We enable our customer visions through SAP HANA solutions E2E solution providing the environment in which Siemens will innovate its business “Our SAP HANA project is an essential enabler for the new Siemens business vision, Atos is perfectly positioned to help us” Norbert Kleinjohann CIO, Siemens Ab
Slide 27: Conclusion: Why are clients selecting Atos
Conclusion: Why are clients selecting Atos Atos, reliable Optimize your IT Simplify and partner: Costs: Atos Pay as you use: massify client IT: 32 years combines flexible pricing end-to-end SAP experience with services for both model phasing HANA offering SAP classical SAP customer activity From Con
Slide 28: Atos Digital Workplace
Atos Digital Workplace Eric Grall, Head of Managed Services Peter Pluim, COO Managed Services
Slide 29: Digital Workplace services
Digital Workplace services Atos – recognized as a global Tier 1 leader €1.7bn Revenue in 2016 Leveraging Mostly classic workplace Unify acquisition Potential market growth from Digital and Physical 2016 to 2019 ~5% combined (€100bn p.a. market) Atos see this as an ongoing area of significant growth
Slide 30: The new Digital Workplace
The new Digital Workplace Employee experience and productivity is key people places devices acting as One 30 | Atos – 2016 Investor Day
Slide 31: Business requirements of the enterprise user
Business requirements of the enterprise user Consumerization is redefining the way we work Business Drivers Atos Solutions ▶ Productivity of employees ▶ Help & Interaction Center Automation | Shift left | Analytics | Omni-channel ▶ Explosion of mobile apps Outcome based | Cognitive ▶ The consumer ex
Slide 32: Atos end-to-end Digital Workplace services
Atos end-to-end Digital Workplace services Mobilizing the strengths of all Atos divisions Atos divisions Consultative design | user profiling Consulting & Systems Integration Connected Consulting – Smart Mobility – Microsoft Solutions agile | proactive Big Data & Security Security Services Unify Man
Slide 33: Transformed End User Support Experience
Transformed End User Support Experience ‘Shift left’ approach leverages automation, analytics & cognitive services ‘Consumer like’ self service increases usage >50 % Traditional volume reduction over 3 years Atos Virtual Assistant (AVA) leveraging cognitive capability Digital labor & automation fast
Slide 34: We deliver Digital Workplace services via an integrated team
We deliver Digital Workplace services via an integrated team Delivering innovation with key partners Atos partnerships ecosystem Deliver Best Solution Improve Quality Improve innovation Solve issues faster 34 | Atos – 2016 Investor Day
Slide 35: Our growing success with Digital Workplace
Our growing success with Digital Workplace Helping clients to adopt innovation and move to digital It´s all about people – places – platforms ▶ Mobile App ‘OneContact’ and ‘OneSource’ – working faster, less downtime ▶ Analytics – deployment of ClickFox – fixing things before people know there is an
Slide 36: Digital Workplace growth plan
Atos Digital Workplace – growth in a transforming market 3 years plan – total revenue rises from €1.7bn to €2bn Leverage investments in €1.3bn 1 evolution of our portfolio, e.g. use of analytics Digital Workplace €0.2bn Digital Workplace revenue Revenue €1.5bn Leverage the overall Atos 2 portfolio i
Slide 37: Why clients are choosing Atos as their Digital Workplace partner
Why clients are choosing Atos as their Digital Workplace partner Significant Managing an Proven global investment in Atos ranked as ecosystem of capability innovation & most visionary service continues to ServiceNow player by partners evolve Analysts 37 | Atos – 2016 Investor Day
Slide 38: Atos Codex
Atos Codex Philippe Vannier Chief Technology Officer
Slide 39: The World is changing to networks of capabilities and data driven business
The World is changing from single, systems and organizations to networks of capabilities and data driven business Robotics & Cognitive Insight Systems Provide cognitive Big Data Predict & adapt intelligence BI Analyze in real time Track behaviors IA & prescriptive performance Prescriptive analysis a
Slide 40: Atos Codex – Cognitive Decision eXecution
Atos Codex – Cognitive Decision eXecution = (business analytics + machine learning & intelligence) x computing power Robotics & Cognitive Insight Systems Provide cognitive Big Data Predict & adapt intelligence BI Analyze in real time Track behaviors IA & prescriptive performance Prescriptive analysi
Slide 41: Atos Codex – Cognitive Decision eXecution
Atos Codex – Cognitive Decision eXecution Atos Codex is a suite of business-driven analytics and IOT solutions and services. It transforms data into actionable business insight using cognitive capabilities. Atos Codex Atos Codex for Retail for Telco Atos Codex Atos Codex for Manufacturing for Media
Slide 42: Pioneering co-innovation programs with customers
Atos Codex – Pioneering co-innovation programs with customers is core to our research strategy Atos R&D totals yearly €300 million ;15 R&D centers in 9 countries; 120+ new patents filed each year; 7 strategic programs including a major one on Next generation analytics Algorithmic Platforms Exascale
Slide 43: Atos Codex – high-level view of our complete solution
Atos Codex – high-level view of our complete solution Atos Codex Atos Codex Atos Codex Analytics connectors ▶ Analytics components ▶ Analytics use cases Atos Codex Platform ▶ Telco connectors ▶ Pre-developed vertical ▶ Appliances ▶ Smart metering algorithms ▶ Security Infrastructure ▶ Smartgrid ▶ Vi
Slide 44: Supporting our customer's journey to data centric business
Atos Codex – supporting our customer’s journey to data centric business 1. Methodology & Data Science 2. Customer design labs Accelerators, templated solutions and Agile analytics consulting fast incubation services to develop at and Proof-of-Value start-up speed sprints to transform data into profi
Slide 45: An end-to-end offering
Our end-to-end Atos Codex capabilities help our customers be one step ahead Integrators ISVs IoT Our difference: Expertise ▶ Open innovation: we collect the world’s An end-to-end offering Consulting intelligence and make it work for our clients Agile Labs ▶ Made to measure: we help our clients Indus
Slide 46: Atos Codex: Innovator in data driven business
Atos Codex Innovator in data driven business Ready to deploy, technology leading 4.000+ analytics platform Codex experts with enhanced multi cloud capabilities Named Innovator Industry leading HPC, in Analytics by HPDA computing leading industrial 100+ Global player analysts Codex analytics c. €500
Slide 47: Atos Codex growth plan
Atos Codex growth 3 years plan Analytics and IoT are at the 1 heart of the Atos vision and €1bn strategy Comprehensive end-to-end offering from consulting and 2 Labs through to platform and revenue €500m appliances and IoT Strong innovation partner- ships in business analytics, 3 Exascale computing
Slide 48: Conclusion: Why are clients selecting Atos
Conclusion: Why are clients selecting Atos Strong vertical Advanced expertise Strategic key Continuous Analytics and and unique partner joint innovation IoT Platform end-2-end ecosystem with industry Leading HPC methodology leading and HDPA partners systems 48 | Atos – 2016 Investor Day
Slide 49: Fueling growth in North America
Fueling growth in North America Michel-Alain Proch - Group SEVP Chad Harris - President North America
Slide 50: The new Atos North America has been rapidly growing
The new Atos North America has been rapidly growing • LEADER in Forrester Wave Workplace Services • LEADER in Gartner MQ DCO Powering Progress: • Improved scale & portfolio • Deepened vertical expertise x4 • Increased market recognition • Awarded for Employee Engagement NPS* Organic ITO 51% new Logo
Slide 51: The North American market has become an as-a-service-economy
The North American market has become an “as-a-service-economy” Extracting business value from fragmented legacy platforms and new digital systems to rapidly deliver business outcomes What keeps digital customer North American Atos Canopy experience CIO/CDOs Orchestrated Atos Digital awake at night ?
Slide 52: North American go-to-market strategy is Atos Digital Transformation Factory
North American go-to-market strategy is Atos Digital Transformation Factory Secured by Atos Manufacturing, Retail & Transportations Atos Codex Atos Digital Workplace Healthcare Services & Products Unified Omni Channel Mobile Communications Public & Healthcare Healthcare SAP HANA by Atos Application
Slide 53: North American go-to-market strategy is Atos Digital Transformation Factory
North American go-to-market strategy is Atos Digital Transformation Factory Secured by Atos Manufacturing, Retail & Transportations Atos Codex Atos Digital Workplace Healthcare Services & Products Unified Omni Channel Mobile Communications Public & Healthcare Healthcare SAP HANA by Atos Application
Slide 54: North American go-to-market strategy is Atos Digital Transformation Factory
North American go-to-market strategy is Atos Digital Transformation Factory Secured by Atos Manufacturing, Retail & Transportations Atos Codex Atos Digital Workplace Healthcare Services & Products Unified Omni Channel Mobile Communications Public & Healthcare Healthcare SAP HANA by Atos Application
Slide 55: North American go-to-market strategy is Atos Digital Transformation Factory
North American go-to-market strategy is Atos Digital Transformation Factory Secured by Atos Manufacturing, Retail & Transportations Atos Codex Atos Digital Workplace Healthcare Services & Products Unified Omni Channel Mobile Communications Public & Healthcare Healthcare SAP HANA by Atos Application
Slide 56: North American go-to-market strategy is Atos Digital Transformation Factory
North American go-to-market strategy is Atos Digital Transformation Factory Secured by Atos Manufacturing, Retail & Transportations Atos Codex Atos Digital Workplace Healthcare Services & Products Unified Omni Channel Mobile Communications Public & Healthcare Healthcare SAP HANA by Atos Application
Slide 57: North American go-to-market strategy is Atos Digital Transformation Factory
North American go-to-market strategy is Atos Digital Transformation Factory Secured by Atos Manufacturing, Retail & Transportations Atos Codex Atos Digital Workplace Healthcare Services & Products Unified Omni Channel Mobile Communications Public & Healthcare Healthcare SAP HANA by Atos Application
Slide 58: North American go-to-market strategy is Atos Digital Transformation Factory
North American go-to-market strategy is Atos Digital Transformation Factory Secured by Atos Manufacturing, Retail & Transportations Atos Codex Atos Digital Workplace Healthcare Services & Products Unified Omni Channel Mobile Communications Public & Healthcare Healthcare SAP HANA by Atos Application
Slide 59: North American go-to-market strategy is Atos Digital Transformation Factory
North American go-to-market strategy is Atos Digital Transformation Factory Secured by Atos Manufacturing, Retail & Transportations Atos Codex Atos Digital Workplace Healthcare Services & Products Unified Omni Channel Mobile Communications Public & Healthcare Healthcare SAP HANA by Atos Application
Slide 60: North American go-to-market strategy is Atos Digital Transformation Factory
North American go-to-market strategy is Atos Digital Transformation Factory Secured by Atos Manufacturing, Retail & Transportations Atos Codex Atos Digital Workplace Healthcare Services & Products Unified Omni Channel Mobile Communications Public & Healthcare Healthcare SAP HANA by Atos Application
Slide 61: The North American Healthcare practice now delivering US$0.5B of revenue
The North American Healthcare practice now delivering US$ 0.5B of revenue Healthcare, Strengthened delivery Healthcare Life science Digital & Pharma Solutions Cutting-edge Serving technology of >120 customers differentiated offers in all segments in HC Healthcare Digital Solutions Integrated solutio
Slide 62: Atos Digital Transformation Factory growth accelerators
Atos Digital Transformation Factory growth accelerators Technology partners Business partners Embed best-of-breed technologies in Embed our existing offerings to enrich Atos’ solution architectures BP solutions From Technology to Business Partners, Co-innovation programs with joint go- via j
Slide 63: Key takeaways: Atos accelerating in North America
Key takeaways: Atos accelerating in North America 1 Continuing to serve as a first mover/adopter for Atos Bringing together an orchestrated ecosystem of world class 2 partners to deliver business outcomes Gaining market share and expanding our portfolio at existing 3 customers Cross selling Consulti
Slide 64: Actions for competitiveness
Actions for competitiveness Charles Dehelly, Group SEVP
Slide 65: TOP: our DNA: focus on continuous improvement
TOP: our DNA: focus on continuous improvement “Tier One Program” Total Operational Performance Turn around program “The right to be the Leader” i.e. more growth, more margin, more attractive to talents than other.” TOP2 to turn around and integrate SIS Tier one Company: “The right to become a Qualit
Slide 66: Customer Satisfaction – A growth driver
Customer Satisfaction – A growth driver. 2013–2019 Customer satisfaction is driving growth! Net Promoter Score Promotors clients are growing 5-10%/year! Organic Growth 66 | Atos – 2016 Investor Day
Slide 67: Sustaining a Net Promoter Score above 50%
Customer Satisfaction – Sustaining a “Net Promoter Score” above 50% and enlarging Client coverage 9% 10% 8% 20% 15% 25% 29% 32% 30% Sustaining a NPS 30% 42% above 50% 46% Detractors 54% 48% 51% 50% Passives 53% Promoters Extend Client base 62% 59% 60% NPS 34% 29% from 50% to 80% 26% 14% 44% of Ext.
Slide 68: Operating margin evolution 2016–2019
Operating margin evolution 2016–2019 A fully secured c.200 bps improvement Volumes & business mix 10.5% Execution to 9.2% risk 11.0% to Pro forma Other TOP actions 9.5% & pensions Workforce Application management Management Salary industria- lization Automation increase Price concession Procure- men
Slide 69: TOP
TOP Agnès Noël Diallo Group Chief Lean officer and TOP Programs
Slide 70: Operating margin evolution 2016–2019
Operating margin evolution 2016–2019 A fully secured c.200 bps improvement 9.2% to Pro forma Other TOP actions 9.5% & pensions Workforce Application management Management Salary industria- lization Automation increase Price concession Procure- ment 2016e 70 | Atos – 2016 Investor Day
Slide 71: Zoom on other TOP Programs 2016–2019
Zoom on other TOP Programs 2016–2019 IT Optimi- zation G&A (HR / Finance outsourcing) Productivity / Lean End to End Real Estate Real Productivity and G&A IT Optimi- Total other Estate Lean zation TOP End to End programs 71 | Atos – 2016 Investor Day
Slide 72: Operating margin evolution 2016–2019
Operating margin evolution 2016–2019 A fully secured c.200 bps improvement Volumes & business mix 10.5% Execution to 9.2% risk 11.0% to Pro forma Other TOP actions 9.5% & pensions Workforce Application management Management Salary industria- lization Automation increase Price concession Procure- men
Slide 73: Supply Base Value proposition
Supply Base Value proposition Enguerrand de Pontevès, Chief Procurement Officer
Slide 74: 2013/2016 Achievements
2013/2016 Achievements © Atos - Confidential
Slide 75: Recap – Atos Value Proposition for preferred partners 2013/2016
Recap – Atos Value Proposition for preferred partners 2013/2016 Supplier Day in Bezons – September 18, 2013 Cumulated Spend €m 100% 4 500 100% 4 000 82% 90 3 500 72% 80% 660 62% 70 3 000 380 52% 60% 2 500 380 380 50 2 000 40% 1 500 30 1 000 2 000 20% 500 10 0 0% 100 suppliers +100 suppliers +200 sup
Slide 76: Recap – Atos Value Proposition for preferred partners 2013/2016
Recap – Atos Value Proposition for preferred partners 2013/2016 Supplier Day in Bezons – September 18, 2013 Long-term relationship Savings forecast 2010/2016, in €m 3 years contracts 202 202 184 186 185 High revenue Growth 15% to 50% growth revenue 90 77 Access to new markets 52 countries 2010 2011
Slide 77: Where are we now – 2016 Achievements
Where are we now – 2016 Achievements 300 TOP 200 suppliers: ▶ Total Revenue from €2.4bn to €3.8bn 250 38 M€ 19 M€ ▶ Average growth from €11.9m per 21 M€ 29 M€ 15 M€ supplier to €19m 200 ▶ 22% above expectations (59% growth) 150 Partnership benefits 215 M€ 215 M€ 215 M€ 100 ▶ 80% of the spend with 56
Slide 78: Procurement Value Proposition 2017–2019
2017–2019 Procurement Value Proposition © Atos - Confidential
Slide 79: Atos 2016 Pareto – €5.6bn
Atos 2016 Pareto – €5.6bn A huge potential ▶ 80% of the spend with 568 Manufacturing Software suppliers (vs. 800 in 2013) 6% ▶ 80% of the spend with 17% 5 categories Indirects 24% Core Focus 14% Hardware 80% 20% Effort Results 10% Telecom 29% Subcontracting 79 | Atos – 2016 Investor Day
Slide 80: Atos Value Proposition for preferred partners 2016/2019
Atos Value Proposition for preferred partners 2016/2019 Supplier Day in Bezons – November 16, 2016 Cumulated Spend 100% 100% 6,500 < 450 suppliers 90% 90 6,000 80% 80% 5,500 €560m 70% 70 5,000 €560m 60% 4,500 4,000 €680m 50 3,500 40% 3,000 30 2,500 20% 2,000 €3,920m 10 1,500 0% 1,000 500 0 250 suppl
Slide 81: Value Proposition 2017/2019
Value Proposition 2017/2019 Supplier Day in Bezons – November 16, 2016 Capitalize on Partnership 3 to 5 years contracts extensions ▶ €280m/y recurring savings + Potential synergies following Further Concentration acquisitions 80% of the spend <450 suppliers ▶ Manage and drive latest Keep Things Simp
Slide 82: Managed Services
Managed Services Eric Grall, Head of Managed Services Peter Pluim, COO Managed Services
Slide 83: Managed Services – a quick overview
Managed Services – a quick overview 2016 revenue projected: ~€6.6bn – 2016 operating margin projected: ~10% WE ARE Atos Backbone WE HAVE WE BRING recognized as a Tier 1 a strong portfolio of Tier-1 industrial strength provider in delivery of offerings, leading in for quality of delivery, secure ITO
Slide 84: Managed Services: key figures 2017–2019
Managed Services: key figures 2017–2019 Revenue Operating margin +0% to +1% CAGR +50bps to +100bps CSAT NPS Cloud CAGR* TTS CAGR >8 >45% >+25% >+20% *As part of c.+35% Group Cloud CAGR 84 | Atos – 2016 Investor Day
Slide 85: Top line Managed Services initiatives
Top line Managed Services initiatives 2016–2019 Grow Grow Grow Introduce Cloud related Transformation Digital Workplace NEW Codex services projects services by Services IaaS & PaaS Workplace multiplicity of devices IoT infrastructures public & private cloud transformation more mobile app
Slide 86: Driving Digital Transformation and continuing operational excellence
Driving Digital Transformation and continuing operational excellence Data Center Cognitive Data IoT Cloud Digital Service Transformation Data Analytics Infrastructure Services Workplace Integration Services Analytics Platform Services Cloud Bi-modal Digital Design Hybrid-cloud connected strategy pla
Slide 87: From classic to digital
From classic to digital Managed Services revenue mix evolution MS w/o BPO €6bn 9% 11% 13% 15% TTS €5bn 15% 23% €4bn 34% 45% Digital €3bn 76% €2bn 66% 53% Classic 1€bn 40% 2016 2017 2018 2019 Transformation projects Digital Services Classic ITO Services 87 | Atos – 2016 Investor Day
Slide 88: Bottom line Managed Services initiatives
Bottom line Managed Services initiatives 2016–2019 Deploy autonomics Retire legacy Transform and Deliver traditional and cognitive tooling and upskill workforce productivity automation standardize to create workforce savings (Cloud, Legacy DC, DWP) installed base of the future (3rd party labor, lean
Slide 89: Evolution of automation
Evolution of automation Orchestration Autonomics Cognitive Orchestrated Robotic Process Intelligent Cognitive True Artificial Automation Automation Automation Automation Intelligence Infrastructure, Application, and Security Structured Unstructured Patterned Unstructured No Pattern 1st Generation 2n
Slide 90: What Managed Services has achieved so far
What Managed Services has achieved so far Structured 1st Generation Automation ▶ LAN, Voice and Firewall Number of servers per FTE standard change automation ▶ Server, Databases and SAP standard change automation ▶ Autonomous security H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 vulnerability ide
Slide 91: What Atos MS is working on right now
What Atos MS is working on right now Unstructured Pattern 2nd Generation Automation ▶ Cloud capacity, performance management between private Comprehensive IP Soft and public cloud deployment ▶ Enhanced catalog automated standard service requests ▶ Automated capacity management Initial deployment of
Slide 92: What's next
What’s next Unstructured No Pattern 3rd Generation Automation ▶ Production pilots cognitive automation tools to further automation efficiency rate ▶ Intelligent operations to further increase operational efficiencies and reliability ▶ Dynamic threshold management ▶ Knowledge item driven non standard
Slide 93: Skills & Experience evolution 2015–2020
Continuously creating the workforce of the future Adapting in line with business needs and impact of automation Main Workforce Dynamics Global Managed Services certification evolution 2014–2016 Skills & Experience evolution 2015–2020 Upskilling and re-deployment Demands of digital Manage attrition R
Slide 94: Managed Services HR Strategy
Managed Services HR Strategy Manage resources in relation to automation and productivity natural attrition FTE rationalization release (within 1% of ER) contractor (on- and offshore) replacement redeployment into digital (through upskilling) 94 | Atos – 2016 Investor Day
Slide 95: Managed Services Key takeaways
Managed Services Key takeaways ▶ Global leading Tier-1 provider in delivery of bi-modal ITO and Digital Services ▶ Automation programs will continue to deliver benefits, securing price competitiveness ▶ Continuous focus on customer satisfaction improvement ▶ Expanding in Cloud/Digital Workplace and
Slide 96: Consulting & Systems Integration
Consulting & Systems Integration Ursula Morgenstern – Head of Consulting & Systems Integration Sean Narayanan – COO & Head of Global Delivery C&SI
Slide 97: Atos C&SI today a major global player in the market
Atos C&SI today a major global player in the market Application Services 32,000 2.2+ million users supported 50% of revenue from experts 60 clients under global Transformation 2,000+ projects per year governance Consulting 8 Center of Excellence, 2,000 industry & process 2 Global, and 33 Regional De
Slide 98: Digital Transformation is impacting market dynamics in C&SI
Digital Transformation is impacting the market dynamics in Consulting and Systems Integration 2010-2020+ New Digital / Hybrid Digital Transformation 10% CAGR 60% SaaS Implementation 40% CAGR 3% CAGR Application Services 40% Cost driven share of market Sources: Gartner, Pierre Audoin Consultants, Eve
Slide 99: Ambition to grow +3% to +4% CAGR with margin improvement
Our ambition is to grow by +3% to +4% CAGR with a 200 to 250 bps margin improvement over 2017-2019 India Led Application 1 Services c. €3.2bn 2 Large Local accounts +3% to +4% CAGR and Public sector Revenue Local for Local 3 Services 1 Business Mix c. 7% +200bps Operating 2 Productivity to margin 3
Slide 100: Application Services and Digital Transformation have unique success criteria
Application Services and Digital Transformation have unique success criteria Application Services Digital Transformation Scale, Industrial & Cost Local, Agile & Digital Global Accounts & Global Deals Client Proximity A global and cost competitive Investment in digital and emerging delivery technolog
Slide 101: Key changes to operating model allowing margin uplift
Key changes to operating model that will allow for margin uplift especially in global accounts From … … to Highly distributed delivery & “criss-cross” One account and one team with transparent 1 of accountabilities for key accounts accountability for end to end performance Account level “local optim
Slide 102: Accounts segmented by size and geographical reach
We have segmented our accounts by size and geographical reach allowing for targeted margin improvement programs Large private Small scale Public Local for Local sector accounts accounts Services accounts Revenue 2016 c. €1.1bn c. €1.4bn c.€0.7bn 2016-2019 OM improvement (€m) [70–90] On 2016 revenue
Slide 103: A Simplified two in a box account governance
A Simplified ‘two in a box’ account governance for India led accounts Current Future Global Client Global Support Executive Global Client Global Client Functions Partner Executive (shared) Finance ▶ Finance CTO Controller Client ▶ Contract mgmt SI Global ▶ Operations support Customer Delivery Exec C
Slide 104: Changes tested and proven – margin uplift for pilot accounts
The changes have been tested and proven- Margin uplift of 20+% implemented for pilot accounts Project profit margin improvement schedule Pilot Projects Key Issues Identified % of revenue Large Automobile Manufacturer 1 Offshoring 5 ▶ 235 FTEs; 50% 5 offshore leverage 2 Pyramid correction 21 ▶ 5.5 ye
Slide 105: People Equation is based on effective redeployment of our staff
People Equation is based on the effective redeployment of our staff Onshore staff freed-up by Industrialization program will be re-assigned: 40% will go to Digital 60% will be Transfor- absorbed by mation Attrition services Restructuring will decrease under the 1% of External revenue 105 | Atos – 20
Slide 106: Conclusion: Why are clients selecting Atos
Conclusion: Why are clients selecting Atos Modernization Freed up staff in Margin will boost our Digital geographies will improvement in competitiveness Transformation be redeployed India led Private leading to business will be for local and Sector account application driven through digital services
Slide 107: Big Data & Cybersecurity
Big Data & Cybersecurity Philippe Vannier CTO & Head of Big Data & Cybersecurity Pierre Barnabé COO Big Data & Cybersecurity
Slide 108: Atos Big Data & Cybersecurity ID Card
Atos Big Data & Cybersecurity ID Card €660m+ Holding Atos #1 technologies & European HPC player, Revenue products brand #5 worldwide c. 16% #1 Operating margin European security player, #10 worldwide 3,700 Big Data Recognized & Security high-level high-end player Own products sold in in Defense expe
Slide 109: Atos Big Data & Cybersecurity at a glance
Atos Big Data & Cybersecurity at a glance 3 activities but ONE value proposition: Intelligence for digital transformation From Insight to Action Big Data & HPC: Unleash Cyber Security: Ensure MCS Systems: Design & build the business value of data cyber Trust & Compliance mission-critical systems Big
Slide 110: Big Data Global Business Line
Big Data Global Business Line Unleash the business value of data Big data solutions & services IT modernization (liber) Legacy servers (GCOS) Bullion servers & appliances High performance computing 110 | Atos – 2016 Investor Day
Slide 111: Cyber Security Global Business Line
Cyber Security Global Business Line Ensure cyber Trust & Compliance Security Advisory & Integration Managed Security Services Identity Governance & Management software IoT security solutions Data Security products 111 | Atos – 2016 Investor Day
Slide 112: Mission Critical Systems Global Business Line
Mission Critical Systems Global Business Line Design & build mission-critical solutions Intelligence & reconnaissance Command & control Homeland & border protection Emergency mgt. & secure coms. Industrial solutions 112 | Atos – 2016 Investor Day
Slide 113: Big Data and Security segments
Big Data and Security segments Key to meet the data deluge 75 billions of connected smart objects Explosion Explosion 44 of Complexity of risks Zettabytes in 2020 x10 4 2013 1 ZETTABYTE = 1,000,000,000,000,000,000,000 bytes 113 | Atos – 2016 Investor Day
Slide 114: Atos Big Data & Security positioned to meet this challenge
Atos Big Data & Security SL is ideally positioned to meet this challenge for value and growth Leading in Innovation for tomorrow ▶ Next generation quantum computing, quantum cryptography … Leading in performance today 44 ▶ #1 Most efficient supercomputer worldwide Zettabytes in 2020 ▶ #1 Fastest x86
Slide 115: We support and leverage Atos Digital Transformation Factory
We support and leverage Atos Digital Transformation Factory Trusted Intelligence SYNERGIES Intelligent Trust Connecting collaborators Client Security Leading intelligent workplaces & customers Workspace Security Transforming data into Defense & HLS security #1 in performance business outcomes I4.0 &
Slide 116: Atos Big Data & Cybersecurity growth
Atos Big Data & Cybersecurity growth 3-year plan 1 Value: Target software, analytics, appliances/platforms high value €1bn segments revenue € 660m+ 2 Efficiency: BDS opt-in in all Big Deals, c. 16% revenue Sales SWAT teams, Bid Factory operating c. 16% Footprint: margin 3 Replicate local success to
Slide 117: Our mission in a nutshell
Our mission in a nutshell We deliver secure intelligence for digital transformation 117 | Atos – 2016 Investor Day
Slide 118: People and CSR: Strategy 2020
People and CSR: Strategy 2020 Gilles Grapinet, Atos SEVP & Worldline CEO
Slide 119: Atos people strategy 2020
Atos people strategy 2020 Building the best employee digital experience to power Atos ambition Driving Business outcomes Digital Growth Competitiveness Cross Business knowledge Quality & performance Development & Expertise Engagement & passion Agile professional itineraries One digital culture Digit
Slide 120: Winning the race for Digital talents
Winning the race for Digital talents Major people challenges towards 2020 Best graduates, talents, Competition experts for digital Thousands of Millennials talents to attract /year everywhere 50,000+ digital competences to build (x2) 10% top talents/ experts to grow Gender Diversity Gap reduction (+
Slide 121: HR 2020: Pursue building a Tier one people organization
HR 2020 : Pursue building a Tier one people organization Best employee experience @ work Demand & Supply Talent & Expert Skills development Career path Wellbeing@Work (Attract) experience & performance (Transform) (Enhance) (Onboard) (Grow) Digital employer Attractive Digital skill Agile professiona
Slide 122: HR 2020 will strongly support the new Atos 3Y Plan
HR 2020 will strongly support the new Atos 3Y Plan 2009 <3% x2 Top graduates 2013 5% x2 10% hiring from 2016 10% x2,5 Business digital 2009 5,500 x100 Top 100 Universities 2020 25% transformation 2013 540,000 x2 2016 1,200,000 2009 7 entities x2 1,200,000 digital x2 Employee 2013 13 entities trainin
Slide 123: HR 2020: Acknowledging new societal trends towards 2020
HR 2020 : Acknowledging the new societal trends towards 2020 Millenials and Digital disruption More Independant workforce 50% of 18-24 years old in In 2020, non-permanent workers wil France would like to create represent 40% of the US workforce1a) their own company1b) Digital experience People engag
Slide 124: Dual people engagement model to power Atos 2020
Dual people engagement model to power Atos 2020 Answering digital natives entrepreneurship & work aspirations Tier One people 1 Organization 2 AtosOpen Digital expertise platform Status Employed Self employed 2 engines Organization Matrix to answer Collaborative Command the new Hierarchy Autonomy &
Slide 125: Atos Digital Expertise Open Platform
Atos Digital Expertise Open Platform, a new business platform for a digital generation Open gateway to Atos Atos Digital partners permanent employment Labeled for rated Sales, opportunities Project & domain Experts Non-exclusive and Access to Atos Digital Atos Digital multi-commercial university Exp
Slide 126: Atos CSR achievements 2013–2016
Atos CSR achievements 2013–2016 Best in class external recognition for each of our 4 priorities GRI best-in class since 2011 DJSI # 1 IT AFEP-Medef sector Code 126 | Atos – 2016 Investor Day
Slide 127: Atos corporate responsibility ambition 2020
Atos corporate responsibility ambition 2020 Your digital partner for a sustainable journey Increase the Atos GPTW Trust Index® reflecting employees satisfaction to Top 10% Industry benchmark Net Promoter Score above 50% for our TOP Clients 70% of spend assessed by EcoVadis Reduce by 5% to 15
Slide 128: Thanks
Thanks Atos, the Atos logo, Atos Codex, Atos Consulting, Atos Worldgrid, Worldline, BlueKiwi, Bull, Canopy the Open Cloud Company, Unify, Yunano, Zero Email, Zero Email Certified and The Zero Email Company are registered trademarks of the Atos group. April 2016. © 2016 Atos. Confidential information