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Atos — H1 2011 Earnings Presentation
48 slides from Atos's earnings presentation, Jul 27, 2011
Slide 1: H1 2011 Results presentation
H1 2011 Results presentation 27 – 07 - 2011 1- Your business technologists. | 27-07-2011 Powering | H1 2011 Results progress presentation
Slide 2: Disclaimers
Disclaimers ▶ The half-year condensed financial statements were subject to a limited review by the statutory auditors. ▶ This presentation contains further forward-looking statements that involve risks and uncertainties concerning the Group's expected growth and profitability in the future. Actual e
Slide 3: Agenda
Agenda 1. Introduction – H1 2011 Highlights: 2. H1 2011: Financial figures 3. The new AtoS: company profile – SIS integration and new organization – TOP² roll out – Sales strategy – Global Service Lines 4. Objectives 2011 and targets 2013 5. Conclusion and Q&A 3 | 27-07-2011 | H1 2011 Results presen
Slide 4: I. H1 2011 Highlights
I. H1 2011 Highlights 27 – 07 - 2011 4- Your business technologists. | 27-07-2011 Powering | H1 2011 Results progress presentation © Confidential
Slide 5: AtoS: a new Group
AtoS: a new Group + = 5 | 27-07-2011 | H1 2011 Results presentation
Slide 6: H1 2011 results at a glance
H1 2011 results at a glance -0,7% 6,7% 101% Revenue organic Operating margin Book to bill evolution (H1 2010: -4.6%) (H1 2010: 6.0%) (H1 2010: 114%) 100 83 -91 Net income Group Free Cash Flow Net debt (EUR m) share (EUR m) (EUR m) (H1 2010: EUR 60 m) (H1 2010: 76 m) (H1 2010: EUR -119 m) 6 | 27-07-2
Slide 7: Operating margin further improved
Operating margin further improved ▶ Third year roll-out of the TOP transformation Program ▶ Operating margin at 6.7 per cent of revenue, up +11% vs. H1 2010 ▶ 5 semesters of continued improvement 187 175 166 150 7.7% 261 to 118 7.4% 8.7% 6.8% 6.7% 6.0% 4.8% 4.6% FY 08 H1 09 H2 09 H1 10 H2 10 H1 11 H
Slide 8: Commercial Activity
Commercial Activity ▶ H1 2011 order entry at EUR 2,497 Million Consulting + Systems Managed Services + Book to Bill Total Group Integration HTTS + Medical BPO H1 2011 101% 103% 99% H1 2010 114% 121% 109% Book to bill stable at 101% in Q1 and in Q2 2011 France at 110% and the Netherlands at 106% in H
Slide 9: Main wins over the second quarter 2011
Main wins over the second quarter 2011 Managed Services Systems Integration HTTS ► ISS (UK) ► CNT2 (AWL) ► Achmea (NL) - Renewal ► Auchan (FR) ► London Grid Ltd (UK) ► PPR (FR) - Renewal ► Min of Agriculture (FR) - ► Axa (FR) - Renewal ► L’Oreal (FR) Renewal ► Iberia (SPA) - Renewal ► Highways Agenc
Slide 10: II. Financial figures
II. Financial figures 27 – 07 - 2011 10- Your business technologists. | 27-07-2011 Powering | H1 2011 Results progress presentation © Confidential
Slide 11: Revenue and operating margin constant exchange rates reconciliation
Revenue and operating margin constant exchange rates reconciliation ▶ H1 2011 Revenue at EUR 2,476 million with an organic growth at -0.7% ▶ Operating margin at EUR 166 million, representing an operating margin rate of 6.7%, up by +70 basis points In EUR Million H1 2011 H1 2010 % growth Revenue 2,47
Slide 12: H1 2011 Performance by Services Line
H1 2011 Performance by Services Line ▶ Growth in recurring businesses (MS, HTTS, Medical BPO) ▶ Operating margin increased in most of the Services Lines Revenue Operating Margin Operating Margin % In EUR Million H1 2011 H1 2010 % growth H1 2011 H1 2010 H1 2011 H1 2010 Managed Services 906 901 +0.6%
Slide 13: Managed Services
Managed Services Other ▶ Revenue breakdown by GBU: H1 2011 GCEMA countries UK 13.1% 12.7% 22.3% Benelux France 27.7% 24.2% ▶ Revenue, operating margin and headcount: In EUR Million H1 2011 H1 2010 % growth Revenue 906 901 +0.6% Operating margin 62.9 62.7 +0.3% Operating margin rate 6.9% 7.0% -2 bp H
Slide 14: Systems Integration
Systems Integration ▶ Revenue breakdown by GBU: H1 2011 GCEMA Other Spain 13.6% 12.9% countries UK 8.6% 11.7% Benelux 18.1% France 35.1% ▶ Revenue, operating margin and headcount: In EUR Million H1 2011 H1 2010 % growth Revenue 874 897 -2.6% Operating margin 42.2 31.7 +33.3% Operating margin rate 4.
Slide 15: HTTS
HTTS ▶ Revenue breakdown by GBU: H1 2011 Spain Asia AWL 2.4% 3.3% AWL Belgium Germany 31.2% Other Total countries 9.0% Atos Worldline 3.8% = 82.9% AWL France 40.9% UK 9.4% ▶ Revenue, operating margin and headcount: In EUR Million H1 2011 H1 2010 % growth Revenue 524 508 +3.3% Operating margin 80.2 8
Slide 16: Consulting
Consulting ▶ Revenue breakdown by GBU: H1 2011 UK Asia Spain 25.7% 0.3% 14.0% Benelux 31.2% France 28.8% ▶ Revenue, operating margin and headcount: In EUR Million H1 2011 H1 2010 % growth Revenue 91 109 -16.9% Operating margin 2.6 -2.2 Operating margin rate 2.8% -2.0% Headcount at closing (direct st
Slide 17: Medical BPO
Medical BPO ▶ Revenue breakdown by GBU: H1 2011 UK 100% ▶ Revenue, operating margin and headcount: In EUR Million H1 2011 H1 2010 % growth Revenue 81 80 +0.9% Operating margin 8.6 8.5 +1.5% Operating margin rate 10.6% 10.6% -5 bp Headcount at closing (direct staff) 2,062 1,900 +8.5% 17 | 27-07-2011
Slide 18: H1 2011 Performance by GBU
H1 2011 Performance by GBU ▶ Revenue evolution driven by AtoS Worldline and United Kingdom ▶ Operating margin increased in most of the GBUs Revenue Operating Margin Operating Margin % In EUR Million H1 2011 H1 2010 % growth H1 2011 H1 2010 H1 2011 H1 2010 France 557 573 -2.9% 20.4 17.6 +3.7% +3.1% U
Slide 19: Headcount
Headcount ► Over the first half 2011 » Total number of Group employees was 47,826 at the end of June 2011 » Direct staffs almost flat at 43,438 at the end of June 2011. » Indirect staffs continued to decrease at 4,388 (9.2 per cent of total staff) » Hiring concerned 3,105 staff, an increase by +25 p
Slide 20: Attrition per Quarter
Attrition per Quarter 12.3% 11.2% 11.4% 10.6% 9.4% 8.3% Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 20 | 27-07-2011 | H1 2011 Results presentation
Slide 21: Statutory Income Statement
Statutory Income Statement In EUR Million H1 2011 H1 2010 Revenue 2,476 2,495 Operating Margin 166 150 % revenue 6.7% 6.0% Staff reorganisation (24) (16) Premises offices rationalisation 2 (14) Other operating income and expenses 16 (25) Operating income 160 96 % revenue 6.5% 3.8% Net financial expe
Slide 22: Earnings per share
Earnings per share In EUR Million H1 2011 H1 2010 Net income Group share 100 60 Normalised net income Group share 102 98 Average number of shares (in million) 70 69 Diluted average number of shares (in million) 77 76 Basic EPS 1.43 0.87 Diluted EPS 1.36 0.85 Normalised basic EPS 1.46 1.42 22 | 27-07
Slide 23: Cash flow Statement
Cash flow Statement In EUR Million H1 2011 H1 2010 OMDA (*) 241 240 Net capital Expenditures (72) (73) Change in working capital 52 1 Cash from Operations 220 169 Taxes paid (22) (27) Net costs of financial debt paid (9) (9) Reorganisation (35) (47) Rationalisation (20) (22) Net financial investment
Slide 24: Simplified balance sheet
Simplified balance sheet 30 June 31 Decembre 30 June In EUR Million 2011 2010 2010 Goodwill 1,578 1,610 1,556 Intangible assets 84 76 77 Tangible assets 368 396 395 Non-current financial assets 256 230 148 Net Deferred tax assets 201 223 224 Net Non-current assets 2,486 2,536 2,399 Working Capital (
Slide 25: III. The new AtoS: company profile
III. The new AtoS: company profile 27 – 07 - 2011 25- Your business technologists. | 27-07-2011 Powering | H1 2011 Results progress presentation © Confidential
Slide 26: 6 months effective integration enables Atos to be fully operational as of 1st July 2011
6 months effective integration enables Atos to be fully operational as of 1st July 2011 ▶ 24 streams have been actively preparing the new AtoS, leveraging best practices from both companies, supported by our TOP proven methodology ▶ KEY ACHIEVEMENTS – Organization down to the top 3 layers of the Gro
Slide 27: AtoS Organization Chart
AtoS Organization Chart 27 | 27-07-2011 | H1 2011 Results presentation
Slide 28: SG&A: confident in achieving the planned 1,750 restructurings from synergies
SG&A: confident in achieving the planned 1,750 restructurings from synergies – as of today, 1,125 identified over 40% total SG&A population *Activity Value Analysis: methodology deployed at Atos through TOP on G&A since 2009 Source: TOP² program 28 | 27-07-2011 | H1 2011 Results presentation
Slide 29: Purchasing and standard of living: EUR 70 million planned P&L impact
Purchasing and standard of living: confident in achieving the EUR 70 million planned P&L impact. 29 | 27-07-2011 | H1 2011 Results presentation
Slide 30: Real estate: Atos standards leading to EUR 40 million saving per year
Real estate: confident in achieving Atos standards* leading to EUR 40 million saving per year *9 square meters per FTE in Europe and NAM Source: TOP² program, Atos real estate 30 | 27-07-2011 | H1 2011 Results presentation
Slide 31: Gross margin: applying proven TOP² approach to SIS perimeter
Gross margin: applying proven TOP² approach to SIS perimeter Source: TOP² program, Atos real estate 31 | 27-07-2011 | H1 2011 Results presentation
Slide 32: Gross margin: Data center rationalization
Gross margin: Data center rationalization 1. Three regional cloud hubs EMEA/APAC/Americas offering full cloud services portfolio 2. Consolidation from 168 down to 138 DC (- (-25%) within 34 countries. 3. Over the next three years: - Utilization 20% up - Cost base 12 % down -Higher quality and green
Slide 33: Commercial effectiveness levers to build our growth platform
Commercial effectiveness levers to build our growth platform Atos’ commercial transformation plan 33 | 27-07-2011 | H1 2011 Results presentation
Slide 34: Strategic Sales Engagement: Large deals team, an engine for growth
Strategic Sales Engagement: Large deals team, an engine for growth Win more profitable Large Deals ! Major contributor to revenue growth by winning new logos Win strategic deals, e.g. to expand HTTS scope or through Siemens partnership Clear Accountability and Responsibility throughout the company t
Slide 35: Global Key Offerings to capture even more growth
Global Key Offerings to capture even more growth Electronic Payment: Processing, Internet, Mobile, Loyalty, Prepaid Grid Energy Solutions. Oil & gas, water, power, nuclear Global Manufacturing - PLM, MES Dedicated Key offerings Key Health: Health system, patient file mgt, prevention treatment by mar
Slide 36: The Global Partnership with Siemens is operational and promising
The Global Partnership with Siemens is operational and promising ▶ Work plan on track ▶ Well balanced spread of collaboration – Governance agreed and teams in opportunities identified place – 40 collaboration areas – Atos participation in 12 MDBs – With promising significant business (Market Develop
Slide 37: Four Global Service Lines serving all of our markets
Four Global Service Lines serving all of our markets FS PHT MRS E&U TMT C&TS Atos Consulting Technology Services SI SAP Software Integration & Development Package & Custom Projects Applications Management MS Workplace Solutions Infrastructure Solutions Application Operations Network & Security HTTS
Slide 38: Consulting & Technology services
Consulting & Technology services A comprehensive set of skills available to our clients Plan Design Transform Run ▶ Assessment of client ▶ Process design ▶ Program maturity ▶ Detailed management ▶ Definition of high-level functional ▶ Benefits target requirements tracking ▶ Assessment of business ca
Slide 39: HTTS and Specialized Businesses
HTTS and Specialized Businesses HTTS & SB HTTS BPO Other SB Smart Civil and Medical BPO Utilities National Services Security Payments Global activities National and Savings Atos (on Atos Investment (UK) Worldgrid Worldline base) (Reinforced by C&NS eCS SIS offerings Other BPO and activities) busines
Slide 40: Key Challenges for the Global Service Lines
Key Challenges for the Global Service Lines ► Global Delivery and Consulting Managed off-shoring ► Increase global sales & ► Integrate and ensure Services Consistent global approach capabilities Technology ► Leverage Co & TS activity ► Fast evolution to Cloud Services ≈ 46% with other services lines
Slide 41: Wellbeing@Work ambition
Wellbeing@Work ambition 7 worldwide initiatives to become a best company to work for Zero email initiative (2013 objective for internal emails) « Great Place to Work » certification: 3 countries WbW1. Working Future competing in 2011 workplace: « Atos (UK, India, Brazil) organization Campus pack » W
Slide 42: IV. Objectives 2011 and targets 2013
IV. Objectives 2011 and targets 2013 27 – 07 - 2011 42- Your business technologists. | 27-07-2011 Powering | H1 2011 Results progress presentation © Confidential
Slide 43: Objectives 2011
Objectives 2011 The following objectives relate to the year 2011 which include 12 months of AtoS and 6 months of SIS acquired on 1st July 2011 ▶ Operating margin: Further to the integration plan launched during the first half which is ahead of schedule, the Group increases its full year guidance to
Slide 44: Strategy and objectives: Significant value creation potential
Strategy and objectives: Significant value creation potential 2013 ▶ Revenue – Between EUR 9 billion and EUR10 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 of EUR 350 million to EUR 400 milli
Slide 45: V. Conclusion and Q&A
V. Conclusion and Q&A 27 – 07 - 2011 45- Your business technologists. | 27-07-2011 Powering | H1 2011 Results progress presentation © Confidential
Slide 46: Conclusion
Conclusion 05 – 07 - 2011 46- Your business technologists. | 27-07-2011 Powering | H1 2011 Results progress presentation © Confidential
Slide 47: From Questions to Answers
From Questions to Answers 05 – 07 - 2011 47- Your business technologists. | 27-07-2011 Powering | H1 2011 Results progress presentation © Confidential
Slide 48: www.atos.net
www.atos.net 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