Atos SE · EURONEXT:ATO
Atos — FY2019 Earnings Presentation
37 slides from Atos's earnings presentation, Feb 19, 2020
Slide 1: FY 2019 results
FY 2019 results February 19, 2020 © 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. 2019 highlights and objectives for 2020 2. Financial performance 3. Conclusion and Q&A 3 | February 19, 2020 | © Atos
Slide 4: 2019 highlights and objectives for 2020
2019 highlights and objectives for 2020 Elie Girard CEO
Slide 5: FY 2019 Highlights
FY 2019 Highlights Infrastructure & Data Management and North America returned to growth in H2 Successful development of Google Cloud partnership, acquisition of Maven Wave Slight growth in Business & Platform Solutions, with softness in Financial Services in North America, and a more difficult Auto
Slide 6: FY 2019 key financial figures
FY 2019 key financial figures Organic growth Operating margin rate Free cash flow +1.4% 10.3% €0.6bn vs. +0.4% in 2018 vs. 9.8% in 2018 Book to bill Normalized diluted EPS* Total headcount 106% €7.74 108,317 121% in Q4 Proposed dividend at €1.40 per share 6 | February 19, 2020 | © Atos *from continu
Slide 7: FY 2019 key extra-financial figures
FY 2019 key extra-financial figures 20.97 31% tCO2 emissions / m€ % of women within Atos revenue +3 points since 2015 reduced by -24% since 2015 Industry comparable: 29% to 32% 51,376 59% New Digital certifications Great Place To Work vs 40,316 in 2018 +9 points since 2015 leading to 177,100 end of
Slide 8: Main wins in Q4 2019
Main wins in Q4 2019 Large Audit Full stack Application & Global Managed & Consulting Digital Platform Security Dutch Ministry firm transformation services of Services Infrastructure and Water Management A North Digital European BullSequana American Digital Transformation Centre for XH2000 Railway W
Slide 9: 2019 achievements with key Alliances
2019 achievements with key Alliances Google Cloud Dell Global Global Strategic initiative Growth Partner of Member of AWS Breakthrough to accelerate Preferred the year Solution Provider Partner of the Azure S/4 Hana provider of VMware Global Year & Public Sector Unified Partner Programs adoption amo
Slide 10: Attraction, Skilling, and Mobility
Attraction, Skilling, and Mobility New Certified Digital New Digital Certifications Experts Onboarded Cost effective and +51k progressive skills +600 +500 +500 x2 +1k +transformation 2k more Google Cybersecurity Google Cybersecurity Cloud Cloud Atos Career Webpage LinkedIn Followers +3.9m Visitors +
Slide 11: CSR recognition and enhanced sustainability portfolio
CSR recognition and enhanced sustainability portfolio 2019 Industry CSR leadership 2019 Sustainability portfolio released Digital carbon footprint measurement 82/100 Consulting methodology Industry average: 39/100 Low carbon coding A Optimized coding to reduce software energy consumption Industry av
Slide 12: Further improvement in 2020
Further improvement in 2020 2020 objectives Revenue c. +2% organic growth Operating margin rate +20 bps to +40 bps vs 2019 Free cash flow c. €700m 12 | February 19, 2020 | © Atos
Slide 13: My first priority has been to meet customers & people
My first priority has been to meet customers & people Meet large customers and prospects Launch of an Industry approach Across all Industries prepared throughout 2019: SPRING Meet partners Including partners with Industry specific capabilities Reshape our portfolio of offerings Roadshows across Atos
Slide 14: Implementation of the new Industry led organization
Implementation of the new Industry led organization Financial Public Sector Manufacturing & Defense Services (MAN) (PSD) 6 & Insurance (FSI) Global Telecom, Industries Media Resources Healthcare & Technology & Services & Life Sciences (TMT) (R&S) (HLS) Northern Central Europe Europe 5 Regional Busin
Slide 15: Appointment of an adapted Top management team
Appointment of an adapted Top management team Accountabilities Group Management Committee Uwe Stelter Eric Grall Chief Financial Officer Manufacturing and Chief Operating Officer 6 Global Industries Adrian Gregory designing offerings Sophie Proust FSI and Business & Platform Solutions Chief Technolo
Slide 16: 2020 Analyst Day
2020 Analyst Day April 22, 2020 in Paris 16 | February 19, 2020 | © Atos
Slide 17: Financial performance
Financial performance Uwe Stelter Group CFO
Slide 18: FY 2019 Commercial activity dashboard
FY 2019 Commercial activity dashboard Order entry Backlog €12.2bn €21.9bn 1.9 year of revenue Book to bill Qualified Pipeline 106% €7.4bn 121% in Q4 2019 7.6 months of revenue 18 | February 19, 2020 | © Atos
Slide 19: Constant scope and exchange rates figures reconciliation
Constant scope and exchange rates figures reconciliation In € million 2019 2018 % change Statutory revenue 11,588 12,258 -5.5% Exchange rates effect 117 Revenue at constant exchange rates 11,588 12,375 -6.4% Scope effect -982 Exchange rates effect on acquired/disposed perimeters 37 Revenue at consta
Slide 20: 2019 performance by Division
2019 performance by Division ▶ Infrastructure & Data Management back to growth in H2 led by North America ▶ Slight growth in Business & Platform Solutions impacted by Healthcare and Financial Services in North America in H2, as well as by Automotive in Germany in Q4 ▶ High growth in Big Data & Cyber
Slide 21: Infrastructure & Data Management
Infrastructure & Data Management ▶ Revenue back to growth in H2 North America 15% 27% Germany ▶ Pursue transition to hybrid cloud and acceleration in Digital workplace 8% United Kingdom & Ireland ▶ Operating margin improvement from RACE and 9% Benelux & The Nordics adaptation plan in Germany 22% Fra
Slide 22: Business & Platform Solutions
Business & Platform Solutions ▶ Slight growth with some softness in Financial services in North America and Automotive in North America Germany in H2 24% 22% France ▶ Growth led by Digital transformation and Germany automation projects in Manufacturing & Retail 9% Benelux & The Nordics ▶ Cost synerg
Slide 23: Syntel Revenue Synergies
Syntel Revenue Synergies Pipeline remains solid and synergies to accelerate in 2020 Synergy categories 2019 status Revenue Synergies Leverage Syntel portfolio into Atos’ Smaller projects in ▪ 28 deals closed in H2 1 Clients into North almost all targeted Atos America and Europe customers ▪ Total qua
Slide 24: Syntel delivery and Customer Satisfaction
Syntel delivery and Customer Satisfaction Transformation is delivering cost synergies and better customer service Syntel delivery and Processes and Quality cost synergies “Customer for Life” ▶ Improved CSAT outcomes over H1 2019 – ▶ Legacy Syntel scope kept high level of operating Higher ratings on
Slide 25: Big Data & Cybersecurity
Big Data & Cybersecurity ▶ Acceleration of organic revenue growth France led by High Performance Computing and 21% Germany Cybersecurity services 40% North America ▶ Further investments to extend the 6% business both in terms of industries and Benelux & The Nordics geographies 8% United Kingdom & Ir
Slide 26: 2019 performance by Global Business Unit
2019 performance by Global Business Unit ▶ Positive growth in all Global Business Units except North America, which is back to growth in H2 ▶ Operating margin improvement in most geographies Revenue Operating margin Operating m argin % Organic 2019 2018* 2019 2018* 2019 2018* In € million evolution
Slide 27: RACE set to accelerate in 2020: cost savings
RACE set to accelerate in 2020: cost savings to further increase competitiveness ▪ New methodology of billing process optimization generated 28m€ 2019 ▪ Real Estate, including Syntel consolidation, brought 26m€ of savings ▪ Span of Control leading to redeployment of 350+ people, within the business
Slide 28: 2019 headcount evolution
2019 headcount evolution 28 | February 19, 2020 | © Atos
Slide 29: Income statement
Income statement In € million 2019 2018 From operating margin Revenue 11,588 10,648 to net income*: Operating margin 1,190 967 2019 includes % of revenue 10.3% 9.1% Reorganization, Rationalisation, Integration & acquisition costs -175 -154 ▶ Worldline Amortization of intangible assets (PPA from acqu
Slide 30: Normalized net income and normalized EPS
Normalized net income and normalized EPS Group share evolution Net income from continuing operations Normalized Basic EPS from continuing operations Group Group share share (in € per share) Normalized Diluted EPS from continuing operations Group share (in € per share) 7.74 7.74 7.57 7.57 834 803 201
Slide 31: Cash flow statement
Cash flow statement In € million 2019 2018 Operating margin 1,190 967 as a % of revenue 10.3% 9.1% OMDA 1,802 1,210 as a % of revenue 15.5% 11.4% Capital Expenditures -324 -371 Lease payments -345 0 Change in working capital requirement -130 -95 Cash from operations 1,004 744 Reorganisation, Rationa
Slide 32: Net debt evolution
Net debt evolution -1,736 -2,872 -75 18 -1,551 -58 -113 -1,609 -14 701 37 605 35 Net debt Opening net Free cash One-off items Disposal of Other Capital Dividend Share FX rate Net debt 31/12/2018 debt of flow* related to the Worldline acquisitions / increase paid buy-back fluctuation 31/12/2019 World
Slide 33: From 2019 to 2020 free cash flow: forecasted evolution
From 2019 to 2020 free cash flow: forecasted evolution Main drivers on Operating Margin 1 Syntel cost synergies Automation and AI in Infrastructure & Data 2 Management and Business & Platform Solutions 3 Topline growth in BDS 4 New RACE actions 5 Adaptation plan in Germany 33 | February 19, 2020 | ©
Slide 34: Conclusion
Conclusion Elie Girard = ) CEO
Slide 35: 2020 main priorities
2020 main priorities Organic growth Integration Pursue current positive momentum Complete Syntel synergies Acquisitions Transformation Bolt-on focused on key offerings Portfolio of offerings, Cyber and Big Data go-to-market, Industry set up 2020: a year of transformation with further improvement in
Slide 36: Q&A
? ? Q&A
Slide 37: Thank you
Thank you Atos, the Atos logo, Atos Syntel, and Unify are registered trademarks of the Atos group. February 2020. © 2020 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