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Atos — Natixis Conference 2011
44 slides from Atos's conference presentation, Nov 10, 2011
Slide 1: Natixis Conference Paris
Natixis Conference Paris November 10th, 2011
Slide 2: Disclaimers
Natixis Disclaimers Conference November 10th, 2011 ▶ 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
Slide 3: Agenda
Natixis Agenda Conference November 10th, 2011 1. New Atos Profile 2. A defensive asset in the current environment 3. Follow-up TOP2 and synergies 4. Actions to accelerate revenue growth 5. Q3 main figures and 2011 objectives 3
Slide 4: New Atos Profile
Natixis Conference November 10th, 2011 New Atos Profile 4
Slide 5: Dynamics of our strategy
Natixis Dynamics of our strategy Conference November 10th, 2011 2009 2010 2011 2012 2013 2014 2015 Operating GROUP Margin Goal Operating achieved TRANSFORMATION + 250 bp, TOP2 Margin (TOP) catching up with 7% to 8% competitors AtoS Objective: ▶ ROLL OUT OF HTTS Leader in ▶ DEVELOPMENT OF IT SPECIALI
Slide 6: Snapshot on Atos pro forma figures by Service Line
Natixis Snapshot on Atos pro forma Conference figures by Service Line November 10th, 2011 ▶ Combined 2010 revenue by Service Line in EUR million 3,953 Atos stand-alone EUR 5.0 billion SIS stand-alone EUR 3.6 billion 2010 Pro-forma Revenue Breakdown C & TS 8% 2,230 HTTS 2,267 & SB 20% 1,711 MS 991 46
Slide 7: Snapshot on Atos pro forma figures by Verticals
Natixis Snapshot on Atos pro forma Conference figures by Verticals November 10th, 2011 ▶ Combined 2010 revenue by Verticals (in EUR million) 2,749 Atos stand-alone EUR 5.0 billion SIS stand-alone EUR 3.6 billion 2,190 1,522 1,715 800 559 1,298 611 627 1,228 1,389 1,156 93 686 534 Manufacturing, Publ
Slide 8: Pipeline reinforced by SIS acquisition
Natixis Pipeline reinforced by SIS Conference acquisition November 10th, 2011 ▶ Weighted Pipeline in EUR billion 5.6 Deals EUR 100 m + Deals EUR 50-100 m 17% 30% Deals below EUR 50 m More than doubling 13% 2.7 11% 23% 12% 70% 77% Atos Origin Atos 30th June 2011 30th September 2011 SIS Acquisition gi
Slide 9: Snapshot on Atos pro forma 2010 figures by geographies
Natixis Snapshot on Atos pro forma 2010 Conference figures by geographies November 10th, 2011 Germany Emerging countries: EUR 1,843 million EUR 649 million Rank: #2 NAM: France: EUR 476 million EUR 1,472 million Rank: #2 North & South West Europe: Benelux: EUR 473 million EUR 1,399 million Rank: #1
Slide 10: Snapshot on Atos headcounts as of 08/2011
Natixis Snapshot on Atos headcounts as Conference of 08/2011 November 10th, 2011 Atos # of headcounts Total headcounts: 73,949 Of which 25% outside Europe Benelux 8,306 North & South West Europe UK/Ireland 1,729 Central & Eastern Europe 4,666 9,640 North America 3,906 10,862 Germany Iberia 5,652 3,5
Slide 11: 2011e Revenue
Natixis 2011e Revenue Conference November 10th, 2011 H1 2011 H2 2011e Atos EUR 2.5 bn EUR 2.5 bn 2011 statutory revenue objective: SIS EUR 1.7 bn EUR 1.8 bn EUR 6.8 bn Pro forma 2011e revenue: EUR 8.5 bn 11
Slide 12: 2011e Operating Margin
Natixis 2011e Operating Margin Conference November 10th, 2011 H1 2011 H2 2011e 2011 Atos 6.7% 8.4% statutory operating margin SIS (0.7%) 2.7% objective: 6.2% Pro forma 2011e operating margin: 4.9% 12
Slide 13: A defensive asset in the current environment
Natixis Conference November 10th, 2011 A defensive asset in the current environment 13
Slide 14: A non-cyclical and outperforming business
Natixis A non-cyclical and outperforming Conference business November 10th, 2011 Atos is ahead of competitors even in a tough macro environment ▶ In absolute terms… ▶ … and relative to the sector 8.1% 7.1% 6.8% 8% 08-10 CAGR of 13.8% 6.7% 7% 6.7% 337 4.8% 2013e 5.7% 5.9% guidance 290 261 1.9% 1.8% 1
Slide 15: Improvement of free cash flow generation
Natixis Improvement of free cash flow Conference generation November 10th, 2011 ▶ Evolution of FCF (in EUR million) 170 143 117 (52) 2008a 2009a 2010a 2011e 15
Slide 16: Cash-flow and 2011 net debt targets
Natixis Cash-flow and 2011 net debt targets Conference November 10th, 2011 SIS acquisition Cash at closing Opening net Free cash Working Loss-making Funding Creation of Free cash Free cash Target net debt flow H1 Dividend Net debt Convertible capital contracts receivable Siemens flow Q3 flow Q4 debt
Slide 17: Strong level of liquidity sources available for Atos
Natixis Strong level of liquidity sources Conference available for Atos November 10th, 2011 ▶ Refinancing of Atos syndicated loan early 2011 (April) Syndicated loan ▶ EUR 1.2 bn revolving facility refinanced with 12 banks (maturing in 2016) - 25% used so far ▶ EUR 200 m of securitization Securitizat
Slide 18: A strong capital structure
Natixis A strong capital structure Conference November 10th, 2011 ▶ Completion of the acquisition while preserving Atos’ capital structure ▶ Pro forma leverage significantly below banking covenant ▶ Atos’ financing and acquisition capacities maintained ▶ Historical net debt / OMDA ratio: Banking cov
Slide 19: A strong capital structure post SIS acquisition and zero net debt ambition
A strong capital structure post SIS Natixis Conference acquisition and a zero net debt ambition November 10 , 2011 th ▶ Evolution of Atos net debt (in EUR million and including convertible bonds) 270 139 91 0 31/12/2010 30/06/2011 01/07/2011 31/12/2011 30/06/2012 Net debt : 0.26x 0.17x 0.37x 0.24x .
Slide 20: Focus on Atos pensions
Natixis Focus on Atos pensions Conference November 10th, 2011 Atos legacy SIS In EUR million 30/06/2011 31/12/2010 31/12/2009 Expected Total Liabilities (2 495) (2 504) (2 122) (978) Total Assets 2 277 2 201 1 872 956 Unrecognized 5 6 10 10 Net (213) (297) (240) (12) Pensions in P&L 16 (32) 6 Operat
Slide 21: EPS 2011e
EPS 2011e Natixis Conference November 10th, 2011 Shares Convertible Non diluted Fully diluted (in million) 21.10.09 01.07.11 As of 69.9 5.4 75.3 31.12.2010 SIS acquisition 12.5 5.4 8.9 01.07.2011 Total shares 82.4 5.4 5.4 93.2 Average total # 76.2 5.4 2.7 84.3 of shares EPS 2011 Non diluted Fully di
Slide 22: Follow-up TOP2 and synergies
Natixis Conference November 10th, 2011 Follow-up TOP2 and synergies 22
Slide 23: SG&A: Close gap with former AO level and extract volume synergies
Natixis SG&A: Close gap with former AO Conference level and extract volume synergies November 10th, 2011 SG&A as a % of revenue 13% 160-170M€ 195-225M€ Restructuring 15-20M€ 11.3% Siemens 10-15M€ Job market - C&B alignment 65-70M€ 10,5% 50-55M€ - Expatriates Efficiency gain through Expenses and 2 Ye
Slide 24: A sustainable productivity approach on SG&A as opposed to cost cutting
Natixis A sustainable productivity approach Conference on SG&A as opposed to cost cutting November 10th, 2011 Capacity free up identified headcount 1750 1575 Wave 3 in Q4: other 1125 GBUs Wave 2 in Q3: CEE, NL, NSWE Wave 1 in Q2: GER, HQ, NAM, UK % of total 40% 63% 100% SG&A analyzed AVA leads to id
Slide 25: Real estate
Natixis Real estate Conference November 10th, 2011 confident in achieving Atos standards leading to EUR 40-50 million/year savings through sqm/hc ratio reduction ▶ Specific deal signed with Siemens Real Estate in June Siemens (space adjustment without termination costs): 50% Real Estate ▶ 100ksqm pr
Slide 26: Lean Management: Applying proven approach to SIS perimeter
Natixis Lean Management: Applying Conference proven approach to SIS perimeter November 10th, 2011 Staff working under Lean Management, FTE ▶5 lean projects launched +14000 FTE at SIS prior to closing; pilots found 25% efficiency gains ▶Ex-Atos Lean Management infrastructure ported to SIS ▶Freed up p
Slide 27: Earning per share: in excess of +50% in 2013
Natixis Earning per share: in excess of Conference +50% in 2013 November 10th, 2011 ▶ The new Atos is a defensive asset: ▶ 2013 EPS commitment – 74% of recurring revenue ▶ SIS performance as expected: 4.7 € – (5.1%) OG and (0.7%) OM in H1 At least ▶ Cost synergies are confirmed: + 50% +1,6 € – EUR 2
Slide 28: Actions to accelerate revenue growth
Natixis Conference November 10th, 2011 Actions to accelerate revenue growth 28
Slide 29: Atos vision of the IT Market
Natixis Atos vision of the IT Market Conference November 10th, 2011 Market segment Customers expectations Atos’ Answers ▶ HTTS Development Business ▶ Core Business innovation ▶ Specialized BU for specific sub- Enabling Markets (Worldline, Worldgrid, ▶ Competitive differentiation IT MEV, …) ▶ Top Lin
Slide 30: Service Lines
Natixis Service Lines Conference November 10th, 2011 Business HTTS & Specialized Businesses Enabling 20% IT Services Consulting & System Technology Integration Services 27% Foundation 7% IT Services Managed Services 46% On 2010 pro forma revenue basis 30
Slide 31: Atos Global Portfolio
Natixis Atos Global Portfolio Conference November 10th, 2011 Financial Public, Manufacturing Energy Telecom, Services Health & Retail & & Media & Transport Services Utilities Technology (20%) (26%) (32%) (7%) (15%) • Card processing • eGovernment • Manufacturing • Smart metering • B2B / B2C cloud •
Slide 32: Expand addresses what we sell, how we sell and how we support Sales
Natixis Expand addresses what we sell, how Conference we sell and how we support Sales November 10th, 2011 Portfolio positioning and product-market strategy Win-rate Proactive sales improvement management Sales performance Sales operations management industrialization Resource rebalancing Pre-sales
Slide 33: Emergence of Cloud is an opportunity
Natixis Emergence of Cloud is an opportunity Conference November 10th, 2011 SCALE CLIENT BASE AND CLIENT INTIMACY is essential to industrialize and achieve are required to be their partner through out economies of scale the transformation ATOS DIFFERENTIATORS IN THE CLOUD TRANSFORMATION ABILITY TO F
Slide 34: The alliance between Atos and UFIDA
Natixis What did we announce on Conference November 8th 2011? November 10th, 2011 The alliance between and The Leading European The #1 Software IT services company company in China To jointly market cloud computing solutions for corporate customers in Europe To expand their geographic footprint
Slide 35: Atos & UFIDA are forming a Joint Venture
To enter the cloud service market Atos Natixis Conference & UFIDA are forming a Joint Venture November 10th, 2011 ▶ YUNANO (transliteration “Cloud & Safe”) will provide innovative cloud computing services for corporate customers in Europe, the Middle East and Africa (EMEA) ▶ Will sell Software as a
Slide 36: Q3 main figures and 2011 objectives
Natixis Conference November 10th, 2011 Q3 main figures and 2011 objectives 36
Slide 37: Q3 2011 Highlights
Natixis Q3 2011 Highlights Conference November 10th, 2011 2,093 -0.3% -234 Revenue (EUR m) Revenue organic Net debt (EUR m) evolution (Q3 2010 pro forma: EUR (Q3 2010: EUR -198 m) (Q3 2010: -3.5%) 2,099 m) 96% 14 74,088 Book to bill Backlog (EUR bn) Total Group number (Q3 2010: 90%) (1.6 years of re
Slide 38: Q3 2011 backlog evolution
Natixis Q3 2011 backlog evolution Conference (in EUR billion) November 10th, 2011 Siemens 2.1 2.0 2.8 Other SIS customers 3.8 1.6 years 14.1 14.0 of 1.5 revenue 7.5 years of revenue Backlog Revenue Q3 Order entry Q3 Backlog 01/07/11 2011 2011 30/09/11* * Backlog at 30/09/11 includes updated rule
Slide 39: Commercial activity
Natixis Commercial activity Conference November 10th, 2011 ▶ Total order entries in Q3 2011 at EUR 2,014 million, representing a book to bill ratio of 96 per cent ▶ The Group expects to reach a book to bill ratio above 100 per cent for the full year 2011 Cyclical Recurring Book to bill Total Group a
Slide 40: Q3 2011 revenue performance by Service Line
Natixis Q3 2011 revenue performance by Conference Service Line November 10th, 2011 In EUR million Q3 2011 Q3 2010* % growth Managed Services 1,007 987 +2.1% Systems Integration 528 550 -4.1% HTTS & Specialized Businesses 421 412 +2.3% Consulting & Technology Services 136 150 -9.2% Total Group 2,093
Slide 41: Q3 2011 revenue performance by GBUs
Natixis Q3 2011 revenue performance by Conference GBUs November 10th, 2011 In EUR million Q3 2011 Q3 2010* % growth Germany 448 454 -1.2% France 228 242 -5.8% United-Kingdom & Ireland 349 335 +4.3% Benelux 242 260 -7.0% Atos Worldline 226 224 +1.0% Central and Eastern Europe 129 130 -1.4% North Amer
Slide 42: 2011 Objectives confirmed
Natixis 2011 Objectives confirmed Conference November 10th, 2011 The following objectives relate to the year 2011 which include 12 months of Atos and 6 months of SIS acquired in July 2011 2011 ▶ Revenue – Around EUR 6.8 billion ▶ Operating margin – 6.2% of Revenue ▶ Free Cash Flow – Around EUR 170 m
Slide 43: From Questions to Answers
Natixis Conference November 10th, 2011 From Questions to Answers 43
Slide 44: 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