JP Morgan European
Technology
CEO Conference
Tuesday June 18th, 2013
LondonJP Morgan European
Technology
CEO Conference

Disclaimers

June 18th 2013

▶ This document contains further forward-looking statements that involve risks anduncertainties 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 number of risks anduncertainties that are described within the 2012 Reference Document filed with the Autorité desMarches Financiers (AMF) on April 3rd, 2013 under the registration number: D13-0271.
▶ Global Business Units include Germany, France, United Kingdom & Ireland, Benelux(The Netherlands, Belgium and Luxembourg), Atos Worldline (French, German, Belgian, Asianand Indian subsidiaries), Central & Eastern Europe (CEE: Austria, Bulgaria, Croatia, Serbia,
Poland, Czech Republic, Russia, Romania, Slovakia and Turkey), North America (NAM: USA
and Canada), North & South West Europe (N&SW Europe: Switzerland, Italy, Denmark,Finland & Sweden), Iberia (Spain and Portugal), and Other Business Units including Major
Events (including MSL), Latin America (Brazil, Argentina, Mexico, Colombia and Chile), Asia
Pacific (Japan, China, Hong Kong, Singapore, Malaysia, Indonesia, Philippines, Taiwan, Thailand
and Australia), India, Middle East, Morocco, South Africa, New Business Ventures (blueKiwi,
Yunano and Canopy) and Atos Worldgrid (French, German, Spanish, and Italian subsidiaries).
▶ Revenue organic growth is presented at constant scope and exchange rates. 2013 objectives
have to be considered with exchange rates as of 31 December 2012.
▶Adjusted (non diluted) Earnings Per Share (EPS) represents the net income adjusted ofrestructuring, rationalization and customer relationship amortization, net of tax, divided by theweighted average number of shares during the year.
2

Atos: Grown through acquisitions to become a
Tier One global player and European IT Leader
Revenue 2012
EUR

No. of Employees

8,844 million 76,400
 No. 1 European
player in Managed
Services
 Executed largest IT
services and people
merger in the last 5
years; FrancoGerman merger
recognized as very
successful
 Transformed thecompany to aSocietas Europaea
 Global IT-Partner of
the Olympic &Paralympic Games
since 1992

3

JP Morgan European
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CEO Conference
June 18th 2013

Countries

47
 Tier One industry
recognition: Leader in
Gartner’s Magic
Quadrant in
DataCenter,
Infrastructure Utility,
Helpdesk and Desktop
Outsourcing
 Tier One customer
base: E.g. Siemens,
BNP Paribas, KPN,
EDF, Department ofWork and Pensions,
BBC, NS&I, McGraw
Hill, NSN, etc.

JP Morgan European
Technology
CEO Conference

A continuous shareholder value
creation

June 18th 2013Market cap. (EUR billion)

x4
4.7
2.4

1.3
17 November
2008

13 December
2010(pre-SIS)

14 June2013

Net debt / cash (EUR billion)

From net debt to net cash situation
0.3-0.4
17 November
2008

4

-0.2
13 December
2010(pre-SIS)

31 March
2013

JP Morgan European
Technology
CEO Conference

Atos profile in 2012

June 18th 2013

Key figures 2012
- Revenue

Revenue by Market

EUR 8,844 million- Operating margin 6.6% = EUR 580 million- Order entry

EUR 10 billion- Backlog

EUR 15.6 billion (as of Dec. 31st)- Headcounts

76,417 (as of Dec. 31st)- Free cash flow

EUR 259 million- Net cash

EUR 232 million (as of Dec. 31st)

14%

Managed Services

22%

47%

Systems Integrationof which 8% ofApplication Management

HTTS & Specialized
Businesses

33%

Public sector, Healthcare &Transport
Financial Services

19%
Telecoms, Media &Technology
27%

Revenue by Service Line
7%

Manufacturing, Retail &Services

7%

Energy & Utilities

Revenue by GBU4%5%77% ofrevenuebased onmulti-years
contracts

Germany

8%
19%

Atos Worldline

7%

19%

10%

North America

Central & Eastern Europe
11%

Consulting & Technology
Services

FranceBenelux

6%24%

United-Kingdom & Ireland

11%

North & South West Europe
IberiaOther BUs

5

JP Morgan European
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CEO Conference

2012 performance by Service Line

June 18th 2013

Systems
Integration
24%

ManagedServices
47%

In EUR million

Managed Services
Systems Integration
HTTS & Specialized
Businesses
Consulting & Technology
Services
Corporate costs**
Total Group▶ Atos revenue based on multi-year
contracts increased to 77 percent

HTTS &
Specialized
Businesses
22%▶ Growth in the 2 recurring Service Lines

Consulting&
Technology
Services
7%▶ Cyclical activities slowed down in thesecond semester

Revenue

Operating Margin

Operating Margin %FY 2012 FY 2011* % growth
4,135
4,040
+2.4%
2,136
2,186
-2.3%

FY 2012 FY 2011*
324.8
233.4
104.1
57.8

FY 20127.9%
4.9%

FY 2011*
5.8%
2.6%

1,969

1,917

+2.7%

232.7

219.2

11.8%

11.4%

604

635

-5.0%

24.0

35.1

4.0%

5.5%

+0.8%

-105.6580.0-120.6
425.0

-1.2%
6.6%

-1.4%
4.8%

8,844

8,778

* Constant scope and exchange rates** Corporate costs exclude Global delivery Lines costs allocated to the Service Lines
6

JP Morgan European
Technology
CEO Conference

2013 Objectives

June 18th 2013

2013
The Group confirms all its objectives for 2013 as stated in the
February 21st, 2013 release, i.e.:▶Revenue– The Group expects to continue to slightly grow compared to 2012.
▶Operating margin– The Group has the objective to improve its operating margin rate toaround 7.5 percent of revenue compared to 6.6 percent in 2012.
▶Free Cash Flow
– The Group has the ambition to achieve a free cash flow above EUR 350
million.
▶Earnings per share (EPS)– The Group ambitions an EPS (adjusted, non diluted) representing an
increase of +50 percent compared to 2011 statutory (up +25 percent
compared to 2012).
7

From a bigger scale in Managed
Services thanks to SIS acquisition…

JP Morgan European
Technology
CEO Conference
June 18th 2013

ERP
ERP Applications
Applications
900,000 SAP
SAP users
users
900,000

x3

Network & Security Services
50,000 managed Network
devices

Data Centers
30 Main Data Centers>40,000 m²x2x2Server Management
90,000 servers(UNIX, Linux, Windows)

x5.5

Desktop2,7 Million Seats
40 Million calls / year

x3.5

…

8

Increased capacity from SIS contribution

…to very large signatures
Main wins above EUR 100 million since March 2012

JP Morgan European
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CEO Conference
June 18th 2013

▶ March: a 10 years contract with EDF Energy to provide data-center services
in the UK▶ May: a five-year IT outsourcing contract with the UK Nuclear Decommissioning
Authority▶ June: Outsourcing contract renewal with Deutsche bank in Germany▶ June: Systems Integration contract with Orange FT in France▶ July: a multi-year first generation outsourcing contract with McGraw-Hillin the US▶ August: 5 years BPO contract with the Department of Health in the UK▶ September: a seven-year IT outsourcing contract with Postnord in Scandinavia▶ September: Managed Services contract with Postbank in Germany▶ September: BPO contract with the Department of Work and Pensions
in the UK▶ December: a global contract of Systems Integration and Application Managementwith NSN for at least 3 years (mainly in Germany)▶ March 2013: renewal ePlus (KPN) Managed Services contract in Germany▶ May 2013: renewal NS&I BPO contract in the UK
9JP Morgan European
Technology
CEO Conference

2012 Commercial activity

June 18th 2013

▶ Total order entry in 2012 at EUR 10 billion▶ Book to bill ratio by activity:

FY 2012 FY 2011*
115%
104%
109%
102%
113%
103%

Recurring businesses
Cyclical activities
Total Group▶ Book to bill ratio by market:
Manufacturing, Retail & Services
Public sector, Healthcare & Transport
Financial Services
Telecoms, Media & Technology
Energy & Utilities
Total Group* Statutory figures
10

FY 2012excludingSiemens

95%
124%
110%
135%
122%
113%

104%
124%
110%
135%
122%
118%

JP Morgan European
Technology
CEO Conference

Pipeline evolution(in EUR million)

June 18th 2013

▶ Full qualified pipeline stable above EUR 5 billion▶ High share of large deals (29% > EUR 50 million)
Qualified
Pipeline value
6,000

5,500

EUR 5.3 B

EUR 5.3 B

5,000
4,500 15%
4,000

13%

22%
10%

EUR 5.3 B

EUR 5.1 B

14%

15%
10%

13%

EUR 5.4 B

16%
11%

EUR 5.1 B
16%

14%

3,500
3,000
2,500
2,000
Dec-11Mar-12

Deals above EUR 100 million

Jun-12

Sep-12

Deals between EUR 50 - 100 million

11

Dec-12

Deals below EUR 50 million

Mar-13

Two main strategic business developments
supported by a continuous operational improvement
program

Payment
services andtransactional IT

Foundation IT

Technologicalacceleration
IT services for support
systems delivering: Lower TCO’s
 Standardization
 Industrialization
 Agility & Reliability
IT services to support
customers’ top line
growth for their: Core business enabling IT
 Competitive positioning Time to Market
 Innovation

Shift toCloud

JP Morgan European
Technology
CEO Conference
June 18th 2013

Atos strategic directions

The Atos dedicatedopen Cloud services
compagny

Carve-out ofPayments
online andmobileexplosion

Payment andmerchanttransactional activities

Business development supported by the
Tier One Program to reach best in class KPIs
12

JP Morgan European
Technology
CEO ConferenceContinuous operational
improvement program

June 18th 2013

A new Program“Tier One Program”

Total Operational Performance“Turnaround program”

3 years plan: to achieve bestin class quality, with moreadvanced technologies andthe best talents .
« The right to be the Leader »2 years plan toturnaround andintegrate SIS« The right tobecome a Tier one
company »3 years plan to catch
up with competitors:« The right to grow »01/2009

07/2011

Best in classcompany

Size
01/201313

What cloud brings to customers ?

JP Morgan European
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CEO Conference
June 18th 2013

▶ A way to cut costs(double digits)▶ A way to variabilize IT
costs: « Liquid IT »Delivering▶ A way to
IT capabilities,
avoid capex
hardware, software▶ Scalability▶ Concentrationor services, over the network

Financial
benefits

Businessbenefits▶ More agility withfaster provisioning
and ramp down
▶ Access to bestin class apps
to consumers or enterprises inwith instanta scalable way, with pay per
implementation
use models▶ Enhanced webbased, multidevice end-user
experience▶ Compatible
with BYOD,
secure14

Canopy: Atos Cloud Services entity

JP Morgan European
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June 18th 2013

▶ Key indicators
IT Services

Infrastructure
Technology

Cloud
Solutions

Joint-Venture structure▶ An open and evolutionary
approach to integrating partners• ~300 dedicated staff• >EUR 200 million of revenue in2012,• Double digit growth• Positive free cash flow
• Global presence with Cloud datacenters on 3 continents• Large public and privateorganisations targeted• IaaS businesses supporting
investments in SaaS/PaaS▶ Future developments• Launch of a Cloud data-center in
Asia (Singapore)• Verticalization of Cloud offerings• Big data

Ambition to be among the leading Cloud Services companies worldwide
15

4 Service Lines focused on large
enterprises and administration

Consulting

JP Morgan European
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CEO Conference
June 18th 2013

SaaS

PaaS

Cloud Strategy

App store and
SaaS roadmap

Canopy CDE

On premise
vBlock appliances• Strategic Advisory• Implementation/• Development & test

• Run component for

Services• Transformation
Services• Migration Services•

customization of
SaaS and PaaSapps
App migration
services••

environment
Virtual developer
desktop, continuous
integration &collaboration platform*
Complete hosted SAP
solution► Canopy revenue is now circa EUR 200 million –> critical mass
► Simplified messaging towards clients, analysts, ISVs, internal
16

IaaS

•

•

private clouds (onand off premise)
Virtual desktop
solution: Vblock
design/build using
specialized flying
squadsCloud-specific PS(e.g., virtualization)

Atos Private Cloud platforms

JP Morgan European
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June 18th 2013

European customers’
data stay underEuropeansovereignty

VMware platforms
Microsoft platform
Canopy platforms(vBlocks)
17

Atos payment and merchant transactional
activities carve-out is a logical step forward

JP Morgan European
Technology
CEO Conference
June 18th 2013

1

Position Atos payment and merchant transactional activities as
Europe’s leading player in the transactional space2

Increase the visibility of Atos’ transactional activities for Clients3

Provide Atos payment and merchant transactional activities withmore strategic flexibility and attractive “currency” to move forward

4

Strengthen business culture within
Atos payment and merchant transactional activities team18

Atos payment and merchant transactional
activities
New scope and geographical footprint2012 revenue

2012 operating
margin rate*

+5%

15%

Total headcounts

Geographicalfootprint

1.1b
90m

c. €

June 18th 20132012 revenue
organic growthc. €2012 free
cash flow

JP Morgan European
Technology
CEO Conference

c.

7,000

* Stand alone after EUR 20 million Central costs allocation
19

18

countries

A end-to-end positioning in the
Payment value chain

JP Morgan European
Technology
CEO Conference
June 18th 2013

Issuing
processing

Acquiringprocessing

Commercial
acquiring

Acceptance& value-add
services formerchants

Offline payment
cards, checks,
direct debit, SEPA
mandates,…

payment

payment

payment

payment

Onlinepayment

payment

payment

payment

payment

payment

payment

payment

payment

payment

payment

payment

payment

Issuing

m-payment
Loyalty,
Prepaid,fuel cards,
e-Ticketing…

payment

payment

20

Atos payment and merchant transactional
activities: revenue vs. peers

JP Morgan European
Technology
CEO Conference
June 18th 2013

▶ Estimated revenue in Europe (in EUR billion)
1.1

Gemalto1.0

Atos payment & merchantFirst Data

0.7

NETS

0.7
0.7

Worldpay

0.6

Ingenico

0.5

Edenred
FNI

0.4

Wirecard

0.4

Global Payments

0.4

Equens

0.4

SIA

0.3

Fiserv

0.2

TSS

0.2

SIX Payment Services

0.2
Sources: Atos, companies, analysts consensus

21

The growth drivers of Atos payment

Change business mix organically and via acquisitions toenhance Atos payment growth profile

Payment andTransaction
Processing

▶
▶
▶
▶

Organic
growthlayersExternal
growthlayers▶

Merchant
Payment
Services▶

Consolidate
Europeanmarket▶

Portfolio
strategy

▶

▶
▶

▶

▶

JP Morgan European
Technology
CEO Conference
June 18th 2013

Partnership deals with banking institutions
Increase the sale of high-margin licenses
Growth drivers with SEPA implementation in Eurozone
Significant development opportunities in Emerging Markets (India, China)

Leverage on commercial acquiring strengths to provide a global solution formerchants (one-stop-shop solutions)End-to-end solution using e-commerce, CRM, loyalty and techno know-how
Reinforce strong relations with international retailers
Mobile technologies: become the enabler of Machine-to-Machine solutions forpayment or non-payment transactions
eg: Connected vehicles, Automated fines processing, Tolling systems,…

Natural consolidator to seize opportunities of large and transforming deals in
the European market
Consolidation potential reinforced by SEPA implementation
Build-up strategy of innovative assets and new technologies
Position on fast-growing segments of the markets

22

Atos Payment: a recognized highly
innovative leader supported by strong R&D
investments

JP Morgan European
Technology
CEO Conference
June 18th 201312 new products/offerings launched and announced in 201223

Leveraging Atos processing capabilities andmobile opportunities…

JP Morgan European
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CEO Conference
June 18th 2013

Atos payment and merchant transactional activities
is processing industrial volumes in offline and online payment…

PAYMENT
470 million Remote Payments
2.2b acquiring transactions
managed

CRM & LOYALTY & KIOSKS
45 million loyalty cards
managed

MOBILITY
Unique European leader
according to the Gartner andthe Forrester

E-COMMERCE
2 million online orders/month€1b of online retailtransactions/year…and is ready for the revolution of the mobile connected consumers

24

…to deliver highly added-value transactional
services to customers and merchants

JP Morgan European
Technology
CEO Conference
June 18th 2013

Product interaction
Contactless price,
QR Code, Tags,…
to enable products interaction.
Digital signage to reinvent local marketing

Atos Cloud Payment
No need to queue
up for orderingNew
servicesforconsumers

Specialized Services
to enable self-check-out
in your processes

Atos Mobile WalletYour mobile is yourwalletReinventing the physical store by bringing e/m-commerce services whilestrengthening the advantage of in-store shopping
Convergence
online / in-store
and Multichannel

Atos Mobile Acceptance
Payment card acceptanceon merchant smartphones

Real time couponing
Loyalty services
for suppliers based on
customer intimacy in-store

Addedvalue
offerings
formerchants

Delegating marketing
Services of marketingand part of the sell
support delegated tosuppliers25

JP Morgan European
Technology
CEO Conference

Key takeaways

June 18th 2013

2012

2013

We delivered all our objectives

The Group is fully geared towards
reaching its new objectives

Looking ahead
Atos strategy is in motion, leveraging on its two engines, European
leaders on their respective markets:
Payment and MerchantTransactional activities

Foundation IT▶European leading company inManaged Services, SI and BPO▶Cloud as a strong business accelerator▶Leader in European Payment andMerchant Transactional activities▶Significant levers of development▶Financial flexibility and attractive“currency”

A new Tier One Program to reach best in class KPIs

26

JP Morgan European
Technology
CEO Conference
June 18th 2013

From
QuestionstoAnswers27

Thank you

Atos, the Atos logo, Atos Consulting, Atos Worldline, Atos Sphere,
Atos Cloud and Atos WorldGrid
are registered trademarks of Atos SE. 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, copied, circulated and/or distributed nor quoted without
prior written approval from Atos.