Q3 2018 revenue

Bezons
October 23, 2018

Disclaimer▶This document contains forward-looking statements that involve risks and uncertainties, including references, concerning theGroup's expected growth and profitability in the future which may significantly impact the expected performance indicated in
the forward-looking statements. These risks and uncertainties are linked to factors out of the control of the Company and notprecisely estimated, such as market conditions or competitors behaviors. Any forward-looking statements made in thisdocument are statements about Atos’ beliefs and expectations and should be evaluated as such. Forward-looking statements
include statements that may relate to Atos’ plans, objectives, strategies, goals, future events, future revenues or synergies, or
performance, and other information that is not historical information. Actual events or results may differ from those describedin this document due to a number of risks and uncertainties that are described within the 2017 Registration Document filedwith the Autorité des Marchés Financiers (AMF) on February 26, 2018 under the registration number D.18-0074 and the updateto the 2017 Registration Document filed with the AMF on July 27, 2018 under number D.18-0074-A01. Atos does notundertake, and specifically disclaims, any obligation or responsibility to update or amend any of the information above except
as otherwise required by law. This document does not contain or constitute an offer of Atos’ shares for sale or an invitation or
inducement to invest in Atos’ shares in France, the United States of America or any other jurisdiction.
▶Revenue organic growth is presented at constant scope and exchange rates and restated for the impact of IFRS 15.
▶Business Units include Germany, North America (USA, Canada, and Mexico), France, United Kingdom & Ireland,Worldline, Benelux & The Nordics (Belgium, Denmark, Estonia, Finland, Lithuania, Luxembourg, The Netherlands, Poland,
Russia, and Sweden), and Other Business Units including Central & Eastern Europe (Austria, Bulgaria, Croatia, Czech
Republic, Greece, Hungary, Israel, Italy, Romania, Serbia, Slovakia and Switzerland), Iberia (Spain and Portugal), Asia-Pacific(Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand),South America (Argentina, Brazil, Colombia, and Uruguay), Middle East & Africa (Algeria, Benin, Burkina Faso, Egypt, Gabon,
Ivory Coast, Kingdom of Saudi Arabia, Lebanon, Madagascar, Mali, Mauritius, Morocco, Qatar, Senegal, South Africa, Tunisia,
Turkey and UAE), Major Events, Global Cloud hub, and Global Delivery Centers.
2 | Atos – Q3 2018 revenue

Agenda1.Q3 2018 highlights
2.Operational & financial performance

3.Syntel integration and TOP program
4.Conclusion and Q&A
3 | Atos – Q3 2018 revenue

Q3 2018 highlights
Thierry Breton
Chairman & CEO

Q3 2018 highlights
Stable revenue in Q3 impacted by North America and Germany inInfrastructure & Data Management
Business & Platform Solutions performance above plan thanks todigital businesses, to be accelerated by Syntel
Big Data & Cybersecurity and Worldline continued to contributestrongly to Group revenue evolution
Strong and fast takeover by new management in the US
Strong activity with Google materializing in a already promisingpipeline in secured Hybrid Cloud and Artificial Intelligence
Closing of Syntel acquisition ahead of scheduleand fast start of integration
5 | Atos – Q3 2018 revenue

Q3 2018 key figures€2,884m€2,482m

96,947

Revenue+1.8% at constantexchange rates

Order entry

Total headcount

+0.1%

86%

-0.4%

Organic growthBook to bill

Headcount evolution
since end of June 2018at constant scope

6 | Atos – Q3 2018 revenue

Main wins

Supporting Digital transformation in all industries and geographies
Orchestrated
Hybrid Cloud
SAP HANA

Global company in Nutrition,
Health, and Sustainable Living
World leadingchemical company

DigitalWorkplace

Codex
Cybersecurity
Digital Payment
7 | Atos – Q3 2018 revenue

Global Aerospaceand Defense leader
Leading German
printing press
manufacturer
Spanishautomobile
manufacturer

Multinational banking andfinancial services company
headquartered in the UK
US managed healthcare organization
Major FrenchbankSyntel follow-up
Syntel acquisition completed ahead ofschedule

All large customers met and exposed
to Atos portfolio

Arms length pre integration tracks
since beginning of August▶ Customers representing 70% of revenue
already met in one-on-one with Chairman andCEOAll synergies confirmed with more
visibility and documented:

Atos assigned BBB+ rating with Stable
Outlook by Standard & Poor’s▶ Run-rate cost synergies above $ 120 million to
be achieved by end of 2021 with a linear
phasing▶ Financing package was fully underwritten by
BNP Paribas and JP Morgan▶ Run-rate revenue synergies above $ 250
million to be achieved by end of 2021
8 | Atos – Q3 2018 revenue▶ Bond issuance subject to market conditions

2018 objectives update

Revenueorganic growth
OperatingmarginFree cash flow
9 | Atos – Q3 2018 revenue

InitialUpdate*c. +2% to +3%

c. +1%

10.5% to 11%
of revenue

Low end of thebracketc. 60%of operating marginc. 60%of operating margin* Including 2 months of Syntel
Free cash flow excludes acquisition and one-time
financing costs of Syntel and SIX Payment Services

2019 targets update

Revenueorganic growth
OperatingmarginFree cash flow
10 | Atos – Q3 2018 revenue

InitialUpdate*+2% to +3%
CAGR (2017-2019)

Low end of thebracket11.5%

11.5% to 12%c. 65%of operating marginc. 60%of operating marginof revenueof revenue* Including Syntel

Operational & financial
performance
Elie Girard
Group CFO

Constant scope and exchange rates figures
reconciliation
Q3 2018

Q3 2017
Restated for
IFRS 152,840-6In € million
Statutory revenue
Exchange rates effect2,884

Revenue at constant exchange rates

2,884

2,834

2,884

47
1
2,881

Scope effectExchange rates effect on acquired/disposed perimeters
Revenue at constant scope and exchange rates% change

Q3 2017
Reported

+1.5%

3,002
-8

+1.8%

2,994

+0.1%

47
1
3,042

▶ Exchange rates effect mainly came from the Argentina peso, the Turkish lira, theBrazilian real and the Indian rupee depreciating versus the Euro, and partiallycompensated by the American dollar and the British pound appreciating versus the Euro.
▶ Scope effect mostly related to the acquisitions of CVC, Healthcare consulting firms in
North America, Imakumo, and payment companies by Worldline.
12 | Atos – Q3 2018 revenue

Q3 2018 performance by Division▶ Infrastructure & Data Management impacted in North America and in Germany▶ Acceleration in Business & Platform Solutions led by Digital transformation▶ Double digit growth in Big Data & Cybersecurity▶ Worldline pursues its healthy trendIn € million

Infrastructure & Data Management
Business & Platform Solutions
Big Data & Cybersecurity
Worldline
Total GroupQ3 2018

Q3 2017*

1,526
767
191
399
2,884

1,601
734
171
375
2,881

* At constant scope and exchange rates, and restated for IFRS 15
13 | Atos – Q3 2018 revenue

Organic
evolution
-4.6%
+4.5%
+11.7%+6.3%+0.1%

Infrastructure & Data Management▶ Lack of commercial execution in North America and specific contract issue inGermany▶ Continued development of Hybrid Cloud and Digital Workplace in all geographies
North America

14%

In € million

Revenue
Organic growthOrder Entry
Book to bill
Direct headcount
Variation in Q3 at constant scope

14 | Atos – Q3 2018 revenue

Q3 2018
1,526
-4.6%
1,229
81%
44,963-1%

26%
8%

Germany
United Kingdom & Ireland

9%

Benelux & The Nordics
20%

23%

FranceOther Business Units

Business & Platform Solutions▶ Strong

dynamic

indigitaltransformation

projects

primarilyin

Manufacturing, Retail & Transportation▶ Positive growth in almost all geographies and verticals▶ Stable number of staff linked to robotization

In € million

Revenue
Organic growthOrder Entry
Book to Bill
Direct headcount
Variation in Q3 at constant scope
15 | Atos – Q3 2018 revenue

Q3 2018
767
+4.5%
710
92%
30,195
-0%

25%

29%

FranceGermany
Benelux & The Nordics

United-Kingdom & Ireland

5%
19%

10%

12%

North America
Other Business Units

Big Data & Cybersecurity▶ Solid momentum in Big Data with increasing HPC and Bullion sales▶ Strong demand for Cybersecurity services▶ Increasing internationalization of the Division▶ High level of hiring of critical competencies
In € million

Revenue
Organic growthOrder Entry
Book to Bill
Direct headcount
Variation in Q3 at constant scope

16 | Atos – Q3 2018 revenue

Q3 2018191+11.7%
222
116%
5,049
+2%

France35%

31%Germany
United-Kingdom & Ireland
North America

5%

Benelux & The Nordics
13%

3%

12%

Other Business UnitsWorldline
Q3 2018
399
+6.3%
321
80%
9,226

In € million

Revenue
Organic growthOrder Entry
Book to Bill
Direct headcount
Variation in Q3 at constant scope+2%▶ Strong momentum thanks to increasing volumes▶ Balanced revenue growth across Business Lines▶ Increased number of staff through hiring of key
talents and low attrition rate

Revenue mix by Country
23%

24%

FranceRevenue performance by Business LineIn € million

Belgium
5%
12%

22%

14%

17 | Atos – Q3 2018 revenue

Merchant Services & Terminals
Germany
Financial Processing
Netherlands Mobility & e-Transactional Services
Total Worldline
UK

Q3 2018
142
187
70
399

Q3 2017*
135
174
66
375

* At constant scope and exchange rates, and restated for IFRS 15

Other Countries

Organic
evolution

4.8%
7.7%
5.9%
6.3%

Q3 2018 performance by Business Unit
▶ Contrasted revenue evolution by geography

14%▶ Challenging quarter in North America and in Germany▶ Continuous solid performance in the United Kingdom

18%

17%
16%

In € million

Germany
North America
United-Kingdom & Ireland
FranceBenelux & The Nordics
Other Business UnitsWorldline
Total GroupQ3 2018

Q3 2017*

518
465
382
381
242
497
399
2,884

544
499
372
380
242
469
375
2,881

* At constant scope and exchange rates, and restated for IFRS 15

Organic
evolution
-4.9%
-6.7%
+2.6%
+0.3%
+0.2%
+6.0%
+6.3%
+0.1%

8%
13%

Germany
North America
United Kingdom & Ireland
FranceBenelux & The Nordics
Other Business UnitsWorldline

18 | Atos – Q3 2018 revenue13%

Q3 2018 headcount evolution+3,921-4,314+1,237

96,947

96,103Headcount as of
30/06/18

19 | Atos – Q3 2018 revenue

Scope

HiringLeavers,
restructuring& dismissals

Headcount as of
30/09/18

DSO evolution: no further increase of customer
financial agreements in 201965

▶ Implementation ofcustomer financial
agreements (sale ofreceivables without
recourse) to mitigate
the lengthening of
the underlying DSO

60
55
50
45

▶ Broadly stableeffective DSO

40▶ Underlying DSO now
converging to peers

35
30
2014

2015

Atos underlying DSO

20 | Atos – Q3 2018 revenue

2016
Atos effective DSO

2017

2018

▶ No further increaseof customer financial
agreements in 20192019

Average underlying DSO of peers** Based on peers disclosures and Atos’ calculations

FCF evolution since 2014
▶ Significant increase of the FCF fueled by strong management actions in order tocontain Capex, reduce restructuring costs and tax paid over the period, as wellas improve the operating margin (quantity and quality)
67
80

-299

113

169

714

-29
319

293

FCF 2014

Improvement of Control of Capex Reduction of
Effect from Tax
OMDA in % of in % of revenue Reorganization, rate reduction
revenue
Rationalization& Integration
costs in % ofrevenue

21 | Atos – Q3 2018 revenue

Other changes
and scope
impactChange inunderlying
working capitalrequirement

Financialagreements onreceivables

FCF 2017

Syntel Financing update
Enterprise value: $ 3.6 billion

Financing structure▶ Of which equity value: $ 3.4 billion▶ Of which net debt: $ 0.2 billion▶ Mix of €/$ debt financing and maturities▶ Unsecured, no additional covenant▶ Structure:• Bridge-to-DCM: € 1.6 billion• 5 year term loan: € 0.7 billion• 3 year term loan: € 1.0 billion

RatingFinancing cost

▶ Atos assigned BBB+ rating with Stable
Outlook by Standard & Poor’s▶ Intention to partly refinance on the bondmarket, depending on market conditions▶ Average cost of euro/dollar debt undercurrent market conditions at c. 2%▶ Acquisition and one-time financing costs:c. € 45 million of which c. € 30 million as
on-time financing costs on € 3.3 billion loans

22 | Atos – Q3 2018 revenue

Syntel integration andTOP program
Eric Grall

Chief Operating Officer

IDM : the right model requiring now best in classcommercial execution
Atos IDM Strategy▪ Overall market where Atos IDM operates shows continued positive growth fornext years including Transformation services▪ Atos portfolio and strategy very well received by customers and industry
analysts (Digital Workplace, Hybrid Cloud and orchestration, IoT, …)▪ Customers confirming hybrid cloud strategy with Private as a priority

Commercial
Execution issues▪ Some deals lost due to commercial execution in some geographies against
classic competitors▪ Pricing proven to be competitive▪ Pipeline remains strong and several large opportunities on the horizon“Back to Growth”
plan launched▪ Accelerated hiring/reskill in targeted geographies for pre-sales and sales
launched▪ Revised and new growth initiatives ready in Q4, for full execution from Q1 FY19
further leveraging Atos strengths in Digital Workplace, Hybrid Cloud and IoT▪ IDM back to positive organic growth numbers during FY19

24 | Atos – Q3 2018 revenue

Atos Syntel - Integration update
DealclosedIntegration in
full motion▪

Deal signed on July 22nd and closed on October 9th▪

Day 1: Atos Syntel leadership team announced & fully operational, Atos Syntel brand launch▪

Day 1: Top clients visits last 2 weeks by Atos CXOs representing c. 70% of Syntel revenues,
presented with compelling value proposition & increase portfolio capabilities. Customers
confirmed confidence in integration approach▪

All integration preparation activities scheduled for Day 1 accomplished▪

One dedicated integration team addressing the full perimeter up & running, covering
e.g. account transformation, x-selling, tools & processes, support functions, …

▪

Reverse integration of entire B&PS operations in India and North America started▪

Revenue synergies to reach above $ 250 million by 2021, 50% by end 0f 2020 – Confirmed

Value-creation
confirmed▪

▪

All Syntel customers confirmed value in Atos portfolio and opportunities in progress in all
visited accounts▪

27 new scope/revenue deals and proposals in progress since Day1

Cost synergies to reach above $ 120 million by 2021 with linear phasing – Confirmed▪

▪

Secured 15 millions real estate & procurement synergies effective 2019

Expected one-off cost of circa $ 100 million

25 | Atos – Q3 2018 revenue

TOP Program : From traditional levers to digital levers

Automation Analytics& Artificial Intelligence▪ LEAN + AUTOMATION : 45K FTEs in scope▪ Data Analytics & Cognitive to increase Operational Excellencewith Data-Mining X-platforms & Machine Learning▪ € 200 million of identified savings in execution▪ Artificial Intelligence projects launched (leveraging Google partnership)

Agile & disciplined
workforce management▪ Continuous streamlining of spans & layers▪ Increased use of our Global Delivery centers▪ Attract, Develop and Retain Digital Talents

Supply Chain Efficiency▪ Vendor consolidation▪ Continuous HW and SW standardization▪ Stronger leverage of Automated Workflow (+200 add. request
automated)

Digitalization SG&A

▪ Robotized Process Automation for best-in-class functions▪ Consolidation of all transaction processing activities for economies of scale

26 | Atos – Q3 2018 revenue

Conclusion

Thierry Breton
Chairman & CEO

20 19 I nvestor Day
Investor Day early 2019 to present the new Group
profile and the new three year plan 2019-2021
after the integration of Syntel and SIX Payment
Services28 | Atos – Q3 2018 revenue

?
Q&A

?

Thanks

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