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 risks and uncertainties are linked to factors out of the control of the Company and not precisely estimated, such as
market conditions or competitor's behaviors. Any forward-looking statements made in this document are statements about Atos’s beliefs
and expectations and should be evaluated as such. Forward-looking statements include statements that may relate to Atos’s plans,
objectives, strategies, goals, future events, future revenues or synergies, or performance, and other information that is not historicalinformation. Actual events or results may differ from those described in this document due to a number of risks and uncertainties that aredescribed within the 2021 Universal Registration Document filed with the Autorité des marchés financiers (AMF) on April 6, 2022 under theregistration number D.22-0247. Atos does not undertake, and specifically disclaims, any obligation or responsibility to update or amend anyof the information above except as otherwise required by law.
This document does not contain or constitute an offer of Atos’s shares for sale or an invitation or inducement to invest in Atos’s shares or
any other securities in France, the United States of America or any other jurisdiction.
This presentation includes information on specific transactions that shall be considered as projects only. In particular, any decision
relating to the information or projects mentioned in this document and their terms and conditions will only be made after the ongoing
in-depth analysis considering tax, legal, operational, finance, HR and all other relevant aspects have been completed and will be
subject to general market conditions and other customary conditions, including governance bodies and shareholders’ approval aswell as appropriate processes with the relevant employee representative bodies in accordance with applicable laws.

2

Rodolphe Belmer
Atos Chief Executive OfficerWe are on a transformation journey which started early in 2022 withthe swift adaptation of our governance and our leadership groupwith promising early commercial results
The Board of Directors concluded a strategic diagnosis and today
we present the path to growth driven by an ambitioustransformation plan

Through this transformation journey, we are committed to being
result-focused and transparent

4

TODAY’S PRESENTERS
An empowered leadership team driving an in-depth transformation

Rodolphe Belmer

Diane Galbe

Stéphane Lhopiteau

Bertrand Meunier

Atos CEOAtos CSO

Atos CFO

Atos Chairman

SpinCo5

TFCo

Philippe Oliva

Rakesh Khanna

Jean Philippe Poirault

Nourdine Bihmane

SpinCo CEO

Digital CEO

BDS1 CEOTFCo2 CEO1 Big Data and Security

2 Tech Foundations

AGENDA

01. Vision and Strategy

01. Vision and Strategy
02. Managing the transition
03. SpinCo
04. TFCo

05. Financials
06. Concluding remarks
6

ATOS IS PLAYING IN TWO DISTINCT MARKETS
Data & Application
drivenDigital Transformation & Business
Operations

Core Infrastructure

Smart Digital Platforms

Digital Workplace

Public Cloud

Professional Services

Cybersecurity

Private & Hybrid Cloud

High-performance computing

Business Process Outsourcing

Sovereign Identities & Data Protection

Unified Communications & Collaboration

Artificial intelligence / 5G edge market

7

Infrastructure
drivenTHESE MARKETS HAVE FUNDAMENTALLY DIFFERENT DYNAMICS…
Infrastructure driven

Data & Application driven
A large, strongly growing market€1,000 bn
Global Digital, Big Data &Security Market (2021)+8-10% p.a.

€490 bn(1)% p.a.

Expected 21/26 CAGR

Global Infrastructure &Private Cloud Market (2021)

Expected 21/26 CAGR

Driven by:
▪
▪
▪
▪

8

A mature market, shifting fromtraditional to next gen infrastructure

Shift to public cloud
Increasing need for cybersecurity
Big data & analytics going mainstream
Growing smart application market

Driven by:▪
▪

▪

Private and multi-cloudHigh-end infrastructure, modernization
and automation
Declining data center hosting demand

… AND DIFFERENT PERFORMANCE METRICS
Infrastructure

Data & Application•••

Talent acquisition
Capabilities building
Innovation

•
•
•
•

Infra fill rate
Automation rate
Fixed cost optimization
Capex Streamlining

Growth driven

Cash Flow driven

One size does not fit all9Data & App
drivenTHE DIGITAL, BIG DATA & SECURITY MARKET IS MARKED BY
STRONG OVERALL GROWTH AND CLOUD ADOPTION
Global Market size, EUR bn

Market trends
8-10% p.a.

▪ Shift to public cloud continues

c.1,500▪ >30-40% of revenue to be influenced bypartners and ecosystems, driving big shifts inthe deal lifecycle27%▪ Accelerating adoption of next-gen delivery
models and innovative commercial constructs
Digitalc.1,000
Digital Transformation

24%

Smart Digital Platforms

30%

Cloud (Public and Hybrid)

9%

Digital Security

21%

Advanced Computing
Source: Gartner, IDC, Hyperion

10

16%
2021

26%

▪ Increasingly complex digital environments
multiply potential security breaches andsophisticated cyber attacks outpace traditional
cyber-defense strategies

10%18%
Big data &security
20%
2026▪ Productized vertical offerings play increasingrole to differentiate offerings▪ Big data and analytics applications goingmainstream, with continued high investments▪ Big data use cases drive demand for highperformance compute

InfradrivenTHE INFRASTRUCTURE AND PRIVATE CLOUD MARKET IS EXPERIENCING A
MIX SHIFT FROM TRADITIONAL TO NEXT GENERATION INFRASTRUCTURE
Global Market size, EUR bn

Market trends(1)% p.a.

c.490
Private Cloud1
Digital Workplace▪ Shift to cloud putting pressure on data center
hosting volumes and prices in the short-term,
but stabilization expected post migration

c.470

14%
20%

▪ Growing hybrid cloud market driven byincreased overall workloads offsetting
decrease from migration to cloud

14%
16%

Professional Services2

24%
27%

Core Infrastructure3

47%

2021

11

Tech
Foundations

38%

2026

Source: Gartner, IDC, Hyperion
1. Excluding hybrid cloud.
2. Technical Services & Sales of Hardware in IT reports.
3. Infrastructure & Managed Services in IT reports (including Network, Database, Server, Wintel, Service desk, Middleware, Storage)▪ Cloud platform services growing rapidly due
to migrations of existing workloads and cloudnative development▪ Strong demand for higher margin activities(consulting, implementation and managed
services)▪ Metaverse and edge cloud and other services
to drive demand for high-end infrastructure in
the mid-term

IN BOTH MARKETS, ATOS INCREASINGLY COMPETES AGAINST
PURE-PLAY COMPETITORS
Indicative revenue distribution per core offering

Portfolio exposure

GSIs1
Quantum / High Performance
Computing

Digital, Big
Data &
Security

Big Data
Digital Security
Application development &management, platforms
Public CloudApplication operations

Infrastructure &Hybrid Cloud

WorkplaceHybrid cloud
Data Center Outsourcing andInfrastructure Managed Services

1.

12

Global System Integrators.

Digitalplayers-+

Infra.
players

Security& big data
players

SIGNIFICANT CHANGES NEEDED TO IMPROVE ATOS PERFORMANCE
Structural Issues

Cyclical/ Market-driven Issues▪ Fragmented portfolio▪ Sales de-focus

TechFoundations▪ Delivery costs impacted by high exposure to highcost countries and high use of subcontractors▪ Low productivity and utilization rate

▪ Stranded costs in high-cost and complex countries▪ Inflation▪ Significant number of red contracts

Big Data &Security

Digital13▪ Advanced computing margin under pressure due
to public cloud and shift to high-end HPC and edge
computing▪ Impact of component shortage on HPC business▪ Low productivity and inadequate skill-set ofcommercial resources▪ Inflation impacting staff cost

▪ Delivery costs impacted by high proportion of
workforce in high-cost countries and pyramid
structure▪ Talent war▪ Talent war▪ Syntel Integration

2022 financial
performance to remain
at a low point,
as the transformation
plan under study is yet
to be launchedWE ADAPTED OUR ORGANIZATION TO BETTER TACKLE THE
SITUATION
Big Data & Security

Tech Foundations

13%

Core Infrastructure

DigitalWorkplace

Advanced Computing

Professional services andadvisory

Business process
outsourcing

DigitalUnified Communications& Collaborations

Private Cloud andPlatforms

Digital Security

55%

Application
modernization
Digitaltransformation
services

4 Regions

FY21 revenue

Cloud solutions

32%

Northern Europe & APAC

Artificial intelligenceCentral Europe
IoT

Decarbonization

Southern Europe
Americas

14

Early positive impact on improvement of commercial traction

NEXT STEP NOW UNDER STUDY: UNLOCKING VALUE BY SPLITTING
INTO TWO PUBLICLY-LISTED COMPANIES, LEADERS IN THEIRRESPECTIVE MARKETS

15

SpinCo (Evidian)

TFCo (Atos)

Digital, Big Data and Security

Digital Infrastructure and Workplace

Value proposition

Leading digital transformation partner with focus onestablished and emerging offerings centeredaround deep expertise and proprietary technology

Leader in Managed Infrastructure Services, Digital
Workplace and Professional Services, with focus on
designing, building and managing complex and vital
information systems worldwide

Business lines

Digital, BDS

Tech Foundations (excl. UCC)Management focus

Achieve strong growthand double-digit margin

Maximize cash generationand optimize cost base2021 Revenue€4.9 bn€5.4 bn

2021 Operating
Margin (%)7.8%(1.1)%

2021 est. organic
revenue growth

+5%

(12)%

RATIONALE OF SPIN-OFF UNDER STUDYCreation of two
companies, each witha more focusedstrategy, adapted totheir own market, a
dedicatedmanagement teamand performance
management system
and agility to execute
their owntransformation plan

Ensure each company
has an adequate
capital structure
adapted to its own
growth and cash
generation profile

Unlock value of
SpinCo by creating apublicly-listedcompany exposed tohigh-growth andhigh-margin markets

Maximize value for ALL Atos’ stakeholders

16

Fully financed
turnaround plan for
TFCo to bring it back to
Free cash flow
positive by 2026, while
keeping optionality toparticipate in market
consolidation

TWO DISTINCT COMPANIES, TWO LONG-TERM STRATEGIC VISIONS

SpinCo (Evidian)

17

TFCo (Atos)▪

Create a digital and tech leader and talent hot spot▪

▪

Establish new digital and tech brand and reposition
the portfolio

Create an established leader in digital workplace,hybrid, multi and next-gen cloud services▪

▪

Capture market growth momentum and premium
pricing in focus areas through proprietary assets/IP
and deep expertise

Drive full transformation of sales & delivery to
unlock full value potential▪

Capitalize on growing demand for high-end IT
infrastructure▪

Develop strategic partnerships with hyperscalersand software vendors to implement solutions at
scale and lead/participate in ‘big ticket’ digitaltransformations projects▪

Drive value creating transition to hyperscaler cloudand capture associated Iaas growth opportunities inpartnership with SpinCo▪

Grow footprint in sensitive critical industries andapplications

TWO DISTINCT COMPANIES TO OPTIMIZE THE EXECUTION OF AN
AMBITIOUS TRANSFORMATION PLAN

SpinCo (Evidian)€0.4 bn
Investment in
SpinCo’s growthand margin
acceleration(2022-2026)

▪
▪
▪
▪

Boost commercial performance
Grow and adapt talent pool
Drive focused R&D
Develop capabilities

TFCo (Atos)€1.1 bn
Investment inTFCo
turnaround(2022-2026)

▪
▪
▪
▪
▪

Rationalize portfolio
Reset cost structure
Stabilize revenue
Pivot towards growth
Upskill talents

A €1.5 bn total transformation investment over 5 years

18

WORLD CLASS AND HIGHLY EXPERIENCED TEAMS WOULD LEAD
THOSE TRANSFORMATIONS…
SpinCo (Evidian)

19

Philippe Oliva
SpinCo CEO

Anil Agrawal
SpinCo CFO

Rakesh Khanna
Digital CEO

Jean-Philippe Poirault
BDS CEO

TFCo (Atos)

Nourdine Bihmane
TFCo CEO

Laurent Barbet
TFCo COO

Darren Pilcher
TFCo CFO

…THAT WOULD DRIVE STRONG PERFORMANCE IMPROVEMENT
SpinCo (Evidian)
Where we werein 2021

Where we want to be
in 2026€7 bn

Revenue€4.9 bn(% FCF conversion1)1.

20expressed in % of OMDA pre-IFRS 16€5.4 bn

Where we want to be
in 2026

Stabilizationin 2025

7.8%€148 m30%(1.1)%>400 bps€700 m75-80%
x4.5-5.0 in 5 years

Back togrowth>5%

12%

FCF before interestand tax

Where we werein 2021 (excl. UCC)

>7% CAGR

Operating Margin(% of rev.)

TFCo (Atos)

Return to
profitability
in 2025€150 m45%€(507) m

Return to FCF
generation in 2026

ATOS GROUP 2022 CURRENT TRADING TRENDS
2022 Full-Year guidance

1.

21

Current Trends

Revenue growthat constant currency(0.5)% to +1.5%

RobustOperating margin(% of rev.)

3% to 5%Lower Half ofthe range

Free cash flow 1€(150) m to €200 m

RobustExcluding additional costs related to the transformation planAS PART OF THIS CONTEMPLATED TRANSFORMATION PLAN, WE
WILL ALSO ACTIVELY MANAGE OUR PORTFOLIO

We intend to sellc.€700 m of noncore assets by 2023

22

Most of theidentified assets arein the SpinCo
perimeter and havealready attracted
significant inboundinvestor interest

Diane Galbe
Atos Chief Strategy & Sustainability
Officer & General Secretary

AGENDA

01. Vision and Strategy

01. Vision and Strategy
02. Managing the transition
03. SpinCo
04. TFCo

05. Financials
06. Concluding remarks
24THE PROJECT WOULD TAKE EFFECT THROUGH DEDICATED
GOVERNANCE AND OBJECTIVES
Today(tax, legal, financial operational, HR structuring)

Study phase

Transformation

2023

SpinCo acceleration plan

(Evidian)

Two separate management structures and objectives
with specific commercial & delivery targets
Two roadmaps would be executed

TFCo turnaround plan

Carve out
Deliver carve-out within 12/18 months while maintaining
focus on day-to-day operations, talent retention,customer relationship and short-term performance25

Two Listed Entities

Subject to Social partners processes(Atos)

2024

ATOS HAS A CLEAR ROADMAP TO MAINTAIN UNABATED FOCUS
ON OPERATING PERFORMANCE DURING THE STUDY AND
POTENTIAL CARVE-OUT TRANSITION PHASE

Customerengagement

Employeeretention▪ New management▪ Visibility on future

governance in sales anddelivery in place▪ Dedicated sales
incentives to capture
value during transition
period▪ Transparent
communication ofactivities and seamless
transition

organization, job
perspectives and benefits
protection▪ Allocation of teams
based on capabilities andfuture needs▪ Close alignment withsocial partners▪ Change management

Supplier &operations
continuity▪ Comprehensive strategic▪ Project Managementagreement between
entities to be put in place

Office established▪ Stand-by recruitment for
Day-1▪ Negotiation with thirdparties to minimize
dis-synergies▪ Contractual services▪ Master planning & rapid
cadence▪ Dedicated teams for
implementation▪ Mitigation of one-off
standup costs

support during transition
periodOperational focus

26

Carve-out
management

Carve-out focus

THE OBJECTIVE WOULD BE TO COMPLETE THE PROJECT BY
H2 2023
Envisaged transaction timeline
By Q3 2022
Finalization of tax, legal,
operational structuring analysis

From Q4 2022 to H2 2023:
Execution of the split / carve-out
Today• Employee consultation process

H2 2023

Capital Markets Day• Creation of a new entity gathering Digital + BDS assets andliabilities (SpinCo / Evidian)

OGM of Atos shareholders

Launch of the in-depth
study of the project

Listing and distribution of Evidian shares(preferred scenario at this stage)
Partial spin-off of 70% of SpinCo to Atosshareholders
Remaining 30% stake in SpinCo to bemonetized to refinance part of TFCo’s
turnaround costs

27

MANAGEMENT TEAM ORGANIZED TO DELIVER ON BOTH TOP
PRIORITIES GOING FORWARD: EXECUTION OF PROJECT AND
DAY-TO-DAY BUSINESSGroup management incharge of executing
the potential separation
process whilst
maximizing value
creation

SpinCo and TFCo
management focusedon client development,
performance and cash
flow generation

28

Rodolphe Belmer

Diane Galbe

Stéphane Lhopiteau

Paul Peterson

Atos CEOAtos CSO

Atos CFO

Atos CHRO

Philippe Oliva

Nourdine Bihmane

SpinCo CEO

TFCo CEOPhilippe Oliva
SpinCo Chief Executive Officer

AGENDA

01. Vision and Strategy

01. Vision and Strategy
02. Managing the transition
03. SpinCo
04. TFCo

05. Financials
06. Concluding remarks
30

SPINCO (EVIDIAN): A LEADING PLAYER IN HIGH-GROWTH DIGITAL
TRANSFORMATION, BIG DATA AND CYBERSECURITY MARKETS+5%€4.9 bn

FY 2021 revenue

FY 2021 est. organic
revenue growth

7.8%

FY 2021 operating
margin

Cloud

Digital Security
9%15%

SpinCo54%

Employees1

70+Countries of operations

N°1 Worldwide in Managed
Security Services

Revenue breakdown

Application
Development

59,000Gartner

Top 3 Worldwide in Supercomputers
14%

Advance Computing

8%
Transformation

Hyperion

Leader in Data & Analytics &Cloud Enterprise Solutions
Gartner

Top 10 in SAP S/4 Hana
HfS
31

1. Indicative and provisional figure as c. 6,000 Atos employees are still in the process of being allocated. If a decision is made to move forward with the envisaged project, full allocation is expected to be completed at
the close of the project.

SPINCO (EVIDIAN) WOULD COMBINE TWO CORE COMPETENCIESOF ATOS: DIGITAL AND BIG DATA & SECURITY (BDS)
SpinCo (Evidian)

Bringing together deep expertise and proprietary technology to establish leadership in secure digital

DigitalBDS

Helping organizations to evolve towards
Virtual Enterprises with Physical Presence€3.5 bn

FY21 revenue
DigitalTransformation32

50,000

Employees1
Application

Cloud

Helping organizations with digital security andadvanced data processing€1.4 bn

FY21 revenue
DigitalSecurity

9,000

Employees1
Advanced
Computing

1. Indicative and provisional figure as c. 6,000 Atos employees are still in the process of being allocated. If a decision is made to move forward with the envisaged project, full allocation is expected to be completed at
the close of the project.

SPINCO (EVIDIAN) WOULD HOLD STRONG POSITION IN KEY TECH
AREAS

Visionary Public
Cloud(Gartner - 2022)#1 worldwide
in Managed
Security(Gartner - 2022)

33

Leader in Data
& Analytics(Gartner - 2022)#3 worldwide inSuperComputing(Hyperion - 2022)“Leader ofleaders”
in Edge/AI(ISG - 2022)

SPINCO (EVIDIAN): STRONG COMMERCIAL AND MANAGERIALSYNERGY OPPORTUNITIESA joint go-to-market for security and digital

Fertilization opportunities

To ensure commercial efficiency and scale

To drive growth

Healthcare & Life
Sciences

Resources &Services

Common industry
approach

Telecom, Media &Technology

34

BDS to fertilize Digital
customer base

Manufacturing

Financial Services& Insurance

Public Sector &DefenseBDS
Leading edge
cybersecurity
advisory andmanagedprotection
services

DigitalMajor customer
base in Cloud
services

TWO CORE COMPETENCIES WELL POSITIONED TO CAPTUREATTRACTIVE MARKET GROWTH
DigitalMain activities

35

BDS
2021 - 2026
Market growth1(CAGR)

Main activities

2021 - 2026
Market growth1(CAGR)

Digital Transformation

10%-11%

Advanced Computing

12%-14%

Application

5%-6%

Digital Security

7%-8%

Cloud (Public and Hybrid)

10%-12%

1 Total market including not addressed portionSPINCO (EVIDIAN) WOULD PURSUE ATOS’ ENVIRONMENTAL JOURNEY
SpinCo would define an ambitious
decarbonization target…

SpinCo would
inherit Atos’ deep
commitment tosustainability andwould define its
own ambitious
environmental
program to reduce
its carbon
emissions36...building-up on sustainability offerings to help our customers reduce
their carbon footprint

Green HPC

EXA1

Most powerful andenergy efficient HPC in
Europe based on
General Purposes CPUs

A to Zero

Decarbonizationlevel agreement

Net Zero strategy& implementation
advisory

15 to 20% CO2

Carbon footprint
calculator

Due diligence

Dashboard & Compliance
Reporting (e.g. Carbon
Disclosure Project)

Carbon offset/ credits tocustomers

footprint reduction
commitment

3rd party audit validation

SPINCO (EVIDIAN) MEDIUM TERM OBJECTIVES

Revenue

2021

2026

€4.9 bn€7 bn+7% organic 22-26 CAGR
(based on 2022 expected revenue of c.€5.3 bn)

Operating Margin(% of rev.)

FCF before interestand tax(% FCF conversion1)

7.8%

12%

€0.15 bn
30% conversion€700 m75-80% conversion

Implementation of the Acceleration Plan

Leverage target below 3.0x as of 20241.

37

expressed in % of OMDA pre-IFRS 16

A SEASONED MANAGEMENT TEAM WITH SUCCESSFUL TRACK
RECORDS•••••25+ years of experience
Joined Atos as Chief Commercial Officer in 2022
Previously Chief Commercial Officer at Eutelsat (2018-2022)
Held senior management positions at IBM (Vice President for
Integrated Technologies, Vice President for Cloud Services andHybrid Services in North America)
Graduated from ESIC Business School

Philippe Oliva

Anil Agrawal

SpinCo CEO

SpinCo CFO

•
•
•
•
•

Digital•••Rakesh Khanna
Head of Digital•

35+ years of experience
Joined Atos as CEO of Atos Syntel in October 2018
Previously held positions at Syntel (COO from 2005 to 2016,CEO and President from 2016 and 2018)
Graduated from SVKM’s NMIMS

BDS
•
•
•
Jean-Philippe Poirault
Head of BDS•

John Van Geel
COO

•
•
•

•

30+ years of experience
COO of Digital since March 2022
Joined Atos in 2011 as Global Transition Director and held
several positions within the IT Solutions and Services business
unit
Graduated from INSEAD, TIAS and Tilburg University••
Cyril Dujardin
COO

•
•

•

38

20+ years of experience
Joined Atos as CFO of Atos Syntel in October 2018
Previously CFO of Syntel (2015-2018)
India Chartered Accountant
Graduated from INSEAD, IIM Bangalore and Jai Hind College

30+ years of experience
Joined Atos as CEO of Atos Southern Europe in 2019
International Executive of the Telecom and Cloud Industries:— Vice President of Worldwide Telecom Industry Business Unit
at Amazon Web Services AWS (2018-2019)— SVP- Head of IT & Cloud Business Unit at Ericsson- memberof the Executive leadership team (2011-2017)— President of the Multi-media – IT – Telecom Business
Division at Alcatel Lucent (2004-2011)
Graduated from ESTP and CentraleSupelec
20+ years of experience
Joined Atos as Head of Mission Critical Systems Business Linein 2015 and became Head of Digital Security in 2021
Experienced executive in the Security and Defense industry
Previously held senior management position in Morpho (nowIdemia) including CEO of Morpho Detection International andManaging Director of Morpho Australasia
Graduated from Ecole Polytechnique and Ecole
Nationale des Ponts et Chaussées

Rakesh Khanna
Digital Chief Executive OfficerSPINCO01.

Deep Dive on Digital

02. Deep Dive on Big Data & Security

40

DIGITAL : A LEADING DIGITAL TRANSFORMATION PARTNER€3.5 bn

FY21 revenue

50,000

Balanced Global Footprint
Transformation
11%
Cloud
13%

Engineers & Experts1
Of which 9,000 SAP Experts

3 global and 13 local
delivery centerswith world-classcampuses in India

Application
76%

CentralEuropeSouthern
Europe23%

22%

AmericasNorthern
Europe &
APAC

32%

23%

+6% FY 2021 est.

organic revenue growthHigh single digit
FY21 OM%
41

Visionary in Public Cloud
Leader in Data & Analytics

Leader in Mainframe Services: Managed
Services, Modernization, Transformation and
Mainframe as a Service

Leader: Sustainability
Enablement Technology
Services

Leader - Digital Business Solutions & Services

Leader: Service Now
Solutions

1. Indicative and provisional figure as c. 6,000 Atos employees are still in the process of being allocated. If a decision is made to move forward with the envisaged project, full allocation is expected to be completed at
the close of the project.

WE POWER DIGITAL EXPERIENCES FOR CLIENTS

Enable clients to evolve to “virtual enterprises with physical presence”

Transformation
Imagine the possibilities
Orchestrate data andtechnologies to enable
new business models

11%

Smart Platforms
Digitize your processes
Deploy Next Gen
Applications to deliveragility and reliability

Accelerate throughthe CloudDe-risk the journey tothe future landscape
4276%Net. Zero
Transformation

Business
Transformation

Data, AI &Analytics

Internetof Things

CustomerExperience

Application
Services

DigitalAssurance

ServiceNow
Solutions

DigitalIntegration

Business
Outcome
BridgeSAP
SolutionsApplication
Modernization

Salesforce
Solutions

Microsoft
Solutions

Digital Business
Operations

Cloud Advisory
Services

13%
Cloud Operations &Managed Services% share of revenue

Cloud Design &Build Services

WE POWER DIGITAL EXPERIENCES FOR OUR CLIENTS…
Integrate, scale and expand digital capabilities across our client base

Major customers across industries and geographies …

EU
Institutions… partnering with Digital to transform their businesses

43

Siemens: 20+ ERPs to hyper-scaler
cloud landscape

Stellantis: Software factory forconnected car landscape

Sanofi: Smart Factory 4.0 across 80
global factories

Humana: Health Insurance from Claims
to Wellness: 200 repositories to Azure
DevOps & Salesforce cloud

EDF: Develop, maintain and test the IT
new nuclear & Nuclear Digital Twin

Siemens: Global Energy Consumption& Carbon Emission tracking across
1800+ locations on Mendix based
platform

… LEVERAGING STRONG PARTNERSHIPS AND STRATEGICACQUISITIONS
Integrate, scale and expand digital capabilities across our client basePartner Ecosystem
Transformation

Smart Platforms

44

Strategic Acquisitions

DIGITAL WILL BE A GROWTH SEGMENT IN IT SERVICES FOR
THE FORESEEABLE FUTURE
Driven by amplification of technology intensity across industries
Headroom to grow revenue and margins

Clear path to overcome barriers

2021 Revenue
Growth %25%

1

GrowthNew identity
Simplified governance to address fragmented
ownership
Increase customer focus
Simplify portfolio
Scale up: acquisitions, pockets of expertise
Leverage partner ecosystem

2

Profitability
Industrialization of delivery
Skill Mix
Productivity
Right Shoring

15%

Atos Digital ‘26
Digital market
growth c. 8%(2021-2026)

5%

Atos Digital ‘21

(5)%
0%

7,5%

15%

22,5%

2021 OM%
Players in transition
with infra base45

Global with local
presence, mixed
digital

Source: Atos team analysis, analyst reports, public market data. Disclaimer: illustrative only

Global A-tier, Indian
Majors & Digital PurePlay

WE WILL ACCELERATE GROWTH THROUGH INCREASEDCUSTOMER AND SALES FOCUS
Additional investments

Key Actions

Recalibrate accounts and sales
teams to sell Digital services andleverage alliance ecosystem

1

Hire high caliber Digital specialists
to shape transformational deals

2

Simplified portfolio: streamline acquisitions and partner
capabilities with clear go-to-market approach around clientbusiness outcomes. Execute focused cross sell campaigns

Align sales incentives

3

Drive new logos:• Enhance sales / account organization & capabilities• Leverage successes and scale pockets of expertise likeconnected car, connected appliances, Worldgrid etc.

Total additional OPEX of€70 m over 5 years
46

Focus to increase digital penetration in top 25 high potential
accounts through fertilization & large deals. Embed Digital
experts in account teams to drive growth.

Supported by alliance ecosystem (hyperscalers, enterprisepartners) and large deal team

WE WILL INVEST TO IMPROVE OUR DELIVERY MODEL AND
ENHANCE PROFITABILITY
Additional investments

Industrialize and modernize delivery
platform, using Automation & AI 1st
deliveryAccelerate reskilling of delivery teams
to Digital skillset (e.g. cloud, AI etc.)
Transform & restructure delivery teams

Total RRI cost of€300 m over 5 years
47

OperatingMargin impact

Key Actions
1

Increase billability & delivery productivity++

2

Right shoring+

3

Reduce subcontractor usage+

4

Balance talent pyramid+5

Incremental margin on new business++++

20-50bps++

50-150bps+++

150-200bps

TOP 3 DELIVERY MODEL LEVERS – SIGNIFICANT IMPROVEMENTPOTENTIAL
Transformation
levers1

Digital 2021

Utilization in high-cost
countries

Right shoring

Labor mix - Share of(% of available hours)

workforce in low-cost
countries

0

81.7

0

66

(% of FTE)

3

48

Reducesubcontractor
usage

Industry average

Delivery KPIs

Increasebillability anddelivery
productivity

2

Digital 2026

Subcontractor spend(% of revenue)
0

10

13.9

85.4

75

77

91.0

SUMMARY – DIGITAL 5-YEAR PLAN
Establish a leading digital transformation partner, capturing therevenue and margin potential of a growing market

Partner of choice to major customers across geographies andindustries
Leverage strong partnerships across the ecosystem & pastacquisitions
Clear, realistic acceleration plan to deliver profitable growththrough:- Increased customer and sales focus- Improved delivery model transformation
49

Jean-Philippe Poirault
Big Data & Security Chief Executive OfficerSPINCO01.

Deep Dive on Digital

02. Deep Dive on Big Data & Security

51

BIG DATA & SECURITY (BDS)
THE TRUSTED DATA INTELLIGENCE PARTNER€1.4 bn
FY21 revenue

9,000
Engineers& Experts1

Double-Digit
Revenue growth ‘16-’21

DigitalSecurity
delivering
end-to-end trust,business continuity
and resilience

Mid-Single Digit
FY21 OM%

High-Single Digit for
Digital security

8% of revenue
invested in R&D (2021)

52

DigitalSecurity
51%

FY21 revenue

Advanced
ComputingGlobal footprint

bringing
intelligence andcreating businessvalue using AI/ML
across the digitalcontinuum

Doubled internationalpresence in 4 years

Advanced
Computing49%

Growing in all geographies
CentralEurope24%
Americas
12%
RoW
6%

FY21 revenue

Southern
Europe35%

Northern
Europe & APAC
23%

1. Indicative and provisional figure as c. 6,000 Atos employees are still in the process of being allocated. If a decision is made to move forward with the envisaged project, full allocation is expected to be completed at
the close of the project.

AT THE HEART OF THE DIGITAL ECONOMY: SECURED PROCESSING
AND ENRICHED DATA
x4
Global data volume
by 2025

End-to-end cyber security will become a matter of survival
for exposed organization
getting up to 800 cyber attacks per second in 2022
BDS addressing a market growing at +8.3% CAGR (2019-2024)1

Shiftfrom datacentersto hybrid cloud & edge

Creating radicallynew security
and computing
challenges

53

1.
2.
3.

Dedicated
ComputePublic Cloud

Edge & 5G

Dedicated application requiring
Edge/5G computing will becomesupercomputers processing billions
the next digital frontier to handle criticalof billions ops/sec to solve complex
AI algorithms and to face latency,
data challenges in simulation research,
bandwith & security challenges
AI/ML…
BDS addressing a market growing at BDS addressing a market growing at+5.8% CAGR (2019-2024)2+10.8% CAGR (2019-2024)3

Source Gartner: Managed Security Services & adjoining security segment.
Source: Hyperion Large Supercomputers.
Source Gartner: Combination of High-end x86 servers and Edge Compute,PREPARED FOR THE FUTURE: BDS HAS A MARKET LEADINGPOSITION COMBINING COMPUTE, SECURITY AND AI/ML
Digital Security

Unique synergies
between security
and computing
with AI/ML at theircore answering
Digital &sovereignty
challenges

Cybersecurity Services, Products
and Mission-critical Systems#1 world leader in Managed
Security• Consulting, integration, managed services• Sovereign solutions (e.g. identity and dataprotection products) & IoT Security• Missions-critical systems in Defense,
Homeland Security, Energy….

(Gartner – 2022)

BDS growing above market
AI

High Perf. Computing & Quantum

Business Computing & Edge

• Hybrid Supercomputing & Exascale• AI supercomputing & Quantum computing• High End Servers• Integrated AI/Edge solutions (servers,
software, Services)#3 world leader in Supercomputing“Leader of Leaders”(Hyperion – 2022)

Unique manufacturer in Europe
Main competitors: HPE, Dell, Lenovo…

BDS growing in line with market
Advanced Computing
54

Main competitors: NTT Data, IBM…

in B2B Edge/AI & 5G
(ISG – 2022)

Main competitors: HPE, IBM…
BDS growing above market

LEVERAGING STRONG PARTNERSHIPS AND STRATEGIC ACQUISITIONS TOEXPAND DIGITAL CAPABILITIES ACROSS OUR CLIENT BASE
Digital Security

Partner Ecosystem

Strategic Acquisitions
Security
Services

Creating
Technology
Breakthrough,enriching Portfolio& developing new
Channels thanks
to StrategicPartners &Acquisitions

Secure coms
/5G
Digital ID

AIAI
software &Services

HPC/AI cloudorchestration

Advanced Computing
55

R&D INVESTMENT AND CO-INNOVATION WITH CLIENTS CREATINGSTRONG DIFFERENTIATORS
Digital Security

Leading AI/ML security engine positioning Atos #1 in Managed Security

8% of revenue
invested in R&D
1,800 live
patents

Bringing the trusted cryptography layer towards hyperscalers / cloudApplication provider
Unique sovereign Data Intelligence alternative to Palantir for EU industries… and much more!
AI+50 new patents in
2021

Round the clock
R&D with 1,200
PhDs &Engineers

Best efficiency & lowest CO2
footprint The #1 in GREEN 100
supercomputers

1st hot water Direct Liquid
Cooling technology in the world
leading to Highest computedensity

Preparing the future with 1st
Quantum Programming Machine in
the world

Patented solutions for HPC as aservice bridging from Advance
Computing to public cloud

Advanced Computing
56… and much more!

BRINGING HIGHLY DISTINCTIVE HORIZONTAL & VERTICALSOLUTIONS TO BUSINESS AND MISSION-CRITICAL LEADERS
Digital Security

700+
customers72%
of revenue
coming from
customers
who have beenwith us for>5 years

Advanced Computing
57

Managing security for thelargest event worldwide,with 3+ bn audience

Building next generation
Battlefield systems for French& European Defense

Protecting Commonwealth of
Virginia with Next Generation
Cybersecurity

Protecting sensitive patient
data in the Cloud on Amazon
Web Services

AI

Enabling advanced modelingof the earth to master weather& climate change

Delivering Computer Vision
powered airport security for
millions of travelers

Accelerate research while
keeping control of energy
consumption

Offering high-performance
BareMetal cloud for businesscritical applications

DIGITAL SECURITY: SUSTAINABLE ABOVE-MARKET ORGANICGROWTH OVER 2022-2026
Digital Security:
Where we stand today

2022–2026 Growth drivers

Market leader position

1

Strengthening our Portfolio with Partners and Assets (SaaS,
Sovereign solution,…)Broadened footprint, talents baseand offering thanks to recent
acquisitions

2

Reinforcing our R&D especially in the domain of Cyber assets
and Automation

3

Partnering with hyperscalers and developing joint offerings andgo-to-market strategies

4

Boosting consulting activities in cyber securities (for Could or
IoT for example) by capitalizing recent acquisitions, such as SEC
Consult

5

Leveraging our Customer installed based and grab additional
market share in US, Europe, Middle East and Africa.

Sizeable Automation & AI/ML
capabilities and IP generated in
Cybersecurity creating entry barrier
to competition

58

ADVANCED COMPUTING TO RESUME GROWTH LED BY PORTFOLIOREPOSITIONING
Advanced Computing:
Where we stand today
Strong impact of components shortageon HPC business
Repositioning of HPC portfolio
underway• Focus on high-end market HPC,
supported by increased R&D spending• …however high-end HPC market at
low-end of cycle in 2021-2022
Well positioned in high-end servers andEdge AI business embarking software

59

2022–2026 Growth drivers
1High-end HPC market to generate significant
opportunities from 2023 onwards
Growth from Exascale and Petascale HPC

2

Successful inroads into promising HPC-as-a-Service
market (double digit growth over the period)3

New dynamic in Edge & AI supported by vertical use
case approach (Computer Vision, …)

4

Improve Go to Market Mix• Direct sales efficiency and ongoing recruitment plan
• Channels (e.g. high-end servers OEM)
• Synergies with Digital business line

BDS OPERATING MARGIN TO STEP UP AND REACH LOW
DOUBLE-DIGIT BY 2026
Key levers to increase our margin
1

Volume effect• HPC recovery (cycle and components availability)
and continued strong growth in Cyberservices
leading to better fixed cost absorption

2

Portfolio evolution towards higher-margin activities• Sovereign cloud services, Security Consulting, BigData
software, as-a-service & dedicated vertical offerings

3

Right shoring• On-shore when needed (Security Consulting, etc..)• 70% of the net evolution in low-cost countries

4

Automation & Scale• Especially in Managed Security Services• Maximization and optimization of our GDC

Revenue effects

Costs baseimprovement

Total RRI cost of€40 m over 5 years
60

Margin Impacts

++
+++
+++
++
++

50-150bps+++

150-200bps

SUMMARY – BIG DATA & SECURITY 5-YEAR PLAN
Global leader in Digital Security and Advanced Computing, two highgrowth activities in the new Digital Economy and answering tosovereignty challenges
Strong R&D, co-innovation with our customers and strategic
partnerships to deliver superior value 700+ customers worldwide(1800 patents)
Combination of Digital Security and Advanced Computing
towards dedicated Vertical Industries
Acceleration plan targeting:61-

Step-up in revenue growth through HPC portfolio repositioning and recovery-

Keep on outperforming Digital Security market growth-

Step-up in operating margin driven by both volumes and cost base improvements

BreakNourdine Bihmane
Tech FoundationCo, Chief Executive Officer

AGENDA

01. Vision and Strategy

01. Vision and Strategy
02. Managing the Transition
03. SpinCo
04. TFCo

05. Financials
06. Concluding remarks
65

TFCO
01.

Overview of the Tech Foundations Business02. Our performance to date and underlying challenges
03. Our turnaround plan

66

TECH FOUNDATIONS: POWERING TECHNOLOGY INFRASTRUCTURE
TRANSFORMATIONS TOWARDS A MODERN, HYBRID FUTURE

48,000€5.4 bn

Experts1

FY 2021 revenue

70+

(12)%

c.(1)% OM

Countries of operations

FY 2021 revenue growth1

FY 2021

Excluding UCC

Excluding UCC

Excluding UCC

Distribution of Tech Foundations revenues by Service LineBusiness Process
Outsourcing
10%
Professional
Services

22%

Private Cloudand Platforms

14%

67

33%

A Global Leader with strong
foothold in Europe+1,200Excluding UCC

21%

Empowering CIOs for trusted mission-criticaloperations

for Infra. & Digital Workplace

Core IT
Services
DigitalWorkplace25+ years

Core
Infrastructure

Global & diversified Customers across industries

1. Indicative and provisional figure as c. 6,000 Atos employees are still in the process of being allocated. If a decision is made to move forward with the envisaged project, full allocation is expected to be completed at
the close of the project.

75% OF CIO SPEND COVERED BY TECH FOUNDATIONS PORTFOLIO,DESIGNED TO MEET ONGOING AND FUTURE CIO PRIORITIESServiceable market of €490+ bn globally
Core Infrastructure

Digital Workplace

Professional Services

BPO

Intelligent
Networks

Private Cloud &InfrastructureManagement

Intelligent Care
CenterAdvisory &Professional
Services

Digital Customer
engagement

Application
Operations

Mainframe
Services

Digital Workplace
Platforms

Integration &Migration Services

Customeranalytics

Data Management

Sovereign CloudIntelligent
collaboration

Smart
Infrastructure

Multi Cloud
Management

Engaged Employee
Experience

Green data center

68

Private Cloud &Platforms

Decarbonization

Source: IDC CIO Agenda 2022 Predictions | Gartner 2022 CIO and Technology Executive Survey: Changes in Technology Investments

Customer journey
designGLOBAL LEADER RECOGNIZED FOR INNOVATION AND TRUSTEDPARTNER OF CHOICE
Digital Workplace

Leader in Outsourced Digital Workplace

Leader in Data Center Outsourcing and Hybrid

Services for 6 consecutive years(Gartner 2022)

Infrastructure Managed Services for
9 years in Europe and 4 years in North America(Gartner 2021)

Preferred partner recognition by top tech vendors

69

Hybrid InfrastructureGLOBAL, DIVERSIFIED CUSTOMER BASE WITH ABOVE-MARKET
SATISFACTION RATE
+1,200 customers supported globally

Earning trust of our clients

Core Infrastructure

Leading satisfaction rate vs peer's average

Private cloud and Platforms+20 p.p. above industry
NPS

Digital Workplace

Long lasting relationships with top clients
Professional Services

Average relationship1

BPO

70

1.

+10-yearFor 700 customers contributing to 80%+ revenue>94%

Renewal win rate inEuropeVOICE OF THE CUSTOMER – OLYMPIC & PARALYMPIC GAMESSupporting the digital backbone as the end-to-end digital transformation and cloud orchestrator“As a Worldwide IT Partner, as well as the lead integrator,
Atos plays a key role in our approach and in the
IT orchestration, and helps deliver safe and secure Games.”
Thomas BachPresident of theInternational Olympic Committee

71

STRONG DATA CENTER FOOTPRINT SUPPORTING MISSIONCRITICAL WORKLOADS
111 data centers across 48 countries

Numberof datacenters

Mission critical infrastructure
Northern Europe

25

Central Europe

22

North America

550k+

On-prem and virtual servers

570k+

24

MIPS
Southern Europe

15

Growing Markets

25

4.3+ mmanaged devices

12k+

72

Sovereign cloud

60% in data sensitive regions

Network and cloud specialists

Edge cloud

50%+ in metropolitan areas

Proprietary AI/ML assets

High performance

85% Tier 3

to enable digital labor at scale

INDUSTRY LEADING SUSTAINABILITY AGENDA
TFCo would define an ambitious
decarbonization target…

TFCo would inherit
Atos’ deep
commitment tosustainability andwould define its
own ambitious
environmental
program to reduce
its carbon
emissions73...and our sustainability offerings are helping our clients reduce
their carbon footprint

Green and Hydrogendata centres

Digital Workplacegreen offering

Decarbonizationlevel agreement

70%+ data centers

Large-scale device

15 to 20% CO2

on renewable electricity

refurbishment

World’s first hydrogendatacenter

Solutions for Circular IT
economyValidated by 3rd party
audit

Zero waste technology

Carbon offset/ credits tocustomers

footprint reduction
commitment

SUMMARY: OUR SOURCES OF DIFFERENTIATION

Innovative Digital Workplace and hybrid cloud offerings
Leading data center footprint in Europe
Deep expertise in highly regulated data intensive industries
Highly skilled workforce driving strong customer satisfaction and retention
AI/ML powered automation assets
Leader in sustainability and digital sovereignty

74

TFCO
01.

Overview of Tech Foundations Business02. Our performance to date and underlying challenges
03. Our turnaround plan

75

TECH FOUNDATIONS REVENUE DECLINED IN 2021 DRIVEN BY
CORE INFRASTRUCTURE BUSINESSTech Foundations EUR bn
(12)%
6.1
DigitalWorkplace
Professional
Services
Private Cloudand Platforms’20-’21
growth(7)% excluding VAR

1.0

5.4

0.7

1.1

1.1

0.8

1%

1.2

6%

1.5

(25)%

(48)%
0%

Core
Infrastructure

2.0

VAR

0.7

BPO

0.5

0.4
0.5

2020

2021

2021 Operating margin: (1.1)%
76

6%

Performancevs market

Above market
In line with market
Below market
Much below market

UNDERLYING CHALLENGES DRIVING SUBOPTIMAL PERFORMANCETO DATETop line

Bottom line

Move to verticalization led to de-emphasized
Infra business

Unfavorable labor footprint•

Contracting discipline••

Loss of critical sales talent
Delivery challenges due to fragmented
accountability
Inability to pursue infrastructure centric large deals

Business portfolio
•
•

•
•
•

•

Fragmented portfolio across 7-8 service lines
Delay in modernization (sub-scale consulting,hyperscaler partnership)

Lower offshoring, top-heavy pyramidHigh reliance on third party subcontractors
Stranded cost in high social costs countries

Unfavorable terms impacting margins

Low asset utilization•

Underperforming data center investments

Our turnaround plan addresses each of these challenges

77

TFCO
01.

Overview of Tech Foundations Business02. Our performance to date and underlying challenges
03.

78

Our turnaround plan

CLEAR TURNAROUND PLAN IN PLACEREFOCUSRECOVER

Stabilize revenue in2025 and pivot to
growth in 2026

Reset cost structure
Rationalize portfolio topave the way for
turnaround▪ Reshape the portfolio▪ Sales funnel, large deal build up▪ Ramp up the Management team

79>600 bps

REBOUND
Drive growth withnext gen offerings

OM turnaroundby 2026c. €150 m FCF
before interest andtax in 2026

REFOCUS: TARGETED ACTIONS UNDERWAY TO TURNAROUNDUNDERPERFORMING CONTRACTS
Tech Foundations Revenue breakdownby project margin (%), 2021
5.4
At/ above industry
project margin

Example of key actions
for the Refocus phase
Commercial• Price reset• Add-ons and cross sell of higher

29%

margin offerings• Proactive renegotiation withcustomers• Contract discipline
Below industry
project margin

58%

Operational• Reduce overhead• Optimize delivery

Negative projectmargin80

Financial
13%• Reduce billing leakage

RECOVER: MULTIPLE LEVERS TO RESET COST STRUCTURE

Adjust labor
location &pyramidTransform thepeople supply
chain

Increase delivery
productivity

Reset stranded
cost€480m of annual cost reduction by 2026
c.€850m for restructuring and c.€80m for delivery reskilling over 5 years

81

Optimize 3rd party
spend and data
centers footprint

RECOVER: TURNAROUND PLAN ASSUMES 10-30% IMPROVEMENTACROSS KEY METRICS … BUT THE AMBITION IS HIGHER
Turnaround levers

Delivery KPIs
Labor mix1

Adjust labor location& pyramid(% of FTE)

Pyramid junior %DC Utilization

Optimize 3rd party spend and(% capacity usage)

data centers footprint

Sub-contractor cost
(spend % of revenue)

Transform the people
supply chain

1.

82

Excluding BPO

Billable resource utilizationin high-cost countries(% of available hours)% improvement vs current
25-30%

30-35%

10-15%
25-30%

10-15%

REBOUND: KEY ELEMENTS OF OUR GROWTH PLAN

Drive revenue
retention

Increase add-on
revenues

Boost large deal
and new logo
hunting

Scale hyperscaler
alliances20%

13% revenue

4% revenue from

15% revenue

improvement inrevenue retention

from add-on, in linewith industry
benchmarknew logos

with hyperscalersc.€120m sales investment (opex)
83

Drive growth in
new offerings/
capabilities
Potential upside;through new offerings
e.g. Edge, Cloud,Sovereign Cloud (notincluded inmanagement plan)

REBOUND: LEVERAGE A STRONG POSITION IN THE CORE TO HELPCUSTOMERS ON THEIR END-TO-END DIGITAL JOURNEY
Managing andmodernizing the core

End to end orchestratorof digital infrastructureCore operations
Private cloudMulti cloud orchestration
Sovereign cloud, Edge cloud

Employee experience
Intelligent collaboration
Device as a service

Persona based experiences
AR/VR enhanced collaboration
Wearables, IoT, Decarbonization

AI enabled services
Cost+, XLAs, SLAs

Modern delivery platform
DLAs, TCO, TTM

Digital platform

Integrated digital platform as
a service
Autonomous operations
Zero trust architecture
Carbon neutral/negative
Subscription based

From focusing on core infrastructure operations to engineering digital backbone
84

REBOUND: OUR PLAN STABILIZES INFRASTRUCTURE REVENUE
POST 2024, WHILE MAINTAINING MOMENTUM ON OTHER
OFFERINGS
Projected growth 2022-26
EUR bnPotential upside through recent andnew offerings

5.0
Private Cloud andPlatforms(9)% p.a.

Back togrowth’24-’26
CAGR, %

Total Infrastructure
revenue stabilizes
in 2024(11)%

0%

Continued
momentum on
Professional services
and DWP

3%

3%

4.1

Core
Infrastructures
Professional
Services
DigitalWorkplace
BPO
VAR

Limited investment planned
2022

85

’22-’24
CAGR, %

2024

2026

PHASED EXECUTION OF TURNAROUND SCHEDULE
Q2 22

Q3 22

Q4 22

Q1 23

Q2 23

Q3 23

Q4 23

Q4 26

Exit non-strategic VAR, turnaround negative margin accounts

REFOCUS
Optimize 3rd party spend
Delivery productivity, transformed people supply chain

RECOVER

Restructuring - low complexity countries

Restructuring - highcomplexity countries

Optimize data center footprint
Drive revenue retention
Boost large deal, new logo wins

REBOUND

Increase add-on revenues

Drive growth in new offerings
86

Initiatives already underway

TURNAROUND COSTS: €200 M IN CAPABILITY BUILDING, AND€850 M ACROSS RESTRUCTURING AND BUILDING TOOLS AND
PLATFORMS
Opex, M€

RRI, M€

Delivery - Reskilling

Sales capability building

Large deal and hunting sales

Incremental sales incentives€200 m42%

28%

ImpactStabilize revenue and pivot

to growth from 2025
87

Investment in Tools and Platforms

15%

20%

10%

Labor restructuringc.€850 m
85%>600 bps
OM turnaround by 2026

TECH FOUNDATIONS MEDIUM TERM OBJECTIVES
20211

Revenue organic

Operating Margin(% of rev.)

FCF before
interest & tax€5.4 bn2026

Back to growthComments•

2022 expected revenue: c.€5.0 bn•

Low point expected in 2024 at
c.€4.1 bn•

Stabilization expected in 2025

(1.1)%>5%•

Operating margin expected to turn
positive in 2025€(0.5) bn€150 m•Expected to increase by c.€50 meach year post 2026

Implementation of the Turnaround Plan

1 Adjusted for UCC

88

A RENEWED MANAGEMENT TEAM AT THE HEART OF THE
TECH FOUNDATIONS TURNAROUND
Zoom on 4 key executives
Laurent Barbet
Chief Delivery Officer

Amy Brown
Head of Human Resources

Darren Pilcher
Chief Financial Officer

Julien Vidal
Head of Sales Specialists

89

Relevant past experience

Nationality• 23 years of experience as leader for global IT operations acrossTech Foundations practices• Global operations leader in Infrastructure & data management division• Has led delivery transformation across different sectors

France• 22 years of experience in the IT industry• Led HR function in North America, working closely with CEO andexecutive leadership team• Has held regional and global roles across multiple HR disciplines

U.S.A• 24 years of experience in leading Infrastructure management andIT services companies• Global CFO roles since the last 6 years• Joined Atos in 2018 as SVP & CFO Business & Platform Solutions

U.K.

• 15 years of experience in IT services industry• Leader for Tech Foundations Large Deals and Group level strategic
engagements• Has led successful sales transformation in multiple sectors

France

SUMMARY – TECH FOUNDATIONS 5-YEAR PLAN
Established leader in Digital Workplace, hybrid, multi and nextgen cloud services with market-recognized assets
Clear and fully funded turnaround plan
- Pivot to growth in 2025
- Operating Margin and cash conversion back in line withindustry standards in 2026

Industry leader in delivering sustainable technology solutions

Revamped org structure, significantly transformed and upskilledemployee base90

Stéphane Lhopiteau
Atos Chief Financial Officer

AGENDA

01. Vision and Strategy

01. Vision and Strategy
02. Managing the transition
03. SpinCo
04. TFCo

05. Financials
06. Concluding remarks
92

We have two clear and ambitious plans under study for each of SpinCo
and TFCo
We have a financing plan to address our immediate funding needs– including €0.9 bn transformation costs over 2022-23
SpinCo and TFCo target capital structures at spin-off would be
adapted to their respective financial profile and would allow themto strive in their respective environment93

2021 FINANCIALS UNDER CONTEMPLATED NEW STRUCTURE
Estimated figures

2021 excl. UCC
2021 Reported

2021
excl. UCC

TFCo

SpinCoRevenue

10,83910,213

5,352

4,861

OperatingMargin3.5%

3.1%(1.1)%

7.8%

FCF
before interestand taxes

(313)

(359)

(507)

148

FCF

(419)

(464)

In € million

Basis of preparation for both the 2021 baseline and the business plans as previously introduced :• Revenue and Operating margin allocated to BL based on customer projects and by profit/costs centers• Flow-down of B/S items into FCF allocated to BL based allocation keys
• Small variances may arise as long as the spin-off is recorded into management tools
94THE OVERALL TRANSFORMATION PLAN UNDER STUDY REQUIRES€1.5 BN IN FUNDING, OF WHICH €0.9 BN OVER 2022-2023
Transformation costs including recurrent RRI1 costs (RRI1 & opex)
(0.0)
(0.1)

€1.1 bnover 5 years

TFCo

(0.1)

(0.4)

(0.0)

(0.0)
(0.1)

(0.0)
(0.0)

€bn

€bn

(0.3)

€0.9 bn €0.2 bn
RRI
Opex

€0.4 bn

(0.0)
(0.2)

(0.0)
(0.1)

(0.0)
(0.1)

(0.0)
(0.0)

(0.0)
(0.0)

2022

2023

2024

2025

2026

over 5 years

SpinCo€0.3 bn €0.1 bn
RRI
Opex

€0.9 bn over 2022-2023
95

1 Reorganization, rationalization & integration costs – below operating margin

FOCUS ON INTERIM FUNDING NEEDS UNTIL POTENTIAL SPIN-OFF
Cash evolution over 2022 and 2023 (in EUR bn) and implied funding needc.€1.6 bn
estimated
fundingneeded until
end-2023

Estimated c.€(1.4) bn cash outflow
c.(0.4)c.(0.9)c.€(1.5) bn debt repaid
Intra-year
WC swingc.(0.3)
(0.7)

c.1.6

3.4

2.8
(0.3)
1.0

Dec-21
cash position

Potential
increase in
WCRTransfor-mation
costs(pre-tax)

Cloudreach

FCF and
other
items

May-2022
Bond

1 Conservatively assuming €500m Commercial Paper balance end-2023 (compared to €1 bn end-2021)

96

Oct-2023
PrivatePlacementc.(0.5)

Estimate forothercurrent
1
borrowings

0.7
c.1.2

Expected
Proceeds
from
Disposals

Strategic
cash

Estimated
Dec-23
cash position

Mininum cash
targetFunding needs

THIS FUNDING REQUIREMENT IS COVERED BY LIQUIDITY AT HAND,
AND WE HAVE ACTIVE DIALOGUE WITH FINANCING PARTNERSc. €1.6 bn
funding needs
until Dec-23€2.4 bn1

Over €1 bn

RCF
maturing Nov-25

Strategic cash

Envisaged financing option to manage transition
period from today until potential spin-off would
consist into 3 parts1c.€1.5 bn Term Loan

1 Of which €2.3bn undrawn as of Dec-21

972

c. €0.9 bn RCF
Existing RCF reduced by amountraised via Term Loan

3

Up to c.€0.7 bn
bridge to disposals
Atos to make up to c. €0.7 bn ofdisposals by 2023 (Out of abroader pool of non-core assets,that have already attracted
significant investor interest)

SPINCO AND TFCO TARGET CAPITAL STRUCTURES AT POTENTIAL
SPIN-OFF WOULD BE ADAPTED TO THEIR RESPECTIVE FINANCIAL
PROFILE
SpinCo (Evidian)

Would bear most of the debt at inception
Strong cash generation enabling quickdeleveraging
Ability to pursue bolt-on M&A
opportunities
Limited costs related to acceleration planover 2024-2026 (€0.1 bn)

TFCo (Atos)

Limited net leverage at spinoff
Negative free cash flow until 2025,
before turning positive in 2026
€0.5 bn turnaround costs over 20242026 …
… to be funded with the disposal of partof its stake in SpinCo, in the preferred
scenario at this stage

The target capital structures for SpinCo and TFCo
would be designed in the coming months if a decision is made98

Rodolphe Belmer
Atos Chief Executive Officer

AGENDA

01. Vision and Strategy

01. Vision and Strategy
02. Managing the transition
03. SpinCo
04. TFCo

05. Financials
06. Concluding remarks
100

SPINCO (EVIDIAN) AND TFCO MEDIUM-TERM AMBITIONSSpinCo (Evidian)
Where we werein 2021

Where we want to be
in 2026€7 bn

Revenue€4.9 bn(% FCF conversion1)
1.

101

expressed in % of OMDA pre-IFRS 16€5.4 bn

Where we want to be
in 2026

Stabilizationin 2025

7.8%€148 m30%(1.1)%>400 bps€700 m75-80%
x4.5-5.0 in 5 years

Back togrowth>5%

12%

FCF before interestand tax

Where we werein 2021 (excl. UCC)

>7% CAGR

Operating Margin(% of rev.)

TFCo (Atos)

Return to
profitability
in 2025€150 m45%€(507) m

Return to FCF
generation in 2026

Bertrand Meunier
Atos Chairman

CONCLUDING REMARKSWe are envisioning a leap forward in our transformation journey to create the conditions to unleash the fullpotential of our businesses
The contemplated split would create two focused and agile listed companies, Evidian and Atos, with the rightcapital structure and management setup, and clear value creation roadmaps

Evidian1•
2•
3•

Leading player focused on the most promising digitaland tech markets: Digital Transformation, Applications,
Cloud, Advanced Computing and Digital Security
Unique value proposition and strong cross-fertilization
opportunities across areas of expertise•1 Established leader in Digital Workplace, hybrid, multiand next-gen cloud services with recognized assets•2 Fully financed turnaround plan to revive growth, reset
cost structure, and unlock cash generation potential•3 Optionality to participate in market consolidation

High-single digit organic growth and operating margin
CAGR above 15%, supported by an ambitious
acceleration plan

Starting today, we will move forward with two fully empowered management teams focused on delivering the strategic
visions and shareholder value embedded in our company
103

Q&A

Thank YOU