H1 2017 results

BezonsJuly 26, 2017

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 2016 Registration Document filedwith the Autorité des Marchés Financiers (AMF) on March 30, 2017 under the registration number: D.17-0274. 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.
▶Business Units include North America (NAM: USA, Canada, and Mexico), Germany, United-Kingdom & Ireland, France,
Benelux & The Nordics (BTN: Belgium, Denmark, Estonia, Finland, Lithuania, Luxembourg, The Netherlands, Poland, Russia,
and Sweden), Worldline, and Other Business Units including Central & Eastern Europe (CEE: Austria, Bulgaria, Croatia,
Czech Republic, Greece, Hungary, Italy, Romania, Serbia, Slovakia, and Switzerland), Iberia (Spain and Portugal), Asia-Pacific(APAC: Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, andThailand), South America (SAM: Argentina, Brazil, Colombia, and Uruguay), Middle East & Africa (MEA: 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 – H1 2017 results

Agenda1.H1 2017 highlights
2.Financial performance

3.Commercial activity
4.Operational achievements
5.Conclusion and Q&A
3 | Atos – H1 2017 results

H1 2017 highlights
Thierry Breton
Chairman & CEO

Atos’ technology leap…
Atos’
Tech Days
in Brussels

Leadershipreinforcement in
Cybersecurity& Big Data
Launch of theworld-firstprescriptive
SOC
Launch of themost powerfulquantum
simulator in theworld

5 | Atos – H1 2017 results

Blue chips
partners to sellbullions

…and a strong execution of our strategy…

Sustainable
revenue

Organic growth
confirmed
between+2% and+3%
6 | Atos – H1 2017 results

ImplementationofBusiness &Platform
Solutionsindustrialization
plan

Full speed
integrationof

S&P

…supports the Atos profitable growthCommercial
momentumMacro
environment

M&A

Key commercial
wins in H1 2017
and strong
pipeline

Positive
momentum inEuropeStill supportive
economy in the
US

Strongpipeline
focused on
all ourstrategic
priorities

7 | Atos – H1 2017 results

H1 2017 key figures (1/2)

Revenue

Organic growthOrder entry€6,311m+2.2%€6.9bn+12% at constant exchange rates+2.4% in Q2+9% year-on-year

Book to bill

Operating margin

Operating margin rate

120% in Q2+21% year-on-year+190bps at constant scopeand exchange rates

109%
8 | Atos – H1 2017 results

€538m

8.5%

H1 2017 key figures (2/2)

Net income Group share

Basic Earnings Per ShareTotal number of employees+25% year-on-year*+22% year-on-year*-1.5% over H1 2017

Free cash flow

OM conversion to FCF

45%

Net cash position€342m+35% year-on-year

vs. 40.5% in H1 2016

Strong capability to financefuture developments

€211m

€242m

9 | Atos – H1 2017 results€2.01* excluding Visa share sold in H1 2016

98,480

A world constantly more exposed to cybercrime
Digital world with massiveinterconnection & data flows

Explosion of Cybercrime• 3.7 billion Internet users today, multiplied by
92 vs. 2005
• 200 million connected wearables in 2019
• Between 50 and 200 billion IoT devices in2020• 90% of connected cars by 2020
• 100 billion lines of new software code peryear• Ransomware: $1bn in 2016, +300% vs. 2015
• 4,000 ransomware per day• More than 3 million data records arecompromised every day• Cybercrime costs projected to reach $2 trillion
by 2019• $1 trillion cybersecurity spending expectedby 2021 further to the implementation of
GDPR (General Data Protection Regulation)

10 | Atos – H1 2017 results

Atos end-to-end cybersecurity offering

Security risk
assessment
Penetration testing
Regulation
compliance
Crisis management
CyberInsurance

Protect

IoT security
Horus

11 | Atos – H1 2017 results

Situationalawareness

DetectMitigate

Securecommunications

Powered by Bullion

Cyber emergency
response teams
Managed security
services

Analyze

Cyber
protection

Data security
Trustway

A holistic
approach

Security
governanceAtos prescriptive
operations center

Digitalidentity &Accesscontrol

Identity &accessmanagement
solutions suite
EvidianAtos global cybersecurity capabilities
Outstanding operational capabilities• More than 4,500 experts• 14 Security Operation Centers spread over 5 continents• 3 million secure entry points• 100 million security IT events managed per hour
Leveraging an advanced scientific and technologic community• €300 million yearly R&D spending• Access to multi-billion yearly R&D spending through an extensive
network of partners• 5,000+ patent
Clear leadership recognition by industry analysts:• Leader #1 Europe #4 Worldwide Managed Security• Strong performer Worldwide Security Consulting• #1 European Player Worldwide IT Security Services
12 | Atos – H1 2017 results

Entanglement of quantum & cybersecurity in Atos
technologic roadmap
Cybersecurity

Big Data

Predictive
security

Prescriptive
security

Quantum
Homomorphic
Encryption

Machineintelligence

Quantum
Learning
Machine

Bull
Sequana

Foreseeing theunexpected

Eradicating
nascent risks

Creating future
proof security

Fostering deeplearning

Empowering thefuturePioneering
Exascale

2016

2017

2018+

2018+

2017

2016

13 | Atos – H1 2017 results

Financial performance
Elie Girard
Group CFO

Constant scope and exchange rates figures
reconciliation
In € million

Statutory revenue
Exchange rates effectRevenue at constant exchange rates

H1 2017
6,311

H1 2016
5,697-44change+10.8%

6,311

5,653

+11.6%

Scope effectExchange rates effect on acquired/disposed perimeters
Revenue at constant scope and exchange rates
Statutory operating margin
Scope effectExchange rates effectOperating margin at constant scope and exchange rates
as % of revenue

518
5
6,311

6,177

+2.2%

538

444
-34
-3
408
6.6%

+21.2%

538
8.5%+32.0%▶ Exchange rates mainly coming from the British pound depreciating versus the Euro, partly compensatedby the American dollar and the Brazilian real increasing versus the Euro.
▶ Scope effect related to the positive contribution of Unify Services and Unify S&P, Anthelio, Equens,
Paysquare, Komerçni Banka Smartpay, Engage ESM, and zData.
15 | Atos – H1 2017 results

An accelerating trend of revenue organic growth driven by
the Group commercial dynamism
Statutory revenue (€m)
Organic evolution %
3,244
3,200

2,700

3,036

2,427

+1.6%

1,700

+0.2%

0.4%

2,777

0.3%

2,514

2,200

+0.1%

3,200

2,940
2,757

2,708

2,666

3,111

+0.3%

+0.5%

+1.8%

+1.8%

+1.9%

+2.0%

+2.4%

0.2%

0.1%

+0.4%

0.0%

1,200

-0.1%

Q4
2014

Q1
2015

16 | Atos – H1 2017 results

Q2
2015

Q3
2015

Q4
2015

Q1
2016

Q2
2016

Q3
2016

Q4
2016

Q1
2017

Q2
2017

H1 2017 performance by Division▶ Positive growth and operating margin
improvement in all Divisions▶ Acceleration in Business &Platform Solutions▶ Synergies with Unify and Equens
contributing to margin improvement▶ All Divisions on track for their 3
year-plan

6%

Infrastructure & Data Management
Business & Platform Solutions
Big Data & Cybersecurity
Corporate costs
Worldline
Total* At constant scope and exchange rates

17 | Atos – H1 2017 results

Business & Platform Solutions
57%

25%

Big Data & Cybersecurity
Worldline

RevenueIn € million

Infrastructure & DataManagement

12%

Operating margin

H1 2017

H1 2016*

3 589
1 608
357

3 556
1 567
313

Organic
evolution
+0,9%
+2,6%
+13,8%

757
6 311

740
6 177

+2,3%
+2,2%

H1 2017
329
98
43
-46
114
538

H1 2016*
243
77
43
-48
93
408

Operating m argin %H1 2017

H1 2016*

9,2%
6,1%
12,2%
-0,8%
15,0%
8,5%

6,8%
4,9%
13,6%
-0,9%
12,6%
6,6%

Infrastructure & Data Management▶ Continued strong growth in Orchestrated
Hybrid Cloud infrastructures▶ Leadership in Digital Workplace services
further reinforced▶ Automation and Unify integrationstrongly contributing to operating margin
improvement

North America
14%
31%

6%

Germany

United-Kingdom & Ireland

9%

Benelux & The Nordics
19%

21%

FranceOther countries

In € million

Revenue
Operating margin
Operating margin rate
* At constant scope and exchange rates
18 | Atos – H1 2017 results

H1 2017

H1 2016*

3 589
329
9,2%

3 556
243
6,8%

Organic
evolution+0,9%Business & Platform Solutions▶ Shift to high value digital transformation
projects▶ Industrialization program of application
services underway▶ Improved workforce management
materializing in the utilization rate increase

France27%

32%

Benelux & The Nordics
18%

10%

13%

In € million

Revenue
Operating margin
Operating margin rate
* At constant scope and exchange rates
19 | Atos – H1 2017 results

Germany

H1 2017

H1 2016*

1,608
98
6.1%

1,567
77
4.9%

United-Kingdom & Ireland
Other countries

Organic
evolution+2.6%

Big Data & Cybersecurity▶ Strong momentum for cybersecurity▶ Success of Security Operating Center
offering▶ Bullion sales boosted by new partnerships
agreements

France23%

Germany

49%

8%

United-Kingdom & Ireland

9%11%In € million

Revenue
Operating margin
Operating margin rate
* At constant scope and exchange rates
20 | Atos – H1 2017 results

North America

H1 2017

H1 2016*

357
43
12.2%

313
43
13.6%

Other countries

Organic
evolution+13.8%

Worldline▶ Financial Processing strong growth led byvolume increase and fraud prevention▶ Merchant Services benefiting from higher
acquiring volumes and a strong
momentum in India▶ Fast delivery of equensWorldline costs
synergies

In € million

Revenue
Operating margin
Operating margin rate
* At constant scope and exchange rates
21 | Atos – H1 2017 results

France

7%

25%

13%

Belgium
Germany

13%

The Netherlands

19%

United-Kingdom

23%

H1 2017

H1 2016*

757
114
15.0%

740
93
12.6%

Other countries

Organic
evolution+2.3%

H1 2017 performance by Business Unit

▶ Revenue growth and operating margin improvement in almost all
Business Units▶ United-Kingdom and North America showing the strongest commercial
dynamism
RevenueIn € million

North America
Germany
United-Kingdom & Ireland
FranceBenelux & The Nordics
Other Business Units
Global structures**
Worldline
Total

Operating margin

H1 2017

H1 2016*

Organic
evolution

1,162
1,080
880
847
536
1,049

1,141
1,069
852
847
546
983

+1.8%
+1.0%
+3.4%
+0.1%
-1.8%
+6.8%

757
6,311

740
6,177

+2.3%
+2.2%

H1 2017
124
70
83
59
46
89
-46
114
538

H1 2016*
116
23
84
43
35
70
-56
93
408

* At constant scope and exchange rates** Global structures include Global Divisions costs not allocated to the Group Business Units and Corporate costs

22 | Atos – H1 2017 results

Operating m argin %H1 2017

H1 2016*

10.7%
6.5%
9.4%
6.9%
8.7%
8.5%
-0.8%
15.0%
8.5%

10.2%
2.1%
9.8%
5.1%
6.4%
7.1%
-1.0%
12.6%
6.6%

H1 2017 headcount evolution▶ Adaptation of hiring toautomation+6,959-8,712+137
100,096
98,480▶ Focus of hiring on
Atos Digital
Transformation
Factory skills▶ Stable attrition rate

Headcount asof 31/12/16

Scope

23 | Atos – H1 2017 results

HiringLeavers,
Headcount as
restructuring of 30/06/17& dismissals▶ Continued increasein training andcertification

Income statement
In € million

H1 2017

H1 2016% yoy

Revenue

6,311

5,697

+10.8%

Operating margin

538

444

+21.2%

Staff reorganization, rationalization, and integration
Equity based compensation
Purchase Price Allocation amortization
Others (including €51m Visa share in H1 2016)

-82
-45
-62
-22

-97
-22
-45
43

Operating income

327

324

Net financial expenses

-32

-32

Profit before tax

295

292

-56
18.9%

-58
19.8%

Net income

239

234

Non-controlling interests

-28

-29

Net income Group share

211

205

Visa share (Group share)
Net income Group share excluding Visa share

211

36
169

Tax charge
Effective tax rate

24 | Atos – H1 2017 results+24.7%Cash flow statement
H1 2017

H1 2016

Operating Margin before Depreciation and Amortization

712

586

Capital Expenditures
Change in working capital requirement
Cash from operations

-235
-37
439

-202
-24
361

Reorganization, rationalization & integration costs
Taxes paid
Net cost of financial debt paid
Profit sharing
Other changes
Free cash flow

-101
-64
-13
-1
-19
242

-96
-74
-8
-1
-2
180

Net material acquisitions/disposals
Capital increase
Visa share
Dividend paid to owners of the parent
Share buy-backChange in net cash
Unify S&P opening net debt
Impact of foreign exchange rate fluctuation
Opening net cash

-12
31
-168
-8
86
-101
-72
430

-322
21
36
-47
-133
-49
546

Closing net cash

342

364

In € million

25 | Atos – H1 2017 results

Note: Figures have been restated from change in Worldline's intermediation activities presentation (effect of€-47m on H1 2016 opening net cash, €-1m on H1 2016 FCF, and €-51m on H1 2017 opening net cash)

Cash conversion
800
700
600

65,0%
Free cash flow H1
Free cash flow FY
Cash conversion H1
Cash conversion FY

52.5%
579

500

43%
40%

400

55%
to 58%

393

45%
41%

35,0%

0

29%
23%
67

45,0%
40,0%

293

100

55,0%
50,0%

300

200

60,0%

242

30,0%

181

25,0%

104

20,0%
2014

26 | Atos – H1 2017 results

2015

2016

2017

Net cash evolution
+31
-12
-168
481

-51

+242
-8

-101

-72
342

329

Net cash
31/12/16

Worldline's
Unify S&P
intermediation consolidation
activitities
restatement

27 | Atos – H1 2017 results

Restated
net cash
31/12/2016

Free
cash
flow

Acquisitions

Capitalincrease

Dividend
paid

Share
buy-back

FX ratefluctuation
effectNet cash
30/06/17

Balance sheet – main items
30 June 201731 December 2016
restated

Shareholders’ equity€ 4,861 m€ 4,835 m

Net cash€ 342 m

€ 329 mGoodwill€ 4,193 m€ 4,185 m

Net pensions deficit€ 1,335 m€ 1,388 m

Total Assets at the end of June 2017 reached € 13.1 billion
28 | Atos – H1 2017 results

Commercial
activity
Patrick Adiba

Chief Commercial Officer

H1 2017 commercial activity dashboard
Order entry

Book to bill ratio€6,869m

109%+9% year-on-year

120% in Q2 2017

Backlog

Qualified pipeline€22.2bn€7.0bn

1.8 years of revenue

6.7 months of revenue

30 | Atos – H1 2017 results

Atos Digital Transformation Factory:
Recognized Strong Leadership
Digital Services
Transformation

Atos Canopy
Orchestrated
Hybrid Cloud Global
Leader European
LeaderCloud Migration

Leader Application Transformation
Leader Digital Transformation Services
Major Player Digital Services

Atos BusinessAccelerators

Atos
Codex

(SAP HANA, Oracle)
 European
Leader SAP Major Player
HANA Utilities

 Global Leader
Private Cloud Major Player
Next Gen SAP

 #2 European
Leader Major Player

 VISIONARYBI IOT WINNER
 IOT LEADER IOT LEADER
 Contender
Business
Insight

 European
leader Global
Leader MajorContender LeaderMobile Collaboration

Cybersecurity

 Leader #1 Europe #4 Worldwide Managed Security
 Strong performer Worldwide Security Consulting #1 European Player Worldwide IT Security Services

Digital Payment

 Strong Performer Global Commerce Leader Mobile Wallet

31 | Atos – H1 2017 results

Atos Digital
Workplace Global Leader
Retail Banking Payments
 Global Leader Fintech

Main wins in Q2 2017 leveraging the Atos Digital
Transformation Factory
Cloud

BBC

European industrial
equipment manufacturer

SAP HANA
Workplace

Codex
Cyber Security
Digital payments

Cybersecurity
Digital payments

32 | Atos – H1 2017 results

Testing andcertificationcompanyTwo emblematic wins in Q2 2017
European industrial
equipment manufacturer▶ Large Cloud-based Infrastructure & DataManagement contract won thanks to a
key competitive advantage: Atosleadership in cybersecurity

33 | Atos – H1 2017 results

Testing andcertification company▶ Global Private Cloud Datalake with
Regional Hubs
▶ Data acquisition through connectivity to
100s of data sources▶ Data Science & Machine Learning for
Data rationalization automation and data
profiling▶ Automated business dynamic reportingUnify – Sales actions update
Growth Levers

Actions“Whitespace”• Unify offering integrated in the Account Plans• First wins and active pipeline

Circuit• 517 k users in many accounts from Large enterprises to SMB• Continue to leverage the successful Siemens migration to Circuit

France market entry• First wins and pipeline development• Proposals submitted for a value of €100m in H1

Next Gen 9-1-1
opportunity in the US• First orders secured (State of California and St Francois County Missouri) and many active opportunities

Atos/Unify channels
synergies• Number of partners increased to 2,812

34 | Atos – H1 2017 results

Operational
achievements
Eric Grall

Head of Global Operations

Atos Canopy Orchestrated Hybrid Cloud
H1 2017 update
Atos Hybrid Cloud Growth
H1 2017>30%
Customer case study

New Portfolio Development
Private Azure Cloud
SAP+HANA on Cloud by Atos(on Bullions)

Atos added value
Cloudification Factory &Transformation Services
Optimized
public cloud via Atos
Service Orchestration &Management

36 | Atos – H1 2017 results

Atos Infrastructure & Data Management :Automation deployment on-track
H1 Automationaccount coveragevs H1 2017 plan

121 vs 65 target

Major Automation programs
IPSoftArago
Atos Cloud Automation Portal

For customers under
Automation program, current
average rate achieved

Account with highest
Automation achieved to date

47%

68%

37 | Atos – H1 2017 results

Atos Business & Platform Solutions
RISE Program on track versus 2017 objectives
Operating margin
Improvement

120 bpsin H1 2017

Staff to be redeployedin FY 2017

1,000+

Atos Intelligent
Automation Platform(AIAP)

Automation factory
set-up in India

Version 1 ready for
deployment early H2
2017

250+

38 | Atos – H1 2017 results

RPA use cases created

Global Resource
Management
shifted to India

Strategic Acceleration
on Digital
Transformation
Factory(Codex, SAP HANA)Conclusion
and Q&A

Thierry Breton
Chairman & CEO2017 objectives confirmed
The Group confirms all its objectives for 2017 stated in the April 24, 2017
release:▶ Revenue growth:

circa +9.5% at constant exchange rates,
above +2% organically▶ Operating margin: circa 10% of revenue▶ Free cash flow:

operating margin conversion rate to free cash
flow at between 55% and 58%

In line with 2019 Ambition
40 | Atos – H1 2017 results

ThanksAtos, the Atos logo, Atos Codex, Atos Consulting, Atos Worldgrid, Worldline, BlueKiwi, Bull, Canopy theOpen Cloud Company, Unify, Yunano, Zero Email, Zero Email Certified and The Zero Email Company are
registered trademarks of the Atos group. April 2016. © 2016 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.