Investor Presentaiton

Made public by

sourced by PitchSend

1 of 36

Creator

PitchSend logo
PitchSend

Category

Pending

Published

Unknown

Slides

Transcriptions

#1FY 2022 Results S Bezons, March 1, 2023 © Atos Atos#2Disclaimer 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' 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 described in this document due to a number of risks and uncertainties that are described within the 2021 Universal Registration Document filed with the Autorité des Marchés Financiers (AMF) on April 6, 2022 under the registration number D.22-0247 and the Amendment to the 2021 Universal Registration Documents filed with the AMF on August 5, 2022 under number D.22-0247-A01. Atos does not undertake, 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. 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 as well as appropriate processes with the relevant employee representative bodies in accordance with applicable laws. Revenue organic growth is presented at constant scope and exchange rates. Regional Business Units include Americas including North America (USA, Canada, Guatemala and Mexico) and South America (Argentina, Brazil, Chile, Colombia, Uruguay, and Peru), Northern Europe and APAC including Northern Europe (United Kingdom & Ireland, Belgium, Denmark, Estonia, Belarus, Finland, Luxembourg. The Netherlands and Sweden) and Asia-Pacific (Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand), Central Europe (Germany, Austria, Bulgaria, Bosnia, Croatia, Czech Republic, Greece, Hungary, Israel, Poland, Romania, Serbia, Slovenia, Slovakia, and Switzerland), Southern Europe (France, Andorra, Spain, Portugal, and Italy) and Rest of the World including Middle East & Africa (Algeria, Benin, Burkina Faso, Egypt, Gabon, Ivory Coast, Kenya, Kingdom of Saudi Arabia, Madagascar, Mali, Mauritius, Morocco, Qatar, Senegal, South Africa, Tunisia, Turkey and UAE), Major Events and Global Delivery Centers. 2 | 01-03-2023 | Atos 2 Atos#3Today's presenters 3 Nourdine Bihmane Diane Galbe Co-CEO, in charge of Tech Foundations Group Senior Executive VP | 01-03-2023 | © Atos Philippe Oliva Co-CEO, in charge of the Evidian perimeter Nathalie Sénéchault Group CFO Atos#4Agenda 1. 4 2022 Highlights 2. Progress in Strategic Transformation Project 3. 2022 Financial Performance 4. Outlook 5. Q&A | 01-03-2023 | © Atos S Atos#501. 2022 Highlights Nourdine Bihmane & Philippe Oliva Atos#62022 highlights Atos delivering on strategic transformation plan 6 | 01-03-2023 | © Atos Strong operational recovery in H2 delivers FY22 results in line with guidance Robust pick-up in commercial momentum in Q4 with book-to-bill at 112% Confidence for 2023, progressing towards mid-term ambitions Significant progress achieved in separation project Clear path for contemplated completion in H2 2023 Atos#72022 Key Financial Figures Revenue € 11.3 bn +1.3% yoy, cst. curr. +0.1% yoy, organic Operating Margin 3.1% of revenue OMDA €1,020 m Free Cash Flow €-187 m Net Debt € 1,450 m €-58 m excluding costs related to 2.4X pre IFRS 16 OMDA transformation plan 7 | 01-03-2023 | © Atos Headcount 110,797 Atos#8Headcount evolution 109,135 +29,458 110,797 I (24,102) (201) (3.493) I I I I I I Headcount as of 31/12/21 Scope 62% in offshore & nearshore locations Hiring Leavers Restructuring, dismissals & transfers Headcount as of 31/12/22 Great Place To WorkⓇ Sept. 2022: Atos listed for the first time as one of 'Europe's Best Workplaces' Certification achieved in 19 countries 8 | 01-03-2023 | Atos c. 85,000 Digital certifications in 2022 Atos#9Tech Foundations in 2022: fast and tangible first results on turnaround plan REFOCUS RECOVER REBOUND Mobilized teams around ambitious turnaround plan ✓ Near term pricing actions to mitigate inflation Actions to reshape business portfolio (BPO, VAR, disposal of UCC) ✓ Cost take-out actions ✓ Restructuring initiated, focus on US, UK in 2022 Strong actions on underperforming contracts Increased add-on and revenue Drove revenue retention Won large deals and new logos ✓ Accelerate building partnerships ✓ Revitalized product roadmap for Edge, Sovereign Cloud and Public Cloud offerings Repositioning Tech Foundations' portfolio Global leader in managed infrastructure services and employee experience; European leader in private, hybrid and sovereign cloud; Visionary managed services offerings enabled by Al Pioneering tech in decarbonization 9 | 01-03-2023 | © Atos Atos#1010 Tech Foundations in 2022: delivering ahead of plan €6,026 m 2022 revenue B Better-than-anticipated top line momentum +0.3% -2.7% -1.6% Organic revenue growth -1.7% at constant currency -11.4% FY21 H1 2022 Revenue organic growth -1.2% Q3 2022 Q4 2022 Q4: deliberate reduction in BPO and VAR as part of portfolio rationalization +1.0% excl. non-strategic activities (BPO, VAR, UCC) 1.3% Operating Margin Operating margin turned positive 3 years ahead of plan +3.6% ✓ Robust improvement in H2 ✓ Performance actions focused on costs structure and underperforming contracts | 01-03-2023 | © Atos -1,0% H1 2022 H2 2022 Atos#11Tech Foundations in 2022: accelerated commercial performance 54% 59% 57% 94% 67% 54% 58% 83% Continued growth in new logos Increased selectivity in order entry Early successes with large deals Q1 Q1 Q2 2021 2022 2021 Q2 2022 Q3 2021 Q3 2022 Q4 2021 Q4 2022 JEFA NATIONAL TEAM FOOTBALL World's largest Q4 main wins healthcare company Newly formed global consumer company 8 years partnership to provide a comprehensive and secure end-to-end IT solution Large contract Industry-leading Workplace engagement Digital Digital Workplace service requirements over a 3-year extension term Large contract 11 | 01-03-2023 | © Atos New logo aws New logo Global Strategic Partnership to transform the Infrastructure Outsourcing industry ~$0.5Bn of joint pipeline to date Upskilling programme launched Atos#12Evidian in 2022: strong value proposition around clear distinctive factors World leader in managed security services Emerging end-to-end cloud transformation player Strong offering in sovereign cloud solutions Trusted sustainability partner enabling clients' decarbonization Sole European HPC manufacturer Strong expertise in application modernization and migration Key strategic player in Europe for mission critical systems - Roadmap to maximize synergies between key areas of expertise - Positioning Evidian as a leading high value-added services & solutions provider to clients increasingly mindful of security and sovereignty issues 12 | 01-03-2023 | © Atos Atos#13Evidian in 2022: uptick in revenue growth and operating margin in H2 €5,315 m 2022 revenue +4.8% Growth at constant currency +2.0% organic 5.2% 2022 Operating Margin +5.4% organic revenue growth in H2 (+11% in Q4) Ramp-up of Advanced Computing following strong order entry in Q2 Steady strong growth in Cybersecurity Services where Evidian capitalizes on global leadership ✓ Acceleration in Digital Operating margin: 6.7% in H2 vs. 3.5% in H1 ✓ Actions on cost base and pricing Increased utilization of billable resources ✓ Higher volumes in Advanced Computing resulting in better fixed costs absorption 13 | 01-03-2023 | © Atos Atos#14Evidian: pick up in commercial momentum in Q4 130% Q4 book-to-bill vs. 85%% in Q3 2022 Strong sequential increase at both BDS and Digital ✓ 51% short-term bookings with faster revenue yield Focus on smaller, low-risk contracts Q4 main wins Max Planck Build and install new HPC based on Atos' latest BullSequana platform HX3000 New logo Eurocontrol Strategic deal to provide MDR services to an EU agency responsible for Aviation and Air Navigation across the European Union Large contract Global retail leader Design, build, roll out and support new IT solution based on mobile supported by Digital Enablement Platform built on Microsoft Azure application, Siemens Deliver next generation Integration Orchestration and driven services through Atos SIO/SIAM Bridge solution 14 | 01-03-2023 | © Atos Large contract Atos#1502. Progress in Strategic Transformation Project Diane Galbe Atos#16Significant progress achieved in strategic transformation project Works councils Information and consultation process complete ✓ Consultation process of Atos European works councils (SEC) completed in 3 months ✓ Local consultation processes completed in all 31 countries where it was necessary 16 > | 01-03-2023 | © Atos Separation workstreams progressing as planned c.80% of €700 million divestment program secured Discussions on a non-exclusive basis with Airbus to form long-term partnership and to sell 29.9% stake in Evidian, fully consistent with separation plan Atos#17Separation project key milestones On track for completion in H2 2023 July 29, 2022 Financing of the interim period 17 17 | 01-03-2023 | © Atos February 2023 Full completion of employee consultation processes Ahead of Distribution Convening of Shareholders meeting September 7, 2022 Start of the SEC consultation process 'Soft spin' / Internal readiness H2 2023 Distribution & listing of the shares of Evidian Atos#18Non core businesses divestment program well on track €700m expected proceeds c.80% already secured within 7 months Transaction Signing Worldline stake June 2022 EGSE September 2022 Sislog October 2022 Atos Italia* November 2022 UCC* January 2023 * Transactions are subject to the consultation of relevant employee representative bodies and other customary regulatory approvals 18 | 01-03-2023 | Atos Status Closed Closing expected in Q1 23 Closed Closing expected in H1 23 Closing expected in H2 23 Atos#19Key Non-Financial Indicators & Recognitions Sustainability in our DNA Net promoter score from our clients 66% stable vs 2021 CO2 Emissions scopes 1,2 and 3 2.5 Mtons reduced by -24% since 2019 % of total spend assessed by Ecovadis or alternative assessments 70% vs. 68% in 2021 Top 10% S&P Global ESG Score 2022 85/10 S&P Global Sustainability 85/100 Top 1%* 10th consecutive year in S&P's Global Sustainability Yearbook PLATINUM 2022 ecovadis Sustainability Rating Ecovadis 84/100 Top 1% On environment, labour & human rights, responsible procurement and ethics CDP DISCLOSURE INSIGHT ACTION A LIST 2022 CLIMATE CDP Leadership Band Top 2% 10th consecutive year on CDP Leadership Band * Within the IT industry 19 | 01-03-2023 | © Atos Atos#2003. 2022 Financial Performance Nathalie Sénéchault Atos#212022 Financial overview ЄM Revenue Operating Margin In % of revenue OMDA In % of revenue Normalized Net income Net income Free Cash Flow excluding costs of transformation plan Free Cash Flow Net debt 21 | 01-03-2023 | © Atos FY 2022 FY 2021 Change Change at cst. currency 11,341 10,839 +4.6% +1.3% 356 383 3.1% 3.5% -40 bps -60 bps 1,020 1,095 9.0% 10.1% -110 bps -28 -215 -1,012 -2.962 -58 -419 -187 -419 1,450 1,226 Atos#222022 revenue bridge Return to growth at constant currency, organic stabilization In ЄM: 22 +4.6% +3.3% 11,341 10,839 +0.1% +1.2% +1.3% at constant currency 2021 Revenue Organic Scope Foreign Exchange 2022 Revenue | 01-03-2023 | © Atos Atos#23Continued sequential improvement in organic growth H2: +2.3% -0.1% -2.4% -1.9% +4.6% -8.9% Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 23 | 01-03-2023 | © Atos Organic growth turned positive in Q4: Evidian strongly up Tech Foundations down due to portfolio rationalization Comparison basis Atos#242022 operating margin Strong recovery in H2 as expected 24 24 3.1% operating margin in FY22 1.1% 5.1% H2 2022 H1 2022 | 01-03-2023 | © Atos ههه H2 improvement mainly driven by: ✓ Decrease in structure costs ✓ Selective hirings Cost discipline Reduction in underperforming contracts and associated losses ✓ Pricing Atos#25Operating margin to Net income ЄM 2022 2021 Operating margin 356 383 Reorganization, Rationalization, Integration costs -451 -437 Amortization of intangible assets -140 -151 Equity based compensation -25 -34 Impairment of goodwill and other non-current assets -177 -1,490 Others -359 -1,039 Operating income -795 -2,768 Net financial expenses -175 -151 Tax charge -46 Non-controlling interests ○ Share of net profit/(loss) of associates Net income - Group share -1,012 -2,962 25 | 01-03-2023 | Atos o/w €-266m related to Atos' envisioned transformation plan -39 -3 o/w €-210m one-off impact from Tech Foundations addressing large underperforming contracts o/w €-29m cost of debt and €-109m related to the disposal of Worldline shares Atos#262022 Free cash flow OMDA Capex and leases Change in Working Capital Tax paid Net cost of financing debt RRI costs (excl. costs related to transformation plan) Other changes Excluding costs related to FCF transformation plan Costs related to transformation plan FCF 26 | 01-03-2023 | © Atos In Єm +1,020 -656 +126 -59 -29 -154 -305 -58 -129 -187 Include a €60m refund from German restructuring plan announced in 2021 Atos#272022 change in net debt (328) In ЄM: (187) (1,226) Net debt Dec 2021 FCF 2022 27 27 | 01-03-2023 | © Atos (1,450) +219 +72 Acquisitions & Sale of Worldline Disposals Shares FX & others Net debt Dec 2022 Leverage ratio at 2.4x OMDA pre IFRS 16 Atos#2804. Outlook Nourdine Bihmane & Philippe Oliva Atos#29Evidian 2023 priorities . Drive revenue growth acceleration Deploy new customer value proposition and portfolio of offerings Maximize synergies and leverage joint go-to-market Build sales capabilities, increase large deals win rate + Atos • Delivery excellence and profitability · • Targeted margin improvement actions at key accounts level Talent management in an inflationary context: increase utilization, targeted hirings, reskilling Delivery-led growth approach Successful transformation Shift to new operating model Drive innovation to the next level In 2023, we expect Revenue organic growth to accelerate Operating margin to increase ㅁ 29 29 | 01-03-2023 | © Atos#30Tech Foundations 2023 priorities • REFOCUS: accelerate the reshaping of our portfolio Tackle underperforming contracts, wind down non-core activities Continue to rationalize VAR and non strategic offerings 30 | 01-03-2023 | © Atos In 2023, we expect: RECOVER: step up cost structure adaptation • Social consultation completed; targeting 7,500+ headcount reduction over the next 3 years with significant actions planned in 2023 Structural changes in delivery model - MTO, AI/Automation REBOUND pave the way for future growth · • Continue commercial momentum through focus on large deals, growth squads and integrating Advisory in GTM motion Scale new offerings - Edge, Public cloud and sovereign cloud Continued stabilization of core revenue Managed decrease in revenue resulting from portfolio rationalization Ramp up in margin expansion actions; mitigated by inflation and portfolio rationalization Operating margin in positive territory, well ahead of plan Atos#312023 full-year outlook Group Evidian Tech Foundations Organic revenue growth -1.0% to +1.0% VS. 2022 +0.1% in 2022 Acceleration +2.0% in 2022 Managed decrease Core stabilization Portfolio rationalization -1.6% in 2022 Improvement Operating margin" (% of revenue) 4% to 5% VS. 2022 3.1% in 2022 Positive territory 5.2% in 2022 1.3% in 2022 * At current perimeter, including Italian activities & UCC (disposals expected to close in H1 2023 and H2 2023 respectively) 31 | 01-03-2023 | © Atos 31 Atos#32Conclusion ☑ Atos delivering on strategic plan Strong operational recovery achieved in H2 2022 Confidence for 2023, separation project well on track Evidian and Tech Foundations will hold Investor Days prior to the envisaged separation On track to achieve 2026 objectives 22 32 | 01-03-2023 | © Atos Atos#3305. Q&A Atos#34Thank you Atos is a registered trademark of Atos SE. 20223 Copyright 2023, Atos SE. Confidential Information owned by Atos group, 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 of Atos. S © Atos Atos

Download to PowerPoint

Download presentation as an editable powerpoint.

Related

Q4 & FY22 - Investor Presentation image

Q4 & FY22 - Investor Presentation

Financial Services

FY23 Results - Investor Presentation image

FY23 Results - Investor Presentation

Financial Services

Ferocious - Plant Growth Optimizer image

Ferocious - Plant Growth Optimizer

Agriculture

Market Outlook and Operational Insights image

Market Outlook and Operational Insights

Metals and Mining

2023 Investor Presentation image

2023 Investor Presentation

Financial

Leveraging EdTech Across 3 Verticals image

Leveraging EdTech Across 3 Verticals

Technology

Axis 2.0 Digital Banking image

Axis 2.0 Digital Banking

Sustainability & Digital Solutions

Capital One’s acquisition of Discover image

Capital One’s acquisition of Discover

Mergers and Acquisitions