Atos SE (Societas Europaea) Is a Leader in Digital Transformation with Circa 100,000 Employees in 72 Countries and Pro Forma Annual Revenue of Circa € 12 Billion
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2016 financial report This document is a full free translation of the original French text. In case of discrepancies, the French version shall prevail. WorldReginfo - bbe0a871-d691-4938-8696-0864f42f2ffb CONTENTS Contents ................................................................................................................................................ 2 A Group overview ............................................................................................................................... 3 A.1 Revenue profile ....................................................................................................................... 3 A.2 Business profile ....................................................................................................................... 4 A.3 2016 key achievements ........................................................................................................... 7 B Financials ...................................................................................................................................... 11 B.1 Operational review ................................................................................................................ 11 B.2 2017 objectives ..................................................................................................................... 26 B.3 Financial review..................................................................................................................... 27 B.4 Consolidated financial statements .......................................................................................... 36 C Contacts and locations ................................................................................................................. 105 D Full index .................................................................................................................................... 107 2/108 WorldReginfo - bbe0a871-d691-4938-8696-0864f42f2ffb A GROUP OVERVIEW A.1 Revenue profile A.1.1 By Division In 2016, 74% of the revenue base was generated by multi-year contracts, deriving from multi-year Infrastructure & Data Management contracts (56% of total revenue), 75% of Worldline transactional services (7%), Application Management contracts included in Business & Platform Solutions, and half of Big Data & Cybersecurity (respectively 6% and 4%). 11% In € million 2016 6% Infrastructure & Data Management 6,595 Business & Platform Solutions 3,194 Big Data & Cybersecurity 666 27% 56% Worldline 1,261 Total Group 11,717 A.1.2 By Business Unit Europe is the Group’s main operational base, generating 76% of total revenue in 2016. In € million 2016 North America 2,061 17% 18% Germany 1,954 United-Kingdom & Ireland 1,790 11% 17% France 1,709 8% Benelux & The Nordics 986 Worldline 1,261 15% 15% Other Business Units 1,956 Total Group 11,717 A.1.3 By Market The Group provides high added value digital services and solutions to many industry sectors. Customers are addressed through four global markets which are Manufacturing Retail & Transportation, Public & Health, Telcos, Media & Utilities, and Financial Services. In € million 2016 17% Manufacturing, Retail & Transportation 4,058 35% Public & Health 3,329 20% Telcos, Media & Utilities 2,352 Financial Services 1,978 Total Group 11,717 28% 3/108 WorldReginfo - bbe0a871-d691-4938-8696-0864f42f2ffb A.2 Business profile Atos SE (Societas Europaea) is a leader in digital transformation with circa 100,000 employees in 72 countries and pro forma annual revenue of circa € 12 billion. Serving a global client base, the Group is the European leader in Big Data, Cybersecurity, Digital Workplace and provides Cloud services, Infrastructure & Data Management, Business & Platform solutions, as well as transactional services through Worldline, the European leader in the payment industry. With its cutting edge technology expertise and industry knowledge, the Group supports the digital transformation of its clients across different business sectors: Defense, Financial Services, Health, Manufacturing, Media, Utilities, Public sector, Retail, Telecommunications, and Transportation. The Group is the Worldwide Information Technology Partner for the Olympic & Paralympic Games and is listed on the Euronext Paris market. Atos operates under the brands Atos, Atos Consulting, Atos Worldgrid, Bull, Canopy, Unify and Worldline. Atos’ objective is to empower its clients on their digital journey by applying its in-depth market knowledge and extensive portfolio of services. Pursuing this objective, Atos identified four key challenges that its customers face, whatever their industry sector and whatever their geography: Business Reinvention, Customer Experience, Operational Excellence, Trust & Compliance: Reinvent business model: how to move from traditional business models to new, agile digital networks, enhancing your company from the inside out? Improve the customer experience: how can you ensure clients satisfaction, predict desires and respond to them in such a way that every customer will promote itself your company? Ensure trust and compliance: how to ensure your infrastructures, personnel, and customers are secure and compliant? How can you make security and the trust it fosters a primary lever for innovation and growth? Reinforce operational excellence: how to ensure agile, flexible, and scalable operations, to compete successfully in the digital age? Atos has the resources, the scale and the expertise to help its customers meet all the challenges of their transformation. Atos Digital Transformation Factory In order to answer the holistic need of large organizations in their digital transformation, the Group designed a Digital Transformation Factory based on four end-to-end offers relying on the joint skills and capabilities of all the Group divisions and the consistent sales organization focusing on its top clients. With Atos Canopy Orchestrated Hybrid Cloud, Atos leverages all the Group strengths and the expertise of its unique and powerful ecosystem of partners. It proposes an industrial end -to-end approach to transform customer applications and infrastructures and to migrate them to a common framework managing and orchestrating the bi-modal landscape of legacy and multi- sources of cloud. Leveraging 32 years of experience with SAP 12,000+ professionals in 40+ countries, the Group provides a unique end-to-end SAP HANA value proposition with a recognized set of tools and accelerators, flexible SAP HANA hosting and cloud Services, and the Leading SAP HANA appliance, the Bullion. With SAP HANA by Atos end-to-end approach from Consulting & Integration to Digital & Analytics, Atos accelerates innovation and transformation by simplifying and optimizing its clients IT costs with the combination of both classical SAP and new SAP HANA. In a context of consumerization redefining the way we work and business requirements of the end user, the Atos Digital Workplace end-to-end offering is answering its clients’ needs of productivity of employees, security, and costs. The Atos solution encompasses automated help & interaction centers, cloud & mobile solutions, unified communication and collaboration tools such as Circuit from Unify. Atos Codex is a suite of business-driven analytics and IOT solutions and services which accelerates client´s Digital Transformation. It supports public and private sector organizations to transform data into actionable business insight using cognitive capabilities. In this field, the Atos difference relies on an open innovation model to collect the world’s intelligence and make it work for its clients, made to measure platforms to perfectly fit to the unique business context of its clients, in a fully secured environment. 4/108 WorldReginfo - bbe0a871-d691-4938-8696-0864f42f2ffb Atos expertise covers a wide range of specialties and always accompanying its customers for new opportunities and innovations Infrastructure & Data Management (IDM): transforming today’s IT landscapes to future hybrid IT environments Atos is at the forefront of transforming its client’s IT infrastructures to the new world of hybrid IT landscapes. This is built on Atos’ expertise in delivering IT outsourcing for many years, strengthened by the Atos’ Canopy Hybrid Cloud. Atos has been recognized several times by independent analysts as the most visionary workplace services provider in Europe thanks to its Digital Workplace offering, and as a leader in European and APAC Datacenter Outsourcing and Infrastructure Utility Services as well a s global leader in outsourcing services globally. Finally, Atos delivers Business Process Outsourcing (BPO) services in Medical and Financial areas. Business & Platform Solutions: transforming business through innovative business technologies In order to better answer to market needs, Business & Platform Solutions (B&PS) has fundamentally changed the way it conducts its business. The organization focuses on global delivery with strengthened management for strategic accounts and offering development to ensure high quality standards, improve customer satisfaction and drive operational performance. Business & Platform Solutions contributes to the Group Digital Transformation Factory and proposes an industrial end-to-end approach to transform customer applications and to migrate them in the scope of Atos Canopy cloud solutions. Through SAP HANA, it delivers innovation for key customer business processes with an innovative platform and a consulting approach based on design