Atos Origin Reference Document 2009
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atosorigin.com Atos Origin – Reference Document 2009 Atos Origin – Reference Reference Document 2009 This report utilizes materials (paper, ink, plate and adhesives) that were produced by ISO 14001 certified companies and plants. The editing and printing were also done by an Imprim’Vert and FSC certified company. Contents 01 . Business profile 01 18 . Corporate Social Responsibility 064 02 . CEO message 03 19 . Human Resources 071 03 . Atos Origin in 2009 05 20 . Operational review 077 04 . Governance 010 21 . Financial review 094 05 . Stock market overview 013 22 . Financial statements 100 06 . Formation of the Group 016 23 . Risk analysis 180 07 . The IT services market 017 24 . Corporate Governance 186 08 . Strategy, organisation 25 . Resolutions 216 and 2010 objectives 027 26 . Legal information 218 09 . tOP Program (Total Operational Performance) 033 27 . Common stock evolution and share performance 226 10 . Consulting 036 28 . Shareholder relations 241 11 . Systems Integration 039 29 . Glossary – definitions 245 12 . Managed Services 043 30 . Persons responsible 13 . Hi-Tech Transactional for the document and the audit Services 046 of the financial statements 251 14 . Medical BPO 051 31 . AMF cross-reference table 253 15 . Markets strategy 052 32 . Full index 256 16 . Distinctive Offerings 33 . Contacts 258 and innovation 057 34 . Locations 259 17 . The Scientific Community: the 2014 journey 063 - Editing, writting: - Consulting, design & production: www.terredesienne.com 01 . Business profile Atos Origin is a leading information technology services company generating annual revenues of EUR 5.1 billion and employs 49,000 people. Predominantly based in Europe, 71% of 2009 Group’s revenue was generated by multi-years contracts in Application Management, Managed Services, Hi-Tech Transactional Services and Medical BPO. Atos Origin’s mission is to advance the performance of its clients by offering innovative solutions that deliver measurable business value. Through Hi-Tech Transactional Services, Consulting, Systems Integration and Managed Operations, and its deep industry knowledge, the Group is able to provide innovative and individually tailored end-to-end IT solutions. Our clients are large multi-national groups and organizations, as well as small and medium sized enterprises, who work with the Company in long term business partnerships. Atos Origin is the Worldwide IT Partner of the International Olympic Committee and in charge of the IT for the Olympic Games, but also active in other critical environments such as air traffic control, payment solutions, or the control systems of nuclear power plants. Client dedication, strong values, and people are the basis of Atos Origin’s unique success story. The Group is European focused but has 49,000 employees worldwide, ensuring a seamless Global Delivery and operational excellence for its international clients. It delivers what it promises and what its clients expect – measurable business value. As a global and responsible company, Atos Origin is committed to implement sustainable best practices in environmental, social and ethical areas throughout its organization and in its business, and contributes to promoting and developing sustainable behaviour by positively influencing its stakeholders to take into consideration sustainability in their decision making. Atos Origin helps its clients advance their future, reduce their carbon footprint and ensure future corporate viability through the delivery of innovative and greener solutions. www.atosorigin.com Atos Origin » Annual Report 2009 » 01 01 . Business profile Revenue breakdown » By Service Line Medical BPO CO 3% 2009 2008 pro forma 5% Managed Services 1,953 1,870 HTTS Systems Integration 1,894 2,133 17% MS Hi-Tech Transactional Services 879 849 38% Consulting 248 325 Medical BPO 153 148 SI 37% 5,127 5,324 » By Global Business Unit RoW 2009 2008 pro forma I/SAm 5% France 1,136 1,171 France 8% Benelux 22% 997 1,154 United Kingdom 902 840 GC/EMA 11% Worldline 844 814 Germany Central Europe/EMA 567 608 Iberia/South America 403 449 Atos Benelux Worldline 19% Rest of the World 278 290 16% 5,127 5,324 United Kingdom 18% » By vertical Others 2009 2008 pro forma Retail 4% Public Sector 1,428 1,308 10% Financial Services 1,109 1,182 Energy & Utilities Public Sector Telecom & Media 712 801 10% 28% Manufacturing 690 807 Energy & Utilities 508 493 Manufacturing Retail 491 533 13% Others 189 201 Financial Telco & Media Services 5,127 5,324 14% 22% Atos Origin » Annual Report 2009 » 02 02 . CEO message Dear Shareholders, The TOP (Total Operational Performance) Program which was launched at the end of 2008 in order to further improve In 2009, Atos Origin achieved the first stage of its three- our operational performance continues and contributed year recovery plan, despite one of the most challenging significantly in 2009 to reducing our cost base and economic environments the IT sector has ever faced. increasing cash generation. Among the TOP initiatives, we launched a Lean Management Program to improve our Our Group increased its profitability by more than 80 basis delivery efficiency, the quality of services to our clients, points to 5.7%, thus reducing the gap with its three-year and our staff engagement. At the end of 2009, new TOP objective, and improved its cash flow generation to reduce initiatives were launched to increase our sales and deliver the net debt by EUR 165 million. The organic decline in more global and innovative solutions to our customers. revenue was limited to -3.7%. These objectives were Our Sales force has also been reorganized through the achieved in spite of a difficult environment, particularly in Global Atos Origin Market Alignment (GAMA) project which Germany where the bankruptcy of one of our key customers is based on a market sector-approach in order to better - the retailer Arcandor - significantly affected the Group’s adapt our solutions to the specific needs of our clients. net income, which in 2009 totalled EUR 32 million. We also reinforced our commitment to making our Overall I am convinced that our credibility in terms of IT services “green” in accordance with the best international delivering on our commitments is the best argument that standards. we can provide to our clients, our staff and our shareholders to demonstrate our determination to build long-term Since the beginning of the economic slowdown, the partnerships that create value for everyone. Company’s main priority has been protecting the jobs of its employees and developing their employability. In 2009, Your company continues to demonstrate its expertise and Atos Origin hired 4,500 engineers, of which half were skills in delivering large and complex projects. As an graduates. In the medium-term, our ambition is to be illustration the contract with the International Olympic recognised as being one of the best companies to work Committee was renewed in 2009 and extended through for by anticipating new ways of working and attracting and to the Rio de Janeiro 2016 Olympic Games in Brazil. Once retaining the most talented engineers. This is the objective again, Atos Origin successfully delivered a flawless IT of the “Well Being at Work” initiative which was launched performance for the Vancouver 2010 Olympic Winter in December 2009 within the TOP Program. Games last February. Through this major sporting event, we demonstrated to a worldwide audience of 3 billion people our outstanding ability to provide the best IT services and expertise to our customers. To further improve our performance, Atos Origin launched a major transformation program. We have strengthened our organization so we can operate in the more challenging economic environment and properly execute our transformation program. Following the creation of a new governance structure, with a single Board of Directors and a Chairman & CEO, we have made several new appointments at the Executive Committee level; empowered the Global Support Functions and Global Delivery Lines; created the Global Sales and Market unit and the Strategic International Customers division. This division is responsible for managing centrally the major global accounts of the Group. With this new operational model established in 2009, Atos Origin is now a fully Thierry BretoN, integrated company leveraging on its scale and strengths. Chairman and Chief Executive Officer www.atosorigin.com Atos Origin » Annual Report 2009 » 03 02 . CEO message Even if the crisis is not yet behind us, we need to anticipate be a “Cloud enabler”, supporting our clients achieve their what the winning approach will be in the post-crisis business objectives. We have also launched Ambition IT market. Our clients are facing major ruptures in their Carbon Free, our new Green IT solutions designed to business environment (financial, economic, technological, reduce by half the IT carbon footprint of our clients–and and social) and they expect us, as a technology company, even offset it. Our next packaged offerings concern Smart to help them reinvent their growth model. We believe that Utilities and Smart Grid, Enterprise Content Management, in the IT sector, the post-crisis landscape will see the co- Collaborative tools, Context Aware computing, Social existence of more industrialized, traditional IT services Computing… together with a new type of IT solution focused on business critical services. The differentiator will be innovation which Atos Origin’s main priority in 2010 will be to protect the has always been part of Atos Origin’s