Registration Document 2018 1 Trusted Partner for Your Digital Journey 2 A
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TABLE OF CONTENTS A E Group overview 3 Financials AFR 141 A.1 Revenue profile 4 E.1 Operational review 142 A.2 Business profile 5 E.2 2019 objectives 156 A.3 Interview with Thierry Breton 9 E.3 2019 objectives on digital services scope (excluding 156 A.4 Persons responsible 10 Worldline) A.5 Atos in 2018 11 E.4 Financial review 156 A.6 Group presentation 16 E.5 Consolidated financial statements 164 E.6 Parent company summary financial statements 237 B Atos positioning and strategy AFR 23 F Risks analysis AFR 265 B.1 Business Model 24 B.2 Market trends 28 F.1 Risk management activities 266 B.3 Market sizing and competitive landscape 30 F.2 Risk Factors 268 B.4 Strategy and ADVANCE 2021 32 F.3 Mitigation measures 272 F.4 Claims and litigation 277 C F.5 Internal control 278 Sales and delivery 37 G C.1 Sales and business development approach 38 Corporate governance and C.2 Infrastructure & Data Management 39 AFR C.3 Business & Platform Solutions 45 capital 285 C.4 Big Data & Cybersecurity 48 G.1 Legal Information 286 C.5 Worldline 52 G.2 Corporate governance 289 C.6 Innovation and partnerships 55 G.3 Executive compensation and stock ownership 321 G.4 Annual General Meeting of April 30, 2019 336 D G.5 Common stock evolution and performance 337 Corporate Responsibility AFR 57 H D.1 Extra financial performance in Atos 2019 Ambition 58 D.2 Being a Responsible employer 71 Appendix 353 D.3 Generating value with co-innovation 89 H.1 Definitions 354 and sustainable business solutions H.2 AMF cross-reference table 358 D.4 Ethical & Governance excellence 101 in Atos’ sphere of influence D.5 Supporting the transition to a low-carbon economy 113 I D.6 Extra-Financial Performance Declaration 127 Contacts and locations 363 D.7 Information about the report 131 I.1 Contacts 364 I.2 Locations 365 I.3 Full index 366 Annual Financial Report items are clearly identified in this summary with the aid of the AFR pictogram. registration 2018document including Annual Financial Report This document is a full free translation of the original French text. In case of discrepancies, the French version shall prevail. The original document has been filed with the Autorité des Marchés Financiers (AMF) on February 22, 2019, in accordance with article 212-13 of the AMF’s General Regulations. This document can be used for a specific financial operation, if completed by a prospectus approved by the AMF. This document has been issued by the Company and commits its signatories. ATOS | Registration document 2018 1 Trusted partner for your Digital Journey 2 A A.1 Revenue profile 4 A.1.1 By Division 4 A.1.2 By Business Unit 4 A.1.3 By Market 5 A.2 Business profile 5 A.2.1 Atos Digital Transformation Factory 5 A.2.2 Atos expertise covers a wide range of specialties 6 and always accompanying its customers for new opportunities and innovations A A.2.3 Atos industry expertise 7 Group overview A.3 Interview with Thierry Breton 9 A.4 Persons responsible 10 A.4.1 For the Reference Document 10 A.4.2 For the accuracy of the document 10 A.4.3 For the audit 10 A.5 Atos in 2018 11 A.5.1 Key graphs 11 A.5.2 2018 key achievements 13 A.6 Group presentation 16 A.6.1 Formation of the Group 16 A.6.2 Management and organization 17 ATOS | Registration document 2018 3 Group overview A A.1 Revenue profile A.1 Revenue profile [GRI 102-6] [GRI 201-1] A.1.1 By Division In 2018, 73% of the Group revenue was generated by multi-year contracts, deriving from Infrastructure & Data Management (52% of total revenue), 75% of Worldline transactional services (10%), application management contracts included in Business & Platform Solutions, and half of Big Data & Cybersecurity (respectively 7% and 4%). 14% (in € million) 2018 Worldline ■ Infrastructure & Data Management 6,328 7% Big Data ■ Business & Platform Solutions 3,361 & Cybersecurity ■ Big Data & Cybersecurity 895 ■ Worldline 1,674 52% Infrastructure TOTAL GROUP 12,258 & Data Management 27% Business & Platform Solutions A.1.2 By Business Unit [GRI 102-4] Europe and North America are the Group’s main operational bases, generating 93% of total revenue in 2018. 14% 18% (in € million) 2018 Worldline Germany ■ Germany 2,161 ■ North America 2,022 17% ■ France 1,710 Other Business Units ■ United Kingdom & Ireland 1,612 16% ■ Benelux & The Nordics 1,017 North America ■ Other Business Units 2,061 ■ Worldline 1,674 8% TOTAL GROUP 12,258 Benelux & The Nordics 14% France 13% United Kingdom & Ireland Trusted partner for your Digital Journey 4 Group overview A.2 Business profile A A.1.3 By Market A The Group provides high value-added digital services and solutions to many industry sectors. Customers are addressed through four global markets which are Manufacturing, Retail & Transportation, Financial Services Public & Health, and Telcos, Media & Utilities. 16% (in € million) 2018 Telcos, Medias & Utilities ■ Manufacturing, Retail & Transportation 4,492 ■ Public & Health 3,387 36% Manufacturing, ■ Financial Services 2,449 Retail & Transportation 20% ■ Telcos, Media & Utilities 1,930 Financial Services TOTAL GROUP 12,258 28% Public & Health A.2 Business profile [GRI 102-1] [GRI 102-2] Atos SE (Societas Europaea) is a leader in digital transformation Atos’ objective is to empower its clients on their digital journey with 120,000 employees in 73 countries and annual revenue of thanks to its in-depth market knowledge and extensive portfolio over € 12 billion. European number one in Cloud, Cybersecurity of services. Pursuing this objective, Atos identified four key and High-Performance Computing, the Group provides challenges that its customers face, whatever their industry end-to-end Orchestrated Hybrid Cloud, Big Data, Business sector and whatever their geography. Atos has the resources, Applications and Digital Workplace solutions through its Digital the scale, and the expertise to help its customers meet all these Transformation Factory, as well as transactional services through challenges related to their digital transformation: Worldline, the European leader in the payment industry, and a reinvent business model; comprehensive portfolio of cybersecurity products and services. • With its cutting-edge technologies and industry knowledge, Atos • improve the customer experience; supports the digital transformation of its clients across all business sectors. As an emblematic example, the Group is the • ensure trust and compliance; Worldwide Information Technology Partner for the Olympic & • reinforce operational excellence. Paralympic Games. Atos is listed on Euronext Paris and is included in the CAC40 stock index. Atos operates under the brands Atos, Atos|Syntel, Unify, and Worldline. A.2.1 Atos Digital Transformation Factory In order to answer the holistic challenges and needs of large to a common framework managing and orchestrating the organizations in their digital transformation, the Group designed bi-modal landscape of legacy and multi-sources of cloud. a Digital Transformation Factory based on four end-to-end offers Leveraging 33 years of experience, the Group provides a unique relying on the joint skills and capabilities of all the Group end-to-end SAP HANA value proposition with a recognized set of divisions and the consistent sales organization focusing on its tools and accelerators, flexible SAP HANA hosting and cloud top clients. services, and the leading SAP HANA appliance, the Bullion. With With Hybrid Cloud, Atos leverages all the Group strengths and Business Accelerators end-to-end approach from Consulting & the expertise of its unique and powerful ecosystem of partners. Integration to Digital & Analytics, Atos accelerates innovation It proposes an industrial end-to-end approach to transform and transformation by simplifying and optimizing its clients IT customer applications and infrastructures and to migrate them costs with the combination of both classical SAP and new SAP HANA. ATOS | Registration document 2018 5 Group overview A A.2 Business profile In a context of consumerization redefining the way we work and Transformation. It supports public and private sector business requirements of the end user, the Digital Workplace organizations to transform data into actionable business insight end-to-end offering is answering its clients’ needs of productivity using cognitive capabilities. In this field, the Atos difference of employees, security, and costs. The Atos solution relies on an open innovation model to collect the world’s encompasses automated help & interaction centers, cloud & intelligence and make it works for its clients, made to measure mobile solutions, unified communication and collaboration tools platforms to perfectly fit to the unique business context of its such as Circuit from Unify. clients, in a fully secured environment. Connected Intelligence is a suite of business-driven analytics and IOT solutions and services which accelerates client´s Digital A.2.2 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 communications capabilities from Unify, and as a leader in infrastructures to the new world of hybrid IT landscapes. This is European and Asia-Pacific Datacenter Outsourcing and built on Atos’ expertise in delivering IT outsourcing for many Infrastructure Utility Services as well as global leader in years, strengthened by the Hybrid Cloud. Atos has been outsourcing services globally. Finally, Atos delivers Business recognized several times by independent analysts as the most Process Outsourcing (BPO) services in Medical and Financial visionary workplace services provider in Europe thanks to its areas. Digital Workplace offering leveraging on its unique unified Business & Platform Solutions (B&PS): transforming business through innovative business technologies In order to better answer to market needs, Business & Platform solutions for mobile apps and devices as well as SaaS Solutions has fundamentally changed the way it conducts its integration.