ATOS :Atos presents its new 3-year plan: 2019 Ambition
(Thomson Reuters ONE) -
Revenue organic growth: +2% to +3% CAGR over the 2017-2019 period
Operating margin rate: 10.5% to 11.0% of revenue in 2019
Free cash flow: operating margin conversion rate at c. 65% in 2019
Bezons, November 8, 2016 - During the 2014-2016 period, Atos will have over-
achieved the objectives of its 3-year strategic plan "2016 Ambition":
* Revenue will have grown by +40% from ? 8.6 billion to ? 12 billion;
* Operating margin increased from ? 0.6 billion to circa ? 1.1 billion;
* Cash conversion ratio increased from 40% to circa 50% leading to a 2016e
free cash flow above ? 550 million;
* While net income will have doubled, without indebting the company nor
diluting the shareholders.
Today, the Group presents its new 3-year plan "2019 Ambition" at the occasion of
an Investor Day held in its Headquarters in Bezons (France).
Thierry Breton, Chairman and CEO said: "
During the past three years we have deeply transformed our company and over
achieved our triennial strategic plan. Today we present our new ambition for the
next three years.
In order to accompany all our customers in their digital transformation and the
massive "data-ization" of their businesses in a secured cyberspace, we have
decided to capitalize on our technological strengths and people skills; and to
focus on our Digital Transformation Factory based on four high growth pillars:
Cloud, Digital Workplace, SAP HANA, and cognitive solutions with Atos Codex to
transform data into business value, while continuing to enhance our state of the
art Cybersecurity technologies across all our offerings.
The holistic nature of our client's digital transformation which requires the
orchestration of most of Atos technologies to be efficiently implemented (High
speed computer, managed services, systems integration and agile development,
collaborative solution, data analytics, e- payment.) is making Atos very well
placed to capture the growth from this new IT market wave.
Today, the Group has indeed a more technological profile than ever and our
business model with more than 70% of revenue based on multiyear contracts is
both predictable and very well positioned to capture the digital transformation
growth wave. With no debt, it has the required financial strength to move
forward.
With all these strengths, Atos is fully geared to reach its 2019 ambitious
targets in the benefit of its customers, employees, and shareholders."
2019 targets
The Group ambitions to deliver:
* Revenue organic growth: +2% to +3% CAGR over the 2017-2019 period;
* Operating margin rate: 10.5% to 11.0% of revenue in 2019;
* Free cash flow: an operating margin conversion rate to free cash flow at
circa 65% in 2019 compared to circa 50% in 2016e.
The figures above are to be compared with 2016e pro forma at September exchanges
rates and including 12 months effect of recent acquisitions and disposals (i.e.
mainly the acquisitions of Unify Managed Services, Equens, Paysquare, Komerçni
Banka Smartpay, and Anthelio). Additionally, the assumption is made that no
pension one off effects will occur in the period 2017-2019.
To reach its 2019 Ambition the Group will focus on 7 levers:
* Consolidate the Managed Services leading position and leverage its
leadership;
* Catch-up of Consulting & Systems Integration growth and profitability
towards its peers;
* Roll-out an end-to-end sales process based on a holistic digital
transformation offering and industrialize its successful global quality
program to increase its wallet share;
* Develop Worldline as an undisputed European leader in payments;
* Leverage its unique European solutions in Big Data & Cybersecurity to
sustain a solid double digit growth over the period;
* Maintain excellence in Human Resources and CSR;
* Continue to participate to the IT industry consolidation to expand its
customer base and to strengthen its technological capabilities.
Consolidate the Managed Services leading position and leverage its leadership
The Group intends to anchor its leadership in Infrastructure & Data Management
(Managed Services), its largest business, notably by continuing to successfully
drive the transition of its customers to hybrid cloud infrastructures with
increased volumes and market share gains through new contracts. The Group will
keep bringing the innovation to enable the digital transformation of its
customers, notably through strong partnerships with the most advanced
technological world leaders.
In this context, Managed Services is expected to improve its operating margin
rate by +50 to +100 basis points over the 2017-2019 period while growing
organically at a 0% to +1% CAGR.
Catch-up of Consulting & Systems Integration growth and profitability towards
its peers
In Consulting & Systems Integration, the Group has the ambition to catch-up
towards its peers in terms of revenue organic growth and profitability. The
focus will be, in particular, the migration to SAP HANA, the application
transformation, and vertical cognitive solutions with the Atos Codex offerings
as well as reaping the promising North America market.
The Service Line profitability increase will mainly come from the implementation
of a brand new fully integrated delivering process concept for international
private companies (which represent one third of the C&SI business today),
closing the profitability gap with peers as well as making Atos more aggressive
commercially to grow on this market.
As a result, Consulting & Systems Integration targets to accelerate its organic
growth to a +3% to +4% CAGR, while improving its operating margin rate by +200
to +250 basis points over the 2017-2019 period.
Roll-out an end-to-end sales process based on a holistic digital transformation
offering and industrialize its successful global quality program to increase its
wallet share
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.
Revenue in Atos Canopy Orchestrated Hybrid Cloud is expected to grow from c. ?
700 billion in 2016e to c. ? 1.7 billion in 2019e.
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. SAP HANA by Atos revenue is expected to grow from c. ? 100 million
in 2016e to c. ? 700 million in 2019e.
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. Thanks to a proven global capability, large investments, continuous
innovations, and the management of an ecosystem of service partners, the Atos
Digital Workplace revenue is expected to grow from c. ? 0.2 billion in 2016e to
c. ? 1.1 billion in 2019e.
Atos Codex is a suite of business-driven analytics and IOT solutions and
services which accelerates clients 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. Atos Codex
revenue is expected to grow from c. ? 500 million in 2016e to c. ? 1 billion in
2019e.
This end-to-end approach will be a key enabler to offer the Big Data &
Cybersecurity solutions on top of the traditional research and defense sectors
and combined with the international development of the division beyond France
and Germany. Thanks to this transversal and international expansion, the Service
Line Big Data & Cybersecurity is expected to grow at an organic CAGR of at least
12% over the 2017-2019 period while maintaining its current strong operating
margin rate above 16%.
Develop Worldline as an undisputed European leader in payments
Worldline today announces its ambition for 2019, reflecting the increase of its
scope after the acquisitions of Equens, Paysquare, and KB Smartpay. Worldline's
2017-2019 objectives are:
* After a first semester 2017 at a slight positive growth, an revenue organic
growth between 5% and 7%;
* OMDA percentage improvement between 350bp and 400bp in 2019, compared to
2016;
* +50% increase in Free Cash Flow in 2019 compared with 2016, at ?210m to
?230m in 2019.
For the next three years, Worldline intends to take advantage of its European
leadership to expand its Pan-European platform for Omni-commerce Merchant
Services, to grow in Financial Processing and to deliver the massive industrial
synergies with equensWorldline.
Based on its payment industry intimacy and its attractive financial profile,
Worldline ambitions to accelerate its involvement in the European payments
industry consolidation.
Maintain excellence in Human Resources and CSR
In order to realize its three-year plan, the Group relies strong values and best
practices in Corporate and Social Responsibility. These values are fully
integrated in its operations.
To power its ambition, Atos is building the best employee digital experience in
order to attract and retain the graduates, talents, experts.
Atos set medium term extra-financial objectives including:
* To power its ambition, Atos targets to be recognized as the best employer in
the IT sector and to build the best employee digital experience. In this
field, Atos ambitions to keep increase the Atos GreatPlaceToWork TrustIndex®
reflecting employee satisfaction to the top 10% industry benchmark;
* A clear focus on customer satisfaction through sustainable and innovative
solutions;
* Finally, as a sustainable player, Atos manages its operational efficiency in
environmental footprint with the objective to reduce by 5% to 15% CO2
Emissions per revenue unit (tCO2 per ? million) by 2020.
Continue to participate to the IT industry consolidation to expand its customer
base and to strengthen its technological capabilities
Atos maintains a financing agility to support the Group development ambition. It
will seize value creative opportunities to reinforce its business model and to
acquire new clients and technological capabilities with the same financial
discipline as in the prior years.
In order to materialize deeper the Digital Transformation Factory, the Group
decides to change the names of two service lines
Atos is organized with four divisions:
* Managed Services becomes "Infrastructure & Data Management";
* Consulting & Systems Integration becomes "Business Applications & Platform
Solutions";
* Big Data & Cybersecurity (not changed);
* Worldline (not changed).
Webcast
Several sections of the Investor Day will be live webcasted on Atos website,
notably the "Vision, strategy & 3-year plan targets" section presented by
Thierry Breton; Chairman and CEO, as well as the "Financial achievements &
objectives" section presented by Elie Girard, Chief Financial Officer followed
by a Q&A session. The "Worldline's 3-year plan" presentation by Gilles Grapinet,
Atos SEVP and Worldline CEO will be webcasted on both Atos and Worldline
websites.
You can join the webcast of the presentations on atos.net, in the Investors
section.
Forthcoming event
February 22, 2017: 2016 annual results
Contacts
Media: Terence Zakka
+33 1 73 26 40 76
terence.zakka(at)atos.net
Investor Relations: Gilles Arditti
+33 1 73 26 00 66
gilles.arditti(at)atos.net
Benoit d'Amécourt +33 1 73 26 02 27
benoit.damecourt(at)atos.net
About Atos
Atos SE (Societas Europaea) is a leader in digital services with pro forma
annual revenue of circa ? 12 billion and circa 100,000 employees in 72
countries. Serving a global client base, the Group provides Consulting & Systems
Integration services, Managed Services & BPO, Cloud operations, Big Data &
Cybersecurity solutions, as well as transactional services through Worldline,
the European leader in the payments and transactional services industry. With
its deep technology expertise and industry knowledge, the Group works with
clients across different business sectors: Defense, Financial Services, Health,
Manufacturing, Media, Utilities, Public sector, Retail, Telecommunications, and
Transportation.
Atos is focused on business technology that powers progress and helps
organizations to create their firm of the future. 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.
For more information, visit: atos.net.
Disclaimers
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 competitors 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 2015 Registration Document
filed with the Autorité des Marchés Financiers (AMF) on April 7, 2016 under the
registration number: D.16-0300 and its update filed with the Autorité des
Marchés Financiers (AMF) on August 4, 2016 under the registration number: D.16-
0300-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.
Revenue organic growth is presented at constant scope and exchange rates.
Operating margin is presented as defined in the 2015 Registration Document.
Atos decided, as early as the acquisition date, to retain only part of the
activity of Unify. As a result, the Software & Platforms business, along with
the customers and the countries that were planned to be managed through indirect
channels, have been accounted for as discontinued operations and are in the
process of being physically carved-out to facilitate the disposal of this
activity. Therefore, the 2016 and 2015 pro forma consolidated external revenue
and operating margin reflect the retained scope of Unify only.
Atos presents its new 3-year plan:
http://hugin.info/143359/R/2055065/769475.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: ATOS via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 08.11.2016 - 07:32 Uhr
Sprache: Deutsch
News-ID 505478
Anzahl Zeichen: 19483
contact information:
Town:
Bezons
Kategorie:
Business News
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