Atos - Registration Document 2016

E Financial

E.1

Operational review

Performance by Business Unit

E.1.4

Revenue

Operatingmargin

Operatingmargin%

2015*

2015*

2015*

2016

%organic

2016

2016

(In € million)

North America

2,061 1,954 1,790 1,709

1,972 1,856 1,797 1,671 1,064 1,938

+4.5% 240.8 +5.3% 200.9 -0.4% 238.8 +2.3% 125.4 -7.3% 71.5 +0.9% 127.3

182.9 138.7 196.7 102.9

11.7% 9.3% 10.3% 7.5% 13.3% 10.9% 7.3% 6.2% 7.3% 9.2% 6.5% 7.2% -0.9% -0.7%

Germany

United-Kingdom & Ireland

France

Benelux & The Nordics Other Business Units Global structures**

986

98.4

1,956

139.4 -73.3

-97.7

Worldline

1,261

1,216 +3.7% 196.9

173.4 15.6% 14.3%

TOTAL GROUP

11,717 11,515 +1.8% 1,104

959.0

9.4% 8.3%

At constant scope and exchange rates. * Global structures include the Global Divisions costs not allocated to the Group Business Units and corporate costs. **

growth: In 2016, Germany, North America, Worldline, France and “Other Business Units” contributed to the Group revenue organic Germany confirmed its recovery with +5.3% organic growth, • notably thanks to new major deals won in Infrastructure & turning back to a healthy organic growth in all Divisions, & Platform Solutions by the new management; Data Management and strong actions undertaken in Business maintained all over the year, notably with the sales dynamic North America was up +4.5%, benefitting from a solid trend • Xerox ITO sales synergies program; in migration to Orchestrated Hybrid Cloud and the full effect of Worldline continued to contribute to the Group organic growth • payment businesses compensating for the effect of the two with +3.7% over the period, the sustained dynamic of its core contracts terminated last year; solutions; particular by the strong demand for Big Data & Cybersecurity France reached a solid +2.3% organic growth rate, fueled in • revenue growth, thanks to double digit growth in Asia Pacific, “Other Business Units” also positively contributed to the Group • Middle East & Africa, and South America. second half of the year (+4.5%) offset the first half base effect UK & Ireland was almost stable. The high growth during the ramp-ups and increased volumes and projects. thanks to a strong activity in the Public sector with contract

mainly in Financial Services. The new management team in 2015 in the Infrastructure & Data Management business, recovery. appointed in the Summer actively focused on the Business Unit 2016 was impacted by the ramp-down of contracts not renewed The situation remained challenging for Benelux & The Nordics. In 2016, the Group continued to execute the Tier One Program and continuous optimization of SG&A. In addition, the Group through industrialization, global delivery from offshore locations, integration of Bull and Xerox ITO, coupled with the effect of the benefitted from the full impact of costs synergies following the margin improvement was particularly visible in large Business Unify restructuring plan on the CCS activities profitability. The while Benelux & the Nordics faced decreasing margins coming Units such as Germany, North America, the UK and also France, from a lower level of activity across most Divisions. revenue increased by +20 basis points compared to 2015 at Global structures costs for IT Services as a percentage of effect recorded in H1 2015 for pension plan optimization. constant scope and exchange rates, mostly due the positive optimization plan which resulted in a € 41 million one-off gain In 2016, the Group continued to execute its pension schemes (recorded in H2 in the UK), compared to € 74 million in 2015. points excluding pension schemes optimization one-offs both in +110 basis points in 2016. The improvement was +140 basis Globally, the Group improved its operating margin rate by 2015 and in 2016.

E

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