WORLDLINE_REGISTRATION_DOCUMENT_2017

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Financials Introduction

While the Group’s results do not typically show strong seasonal variations, the Group may experience significant period-to-period fluctuations at the consolidated level or in a particular global business line or business division. In particular, given the front-end nature of build revenue and the lower associated profitability of the build and early ramp phases of a project, a greater or lesser proportion of build revenue from one period to the next can have a significant impact on revenue and profitability. A range of other factors could cause or contribute to period to period fluctuations, including non-renewals of contracts or the end of life of a terminal product.

The initiatives Lean, Purchasing, Real Estate, Contract profitability and Workforce management have been taken into consideration in the TEAM² program for the next three years, with the objective to continue progressing in terms of performance and operational efficiency: Contract profitability. Further enhance the profitability of existing projects and contracts through improved monitoring of contract performance and by mobilizing expert task forces to implement remediation processes when necessary; Purchasing. Continue to expand the involvement of the Group’s procurement teams to leverage the Group’s best practices and scale, by systematically involving procurement teams throughout a project’s lifecycle, including them early on and in the decision-making process, expanding team sizes in response to greater demand levels, and creating specific purchasing milestones in bid and budget processes; Workforce management. Reinforce the optimization of our production capacity management, by ensuring the right resources are allocated to the various projects whatever their localization. This includes the development of offshore services for our various countries in addition to onshore resources that are closer to the client; Lean. Continue with and follow up on the implementation of the “lean” program initiated by Atos, which applies a standard methodology designed to strengthen operations across the Group, develop customer loyalty and leverage the skills and creativity of staff to increase operational efficiency, improve quality of service, promote well-being at work and attract and retain top talent; Real estate. Optimize the Group’s real estate in order to ensure adequate office space for our employees at the best market price. Five new initiatives have been added to the program: Make or buy infrastructure: Optimize the Group’s IT infrastructure by rationalizing the solution offerings, industrializing the tools and production processes, pursuing the Cloud transformation and rationalizing the hosting and localization of the datacentres; Robotics & automation: Introducing in our production processes automatization and robotization of IT tasks in order to create productivity gains and increase the quality of service. This will be enabled by the quicker delivery of some IT tasks by robots in operation 24x7 and therefore by limiting to the maximum extent human errors; 1 st time right development: Promote new ways of working by promoting Agile/DevOps development methods and by adapting the associated processes, organization and tools. This will go along the automation of testing work and the unification of development tools, in order to unify the developers’ practices and have them evolve towards market best practices; Zero incident objective: Automate, reinforce and improve the incident management through tooling, process and organization optimization around three axis: incident forecasting, incident detection and problem solving. The purpose is to increase the visibility of the root cause and the frequency of the incident in order to perform deeper bug fixing in application, in procedures or in terms of organization;

Changes in Scope [GRI 102-45] and [GRI 102-49]

The Group’s scope of consolidation has evolved significantly in 2016 and 2017 as detailed in Section A.6.1 “Formation on the group”. The Group’s scope of consolidation will continue to evolve given its external growth strategy.

TEAMand TEAM² projects

In early 2014, the Group had launched “TEAM”, a four-year efficiency, industrialization, and standardization program whose underlying objective was to extract the full value and potential of the Group by improving the efficiency and integration of all of its component activities, globally. Through the TEAM program, the Group aims at improving its operating model, reducing costs and leveraging its resources and strengths across the Group’s business to benefit from the strong growth in the markets and industries in which the Group operates, improve resource allocation and standardization across its network, and take full advantage of the Group’s size and global reach. Through TEAM, the Group leveraged “continuous improvement” initiatives already begun as part of Atos’ similar TOP Program, such as lean management and improved purchasing efficiency, while implementing new “efficiency through transformation” initiatives aimed at increasing the Group’s production volumes, enhancing the globalization of its business, and integrating and standardizing the Group’s IT infrastructure. The TEAM program, which had an objective to generate € 150 million of cost saving by the end of 2017, was realized as soon as in 2016, by capturing the productivity gains and by finding additional leavers, which allowed compensating the price decreases requested by clients. Given the good results of this program and the strong internal mobilization that it has created to deeply transform the Company, a new TEAM² program has been launched early 2017. This new program covers the next 3 years with an ambition similar to that of the first TEAM program, but incorporating news workstreams. TEAM² pursue the initiatives that have proven successful over the long term and where there is still potential improvement opportunities, while introducing new workstreams centered around transformation and innovation of our core business.

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Worldline 2017 Registration Document