ATOS

Atos presents its new 3-year plan: 2019 Ambition - Seite 2

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.