Atos - Registration Document 2016

E Financial E.1

Operational review

Data & Cybersecurity continued its sales momentum reaching a healthy 130% book to bill ratio in 2016, while Worldline managed to achieve 106% over the period, with new contracts in the Public sector and in Financial Services mainly. over the different Group’s Divisions) in Germany, Aegon and the University College London Hospital in the UK, and Monsanto and Ashland in North America. Business & Platform Solutions (with a book to bill at 114%) signed new contracts notably with T-Mobile in the Benelux & The Nordics, La Poste in France, Deutsche Bank in the UK and with Polimeks in Central & Eastern Europe. Big The main new contracts signed over the period were in Infrastructure & Data Management (reaching a book to bill at 109%), with notably Rheinmetall, Siemens and Nokia (spread Processing contracts mainly in Germany. Data Management such as the extensions of the PIP contract with the department for Work and Pensions in the UK, the Texas department of Information Resources and McDonald’s in the US, and Siemens in Germany. Worldline sales dynamic was also strong in particular with the renewal of several Issuing Renewals of the year included large contracts in Infrastructure & In line with this positive evolution of Atos commercial activity, the full backlog at the end of December 2016 increased by

revenue at the end of 2015. The full qualified pipeline was € 6.5 billion at the end of 2016 including the integration of the acquisitions, up +4.9% compared to the end of December 2015. € 2.8 billion compared to December 2015 including the integration of the acquisitions, and amounted to € 21.4 billion , representing 1.8 year of revenue compared to 1.7 year of December 2016. The increase of +9.6% of the Group workforce compared to 91,322 at the end of December 2015 was mainly due to the staff who joined the Group from Unify (both CCS and S&P) on February 1, 2016, and from Equens, PaySquare, KB Smartpay and Anthelio on October 1, 2016. The total headcount was 100,096 at the end of Attrition was 12.3% at Group level of which 19.1% in offshore countries. The number of direct employees at the end of 2016 was 92,785 , representing 92.7% of the total Group headcount, compared to 93.7% at the end of 2015. Indirect staff increased by +26.8% during the period; adjusted from the scope effect from Unify mainly, indirect staff decreased by -5.8%, in line with the continuous optimization of the indirect workforce.

Statutory to constant scope and exchange rates reconciliation

E.1.2

organically. Operating margin reached € 1,104 million (9.4% of Revenue in 2016 reached € 11,717 million, +9.7% compared to 2015 statutory, +12.8% at constant exchange rates, and +1.8%

revenue), up +24.7% year-on-year and +15.1% compared to € 959.0 million (8.3% of revenue) in 2015 at constant scope and exchange rates (+110 bps).

2015

2016

%change

(In € million)

Statutory revenue Exchange rates effect

11,717

10,686

+9.7%

-295

Revenue at constant exchange rates

11,717

10,390

+12.8%

Scope effect

1,128

Exchange rates effect on acquired/disposed perimeters Revenue at constant scope and exchange rates

-4

11,717

11,515

+1.8% +24.9%

Statutory operating margin

1,104

883.7

Equity based compensation reclassification

33.3 73.3

Scope effect

Exchange rates effect

-31.3 959.0 8.3%

Operating margin at constant scope and exchange rates

1,104 9.4%

+15.1%

as % of revenue

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