Atos - Registration Document 2016

E Financial

E.1

Operational review

to software license sales which largely offset the base effect of growth, mainly driven by a very strong performance attributable weather forecast). an HPC project delivered in the prior year to DKRZ (national Big Data & Cybersecurity achieved a solid double digit revenue revenue, significantly improving compared to the prior year at Operating margin reached € 200.9 million or 10.3% of

the pension one-off recorded in 2015. CCS services, which largely compensated for the base effect of optimization of offshore delivery and synergies with the Unify workforce management as well as continued increased constant scope and exchange rates. The Business Unit performance, combined with continued improvement of the profitability improvement was overall resulting from the sales

United Kingdom& Ireland

E.1.4.3

2015*

2016

%organic

(In € million)

Revenue

1,790 238.8

1,797 196.7

-0.4%

Operating margin

Operating margin rate

13.3% 10.9%

At constant scope and exchange rates. *

particular in BPO. Revenue was € 1,790 million, almost flat year-on-year at of +4.5% in the second semester which almost compensated for constant scope and exchange rates, with a strong improvement some contracts in Infrastructure and Data Management, in the first half which was notably affected by the base effect of projects with the Ministry of Justice, which more than offset the and projects achieved with DWP for the PIP contract, new traditional customers. Globally, the Division was impacted in impact from off-boarding contracts or lower volumes with some Financial Services by outstanding volumes performed for NS&I in of the new contract with Metropolitan Police, increased volumes and Health posted a solid growth, benefiting from the ramp-up the prior year, and similarly in Telco, Media & Utilities with the sector, the ramp up of the contract won last year with the Royal BBC account. In the Manufacturing, Retail and Transportation with the prior year in Infrastructure & Data Management. Public The Business Unit was mainly impacted by the comparison effect several other contracts. Mail group partly compensated for the off-boarding effect of However, growth was achieved thanks to new contracts and Revenue in Business & Platform Solutions was slightly down.

projects were not renewed with some other clients. compensate for contract ramp-downs. In the Public sector, the opportunities closed this year will benefit in 2017 and did not the Welsh Government and in the Defense area, while several activity increased on key accounts such as Metropolitan Police, Brothers, and in the Telecom sector, mainly with BBC and Sky. increased volumes in Financial Services, notably with Close In the Manufacturing, Retail & Transportation sector, the growth Big Data & Cybersecurity showed a solid momentum, with strong performance was primarily driven by major new HPC deals, sales in the Public and in Manufacturing sectors. Such a dynamic in cyber-security projects. selling new Sequana technology, combined with a particular Operating margin was € 238.8 million and represented 13.3% pensions recorded in the second semester, consistent with the of the revenues, including a positive 41 million impact from basis points excluding pension one-offs. The Business Unit one recorded last year. Operating margin improved by +210 to strong management actions implemented to pursue costs achieved to improve its level of profitability thanks, in particular, project management on large contracts. savings through Tier One Program initiatives, as well as tight

E

France E.1.4.4

2015*

2016

%organic

(In € million)

Revenue

1,709 125.4 7.3%

1,671 102.9 6.2%

+2.3%

Operating margin

Operating margin rate

At constant scope and exchange rates. *

At € 1,709 million, revenue in France was up +2.3% thanks to a positive trend in Business & Platform Solutions, as organically. France confirmed the return to revenue growth well as a continued solid performance in Big Data & Cybersecurity. Infrastructure & Data Management was slightly down as higher Public & Heath sector did not compensate for volume reductions volumes and additional business achieved notably with DCNS in transformation of its customers and started to sell new in the other markets. The Division drove the cloud

and Cybersecurity at the renewal of the contracts with Sephora transitional and transformation services together with Big Data and PwC. growth, showing an improvement in almost all markets. In Business & Platform Solutions achieved a positive organic from additional volumes notably with Renault. Financial Services particular, Manufacturing, Retail & Transportation benefitted volumes with several large institutions. In Public & Health, the achieved a solid growth thanks to new projects and additional Division recorded a much higher level of business with the

Atos | Registration Document 2016

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