Atos - Registration Document 2016

F Risks analysis [G4-14] F.1

External risk factors [G4-13]

its objectives) and considers that there are no significant risks other than those presented hereafter. The Company conducted a review of risks that could have a material adverse impact on its business, or results (or its ability to achieve

[G4-13] External risk factors

F.1

Themarket

F.1.1

fluctuation in the different markets of our clients. Atos is The activity of the Group is dependent on the demand and adapt its activities. performing periodically a review of the different markets to plan relationships. though the digitalization of their processes and citizens Services are delivering breakthrough performance improvement Faced with major budgetary pressure, Government and Public low volatility, and new capital adequacy regulations, Financial Challenged by the political market conditions, low interest rates, Services companies are refocusing their portfolio of businesses

optimization. and keeping a strong focus on Operational excellence and cost investments especially to support growth. completed in the recent past, which allows for increase in IT profitability, due to productivity improvement programs Manufacturing customers have seen an improvement of their data-driven business models supported by cloud and Big Data. Telecom, Media & Utilities companies are transforming to market consolidation and even more aggressive competition, Faced with the continuing changes in regulations, ongoing

Country risks

F.1.2

of the Group is generated from “stable” countries. Group’s business and profitability. However, most of the revenue than others to political or economic risks that may affect the Atos operates in 72 countries. Some countries are more exposed A compliance dashboard is periodically updated for each country by Legal & Compliance department, allowing monitoring the

compliance matters. specific risks of each country regarding regulations and The Group makes a periodic Strategic Operational Review of its business. market, as well as activities considered as being non-core of the business which would not have the critical size on their activities in order to fully revisit all options in respect of portions

[G4-EC2] Environmental risks

F.1.3

For Atos, the specific risks in connection with the main disasters and regulatory compliance. environmental challenges concern climate change, natural Management (ERM) and Legal Risk Mapping (LRM) processes. Environmental risks are taken into account in Enterprise Risk

on the achievement of the Group’s objectives. these specific risks at a low level with a minor potential impact The result of the internal risk analysis, carried out in 2016, ranks

Clients

F.1.4

are large international groups or public organizations throughout The Group delivers services to a large number of clients which different markets and countries, which limits its risk of

the top 50 customers generated 46.6% of total Group revenues. customers generated 17% of total Group revenues in 2016 and dependency on one particular client. The Group’s top 10

Trusted partner for your Digital Journey

228