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E
Financial
E.1
Operational review
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116
Operational review
E.1
Executive summary
E.1.1
negatively contributed to revenue for a total of €-299 million,
mainly coming from the British pound depreciating versus the
Euro while American dollar had almost no effect on a full year
basis.
has been accounted for as discontinued operations from the date
of acquisition and is therefore not consolidated in the figures
presented in the operational review. Currency exchange rates
Communication & Collaboration Services (CCS) business has
been transferred to Atos continuing operations, more specifically
to Infrastructure & Data Management (IDM), and is included in
the figures presented hereafter. The Group also benefitted from
the acquisitions completed at the end of Q3, in North America
with Anthelio, and Equens, Paysquare and Kormercni Smartpay
by Worldline. The Unify Software and Platforms (S&P) business
semester. In addition to the organic growth which strongly
improved compared to last year, the year-on-year growth
benefitted from the contribution of Xerox ITO acquired in
July 2015, Unify since February 2016, of which only the
Revenue
in 2016 reached € 11,717 million, +9.7% compared to
2015 on a statutory basis (+12.8% at constant exchange rates)
and +1.8% organically. The Group reached a +1.8% organic
growth in the second semester of 2016 with a fourth quarter
hitting +1.9%, continuing the positive trend observed in the first
rates. The improvement even increased to +140 bps excluding
pension one-offs, as the amount recorded in the second
semester of 2016 was comparable to that recorded in the second
half of the prior year, and over the full year that amount was
close to half of the amount recorded over the full year 2015, as
planned.
compared to 8.3% in 2015 at constant scope and exchange
which impacted positively IDM, as well as the organic growth
acceleration. Profitability reached 9.4% of revenue, +110 bps
Operating margin
reached € 1,104 million in 2016, up +24.9%
year-on-year mainly thanks to productivity gains from
industrialization programs, the effect of recent acquisitions and
related costs synergies, notably Bull, Xerox ITO and Unify CCS
with large ministries. The situation was more challenging for
Benelux & The Nordics, notably due to ending contracts mainly
in Financial Services, and to a lesser extent in France and
Central & Eastern Europe.
first semester within all markets. Asia Pacific also contributed to
growth mostly thanks to higher volumes in Financial Services
and in the Telco, Media & Utilities. In the UK, after a first
semester where growth was affected by an unfavorable
comparison basis (NS&I outstanding volumes in 2015), the
Business Unit generated a +4.5% revenue organic growth in the
second half thanks to the increasing activity in the public sector
volumes in cloud with several long standing but also new large
customers within Public & Health and Telecom, Media & Utilities
sectors. Germany confirmed the healthy trend recorded in the
the first semester). The Division continued the transformation of
classic infrastructure to cloud based environment. Revenue
significantly increased in transitional and transformation services
as well as new services such as cloud orchestration. These
additional services together with volume increases and market
share gains largely offset unit price decreases from hybrid cloud
transformation. This trend materialized particularly in North
America with a strong commercial dynamism fueled by increased
revenue grew by +0.9% in 2016 (vs +0.4% in 2015) with an
accelerated growth of +1.1% in the second half (vs +0.6% in
+16.6% year-on-year. At constant scope and exchange rates,
Representing 56% of the Group activity,
Infrastructure & Data
Management
(IDM) revenue reached € 6,595 million, up
generated significant unit cost reductions. The Division also
benefitted from the successful execution of the large Unify
restructuring program which enhanced the operating margin of
the IDM activities.
Operating margin in Infrastructure & Data management was
€ 682.9 million, representing 10.4% of revenue. This strong
improvement of +190 basis points compared to 2015 came from
the top line improvement as well as continued significant savings
throughout all geographies. In particular, the successful
migration to the Cloud of several customers’ infrastructure
base effect of one major contract delivered in 2015 in the Public
sector in Turkey. The business acceleration was fueled by new
contracts in Digital Transformation with several large clients
such as Aegon, University College London Hospital and Western
Australian Government.
Solutions
(B&PS) revenue was € 3,194 million in 2016, up
+0.8% organically at constant scope and exchange rates. The
Division even increased its revenue by +1.2% in the fourth
quarter. The improvements mainly came from Germany and
France growing in all markets. “Other Business Units” faced the
Representing 27% of the Group’s activity,
Business & Platform
the Division was achieved while investing in innovation and new
offerings to enhance the planned operating margin catch up.
European geographies. The Division continued to increase its
competitiveness through Global delivery and offshoring mainly
with international private companies on both large projects and
Application Management. Besides, Germany strongly increased
its operating margin thanks to its recovery on top line
(compared to prior year) and from the strong improvement in
productivity. Overall, this first step of profitability turnaround of
revenue. The improvement of +20 basis points compared to last
year at constant scope and exchange rates (+40 basis points
excluding pension effects) was mainly attributable to the
successful workforce improvement actions in most of the large
Operating margin was € 206.1 million, representing 6.5% of