117 / 334
E
Financial
E.1
Operational review
Atos
|
Registration Document 2016
117
E
centers protecting customers on a worldwide basis and 24 hours
a day.
sector. The demand for High Performance Computing remained
very strong in order to support the growing Big Data processing
needs of customers, as well as the classic offerings in
encryption, identity and access management, and intrusion
testing solutions. The demand increased for security operating
Revenue in
Big Data & Cybersecurity
(BDS) was € 666 million
in 2016, up +12.8% organically, representing 5.7% of the
Group’s revenues. Initially based in France and to a lesser extent
in Germany, the business was expended to most of the
geographies with an increasing contribution from the private
Operating margin was € 111.9 million, representing 16.8% of
revenue. The Division managed to keep this high level of
operational profitability while focusing on top line in order to
benefit from the growing market demand.
e-Ticketing, in contact and connectivity solutions and in services
with governments.
in India and Central Europe and to the dynamic of payment
terminals. Revenue in Financial Processing & Software Licensing
grew by +4.8%, driven by more transaction volumes and
customer projects. Lastly, revenue in Mobility and
e-Transactional Services declined by -2.3%; while revenue was
impacted by the termination of two historical contracts, the
Business Line managed to successfully sell its offerings in
Worldline
’s contribution to the Group’s revenue in 2016 was
€ 1,261 million, growing organically by € 45.5 million or +3.7%.
Merchant Services & Terminals grew by +7.4%, thanks to a
double digit growth in Commercial Acquiring in Benelux and also
offsetting the two terminated contracts was generated with a
lower operating margin.
improvement was recorded mainly in the Merchant Services &
Terminals Business Line, thanks to growing volumes and a
favorable pricing mix mainly in Belgium, as well as a margin
improvement in the UK on private label cards contracts.
Increasing volumes in card processing supported the operating
margin of Financial Processing & Software Licensing while the
Business Line continued to invest in security infrastructure.
Mobility & e-Transactional Services new business almost
Operating margin was € 196.9 million, up +130bp. This
Business Units” contributed to the Group revenue organic
growth:
In 2016, Germany, North America, Worldline, France and “Other
Germany confirmed its recovery with +5.3% organic growth,
•
turning back to healthy growth in all Divisions, with a strong
organic growth, notably thanks to new major deals won in
Infrastructure & Data Management and strong actions
undertaken in Business & Platform Solutions by the new
management;
in migration to Orchestrated Hybrid Cloud and the full effect of
Xerox ITO sales synergies program;
North America was up +4.5%, benefitting from a solid trend
•
maintained all over the year, notably with the sales dynamic
Worldline continued to contribute to the Group organic growth
•
with +3.7% over the period, the sustained dynamic of its core
payment businesses compensating for the effect of the two
contracts terminated last year;
solutions and also B&PS;
France reached a solid +2.3% organic growth rate, fueled in
•
particular by the strong demand for Big Data & Cybersecurity
Middle East & Africa, and South America.
“Other Business Units” also positively contributed to the Group
•
revenue growth, thanks to double digit growth in Asia Pacific,
UK & Ireland was almost stable. The high growth during the
second half of the year (+4.5%) offset the first half base effect
thanks to a strong activity in the Public sector with contract
ramp-ups and increased volumes and projects.
recovery.
2016 was impacted by the ramp-down of contracts not renewed
in 2015 in the Infrastructure & Data Management business,
mainly in Financial Services. The new management team
appointed in the Summer actively focused on the Business Unit
The situation remained challenging for Benelux & The Nordics.
Unify restructuring plan on the CCS activities profitability. The
margin improvement was particularly visible in large Business
Units such as Germany, North America, the UK and also France,
while Benelux & the Nordics faced decreasing margins coming
from a lower level of activity across most Divisions.
In 2016, the Group continued to execute the Tier One Program
through industrialization, global delivery from offshore locations,
and continuous optimization of SG&A. In addition, the Group
benefitted from the full impact of costs synergies following the
integration of Bull and Xerox ITO, coupled with the effect of the
Global structures costs for IT Services as a percentage of
revenue increased by +20 basis points compared to 2015 at
constant scope and exchange rates, mostly due the positive
effect recorded in H1 2015 for pension plan optimization.
optimization plan which resulted in a € 41 million one-off gain
(recorded in H2 in the UK), compared to € 74 million in 2015.
In 2016, the Group continued to execute its pension schemes
Globally, the Group improved its operating margin rate by +110
basis points in 2016. The improvement was +140 basis points
excluding pension schemes optimization one-offs both in 2015
and in 2016.
In 2016, the Group
order entry
totaled
€ 13,027 million
, up
+16.2% year-on-year, representing a
book to bill ratio
of
111%
, consistent between the first and second semesters, and
notably
119%
in the fourth quarter.