FY 2002 results March 12, 2003
Agenda • GROUP ACHIEVEMENTS • GROUP ACHIEVEMENTS • FY 2002 BUSINESS PERFORMANCE • YEAR 2003 OUTLOOK • STRATEGY Turning Client Vision into Results 2
Highlights 2002 • Stable revenue in a difficult market • Operating profit of € 266 M (8.7% margin) • Net debt reduced to € 440 M in quarter 4 • Successful integration of KPN operations • Acquisition of Atos KPMG Consulting UK & NL • Strengthened market, solution and key account organisation • Continuous streamlining of operations Turning Client Vision into Results 3
Atos Origin profile Well balanced End to end Global industry mix offerings presence Other Americas 4% 6% Other Consulting Retail A.P. Public Financial EMEA 16% 2% & CPG Serv. services 11% France 7% 4% On Line 26% Managed Germany 31% Process Services Operations 7% Systems 10% Ind. 12% 48% UK Intégration Discrete Telecom, 15% 36% manufact. Utilities, The Netherlands 24% Media including 30% 4% recurring 22% business >50% recurring Strong European Focus on key revenue base accounts Note : includes FY 02 revenue of AKC UK & NLs on a 12 month basis Turning Client Vision into Results 4
Agenda • GROUP ACHIEVEMENTS • GROUP ACHIEVEMENTS • FY 2002 BUSINESS PERFORMANCE • YEAR 2003 OUTLOOK • STRATEGY Turning Client Vision into Results 5
Financial performance FY 2002 FY 2001 % change In € Millions Revenue 3,043 3,038 +0.2% Income from operations 265.6 261.2 +1.7% Operating margin 8.7% 8.6% 180.0 149.2 +20.6% Net income before non recurring items and goodwill Net income (Group share) 70.8 123.0 -42.4% In € 4.09 3.40 +20.2% EPS before non recurring items and goodwill EPS 1.61 2.81 -42.6% Turning Client Vision into Results 6
Quarterly Results Profitability sustained in a difficult market 840 9.5% 9.0% 9.1% 8.9% 8.8% 820 9.0% 8.8% 8.4% 800 8.5% 8.2% 8.0% 780 8.0% 760 7.5% 740 7.0% 720 6.5% 700 6.0% 680 5.5% 757 761 723 797 749 738 734 822 660 5.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2001 2002 Group Revenue (M€) Operating Margin Turning Client Vision into Results 7
Net Income (M€) FY02 FY01 Comments Income From Operations 266 261 Financial costs remain stable excluding Net financial expenses (27) (10) special items and AKC* financing Non-recurring items (71) (3) Cost of restructuring Tax deductibility of restructuring and Corporate income tax (47) (84) additional goodwill costs in AKC* UK Minority interests (11) (18) Lower Atos Euronext profit Goodwill amortisation (38) (23) Additional goodwill on AKC* & KPN Net income (Group share) 71 123 Net income before non recurring items & 180 149 goodwill amortisation Note(*): Atos KPMG Consulting Turning Client Vision into Results 8
Restructuring 2001 Plan People S1 2002 Q3 2002 Q4 2002 2003 1st plan Q4 01 528 374 2nd plan Q1 02 466 302 1,504 3rd plan Q2 02 293 4th plan Q3 02 776 813 5th plan Q4 02 770 1,344 YTD June YTD Sept YTD Dec Total 2,833 374 676 1,489 1,344 2001 2002 2003 (10) P&L impact (M€) (71) (52) (89) Cash Impact (M€) (67) (91) Provisions end of Dec. 2002 (M€) 49 Turning Client Vision into Results 9
Changing the skills base 4% increase of revenue per head Dec. 31, 2002 Dec. 31, 2001 1,657 KPN EUS (517) 2,673 KPN SWH (Leavers) (1,489) new hirings Restructuring Atos 28,602 KPMG Consulting 26,278 New skills into the Group Staff reduction Sub- 2,134 940 contractors Turning Client Vision into Results 10
Cash Flow Comments (M€) FY02 FY01 12.6% of revenues Net cash from operating activities 382 397 Change in working cap. : +51 M€ From 4.6% to 3.4% of revenues Capital expenditure (102) (139) Net cash from current operations 280 258 Reorganisation and restructuring (73) (140) Origin fair value adjustments (16) (69) SNT, TIS, premises Disposal of assets 108 54 Other changes(*) (12) (12) Increase of more than 3 times Net cash before financial investments 288 91 AKC : 438 M€ & KPN : 44 M€ Financial investments (493) (212) Net cash flow (205) (122) Opening net debt (235) (114) Gearing at 56% Closing net debt (440) (235) Note(*): Other changes include common stock issues, dividends paid to minority shareholders of subsidiaries, translation differences and profit sharing amounts payable to French employees transferred to debt Turning Client Vision into Results 11
Balance Sheet M€ Dec 31, 2002 June 30, 2002 Dec 31, 2001 Goodwill 1,029 402 405 Other fixed assets 271 324 366 Working capital 191 212 193 Capital employed 1,491 938 965 Equity 784 538 479 Provisions 267 219 251 Net debt 440 181 235 Sources of Capital 1,491 938 965 Working Capital / Revenue 6.3% 7.1% 6.4% Net Debt / Equity 56% 34% 49% Return on Capital Employed 7.7% 14.8% 14.4% Turning Client Vision into Results 12
Debt Calendar Funds available to meet repayment commitments (M€) 2002 2003 2004 2005 >2005 Convertible bonds (173) - (173) - - Long-term borrowings (637) (100) (156) (152) (229) Finance leases & other borrowing (52) (35) (5) (2) (10) Total borrowings (862) (135) (334) (154) (239) • Cash currently available to meet 2003 Total cash and cash equivalents 422 commitment three times over • Current cash and 2003 cash flow more than sufficient to meet 2004 commitment Total net debt (440) • Other facilities available Turning Client Vision into Results 13
Gearing M€ Well within borrowing covenants Limit 900 90% 77% 100% 800 80% 71% 700 70% 600 60% 49% 56% 500 50% 37% 400 40% 39% 300 30% 34% 27% 200 20% 100 10% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2001 2002 Net Debt (M€) Equity (M€) Gearing Net debt / 2.0 0.4 0.3 0.7 0.6 0.5 0.5 1.6 1.0 Ebitda Turning Client Vision into Results 14
Provisions Total : 405 M€ M&A Acquisition 160 Total : 267 M€ Total : 251 M€ AO Merger 24 25 6 41 75 Fair Value Origin 129 86 58 Operating 60 Provisions 109 93 56 Pensions Dec. 31st 2000 Dec. 31st 2001 Dec. 31st 2002 Turning Client Vision into Results 15
Consulting A major strategic move FY •Integration of Atos KPMG Consulting In € Millions 2002 UK & NL completed Revenue 175 •AKC consolidated from Sept. 1, 2002 Income from operations 16.0 Operating margin 9.2% •New organisation Headcount at year end 2,383 •Soft consulting market •Extensive pricing pressure France 13% •Restructuring actions : – UK : Q4 2002 Netherlands UK 28% 59% – NL : Q4 2002 and 2003 •Synergies : markets, clients, solutions Note : The pie chart profile includes Atos KPMG Consulting’s FY 2002 revenue on a 12 month basis Turning Client Vision into Results 16
Systems Integration Continuous adjustment to market conditions FY FY •Soft market conditions in the Netherlands, In € Millions % change 2002 2001 Belgium, Italy, Germany and Americas Revenue 1,243 1,470 -15% •Strengthened partnerships with SAP, Income from operations 65.9 128.2 -49% Oracle and Peoplesoft Operating margin 5.3% 8.7% -3.4 pt Headcount at year end 13,954 14,805 -6% •Long-term contracts up to 10% of SI revenue : Application Lifecycle Management, KPN Software House Asia Pacific 2% •Pricing pressure and volume decline partially offset by effective actions : Americas France 6% 26% – Continuous staff restructuring EMEA – Subcontractor reduction 34% – Travels… Netherlands •Steady utilisation rate improvement from 25% UK 69% (End 2001) to 74% (Q4 2002) 7% Turning Client Vision into Results 17
Managed Operations 12% revenue increase on a constant scope basis FY FY In € Millions % change 2002 2001 •Overall revenue growth in countries with critical mass Revenue 1,626 1,548 +5% Income from operations 213.6 172.7 +24% •New contracts with KPN Operating margin 13.1% 11.2% +1.9 pt •Helped Philips and Euronext reduce their Headcount at year end 12,166 11,237 +8% costs •Payment processing grew significantly in Asia Pacific 2% France and Germany : +15% EMEA Americas 13% •Improved profitability through UK 4% subcontractors reduction, capex 3% France management, premises and datacenter 44% rationalisation, purchasing efficiency Netherlands •Document management and check 34% processing activities to be sold Turning Client Vision into Results 18
Global presence All regions remain profitable Revenue Operating margin Employees FY FY % FY FY In € Millions Year end 2002 2002 2001 change 2002 2001 France 1,086 1,089 -0.3% 10.7% 9.8% 8,685 The Netherlands 913 798 +14% 13.6% 14.7% 9,019 United Kingdom 238 160 +49% 5.4% 8.1% 2,139 Other EMEA 610 718 -15% 4.7% 8.8% 6,319 Americas 132 208 -36% 5.9% 2.6% 1,210 Asia Pacific 63 66 -5% 9.1% 1.5% 1,131 Corporate -1.0% -1.5% 99 Total Group 3,043 3,038 +0.2% 8.7% 8.6% 28,602 Turning Client Vision into Results 19
2002 business performance • Top 42 key accounts – Represent more than 55% of revenue – Achieved a 17% growth excluding Philips • Philips 20% lower at € 420 M (14% of group revenue) • KPN has become No. 2 client • Lower revenue from Euronext • Numerous significant wins Turning Client Vision into Results 20
Recommend
More recommend
