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Integrated Report 2019
[GRI 102-1] [GRI 102-46] [GRI 102-47]
Integrated Report 2019 Contents
Overview Governance
This Integrated Report provides a comprehensive snapshot of the financial and extra-financial 04 Editorial by Bertrand Meunier, Chairman of the Board of Directors, Atos
performance of Atos in 2019. This is our second annual Integrated Report, in which Atos sets 06 Interview with Elie Girard, Chief Executive Officer, Atos
out its vision, strategy, business model, governance and our main financial and extra-financial
08 Group profile
achievements of the year.
10 Governance
Based on a series of financial and Corporate Social Responsibility (CSR) indicators, this report
analyzes our risks and opportunities, evaluates our impact on and our efforts to create
sustainable long-term value for our major stakeholders, as encapsulated by the raison d’être or Vision & strategy
sense of purpose that our shareholders approved in 2019.
14 Market trends
The report provides detailed information on how the action plans and solutions of Atos 16 Strategy
contribute to the United Nations Sustainable Development Goals.
The structure of this report reflects the integrated thinking approach that Atos applies when Performance
making decisions, defining strategic action plans and monitoring its performance.
22 Financial performance
24 Integrated performance dashboard
Methodology 26 Main achievements
Atos has maintained a consistent approach to methodology to ensure a transparent and 30 Sense of purpose
credible reporting environment that enables us to articulate our strategy, drive performance
and maintain a dialog with our stakeholders to meet their expectations. Corporate Social
As a member of the International Integrated Reporting Council, we closely follow the principles Responsibility
and concepts of its International Integrated Reporting Framework. We carry out an annual
Materiality Assessment with our stakeholders to help us identify the main financial and 34 Risks & opportunities
extra-financial risks, opportunities and challenges faced by Atos and to determine the Key 38 Materiality & challenges
Performance Indicators (KPIs) for monitoring our progress in these areas.
40 Stakeholders’ dialogue
This Integrated Report has been produced in accordance with the Global Reporting 42 CSR Foundations
Initiative (GRI) Standards Comprehensive option and is in line with our Universal Registration 44 Main Key Performance Indicators
Document. The overall process and reports have been assured by an external auditor. The 46 People
names of the indicators (GRI labels) are placed at the top of specific pages with the following
codification: [GRI XXX-XX]. 52 Business & Innovation
60 Ethics & Governance
Our raison d’être 66 Environment
In 2019, Atos became the first member of the CAC40 index to publish a raison d’être or sense Stakeholder information
of purpose.
72 Information for shareholders
As proposed by the Board of Directors and approved by Atos shareholders at the Annual 74 GRI Standards Content Index
General Meeting in April 2019, our raison d’être embeds the mission and the core values of
Atos into our bylaws and serves to strengthen our relationships with all our stakeholders: 85 Auditor’s assurance letter
86 Publications & Contributors
The purpose of Atos is to help design the future of the information space. Its expertise and
services support the development of knowledge, education and research in a multicultural
approach and contribute to the development of scientific and technological excellence. Across
the world, the Group enables its customers and employees, and members of societies at large
to live, work and develop sustainably, in a safe and secure information space.
TO KNOW MORE
2019 Universal Registration Document
02 Atos | Integrated Report | 2019 03
© Romi/REA
Editorial
It is a great privilege The Board of Directors determines the Company’s strategic orientations
and oversees implementation. This report is a very tangible expression
to present to you of our ability to deliver on these orientations and turn them into
concrete results.
this Integrated
Report 2019, my Positive results Clear strategic Towards a safe, secure
first as Chairman and trends orientations and sustainable
digital space
of the Board of From a strategic perspective and regarding
the financial results,, 2019 was a very
important year for our Company.
These positive results reflect the Company’s
strategic vision.
Atos’s strategic intentions are underpinned by
Directors of Atos. The acquisition of Syntel in the second half its sense of purpose, its raison d’être, which
The total revenue reached €11,588 million, up of 2018 was a major event in the Company’s was presented to shareholders in 2019.
+1.4% organically, and the operating margin progress towards creating a comprehensive
rised to €1,190 million, i.e. 10.3% of revenue, digital transformation company, which It is the Company’s sense of purpose to
Bertrand Meunier compared to 9.8% in 2018 at constant scope has world-class technology, an obsessive contribute fully and actively to making the
Chairman of Atos SE Board of Directors and exchange rates. outcome-based focus and the agility to digital space safe, secure and sustainable
deliver exceptional results for our customers. for our customers and all who work in the
Order entry reached €12.2 billion and a full The sale of Atos’s stake in Worldline has given Company, in line with its stated fiduciary and
qualified pipeline amounted to €7.4 billion, the Company increased financial flexibility social responsibility.
compared to €6.9 billion at the end of 2018, to develop its strategic ambitions, while
demonstrating our business dynamism. enhancing shareholder returns. During 2019, Atos received a number of awards
for its efforts in sustainability and its willingness
In the era of Data Management, and despite to provide transparent, standardized and
the Covid-19 crisis, Atos is well positioned, commonly accepted indicators.
as far as technological skills are concerned,
based on its outstanding expertise, and also This transparency is a long-standing
commercially through its increased customer commitment made by Atos to its clients,
centricity thanks to the Spring program employees, and the communities in which it
launched earlier this year, and also financially operates. It is a critical time for the technology
through its strengthened balance sheet, to industry, for the environment and for society
contribute to the post-crisis reconstruction, to as a whole which makes this commitment as
benefit from the many opportunities it is facing important as ever.
and, in consequence, to drive shareholder and
stakeholder value.
04 Atos | Integrated Report | 2019 05
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[GRI 102-14]
CEO Interview
In today’s What were Atos’s
highlights in 2019?
In relation to 2020, how What will be the key
do you see the year trends of 2020 and
world, business 2019 was the year of Atos repositioning as
a pure digital player, with the acquisition
ahead? beyond?
The Group is solidly positioned to navigate The first trends are adaptability and
performance
of Syntel and the disengagement from
Worldline, while enhancing shareholder through the crisis thanks to longstanding innovation: our clients’ needs evolve at a
return, in particular with the distribution relationships with its clients in all sectors, and brisk pace and it will be amplified by the
also thanks to resilient activities and to a solid impacts off the Covid-19 crisis. They all need a
cannot be
of €2.3 billion of Worldline shares and by
reimbursing the Group’s debt. balance sheet which offers a strong financial partner with the capabilities and flexibility to
flexibility. However, we will succeed mainly anticipate and adapt.
We also ended the year on a strong note, with thanks to the enthusiasm and the aim of our
decoupled from an organic growth above +2% in the fourth
quarter. These results were notably driven by an
acceleration of our performance in cloud, and in
teams to continue to take our Company to the
next level.
This need for adaptability applies to
every area of their business, from remote
collaboration across the globe to smarter
environmental and big data and cybersecurity across the year.
From a financial perspective, we also
With the launch of Spring transformation plan,
the Group is moving to an Industry approach,
developing and attracting the highest level
production sites.
Second trend: the company as a
social ambitions.” improved our operational profitability in of expertise in each Industry, reshaping its platform — the development of digital
2019 and delivered a solid free cash flow portfolio of offerings as well as its go-to-market platforms has become a must-have in most
exceeding 600 million euros. I am proud of to serve our clients even better. industries. These platforms support the
the dedication of the Atos teams in attaining explosion of business-critical applications, many
Elie Girard such a performance. To make this transformation a success, of which require local processing of data.
Chief Executive Officer, Atos we invest in our people – we help our
I believe that this strong performance is a employees acquire new digital skills, to Both trends serve one common goal:
reflection of our particular ability, both as a achieve relevant certifications for our clients, being able to deliver a superior customer
company and as individuals, to associate and elevate the “employee experience”. We experience — the experience of their
technological excellence and industry-specific invest in technologies, including bolt-on customers — which includes the ability to
expertise, in order to deliver innovation to acquisitions targeted in key offerings of our bring them innovation in real time.
support our customers’ end-to-end digital portfolio. Last but not least, we invest in our
transformation with a superior user experience. multiple partnerships and alliances. Both trends share a common prerequisite:
security, in the broadest possible sense.
It is precisely what demonstrated our 110,000 It encompasses cybersecurity and data
colleagues across the globe during the privacy, but also data portability, assuring
Covid-19 crisis by providing outstanding them that they do not depend on a single
reaction to our clients’ challenges through technology provider, particularly when it
the implementation of the “Always Ready” comes to the Cloud.
program which combines the Group’s
solutions specifically geared to the current Finally, the tidal wave which is even more
situation. As international leader in digital amplified by the current crisis is the wave of
transformation, we have also mobilized our decarbonization. Our clients are increasingly
technological leadership, our skills and our eager to join forces with a partner who can
innovation resources to participate to the support them on this path, and accelerate their
global effort against Covid-19. journey towards being sustainable, carbon-
neutral, even aiming at positive carbon impact.
Today, our minds and efforts are focused
towards the post-Covid period as we are Atos is ideally positioned to seize the
actively preparing the “new normal” — this opportunities brought by all those key trends
new era which will witness an acceleration and to enhance value creation for its clients
of the specific needs for our clients, in and all its stakeholders.
particular Data Platforms, Cybersecurity,
Cloud migration, Digital Workplace and
Decarbonization, that we have embedded
into our “Future Ready” portfolio of solutions.
06 Atos | Integrated Report | 2019 07
© Romi/REA
[GRI 102-1]
Profile
Your global partner in
digital transformation
Atos is a trusted partner guiding the digital transformation of its clients
across the sectoral landscape, deploying cutting-edge technologies to 110,000 employees working in 73 countries representing 134 nationalities
bring about sustainable growth and long-term value.
Atos is a global leader in digital research in a multicultural approach and Our leadership in cybersecurity and corporate
transformation and is the European contribute to the development of scientific social responsibility ensures a safe, ethical and
number one in cloud, cybersecurity and and technological excellence. Across the sustainable journey of digital transformation.
high-performance computing. We provide world, the Group enables its customers and With a business strategy that integrates
end-to-end vertical solutions, smart data employees, and members of societies at financial and extra-financial priorities, our
platforms and infrastructure solutions, large to live, work and develop sustainably, in 110,000 people in 73 countries combine
working closely with global technology a safe and secure information space. business acumen with a commitment to
partners and leveraging innovations in addressing the environmental, ethical and
business platforms, customer experience Our solutions and services provide agile, social challenges we all face.
and digital workplace, artificial intelligence scalable and trusted foundations to support
and hybrid cloud. clients in their digital journey. With our know- Atos is the Worldwide Information
how and industry-specific expertise, we help Technology Partner for the Olympic &
The purpose of Atos is to help design clients digitize their customer experience, Paralympic Games and operates under the
the future of the information space. foster business reinvention, streamline brands Atos, Atos | Syntel, and Unify. Atos is
Its expertise and services support the operational excellence and guarantee trust a SE (Societas Europaea), listed on Euronext
development of knowledge, education and and compliance. Paris and included in the CAC40 stock index.
Maintaining our leadership in sustainability in 2019
Ranked for the third time as the most sustainable North America Germany Benelux & The Nordics Middle East & Africa
company in the IT and software services sector by Atos is ranked in the top 10% of its
the Dow Jones Sustainability Indexes (DJSI) World sector by ISS Oekom. 11,000 employees 9,500 employees 5,500 employees 2,500 employees
and Europe. €2,725 M revenue €2,167 M revenue €1,047 M revenue €163 M revenue
South America France Central & Eastern Europe Asia Pacific
Triple A score for Atos in the Environmental, Social,
In the CDP’s ‘A List’ in 2019 for our leading efforts to 13,000 employees 5,000 employees
Governance rating by Morgan Stanley Capital 3,000 employees 45,500 employees
tackle climate change. International, which ranks Atos among the top 5 €1,796 M revenue €874 M revenue
€180 M revenue €499 M revenue
companies in the IT and software services sector.
UK & Ireland Iberia
9,500 employees 5,500 employees
This 2019 Integrated Report has been prepared in
Gold level from EcoVadis for corporate social accordance with the GRI Standards and has successfully €1,669 M revenue €468 M revenue
responsibility assessment. completed the GRI Content Index Service.
TO KNOW MORE
2019 Universal Registration Document
> Section D - Corporate Responsibility
€11,588 million 10.3% €605 million* €235 million 31% 4,500
Annual revenue Operating margin revenue Free cashflow annual investment in R&D female employees active patents
* excluding €37 million of one-off items related to Optional Exchangeable Bond
08 Atos | Integrated Report | 2019 09
[GRI 102-15][GRI 102-26] [GRI 102-28] [GRI 103-2-Economic performance], [GRI 103-2-Market presence],
[GRI 103-2-Indirect economic impacts], [GRI 103-2-Procurement practices], [GRI 103-2-Anti-corruption], [GRI 103-2-Energy],
[GRI 103-2-Emissions], [GRI 103-2-Employment], [GRI 103-2-Training and education], [GRI 103-2-Diversity and equal opportunity],
[GRI 103-2-Customer privacy], [GRI 103-2-Socio-economic compliance] and [103-2 Atos specific indicators]
Governance
Board of Directors
The Board of Directors defines the strategy of the Atos group and Activities of the Board of Directors and of the Board’s committees in 2019
oversees the implementation of the strategy. The Board endeavors to
Board of Directors
promote long-term value creation by the company by considering the In 2019, the Board of Directors controlled
social and environmental aspects of its activities. and audited the integrity of the financial
statements and reviewed and approved
the 2020 budget as well as all financial 12 Board members 10 meetings in 2019 85.12% attendance1 80% Independent
information, reports and forecasts. The Board Directors
approved the company’s strategic plan,
Bertrand Meunier proposed the distribution of Worldline shares
Chairman of the Board of Directors (appointed Elie Girard to Atos shareholders which was approved
November 1, 2019 following the resignation of Thierry Atos Chief Executive Officer (appointed as CEO
by the 2019 Annual General Meeting, agreed
Breton as Chairman and CEO) on November 1, 2019 following the resignation of the sale of Worldline shares and the issue
Independent Director and Member of the Nomination Thierry Breton as Chairman and CEO, and appointed of bonds exchangeable into Worldline
and Remuneration Committee and Audit Committee as Director on December 16, 2019) shares, and approved several acquisitions, 40% women2 59.67 average age 2 employee 58% French,
including the acquisition of Maven Wave, representatives 42% other
a Cloud transformation leader based in
North America. The Board also approved
the Atos group’s CSR initiatives and targets 1
for 2019
and developed the company’s proposal for a 2
In accordance with art. L. 225-23 and L. 225-27-1 of the French Commercial Code, the Directors representing
raison d’être. the Employee shareholders and the Employees are not taken into account when determining the ratio
Vivek Badrinath of gender diversity on the Board of Directors.
Independent Director and Member of the Audit Aminata Niane
Committee Lead Independent Director
Chief Executive Officer of Africa, Middle East Asia and International Consultant The Audit Committee The Nomination and The Corporate Social
Pacific, Vodafone
The Audit Committee prepares and facilitates Remuneration Committee Responsibility Committee
the work of the Board of Directors in its The Nomination and Remuneration The Corporate Social Responsibility
analysis of the accuracy of the company’s Committee seeks and examines any Committee has been in place since
Lynn Paine corporate and consolidated accounts and application for an appointment to the January 2019. It reviews Atos’s social and
Nicolas Bazire Independent Director and Member of the Audit monitors the financial reporting process. position of member of the Board of Directors environmental responsibility strategy
Committee and CSR Committee In 2019, the Audit Committee reviewed
Independent Director, Chairman of the Nomination and or to a position of manager who holds a and the rollout of related initiatives
Remuneration Committee John G. McLean Professor of Business Administration, the accounting and financial documents, corporate mandate of the Company. In together with its social and environmental
Harvard Business School, Senior Associate Dean for including statements related to off-balance
General Manager of Groupe Arnault SE
International Development addition to examining Board members’ responsibility commitments in light of
sheet items, before their presentation to the potential conflicts of interest, the Committee the challenges, risks and opportunities
Board. The Committee also reviewed the main formulates proposals in relation to senior specific to Atos’s business and objectives,
accounting items and methods and examined management compensation and makes in areas such as Wellbeing@work,
the quarterly financial reports on the Group’s recommendations for the company’s diversity and the environment. In 2019,
performance, the consolidated accounts for profit-sharing policy. In 2019, the Committee the Committee formulated opinions
Valérie Bernis Vernon Sankey 2018, the half yearly accounts for 2019, and made proposals for the compensation and recommendations for the Board of
Independent Director, Chairman of the CSR Committee Independent Director, Chairman of the Audit Committee the draft financial press releases before their of the newly appointed Chairman of the Directors about the Group’s CSR initiatives
Company Director and Member of the CSR Committee submission to the Board of Directors. Board of Directors and CEO and proposals and targets and developed proposals for
Officer in companies
in connection with a performance-based the company’s raison d’être.
share plan for Group employees which
includes CSR performance conditions.
Independent Director Chair Independent Director Chair Independent Director Chair
Cedrik Neike Jean Fleming 4 Members 3 Members 3 Members (from April 25, 2019)
Director Director representing the employee shareholders and
Member of the Managing Board of Siemens AG and CEO Member of the Nomination and Remuneration Committee
75% Independent Directors
Smart Infrastructure Leadership Coach, United Kingdom 67% Independent Directors 100% Independent Directors
(100% from February 18, 2020)
7 Meetings in 2019 5 Meetings in 2019 3 Meetings in 2019
Colette Neuville Farès Louis
Independent Director Employee Director
92.9% Attendance 86.7% Attendance 100% Attendance
Chairman & Founder of ADAM Business Developer
TO KNOW MORE
2019 Universal Registration Document
> Corporate Governance
10 Atos | Integrated Report | 2019 11
Governance
Group Management
Committee
In February 2020, Atos established a Group Management Committee,
replacing the former Group Executive Committee.
© Romi/REA
The Group Management Committee’s role is to execute the Group strategy and to ensure value is delivered to all customers and stakeholders. The
Group Management Committee is composed of the CEO and 19 members, the heads of Industries, Regional Business Units, Divisions and Functions.
Elie Girard
Chief Executive Officer
Industries Divisions Regional Business Units Functions Robust governance in all areas
Eric Grall Eric Grall Bryan Ireton* Uwe Stelter
Head of Manufacturing Chief Operating Officer Head of North America Chief Financial Officer
The Group Risk The Advisory Ethics Committee The Corporate Social
Adrian Gregory Jo Debecker Ursula Morgenstern Philippe Mareine Management Committee The Group Management Committee Responsibility Program
Head of Financial Services & Insurance Head of Infrastructure & Data Head of Central Europe Chief Digital & Transformation Officer determines the direction and priorities of
The Group Risk Management Committee While the Board-level Corporate Social
Management and Head of CSR
meets on a monthly and if required weekly ethics and compliance at Atos, establishing Responsibility (CSR) Committee is directly
Pierre Barnabé Peter `t Jong basis to review the most significant and a culture of integrity, ethics and compliance, involved in defining the CSR strategy and
Head of Public Sector & Defense Adrian Gregory Head of Northern Europe Paul Peterson allocating necessary resources and
sensitive contracts. The Committee is chaired priorities, the Group Management Committee
Head of Atos|Syntel (supported by Head of Human Resources monitoring progress.
Rakesh Khanna, CEO Atos|Syntel) by the Group Chief Financial Officer and led validates the Group’s CSR strategy and
Jean-Philippe Poirault Jean-Philippe Poirault by the Senior Vice-President for Bid Control implementation program.
Head of Telecom, Media & Technology Head of Southern Europe Sophie Proust and Business Risk Management. Permanent An Advisory Ethics Committee, composed
Nourdine Bihmane Chief Technology Officer of independent and highly respected
Head of Public & Regional
members of the Committee include the The CSR Program and the core global
Giuseppe Di Franco Nourdine Bihmane Senior Executive Vice-President Operations, external professionals, provides advice to the CSR team are supervised by the Chief
Head of Resources & Services Head of Growing Markets Alexandre Menais Executive Vice-Presidents in charge of Group Management Committee on ethical Digital & Transformation Officer, who is the
Pierre Barnabé General Secretary and compliance issues requiring ethical
the Global Divisions and several other Head of CSR and a member of the Group
Head of Big Data & Cybersecurity
Robert Vassoyan representatives from the Global Functions, judgements, notably in connection with Atos’s Management Committee and who reports
Head of Healthcare & Life Sciences Gilles Arditti including Finance and Legal. operations. The Advisory Ethics Committee directly to the CEO.
Robert Vassoyan Head of Investor Relations and Internal is sponsored by the Group Chief Executive
Head of Unified Communications & Audit Officer and supported by the General
Collaboration
Weekly and monthly reviews are organized
Secretary and Chief Compliance Officer. to design, implement, and monitor the main
Marc Meyer actions and targets. Specific channels are
Enguerrand de Pontevès Head of Executives and Head of in place to facilitate communications across
Head of Performance Marketing & Communications
business units and regions.
Members of the Scientific Community and
other Atos talents support the CSR Program
by providing innovative ideas and proposals
for strengthening Atos’s CSR commitments
and enhancing its positioning in the market.
TO KNOW MORE
2019 Universal Registration Document
> Corporate Responsibility
* As of June 2020
12 Atos | Integrated Report | 2019 13
[GRI 102-15]
Market trends
Welcome to a world of
exponential change
Digital transformation drives business singularities
The data revolution started in the 1960s when Now more than ever, at this turning point of ecosystems of multiple infrastructures, and
mainframe computers began to transform the digital revolution, businesses need robust, delivering industry-specific digital solutions,
the processes of large organizations. In the innovative and sustainable partners. If they Atos is helping to build the industries of
1980s and 1990s, the arrival of the PC and are to successfully navigate the challenges tomorrow and is turning customer-centric, data-
the worldwide web raised productivity to of digital transformation and seize the driven ecosystems into a reality.
a new level. More recently, social media, opportunities, not only their models but also Security Customer centricity
smartphones, cloud computing and analytics their values must evolve. Pervading all our offerings, our leadership Digital security, trust & Customers expect real-time
have changed consumer life forever. in cybersecurity and CSR puts trust and compliance becomes vital Sustainability multi-experience
As a global leader in digital transformation sustainability at the heart of the digital enterprise.
We are now at the dawn of a new era in and corporate social responsibility, Atos aims
is the new
the information age. As technologies such to be the trusted partner of its clients as As our raison d’être or sense of purpose imperative
as the Internet of Things, edge computing, they progress on their journey of sustainable makes clear, our mission is to design the
artificial intelligence, blockchain and quantum transformation. future of the information space in a safe,
computing accelerate, data is emerging as the secure and sustainable way. At a time of
fundamental driver of businesses in all sectors. Drawing on our expertise in cutting-edge dramatic technological, political, social and
technologies and on our ecosystem of environmental changes, our strong set of Critical operations New business models
With the development of neurotech, genomics strategic partners, Atos is uniquely positioned values, our commitment to shared value and
and other cutting-edge innovations, it will not to help its clients thrive. By implementing digital responsibility are more important than
Ecosystems and IoT change the Data-driven platform models
be long before data begins to drive life itself. smart data platforms and services, managing ever before. critical operations game are the next big thing
TO KNOW MORE
2019 Universal Registration Document
> Corporate Responsibility
14 Atos | Integrated Report | 2019 15
[GRI 102-14]
Strategy
Global leadership in digital Roadmap to a sustainable
services — whatever digital future
the challenges The pace of digital transformation is accelerating as information moves
beyond traditional datacenters and the cloud.
In 2019, Atos published an ambitious three-year plan for 2019-2021.
In this fast-changing era, real-time data orchestration, open platforms and intelligent automation are becoming critical to the future of enterprise.
This plan eflects our ambition to Transforming Infrastructure RACE: digital productivity As part of its growth plan, Atos is building the customer-centric, data-driven business systems of the future while assisting our clients to meet
grow as a company, with the agility & Data Management and agile collaboration the challenges and uncertainties posed by Covid-19. We are developing ecosystems of multiple infrastructure solutions, creating smart data
to support its clients and all its By 2021, Atos will have mostly completed the With RACE, Road to Agile Competitiveness & platforms and services and providing industry-specific expertise and solutions. End-to-end sustainability and security are critical imperatives
migration to its Cloud and Hybrid Cloud offering Excellence, Atos aims to take full advantage across this new generation of data-fueled business services.
stakeholders to rise to every challenge,
including that posed by the Covid-19 for its main clients. Atos will reposition its of automation to enhance its productivity and
Infrastructure and Data Management business increase its operational profitability. Our offerings in these areas leverage key innovations from Atos’s partners and from our own R&D programs, including eight strategic technologies:
pandemic, with the objective of to meet clients’ needs for the new levers of
working and developing sustainably in growth in this business: the Internet of Things Maintain excellence in Advance computing Artificial intelligence Automation Edge computing
a safe and secure information space. and Edge Computing. people skills and CSR This comprises the design of Atos is the leading AI player in As the largest integrator in Atos designs and manages edge
advanced hardware systems with Europe and AI capabilities include Europe, Atos designs the devices, processing, securing and
At a time of increasing complexity and digital
The new strategy is bolstered by Accelerate business transformation the associated software stacks, pretrained Maching Learning/AI technology to enable the gaining insights of data coming
dilemmas, Atos recognizes that it will only be
the emerging culture and values with Atos|Syntel plus our pioneering program models as well as the capability to automation of IT operations, from sensors of the Internet of
able to achieve its ambition if it integrates strong
that support the Atos group’s raison for quantum computing. Atos is design, train and run new models taking Robotic Process Things (IoT) and Operational
Following to the acquisition of Syntel, over the values and best practices in corporate social
number one in high performance on multiple infrastructures. Automation to the next level. Technology (OT).
d’être, which became part of the next three years Atos Business & Platform responsibility across all its operations. The
computing in Europe.
company’s by-laws in 2019. Linked to Solutions aims to double its revenue from success of our strategy is closely linked to our
Digital (AI, Analytics, IOT, Automation, CX, continued commitment to training our people
this is our approach to corporate social Immersive experience Hybrid cloud Modern applications Cybersecurity
Mobility, Cloud), leveraging the skills and in digital skills for the data economy, attracting
responsibility which is a significant competences of its worldwide technology the best talent and applying strong ethical Our solutions address the Atos is the largest cloud player in Through the design, Atos deploys technologies that
business enabler for Atos and is an and services platforms. values and best practices in CSR. transformation that is taking Europe. Our hybrid cloud solutions development, deployment and power encryption, identity and
integrated part of our growth strategy place in the digital workplace encompass agnostic multi-cloud management of cloud-native access management, and end-to-
as a global pure play digital leader. Big data and cybersecurity Our People strategy is based on five major and customer experience, management and orchestration, applications with fast time-to- end prescriptive security solutions
for trusted intelligence Human Resources programs: including communications, providing mobility for our client’s market, as well as blockchain- which identify and block threats
Four main levers Atos Big Data & Cybersecurity provides
the high-end computing powering big
• My Future: creating a unique end-to-end
online collaboration and cutting-
edge innovations.
data and workloads, as well as
dedicated solutions with our global
based platforms, Atos is creating
the open and agile business
before they materialize. Atos is
the world’s third largest Managed
value proposition for our employees; cloud partners. platforms of tomorrow. Security Services provider and a
1
Technology expertise and data algorithms, cybersecurity and mission
• Be Digital: equipping all our employees pioneer in IoT security.
partnerships, based on our critical technologies, helping customers
succeed in the data era. Our “cybersecurity with certified digital skills by 2021;
pool of experts, patents, annual Across our €235 million annual R&D investments, sustainability, ethics and security are incorporated by design. This reflects the commitment
everywhere” approach represents the • MyExperience: building on the successful
investments of c. €235m in R&D foundations of the Atos digital value
expressed in our raison d’être to design the future of the information technology space and to enable all members of society to live and work
Wellbeing@work initiative putting specific sustainably in this new era.
and our partnerships with key proposition. emphasis on social value, diversity and
technology enablers. inclusion; The innovations that emerge from our R&D efforts support our vision of using technology to create a more sustainable, responsible and fairer world.
Focus on industry verticals • Value Sharing: further engaging all
2
Mobilize and develop people
skills and key talents, attracting
Atos is strengthening its customer-centric
approach through a reinforced vertical go-to-
employees in the company’s success; and Pioneering the future of technologies
the best talents from leading market approach, using all of Atos’s capabilities
• Entrepreneurship: exploring new ways of Our innovation ecosystem helps you get one step ahead
working and leveraging our ecosystem of
universities, developing their skills. from Infrastructure & Data Management,
startups and contingent workers.
Business & Platform Solutions, Big Data & Industry expertise
Modern Applications
3
Industry focus with a vertical Cybersecurity and from its partners. & solutions
IT industry consolidation
go-to-market approach, focusing
We are focusing on six key vertical markets; Our M&A strategy will focus on specific verticals
on six key industry sectors. Manufacturing; Financial Services & Insurance; and on the acquisition of new clients and Smart data platforms Automation Artificial Intelligence Immersive Experience
Public Sector & Defense; Telecom, Media & technological capabilities. The Group will also & services Virtual Agent & RPA Exascale / quantum AR/VR / NeuroTech
4
Enhance and automate the Atos Technology; Resources & Services (includes play a major role in the consolidation of the
delivery model, to improve former Retail, Transportation & Logistics and cybersecurity market. All acquisitions will be
client satisfaction, minimize lead Energy & Utilities); Healthcare & Life Sciences. carried out with the same financial discipline as Ecosystem of multiple Hybrid Cloud Edge Advance Computing
in previous years. infrastructures Cloud Computing IoT/Edge / D-Twin Smart Machines
time, maximize productivity and
increase margins.
Cybersecurity
Security everywhere Quantum-safe /
Prescriptive Security IoT sec / BlockChain
Homomorphic Encryption
Enterprise to Enterprise sustainability Green IT Digital for Green Sustainable economy
Strategic partnerships with Dell Technologies, Google, Microsoft, Oracle, SAP, Cisco, Siemens.
16 Atos | Integrated Report | 2019 17
[GRI 102-14]
Strategy
Imagining
the future
With Sophie Proust, Chief Technology Officer, Atos
You were appointed How can new How are these What are the
Atos CTO in January technologies help innovations helping main strengths of
2019. What role does address the challenges Atos’s customers R&D at Atos?
technology play in of sustainability respond to their own Thanks to our size, we are in a real position to
Atos’s growth strategy? in the IT world? CSR challenges? make a real difference. We have around 4,500
active patents and produce more than 100
Digital is transforming our day-to-day lives. Our raison d’être commits Atos to designing Atos is mobilizing its technological patents each year. We have a network of 14
With the increasing amount of data available, a more sustainable digital future. Just like expertise and its CSR values to fight R&D centers around the world. Another lab will
the business models of our clients are facing security, end-to-end sustainability is an Covid-19. At this challenging time, Atos open in France in 2020, focusing on artificial
major disruption. Technology is enabling imperative that permeates all our R&D provides solutions and computing intelligence. We are at the center of a large and
these huge changes, and Atos is investing activities. power to help contain the spread of the growing network of partnerships, from major
significantly (€235M in 2019) in Research & virus, support the scientific community, technology providers to top universities and
Development (R&D) and innovation. For example, Atos is the European leader accelerate vaccine research and ensure promising startups.
in high performance computing. As we business continuity for critical activities.
Our technological expertise and our capacity advance toward exascale, supercomputing For example, Atos has designed EpiSYS, However, there is much more to R&D at Atos
for innovation are major drivers of client without doubt will consume more energy. an Epidemic Management System (EMS) than just our size. It is above all the quality
satisfaction and business growth. We are focused on increasing energy which helps healthcare professionals to of our people and the values that we share
efficiency as much as on increasing control the spread of the virus and manage that gives Atos such a powerful culture of
computing performance. Thanks to the epidemic. Also, our supercomputers innovation. Across the 160 members of our
innovations such as our patented Enhanced are at work around the world — whether Scientific Community and the more than
Direct Liquid Cooling system, which uses they are used for simulation to build 2,200 people in our Expert Community, we
warm water rather than air for cooling, our predictive models, analyze the progress of all believe in driving effective change where it
supercomputers (23 Atos systems are in the the disease or develop new treatments. matters most. As technology reaches a new
Green500 list) are some of the most energy tipping point, it is more important than ever to
efficient supercomputers in the world — as We have a client-centric approach. We adopt a human-centric, responsible approach
well as some of the most powerful. believe above all in technology that is to innovation. This is what makes Atos unique.
usable — in technology that makes a
difference. In today’s world, nowhere is it
more important to make a difference than
in the area of sustainability. For example, our
supercomputers are enhancing the ability
of scientific institutions to model climate
change and sequence human genomes.
The innovations we produce are also
meeting growing demand from our clients
for IT for Green offerings, such as precision
farming and earth observation services.
18 Atos | Integrated Report | 2019 19Business model
Sustainable and inclusive
value creation
To fulfil its principal aim of being the trusted partner of its clients in This business model enables Atos to continuously create shared and
their journeys of digital transformation, Atos has developed a solid inclusive value for all its stakeholders: employees, clients and partners,
business model based on sustainable growth, distinctive technology investors, suppliers, community and society in general. Atos’s
platforms, industrial expertise and vertical solutions. integrated management dashboard illustrates how we measure both
financial and extra-financial performance.
Business Model
Capitals Value created for KPIs dashboard
Expertise Platforms Solutions our stakeholders
Industrial
Digital services and datacenters
in 73 countries
Meet the challenges of a Design, build & run leading Deliver vertical focused People
data-driven economy • Employees’ satisfaction
business technology platforms solutions and services to thrive Highly skilled employees and great
• Great Place to Work Index®
in a digital world place to work
Industry expertise and solutions
Human Digitize customer • Healthcare & Life Sciences
c.110,000 employees experience and business Smart data platforms and Clients & partners
and a Scientific Community models services • Energy & Utilities Client satisfaction, co-innovation and
• Customer Loyalty
• Net Promoter Score
Ecosystems of multiple • Telecom, Media & competitiveness
Intellectual Streamline operational infrastructures Technology
14 R&D Centers and excellence • Retail, Transport & Logistics Investors • Organic growth revenue
4,500 patents Business growth and long-term • Operating margin rate
8 domains of innovation: • Public Sector & Defense relationships development • Free cash flow
Ensure trust & compliance
Financial • Modern applications • Manufacturing
Solid financial structure and
• Immersive experience • Financial Services &
Suppliers • Sustainable supply chain
unique ecosystem of partners High risk management standards • Total spend assessed by Ecovadis
3 Divisions: Insurance
• Artificial intelligence and ethical value chain • Ethical behavior
• Big Data & Cybersecurity
Social & Relationship • Automation
Strategic partners and • Business & Platforms Communities & society
Stakeholders’ network Solutions • Hybrid cloud Inclusive economic growth & eco- • Carbon Intensity
in whole value chain friendly operations
• Infrastructure & Data • Advanced computing
Management including
Natural Unified Communications • Edge and IoT
Sustainable technologies and & Collaboration
decarbonized energy
• Cybersecurity
TO KNOW MORE TO KNOW MORE TO KNOW MORE TO KNOW MORE
2019 Universal Registration Document 2019 Universal Registration Document 2019 Universal Registration Document 2019 Universal Registration Document
> Expertise > Sales & delivery > Financials > Corporate Responsibility
20 Atos | Integrated Report | 2019 21[GRI 201-1]
Financial performance
Acceleration and an Breakdown of revenue in 2019
2019 statutory figures
industry approach By Geographic Business Unit
After a year of strong commercial activity Atos completed 2019 19% 24%
Other Business Units North America
with organic revenue growth of 2.2% in the fourth quarter, led by an €2,192 million €2,725 million
acceleration of our performance in Cloud, Big Data and Cybersecurity.
9%
Benelux &
Over the course of the year, our ability to drive our clients’ enterprise- Each division contributed to the increase in profitability, with Infrastructure The Nordics
wide and end-to-end digital transformation generated significant new & Data Management benefitting from automation and the RACE €1,047 million
contracts across our business units and divisions. Order entry reached program, Business & Platform Solutions from the cost synergies with
€12.2 billion, representing a book-to-bill ratio of 106%. During the fourth Syntel, and Big Data & Cybersecurity from double-digit topline growth.
14% 19%
quarter, the book-to-bill ratio reached 121%. Germany
With the acquisition of Syntel and the disengagement from Worldline, United Kingdom €2,167 million
We also improved our operational profitability in 2019 and delivered Atos has successfully begun to reposition itself as a pure digital player. & Ireland
free cash flow exceeding €600 million. The operating margin was To serve our customers even more effectively, we are now moving €1,669 million
15% By Division
€1,190 million, representing 10.3% of revenue, compared to 9.8% in towards an industry-led organization, reshaping our portfolio of France
2018 at constant scope and exchange rates. offerings and reinforcing our go-to-market approach. €1,788 million 9%
Big Data & Cybersecurity
€1,050 million
55%
Revenue Operating margin* Infrastructure
36% & Data Management
Business & Platform €6,321 million
2019
2019
€11,588 million €1,190 million, 10.3% of revenue Solutions
By Market €4,216 million
16%
2018
2018
€11,430 million* €1,125 million, 9.8% of revenue
Telcos, Media &
Utilities
€1,869 million
0 2000 4000 6000 8000
* at constant scope and exchange rates
10000 12000 0 200 400 600 800
* at constant scope and exchange rates
1000 1200
36%
Manufacturing, Retail
& Transportation
19% €4,139 million
Financial Services
Free cash flow Headcount €2,169 million
2019
2019
€605 million* 108,317
29%
€451 million Public & Health
2018
2018
122,110* €3,411 million
(excluding Worldline)
“Atos recorded strong financial performance in 2019, with an acceleration in
0 100 200 300 400 500 600 700 800 0 30000 60000 90000 120000 150000
* excluding €37 million of one-off items related * including 11,474 Worldline staff as of December 31, 2018
revenue and an improvement in operational profitability. Driven by our expertise
to Optional Exchangeable Bond in technologies such as hybrid cloud, big data and cybersecurity, organic growth
exceeded 2% in the fourth quarter. Our leadership in sustainability is generating
new business opportunities for us and is ensuring the responsible digital
transformation of our clients.”
Uwe Stelter
Chief Financial Officer, Atos TO KNOW MORE
2019 Universal Registration Document
> Financials
22 Atos | Integrated Report | 2019 23[GRI 102-14]
Integrated performance dashboard
Measuring our integrated
performance People
To increase the Atos Great Place to Work Trust
Business & Innovation
To maintain the good score of the
KPI
KPI
At a time when investors and stakeholders are increasing their focus on companies’ environmental and social performance, Atos outperformed Index© reflecting employee satisfaction Net Promoter Score for our clients
in all areas in 2019 and confirmed its position as a global leader in corporate social responsibility. By integrating social, ethical and environmental
dimensions into our strategy and the design of our digital solutions, we are playing a major role in shaping a more sustainable future for the
information society, in line with the mission of our raison d’être.
2017
2017
54% 48%(1)
Finance
2018
2018
57% 48% (including Worldline)
KPI
Organic growth revenue Operating margin rate Free cash flow
2019
2019
59% 59% (excluding Worldline)
2017
+2.3% 10.2% 0.7bn
to Top10% Industry Benchmark based
2021
2021
on the number of countries recognized 50%(2)
2018
+1.2% 10.3% 0.7bn as a Great Place to Work®
2019
+1.4% 10.3% 0.6bn
Ethics & Governance Environment
To increase the % of
As the three-year plan presented at the Investor Day held on January 30, 2019 and covering the period 2019-2021 was To increase the % of
2021
total spend assessed by To reduce CO2 emissions by revenue
KPI
KPI
pre Covid-19 effect, the Group suspends its targets for 2021, the last year of the three-year plan. The Group will present its employees trained in
supplier sustainability (tCO2 per €Million)
vision as well as its mid-term targets at the 2020 Analyst Day. the Code of Ethics
rating agency EcoVadis
2017
2017
91% 54% 24.9(3)
2018
2018
92% 55% 22.5(3)
2019
2019
95% 56% 21(3)
2021
2021
100% 70% –7 to –20%(4)
(1)
NPS for top clients including Worldline
(2)
above 50% for larger client scope
(3)
Global GHG emissions (tCO2e) after uplifting to 100% and rebaselining taking into account acquisitions and divestitures
(4)
2016 baseline
24 Atos | Integrated Report | 2019 25Main achievements
A year of purpose
and progress
2019 key achievements
January February March April May June
Atos launches its strategic growth plan Support for LGBT+ rights at work 5-year contract to digitize healthcare in Digital transformation for energy in Italy Democratizing quantum learning Managed workplace services for National Grid
At its Investor Day, Atos launches its three-year Atos signs the United Nations’ Standards of Australia Italian energy company Illumia digitally transforms Atos launches myQLM offering free access to Atos signs a $150 million contract to deliver digital
plan to reinforce its global profile as a pure player in Conduct for Business and the Autre Cercle Charter The Western Australian Department of Health its business in just 15 months using Atos’s digital quantum programming for researchers, students Managed Workplace Services for National Grid’s
digital services. of LGBT+ Commitment, pledging its support for selects Atos to transition its digital infrastructure into energy platform. and developers worldwide. core energy business, spanning the UK and
lesbian, gay, bisexual, transgender and intersex a more agile and accessible cloud-based solution to northeastern US.
Trailblazer in managed workplace services people at work worldwide. improve patient care while reducing cost. Atos meets carbon emission targets World-leading edge computer
Atos is positioned as a leader by Gartner in its Atos confirms that in 2018 it offset 100% of carbon Atos launches BullSequana Edge, the highest- Leader in datacenter outsourcing
Magic Quadrant for managed workplace services Atos advances the quantum revolution Facial recognition at the Olympic Games emissions from its datacenters, offices and business performing edge computing server in the global Gartner positions Atos as a leader in its Magic
for both Europe and North America. Atos delivers its most powerful quantum simulator Atos will enhance the security of the Olympic & travel, through a dedicated wind farm project in India. market. Quadrant for datacenter outsourcing and hybrid
to the Hartree Center, the UK’s high performance Paralympic Games Tokyo 2020 with its Advanced infrastructure managed services for both Europe and
Secure communications for the vehicles of the computing research facility, to accelerate its study Access Control System, based on a NEC facial AI research partnership in France with Google Worldline carve out North America.
future of new quantum-based computing applications. recognition sofware and Panasonic cameras, for Cloud Following the approval by Atos shareholders at
Atos releases its new Horus security suite for athletes, coaching staff, journalists and volunteers. Atos and Google Cloud officially launch a joint the Annual General Meeting of April 30,2019 of the France’s most powerful research supercomputer
intelligent transportation systems (ITS), a solution Climate change leader artificial intelligence laboratory, unique in France. exceptional distribution of around 23.5% Worldline’s Atos delivers to France’s high performance
which provides security to communications in Atos is recognized by the CDP as a global IT sector Enabling mass-production of satellites share capital to Atos shareholders, Atos distributes computing organization GENCI its Joliot-Curie
connected vehicles. leader taking action to reduce emissions and Atos supports OneWeb in the successful launch New global delivery center in India in kind Worldline shares at a ratio of two Worldline supercomputer, whose processing power is expected
mitigate climate risks. of six satellites, making the world’s first mass- Atos opens a new 100-acre campus in Tirunelveli, shares for every five Atos shares held, leading to the to reach 22 petaflops.
production of satellites a reality. southern India, where 2,300 software engineers deconsolidation of Worldline from the Atos group.
Momentum grows to advance cybersecurity will deliver digital and technology solutions to
Together with the other signatories to the Charter global clients.
of Trust, the world’s first agreement of its kind to
drive cybersecurity across global supply chains, Recognition as a SAP HANA and S/4HANA leader
Atos welcomes two government authorities Global research firm NelsonHall assesses Atos as a
as associate members who are committed to leader based on its capabilities to provide end-to-
advancing cybersecurity. end services, support client adoption of S/4HANA
in the cloud and its ability to leverage analytics and
IoT to deliver business cases.
Atos shareholders make history in France
Shareholders at the Atos Annual General Meeting
overwhelmingly approved the adoption of the
company’s raison d’être or sense of purpose
which is now part of the Atos Group’s Articles of
Association. Atos is the first CAC40 company to
take this step.
26 Atos | Integrated Report | 2019 27Main achievements
A year of purpose
and progress
2019 key achievements
July August September October November December
Atos expands Google Cloud partnership Transforming emergency communications in Leadership in CSR performance Bayer selects Atos for digital workplace Atos CFO Elie Girard appointed CEO Top rankings from MSCI
Atos supplies its high-performance BullSequana S California Atos is ranked Number 1 in the IT and software Atos signs a major contract to deliver Digital After 11 years as Atos Chairman and Chief Executive Atos obtains a triple A score in the ESG rating from
servers to two regional Google Cloud datacenters The State of California awards Atos a five- services sector in the Dow Jones Sustainability Workplace Services to German multinational Officer, Thierry Breton resigns in preparation for his MSCI (Morgan Stanley Capital International) and is
in Germany and North America, to support Oracle’s year contract to transform its 911 emergency Indices for the World and Europe and is awarded pharmaceutical and life sciences company Bayer. appointment as France’s European Commissioner, ranked among the top five companies in the IT and
database customers. communications system. Gold level by EcoVadis for its performance in and Bertrand Meunier (as Chairman of the Board) software services sector.
corporate social responsibility. AI lab in Texas and Elie Girard (as CEO) take the helm to lead Atos
Agriculture solution wins Atos IT Challenge Quantum cooperation with India Atos unveils its North American Artificial into its next era of transformation. Uwe Stelter takes Boosting the development of quantum
2019 Atos and India’s Center for Development of Advanced AI lab in Munich Intelligence Lab in Irving, Texas, in partnership with on the role of Chief Financial Officer. applications
Students from the Technical University of Berlin Computing agree to collaborate in the fields of The latest addition to Atos’s global artificial Google Cloud. Atos creates the world’s first Quantum User Group,
win the Atos IT Challenge 2019 with an app that quantum computing, artificial intelligence and intelligence (AI) network opens in Munich to Powering Triple Five Group’s American Dream comprising QLM customers, research centers,
uses machine learning to reduce the amount exascale computing at Atos’s operations base in Pune. develop business solutions using AI and other Atos acquires IDnomic, a digital identity leader Triple Five Group enlists Atos to build and universities and global industrial companies, to
of fertilizer and pesticide used in agriculture. cutting-edge technologies for its clients. Atos completes the acquisition of IDnomic, the manage a smart IT experience using IoT and AI drive advances and share best practice in quantum
European leader in digital identity management for American Dream, its three-million square foot programming and simulation.
Microsoft Azure New HPC test Lab in Angers infrastructure and PKI. entertainment and retail complex in New Jersey.
Atos becomes a Microsoft Azure Expert Managed Atos inaugurated its new global High- Acquisition of Maven Wave
Service Provider (MSP). Performance Computing (HPC) Test Lab in X-Perion acquisition boosts Worldgrid activity Optimizing renewable electricity with Météo- Atos acquires Maven Wave, a US-based Google
Angers (France) providing its clients worldwide Atos acquires X-Perion, a leading IT consultancy France Cloud Premier Partner which specializes in digital
with the unique opportunity to thoroughly test within the energy sector, which is combined Atos and Météo-France, the French national transformation for large enterprises.
their supercomputing equipment under real- with the Atos owned subsidiary ENERGY4U to meteorological service, collaborate to develop
world conditions. strengthen Atos’s global strategy for the energy a service platform which uses machine learning
and utilities market. algorithms to optimize the production and
management of renewable electricity within the
Atos completes sale of Worldline shares European grid.
Following the sale of c.14.7 million Worldline shares,
Atos also issued zero coupon bonds exchangeable Improving employee experience with Google
into Worldline shares and transferred €230 million Cloud
of Worldline shares to Atos’s pension fund. Atos Atos launches Workplace as a Service | Google
retains a stake of approximately 13% of the share Edition, leveraging Google Cloud to provide an
capital and 22% of the voting rights in Worldline. optimal employee experience.
28 Atos | Integrated Report | 2019 29You can also read
