- Operating margin further improved at 6.7 per cent
- Net debt further reduced to EUR 91 million
- Revenue: EUR 2,476 million, down -0.7 per cent organically
- Book to bill ratio at 101 per cent
- AtoS is ahead of schedule in the integration of SIS and fully operational
to deliver the merger synergies
Therefore, full year operating margin guidance raised to 6.2 per cent
Paris, 27 July 2011 - AtoS, an international information technology services company, today announced its results for the first half of 2011. Thanks to the TOP transformation Program, which is now in its third year, operating margin was EUR 166 million,
representing 6.7 per cent of revenue compared to 6.0 per cent in the first half of 2010.
The operating margin increased by +11 per cent in the first half of 2011. Revenue was EUR 2,476 million, representing -0.7 per cent. Net Income Group share stood at
EUR 100 million, up +66 per cent compared to the first half of 2010.
Thierry Breton, Chairman and CEO, said: “During the first half of 2011, as planned, we have been able to further improve the operating margin for the fifth semester in a row, while at the same time preparing the integration of SIS. The new Group, with its very large customer base, is ready to improve its competitiveness. Furthermore, the new AtoS is already fully operational to roll out the TOP² Program and to deliver synergies ahead of schedule, allowing us to increase the operating margin forecast for the full year.”

In EUR Million H1 2011 H1 2010 % growth
Revenue 2,476 2,494 -0.7%
Exchange rates impact 1.0
Revenue at constant exchange rates 2,476 2,495 -0.7%
Operating margin 166.2 150.1 10.7%
Exchange rates impact -0.5
Operating margin at constant exchange rates 166.2 149.6 11.0%

Performance by Service Line
In Managed Services, operating margin was EUR 63 million, stable compared to the
first half of 2010, and representing 6.9 per cent of revenue. This level of profitability was
maintained thanks to the industrialization of the activity through Global Delivery Lines.
Profitability in France, Spain and Other Countries improved. In Benelux, profitability
remained above 10 per cent.
Revenue was EUR 906 million, up +0.6 per cent compared to the first half of 2010. In
the UK, revenue grew +6.6 per cent as a result of new orders in the public sector, following
the end of the moratorium with the UK Cabinet Office. Revenue in Other Countries, mainly Asia and the Americas, grew +5.9 per cent while in France and Benelux it was down by
around -2 per cent.
In Systems Integration, operating margin was EUR 42 million, an improvement of
+130 basis points compared to the first half of 2010 and representing 4.8 per cent of
revenue. As planned, operating margin in Germany/CEMA and Spain returned to positive
compared to the first half of 2010, to represent respectively 3.5 and 0.6 per cent of
revenue. Profitability increased in France to 5.0 per cent of revenue and remained strong in
the UK at 8.0 per cent. The operating margin rate in the Benelux declined to 4.0 per cent,
where the economic environment continued to be tough with high price pressure.
In order to improve profitability in Systems Integration, the Group continued to apply strict
criteria for gross margin to new deals, especially in France and the UK. As a result,
revenue in Systems Integration declined by -2.6 per cent.
Revenue increased in Germany, led by the Telecom & Media market with new projects.
Revenue was down in CEMA, mainly due to the telecom market in South Africa.
In Spain revenue remained stable after the strong decline in 2010. In Benelux, revenue
decline was stabilized at -0.9 per cent.
In Hi-Tech Transactional Services (HTTS), the operating margin rate was 15.3 per
cent of revenue compared to 15.8 per cent in the first half of 2010. The Group continued
to invest in new countries for this Service Line such as the Netherlands, the UK, Spain and
Asia, in order to build the sales and delivery infrastructure to leverage the existing AtoS
customer base in these countries. The Service Line continued also to invest heavily in
project development.
Revenue reached EUR 524 million, up +3.3 per cent compared to the first half of 2010.
Growth came from payment services which posted +6.3 per cent growth and from e-
Services which grew +4.4 per cent. However, Financial Markets revenue reached EUR 45
million, down -18 per cent, still affected by delays due to software developments to
implement new offerings for the investment banks.
In Consulting, operating margin returned to positive at 2.8 per cent after a loss in the
first half of 2010. The improvement was led by France, which reported a double digit
operating margin rate, and by Spain where there was a return to almost break even.
Revenue reached EUR 91 million, a decline of -16.9 per cent compared to the first half
of 2010. Most of the decline came from the Netherlands where the new management
appointed at the beginning of this year continued to focus on operational efficiency, on new
offerings, and on workforce management to increase the utilization rate.
In Medical BPO, operating margin remained flat at EUR 8.6 million, representing more
than 10 per cent rate. Revenue slightly increased to EUR 81 million, due to higher volumes with its large customers.


Operating margin
Further to the integration plan launched during the first half which is ahead of schedule, the Group increases its full year guidance to 6.2 per cent operating margin rate.

Revenue
As planned, the business reviews with the new GBUs were completed in July.
The Group confirms the range of EUR 6.8 to 6.9 billion communicated in the contribution document issued on 8 June 2011, under the assumption that all transactional scope is transferred on 1st July 2011.
New entities such as China, Turkey, Russia and others were not transferred at the date of closing on 1st July and will be contributed not earlier than the fourth quarter, lowering 2011 revenue by circa EUR 50 million.
Therefore, considering the mid-point of the range, the Group targets a statutory revenue for 2011 around EUR 6.8 billion.

Free cash flow*
The Group confirms the guidance for the free cash flow representing an increase of 20% compared to the level reached by AtoS stand alone in 2010, leading to around EUR 170 million.