Atos Origin Third quarter 2008 revenue Management Board Conference - PDF document

Atos Origin – Third quarter 2008 revenue Management Board Conference Call A T O S O R I G I N C O R P O R A T E P A R T I C I P A N T S Philippe Germond Atos Origin - Chairman & CEO Eric Guilhou Member of the Management Board Gilles Arditti Head of investors relations Michel-Alain Proch Atos Origin - Group CFO C O N F E R E N C E C A L L P A R T I C I P A N T S Elisabeth Buckley Anthonin Baudry Arete - Analyst HSBC - Analyst Brice Thébaud Laurent Daure Aurel Leven - Analyst Kepler - Analyst Grégory Ramirez Bryan Garnier - Analyst Chris McGinnis Merrill Lynch - Analyst Michaël Beucher Cheuvreux - Analyst Patrick Standaert Morgan Stanley - Analyst Gerardus Vos Citigroup – Analyst Gwénaël Giard Natixis - Analyst Dov Lévy CM-CIC - Analyst Brice Prunas Rajesh Bala Oddo - Analyst Crédit Suisse - Analyst Adam Shepherd Richard Nguyen Dresdner Kleinwort - analyst Société Générale - Analyst Michael Briest J-C Lermusiaux – Adam Wood UBS Analyst Exane BNP Paribas - Analyst Jonathan Crozier Stephen Kuppen West LB – analyst Goldman Sachs - Analyst

P R E S E N T A T I O N Operator Good morning ladies and gentlemen and welcome to the Atos Origin Q3 revenue conference call. At this time all participants are in listen-only mode until we conduct a question and answer session and instructions will be given at that time. I would like now to hand over to the Chairperson, Philippe Germond. Please begin your meeting and I will be standing by. Philippe Germond - Atos Origin - Chairman & CEO Yes good morning to all of you and thank you for joining us for the Q3 results call. With me we have Eric Guilhou, the other Management Board Member, Michel-Alain Proch, the CFO is here for the Group and Gilles Arditti the Investor Relation. You probably have with you the slides we put on our site this morning. So I will go, shortly, through all these slides and then we are going to be ready to answer any of your questions. I would like to start with slide number 4 , which gives you a summary of the Q3 achievements. So first the revenue organic growth in the quarter is on track with the full guidance of the year, so basically above +5%. The statutory Q3 2008 revenue including one month's of AEMS Exchange is at EUR1 353 million, with an organic growth at constant exchange rate of +5.5%. And if you exclude AEMS Exchange -- you know we closed the disposal of that joint venture with New York Stock Exchange in August. The new scope revenue excluding AEMS is at EUR 1,329 billion in Q3 with an organic growth of +5.3%, which means that year to date for the first nine months of the year we achieved an organic growth of +6.3%. The commercial activity remains strong. Year-to-date the order entry is at EUR 3.9 billion, up +10% compared to last year with a book to bill ratio of 95%, 5 points higher than where we were one year ago in September '07. Full backlog of EUR7.5 billion represents a 1.4 year of revenue. And the full backlog to be applied on 2009, and we will come back on a few comments regarding next year later, represents EUR2.5 billion. And if I do compare to the backlog we had at the same time last year in '07 to be applied in '08, that backlog today is 8% higher than last year. At the same time, on the one side we have an increasing backlog and on the other side we still have a pretty strong weighted pipeline at EUR 2.6 billion, a bit higher compared to last year. We continued to reduce the net debt, which is at EUR409 million at the end of September '08 compared to EUR490 million in September '07 and EUR 514 million just three months ago at the end of the first semester. As I said, we finalized the disposal of AEMS Exchange early August with a net cash effect for the Company of EUR142 million. In the same condition as we decided and we contracted in December '07, and at the same time we purchased from New York Stock Exchange Euronext the Clearing and Capital Market activities, which are now owned at 100% by Atos Origin. In term of governance, there is now a stability of the shareholding. You know the key shareholders of the Company. And I will come back later to the work we have done quite intensively with our Supervisory Board, with the Strategic Committee about the strategic orientations of the Group. On slide number 5 , you have as usual, as every quarter, a list of major deals we signed. Let me just make a few comments. First, the commercial momentum remained dynamic in all geographies. So in Europe we've a good performance in France in most of our main market, in the retail with Redcats, in the public sector, in utilities and in finance. In Netherlands we signed significant contracts with Achmea, the Ministry of Education. In Spain we had successes with Repsol, Banco Santander and also Telefonica. We signed two major contracts with Telefonica in the last two quarters, which is a major breakthrough of Atos Origin in Spain with this major telecom operator.