2009 objectives achieved
. Operating Margin: 5.7 per cent up by more than +80 basis points
. Group net debt reduced by EUR 165 million
. Revenue: EUR 5,127 million down organically -3.7 per cent
. Operating Margin is EUR 290 million representing an organic increase of +13 per cent;
. TOP Program contributes strongly to the improvement in the Operating Margin;
Net debt reduced to EUR 139 million compared to EUR 304 million in December 2008;
. Net Income Group share at EUR 32 million;
A. djusted net income Group share at EUR 196 million, up by +9 per cent;
. Total order entries are EUR 5,148 million, book to bill ratio is 100 per cent;
. Roll-out of Atos Worldline offerings in the major countries of the Group.
PARIS – 17 February 2010 -Atos Origin, a leading international IT services company, today announced the results for the full year ending 31 December 2009.

Convened on 16 February 2010 by Thierry Breton, Chairman and CEO of Atos Origin, the Board of Directors examined and approved the accounts of the Group for the year ending 31 December 2009.

Thierry Breton, Chairman and CEO of Atos Origin declared: “Despite a declining economy in 2009, the Group achieved its objectives. The operating margin increased by more than 80 basis points and the cash flow generation improved to reduce the net debt by 165 million euros. This performance is fully aligned with the mandate I received from the shareholders and the Board of Directors at the beginning of the year. I am proud of our clients’ trust in Atos Origin and the involvement and contribution throughout the year of all our employees. We have developed distinctive offerings and launched many new projects with the support of our Scientific Committee, and we have set up an organisation to address the technological challenges in the IT sector. The implementation of High Tech Transactional Services as a new Global Service Line to roll out the offerings of Atos Worldline into our major geographies is well underway and is one of our major achievements in 2009.
The transformation of the Group, in particular through its deep reorganisation and the TOP Program, allows us to pursue in 2010 according to our plan the improvement of the profitability and the reduction of the financial debt.”

Revenue
Revenue in 2009 reached EUR 5,127 million, down -3.7 per cent compared to revenue of EUR 5,324 million in 2008 at constant scope and exchange rates.

2008 proforma revenue excludes the changes in scope related to the disposals made in 2008: Italy, AEMS Exchange in the third quarter, Thailand, Mexico and Technical Automation in The Netherlands in the fourth quarter, representing a total of EUR 198 million. It also excludes the impact from exchange rates mainly due to the fall of the British pound compared to the Euro, representing a total of EUR 101 million.

Revenue by Service Line
Representing 38% of the Group, Managed Services revenue reached EUR 1,953 million up +4.4 per cent compared to 2008. This performance was led by the United Kingdom which grew organically +22 per cent. Increased focus on cross and up-selling in most geographies resulted in organic growth.

Representing 37% of the Group, Systems Integration revenue reached EUR 1,894 million, down -11.2 per cent organically mainly due to the decline in time & materials activities. During the fourth quarter of 2009, Systems Integration revenue declined -12.4 per cent compared to -10.7 per cent for the first nine months of the year. However, revenue in the fourth quarter grew sequentially by +11.7 per cent. Globally, the mix of Systems Integration revenue remains divided into three equal parts: Application Management, fixed price projects and Time & Materials.

Representing 17% of the Group, High Tech Transactional Services (HTTS) reported revenue of EUR 879 million up +3.5 per cent compared to 2008. Payments and e-services which represented 89 per cent of total HTTS revenue increased by +5 per cent. As expected, revenue in Financial Markets decreased to EUR 93 million down by -5 per cent. The Group is investing in new offerings in this business to allow a return to growth in 2011. In the meantime, the deployment of High Tech Transactional Services within Atos Worldline offerings in all the major geographies of Atos Origin has been engaged. The second half of 2009 has been dedicated to align the Group organisation in order to be fully operational at the beginning of 2010.

Representing 5% of the Group, Consulting revenue reached EUR 248 million down -23.7 per cent at same scope and exchange rates compared to 2008. Throughout the year, this activity faced tough market conditions, in particular due to delays or cancellations of projects from large customers. However, during the fourth quarter, Consulting grew sequentially by +14.1 per cent. In a year of economic slowdown, the Group redefined the portfolio offerings of Consulting to develop and reinforce synergies with the other Service Lines of Atos Origin.

Representing 3% of the Group, Medical BPO revenue was EUR 153 million, up +3.5 per cent at constant scope and exchange rates. This business is fully operated in the United Kingdom only with increasing volumes with all the major clients, particularly for occupational health services.

During 2009, recurring activities (Managed Services, HTTS, Medical BPO and Application Management) reached 71 per cent of total revenue compared to 68 per cent in 2008.

Revenue by Group Business Unit
Since announcing the first half results for 2009, and consistent with IFRS 8, the Group presents the segment information in line with operational management, i.e. by Group Business Unit (GBU) and by geographical area.

In 2009, revenue by GBU varied significantly:

The United Kingdom reported organic growth of +7.4 per cent thanks to the contribution of Managed Services;
Atos Worldline reported +3.7 per cent growth ; excluding Financial Markets this growth was above +5 per cent;
France resisted well with a slight decline of -3.0 per cent ; as well as the GBU Rest of the World at -4.0 per cent thanks to the growth in Asia;
Benelux reported a decline of -13.6 per cent affected throughout the year by the weight of cyclical activities: Consulting and Time & Materials;
Finally Germany Central Europe / EMA was down by -6.7 per cent and Iberia / South America by -10.1%; due mainly to the negative impact of cyclical activities.
Operating performance

Operating margin reached EUR 290 million, representing 5.7 per cent of revenue and up more than 80 basis points compared to 2008. At same scope and exchange rates, operating margin increased by +13 per cent.

Therefore, in a particularly difficult economic environment throughout 2009, and despite the effect from the Arcandor bankruptcy in Germany, the Group achieved its objective to increase the operating margin rate by 50 to 100 basis points.

This performance has been achieved thanks to the improvement of the operating margin:

In the United Kingdom in all business lines with a profitability at 9.1 per cent representing an increase of +180 basis points compared to 2008;
In France where the profitability improved by almost +180 basis points at 3.9 per cent essentially thanks to Systems Integration which reported a margin rate at 3.0 per cent compared to 0.6 per cent in 2008;
In the GBU for the Rest of the World where operating margin increased from 3.9 per cent to 6.5 per cent of revenue.
Atos Worldline achieved an operating margin of 15.8 per cent of revenue, an increase of +60 basis points compared to 2008. This performance was achieved thanks to additional volumes and the ramp-up of new contracts in France. Besides, the number of transactions for payments increased in Germany and in Belgium.

In Germany Central Europe, the Arcandor effect was EUR 14.4 million on the operating margin which was 3.8 per cent of revenue compared to 5.0 per cent in 2008.

Despite a strong decline of volumes in its cyclical activities combined with price pressure, Benelux has been able to improve its operating margin to 8.4 per cent compared to 8.2 per cent in 2008 thanks to the dynamics of its business line Managed Services. Spain, where there are more cyclical activities and strong price pressure, saw a decline of its operating margin by 140 basis points to 3.4 per cent.

Thanks to the TOP Program and as a result of the actions on central costs, Global Functions expenses (excluding the cost of Global Service Lines) decreased by -15 per cent to EUR 70 million in 2009.

Net income
The Net income Group share for the year was EUR 32 million after the main following non recurring items:

EUR 52 million for assets depreciation and restructuring further to the bankruptcy of the client Arcandor, particularly the liquidation of the mail order activity Primondo Quelle;
EUR 31 million impairment charge booked for goodwill depreciation as a result of the Arcandor effect on the business plan of the Cash Generation Unit Germany Central Europe;
EUR 154 million for restructuring and rationalisation charge within the Group transformation;
EUR 36 million for the remaining leases obligations of the six existing Paris’ sites which are being closed, as part of the project to regroup 4,500 staff at the new headquarters of the group in the city of Bezons near Paris. This charge is fully financed by the new landlord through a two-year rental exemption which will be spread on the duration of the new lease;
EUR 39 million for a provision release on pensions in The Netherlands as a result of the positive evolution of the Dutch pension asset portfolio.
The net financial result represented an expense of EUR 24 million, the tax charge was EUR 9 million representing a restated effective tax rate of 24.7 per cent compared to 23.6 per in 2008 and minority interests were EUR 4 million.

Therefore, net income Group share was EUR 32 million compared to EUR 23 million in 2008. The adjusted net income Group share amounted to EUR 196 million compared to EUR 181 million in 2008, representing an adjusted earning per share of EUR 2.85.

Net debt
At the end of December 2009, Group net debt was reduced to EUR 139 million against EUR 304 million as of 31 December 2008. The decrease of net debt realised through the cash generation of the operations was EUR 117 million. In addition, the Group booked as Equity EUR 48 million of portion of bonds convertible in Equity, further to the EUR 250 million issued on 29 October 2009.

As part of the TOP Program, the actions led by the Group allowed a reduction of the working capital and as a result, the DSO at the end of 2009 was 57 days, down by 6 days compared to the level reached at the end of 2008.

In the meantime, a strict control of capital expenditures at EUR 198 million resulted in their reduction by EUR 36 million compared to 2008 showing the first positive effects of the new policy implemented to rationalise assets procurement. Total capital expenditures represented 3.9 per cent of revenue.

In 2009, the program of reorganisation and rationalisation had a cash effect of EUR 135 million, better than the objective set by the Group at the beginning of the year.

Dividend
During its meeting held on 16 February 2010, the Board of Directors decided to propose at the next Ordinary Shareholders Meeting not to pay a dividend in 2010 on the 2009 accounts.

Commercial activity
Group order entries in 2009 totalled EUR 5,148 million in 2009, down -3 per cent organically compared to 2008.

The book to bill ratio reached 100 per cent as in 2008.

By service line, book to bill was (vs. 2008 at same scope):

93 per cent in Consulting (98 per cent in 2008);
96 per cent in Systems Integration (98 per cent in 2008);
105 per cent in Managed Services (113 per cent in 2008) and;
119 per cent for High Tech Transactional Services (90 per cent in 2008).
The main signatures of the fourth quarter were:

in France in Systems Integration with Renault, in Managed Services in the public sector and with one of the major banks;
in The Netherlands regarding Managed Services contracts with a pension fund, the energy and transports sectors, as well as several renewals in the public sector;
in the United Kingdom, in Managed Services with Brakes in manufacturing, in finance with Capita Life & Pensions; in the public sector with Skills Development Scotland and with UK Government Gateway in HTTS;
in Belgium with a European Institution in Systems Integration;
in Spain in the public sector and in Managed Services;
in the US for the renewal of the Lee County contract in Managed Services;
Atos Worldline for the contracts with la SNCF, GIP eBourgogne and Numéricable.
At 31 December 2009, full backlog was EUR 6.8 billion, representing 1.3 year of revenue. This amount includes the cancellation of almost EUR 400 million for Arcandor.

The full qualified pipeline as of 31 December 2009 was EUR 3 billion up +14 per cent compared to 2008, mainly thanks to HTTS and Medical BPO; Systems Integration showed a slight increase.

Human Resources
The Group implemented in 2009 a human resources policy which protected the renewal of critical skills despite the difficult market conditions. The recruitment efforts focussed on young recently graduated engineers in all the GBUs as well as in offshore countries, particularly in India. Therefore, recruitment for the year was 4,500 new engineers joining the Group in 2009. In France, the Group hired 800 new engineers in 2009.

The level of staff on the bench, mainly in Systems Integration, has been significantly reduced to 909 for the fourth quarter 2009, down by 40 per cent compared to the beginning of the year. As part of the TOP Program, this reduction in the number of staff on the bench came from targeted training actions aimed at adapting the skills to the specific needs of the market.

The Group has strongly reduced its number of subcontractors from 3,900 at the beginning of the year down to 2,400 at the end of December 2009, above the commitment of the Group taken at the beginning of the year.

In 2009, the Group conducted its program of reorganisation/rationalisation and restructured 2,950 staff, particularly in the Netherlands and in Spain, which were the countries the most affected by the drop of cyclical activities.

The reduction of the bench combined with the decrease of subcontractors and the optimization of staff skills contributed to the improvement of the operating margin despite the decline of cyclical activities.
At the end of 2009, the number of offshore staff reached 5,000 mainly in India but also in Morocco, Poland, Malaysia and Argentina. From now on, there are more than 8,000 engineers employed by the Group in the emerging countries.

The attrition rate continued to decrease and was 7.0 per cent in 2009 compared to 13.3 per cent in 2008.

Total number of employees at the end of 2009 was 49,036 down by more than 1,900 compared to the 50,975 reported at the end of December 2008.

TOP Program
During 2009, the roll-out of the TOP Program has continued through all its projects.

As far as the cost base is concerned, significant savings were performed with a full effect expected in 2010. This relates to the following nature of costs:

rent and lease (annual basis EUR 240 million) dropped by 15 per cent compared to the same period in 2008,
travelling costs (annual basis EUR 130 million) were down 16 per cent,
external expenses such as insurance, marketing and communication, fees… (annual basis EUR 110 million) have been reduced by 17 per cent.
The Group launched tenders which should convert into significant savings in 2010 on telecommunications costs, maintenance expenses and company cars.

In 2009, total indirect staff were reduced by -9 per cent and personnel indirect costs decreased by -7 per cent compared to 2008.

TOP Program also strongly contributed to the cash generation, in particular on the collection of trade receivables with a 50 per cent reduction on overdue.

As part of the TOP Program and in order to go beyond the actions already implemented, the Group launched a program of Lean Management. This project aims at improving operational management with actions of continued progress for each Group Service Line. At the end of 2009, around 3,000 managers of the Group had been trained in lean management techniques.

During the fourth quarter, five new projects within the TOP Program were launched, aiming at preparing the Group to the restart of the market.

In parallel in 2009, the company reinforced its actions on sustainability according to the commitment to comply with the most requiring international standards (Global Reporting Initiatives – GRI).

Finally, the Group has launched an ambitious program named “Well Being at Work” with the objective to be recognized as a Best-in-Class company regarding its working environment, and to anticipate new working organization models allowed by the most advanced Information Technology means.

The first initiatives of this program will be rolled out on the new campus of Atos Origin in Bezons near Paris.

2010 objectives
Priorities of the Group in 2010 will be again to maintain and reinforce staff skills, and to improve operating margin and cash generation as per its three-year plan.

Operating margin
As part of its 2009-2011 plan to improve its profitability, the Group confirms its ambition to increase its operating margin by +50 to +100 basis points in 2010.

Cash Flow
The Group has the objective to confirm the improvement achieved in 2009 by generating a net operational cash flow in the same range in 2010.

Revenue
Due to the Arcandor bankruptcy, the Group expects in 2010 a slight revenue organic decrease, however at a lesser extent than the one achieved in 2009.

The operational review with the complete financial statements section of the 2009 annual report in English will be available today on the Company’s website

Forthcoming announcements
14 April 2010 First quarter 2010 revenue
27 May 2010 Annual Shareholders Meeting
28 July 2010 First half 2010 results