Atos SE (ATO) Earnings Call Transcript & Summary

Good morning, and welcome to this Atos Analyst Day focused on Tech Foundations. We thank you very much for being here today as we have got, sorry, some exciting updates to share with you. I'm Thomas Guillois. I'm the Head of IR for Atos. And I'm going to walk you through our agenda for today. So Nourdine and his management team are going to present on where we stand in our plan to refocus, recover and rebound. Then the go-to-market strategy. Then the business lines within Tech Foundations. The comprehensive plan -- transformation plan that's being executed. And lastly, our revised financial plan for 2026. We'll have 1 Q&A session after the presentations, and we will finish with a cocktail lunch that will be served downstairs at around 1:00 p.m. So we hope you enjoy this event, and I will now leave the floor to our group CEO and co-CEO, in charge of Tech Foundations, Mr. Nourdine Bihmane.

Hello. Ladies and gentlemen, dear friends in the room, good morning and welcome. Welcome to this day dedicated to Tech Foundation. Tech Foundation customers, Tech Foundation employees, Tech Foundation as well business and strategy and how do we see the future moving forward. And one thing for sure, I could share with you, the future is bright for Tech Foundation. I'm only delighted as well to bring here to the scene and show you how the entire 50,000 employees have been committed and have been empowering the entire organization to deliver those early results that I have been sharing with you. But maybe before going there, I need to give you a little bit of group update because all of that is in the context of the group, yes. Number one, the separation is well on track. We will be announcing pretty soon that the operational split will be done and the result that you see on both entities, Evidian and Tech Foundation, are confirming that we are addressing different markets, we are addressing different buyers, and we need to have a specific management system for each of them. Furthermore, we launched the Evidian commercial brand beginning of April, which is getting a lot of momentum. Second, as we mentioned in Q1, but as well as we sit now regarding Q2, we are really confident, sorry -- we are really confident in our full year guidance for 2023, top line and bottom line. And maybe last but not least, in the last 2 weeks, the U.S. Court of Appeal has vacated the EUR 570 million of TriZetto's judgment against us, which has reduced significantly the exposure of our shareholders. So now let's take a step back and talk about Tech Foundation. There are 4 messages, key messages that I want you to take and then the conclusion out of it: number one, compared to last year, we are redefining our addressable market by expanding our services in 2 main areas: the hybrid cloud and multi-cloud infrastructure, which last year, we presented to you like private only -- private cloud only, and expanding new services also in our technological services business line where we are going to add naturally the advisory and customer services. With that, we're able to expand the target addressable market, and now we are repositioning Tech Foundation in a growing market between 3% to 5% moving forward. Second, last year, in the refocus, recover, rebound plan, the first part of the refocus was to exit the nonstrategic revenue. That revenue which was creating margin issue, decline and cash issue. So here, we are continuing to operating that shift by reducing the noncore activity. So the pass-through hardware, software resales, the BPO business, but as well the red account. And in the transformation plan, I will go more deeper into it. But when you do that, we see that the core business, which is linked to our core activity, in fact, last year, has been growing 1.2%. And in the projection from now till the end of '24, we are projecting that core business to stabilize between 0 and 2%. And that was the good news, that everybody underestimated at that time that the core business of Tech Foundation has been stabilizing and is going to get back to grow slowly but surely. Number three, our main issue was the margin and then the cash. So we had to put in place an unprecedented plan in the Atos history to improve by EUR 1.2 billion our gross operating margin run rate. We started it. We did it with all the frontline leaders. It was a bottom-up plan, and we are well ahead in the execution of it, you will see later. And third, you have seen that quarter after quarter, now 3 quarters in a row, we have been beating the objective that have been put in place in the Capital Market Day last year. So with all of that, me with a leadership team, we believe we could upgrade our guidance, the guidance we shared with you last year for Tech Foundation. Last year, we told you it will be 5%. Today, we are coming in front of you to readjust it to 6% to 8% by '26. Last year, we said that the cash flow will be positive in '26. Now with more confidence, we are saying it will be 1 year earlier. And by '26, it will be EUR 250 million plus. And then in the overall cumulative cash flow, we believe today that we are above EUR 300 million better, higher than what we presented in the plan last year. So just to share with you, I'm super excited. The team is fully committed, and we believe we could deliver that plan like we have been delivering the previous one. So now I will deep dive in each category to give you a little bit more flavor on what are behind those key messages. So first, I said that we are expanding our addressable market. Last year in the CMD, we presented an addressable market of EUR 490 billion, which was declining minus 1. Obviously, when we get together with the team, it was clear that we needed to rotate our portfolio and go and grab more organic growth in our business and especially managed services, if you are not stabilizing the top line, or growing it at least a little bit, all your cost improvement action are diluted. So that was the urgency with the team. When we get the team together back in February '22, that was the first focus. To put in place the sales engine will -- is taking us between 12 to 18 months here, and we'll go a little bit more on that. However, we had 1 lever, which help us delivering what we deliver, which was the upselling and fertilization of our large contracts. So we mobilized all our account team, all our delivery folks to be able to go and sell to the customer all those change requests, but you do normally naturally on top of those large contracts. But now we needed to shift to more, and this is where we decided to launch a new offering. I will come to it, what content was new offering, and we name it digital business platform, and that Alexa is in the room and she will be able during the breakout session to give you more insight. But we also extended the core business, which was our infrastructure business, representing 40% of our revenue, now to be able to address the cloud continuum of our customer. We have more than 20 years of expertise and know-how in managing data centers, managing private cloud, but we had to extend it now to the new world to the hybrid world and not resistant like we have been doing over the years, extended to the hyperscaler world and extend it as well to the edge. And in between, there is the sovereignty market share to grasp. So what we are seeing here, shifting now to an addressable market, improving [indiscernible] shy grow, but going to grow between 3% to 5%, which is 40% higher than last year's Capital Market Day. Here, the main root cause of that portfolio shift was we were running so much for organic growth that we were grasping any kind of revenue including what I would call the bad revenue, which was not coming with the right profitability nor the cash. And we had to look deeply with the team into that entire revenue segment and define what is strategic, what is not strategic and what is the action moving forward, or what is the revenue moving forward that we will not go after. It took us some time, but we came to that list, and we decided now to exit that business. That's why in the last publication, I was talking about a managed decrease. We are not suffering that decrease, we are deciding it. We stopped some BPO contracts that have no synergy with the rest of the core business. We stopped all the pass-through hardware resell -- hardware, software resell, which was not bringing a lot of value in our books, nor for the customer. We are keeping the one where we deliver migration services and integration services, but not the rest. And then we have been starting addressing, as you will see, red account, where the Ts and Cs of a commercial agreement were not the right one. So based on that, what are we projecting is that nonstrategic revenue will be managed to decrease to 6% by 2026. And the core revenue, and this is where the underlying message is important, the core revenue, which will be the sum of a business line that we are going to present later on, is on a path to grow. It's a shy growth, but it's the right growth, and it's the growth we want and we need to make sure the EUR 1.2 billion plan contribute fully into our margin expansion. So that plan. Again, 2021, we were loss making. And we knew the root cause. Most of it was in Continental Europe. We never addressed during the decline of Atos over the last year. We never addressed the highly cost structure we had in some of the European country and to be specific, in Germany. So we had to do something to make sure that we don't carry on with that profitability issue. So we decided to put in place an unprecedented plan, but as well maybe the first time in the history of Atos such a headcount reduction. We announced 7,500 headcount reduction by 2026 for Tech Foundation, and I will give you an update on where we stand in it. But it was not only about headcount reduction. It needs to be a comprehensive plan addressing the entire scope of our business, including addressing the profitability of the contract, putting more discipline, more commercial rigor to make sure that the Ts and Cs and the margin generated by those contract contribute truly to the cash flow of the company. Third-party spend. SG&A, we'll go in more detail. But it's more than 300 initiatives. And it's not just managed by the top. We have involved more than 200 leaders, frontline leaders in our business, in our geography to drive those action on behalf of the entire team, and they are well ahead of their plan. So here, the result in '22. When we started because some of you have been raising the question how you have been able to stabilize so far. It's true that in '21, we suffered a minus -- almost minus 10% decline. And we had to address it, as I mentioned before. It's true that in front of us, we had also the potential announcement of the separation, and we didn't knew how our customers will react. So we have been conservative in the top line initially because the level of uncertainty in front of us was so large, but we didn't know that we will be able to recover so fast from the minus 10. However, with the mobilization of the team, with their commitment, but also with the customer, I've been speaking with a lot of CIOs and CEO, which were telling us, "Nourdine, we need Atos. We need Atos Tech Foundation. You're operating our infrastructure for many years. You have the know-how. You have institutional knowledge, You are the 1 who could help us addressing the next wave in front of us about that cloud continuum." And I have been overwhelmed by some of our testimony of customer. And the reality is during the year where we announced that separation, we increased our revenue retention. We increased our revenue retention, thanks to our team and thanks to our customer. So we have been able to stabilize the core business and even get it into that range between 0% to 2%. Operating margin. Here, we had to accelerate a little bit of the plan. It's true for Continental Europe with Paul and Diane and the team, we have to go through our employee representative to get their opinion before we started executing the headcount reduction plan. However, in countries like U.S. and U.K., we started already in H2, and we accelerated the execution of the plan in H2, which helped us on top of starting -- terminating some underperforming contracts, which helped us getting back to positive 3 years earlier than the initial plan, and that was important for us. And that was important for the proud as well of the employee. It helped us a lot in the engagement on the ground level with all the 52,000 employees to show them that now we are back to positive and this is only the first step. So now if I take a step back. With all of that, we decided to come in front of you today and to tell you that based on the fact that we are almost 2 years ahead in the stabilizing the core business, we think we could generate between 100 to 300 -- basis points higher of operating margin. That's why we adjusted our range. We think as well that we have been reducing the envelope of restructuring. You will see later on that we reduced it by almost 10% because based on the current trend, we do believe that we could use less cash to transform and even raise our guidance, yes. So where we want to be in '26? Obviously, back to growth because we have been neutralizing the impact of the nonstrategic revenue. The range of 6% to 8% that the team is pretty ambitious, and I know they will deliver, they will deliver on their words. And then in terms of cash position is obviously cash positive. But having a nice cash at least in the beginning of '26 of EUR 250 million plus. That's what really we wanted to share with you. We are excited about it. And by the way, when there is interest, there is value or when there is value, there is interest. So yes, it's true. We have received mark of interest, and the Chairman and the Board are looking at them. And I'm glad that we finally generated the interest different from last year. So now I want to come back on that plan, refocus, recover, rebound, and share with you a little bit how do we see the evolution of our portfolio. But maybe just before, a quick introduction on who we are? Because I know a lot of you were confused in us thinking, oh, Tech Foundations is only data center, and it's totally wrong. So we have EUR 5.4 billion revenue unit with 52,000 employees across 69 countries. But maybe the thing which I'm the most proud of it after spending almost half of my life in Atos is the relationship we have with our customers. We have more than 1,200 customers. And half of them, we have been in a continuous commercial relationship for more than 10 years. That means we have been relevant for them during all their digital transformation over the last 10 years. I will go deeper on the portfolio. But you see it, but you could look already visually that the hybrid cloud and infrastructure is less than half of the business. And I think that's somehow the perception missed last year, that more than half of the business is positioned on growth segment and is growing, and I will get into detail. Staying on the ID split. Revenue by region, we're not going to hide it. We have a strong European foothold, more than 66%. And by the way, that footprint help us in our hybrid cloud strategy. Why? Because we have seen that the migration to public cloud are behaving differently in the U.S. versus Europe. And second, we have seen that the raise of sovereignty is much more, I will say, visible and transformed into a contract in Europe versus the rest of the world, which really gives us definitely with the footprint of data center, we have a fantastic competitive advantage into those new market opportunity. Then when you look on the right side, in terms of industry vertical, we are pretty balanced. You will see here, but more important, we are well positioned on those highly data-sensitive industry, which also generate that need of sovereignty. On portfolio strategy. So here, when we look at our market and we look what are the mega trends that are disrupting us, 4: the first one is a pretty -- this one, you know it. This is the hybrid way of working. And this one has been accelerating post COVID. People, more than 75% of the employees want to stay at home. So we keep that hybridization of the work between home office -- offices. But what we see is the level of services those home office needs has transformed and has reduced, but has moved to a higher value chain that Leon and the team will describe to you. And here, it's a fantastic link to the digital workplace practice that we are pushing and investing on. Second, which is this one is pretty visible, is the disruption of hybrid and multi-cloud, which is almost, I think, more than half of the companies have between 2 and 3 hyperscalers multi-cloud. More than 75% of the data is now produced at the edge and something that is a new opportunity for us. We have started that revenue. It is still shy, but it is ramping up. As today, we are managing data centers. We are managing workload on the public clouds for our customer, and we are getting more and more as an RFP to manage the edge services for our customer. Think about smart retail shop, think about smart hospital, all that distributed compute and that integration, but level of complexity for our customers, they are asking us as their IT partner, as their managed services provider, to be able to embrace and take out the complexity of that management for them. I mentioned already sovereignty with cybersecurity. More than 70% of the companies last year have received or have been victim of 1 of the malware attacks. So here, the raise of cybersecurity will continue being important. And here, our strategic alliance and partnership with Evidian will be key on how we are going to deliver those services to our customer. Maybe last but not least, we have an unprecedented disruptive wave in front of us with gen AI, which is becoming the top priority for our CIOs and our CXOs that we are fully integrating and embracing into our portfolio strategy moving forward. So now the 4 business lines of Tech Foundation. I'm starting from the bottom. So Hybrid Cloud and Infrastructure, EUR 2.1 billion, 40% of that revenue. And here, you have all the managed services for everything inside the data center. Sometimes we -- it goes silent. But network services that are becoming more and more critical to integrate all those workloads across the cloud continuum are hosted into that HCI business line. The mainframe services are also into the HCI business line, and Laurent will give you more flavor about it later on. Digital Workplace, EUR 1.2 billion, 21% of our revenue. So here, we have been the leader for more than 7 years now in some of the [ magic quadrants to not ] name them. And we have been keeping and staying ahead of the market, outgrowing the market. And here, we are going to continue accelerating, investing into digital workplace. And by the way, I'm pleased today to announce that we just got, I think so, Mark Nouris, our Head of BTN. We just got a fantastic renewal and extension of a digital workplace contract with the European Union for more than EUR 100 million. So congratulations, Mark. Then Digital Business Platform. Digital Business Platform. This is the new incubator that we are managing with Alexa and the team, where here, what we decided to do is tech those few solutions that have been platformized, like the use cases we have in the sport industry or the use cases we have in the digital ID. Those use cases, we have been putting them here, and we are ramping up new use cases as we progress. But not only as sustainability is also close to my heart and especially how digital could enable decarbonization. We are also relaunching our practice around decarbonization services inside the Digital Business Platform. And last but not least, on top of our 2 main offerings, we have that extended capacity for our customer that we call technological services. But now we are extending with advisory services as well. This is really a fast-growing business line. It's also a highly profitable business line, which is helping us in the mix of Tech Foundation. And now if we move to the right side, all of that needs to work together, especially when you look at the complexity of what our customers are facing in terms of security, data protection, but as well just management and just visibility, management of cost. Here, we are developing with our [indiscernible], who's in the room. We are developing that technology -- TF orchestration and management platform to be able to bring together those services for our customers. So all of that is repositioning us into a new addressable market. We mentioned -- I mentioned it just before. We are moving now to that segment, which is growing between 3% to 5%. And you will see here why. So Digital Business Platform compared to last year, this is new. Last year, we were not going after that market. The technological services, we have extended that now with the advisory services. And Stephane will tell you how he's putting in place that consulting part necessary to it. And then on the HCI block, we added now finally the hybrid and multi-cloud infrastructure and some announcement that we made, including with AWS, are accelerating the adoption of that remark for all of us. So really excited now that we are back into a growing market or growing addressable market that the entire team could go after. I'm using that cloud continuum, and we thought we needed to put a visual to understand it. So Atos, for many, many years have been managing inside the data centers and have been developing expertise, know-how and how we manage the entire infrastructure on behalf of our customers. But one thing we did not do well is when the hyperscaler comes, we have been resisting. Resisting to them because we were seeing revenue leakage, margin leakage. So we try some partnership before, but without really adopting it fully. So what I wanted and what we wanted with the team is we identified a volume of workloads that we are managing, which was going to the public cloud or several public clouds. And we decided with Laurent and the team instead of playing defense, to play offense. So we went in front of our customer, and we told them in front of our hyperscaler -- sorry, and we told them this -- that book of business that is going to move to a public cloud. You could do it with us. And then you could secure the level of revenue transformation for you or you could do it without us, and then we'll see. And some of the hyperscalers have been reacting. We have been working with them. And thanks to that, we signed that CloudCatalyst contract, which help us now being the preferred outsourcer for AWS and then becoming our preferred public cloud partner. But Tanuja will come on that point just after. But the point of the cloud continuum was really now to extend our managed services and to be able to embrace the entire diversity of the IT footprint of our customer, and that's what Laurent will explain just after. So maybe Tanuja. That's how we started, in fact, almost 1 year ago when we started working with Laurent on how we could materialize a stronger partnership with the hyperscaler and not just being victim of the move to the cloud. And here, the work has been immense with the team. Because in 9 months, we came to a contract. And I feel it was a much more balanced contract. Because my issue when workloads go to the cloud, I'm getting data center sub-utilized, and I'm getting people not really scaled for the next wave. So what we tackled heads on [indiscernible] look, we help you migrate in some of the workload to your platform, in exchange you leverage our infrastructure to make sure that we don't stay with the underutilized assets. And on top of that, you commit to train with us more than 20,000 employees certification for Atos. And that has started pretty well. We name it now CloudCatalyst. And I think Tanuja will be best to say some few words about it.

I'm Tanuja Randery. I'm VP and Managing Director of AWS across Europe, Middle East and Africa. I'm really excited about the future of this 10-year Atos-AWS alliance and the opportunity we have ahead with Atos CloudCatalyst. Together, and I was very lucky to be involved in this process. We signed an industry first 5-year strategic transformation agreement between Atos and AWS in November '22. And that was announced at re:Invent. We had Nourdine on stage along with Ruba Borno on our side, announcing that partnership. This saw us committing to migrating more than 800 existing managed infrastructure services customer workloads to AWS and at the same time, address the issue of digital skills by upscaling 6,000 of the Atos workforce onto AWS. Together, Atos and AWS, we are really turning the ITO, information technology outsourcing model on its head with this strategic partnership. Through the market-leading technology that Atos has to offer and we have to offer and our deep understanding of legacy infrastructure, working backwards from our customer needs, we have the experience needed to really derisk cloud migration and modernization. And may I say accelerate migrations as customers really seek to move from on-premise to cloud environments, both to take advantage of the cost efficiency that drives, but also to really leverage the power of the cloud in terms of innovation and driving growth and of course, addressing key sustainability challenges. Atos is already proactively consulting with its managed infrastructure services customers, spanning the globe and offering hybrid cloud service portfolios. Now alongside us, we can really accelerate leveraging CloudCatalyst by providing technical and commercial advisory services, which our customers require because they don't always have the expertise bringing digital engineering expertise and, of course, all deep cloud expertise and AI and ML expertise to these customers to help them understand the migration journey, the benefits from moving from on-premise data center services to cloud models. But of course, our partnership goes further. Together, we are building value propositions beyond the migration of IT outsourcing contracts under the umbrella of the Atos CloudCatalyst brand. including and importantly, mainframe modernization, control cloud and Compliance as a Service and of course, generative AI. Through this collaboration, Atos customers will be able to realize the benefits of moving to the cloud, including reducing our operating costs, carbon emissions as well as really adding agility and scalability and accelerated innovation. We're looking forward to this next chapter of the alliance with Atos and accelerating customer value together. Thank you so much for having me here today.

So now taking a step back and looking at the Digital Business Platform, that new market segment that we are going after. Two main areas: the key vertical solution. So to the opposite of the previous program that some of you heard about spring, we are not trying to be everything for everybody. So here, we are targeting concrete use cases, concrete platform that we already have, already developed and we are able to replicate. Maybe the most important one is the one we have been developing for many years and improving is the one for the Olympics and Paralympics, where we have been delivering services of broadcasting accreditation to the entire Olympics game. And thanks to that platform, we have been able to bring it in front of UEFA, the Soccer League, the European Soccer League, and you will get more news about it later on with claim. And we have been able to replicate that business case with other customers. So here, we are going to continue investing on those use cases, which are already specialized and are generating the right level of profitability and value created for our customers. But not only we are also pretty strong with the digital ID, with Citizen ID, in fact. We have been developing in U.K., in France, citizen ID solution. And now we are exporting them to a country like Morocco, the Kingdom of Morocco, with Berenice, where here, we are digitalizing all the Moroccan citizenship. I think we are in the rollout. We are almost at 10 million, and the rest is coming. We are doing that also. We announced it a few weeks ago. We won it in Togo, and we are going to do it for the entire Republic of Togo. So again, we're going here just to focus on some use cases, which are platforms that we're able to replicate day in, day out with our customer. And then the other part is sustainability. Sustainability. Why? Because digital is a cost in terms of CO2 emissions. So we have to contain our emission in our services. And here, Atos has been really advancing in the pack. We have been the one -- the first one launching in the industry what we call the DLA, decarbonization level agreement, which next to our SLA in our large contract, we are committing in reducing our carbon emission from the beginning to the end. But not only we are also improving our footprint and now bringing that expertise over the last years that we developed in managing carbon emission, especially Scope 1 and Scope 2. Now bringing it to our customers and bringing it through a different level. There is a platform topic, my CO2 compass. Laurent will mention about it. But not only -- we're not only helping the customer to monitor their carbon emission, but also to optimize it, thanks to digital solution. So those 2 main legs of the Digital Business Platform will be the one helping us and giving us the right to go and win into that new market for us. But now the commercial momentum, I will say today, has stabilized. You have seen quarter after quarter, we have been improving versus previous years, and we continue improving even in Q2 this year. However, we are not yet there yet. And I will not stop and the team knows that. I think I saw Julien. I will not stop until we get to the 100%. Clay has been appointed as the new Chief Growth Officer. And under Clay, we decided not to accelerate our transformation and streamline our processes. So he will deep dive on what we are launching from a sales perspective to accelerate that recovery of the book-to-bill. But again, I don't want to give you a book-to-bill to give you a book-to-bill. In the past, we signed bad deal. So we will still stay vigilant and have high selectivity on what we want to book, what we cannot book. It's really important because at the end of the day, I could give you 100% book-to-bill. But if the level of project margin is not the right one, we are back to square 0. And here, Clay will explain you how we are putting in place the right discipline, the right control to avoid falling into that trap again. So it's improving, but more to do. Now we talked about that disruptive mega trend, gen AI, which is coming. It's already there. In fact, it's already there. And we see 2 worlds where gen AI is impacting us. Obviously, internally in our processes, how could we optimize and what is happening? And what we see there is process like proposal writing. The team today is spending for an average deal of, let's say, EUR 50 million TCV, is spending around 400 [indiscernible], all kind of [indiscernible] in the group to create that. We saw by feeding the gen AI platform with the last 5-year proposal churning them, we have been able to reduce that average time to 60 to 70 [indiscernible]. That's an impact directly in the way we are processing our proposal to our customer. Another area will be procurement. Procurement will need much more intelligence on our spend, but also the area of [indiscernible] generation, the PO generation. So here, the team are launching the pilot as well there. Super function, if I think about the marketing. The marketing intelligence, gen AI will be a fantastic enabler to our marketing team to accelerate the output and the time to information. So that's on the internal side. But on the external side, we see gen AI is impacting our portfolio. Leon, Laurent, we'll come back on that, how they're integrating gen AI in the portfolio of the [ BL ]. And you will see, for example, in Digital Workplace, think about our agent or our technician having a copilot, which is connected, which is much more complex to way of the environment. Is it an infrastructure environment? Or is it an end user environment having a copilot connected to the right data source internally and externally could accelerate the time and the time for resolution and the time and the satisfactions. So gen AI is already in place. We call that internally the mushrooms, the way we are dealing with it. However, all those mushrooms that we are monitoring and developing are being controlled under the right guidelines at [indiscernible] have launched the right gen AI guidelines across the group to make sure that all of that is done with the right level of safety and consciousness. In the kit, why gen AI will, in fact, help us, even in that segment, even in that trajectory, which I did not fully translated the impact yet into it. We see most mega trends in gen AI, a vertical integration, more and more domain-specific solution, gen AI-based, which are increasing the level of resources in public cloud. But also, we see the proprietary data set as a differentiator. More and more, gen AI will be more relevant with the right data set behind it, which will generate still more demand for storage, infrastructure and managed services. So all of that is contributing, but gen AI is contributing to what we are doing at the core of Atos and what we are doing at the core of Tech Foundation. And we see even 1 step further, looking at our portfolio. Today, we are talking about gen AI prompt to human. But everybody is working on the gen AI project, and we will need to start federating those machine-to-machine interaction for those gen AI to gen AI interaction. And we believe here is a business model to be found and to position Tech Foundations into it. So more to come. And then enhancing the delivery. I mentioned it, but the reality is we will see a pyramid shift happening. And I'm saying that to the team. I think the first wave of gen AI, we almost totally swapped all the junior analysts in our pyramid, whatever functions. And here, we need to integrate it, understand it and put it in our plan. And that's what the team are doing. I gave them the target by the end of the year to come back each of them with the assessment of the true impact of gen AI internally and in other portfolio. And now finishing with maybe talent. Just wanted to say this is not just a 1-man show. Obviously, this is a team behind it. You have some of them in the room. It's a diverse team. It's an international team, which is around me, and we have been working in that industry for many, many years. You will see new blood coming in as well because we will continue progressing, evolving as a team. But I just would like to take that moment to thank them, thank them for their commitment, thank them for their belief in the story of the recovery of Tech Foundation, and we will do even more moving forward. On the talent strategy, you remember last year, we were talking mostly about offshore generalization. Atos is behind in offshore. Tech Foundation is behind in offshore. So whatever we are coming in front of us, we will have to tackle offshore. So we are doubling. We are targeting to double our footprint in offshore in the next 3 years, yes. And we are on track of doing it. So that will happen. And that's, I would say, the traditional lever. But as we mentioned before, gen AI will impact that talent strategy. If we think about the pyramid and the impact into our pyramid, we'll have to adjust our resourcing plan, our workforce management and bring more people with gen AI skill, but as well developing those new skills. We will streamline the support functions. I mentioned it. The rough estimate here we are thinking about is almost 6,000 roles will be impacted by '26 by gen AI into Tech Foundation, okay? And then because the talent part is still there, we are opening more and more new platform to aggregate more talent around Tech Foundation. And you will see in the people strategy how we are addressing that. Last but not least, we have been leading the market and the industry in our commitment to ESG. Moving forward, Tech Foundation will continue with a really strong commitment in reducing our CO2 emission. I cannot give you a target here today. We are not formally split. But I could give you the commitment, the personal commitment that we are going to continue leading the back here, and we have been doing it. On social, there is something coming back from the entire employees, but also for the entire management, that tech for good will be driving us. So you will see more commitment to non-global profit, including inclusion, accessibility and diversity. We have still a lot of work as well to do on that part. And obviously, the governance moving forward as we split. So based on that, I just wanted to share with you a high-level view of the path, the output. And I think we will go with Clay explaining and presenting you how we are restructuring our entire go-to-market. And then after that, the business line. Clay?

Hello, everyone. Good morning. I'm Clay Van Doren, and I've got the best job in the company. So my job is focused on with the team, driving -- creating a sustainable, self-generating commercial platform that's going to drive the engine around rebound. Having spent the last 6 years running regional P&Ls, I have the background that what we need to do and where we need to take it. In each case, whether it was in Northern Europe or the U.K. or in Central Europe, we had a revenue problem, right? We also had a profit challenge. So we had to make sure we went and delivered profitable revenue. And so we came up with a plan. And what I'm going to talk you through is how we've now extended that plan to make it a global plan for all of Tech Foundation. So I'm clear that there's 3 core elements to the job, right? We have to delight our customers such that they re-sign with us and they buy more business with us, and we'll talk through that. We also need to win more large deals. We've already made some progress on that, and we'll go through that, but we still need to step it up another level to drive the commercial activity we need. And then we need to create the sales vehicles to support the new offerings. Many of those will be sold differently than what we do today, and so we have to be ready for that. So why am I excited? First of all, we've got a tailored, more focused portfolio. So gone are the years of trying to sell 20, 30 things through 1 sales channel, right? We've got 3, 4, 5 key offerings that we can go and drive the business on. Second of all, we've simplified our sales process and put it all in 1 domain aligned against the business outcomes we're trying to achieve, and I'll walk you through that. We're also investing in it, right? So we're refreshing the team, we're refreshing the process, all to go make it happen. And then finally, we have a great customer base and referenceability to build on. Our customers like us. They want to buy business from us. As we've gone around and we've talked about separation, there's only 2 customers that have really asked for something in return for the separation, and that's just a really positive sign about the relationships that Atos and Evidian have with their customers. Okay. So last year, and as part of a rebound, we identified we're going to do 5 things, right? So the first thing is we're going to drive revenue retention, and we've made significant progress. So our retention rate has increased from 81% to 91% in the last 12 months. We've said we're going to have to add on revenues, and we've delivered more than EUR 600 million of add-on revenues over those last 12-month period. We said we're going to have to win more large deals. We're going to have to originate more large deals but win them. And we're up 2x the number that we were in the prior period, and you'll see we've got an enriched pipeline, so we should do even better going forward. We have to scale our alliances. We are behind the competition in terms of the use of alliances and partners to go drive additional profitable business. And we talked a little bit about AWS, but we got more than EUR 750 million of what I call attached pipeline with partners, with customers. And then finally, we need to go and drive new offerings. We've already closed more than 11 new customers in the new offerings, including UEFA. But interestingly, if you look across those customers, that they're all buying something slightly different, but all tied to the new offerings, and we have more than EUR 500 million of pipeline associated with those new offerings. We see those 5 tenets as still remaining relevant. Those are the 5 tenets we have going forward, and we've made progress on them in this year. How does that translate into our numbers? And you've seen some of this with Nourdine earlier. So we are seeing an improvement on book-to-bill. It's not the only measure, but we are seeing an improvement on book-to-bill quarter-on-quarter, right, adjusted for the seasonality that we face. We have stabilized the revenue earlier, but probably most importantly, the pipeline. So in 2021, we had a pipeline that really wasn't appropriate for the business, and we did a pretty big cleanup. Since then, we've gone and we've drived and looked at new opportunities that are available to us, and we've increased our new logo, a large deal pipeline by almost 2.5x. If I were to look forward, our #1 thing that we really got to track is this pipeline. This pipeline allows us to pick the better deals, right, that are more suited to us with the higher profits that leverage our industrialized offerings so we deliver for the customer right first time. This pipeline is really central to what we need to do going forward. Okay. There are 6 things that we need to deliver to deliver those 5 things. And I'm not going to talk through them in great detail here because I'm going to go through them one by one, but just to highlight them. We've created a sales organization, as Nourdine highlighted. But what you'll see is each element of the sales organization is responsible for 1 core element of those tenants. No longer are we in a position where the allocation of the responsibility is across 30 people. Second thing is we've invested in business development, and we'll talk about that, also engaging with advisers, and we've invested also in our large deals team. We've taken a holistic approach against our top 100 accounts. So we've gone against all those accounts, and we'll show you what we've done against them specifically to be able to drive greater satisfaction with the customers while we drive additional profitable margin and revenue. We've taken a proactive stance on our customers. So we've looked at the top 100, and we've identified 10 in particular where there's something disruptive that's happening in the marketplace, and we've taken a very proactive plan against those 10, and we'll walk through an example of that. And then we've already heard about scaling the alliances with the hyperscalers, but also with more of our traditional providers like Dell, but also some of our next-gen providers like Nexthink, in terms of generating some more pipeline that has real value for us. And then it doesn't -- one size doesn't fit all. Our geographies are different. We have different customer bases and different referenceability inside each of those customer bases and different opportunities, and so we've had to tailor our strategy against that. Okay, starting with the office and the setup, and I'll spend a bit more time on this because it's probably one of the most important things. So we've created a geo sales organization that focuses on deals less than EUR 30 million. This organization runs the process with the regional leads, so with the likes of Berenice and [indiscernible] and others that are in the room. And we design things to have local proximity. But specifically inside that, the sales agents and the account executives, they're no longer responsible for large deal generation. They're no longer responsible for creating their own propositions. What they're responsible for is satisfying the customer and each of them delivering EUR 10 million more of profitable revenue every year. So really focused on that and the cash and margin that goes with it. To support them in that, we've taken a little bit of our large deal focus, and we've created deal pods in each region with an engagement director and a bid manager, and they roll deal to deal to deal so that they are familiar with each other as well as with the market. So this is how we're going to drive our cross-sell, upsell, and this is also how we're going to drive some of the retention activities. Then we've taken our large deals, and we've separated it. So -- but there's 2 core elements to it: there's origination, and then there's execution. What's different here is we turned around and made some investments. So we've added 40 people on the large deals team, and we've added 50 large deal solution architects. But specifically, these individuals are no longer paid on -- primarily on basically a 7-year deal, which was our averaged year. So what we're now focusing them on is they're paid on what happens on the deal in the first 2 to 3 years, looking at cash and margin to make sure that they're focused on what's driving right business for Atos as well as right business for the customers. So that's a pretty fundamental shift on how they're focused and what they're paid on. Then we've looked at it and said the alliances and partnerships are a bit different, right? It's a key source of origination and customer satisfaction. So we put this under one of our most experienced sales individual, Patrick Adiba. We've got 30 individuals that are just focused on alliances and partnerships and how do we create business with them. And we'll go through more of how that happens. But you can already see that we've generated more than EUR 750 million of pipeline from a ground still, right, over the last 12 months. Also core to this is our relationship with Evidian. So Evidian is an absolutely strategic partner for us all the way through our deliveries. And we also run this through the same channel to make sure that we get the best out of Evidian as we go to market with our customers. And finally, we've looked at new offerings, and we realize some of the things, including partnerships with Evidian, like full stack development, like ESG, but also in terms of cyber that we -- that our sales process as we had it wasn't going to work. So we've created pods and teams that specifically focus on that, and we rotate them from opportunity to opportunity but the teams are a composition. So their composition of third-party providers, their composition of Evidian and their composition of Atos experts, but we roll them in when the opportunity presents itself so that we can get that additional sell and generate the pipeline. Now going through each one in step. So if you look at large business development, you can see we have made progress on origination. And again, origination is so central to us because it allows us to be more selective in the deals that we pursue, right? But we made an investment and we did a bunch of work around territory planning with all of our leads in the geographies, and that's generated a nice pipeline. However, we're missing a trick. So we need to do better with the advisers. And so we've already turned around with the likes of -- with ISG, Gartner and so forth, we double our pipeline that they're leading, right, in terms of a selection process. We've also made an investment in business developers. And I think as far as I know, it's the first global infra business development team, and we've added 30 people in there and their job is to find qualified deals as well. Their job is not to execute those large deals. We hand that to another part of Julien's team, Julien in the room, who do the execution. In terms of execution, now that we have that pipeline, we've got to go deliver on the pipeline. We've made a big investment and refresh in terms of our large deal teams, but we've also tried to standardize the teams. So we have the teams now that are encapsulated with a large deal executive with a solution architect and with a bid manager and that same 3 individuals, roll deal to deal to deal to deal because they now are familiar with each other, why would we reassemble them each time like we used to. But we've also made a big investment in the business line solution architects because we need them at the very early stages to qualify the deal. If I were to look back and look back 12 months, probably 1 of the challenges we had with our win rate, but also with the quality that we were pulling through was because we were involving the business lines too late in the process. And therefore, we weren't designing the deal in the most optimal way for our delivery vehicle, which in turn would be the most optimal way for our customer. I talked about the incentives. Again, because we're driving win rate here, we're really paying out on the first 3 years of each deal to make sure we're delivering the right cash and margin and revenue, but also the right results for the customer. In terms of our cross-sell, upsell, so this is our add-on revenues. The opportunity is rich, right? If you look at it, more than 75% of our top 100 customers only buy 25% of their IT spend through us and 19% of them only buy 1 solution. So we have all sorts of cross-sell, upsell opportunities for us inside those customers, okay? So it's great. We have an opportunity. But what are we going to do with that opportunity? So we've taken a very systematic approach. For me, sales is delivery, right? And so we're setting ourselves up to deliver this. So we've gone through those top 100 customers and said, what are their business challenges, one by one? Right? Systemically across the estate, focusing on their customers' customer. And that generated a list of opportunities. Independent of that, we've taken all of our offerings, and then we then mapped it on top of that. And so you'll find some nice hotspots of opportunities where we have something that very much well represents what they're interested in. And then there's other areas where you got a dark blue where there's an opportunity for us to either bring someone in or we just decide guess what, this opportunity isn't suitable for us. And then on the back of that, we brought in some third-party databases and integrated that using AI to also overlay another set of opportunities. That has created a heat map by customer for the top 100 customers, and we're now pursuing that with the sales organization, the geo sales one by one to go and pursue those opportunities. And that will generate some additional pipeline and some additional wins, particularly in the add-on business. As I said before, the incentives have changed now. These individuals are really focused on revenue and margin in the first 2 years versus focusing on the out-year revenue margin. One approach, just to bring this to life, and it really embodies Atos in my mind, is a global utility company where we provide digital workplace services, that global -- inside the global utility, we were very well thought of to begin with. However, some of the services that were around us weren't working optimally. So even though our CSAT was good and even though we were hitting all our SLAs, we went back to the customer and said, what else can we do? We think here are some things we can do to help you on the edges. They embody that. Our CSAT went up to 95%. We then started talking to them about their business challenges, no longer IT challenges. So things like remote substation activity, unmanned lines, proactive interference and problems on their cabling. And we went through that one by one. We brought in some of our industry experts, also brought some in from the outside. And on the back of that, that generated a whole set of opportunities, mostly in the advisory and the professional services, but did include things around AI, such as being able to do remote monitoring, be able to do hydrogen simulation for geographies. And they thought of us in a completely different light, right? So no longer where we this, we're now this, right? And as a result, you can see what's happened to our revenue stream, and the customer would tell you the value creation is even more -- has grown even stronger than the revenue stream. One example of the new business offerings we talked about, building on the work that we've done with low COG and other entertainment environments is the new deal that we recently did with UEFA, which I think also sets the precedent for all other entertainment environments. So it's something where there is a bit of a closed ecosystem. There are special things that you do around certification. There are special things you do about broadcasting. And we've done this in smaller scale with a number of broadcasters. But we now see this as a major opportunity that we can take forward with the likes of UEFA, but also there are other customers that are in the entertainment industry that is equally applicable. So we thought rather than for me to talk through this opportunity and what's actually happened, it would be great to hear from the customer.

UEFA has been looking for a strong technological partner, able to sponsor EFS, flagship national team competitions, while bringing a solid expertise in the technology field. That is why we recently signed an 8-year partnership that will help our organization overcome some of our technological challenges. Our organization is, as you know, one of the main actors of the sport and event organization world with thousands of matches per year and hundreds of events around Europe. To support this delivery, our ICT department is structured to operate and deliver technological solutions to our main client. This one being the football family, our funds and the organization itself. Objective of this change is to reduce operational costs, improve efficiency, but also to increase access to specialized IT skills and expertise, grow innovation, but also accelerate our transformation. We are the premise of this incredible adventure, where we started to build a joint team together with Atos in order that they can perform a discovery of each of the services that are in their scope. Some key events are coming up. Euro 2024, not to mention it, where Atos is starting the delivery of important milestones. This goes from accreditation solutions to guest management platforms and some data-driven initiatives, where the expertise of our Atos colleagues will definitely help us bring high-end products to our clients. Thank you, and have a nice day.

So you can hear in that particular circumstance, even the connection with what's going on in Morocco and Togo, right, the digital identity rolling, right, as a new proposition from location to location. Shifting again a bit. So looking at retention. So I talked about how we took the top 100 accounts, and we look for disruption. So not necessarily disruption for Atos, but actually disruption for the customer. And then we went through and [ sat ] against those top 100 accounts, are there 10 or so customers where we could do something different. And what we found in those customers was there was a disruption or there was an issue, most often, it wasn't directly associated with Atos, but we tried to step in. And this example with the logistics customer, I think, kind of brings it to life. So this was a long-standing customer, similar to the utility at 1 level or another. Our CSAT was high. We had 2 years left in the deal. Why would you mess with it? Well, the real truth is that the customer was having challenges. They're having challenges in the app space that were sitting on our infrastructure. and we thought there's something we could do. There was a trepidation about transformation and change because many of the apps have been in place a long time. So what is it that we could do to help them? So we talked about there's 3 things that we can do we think that will stabilize it, right? So the first and most of them were how do we get the apps out, right? The current apps that are having the challenges and how do we do it in a structured and helpful way. So first, we actually with Evidian, we brought in some apps refactoring, so how can we refactor a set of apps and move a set of the apps to the public cloud and do it in a controlled fashion. The second thing is there's a set of SaaS services now in the logistics space that why would -- we need to get them there. And so we got to get the data there. So we showed them how we could migrate the data out of their current app structure into a set of SaaS services. And then that left a set of apps that weren't going to migrate and weren't applicable to SaaS. And so we showed them how we could give them a next-generation private cloud platform that would allow them to go and provide that service, but now they would have the elasticity, the benefits, the real-time provisioning that they would have effectively on a cloud platform, on a private cloud platform. And then we showed them an orchestration tool, but it's really a service management tool, right, called Bridge, which Laurent will talk about later, that could provide them the provisioning and the management and the integration across all those forms. Then if we look at AWS, right, and shifting to our partners. One example, right, is what we've done in AWS, and you can see the pace that we've already generated. So in less than 12 months, EUR 500 million of pipeline, 3 customers that are out there and another 1 that's in pilot. And where we see we're going to be in another 12 months with the support of Tanuja and so forth is we'll be at EUR 1 billion of pipeline and we'll have 17 customers that will be in some form of migration. So if you look at our past, this is all additive revenue and profit, right? So this wouldn't be part of our historical stream at all. Now I won't go through each one of these geographies, but each geography is a bit different. And it is important because working with the regional sales directors, right, the likes of Mark and Eric and Nick, but also with the regional heads, so the Berenices, the Christians and the [indiscernible], we've got a tailored approach by each geography based on our presence in that geography and what we're seeing from a demand perspective. So if I just grab a couple of them. If we look at France, we've got -- you'll hear more from Stephane later about our active TS business and now TS and advisory business in France. So we'll continue to grow that. We've actually seen quite a bit of opportunities come to the market around digital workplace and operational backbone, so the HCL business, including a surprising number of first-time outsourcing. So we're going to go pursue those large deals. And we've already announced, we've already won 2 in that space, and there's more to come. By contrast, if we look at Germany, it's a bit of a different strategy. So Germany, we have a number of large customers, and we will cross-sell, upsell those services. So if you remember the top 100 approach we have with the heat map, we'll go and execute that. But then beyond that, we see a real opportunity in the mid-market. So Germany has quite a few of midsized public sector entities, right? I do want to say businesses, but they're not business. And then also quite a few manufacturing companies, midsize manufacturers. And we've got an end-to-end process from sales to delivery, that's a much lower ever head to go and serve that customer set, and we're winning with them because of that and because of the service that we provide. And so we will continue to press and double down on that in Germany. So that's a little bit of a difference that we're going to roll out by geography. Finally, as part of creating the self regenerating sustained commercial activity, which -- for which I'm responsible, right, there's 3 commitments that are inside that, that are part of the rebound and part of the new outlook. So our book-to-bill will improve, right? So we'll be up to 100% to 110%. The most important thing is the quality of it inside there, though. The number is less important than the quality of the revenue that brings the quality of the margin and the cash. We talked about our revenue, right? So before we were stabilized, now as we head into 2026, we're talking about 2% growth or more. But then also, if we look at what's going to drive some of the additional value and value creation, it is from the new offerings. So we're less than 5% today in terms of our revenue stream, and we're looking at being greater than 8% during the -- between now and 2026. I'm really excited about this opportunity. I'm really clear what we need to do and we're on path, but we have a whole lot more work to do. Thank you.

Good morning. I am Laurent Barbet. I am the CEO of Tech Foundation, but I am also the Head of the IP Cloud and Infrastructure business lines. 20 years ago, I was a customer, and I decided to join this company to manage data center services in France. Since then, I've been taking over many positions always related to infrastructure, business unit management and performance improvement. And I'm really excited today to manage the IP cloud and infrastructure business of Tech Foundation. As a starting point, I would like to go to a few key messages I would like you to take away from this session. Number one, HC&I is not focusing only on core infrastructure. We are addressing the interior infrastructure continuum that is including hybrid multi-cloud. This hybrid multi-cloud segment is growing 10% to 12%. And that's why the market we are addressing overall is 40% bigger than the one that was presented to you 1 year ago. We are going to stabilize our revenue from 2024 onwards because of the growth of this new segment. And we are credible. We have the right to win on this segment because of our long track record on infrastructure management. And because we have built a team of experts of hybrid and multi-cloud, a team of experts that are recognized on the cloud market, Brooks Borcherding and Eric Terrell, formerly CEO and [ COO ] of Cloudreach, are now part of the team of Tech Foundation HC&I. The partnership with AWS is creating a huge momentum in our hybrid cloud portfolio, and we see the pipeline growing week over week, not only on existing customers that we propose to migrate, but also on new deals. Last key point, we are working on our margin improvement, addressing the cost optimization of the different spend categories, but also benefiting from the higher margin on the cloud services and also benefiting from a more asset-light business coming from the cloud. So I strongly believe we are on the right track to stabilize and turn around the HC&I business. Going a little bit more into the market, you see and it may have been a surprise for you that the addressable market is going to grow annually by 3% to 5%, mainly coming for -- from the growth of hybrid multi-cloud, but not all of our customers, basically, 80% of them are not going to move to the public cloud fully and very fast. So consequence is that hybrid will be the norm. The core infrastructure segment will be quite resilient, and we see a slight growth on private cloud. So the core services are not going to decrease that much. Number two, 47% of our customers will have 2 or 3 cloud providers, which are coming on top of the other segment. So the IT landscape to the customer is going to be complex and also highly demanding in terms of compliance and security. Our customers will need a partner to manage this complexity, end-to-end and we believe we are in a very well position to do it. If we deep dive a little bit more into the infrastructure continuum basically coming back to what Nourdine presented earlier, you see that to deliver those services, you need to master more than 10 key building blocks. Traditional infrastructure, we have 20 years of very solid track record here. Private cloud, 10 years of private cloud, fifth generation of Atos products that we are delivering on a private cloud. Hybrid cloud, Clay mentioned it before, we have already seen many successes in combination with Evidian to migrate some of our key customers to the hybrid cloud. We are investing in sovereign cloud, trying to find the right balance between sovereignty and cost to glue all those services together. We have already reshaped our network portfolio. And because we are used to manage, I would say, on-site services and some were fragmented landscape, we are ready to expand to the management of Edge. On top, we master the processes to deliver the service, the service management processes. We have the skills in service orchestration and we have the tooling platform to aggregate all that. So Nourdine positioned HC&I as a managed services provider across the cloud continuum. HC&I has the right portfolio and expertise to make it happen. We have the right portfolio, but we have also a set of differentiating capabilities, starting by being a global leader with routes in Europe. We have a very solid data center footprint in Europe, but not only, also in the U.S. and in APAC. We have rationalized data center significantly in the past years. In the past 10 years, we have closed more than 100 data centers. So we have very solid expertise to rationalize data centers. Those data centers are an asset to develop and to be able to get sovereign services in place. We are used to manage share platform. We have managing mainframe for long. And you know the mainframe business is organized around hubs. We have a hub where we run many customers in Europe, we have 1 in the U.S., we have 1 in APAC, and that's the model that we are going to replicate in the future with the platformization of the entire business. So that's really something that we can leverage on. And we have significant set, I would say, of low-cost delivery centers, India, Central Europe, with Poland and Romania, Mexico and Africa that we are now developing, starting with Egypt. Our deep expertise in this market is well recognized. Number one, we are in the magic quadrant of Gartner for 10 years in Europe, for 5 years in North America. We have deployed our fifth generation of private cloud. And we have -- we are used to manage critical operation in highly regulated businesses, in particular, in the public sector in Europe. We have an ecosystem of partners that we are working with. More traditional partners like Dell, where we are black Titanium certified, but mainly and also the hyperscaler, AWS. Nourdine talked about it. I will come back to it later. But also IBM on mainframe. We are delivering low carbon services. We have a strong expertise in improving the PUE, so the power utilization effectiveness of the data center, basically reducing the waste of energy because of cooling. And we have developed expertise in optimization of the IT consumption, of the IT workload itself. Last but not least, we are managing for tooling platform and this multiservice control center that will somewhere manage the entire infrastructure continuum, and I will come back to a little bit more in detail later, is also something we are used to manage for long. So the combination of those 5 points are making us unique against our competitors. So what's the plan of HCI? Starting point was a rapidly declining revenue. So if you look at 2021, the revenue was declining more than 5%. Key reasons was: number one, scope attrition and customer attrition. So in the contracts we are managing, a certain part of the volume was moving to the cloud, and we were not able to retain it. We were losing customers. The sales engines was weak and the pipeline was low, and we were lacking a very strong cloud offering as the market was moving to cloud. Since we started the transformation in H2 2022, we have been able to significantly reduce to below 5% the decline of the revenue. Number one, streamlining the portfolio, eliminating the offerings that were not meaningful anymore and starting to reshape the rest, rebooting the sales engine. So that's what Clay presented before, but also focusing on delivery-led fertilization, selling more projects to the existing customers because it was initiated by the delivery, and building teams -- specialized teams, quads of experts to support our high priority offering like for sure, cloud, but also mainframe. So what's the way forward? We plan to stabilize the revenue from 2024 onwards with 2 categories of key actions: number one, the go-to market, and I'm not going to repeat what Clay explained before, which is a key contribution to HC&I, but also working on our portfolio and teams. So on the portfolio side, I think the -- 1 of the most important topic is a partnership with AWS because we did call to completely change the approach, moving from a defensive approach on the cloud migration to an offensive one and to join forces with AWS to propose plans, action, migration transformation to the customers. Number two, we are going to also reshape our delivery organization, not only to optimize the cost, for sure, it's 1 of the components. But also to build -- to bring the right skills to deliver the new portfolio. So new people are joining the organization, but there is a significant training and reskilling program, which is the second leg of our partnership with AWS. We are training and reskilling and educating a significant part of the HCI team to the AWS portfolio to the migration to cloud, to the management of the new infrastructure continuum. But only -- also on core infrastructure, we have many academies, like the mainframe academy, where we are training young people to manage those legacy traditional technology that are going to last for long and to continue to generate revenue to us. Last point, we are developing new offerings, reshaping the cloud -- the network portfolio to develop software-defined plan that is already quite successful on the market with our customers. but also sovereign cloud and edge. So we believe we are in a compelling position to take full advantage of the momentum and to be 1 of the leaders shaping the market. So to go a little bit deeper in what we changed in our portfolio. Number one, on hybrid cloud. We are moving from a kind of one-flavor private cloud solution, which was the only one VMware that we had to a true hybrid cloud solution, where we are proposing the same technology on-premise and in the cloud to make sure we have a full fluidity of the workload between both. And we are proposing 3 flavors: VMware, AWS, Azure. Number two, we are consolidating all the teams that were doing cloud migration into the cloud migration factory, and we are industrializing the approach leveraging of the existing building blocks we have already. On mainframe, we are repositioning our mainframe in the cloud ecosystem. As Clay mentioned before, more and more customers want to migrate their workload to the cloud, but it's complex to migrate the mainframe application to the cloud and you have usually latency problems. So you need to build new mainframe hubs close to the hyperscaler and give to the customers the opportunity to migrate to the cloud at pace while you are delivering to them the kind of variable workload on the mainframe to somewhere help them reducing their consumption as the workload is going down. So that's how we are changing and reshaping our mainframe offering. On the more traditional infrastructure, we are also transforming them to move to hyper-converge and to provide to the customer an experience which is as close as possible to the cloud, automation, service catalog and so on. So it's not the cloud. It's not as much standardized as the cloud, but it is somewhere similar to the cloud in terms of experience. As mentioned already, we have completely reshaped the network portfolio to be fully software-defined. And last but not least, we are enhancing our Bridge offering, which is our service integration, orchestration offering, which is gluing somewhere. All the pieces together, we are extending it to the cloud. So just to come back on this Bridge offering and the service integration and orchestration, I would like to explain how we are creating value to the customers on top of the hyperscalers. Number one, we need to provide to the customer visibility on the entire IT landscape, wherever it comes from: core infrastructure, private cloud, public cloud, XYZ. So this observability function to show them what is working, what is the performance of our infrastructure, how the applications are behaving up to the business processes across the different technology stack is something that you cannot get from the hyperscalers at all, even if you are fully in the public cloud. So this observability layer that is including also security and compliance to security policy is a key value that we are proposing on top. Number two, we need to manage the operation in the cloud, especially if you do lift and shift, you are just moving the workload to the cloud. And on top of the operating system, all the work to manage the component and the application has to be done. We are doing it. And we are doing it in an automated way, leveraging automation, AI and soon generative AI. Last but not least, we need to manage the cost of the infrastructure. And we know that optimizing the cost in the cloud is a point of attention. So FinOps and making sure that we have the right policies in place, the right workload on the right technology stack is extremely key, and it's really value that integrators like Atos can provide to our customers. So this platform that we are using to manage -- to aggregate the data and to manage the end-to-end scope is made of building blocks that we already have, by the way, is made of tools that is -- that are provided by our partners, including the hyperscalers, but also made of Atos IP, components that we have developed internally. And I would like probably to mention 3 of them only. The first one is [indiscernible] where we check the compliance to the security policies and we automatically remediate the venerability. That's something that's not existing assets on the market. The second one is My C02 Compass, where we track the energy consumption of the entire infrastructure to be able to provide to the customer visibility on their CO2 footprint. So again, that's an Atos project that we have developed, that is Tech Foundation. At last point, very important one is generative AI. We have already a lot of automation embedded in our services. We have already a lot of AI, which is much more categorizing the events and correlating things and so on. We'll move to the next step, which is to use generative AI and trying to do 2 things mainly. The first one is to significantly improve the incident resolution. On top of the 30%, 35% of incidents, we are fully automatically remediating today, we are going to get access to the entire knowledge base, I would say, of the market to help our engineer resolving faster the incident. And we know that in this kind of business, finding a case, that a similar case that happened before or the right knowledge item in the documentation of provider XYZ to address the case you are trying to fix is extremely important. So we expect a huge breakthrough that is going to happen here. And number two, we are as infrastructure managers, more and more coding because infrastructure is code and to get all the automation operation and so on, we are going to code. And we will have to educate many of our engineers to coding, helping them through generative AI, autopilot and so on, is going to make our life much more easier. And that's one of the major topic we are going to address in the overall generative AI plan in HCI. So as a conclusion, I would say that infrastructure is key to the digital world, and we are the ones that make it work. Thank you.

So it's always very hard following Laurent because, a, I haven't got a French accent; b, I never feel as intelligent as Laurent ever. So firstly, I introduced myself, I'm Leon Gilbert. I'm Head of the Global Digital Workplace business. I've been in this industry for 20-plus years. I wasn't any taller when I actually joined the industry, but it's a whole different story. But I started as a service desk agent, way, way, way back when, which is ultimately the bottom of the part of digital workplace and I worked my up through my career in multiple organizations in multiple countries and ultimately I have ended up in the U.S., and I lead this wonderful team. It's 14,000 individuals globally. Been at Atos since 2014 and actually took a couple of year break, came back at the start of this year because I was so energized by what was happening within Tech Foundations and where we were taking this business with Nourdine's leadership. So my kids often ask me, "What do you do for a living, dad? What is digital workplace?" They use iPads all day. They have absolutely no idea what a service desk or help desk is. They're like, "Why do you need to call someone to fix it? You know what the -- you fix it yourself." And it's kind of hard to explain to a 13-year-old kid what a help desk is. But ultimately, if we think about what I -- what digital workplace is in this industry. To me, it's the face of IT. It's the emergency service. It's what most people think IT is in a business. So their experience of IT is often how they communicate with the person who comes to your desk, the person who you speak to on the phone, the person you chat with, the person who brings you a new PC and who makes you really happy. And really, that's what digital workplace is in a very, very simplified nutshell. Okay. So let me go on to a little bit about the industry. It's a pretty big market, EUR 70 billion, and I would say that's conservative in estimate. It's growing. It's growing to about EUR 80 billion by 2026. And we're pretty good at it, and we have been for a long time. It's growing in 3 core areas. Primarily, I would say, the largest areas in managed workplace services, and you see that on the right of the screen. Specifically around employee experience, there has been that shift, and Nourdine and the team have spoken a little bit about the employee experience, the hybrids. So I won't go into too many of the trends because it will be a little bit repetitive. But 1 thing I see when I'm talking to clients is I don't just see the CTO, the CIO turn up anymore. I actually see the business. And the business are there because they actually want the consumer-like experience. They want to see what they get in the consumer world in the IT world. And if I go back to what my kids expect when they start working, they expect it to just work. They expect it to be proactive. They expect not to have to call somebody, not to have to wait for 2 days for something to be fixed. And that is the big difference that businesses are looking for Atos to actually come in there and bring that employee experience. If we move from there to client device support, again, this is a growth area, not as fast as the one I just spoke about. Really, this covers around virtual desktop, your tech VARs, et cetera. So growing, but not as exponentially. And then lastly is the traditional end user services, what we've always known workplace to be, that help desk that you would call the helpless desk, those words. But ultimately, that's more stabilizing than growing. And while we have some clients in that space, we're looking to transform them to that next evolution of employee experience. Okay. So I said we were pretty good at this. And you don't just have to believe me for those in the room from some of these wonderful companies. You can see on the screen, each 5 of these companies recognize us as a global leader in this space. We're very proud of that. I see it a bit like a roll of honors. It's a bit like a sports team. You have all your rewards up there. You got to the final, the semifinal. I see this as a real beneficial for us. But actually, it drives revenue. And why does it drive revenue opportunities? Two things: some clients choose to run their own RFIs, RFPs themselves. If you're a leader in the space, you get selected to go to those RFIs, RFPs. Secondly, the advisory side of these companies often will select the leaders in their quadrants. So hence, the more we have seen as leaders in this space, the better. And really, I think, lastly, these awards signify our commitment to delivery, our commitment to innovation and our delivery execution. Okay. So what differentiates us from other players in this market? I've told you we're a leader. We are a global leader in the space. But what differentiates us? I think there's 6 big things here. So I'll start at 1:00. We were the first to market with employee experience. So 2015, 2016, I remember thinking about we've got to really change the game and become consumer-like in approach. And we worked with Nexthink and various other companies to come up with this. How could we be proactive? And really, we became that market leaders, and people started to follow us, which is great. You're doing something right, people follow you. Everyone knows in this room and globally, we are a European leader in this space. But actually, in Digital Workplace, 50% of my revenue in my business actually comes from the U.S. market. And you'll see on the next slide some of those U.S. logos. Clearly, having a strong partnership network is key. Not trying to build everything yourself, choosing the right partner, but actually choosing a partner rather than a supplier. And for the last 5 months since I've returned, I've really focused the team and -- my team on let's go and find the right partners to work with, not ones that we just pay money for something where we get something in return. So choosing the right partnership network crucial. Spoke a little bit about our brand. ESG. Nourdine mentioned decarbonization. And the E side is often very well spoken about in Atos. But I just want to talk a little bit about the S side. And for many of those who maybe don't know, we're a leader in digital workplace accessibility, and that's the S side, the social side of the ESG offering. And then lastly, I think we've talked about gen AI a lot today anyhow. But everything we have done and we've always done for the last 7 or 8 years has had a fundamental concept of AI and automation built into it. Okay. Let's talk a little bit around some of our great logos that we have as clients. And I would really, really say these are long-standing clients. There's 8 logos on the screen. And each of them, I would say, cover multiple industries, multi geographies. And mostly, these are happy clients, and they're multiple renewable clients. Many of them have been with us for 10-plus years. And I think I saw a stat the other day that 60% of all of my clients have a 10-year plus tenure in digital workplace, which shows the partnership that they actually see with Atos and how we continue to evolve them as a client for us. I'll select 1, just as an example. So Johnson & Johnson, a global pharma, med device company, recently did a split, where they split off the consumer division. I'm sure many of you in the room were aware. So Kenvue actually selected Atos as their partner of choice as well. So now we would have Kenvue as a logo as well as J&J. But some great logos and some great client relationships that we have there. So I'm going to now get to the other meat of my presentation, which is the what and the how. So how -- what are we going to do in the sense of numbers? And then how are we going to get there? So the what is we want to exceed the market. You'll see, I think you may recall in my second slide, the market, I said, was 1% to 3%. What we're suggesting here is that we will grow at 2% to 4%. And I think that is absolutely achievable given our brand in this space. But there are some headwinds, right? So we have to factor some of those headwinds into this. So think about year-over-year price reductions, renewals and market macroeconomic conditions. So there's a lot of things that we had to factor into those numbers. But I do think they're highly achievable from the what. If I think to the how. Clay covered a lot of the how in the portfolio and partnerships and the customers and the order entry. So I'm going to cover the 2 other ends of the loaf. So firstly, I'll talk a little about the team. So the team that I re-inherited earlier this year, a really good team. Needed a little bit more of a global centric approach. So what I've done over the last 5 months is bring some more sort of global approach to that. So now we have a base in 1 of our largest geographies in the U.S. as well as in Europe. So we've now got a perfect mix, and we'll continue to evolve that team over the coming months and years. It's incredibly important. We address all markets. And then I think secondly, now Digital Workplace has a true focus in Atos. I was thinking about what -- some of those functions that we have outsourced in the past, how do we look to re-insource those to get one step closer to our clients. So there's a set of activities that I'm working on with my team right now about, okay, let's look at these things and say, what do we bring in, what do we -- stay as outsourced? And this is really to get that bond with our clients. And then if I flip to the other part of the slide, the geographic focus. Two main areas for me where I think the -- we've been a little bit weak over the last few years. I think, France, to begin with, so we're in this beautiful country. For me, it's a bit like, you're playing in your home football stadium. But we haven't really been able to compete in France for many years in digital workplace. Things are changing, and you'll see that in the next slide. I want to rebuild our French operation. That doesn't mean going hiring lots of people without the revenue. It means we will build it in a strategic, structured way. And we have some clients that we've already landed, that will allow us to start building that, and then I think the other side of this is the U.S. growth. So it's partnering with Clay and his organization as he is rebuilding his go-to-market teams in the U.S. market. We have an offering that matches what people want in the U.S. And I think it's that combination of having the business line and the go-to-market sales organization tied together at the hip and to regather our focus around the U.S. market. All in all, this will get us to that EUR 200 million of bookings by 2026 and exceeding the market growth. Okay. So let's just talk about a client. I mentioned France earlier. So European aerospace company, we won in Q1 of this year, a great logo. The existing incumbent was doing a really good job. So why change? Why Atos? Why change? The simple answer was the client recognized they really wanted an experience-led approach, a consumer approach. They recognized their workforce was changing. They recognized they needed something that was different, and it wasn't just the same kind of end user services approach. So they selected Atos. A fantastic 5-year contract that we've just signed, it will go live in H2 of this year. And it will be a significant logo for us moving forward. And there's lots more to come of these. Nourdine mentioned earlier about the EU. We have several others in France and around the world that we're looking forward to announce very, very soon. So a great proposition and a great client for us and a real, I would say, springboard for the new Atos Tech Foundations and also for Digital Workplace, which obviously really, really happy about. Okay. Before I go on to the client testimonial, Rob Mustard is the CIO of Scottish Water. I'm sure we all know what Scottish Water do. That's the stuff you drink. So it's an essential service. Scottish Water has been a client of Atos since 2018. So a 5-year relationship right now. They've just renewed for another 3 years on top. So that will make it an 8-year relationship, which is great. So we're getting towards that 10-year scenario. And what you'll hear in Rob's speech is how Atos and Scottish Water are partnering together and how we've helped them evolve from a very traditional service to a very modern new-age service. And I'll -- rather than just hearing from me, let's hear from Rob, and I'll let you guys take it away. Rob?

Yes. I'm Rob Mustard. I'm the CIO, Scottish Water. In terms of a digital workplace, what does that mean at Scottish Water? Well, we've got over 4,000 people directly that work for us across all parts of Scotland. We've got office space, and we've got field-based teams. And I guess, during COVID, 1 of the challenges we had to do is immediately enable lots of people to work from home, and Atos paid a crucial part of that. And I think acceleration of that was unbelievable compared to how long that might have taken us before as one thing. During the course of that, we worked with Atos as to deploy Windows 10, again, in a completely remote environment, and that was exceptionally well, went really well. And that's now enabled us to work in that hybrid manner. On top of that, there's also our field force where, again, Atos are working with us and a couple of other partners to ensure that wherever you are in Scotland, whether you're in an operational site or whether you're in an office, you have the ability to connect and connect with our Scottish Water systems, that I do every day irrespective of where you are around Scotland. So the work that we're doing on network connectivity and the PSTN replacement program are hugely important to our people and hugely important to giving us visibility of our assets going forward.

So I think that's a great pitch from Robert. It was super exciting to hear the, a, they've renewed this, And b, that they see that evolution of Atos. So before I hand over to Stephane, I just want to summarize very, very quickly. We've got a strategy. We've got a vision in digital workplace. We actually have a client base that really likes us, and that's a big thing, right? It helps you with your revenue and your opportunities. We're a leader in this industry. And lastly, I would say my team, the team is totally reenergized and really, really excited about executing, and that's back to the whole the power of we. So with that, I'm going to hand over to Stephane, who will take it away. Stephane?

Good morning, everybody. So I'm Stephane Richard. I'm leading the business line Technology Services. Leon, your U.S. accent is brilliant. Yesterday, it was D-Day, but more important for me, it was my B-day. I celebrated yesterday my 50th birthday, means common point with Nourdine. I spent nearly half of my life in this beautiful company. I grew as a man. I grew as an IT expert. I grew as a manager. I started in Atos 22 years ago as a sales engineer and after sales director, account executive, had switched to a more delivery stuff. And I have really enjoyed to manage some big application management contract with [indiscernible] with Sanofi. So TS was born 2.5 years ago by merging some former organization form and mainly in France. Immediately, we took the decision to define a clear DNA for TS, which is a little bit different in addition to the other business line. First of all, we are in fact signing framework agreement with our customer, 3 years, nearly 3 years, based on price grid per profile per country. And after our business is to deliver demand material activity, skills, expertise, customized services, demand material, staff augmentation, different name of what we are doing to our customer everywhere they are. So we are mainly delivering services customer on-site everywhere using their process, their tool. What we are doing in Nuremberg? What we are doing in Sao Paulo? What we are doing in Madrid [indiscernible] is totally different. And this is exactly 1 of the key points of the DNA of Technology Services. Second point, per nature, our business is cash profitable. Our external revenue is made of the number of the each month we are editing with our customer, multiplied by the average daily rate we negotiate in the framework element. And we invoice each month. This is a very predictable business because very linked to our capability and to our people. Last point, maybe the most important one. In order to tackle this kind of request, my organization is made of constellation of local business unit. A local business unit, this is small company in the company with 1 boss, 1 business manager, between 100, 200 people, city oriented and with 2 or 3 sales specialists, as explained by Clay. Very decentralized, very agile, very flexible. For instance, in Germany, we are following the line organization in Germany with some squad, presales and sales team because what we are doing in 1 line again is totally different compared to the other one. So I would say TS is triggering the oversight of Atos to customer. Now we have delivery, as I told you, end-to-end services across customer life cycle. I already talked about customized services. We are doing integration services with our customer, and this is where we are making the link with our technological partner or with our hyperscaler. And this is where we are managing the certification plan in order to increase the skills of our people. Last year, we managed 700 certifications with our tech partner, Dell [indiscernible] with our hyperscaler, WBS, as already explained. And we managed some new offering with this partner as a cyber recovery Dell offering. A new one, as explained by Nourdine. This is technology consulting. Why? Very simple. We are very well known by our customers as a doer. We are a leader, as explained by Leon or Laurent. The complexity of the edge and continuum plan is becoming so difficult to manage for our customer, then they require from us some advice. So we are moving to be doer, to be adviser, which is in addition a very profitable business. So TS, in addition, is a door opener for the other business line. When you want to win a bigger sourcing contract, if this customer doesn't know you at all, if you don't have still some local services with this customer, this is much more difficult. When we know this customer by customized services, we are much more efficient to deliver the change, the transformation, which is led by our customer. And in this other side, when we are winning some bigger sourcing contract as Airbus service desk, one layer of customer satisfaction is, please deliver what you commit in the contract, obviously. But the second one is, okay, please help us, support us to staff around this contract. You are managing with Leon's team and this transition offshorization. But in the same way, I need you to support locally my team. So this is in addition, and we can talk about the reverse cross-fertilization, in fact. In that way, TS is a cornerstone of the Tech Foundation transformation. What is the market we are receiving? So as you can see, robust growth, 5% to 7%. As I explained, our customers are requesting more and more end-to-end solution delivery. So edge and cloud continuum became so complex with all the technology, with all the partner you can face, when they need a partner, which is able to support them in the under IT life cycle. They are requesting more and more in-sourcing and specialist service center. This is due to the geopolitical situation and to the sovereignty, obviously. [Audio Gap] [indiscernible], in fact, this is a small squad team, 5 to 10 people, no more. But talented guys, thinking out of the box, which are locally managing the ecosystem, as I told you, partner, school, local. For instance, we announced a new offering in the Atos cognitive data platform, and we are making for [indiscernible], for instance, on the green data. This has been started 3 years ago with some small workshop, co-innovation workshop with Bordeaux Metropole. So co-innovation workshop. We are declining after some [indiscernible] with our customer. And again, this is amazing. That means we are creating a business with our customers. No competition. Very profitable business, again. So we are deploying this model nearly everywhere now. And this is a key and unique differentiator in the market. Nobody else is able to manage this network of [indiscernible] is feeding by the bottom up the future of the portfolio of Tech Foundation. This is another very important point. What is our plan? [Audio Gap] I told you, local business unit, very flexible. We can open, we can close. We are following our customers. Second point, we are managing short-term contract, as I told you. So that means each 3 months, nearly, we are renegotiating the price with our customers, tackling the inflation in that case. In Europe, we forgot the inflation. But my team in Brazil, for instance, they are very used to renegotiate the price each 3 months. This is usual for them. In Europe, we forget this. Now my job is to be back on this kind of periodic renegotiation. Secondly, as I told you, we are selling skills, expertise, learning, certification is key for me. And this is a way to increase my price, obviously. When one of my own project is successful to be a cloud architect, for sure, I'm selling this expertise to this customer. Second point, geographic expansion. We opened Africa 1 year ago with Berenice. Now we are expecting a double-digit growth in Africa. I won't talk again about the Togo references, [indiscernible] follows the new -- the next news, we are duplicating this model in other countries in Africa. Three weeks ago with Julien, we were in the U.S., and we officially opened TS organization in U.S. The U.S. market, where we are not -- still not [indiscernible] for TS, it's huge. Our pipeline is already here. We opened 1 month ago. We already signed off a contract with the customer, I can't disclose, but we already signed off a contract. Third point, portfolio expansion. As I told you, technology consulting in order to be seen by our customers, be advice by doers -- and again, I would repeat 1 key point. Why my plan and why I trust I will beat the market trend because we did it since 2 years despite the uncertainty of the market. Thanks to the diversity of the service, thanks to the diversity of the geography, thanks to the new geography we're opening and thanks to the portfolio expansion. So our growth for TS is extensive. And TS will still continue to deliver and to trigger the oversight of Atos for our customer and thanks to our employees. We are perfectly on track, maybe a little bit in advance and Nourdine compared to the plan, Nourdine, to your introduction. So my pleasure to announce this is time for the coffee break, but only for 15 minutes, please. Thanks a lot for your listening. [Break]

Okay. So thank you. Welcome back. I hope the coffee break was good. And just wanted to wrap up the first part where you get a sense of the diversity of the business in tech foundation. I think it was important at least to help evolving the perception of the various business model that we have going on in that EUR 5.4 billion business. So now we're going to shift to the transformation plan that EUR 1.2 billion program and giving you a little bit more insight about what are we doing, how we are doing and giving you an update on maybe 2 main topics. We had a lot of dialogue with some of you about what -- how are we tackling the red account and by when it will be done and so on, and maybe how we are tackling that strong trench of headcount reduction as well. So if I go there -- so first of all, it's a comprehensive approach okay, a holistic approach. We are not just tackling one dimension. As you have seen, we are tackling several. We are architecting our go-to-market model. Clay, spend time in explaining you how we are streamlining the process, aligning the accountability and the incentive and reinvesting in those pocket new offering, but as well as large deals to make sure that we get to the right book-to-bill with the team, yes. The portfolio redesigned, each of the business leaders have been telling you the story, each of them with their style on how are they making evolve in their portfolio. I will now focus on the margin expansion, but before going that, maybe just one point on the Thailand strategy and the culture. What we are trying to achieve with the team is shifting the culture of Atos that have some way drift away the years before, trying to bring it back to a more cash-sensitive culture understanding the priorities, trying to bring back discipline, commercial discipline and commercial scales, bringing more expertise and accelerating the client centricity, which was already one part of our DNA. Moving to the margin extension. I think here, I want you to take at least 2 message before going to the breakdown. First, this is an unprecedented margin expansion program in such a window in such deepness to generate EUR 1.2 billion gross benefit. It's really important. It is backed with an envelope of restructuring. Today, we are mentioning EUR 780 million, so 10% lower than what was presented last year. I just would like to maybe double down on that. When you take the guided guidance and when you take the reduction of restructuring, what we are saying to the market today is, we will do our transformation with EUR 300 million less than what was presented to you 1 year ago, EUR 300 million plus less. I think it's really an important point, and I want to make sure you get that true. Then that EUR 1.2 billion is breakdown in 4 categories. And each of those categories have a set of classical levers, how are we addressing them. And we are in Next-Gen levers, as you could in, we need now to integrate much more artificial intelligence in the way we are operating and extracting insight to act on time with the right benefit. The delivery modernization, which will be all about that high cost restructuring, reducing it and shifting to offshore, but as well now embarking, like Laurent mentioned, all the ML hubs, GEN AI [indiscernible] ops that are surfacing in our operation. Project margin expansion, it is about going account by account and improving our project margin. So here, 2 categories, and we will address them just after 2 main categories, I would say. The red account, the end performing account, which we are tackling heads on with the entire team. And then the pricing increase, which here we tackled it partially last year, and we still have room, and we need now to industrialize the approach. Third-party spend as any large IT service provider, we do have a large base of third-party spend that we need to address. Here, this is a bucket which is sitting outside of our project margin that we are focusing on. And then last but not least, the structure, the SG&A structure and especially in regard of the Gen -- Gen AI impact will have to be integrated and that's an upside, which is not yet in that plan. So all in all, -- this is a plan we believe in. Darren in his section as the CFO, will walk you through the bridge in how we have been sizing that envelope, how we have been mitigating some risk to get in front of you with that EUR 1.2 billion. So now let's go and address maybe first, delivery modernization. We want to make it simple here. By '26, we have 15% capacity free up versus today. So as we mentioned, I'm reducing the number of headcount to deliver the same level or even higher revenue. Number two, offshore, we were late. We are around 54%, 55%. We need to be around 65%. So in the next 3 years, we are moving to an offshore ratio of plus 10 percentage point versus what we are today, okay? And number three, this is also an upside here that we are still debating inside the team. But what we see is our pyramid structure will level. I told you in the introduction that all the junior analyst role will be swapped out by the Gen AI wave. So what we believe is the first step of maturity of Gen AI will push us to address that pyramid differently. And here, the teams are working, and this is an additional opportunity, which is not yet fully embedded in the previous plan, that you saw. So that's one dimension of delivery modernization. Here, just to give you an update, this is the headcount reduction that we are driving with the team. We already achieved more than 900. Again, our view is, by the end of '24, we will have executed 75% of it. And why not faster? I remind everybody that it is mostly addressing Continental Europe which needs a period of execution, yes. And then maybe last but not least, all that plant has been fully presented to our employee representative body at the European level, but also at national level, and it has been completed in the right time in the due time. If I go now to project margin expansion, which is the second topic. Last year, I told you that we had a little bit more than EUR 700 million of the revenue in tech foundation, which was underperforming. When we [indiscernible] substandard, it was negative. And that was draining a lot the P&L of Tech Foundation and the cash of Tech Foundation. And what I wanted to show here with you is -- because I got that question, I think in the Q1 publication, hey, could you give us more flavor on how you dealt with that? So today, I'm coming back with figures for you. First, 22% was account of that revenue, we have been able to tackle it by pure renegotiation. Going in front of a customer, and pushing for the value? Is it due to inflation? Or is it due to better services or do you just make the scope [indiscernible] getting the customer acknowledging the need of price increase that was important. 37% of that revenue, what we did, we descoped the services where it was not a sweet spot for us. Generally, red account doesn't go with high CSAT. The customer is always not happy about that piece. So we agree to descope our services and refocus on what we know and how to deliver and how to generate value instead of the area of problems. Obviously, in those discussions, sometimes you get to termination. We terminated contracts. We are terminating contracts because some of the customer or some of the contracts we had were not manageable. So 80% of that revenue has been addressed. And we are still working on the relining this, which the team are committed to finish by the year-end. So basically, we addressed EUR 500 million of that EUR 700 million I mentioned initially, which has represented the 66% you saw here. And just to give you a quantum, we are talking about almost EUR 60 million of margin improvement from '21 to '22 -- EUR 60 million. But it's not enough. How are we going now to add sustainable? The worries with the team is to make that a onetime task force and then we get more struggle. That's why I'm coming back to that cultural shift that is needed in the transformation and we are putting in place those new initiatives together with the team, so with Clay, but also with the business line leaders that are now approving deals, but also with the geographical leaders that are also approving the Ts and Cs here. So here, what we are doing is again, exiting the non account, strengthening our contract and commercial management that was really a weak part in the cultural factors. We were signing things too easily or not with the right protection mechanism. The phase in our business where we have the most risk when we execute a contract are the beginning. Beginning normally, we do a transition, -- and in our business, we commit to a transformation. And often, the customer wants to see the saving pretty early on in the contract. So the red phase also a trouble phase for most of us are the first 18 to 24 months that needs to be put under strict control with the right early-warning metrics to be able to impact customer and account team at the right moment and not let the contract drift to rate totally. So here, same thing. We put a central team in place are monitoring it. We have our dashboard in place to make sure that all those contracts are being ramped up with the right level of commercials, including margin. I will say also something that was frustrated with the previous setup. We clarified it now, making the responsibility much more clearer. The end-to-end delivery is under the business line and the geography are leader of the go-to-market. The go-to-market management of the customer locally. So now by simplifying the setup and simplifying the accountability and now there is one flow to track, which was really important. I think Clay mentioned it not so long ago in Atos. I think 10 people were responsible and nobody was accountable, if I remember well. Anyhow. And we align the incentive mechanism, which was really important. Important why? Not only on operating margin, now starting looking into cash. And that lever has not been deployed in the Atos context. And that's something we are taking on with the entire team, leadership, to make sure that everybody gets the cash metric in the bonus scorecard in the incentive schemes, but as a priority. I'm spending time on that. It's really important because it is changing the entire paradigm of the Tech Foundation employee where before the organic growth was the main metric. Everybody was looking after organic growth without the same impact on cash. Here, we are totally turning around the pyramid. Now the main metric is the cash, and we are expecting the [indiscernible] to change thanks to that. So what does it mean? It means that last year, we reduced from 13% to 9%, but we are not where I would like us to be. We still need to get closer to what is the industry benchmark. Even if I'm not proud of that industry benchmark, -- but industry benchmark is talking about 5% of your revenue which is in trouble, yes. So here, the team are working hard to get us below or at 5% by the end of the plan. Second action on the project margin expansion. The pricing -- so same thing. We work up late to the inflation discussion. And last year, we had in H2 to launch a set of initiatives, by the way, across the group, [indiscernible] and Tech Foundation to make sure we were catching up on those price increase. Some of them are being done automatically or by contracts, applying [indiscernible] and some of them needed the account team to go and sit down with the customer and negotiate the right level of price increase, yes. So we generated EUR 35 million last year, which is already embedded in our plan. But the way we have delivered it was pretty, I would say, artisanal. It was each account team looking at their data and go doing it. So what we decided with Clay and the team is now to put a little bit more structure, integrate all our contract now in the database, which we are leveraging from the split -- the operational split we are doing and now putting AI on it to be able to systemize that approach of price increase in all other contracts. So it's evolving. I think we're not yet there where I would like us to be. But now we are seeding the right initiative and action to make sure that it become part of our ongoing commercial activity. And on that plan, that EUR 1.2 billion that we signed last year, and we put the entire organization, Tech Foundation Organization in full motion to deliver. We have seen already the first result. On the rebound side, on the commercial side, we increased the pipeline by EUR 1 billion, as mentioned previously. We improved slightly our book-to-bill even if I'm not where I would like us to be. And we increased by 50% the new logo, which is a good signal because even during that period, we have been able embark, convince and bring net new customer with us and believing in what Tech Foundation believe to deliver to our customer. On the operational side, we moved fast. We already achieved EUR 270 million of that EUR 1.2 billion, which is a little bit slightly ahead of our plan, knowing or taking into consideration that last year, we were setting up the framework at the same time. Now that the framework is set up, it's all about execution and full motion. We reduced 900 headcount of our high-cost countries. It's important because 75% of our cost base is labor. And when you look between offshore and onshore, the onshore side is customers a lot, and that needs to be adjusted only to the one who needs here. And then obviously, we addressed the underperforming account. And you have seen in both sections that we have been ahead of the previous plan, which give us the confidence to update our guidance. So here, you just have a breakdown of each category and how we are progressing. And I think we will use that in our semester close to give you an update on how we are progressing in our transformation plan, semester after semester. And with that, I have a pleasure to introduce Darren Pilcher, our CFO, who will now take you through the numbers. Thank you.

Okay. Good morning, everybody. So I want to start with a little story. So 5 years ago in February, I joined Atos and I was wondering what is the Atos company about? What is it? What does it want to do? What is -- how does it work? So I started to ask a number of people. What is the company about? How do we do this? And I got some good answers, but they were very inconsistent. And some people said about the people, some people said about their own business unit. But no real consistency. Now I can tell you, in the last 12 months is very, very clear. It's all about improving the numbers. It's -- we are completely dedicated improving the numbers. So -- that's the first short story. The second short story is -- my name is Darren Pilcher. I have been in the IT industry for 25 years. I've worked for IBM, DXC, HP. And I've seen the full breadth of the IT services industry. But in every dark corner, you can imagine in that industry. I've seen some ups and I've seen lots of downs. And the one on common thing from all of the downs is that those businesses that tackle it with a strong strategic plan to recover plus instill that in the rest of the organization are the ones that do recover it. Okay. I've seen many plans that are not really embedded in the organization. So Nourdine and I have been very focused on this, very focused on making sure we get the full management team around this recovery plan, and that's what we've done. And we started to see the success of this. Let me begin. So first of all, I want to give you 6 key messages from my presentation. Number one, we over delivered revenue and operating margin last year. So we did EUR 400 million better on revenue, and we did 3.1 points basis points improvement in our operating margin, an extra EUR 156 million of OM. So this is really good. Secondly, as I just touched on, we have built a very granular plan for this recovery, okay? We've built the plan, and I'll take you through more of that later. Thirdly, our core revenue, you've heard from some of the business line leaders earlier, our core revenue is expected to grow between 0% to 2% until 2024 and it should grow further thereafter. Thirdly, operating margin -- Fourthly, operating margin turned positive in full year '22. And we have set the ambition of 6% to 8%, which is an industry standard level. So lastly, we weren't quite able to do that, this year, we can. So between 6% to 8% is in line with industry standards. So we're building this plan to get us back to industry standard level. Our cash flow performance, we project will turn positive in full year '25. And full year '26, you've heard already EUR 250 million plus. And our cumulative cash flow over the next 4 years is around EUR 300 million, more than what we projected last year. Let's turn briefly at least to what we did last year. So here, you can see on the revenue side, -- we improved by EUR 400 million. But actually, the first headwind we had was our own decision to exit some of our noncore business. So really on the BPO and the VAR business, we exited BPO account and we continue to reduce our value-added resale business. We have had higher-than-expected revenue retention, which I think Laurent has really touched on in his presentation. So we didn't see that dramatic decline from '21 continue into '22 on our core infrastructure. So we retained better revenue. And we started to win new deals and boost our fertilization rates, as plays projected, okay? So we boosted our renewal rates up to 91%, and we signed some new locates. And lastly, smallest number on the chart, but it's important is we're tackling the pricing challenge, okay? So last year, we were all hit with the macroeconomic issues of inflation rising, and we had to go and tackle some of those contracts where we didn't have cost-of-living adjustments. We had to go tackle and we've done that. So we ended with a higher baseline on the revenue EUR 5.4 billion. On operating margin, of course, we carry through the margin from the incremental revenues, but the most important areas in our margin expansion, where we had 195 million of gross run rate benefits delivered in full year '22. So against the EUR 1.2 billion that Nourdine showed earlier, which is in our plan for gross run rate benefits, we delivered EUR 185 million last year, okay? Then we had some headwinds and counter effects and here, we're really talking about where we have some backfill costs behind some of that gross benefit and also some of the cost headwinds with inflation. But nevertheless, we got to plus EUR 38 million at the end. So that was last year, but I know you're all really here for the future, not last year. So let me move on. Let me spend a few minutes talking about the plan. So we've talked a lot so far about we've got a granular plan. We've got a detailed plan. I need to give you some color behind it. So our plan started with our top 100 accounts. So we went out to each of those top 100 accounts, the account leaders on there and we asked them to build their projections on their revenue and their cost, and we gave them a number of cost levers and initiatives that we've been developing to -- and to drive our productivity metrics Nourdine has mentioned about offshoring being 10 points behind like the pyramid et cetera. So we gave them the tools to do it. And they built the plan for their account, okay? So we have a granular plan built by the top 100 accounts. We have that augmented by the geographic leadership and the business lines. So there isn't one leadership position in this company that hasn't played a part in the building of this plan. Everybody is running this plan, and everybody is being monitored against this plan. So we've built the full bottoms-up plan. And then on top of that, we layered in the investments that we need to do to tackle the cost base. The cost base is too big in the company. You can see it from the operating margin. It's an issue that's been permeating through the company for many years, and bits and pieces have been tackled year after year, but we've never seriously, seriously addressed the cost base problem that we have within the company. And our plan is tackling that, which is why we have a lot of restructuring spend investing into fixing the cost base because once we fix that cost base, we then have a flexible cost model, which means we can adapt to future headwinds beyond '26, okay? So it's really important that, that message lands because -- it's a lot of money, but it's important for us to fix the cost base, particularly in Western Europe, okay? So we've laid in those plans. We've also laid in some other investments in R&D into that plan, and we have the full plumbed out financials laid out in our plan that we are working and tracking to. Finally, we have governance on it, okay? So we have governance, we have the business leaders owning their part of the plan, driving their part of the plan, and we are clearly steering them to make sure they achieve it. So that's the plan. How does the plan look. So if I take each in turn, on the revenue side. So our revenue low point is still at 2024, as we said this time last year, but the magnitude of the revenue is much better. So with EUR 900 million better than the low point given previously. The EUR 900 million is obviously benefiting from EUR 400 million better in '22. So that's a high number, but also in last year's plan, we expected a similar decline in '23. That's unlikely -- very unlikely to happen, okay? So we can anticipate another EUR 300 million or EUR 400 million benefit, all of that 900 coming as a difference to the plan in '23. So the low point in 2024 or EUR 5 billion is a -- it's 5 billion, circa 5 billion could be higher, but that's the low point. 5 billion is the low point. And in 2026, we expect to go back to normal growth, as you've heard through our dynamics on the portfolio, and I'll touch more on that in the next slide. Operating margin. Our operating margin, as I've already explained, is we turned positive in full year '22, which is 3 years ahead of plan, great. But actually, where we need to be is 6% to 8%, okay? And the 6% to 8% is industry standard. That's what we're going for. We're not happy with anything else at this point. And this is to get us to full year '26, which will put the business back on a even keel, okay? What happens beyond then? Obviously, we have ambitions. But full year 26 is about getting us back to the industry standard. And then finally on cash. So we do need to make these investments in restructuring, which means that we will not turn positive on cash until 2025. But by then, we would have laid the foundations for further growth in the cash number. So 2026 will give us EUR 250 million plus of cash flow, and I'll talk more about the cash in a couple of slides. So let's move on to the revenue. Okay. So on the revenue, have given you the headline numbers, EUR 5.4 billion full year '22, EUR 5 billion in the low point, then we move back to growth. We split this into three distinct parts in our portfolio. Firstly, on the dark blue box, as we've described, on the new portfolio that the team [ have done ], we've got a higher addressable market to go after. And the momentum on those business lines on technical advisory, digital workplace and the digital business platforms is there, the momentum is there. We expect those businesses to continue to grow. That's good. The medium blue shaded box, the middle box is really around the story on hybrid cloud and infrastructure. So within this story, okay, Laurent has described the difference between core infrastructure and the hybrid cloud offering, where we have a sort of counter-opposing growth number, okay? The hybrid cloud and infrastructure business, it will decline to 2024. But then as the mix shifts, it will move back to growth. So we expect the stabilization of hybrid cloud and infrastructure to occur at full year '24 before returning to growth. And then the final piece is our nonstrategic business. The nonstrategic business today represents 17% share of our business, and we have a plan to move that to 6% over time. So we will manage that down. This is the, again, the value-added resale business and the BPO portfolio. We will manage that down in a fashion, which will enable us -- which will really drive the low EUR 0.5 billion in full year '24 before we can return to grade. So the message ultimately is that our core business, excluding the nonstrategic, the core business will grow between 0% and 2% to full year '24 and accelerate growth thereafter, okay, as hybrid cloud and infrastructure stabilizes and the growth and -- the positive momentum businesses of tech advisory, digital workplace, digital business platforms will grow. So we have a sort of a dip and then a growth. Let me move forward. Okay. On the operating margin story, let me spend a little bit of time on this one. So in the blue area box, Nourdine covered some of the initiatives in his earlier presentation. But here, what we have within our plan is from full year '23 to '26, we have EUR 1 billion of gross run rate benefits planned into our transformation plan. So with EUR 185 million we did in full year '22, plus the EUR 1 billion here, you get to the EUR 1.2 billion that we set out as our aspiration. The EUR 1 billion of gross run rate benefits, it's around the delivery modernization. So we improved on our delivery productivity, the offshoring, the pyramid, the utilization, and that is the biggest piece of our transformation plan. We saw the benefits generated in '22, which is we believe in the benefits continuing '23 to '26. And we have the restructuring plan behind us to help achieve that. The project margin expansion is a combination of addressing more on the red accounts, but also on pricing benefits. So remember, these are cumulative benefits over time. So the project margin expansion, again, we believe in that, we've been able to address that in full year '22 and we'll continue to do so. On the third-party spend, this is a better supplier management and also management of our subcontractor base, et cetera. So we have a good rigorous plan around our nonpeople cost. And the SG&A piece is really transforming and simplifying to some extent, simplifying our organization. So as we move towards a separation scenario, our transformation around some of our processes today, remember, Atos has grown up from a combination of lots of different businesses, lots of different internal processes, we will simplify that. And I personally, within my financing, we'll simplify it. We will simplify our SG&A benefits -- sorry, our SG&A cost, and we have a plan to do that. And we are executing on that plan. So the growth benefits we can achieve, there are headwinds and offsets, of course, against that. So we know we have an inflation environment. We built into our plan salary increases that will flow through. And those increases are built in the range of 3% to 5%, okay, depending on the country. So we've built in a reasonable amount of inflation increases in here because we're not being super aggressive here with this plan. We're trying to build a balanced, credible plan. Our [ backfill ] costs are important, obviously. Incremental R&D, so we will spend more on R&D as we look to continue our investments in new technology. And other headwinds really pertains to other macroeconomic risks that we might encounter. So again, we've tried to offset some of the, let's say, some of the ambition that was built into our plan naturally. We tried to offset that a little bit by putting in cost contingency against potential macroeconomic headwinds. We could have more supply cost issues, changes in the IT sector. We could have inflation creeping higher than we've even anticipated. So we have built some headwinds, protection into our plan, okay? This will get us to the industry standard margins. Let me move forward. On free cash flow, then, so I'm going to take each piece in turn here, but our free cash flow, as I've said, we anticipate getting to EUR 250 million plus. Our OMDA will be driven, of course, by our OM benefit and through the walk I just took you through. Our capital expenditure -- we are a business that uses capital. There's no way getting away from that, okay? Our hybrid cloud and infrastructure business will use capital expenditure. We have built into the plan a modest improvement in our capital usage, but we focused on our hybrid cloud and infrastructure business. So our capital plan is really linked to the performance of that business, and it will fluctuate. As that business goes up or down, our capital intensity will grow -- our capital expenditure will grow up or down. So the CapEx, we can't get away from. It's going to happen, thus supports our business. The change in the working capital, a moment on this. Throughout the presentation, you would have heard Nourdine and others talk religiously about cash. And cash is very, very important to us, and we're instilling into the company, into our organization, a culture that cash is very important. So I have been pushing our organization to really focusing on the account DSO performance that we have today to drive cash [ or runs ] on the performance of those accounts and by geography. But also, as we come to solution new deals, we're looking very carefully at the cash dynamic in those deals. Now we've always -- historically, we've always looked to a payback mechanism, but now we're beginning to look at the DSO on the new deals as well. So we're really taking a strong view in our price release in our deal solutioning process around the cash. That is very, very important to us. So within the plan itself, we've kept working capital. We haven't changed it too much, except in full year '26, we put in a small improvement coming from our account DSOs, which by then we should see and hopefully, we see it much earlier, but by then, we should see some improvement in our account DSO, which is why we have a small benefit in our cash plan on the change in working capital. It really happens in full year '26. The restructuring cost rationalization and PRC cash outflows, these are headwinds. Of course, we know about them. The restructuring cost is the tail end of the restructuring plan that we have. So this is the cash-out implication of that. The rationalization is an ongoing spend that we have, mostly related to our data center consolidation and real estate consolidation work that we do. So this is an ongoing factor. And our PRC cash outflows is recognizing the cash outflows coming from the impairments we've taken historically on some of our large accounts and vendor commitments that we booked in December '21 and some more in December '22. So it's a cash outflow coming from those. Now restructuring and PRC cash outflows in full year '26 are quite high. And we would expect them to tail off beyond full year '26. So we're not giving any guidance beyond '26, of course, but we would expect them to move towards more natural numbers beyond full year '26. So our cash position, we see a credible path to EUR 250 million plus in full year '26, but we are trying to action structurally within the business so that we can aim to achieve more cash in future years as well. But of course, I can't give you any guidance on that today. Okay. And finally, of course, through that plan, EUR 300 million higher cumulative cash generated within the company over the 4-year period. And that's really coming from higher operating margin, an upside in the restructuring numbers, Nourdine has indicated to you. And that's where that EUR 300 million is really landing in the cash flow view. So to conclude. In full year '26, we expect to be back to growth and our core revenue, we expect to grow 0% to 2% up to full year '24 and will grow thereafter. On operating margin, we want to get back to industry standards. So we're guiding that we will get there by full year '26. And on free cash flow, we expect to be at EUR 250 million plus by full year '26. And finally, my very last point, we have a plan to execute and we have the culture, we have the leadership team, we have everyone behind it to do it. Thank you for your time. I will hand over to Nourdine for closing remarks.

Thank you, Darren. So before wrapping up and going to the Q&A, maybe again, few messages that we wanted to lend today with you. First, tech foundation has a bright future. I'm not sure whoever [ tells a ] different story, but tech foundation has a bright future. We are mission-critical for our customers. We are delivering those infrastructure, critical services for our customer. And you have seen through the various presentation that without that, nobody is there to operate the digital backbone of our economies. So we'll be there for long, and we are going to transform along the way of the market. . Second, we have clear, granular, unprecedented plan to get us back to the industry benchmark in terms of profitability. And then after that, in terms of cash. So we are clear, and the entire organization is mobilized, especially all the frontline leaders to make it happen. And we see it in the traction, and we see it with the entire leadership team. Third, you saw some of them on stage. You saw some of them in the room. But in fact, it's the entire 52,000 employees that are committed to our story, committed to our recovery and believing in what we are building together moving forward. And I want to make that clear because a lot of people are asking, how did you reacted so fast? How did you manage that so far? It started only with connection to the people being more authentic, being more direct, putting in place the feedback loop. It seems a little bit cheesy, but I could swear you that was not the culture that was Atos before. And by putting that in place, we have been able to embark the entire team with us. And that's I think the main lever. And then the fourth message is based on all of that, we decided to come back today in front of you to upgrade our ambition, upgrade our guidance because we do believe that now we have the foundation and we have also the mitigation to secure that midterm guidance that we shared with you. So where are we heading? Again, we want to be that engineering team, which is orchestrating, operating the digital backbone of our customer. And it is across that entire continuum, that entire cloud continuum from the public cloud to the edge but including also the devices like Leon presented, including also the end user. And by doing all of that, injecting into the current portfolio, the GenAI impact to provide and starting -- providing services GenAI activated to our customer. That's really our vision, ambition and that's how we want to reposition our portfolio in the next 3 years. But again, coming back to the previous point, you cannot do that without the right talent strategy. So yes, we are going through a turnaround period. Yes, we are going to reduce our headcount by '24, 75%, I think, in the overall envelope that we mentioned. But at the same time, we are building up the next wave. We are just in our pyramid to be ready after '26 to rebound altogether. We will keep that leadership in sustainability, improving diversity and inclusion, which is really important and part of our value and part of what we want to drive a step for good DNA at Atos. And then again, several have been saying that the business is dying or is dead. I see only resiliency, especially in the current context, and I see only opportunity for rebound. But now we get back to the why, why are we doing all of that? We presented a plan which bring us until '26. The life will not stop there. We do believe there's even more value creation for our shareholders, for all our stakeholders beyond '26. So as you have seen, we are shifting our portfolio to move more and more to platformization. This is what we believe that's coming next. And this is what we need to get ready with. And again, all those disruptive megatrends that are impacting our portfolio and the market will help us move into it. And then we are the larger managed services provider in Europe. We have earned our right to win deals in Europe. We are extending that even globally. But why not when we have the platform ready, believe in even more options, more options for us to aggregate into the platform, the future of that portfolio services in tech foundation. So that's really what we wanted to share with you today. And at the end, before going now to the Q&A I think this is a new model that we are launching today. We did not put too much emphasis into it, but we are going to that. The entire team wants to focus and help our customer, society to advance what matter. Obviously, we need first to fix and clean our own house, and this is what we are doing. And everybody is 200% committed to do it. But what we are believing in is really continuing progressing the world and advancing what matter the world with our services. And with that, thank you. Thank you for being here. [Presentation]

Okay. So now we could -- create maybe some space from some questions, and then we will try to handle that with the team.

Okay. Great. I had a couple of questions. So first, maybe Nourdine for you. You talked about sort of the 0% to 2% rate and acceleration thereafter. But you said that your kind of outlook is also based on a kind of higher TAM, and I think you said the market was growing 3% to 5%. When we look at the business, obviously, this is obviously excluding the noncore activities. What is the reasoning behind why you would still sort of undergrow your TAM? What else is there kind of to fix? Is it simply execution? The go-to-market? Or any critical categories that you're absent in? The second question is around sort of pricing. You talked about sort of AI and the benefits, but obviously, the deflationary aspect of that. But also the doubling of the headcount in offshore. So just curious to understand what sort of price deflation you have sort of baked into the sort of outlook? And then lastly, as you look at the kind of the portfolio and as you look at sort of the noncore, which seems to be dragging, is there any scope for further sort of disposals or acceleration of the portfolio mix down the line? I know you've got a lot on your plate right now.

Thank you. Thank you. More than a question as usual. So maybe let me start with the organic growth of the core business. I think, again, we are living a lot of uncertainty and changes in this. What the team and I have been trying to give to you here is we want to under commit and over deliver, in some area, yes? So there is a level of consciousness in what is going in front of us in the next 2 years. So what could be the headwinds towards that? It could be that the development of the hybrid [ multi-cloud ] offering is taking longer and the hyperscaler side or the hyperscaler partnership is not working as well as we want it. That could be one side. The other side could be that the revenue retention is not good enough, and we need to increase it and we need to extend it, and that could be some accident, especially when you provide and you work in those large segment, large contracts. So I would say that's the downside. But the entire world of upside like we mentioned, is in front of us. Could we be more bolder? Yes. I don't think it needs now because the first thing from '23 to '26, the message I'm sending to the team is, for now, stabilizing the top line is good enough because we need to fix cash and margin. So I'm not saying that it's not a culture of end. I think I remember someone saying that. It's end, end, end, no issue. But I think stabilizing the top line and being much more selective, and that's what we decided with Clay, be much more selective on what's coming in and making sure that those contracts are not becoming read over 6 months, is more important than achieving 3% or 4% growth in the current situation. You want to complement, Clay on that one?

I think the other thing is that our sales maturity model and the commercial that we talked about, it's not fully there yet, right? So I think the other thing is you wouldn't expect us to perform as strongly in sales of some of our competition, given against the market. I mean certainly, by the time we end in the out years, I think we'll be there. But you just -- it's a cumulative effect of revenue contract base. So we're definitely making big progress, but we're not where we need to be. And so I think you just have to extend that out a couple of years and then I think you probably see us in the same number.

And maybe now tackling your third question around that nonstrategic revenue and how we want to tackle it. So it's the past -- thing. I don't think there is any thinking around it. The one piece which is inside it is the BPO business, which is much in U.K. with the British government. Here, there are some contracts that we may be open to. We need to look with Darren and the team, how we will proceed, but it may be an event [indiscernible]. Here, I will share it with Darren. Here are two aspects. I think what I shared with you on the screen is, I see all the junior analyst role being swapped out, especially first in some of the low-cost countries. So here, we need to anticipate how are we managing that pyramid. You know the story in the industry, a lot of graduates and then you let the musical share effect happening as they grow. Here, we need to understand, and this is the assessment that we are doing with the team. We need to understand how we need to adjust our graduate hiring and how do we make sure that we are getting the right level of scale faster into that mid-pyramid, which will be the game for us. But personally, I believe this is only the first wave of impact of GenAI in the pyramid. I believe it will go even further. So we are still anticipating and thinking with the team, how we need to receive that. As I mentioned, any upside of that is not yet in the plan. There is an upside in terms of processes, but not yet fully in the plan. And in fact, there is a topic about inflation here.

And so in respect to the price deflation issue, the best answer I can give you for that is that our plan was a bit bottoms up. So every account, all the top 100 accounts, they took all the initiatives, including offshoring, into their projections as they gave us their revenue and their cost numbers. So it's already factored into the numbers that we have.

Fred Boulan, Bank of America. A couple of questions. Firstly, on Generative AI, so you talked about some of the opportunities. Maybe you can flag some of the risks on the potential digital workplace or BPO. Second, if you could give us an update on the free cash flow side. So you said it's EUR 300 million better than you presented at the time. But if you can share with us what you currently expect cumulative free cash flow between '23 and '26, where we are on the restructuring costs? I think the envelope was EUR 400 million? Initially, are we still there? And then thirdly, if you can give us any comments on what we're seeing in the press around Atos Group negotiating with some partner potentially selling tech foundation. Would you be willing to considering disclosing the asset for free, while leaving some liabilities and some cash balance in the unit? So any comment on that would be welcome.

So maybe let me start with the last one. So first, I would not comment too much on the rumors here because unfortunately, I have been living a Netflix story since I took my job so rumors every week, I will be spending my time commenting all of them. But to answer a little bit to your question, tech foundation is back. I think I mentioned it a few months ago. We have a plan. We're executing on that plan. We are ahead of that plan. So me and the entire leadership team, we believe the enterprise value of tech foundation is a positive one, and we are able to create even more value for our shareholders moving forward. So now all mark of interest are obviously addressed by our Chairman and the Board of Directors, and they will be on time communicating if anything needs to be communicated. Then coming back to GenAI, maybe a little bit more softer. Coming back on GenAI. I think it will disrupt. It will disrupt first, I think, initially all our internal processes. All our internal processes, I mentioned the example of proposal writing, which we are automating and I will give the floor to some of the business line. Each of them are piloting from GenAI adaptation to their own processes. But it will be disrupting -- the pyramid, which we think we will need to include in our plan moving forward. But right now, I cannot come out. It's only a few months. We are part of a better test with Microsoft on the copilot -- Office 365. We are also working with [indiscernible]. So there are several nuggets of AI initiatives going on that we need to aggregate. But the rendezvous I give to all my leaders is by the exit of the summer, beginning of the fall, we need now to have a more industrialized way to go there. So for now, the approach that we decided is to let popping up those initiatives everywhere and making sure we remove them. Coming back to your point about the risk, I think there's clearly some risk to GenAI . I think safetiness and security, those are linked to it. That's why what we did with our CTO deal behind you, we launched our guiding principle of operating those GenAI pilots, making sure that the data, the data set is not floating around making sure that we are leveraging the right platform, and we are not taking any sensitive data and putting it on those platform without our approval. So we have a few platforms that we have validated, certified, which the team could naturally go and test their use case. So we don't slow down the innovation. But maybe a little bit more comment, Leon, on it?

So from a digital workplace perspective, it's something I've been thinking about since it all became the rage a few months ago, but we have been using AI for several years. But if I think about my organization, I think two things that come to mind in this space. One is, clearly, I have the highest attrition rate in the organization because I hire the most junior staff. What GenAI allows me to do is actually hire those people and then move them into more fulfilling roles, so actually reducing my attrition in the organization. I think secondly, if you recall on my slide, I spoke around 50% of this DWP market, addressable market is not outsourced. So if you think about that 50% and you think about all those clients who are thinking about GenAI, actually, it may push them to an outsourcing model, which actually may play into our favor and help us from a revenue perspective and actually improving our business moving forward. So -- and I think the third thing is around margin. I actually think it would be margin appreciative for us rather than depreciative because a lot of our contracts are built in such a way where the resource unit structure as they pay for a service rather than a ticket. So there are three positives in my mind with GenAI.

So on the free cash flow. I can't, of course, give you guidance on '23, '24, whatever. The group hasn't issued any guidance for '23. But what I can tell you, just in the way that you think about this, particularly in terms of the restructuring. As Nourdine says, our plan -- our execution plan is to get to around 70% of the restructuring done by the end of 2024, okay? So there will be a lot of the cash outlay related to that. However, there is a lag effect in the cash, okay, because we can book the P&L adjustment for restructuring, but there's a lag effect in the cash. So the way to think about it is the 70% of the restructuring P&L taken and then there's a lag effect in the cash. So the early part of the plan, as we've been open about is that we will have negative free cash flow, and then we will move back to positive in full year '25 and beyond.

It's Laurent Daure from Kepler Cheuvreux. So I have three questions. The first is on the -- to start on the free cash flow side. Could you give us a bit more granularity on the provision that had been booked and that we will release with cash outflow? If we could have the amount as of today and the way they will be split in the years to come. My second question is for you, Nourdine, is you have not touched a lot on competition. When you try to lift the prices, do you have competitors like [indiscernible] that's trying to do the same because you have profitability issues? And my last question is more global is when I look at the cash between the litigation, where I hope the final fine will be massively lower than the EUR 570 million, the free cash flow delta of EUR 300 million, the restructuring cash, which is like EUR 100 million less, in total, this is a very significant amount. So do you still need to sell 30% of Evidian and dilute your shareholder?

Thank you, Laurent. Well, let's start maybe with the last one. So today, I really wanted that event to be a tech foundation event. I'm sure we'll have plenty of room to talk about the group. So on that question, we'll take time. We'll need Nathalie, Diane and the team to have an answer with you on that one. So I will not answer the third one. . You want to take the second one, and then I come back to the competition?

So I can't divulge specifically how much we've taken on those account impairments in the balance sheet so far, not specifically for TF proportion at least anyway. But within the cash flow, I think you can see within the size of the graph, right, that it's quite a significant outlay. Now they're spread over the coming 4 years and what you see towards the full year '26 is we still have a significant outlay. But of course, every impairment depends on the contract life. It depends on the commitment to the vendors. So it's very variable. So I'm afraid I can't be too more specific than that.

And maybe on the competition, Clay, you want to take it?

It's an industry problem. I mean let's start there, right? So the competition are all out there looking at the same things we are typically. But I think you need to break it down versus the labor-based T&M type of activities, particularly in TS versus managed services, and it's a bit of a different scenario. So companies that are particularly labor-sensitive around T&M honestly, typically, they have more of that protection built into their contracts in terms of being able to increase the prices like we do in terms of T&S. However, what we found is that going back even in the cases where contractually we don't have an obligation and they don't -- we didn't even have a right, they, going back and having the conversation about what's happening with our industry in terms of energy prices, in particular, and some of the other infrastructure inflation issues that we've had very good success in terms of increasing those prices. It tends not to be a competition point to be honest, because it's mostly on your installed base on your infrastructure. On new deals, it is a bit different again. So on new deals, we've all got a set of assumptions around what's happening with inflation and all of us are pushing hard on having COLA into our new contracts, and the customers are now understanding and receptive of that. So you kind of have to break it down into existing base and two portions and future business. And truthfully, I think we're probably all in a fairly similar status, but we've made real progress in the last year.

I think we had a question there.

Laura from Morgan Stanley. I have three questions, please. The first one, I just wanted to get back to the hybrid multi-cloud, which is a new area for Atos. Could you give us more details on the momentum you're seeing there? How many clients you have? How quickly you expect to accelerate revenue there? Any more details would be great. The second question is on digital workplace. I think you mentioned you have to manage some headwinds in the next few years in the presentation. I don't think I got all of them. So if you don't mind repeating that, that would be great. And then the last one is, you obviously guiding to a 10% reduction in expected transformation cost. Is that expected to be spread out until 2026? Or is it expected to benefit 1 year in particular?

Thank you. But let's start with Laurent.

Today, more or less, we are addressing a base of 800 customers. So we are somewhere going through the entire list of customers and engaging with them on the conversation of move to cloud. I think the plan is to get, by end of Q1 next year, around 17 to 20 customers that have been migrated to the cloud already. So that's the order of magnitude. It's not including the new deals because for sure, we are in parallel, working with new potential customers. And I would say, in quite each and every deal today, a new deal of hybrid cloud and infrastructure, you have a hybrid cloud component. So on one hand, all the new deals we will sign in the coming years. And at least short term, in the 9 months to go around 20 customers that we would migrate to the cloud.

So I think the question to -- so there was three factors that we baked into the pricing. So firstly, is the year-over-year price reductions that are in our existing contracts. The second was around the macroeconomics, which is a little more challenging to work out. And then thirdly was around the known renewals, and we factored our current renewal rate. And those are the three core factors and how we looked at the growth going forward with those negative headwinds.

Okay. And to answer the question on restructuring, we're keeping to the same phasing. So last year, we were still planning to do most of our restructuring around 70% in the early years. We're still keeping to that structure. So it's spread more than anything.

This is Nicolas David from ODDO BHF. I have three question from my side as well. Thank you for sharing some information regarding the impact of GenAI Generative AI. Could you also share what impact did you take into your margin improvement target? And is it completely new compared to June last year? Or did you already have some impact expected back then? Second topic is regarding, again, the hybrid cloud. I understand that you have hired the former CEO of CloudReach. That mean that you are going to address that directly and not partner with [ Evidian ] and CloudReach? And so a bit of explanation would be interesting. And maybe a question regarding that is, why not putting CloudReach inside DevCo in the first place? And my last question is, you mentioned that growing the hybrid cloud business will come with some CapEx. Could you share a target for midterm CapEx to sale ratio and as well compare it to what you had in '22 in terms of CapEx to sales?

Good. I think I will hand over quickly the first two one, then maybe distribute. But so as we said, I think GenAI will be a disruptive trend. We are testing it. We are seeing some use cases internally, but also with our customers. We have several projects. We could mention them. But my -- my point is because of the framework, because of the regulation, because all of that, I don't want us to take yet a decision before the year-end on how we are disseminating that. So I think I mentioned it during the presentation, GenAI impact is not fully baked in or is not baked in into the current plan. The current plan was not to reduce job or displays or change the pyramid, thanks to GenAI. We are assessing. We are in that 12-month assessment. We are progressing pretty well. And I think once we will integrate that, we will come back in front of you and give you an update. Again, I'm picking up one example because that was the most internal one that is the most visible. So think about those 400 man days that you're spending in writing a big proposal. And now because you put in all your proposal into a proprietary data set and you put in those LLM model on top of it, we are able to reduce the time to deliver those proposals with the customer to 60, 70 man-days, which is pretty drastic. So think about how we could revolutionize the way we are doing presales in some area, obviously, keeping at the end, the most expert, the most customized, the most creative function, which was one would not be yet integrated by GenAI. You want to maybe just mention some customer projects maybe for you because I think people think about the internal application of GenAI, but let's think also about how we are delivering GenAI to our customer.

Take one?

yes. Yes.

So I think actually, the trust factor we have with the customer is really central to this, that really strong NPS score they're willing to dive into deep ocean at one level with us as long as we can provide the security. And security is really the challenge right now. But a real-life example with one of the utilities that we've worked with is we took their SCADA system, so it's data that does monitoring on their power network. And we downloaded that data, and then we flushed it through a generative AI, and we could simulate what was actually happening on the network without having the overall lapping monitoring system on top. So you could extend that. Now the challenge is the security, right? So you're never going to be able to do this now, but you could then extend that to say, well, now we can do a whole bunch of what-if scenarios and actually turn that into an operating system as you go forward. So that's just one example. But the thing we're all going to struggle with in many of those cases is the data that's used in proper operation, how do we provide the proper level of security. And it's not just us providing your traditional security, but whoever the underlying GenAI partner is then being able to provide that security. But that's just a real-life example, and it was a big eye-opener for the utility because all of a sudden, they realize there's a whole new way of thinking about monitoring and issue resolution than they had previously.

Thank you, Clay maybe a second topic on the CapEx. I will give a floor to Darren. But just to understand the shift in our CapEx. I think it was in one of the slide, but I did not insist on it. But as we are shifting the portfolio, we are shifting to also a low CapEx intensive market because the other labor-intensive, I will say, business line are taking more proportionally out of our business. And as we are shifting to public cloud, now the CapEx is not setting only on your side. It is also sitting on the hyperscaler side. So there is -- while Darren is cautious in the CapEx projection, we are expecting to shift and materialize our revenue and our CapEx in a much more lower intense CapEx world, yes? I'm not sure, Darren, if you want to add on it?

Indeed. As the question was as a proportion of [ HC&I ], our capital intensity, we're kind of moving from around 20% in full year '22 to around 18.5% by the end of the plan. But that's just against the [ HC&I ] revenue numbers, okay? So that's CapEx plus lease cost for assets, okay? So it's an asset number, not just a CapEx number.

Thank you. Yes?

[ Gerard ]. Four question, if I may. Sorry for that in advance. You said during the presentation that you have reduced by 100, the number of your data center, but why isn't this reduction visible in the number of data center that you have? I think you -- if I remember well, on my mind, you are still at 100 data center and it's a pretty stable number for years. That's my first question. The second question, you are betting a lot on your partnership with AWS. You made a lot of announcement of partnerships with Google years ago, one cloud years ago. So what has changed on that front? And my third question is about application modernization. Compared to your competitors, you've got some, let's say, competitor capable to offer both infrastructure modernization and application modernization, would not be the case of Atos TFCO in the setup that you have in mind. So do you think it's a structural advantage for you versus the one capable to do end-to-end offering on that side? And my last question, it's about -- sorry, digital workplace management. One of your U.S. competitor thought that it would be a good idea to dispose from that business because synergies with the rest are not so obvious, infrastructure management. Why don't you -- have you explored this optionality that could give you some way to finance your restructuring?

Thank you. A lot of questions indeed. So maybe on the data center, but this one, if you please start, Laurent, you will be in trouble. Laurent, please.

110 data centers in the past 10 years. But in parallel, through some acquisitions and some customers' contracts and so on, we also got some new data centers. So I think the rationalization of our data center footprint is a kind of endless game. We have now 91 data centers right now, and we plan to close another 10 to 15 before the end of the plan. So I think what -- much more than the number of data centers, what is important is the capacity of the data centers. So two consideration. Number one, 70% to 75% of our data centers are colocation right now because every time we can use colocation, that's something that we do. And number two, we are indeed reducing the capacity -- the total capacity of our data centers in terms of floor space, but also power that we can deliver to basically improve the utilization rate. And we have a plan to increase it, I would say, again, as part of the transformation. We have made, I would say, two major step forward. One was 1 year ago, we have completely reshaped the data center footprint in France, closing three major ones, [indiscernible]. And this year, we are finishing North America, where we are basically doing the same. We have closed three major ones, which are really big flagships. So overall, if you look at the capacity of our data center is really decreasing.

Maybe I will take the application topic. The reality of what we are seeing in the business, we have buy-in patterns which are different. I think everybody wants to mix it up and say, hey, if you do application, you do infra. What we see the reality is often application is being delivered differently. Even if it is the same RFP, you have different lot inside the RFP, which make you keep in, I will say, bet in and bid in on your strength. So I think the only -- the most tangible evidence of the fact that it doesn't work that way or, at least the way everybody would like to get in mind is, look, as soon as I have been able to go in front of a customer and telling them, this business is not dead. We're going to invest. Legacy is beautiful. I think I mentioned that. We heard that somewhere. The customer were happy. The customer wants an infrastructure managed services. They don't want someone who is doing everything, including bringing the coffee. They want us for what we know. And you know what, at the end of the day, you need to invest, and you need to invest in so much activities, so many activities. Our sweet spot for many, many years have been to operate the infrastructure. We are operating the infrastructure and now we need to move to engineering the infrastructure. Well, we could look, but our pipeline so far has never been so high over the last 3 years. So when the macro are deteriorating, what we are saying is the customers are looking even more for outsourcing and looking even more for managed services. And it's not application development. These are more cyclical, yes, if you take out the -- It's about delivering managed services across the entire environment. So coming back to your question. Look, Atos has never been really strong in application development. You know that from the past. We try to compensate that with Syntel. So Syntel was the first large platform, giving us a fantastic footprint in India and in the North American market, but we haven't been really a strong application player. That's why I think the rationale behind the split -- or the operational split was really to bring the right people, the right management system, the right incentive toward that buying pattern, that kind of market and dealing with the rest with a different team, different management system, which is now the application world, Philippe will be able to give you even more than me, but the application world is even shifting more drastically to the cloud and the GenAI impact into the application world will be even more disruptive than in the manager services. So I would say in a nutshell from my personal point of view, I don't think you need to mix. And you have seen my road map. I'm not trying to do application development later on. I think thinking about GenAI and integrating GenAI impact into our world. Like Laurent said, infrastructure is becoming coding as well. And I think if we could leverage those platforms to automatically self-correct, self-manage, self-operate with digital backbone, that's the future that we would like to see. But again, after '26, from now on until '26, we need to get back to industry benchmark. And I think your last point for you. [indiscernible] I missed EWP.

I think there was two elements to the question. One was the disposal of DWP. So hopefully, you don't have some bad news for me, given I've really come back a few months ago. No, I think if I look at DWP, there are -- as I put on the slide, there are two elements, there's the traditional stuff and there's the modern piece. We're obviously focusing on the modern piece because it's higher margin, higher revenue. In the future, is there some legacy things that we may look to do something with potentially, but I think our focus on the new modern digital workplaces where we're really trying to take the business, but I'll let you answer the wider question on that one.

And I think at least it's not my plan to sell maybe the most leading practice in the world or except if you have several billion, sorry, Leon. But if we have several billion, we could speak.

That was on partnerships.

The partnership. The same as AWS. Who wants to take that? Okay.

I can. So I was part of the previous activity. So I've lived it well. And we did see some benefit from some of those. There's no ifs and buts about it. I think the difference this time is we're not trying to -- we're not saying it's everybody's day job. We've got specific parts of the organization that are focused on it and we're very clear what we want to get out of it. So in terms of additional pipeline, additional opportunities, and it's particularly strategic in terms of the hyperscalers now because we're running to it with our customer base as well as the new logo base, rather than saying, Well, we're doing it, but really we want to stay and keep all that business. So it is a very fundamental shift in terms of the approach. But the proof is going to be in the pudding, but so far, so good with the pipeline that we have and with the customers that have committed to at least the pilot so far and with the target base that we have for next year. But we'll have to update you in the 6 months or a year's time to really show the real results.

But maybe coming back on Brooks and CloudReach, CLoudReach has 2 sides of a business, they had the managed services business and they had the entire migration to the cloud. The entire migration to the cloud is sitting with Evidian, which was the majority of it. But we believe there's an opportunity in the managed services around the hybrid cloud, and this is in that context that Brooks decided to join us.

Right guys, let's stop here and continue the discussions around lunch.

Good. Well, thank you again. Thank you for coming. Thank you.