Media Presentation November 8th, 2011

Yunano

Media Presentation

What do we announce today?

The alliance between

The Leading European

IT services company

company in China

The #1 Software

and



To jointly market cloud computing solutions

for corporate customers in Europe

Yunano

Media Presentation

To enter the cloud service market Atos

& UFIDA are forming a Joint Venture

▶

YUNANO

(transliteration “Cloud & Safe”) will provide innovative cloud

computing services for corporate customers in Europe, the Middle East and

Africa (EMEA)

▶

Will sell Software as a service (ERP, CRM,…) to Europe, Middle East and

Africa medium-size organizations, in particular subsidiaries of large groups, or

emerging country enterprises for which traditional ERPs are too expensive and

cumbersome

Yunano

Media Presentation

Why Cloud Computing is coming ?

All three conditions need to be filled in

order to speak about Cloud Computing

▶

A standardized service

▶

A pay-per-use service

▶

A self-service

Benefits:

▶

Cost savings

▶

OPEX vs CAPEX

Yunano

Media Presentation

Why SaaS is the most promising

service of Cloud Computing ?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2008

2009

2010

2011

(planned)

“What percentage of your software license spending will go

to the following types?”

Traditional Software

Licensing

Subscription & other

licensing models

Source: Enterprise And SMB Software Survey, North America And Europe, Q3 2007; Enterprise And SMB Software Survey, North America And Europe, Q4 2008; Enterprise And SMB Software Survey, North America And Europe, Q4 2009; and Forrsights Software Survey, Q4 2010

Yunano

Media Presentation

Agenda

▶

Who is UFIDA?

▶

Atos & UFIDA, overview of YUNANO

Yunano

Media Presentation

The Asia-Pacific leader in software

▶

The Asia Software leader

–

Largest local management software supplier in the Asia-Pacific,

–

Over 600.000 enterprises are using UFIDA products,

–

Over 50 thousands enterprise choose UFIDA products software every

year,

–

Over 3 million users are using UFIDA products every day.

▶

An impressive footprint

–

Headquartered in Beijing; listed on the Shanghai Stock Exchange

(SSE: 600588)

–

The largest enterprise management software R&D Center

in Beijing,

–

A Manufacturing Industry R&D Base in Nanjing,

–

An advanced Applications Research Center in Shanghai,

–

An Electronic Industry R&D Campus in ShenZhen,

–

The largest service network in China's management software industry

for support service, implementation, and training,

–

200 subsidiaries and branches, 60 customer service centers, 150

training and education,

Yunano

Media Presentation

A World-Class management

software and services provider

1988

Founded in 1988, 23 years of

_development

1991

2002

2005

Largest local accounting software provider in China

Largest ERP and management software provider in China

Largest ERP and management software local provider in APAC

Now

Total employees : 12,000

To become World-Class management

software and services provider

Yunano

Media Presentation

UFIDA’s market position in China

Leader in Management Software

Rank #1 for 9 consecutive years.

Exceed the sum of Second and Third.

UFIDA 22.8%

Kingdee 9.8%

SAP 9.8%

Yunano

Media Presentation

UFIDA’s #1 market position in

China

Leader in ERP Software

UFIDA 28.3%

Kingdee 12.0% SAP 13.5%

Yunano

Media Presentation

UFIDA’s #1 market position in

China

Data Source：CCID 2009-2010 Annual Market Research Data

Leader in Financial Software

Rank # 1 for 19 consecutive years

UFIDA 27.5% Kingdee 15.4%

Yunano

Media Presentation

UFIDA’s #1 market position in

China

The largest Group Management Software Provider

The largest HRM（Human Resources Management)

Software Provider

The largest CRM（Customer Relationship

Management) Software Provider

The largest Small-enterprise Management Software

Provider

Yunano

Media Presentation

Yunano

Media Presentation

UFIDA: 1,2M+ Corporate

Customers

Discrete

Manufacturing

Distribution

Service

Real Estate &

Construction

F S I

Telecom

Military &

_Energy

Conglomerate

_{& Authorities}

Government

Process

Manufacturing

Yunano

Media Presentation

Agenda

▶

Who is UFIDA ?

▶

Atos & UFIDA, overview of YUNANO

Yunano Media Presentation

Business

Enabling

IT

Services

Foundation

IT

Services

Market segment Customers expectations Atos’ Answers

• Core Business innovation

• Competitive

differentiation

• Top Line Growth and

profitability

• TCO Decrease

• Flexibility

• IT Standardization

• HTTS Development

• Specialized BU for specific

sub-Markets (Worldline,

Worldgrid, MEV, …)

• Vertical portfolio Expertise

and Go-To-Market

• Industrialization

• Off-shore & Global

delivery

• Cloud : AtoSphere

• One stop-shop for global

customers

Yunano

Media Presentation

UFIDA Alliance fits into Atos Strategy

▶

Be the world leader

in Critical IT services

IT services to support customers’ top line growth for their:

 Competitive positioning  Time to Market

 Innovation

Atos answers:

 Industry expertise  HTTS portfolio roll out

 Key Offerings, Atos WorldGrid  ISRM, Civil & National Security

BUS

INES

S

CRIT

ICA

L

IT

▶

Be n°1 in our home

market (size

matters)

▶

Be the European

leader in Cloud

IT services for support systems delivering:

Lower TCO’s Standardization Pay as you Go Agility & Reliability

Atos answers:

Global factories, Global tooling Offshore ramp up,

Atos Sphere

FUNDA

M

ENT

AL

IT

Yunano

Media Presentation

An alliance to extend Atos geographical

footprint

74.000

employees

(most of them

engineers)

8.7 B €

revenues

(pro-forma 2010)

Yunano

Media Presentation

YUNANO: Business Objectives

▶

Cover CRM/ERP product lines

▶

Target SaaS mode as priority

▶

Address medium and subsidiaries of large organizations from the targeted

industries

▶

Reach top quartile profitability in the ERP market

▶

Create a first class eco-system of distributors and integrators in the targeted

geographies

▶

Accelerate localization and customization of UFIDA products in EMEA

The JV addresses in priority the ERP SaaS market for

medium-size organizations, in particular subsidiaries of large groups, or

emerging country enterprises for which traditional ERPs are too

Yunano

Media Presentation

YUNANO: Business Model

JV

Sales & Marketing

Professional Services

Localization

SaaS Operations

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

SaaS

Yunano

Media Presentation

YUNANO: Value Proposition

▶

YUNANO solution benefit: run your entire business with a single, cloud-based application

–

Integrated system

–

Available by subscription and on-demand

–

Scalable, cost-effective, and burden-free

–

Thoroughly tested to ensure continuous, secure, and reliable service delivery

YUNANO

Software Company

Appendix

Atos, the Atos logo, Atos Consulting, Atos Worldline, Atos Sphere, Atos Cloud and Atos WorldGrid

are registered trademarks of Atos SA. June 2011

© 2011 Atos. Confidential information owned by Atos, to be used by the recipient only. This document, or any part of it, may not be reproduced, copied, circulated and/or distributed nor quoted without prior written approval from Atos.

Yunano

Media Presentation

Which service offering does Cloud

Computing cover?

▶ Business Process as a Service (BPaaS)

– Next level of Cloud collaboration: not only IT based services – HTTS – High Tech Transaction Services

▶ Software as a Service (SaaS)

– A configured application licensed for use on demand by an Application Service Provider

– Accessed remotely over the Internet or downloaded to device, disabling it after license expiry

▶ Platform as a Service (PaaS)

– Services to support the web applications development lifecycle – Virtual servers, storage, team collaboration, web services

integration, database integration, security and software development facilities

▶ Infrastructure as a Service (IaaS)

– Storage, network and server capacity, and infrastructure applications accessed remotely over the Internet

– Billed by usage

– Virtual server usually provided from different physical servers Middleware & Integration

Applications Data

Presentation & API

Hardware Facilities

Connectivity & Delivery Abstraction

Operating Sistem & API Business Process Layer

IaaS

PaaS

SaaS

BaaS

Securi

ty

Consul

ti

ng

Yunano

Media Presentation

Overview of the Enterprise

Application Software market

Market

2010 (millions

_{of USD)}

Estimated AGR

_2009-2014

Enterprise Ressource Planning (ERP)

20,872

4.0%

Office Suites

13,348

5.7%

Customer Relationship Management (CRM)

9,642

6.5%

Supply Chain Management (SCM)

6,610

6.2%

Enterprise Content Management (ECM)

3,908

12.0%

E-Mail & Calendering

3,500

9.4%

Digital Content Creation

3,173

9.0%

Web Conferencing & Team Collaboration

2,554

15.5%

Yunano

Media Presentation

The European Mid-size ERP market

is growing fast…

Key findings

ERP European Mid-size market (On Premises + SaaS) currently worth €2.42 billion with CAGR of 7% (greater growth than large enterprise market), and revenue type breakdown for ERP software vendor as follows:

– Maintenance (50%) – Licenses (26%)

Yunano

Media Presentation

… and will be strongly influenced

by SaaS

Key findings

▶ SaaS currently represents only 3% of ERP market with adoption expected to accelerate sharply in 2012 with CAGR of 90% for SaaS vs 1% for On Premises