Market Update
Press Release
Market Update
Atos confirms FY 2023 revenue and operating margin
results in line with guidance
- Revenue: €10,693m, up +0.4%
organicallyEviden up +2.9% organicallyTech Foundations down -1.7%
organically
- Operating margin of 4.4% (€467m),
up +170 bps organicallyWith year-on-year improvements in both
Eviden and Tech Foundations
2023 H2 Free Cash Flow of €-109m
- FY 2023 Free cash flow of €-1,078m,
reflecting lower working capital actions and higher reorganization
costs
Net debt position of €2,230 million at year-end
2023
- Bank covenants met
- Gross debt of €4,654m
- Cash, cash equivalent &
short-term financial assets of €2,423m
FY 2023 earnings release rescheduled for March 20th to
complete audit of non-cash goodwill impairment charge
- External auditors, Deloitte and
Grant Thornton awaiting review of independent business report to
complete audit of non-cash goodwill impairment
Discussions with EPEI on potential sale of Tech
Foundations have concluded with no deal reached
- Proposed new deal terms and pricing
could not be mutually agreed upon
- No indemnification by either
party
- Each party released from any
reciprocal obligations except for confidentiality
- Atos to operate Tech Foundations and
Eviden as separate businesses with a coordinated go-to-market
strategy
- Atos to continue to consider
strategic options that are in best interest of its customers,
employees, and shareholders
Paris, February 28, 2024
Atos reports today that it has met its full year
guidance for revenue and operating margin and that its free cash
flow for the second semester was €-109 million.
Comparison with 2023 guidance for revenue and
operating margin by business as well as free cash flow is presented
in the table below:
|
|
2022 Organic growth % |
|
2023 (€ million) |
|
2023 Organic growth % |
|
Guidance2023 |
Group revenue |
|
0.1% |
|
10,693 |
|
0.4% |
|
0.0% to 2.0% |
Eviden revenue |
|
2.0% |
|
5,089 |
|
2.9% |
|
Acceleration vs. 2022 |
Tech Foundations revenue |
|
-1.6% |
|
5,604 |
|
-1.7% |
|
Managed decrease |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 OM% |
|
2023 (€ million) |
|
2023 OM% |
|
Guidance2023 |
Group operating margin |
|
3.1% |
|
467 |
|
4.4% |
|
4% to 5% |
Eviden operating margin |
|
5.2% |
|
294 |
|
5.8% |
|
Improvement vs. 2022 |
Tech Foundations operating margin |
|
1.3% |
|
172 |
|
3.1% |
|
Positive territory |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 (€ million) |
|
2023 (€ million) |
|
Guidance compliance |
|
Guidance2023 |
Free cash flow |
|
-187 |
|
-1,078 |
|
|
|
c. €-1,000 |
Net debt and debt covenant
In addition, the Company reports that its net
debt was €2,230 million at year-end 2023 and consisted of:
- Cash, cash equivalent and
short-term financial assets of €2,423 million
- Borrowings of €4,654 million
The Group remained within its borrowing covenant
applicable to its banks financing, with a leverage ratio (net debt
divided by pre-IFRS 16 OMDA) of 3.34 times at the end of December
2023 compared with the bank covenant of 3.75x.
Non-cash goodwill
impairment
Full annual goodwill impairment test is
performed at year end, in compliance with IAS 36 and in the context
of the contemplated disposals of assets. Fair values are determined
based on a multicriteria approach, including Discounted Cash Flows
(“DCF”) and trading multiples, consistent with the methodology
applied previously.
Group external auditors Deloitte and Grant
Thornton are awaiting an independent business review report to
complete their audit of the company’s non-cash goodwill impairment
results.
Reschedule of the earnings
publication
The Company is rescheduling its full earnings
release to March 20th, 2024, as Atos Group auditors Deloitte and
Grant Thornton have not completed their audit work on the goodwill
impairment.
End of exclusive negotiations with EPEI
for the sale of Tech Foundations
The company indicates that in the context of its
exclusive negotiations with EP Equity Investment (“EPEI”) for the
potential sale of Tech Foundations announced on August 1, 2023, the
parties have not reached a mutually satisfactory agreement. The
discussions and the put agreement have therefore been terminated by
mutual consent, with no indemnification on either side and the
parties are released from any future reciprocal obligation subject
to maintaining the confidentiality agreements. Atos will continue
to run Tech Foundations and Eviden as separate businesses and
leverage the strengths of their respective offerings with a
coordinated go-to-market strategy. Atos will continue to consider
strategic options that are in the best interest of its customers,
employees and shareholders.
Management conference call
Management invites you to an international conference call on
Wednesday, February 28 2024 at 08:00 am (CET –
Paris).
You can join the webcast of the conference:
- via the following link:
https://edge.media-server.com/mmc/p/chprpvb2
- by telephone
with the dial-in, 10 minutes prior the starting time. Please note
that if you want to join the webcast by telephone, you must
register in advance of the conference using the following
link:
https://register.vevent.com/register/BI78a1dc5b26674cac9b424698c2f24fe2
Upon registration, you will be provided with
Participant Dial In Numbers, a Direct Event Passcode and a unique
Registrant ID. Call reminders will also be sent via email the day
prior to the event.
During the 10 minutes prior to the beginning of
the call, you will need to use the conference access information
provided in the email received upon registration.
After the conference, a replay of the webcast will be available
on atos.net, in the Investors section.
***
Contacts
Investor
relations |
David
Pierre-Kahninvestors@atos.net+33 6 28 51 45 96 |
Individual
shareholders |
0805 65 00 75 |
Press
contact |
globalprteam@atos.net |
FY 2023 Revenue and operating margin at constant scope
and exchange rates reconciliation
For the analysis of the Group’s performance,
revenue and OM for 2023 is compared with 2022 revenue and OM at
constant scope and foreign exchange rates. Reconciliation between
the 2022 reported revenue and OM, and the 2023 revenue and OM at
constant scope and foreign exchange rates is presented below, by
Business Lines and Regional Business Units.
In 2023, revenue was negatively impacted by €62
million as a consequence of the Group review of its accounting of
some software resales following the IFRIC IC decision illustrated
by the decision published by ESMA in October 2023 that enacted a
restrictive position on the assessment of Principal vs. agent under
IFRS 15 for the resale of third-party software licenses. This
impact affected Eviden in the Americas RBU. It had no impact on the
operating margin. Revenue for the 12 months period ended December
31, 2022 was restated accordingly by €-71 million.
FY 2022 revenue in € million |
FY 2022 published |
Restatement |
FY 2022 restated |
Internal transfers |
Scope effects |
Exchange rates effect on acquired / disposed
perimeter |
Exchange rates effects |
FY 2022* |
Eviden |
5315 |
-71 |
5244 |
-4 |
-220 |
2 |
-80 |
4943 |
Tech
Foundations |
6026 |
|
6026 |
4 |
-222 |
2 |
-106 |
5703 |
Total |
11341 |
-71 |
11270 |
0 |
-442 |
4 |
-186 |
10646 |
|
|
|
|
|
|
|
|
|
FY 2022 Operating margin in € million |
FY 2022 published |
Restatement |
FY 2022 restated |
Internal transfers |
Scope effects |
Exchange rates effect on acquired / disposed
perimeter |
Exchange rates effects |
FY 2022* |
Eviden |
276 |
0 |
276 |
-2 |
-32 |
0 |
-10 |
233 |
Tech
Foundations |
79 |
|
79 |
3 |
-22 |
0 |
-5 |
56 |
Others &
Global Structures |
0 |
|
0 |
-2 |
1 |
|
0 |
0 |
Total |
356 |
0 |
356 |
0 |
-53 |
1 |
-15 |
289 |
|
|
|
|
|
|
|
|
|
* : At constant scope and foreign exchange rates
Scope effects on revenue amounted to €-438
million. They mainly related to the divesture of Atos satellite
ground testing business and Russia in 2022, and in 2023 to the
divestures of Italy in Southern Europe, of Unified Communications
and Collaboration Services across all regions, of EcoAct in
Americas, Southern Europe and Northern Europe & Asia-Pacific,
of State Street in Americas, and of Elexo in Southern Europe.
Currency effects negatively contributed to
revenue for €- 186 million. They mostly came from the depreciation
of the American dollar, the British pound, the Argentinian peso,
and the Turkish lira.
Internal transfers adjustments reflected split
of Processia perimeter from Americas to Northern Europe &
Asia-Pacific and to Southern Europe.
***
About Atos
Atos is a global leader in digital
transformation with 95,000 employees and annual revenue of c. €11
billion. European number one in cybersecurity, cloud and
high-performance computing, the Group provides tailored end-to-end
solutions for all industries in 69 countries. A pioneer in
decarbonization services and products, Atos is committed to a
secure and decarbonized digital for its clients Atos is a SE
(Societas Europaea), listed on Euronext Paris.
The purpose of Atos is to help design the future
of the information space. Its expertise and services support the
development of knowledge, education and research in a multicultural
approach and contribute to the development of scientific and
technological excellence. Across the world, the Group enables its
customers and employees, and members of societies at large to live,
work and develop sustainably, in a safe and secure information
space.
Disclaimer
This document contains forward-looking
statements that involve risks and uncertainties, including
references, concerning the Group's expected growth and
profitability in the future which may significantly impact the
expected performance indicated in the forward-looking statements.
These risks and uncertainties are linked to factors out of the
control of the Company and not precisely estimated, such as market
conditions or competitor's behaviors. Any forward-looking
statements made in this document are statements about Atos’s
beliefs and expectations and should be evaluated as such.
Forward-looking statements include statements that may relate to
Atos’s plans, objectives, strategies, goals, future events, future
revenues or synergies, or performance, and other information that
is not historical information. Actual events or results may differ
from those described in this document due to a number of risks and
uncertainties that are described within the 2022 Universal
Registration Document filed with the Autorité des Marchés
Financiers (AMF) on April 21st, 2023 under the registration number
D.23-0321. Atos does not undertake, and specifically disclaims, any
obligation or responsibility to update or amend any of the
information above except as otherwise required by law. This
document does not contain or constitute an offer of Atos’s shares
for sale or an invitation or inducement to invest in Atos’s shares
in France, the United States of America or any other
jurisdiction.
This document includes information on specific
transactions that shall be considered as projects only. In
particular, any decision relating to the information or projects
mentioned in this document and their terms and conditions will only
be made after the ongoing in-depth analysis considering tax, legal,
operational, finance, HR and all other relevant aspects have been
completed and will be subject to general market conditions and
other customary conditions, including governance bodies and
shareholders’ approval as well as appropriate processes with the
relevant employee representative bodies in accordance with
applicable laws.
Revenue organic growth is presented at constant
scope and exchange rates.
- PR-Atos-Market update-28-February-2024
Atos (EU:ATO)
過去 株価チャート
から 4 2024 まで 5 2024
Atos (EU:ATO)
過去 株価チャート
から 5 2023 まで 5 2024