Atos, the largest increase in SBF 120 at the close of Monday, September 19, 2022- – 09/19/2022 at 6:03 pm.

(AOF) –

rookie

(+ 4.99% to 8.67 euros)

The digital transformation specialist Atos, which had a very difficult year, losing almost 80% of its value since January 1, recovered by finishing at the top of the SBF 120 index.

AOF – LEARN MORE

Main points

– International leader in digital transformation created in 1997, European leader in cloud, cybersecurity and supercomputers;

– Activity of €10.8 billion, divided into 3 divisions: infrastructure, outsourcing and private cloud for 55% of sales, digital, IoT and cloud solutions for 32% and big data & cybersecurity for 13%;

– Geographical balance of revenues: 23% of sales in North America, 25% in Northern Europe, 23% in Central Europe and 22% in Southern Europe;

– Value maximization business model through restructuring and the division, at the end of 2023, of the group into 2 separate entities – Atos for outsourcing and Evidian for digital and security;

– Open capital (9.96% for the Siemens pension fund and 2.2% for employees), Bertrand Meunier who heads the 13-member board of directors, Nourdine Bihmane who has been managing director since July;

– Controlled financial situation with €3.5 billion in gross cash and €2.3 billion in credit facilities at the end of June, covering needs of approximately €1.8 billion for restructuring (including €1.1 billion for in the future TFCo) therefore the management of any capital will not be included increase but the debt rating of € 1.8 billion at the end of June, lowered by S&P.

Challenges

– Strategy aimed at the end of 2023 to split the group into 2 companies, TFCo (Atos) for outsourcing (infrastructure) and connected work environment and Evidian for digital transformation, big data and security: TFCo (Atos): turnaround financed to the tune of € 1.1 billion aiming at an operating margin of 6%, a return to revenue growth and free cash flow of € 150 million in 2026 / Evidian: portfolio repositioning and strengthening in leading positions with high margins through a €400m plan to accelerate its growth to 7% per year until 2026, with an operating margin of 12% and free cash flow of €700m/end in 2023, distribution to Atos shareholders of 100% of TFCo shares and 70% of Evidian, which will then be listed on Euronext Paris in early 2023;

– Innovation strategy developed in 18 R&D centers with a portfolio of 3,000 patents: open innovation through collaboration with university centers (quantum computing, exascale calculators, artificial intelligence, HPC, multicultural leadership, etc.) , with alliances with other players (AWS, Dell). , Google, Huma, Microsoft, OVHCloud, Sparkle, etc.) and with customers / 2 scientific communities of expert collaborators in the group / Scaler collaboration program with + 50 start-ups;

– Environmental strategy supported by the Digital Transformation Factory, the Hybrid Cloud, the “Business Accelerators” solutions, the “Connected Intelligence” and the “Digital Workplace”: carbon neutrality in 2028 and the halving of emissions in 2025 vs 2021 / sales of decarbonization solutions, strengthened by the acquisition of EcoAct / Investments in hydrogen supercomputers and quantum technologies / launch of 1

er

“green” loans;

– Strengthening the security of British Cloudreach and the sovereign security center of Bulgaria;

– Continued contract wins, order to drink 1

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semester equivalent to a year’s income.

Challenges

– After strong revenues and a widening of the net loss of 1

er

semester, 2022 goal, confirmed, of strong revenues and an operating margin of +3%.

Maximum staff turnover

Companies in the IT services sector have seen the departure of more than 20% of their workforce in twelve months. This trend is not unique to the sector, but it has reached an unprecedented scale, in a context of strong growth and good recruitment dynamics. In addition, employees have new needs and aspirations. The main criterion is the flexibility of work and the way it is implemented in the company. American-Indian company Cognizant saw nearly 35% of its 330,000 engineers leave the company in one year. Capgemini, which groups 32,000 employees in France, recently suffered its first strike since 2008, with the need for a collective wage increase.

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