Atos - Registration Document 2016

E Financial

E.3

Financial review

Cash Flow

E.3.2

The Group net cash position was € 481.4 million at the end of December 2016, compared to € 593.1 million at the end of December 2015.

Free cash flow representing the change in net cash or net debt, excluding dividends paid to shareholders, net material

acquisitions/disposals

and

equity

changes,

reached

€ 579.1 million versus € 393.4 million achieved in 2015.

12months ended December 31, 2015

December 31, 2016 12months ended

(in € million)

Operating Margin before Depreciation and Amortization (OMDA)

1,374.5

1,200.4

Capital expenditure

-421.1

-441.0

Change in working capital requirement

-38.0

48.8

Cash from operation (CFO)

915.5 -129.1

808.2 -105.5

Taxes paid

Net cost of financial debt paid

-18.1 -83.7 -43.1 -21.9 -40.4

-17.4

Reorganization in other operating income

-149.5

Rationalization & associated costs in other operating income

-46.7 -42.1 -53.6

Integration and acquisition costs

Other changes*

Free Cash Flow (FCF) Net (acquisitions)/disposals

579.1 -707.3

393.4 -859.8

Proceeds from the disposal of the Visa share

35.6 28.5

-

Capital increase/(decrease)

58.1

Dividends paid to owners of the parent

-47.3

-30.7

Change in net cash/(debt)

-111.4

-439.0

E

Opening net cash/(debt) Change in net cash/(debt)

593.1 -111,4

989.1 -439,0

Foreign exchange rate fluctuation on net cash/(debt)

-0.2

43.0

Closing net cash/(debt)

481.4

593.1

integration costs and acquisition costs), dividends paid to non-controlling interests and other financial items with cash impact, net long term financial investments excluding acquisitions and disposals, and profit sharing amounts payable transferred to debt. “Other changes” include other operating income with cash impact (excluding reorganization, rationalization and associated costs, *

a decrease in the capital expenditures (€+19.9 million); • compared to a working capital requirement reduction in 2015 of € 48.8 million. a working capital requirement increase by €-38 million • compared to 11.2% of revenue last year: OMDA of € 1,374.5 million represented 11.7% of revenue,

increased by € 107.3 million compared to prior year. This increase resulted from the change of the three following components: Cash from Operations (CFO) amounted € 915.5 million and operating margin and a strong reduction of the pensions one-offs accounted in operating margin; OMDA (€+174.1 million) mainly reflecting the increase in •

December 31, 2015* 12months ended

December 31, 2016 12months ended

(in € million)

Operating margin

1,103.9

917.0 405.6

+ Depreciation of fixed assets

399.1

+ Net book value of assets sold/written off +/- Net charge/(release) of pension provisions

34.0

41.4

-79.9 -82.6

-109.0

+/- Net charge/(release) of provisions

-54.6

OMDA 1,200.4 December 31, 2015 adjusted to reflect change in presentation disclosed in “Basis of Preparation and significant accounting policies”. * 1,374.5

continued to invest, especially in its payment platforms within Worldline and in its infrastructure business, while rationalizing Capital expenditures amounted to € 421.1 million or 3.6% of the revenue compared to € 441.0 million in 2015. The Group

and mutualizing these expenses, thanks in particular to the Cloud architectures. of December 2015. DSO has been positively impacted by the The working capital requirement increased by €-38.0 million. The DSO ratio reached 30 days compared to 32 days at the end

Atos | Registration Document 2016

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