Atos - Registration Document 2016

E Financial E.3

Financial review

The DPO reached 76 days compared to 75 days at the end of December 2015. implementation of financial arrangements on large customer contracts by 16 days compared to 13 days in December 2015. Cash out related to tax paid reached € 129.1 million and was € 23.6 million higher than last year. This increase was lower years. The cost of net debt reached € 18.1 million compared to € 17.4 million in 2015. This was mainly explained by: a lower cost of gross debt which was 1.60% compared to • 2.32% last year; to € 1,185.5 million in 2015). Such increase came mainly from a higher used portion of the syndicated loan by a higher average gross debt which increased by • € 828.6 million during the year (€ 2,014.1 million compared than the progression of the net income before tax, further to a continued decrease in the effective tax rate over the last few of € 300.0 million on September 29, 2016. placement of a seven-year Euro private placement bond issue € 371.4 million compared to 2015, the full yearly effect of the € 600.0 million bond compared to 2015 and the successful in order to significantly decrease the level of restructuring charges. included the cash out from the acceleration of the Bull reorganization. The Group started in H2 2015 a strong program integration and acquisition costs reached € 148.7 million, a sharp reduction compared to € 238.3 million in 2015 which Reorganization, rationalization and associated costs, and

in H1 of an old litigation in Germany. € 13.2 million in absence of specific program to reskill IT engineers unlike in the prior year, partially offset by a settlement Other changes amounted to €-40.4 million and decreased by As a result, the Group Free Cash Flow (FCF) generated during the year 2016 was € 579.1 million. disposals amounted to € 707.3 million and corresponded mainly to the acquisition of Unify, Anthelio and Paysquare. The net debt impact resulting from acquisitions net of Capital increase , mostly related to proceeds from equity based compensation, totaled € 28.5 million compared to € 58.1 million exercised. in 2015, mainly reflecting the lower number of stock options H1 € 35.6 million as the cash portion from Visa Inc. The remaining part compared to the total € 51.2 million proceeds As part of the sale of Visa Europe share, the Group received in relates to preferred shares and a long-term (3-year) receivable from Visa Inc. As per the resolution approved by the shareholders during the Annual General Meeting held on May 26 th , 2016, the Group paid € 113.5 million of dividend distributed). in cash a dividend of € 47.3 million to its shareholders (out of debt or cash exposure by country had no impact (€-0.2 million) on the net cash position of the Group, in spite of the numerous Foreign exchange rate fluctuation which is determined on currency fluctuations over 2016 and thanks to a tight and daily monitoring of the treasuries across the Group.

Financing policy

E.3.3

Directors. Under this policy, all Group treasury activities, including cash management, short-term investments, hedging optimize the Group’s liquidity management. Each decision regarding external financing is approved by the Board of Atos has implemented a strict financing policy which is reviewed by the Group Audit Committee, with the objective to secure and

term cash investment in risky assets. short term financial policy, the Group did not make any short through the Group Treasury department. Following a cautious and foreign exchange transactions, as well as off-balance sheet financing through operating leases, are centrally managed

Financing structure

E.3.3.1

the Group to finance its operations and expected developments. financial instruments. Terms and conditions of these loans include maturity and covenants leaving sufficient flexibility for by long-term committed loans or other appropriate long-term Atos’ policy is to fully cover its expected liquidity requirements bond of € 300.0 million with a seven-year maturity and with a 1.444% fixed interest rate. Atos and the bonds are unrated. On September 29, 2016, Atos issued a Euro private placement There are no financial covenants. 5-year maturity. The coupon rate is 2.375%. Atos and the bonds are unrated. There are no financial covenants. On July 2, 2015 Atos issued a bond of € 600.0 million with a

and the second option of extension for one year has been exercised in 2016. Therefore the new maturity of the the extension of the Facility maturity date until November 2021. The first option of extension for one year was exercised in 2015 existing € 1.2 billion facility signed in April 2011. € 1.8 billion credit facility is November 2021. The facility is available for general corporate purposes and replaced the financial institutions a five-year € 1.8 billion credit facility maturing in November 2019 with an option for Atos to request On November 6, 2014, Atos signed with a number of major The revolving credit facility includes one financial covenant which under the terms is the consolidated leverage ratio (net debt divided by Operating Margin before Depreciation and Amortization) which may not be greater than 2.5 times.

Trusted partner for your Digital Journey

140