Atos - Registration Document 2016

E Financial

E.3

Financial review

renewed for 5 years on June 18 th , 2013 with a maximum amount of receivables sold of € 500.0 million and a maximum amount of Atos securitization program of trade receivables has been financing of € 200.0 million. and OFF: The program is structured with two compartments, called ON compartment “ON” is similar to the previous program (i.e. the • receivables are maintained in the Group balance sheet) which remains by default the compartment in which the receivables are sold. This compartment was used at its lower level; compartment “OFF” is designed so the credit risk (insolvency • and overdue) of the debtors eligible to this compartment of the program is fully transferred to the purchasing entity of a third party financial institution.

As of December 31, 2016, the Group has sold: in the compartment “ON” € 257.5 million receivables for which • € 9.8 million were received in cash. The sale is with recourse, thus re-consolidated in the balance sheet; qualify for de-recognition as substantially all risks and rewards associated with the receivables were transferred. in the compartment “OFF” € 41.5 million receivables which • Financial covenants of the Atos securitization program are the consolidated leverage ratio (net debt divided by Operating which may not be less than 4 times. (Operating Margin divided by the net cost of financial debt) Margin before Depreciation and Amortization) which may not be greater than 2.5 times and the consolidated interest cover ratio

Bank covenants E.3.3.2

position of the Group at the end of December 2016). The consolidated leverage ratio must not be greater than 2.5 times leverage ratio (net debt divided by OMDA) of -0.35 at the end of December 2016 (the ratio is negative due to the net cash under the terms of the multi-currency revolving credit facility. multi-currency revolving credit facility, with a consolidated The Group was well within its borrowing covenant for the

was 60.99 (Operating Margin divided by the net cost of financial debt which may not be less than 4 times). interest cover ratio which apply only to the Atos securitization program of trade receivables. The consolidated interest cover The Group was also well within the limit of the consolidated

E

Investment policy E.3.3.3

centers. Some fixed assets such as IT equipment and company cars may be financed through leases. The Group Treasury Atos has a policy to lease its office space and data processing

each new investment. department evaluates and approves the type of financing for

Hedging policy E.3.3.4 in interest rates by swapping to fixed rate a portion of the existing floating-rate financial debt. Authorized derivative Atos’ objective is also to protect the Group against fluctuations instruments used to hedge the debt are swap contracts, entered

into with leading financial institutions and centrally managed by

the Group Treasury department.

At the end of 2016, the Group did not have any interest hedging contract.

Atos | Registration Document 2016

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