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E
Financial
E.3
Financial review
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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.
than the progression of the net income before tax, further to a
continued decrease in the effective tax rate over the last few
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;
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
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
in order to significantly decrease the level of restructuring
charges.
Reorganization, rationalization and associated costs, and
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
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
exercised.
in 2015, mainly reflecting the lower number of stock options
Capital increase
, mostly related to proceeds from equity based
compensation, totaled € 28.5 million compared to € 58.1 million
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.
€ 113.5 million of dividend distributed).
in cash a
dividend
of € 47.3 million to its shareholders (out of
As per the resolution approved by the shareholders during the
Annual General Meeting held on May 26
th
, 2016, the Group paid
currency fluctuations over 2016 and thanks to a tight and daily
monitoring of the treasuries across the Group.
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
Financing policy
E.3.3
term cash investment in risky assets.
short term financial policy, the Group did not make any short
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
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
Atos has implemented a strict financing policy which is reviewed
by the Group Audit Committee, with the objective to secure and
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
divided by Operating Margin before Depreciation and
Amortization) which may not be greater than 2.5 times.
The revolving credit facility includes one financial covenant which
under the terms is the consolidated leverage ratio (net debt