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E
Financial
E.4
Consolidated financial statements
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Earnings per share
number of ordinary shares outstanding during the period.
Treasury shares deducted from consolidated equity are not taken
into account in the calculation of basic or diluted earnings per
share.
Basic earnings per share is calculated by dividing the net income
(attributable to owners of the parent) by the weighted average
and convertible debt).
weighted average number of ordinary shares outstanding during
the period, plus the average number of shares which, according
to the share buyback method, would have been outstanding had
all the issued dilutive instruments been converted (stock options
financial cost net of tax of dilutive debt instruments, by the
Diluted earnings per share is calculated by dividing the net
income attributable to owners of the parent, adjusted for the
average price of Atos shares over the period.
The dilutive impact of each convertible instrument is determined
in order to maximize the dilution of basic earnings per share.
The dilutive impact of stock options is assessed based on the
Related party transactions
Related party transactions include in particular transactions with:
including members of the Board of Directors, Supervisory
Board and Management Board, as well as the Executive Senior
Vice-Presidents;
persons or a close member of that person’s family if that
•
person is a key member of Group management, defined as
persons who have the authority and responsibility for
planning, directing and controlling the activities of the Group,
entities, if one of the following conditions apply:
•
the entity is a member of the Group,
•
the entity is a joint venture in which the Group is
•
participating,
of employees of the Group,
the entity is a post-employment benefit plan for the benefit
•
the entity is controlled or jointly controlled by a person
•
belonging to the key management.
Financial riskmanagement
E.4.7.3
risk. Financial risk management is carried out by the Group
Treasury department and involves minimizing potential adverse
effects on the Group’s financial performance.
The Group’s activities expose it to a variety of financial risks
including liquidity risk, interest rate risk, credit risk and currency
Liquidity risk
and marketable securities and the availability of funding through
an adequate amount of committed credit facilities.
Liquidity risk management involves maintaining sufficient cash
the Group to finance its operations and expected developments.
Atos’ policy is to cover in full its expected liquidity requirements
by long-term committed loans or other appropriate long-term
financial instruments. Terms and conditions of these loans
include maturity and covenants leaving sufficient flexibility for
Credit facilities are subject to financial covenants that are
carefully followed by the Group Treasury department.
Note 22.
An analysis of the maturity of financial liabilities is disclosed in
Interest rate risk
of exposure to interest rate risk encompasses two types:
Interest rate risk arises mainly on borrowings. The management
expenses as reported in the consolidated income statement
and, as such, future net income of the Group up to maturity of
these assets.
fall. A change in interest rates would impact the market value
of fixed-rate financial assets and liabilities. However, this loss
of opportunity would not impact financial income and
a price risk on fixed-rate financial assets and liabilities. For
•
example, by contracting a fixed-rate liability, the Group is
exposed to potential opportunity losses should interest rates
interest rates increase.
a risk on floating-rate financial assets and liabilities should
•
contracts entered with leading financial institutions.
rate a portion of the floating-rate financial debt. Authorized
derivative instruments used to hedge the debt are swap
The main objective of managing overall interest rate risk on the
Group’s debt is to minimize the cost of debt and to protect the
Group against fluctuations in interest rates by swapping to fixed
Credit risk
throughout the life cycle of a project. Derivative counterparties
and cash transactions are limited to high-credit quality financial
institutions.
The Group has no significant concentrations of credit risk. The
client selection process and related credit risk analysis is fully
integrated within the global risk assessment project conducted
Currency risk
fluctuations in exchange rate since a significant portion of the
business takes place within the Eurozone and costs and
The Group’s financial performance is not materially influenced by
revenues are generally denominated in the same currency.
foreign currency swaps.
currency of the relevant entity. According to this policy, any
material exposure must be hedged as soon as it occurs. In order
to hedge its foreign exchange rate exposure, the Group uses a
variety of financial instruments, mainly forward contracts and
The Group has established a policy for managing foreign
exchange positions resulting from commercial and financial
transactions denominated in currencies different from the local