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E
Financial
E.4
Consolidated financial statements
Atos
|
Registration Document 2016
191
E
Interest rate risk
accounting.
using interest rates swap contracts with financial institutions in
order to fix the rate of a portion of the floating-rate financial
debt. The fair value of the financial instruments used to hedge
the floating-rate financial qualifies for cash flow hedge
Bank loans of € 580.0 million in 2016 and in 2015 are arranged
at floating rates, thus exposing the Group to cash flow interest
rate risk. The Group may mitigate its interest rate exposure
Exposure to interest rate risk
The table below presents the interest rate risk exposure of the
€ 4.8 million assuming the structure (cash/floating debt/hedges)
remains stable for the full period of the year.
Group based on future debt commitments. The exposure at
floating rate after hedging risk management is approximately
€ 481.4 million as at December 31, 2016. A 1% rise in 1-month
Euribor would impact positively the financial expense by
(In € million)
Notes
Exposure
Total
Less than 1 year
More than 1 year
Bank loans
Note 22
-
-580.0
-580.0
Securitization
Note 22
-9.8
-
-9.8
Other
-29.0
-0.2
-29.2
Total liabilities
-38.8
-580.2
-619.0
Cash and cash equivalents
Note 18
2,121.7
-
2,121.7
Overdrafts
-78.8
-
-78.8
Total net cash and cash equivalents (*)
2,042.9
-
2,042.9
Net position before risk management
2,004.1
-580.2
1,423.9
Hedging instruments
-
-
0.0
Net position after risk management
2,004.1
-580.2
1,423.9
Bonds
Note 22
-
-900.0
-900.0
Finance Leases
Note 22
-22.6
-19.9
-42.5
Hedging instruments
-
-
0.0
Total net debt/cash after risk management
481.4
Overnight deposits (deposit certificate) and money market securities and overdrafts.
*
Liquidity risk
On September 29, 2016, Atos issued a Euro private placement
bond of € 300.0 million with a 7-year maturity and with a
1.444% fixed interest rate. Atos and the bonds are unrated.
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
On November 6, 2014, Atos signed with a number of major
financial institutions a five-year € 1.8 billion credit facility
maturing in November 2019 with an option for Atos to request
the extension of the Facility maturity date until November 2021.
The first option of extension for one year was exercised in 2015
and the second option of extension for one year has been
exercised in 2016. Therefore the new maturity of the
€ 1.8 billion credit facility is November 2021.
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.
The revolving credit facility includes one financial covenant which
Atos securitization program of trade receivables has been
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
financing of € 200.0 million.
The program is structured with two compartments, called ON
and OFF:
remains by default the compartment in which the receivables
are sold. This compartment was used at its lower level;
compartment “ON” is similar to the previous program (i.e. the
•
receivables are maintained in the Group balance sheet) which
the program is fully transferred to the purchasing entity of a
third party financial institution.
compartment “OFF” is designed so the credit risk (insolvency
•
and overdue) of the debtors eligible to this compartment of