(AOF) – Sycomore AM will request the departure of the Chairman of the Board of Directors of Atos, Bernard Meunier during the Combined General Meeting on June 28, stressing that the group is facing a major governance crisis. Asked by AOF, a spokesperson for the specialist in business transformation indicates that the “group acknowledges receipt of the filing of Sycomore’s resolutions”, with whom “the dialogue has been constant and its approach constructive, as with all of its shareholders”.
The asset manager, who owns just over 936,000 Atos shares, judges that Bernard Meunier, who has been a member of the Board of Directors for more than 15 years, bears “a significant share of responsibility in this crisis”. He recalls that three general management teams have joined in three years and considers the group’s balance sheet to be disastrous from all points of view.
Sycomore AM underlines the “loss of market confidence in the company, reflected by its share price (-81% between the end of December 2019 and the end of May 2023), which in turn raises fears of a loss of confidence among the company’s customers” .
In total, the asset manager unveiled 4 draft resolutions, including, in addition to the departure of Bernard Meunier, that of 2 directors, Aminata Niane and Vernon Sankey. He considers that they are no longer independent because they have been members of the Board for more than 13 and 14 years.
Lastly, Sycomore AM wants the role of lead director assigned to an independent director to be reinstated.
For Atos, these proposed resolutions “are not new and no alternative has been submitted to replace the directors concerned”. “They were therefore unanimously rejected (by the Board of Directors, editor’s note), including by the directors representing the employees” indicated the spokesperson.
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Key points
– International leader in digital transformation, high performance computing and infrastructures related to information technologies, created in 1997, European leader in cloud, cybersecurity and supercomputers;
– Activity of €11.3 billion, divided into 2 divisions: Evidian – digital transformation, big data and security – for 47% of sales, and Tech Foundations for 53% – infrastructures and connected work environments;
– Value maximization business model via the division, at the end of 2023, of the group into 2 separate entities – Tech Fondations for outsourcing and Evidian for digital, cloud and security;
– Open capital (9.96% for the Siemens pension fund and 2.2% for employees), Bertrand Meunier chairing the 14-member board of directors, with Nourdine Bihmane as managing director, Philippe Oliva as deputy CEO and Diane Galbe Deputy CEO;
– Financial situation under control with €2.7 billion in credit facilities covering needs estimated at €1.8 billion for restructuring, hence the exclusion by management of any capital increase but debt up to €1.45 billion €, i.e. a leverage effect of 3.75%.
Challenges
– Strategy for the second half of 2023 to split the group into 2 companies, Tech Fondations:
– Tech Fondations: turnaround financed to the tune of €1.1 billion targeting an operating margin of 6% (1.3% of revenue in 2022), a return to revenue growth and free cash flow of €150 million in 2026,
– Evidian: repositioning of the portfolio and strengthening of leading positions with high margins via a €400m plan to accelerate its growth to 7% per year until 2026, with an operating margin of 12% and free cash flow of €700m €,
– end of 2023, distribution to Atos shareholders of 100% of the shares of Tech Fondations and 70% of those of Evidian which will then be listed on Euronext Paris;
– Innovation strategy developed in 18 R&D centers with a portfolio of 3,000 patents:
– open innovation via partnerships with university centers (quantum computing, exascale computers, artificial intelligence, HPC, multicultural leadership, etc.), with alliances with other players (AWS, Dell, Google, Huma, Microsoft, OVHCloud, Sparkle…) and with customers,
– 2 scientific communities of expert collaborators of the group,
– Scaler program of collaboration with + 50 start-ups;
– Environmental strategy of carbon neutrality in 2028 and halving of emissions by 2025 vs 2021,
– sales of decarbonization solutions, reinforced by the acquisition of EcoAct,
– investments in hydrogen supercomputers and quantum technologies,
– launch of the 1st “green” loan;
– Execution of the €800 million disposal plan and outcome of negotiations with Airbus for the sale of 29.9% of the capital of Evidian;
– Acceleration of Evidian’s profitable growth and return to profits for Tech Fondations, 3 years ahead of expectations.
Challenges
– Employee attrition rate of 21.6%;
– Confirmation of the commercial momentum at the end of 2022 – order intake on turnover at 90% and gain of 1.3% in revenue;
– 2023 objective of stable revenues and an operating margin of 4 to 5%.
– Abolition of the dividend for 2022.
Learn more about the IT / DSE sector (digital service companies)
Growth hampered by recruitment
According to a study for Numeum, the digital professional organization, 79% of companies in the sector consider that their growth is hampered by the shortage of talent in the face of demand driven by digital transformation. Digital services companies forecast 5% growth for 2022. Several levers are activated by companies to attract talent, in particular remuneration, while average salaries have generally increased in the IT sector. New work organisations, career development prospects and meaningful assignments are other assets. Capgemini has therefore adopted a new agreement offering up to 70% telework to all employees. These adaptations are essential as a report from the Department of Research, Studies and Statistics (Dares) and France Strategy establishes that IT professions will be among those who will recruit the most by 2030. .