(Boursier.com) — On the occasion of the publication of its 2022 annual accounts, Atos was expected by the financial community on its transformation plan.
“We are starting 2023 with confidence. Just eight months after announcing our separation project, we have made significant progress towards its realization. This separation, which will mark a turning point in the Group’s history, will allow us to unleash the full potential of two future entities and will maximize the creation of value for all of our stakeholders.Despite an uncertain macroeconomic context, there are many opportunities available to us and we are confident in our ability to continue improving our performance throughout throughout 2023. We have laid the foundations for the renewal of Atos today and, tomorrow, for the success of the Evidian and Tech Foundations perimeters”, indicated the Atos management team.
Major progress in the separation project
In June 2022, Atos announced its intention to split into two listed companies, leaders in their respective markets, in order to create value and implement an ambitious transformation project. Since this announcement, in 8 months, the group has made significant progress and is on track to be in a position to decide on this separation in order to complete it in the second half of 2023.
Started on September 7, 2022, the Atos European Works Council information and consultation process was completed in 3 months, with good collaboration. It is a major step in the Group’s transformation project. At the same time, local consultation processes were carried out in the 31 countries where they were required. So, Atos is now in a position to complete its separation into two listed entities (subject to final confirmation by its Board of Directors, the approval of its shareholders, and other customary conditions), and to accelerate the implementation of its transformation plan.
All the internal work sites of the separation project are underway and progressing according to plan.
In 2022, Evidian has defined a clear roadmap aimed at increasing synergies between its core business activities in digital, cloud, big data and security, as well as leveraging its unique combination of cutting-edge services and technologies on the entire digital continuum. This roadmap will allow Evidian to position itself as a provider of high value-added services and solutions for a clientele increasingly concerned about issues of sovereignty and security.
In parallel, Evidian has accelerated the development of its ‘offshore’ and ‘nearshore’ centers in order to strengthen its execution capacity.
Turnaround Tech Foundations
Tech Foundations is making progress on its goals and strategy. In 2022, the service line mobilized the teams around a turnaround project, and began to rebuild a robust commercial pipeline.
At the same time, Tech Foundations has repositioned its portfolio to be an essential partner for digital services and infrastructure modernization, benefiting from its strengths in the private and hybrid cloud, the “employee experience” and its innovative offers. focused on reducing the carbon footprint related to IT.
A series of actions have been put in place to reduce underperforming contracts and associated losses, particularly in BPO, to gradually withdraw from hardware and software resale activities, and to divest the UCC business. Significant cost reduction measures were implemented and delivered first tangible results in the second half, allowing Tech Foundations 2022 operating margin to turn positive, three years ahead of plan.
A 700 ME disposal program, nearly 80% secured
On June 14, 2022, Atos announced a program of disposals of non-strategic activities for an amount of approximately €700 million in expected proceeds, as part of the financing of its transformation project. After only eight months, the Group has already secured nearly 80% of this envelope, demonstrating its ability to execute quickly and efficiently.
To date, the transactions finalized or secured include the disposal of Atos’ 2.5% stake in Worldline on the market in June 2022, and the signatures of the disposals, under advantageous conditions for the Group, of Atos Italia in November 2022, and the Unified Communications & Collaboration activity in January 2023.
These two transactions, which are still subject to consultation with the relevant employee representative bodies and other customary regulatory approvals, are expected to be finalized in the first and second half of 2023 respectively.
Non-exclusive discussions with Airbus on the disposal of a minority stake in Evidian
On February 16, 2023, Atos announced that it had received a non-binding indicative offer from Airbus to enter into a long-term strategic and technological agreement and acquire a 29.9% minority stake in Evidian. “This offer is consistent with Atos’ separation plan as announced,” said Atos.
Its Atos Board of Directors has therefore decided to continue discussions with Airbus in order to conduct a due diligence process and to negotiate mutually satisfactory conditions both for the long-term strategic and technological agreement and for the sale of the 29.9% stake in Evidian.
Discussions are ongoing on a non-exclusive basis. No certainty can be provided as to the outcome of the negotiations and the conclusion of a set of definitive agreements between the parties..
Atos confirms its commitment to examine expressions of interest received from partners able to support a major financial and industrial project.
Outlook for 2023
The digital transformation, cybersecurity and big data markets are expected to maintain solid growth momentum despite a more difficult macroeconomic environment.
In 2023, Evidian will endeavor to deploy its new value proposition and its offers, maximizing synergies and capitalizing on a business model common to all of its areas of expertise. At the same time, Evidian will continue to strengthen its commercial means and its execution capacity, in order to accelerate its profitable growth in 2023.
After a better than expected performance in 2022, Tech Foundations will continue the rapid implementation of its turnaround plan in 2023.
Paying particular attention to the selectivity and quality of contracts, Tech Foundations will strive to accelerate the rationalization of its portfolio, which should lead to a controlled reduction in its revenue from non-strategic activities, while core activities of profession will be stabilized. At the same time, Tech Foundations will intensify its efforts to adapt its cost structure, which will help to offset the effects of lower revenues, investments in commercial capacities and offers, as well as inflationary pressures.