Today’s value in Paris – Atos operating in the stock market – 14/06/2022 at 11:25

(AOF) – After a fall yesterday, the Atos share fell again by 18.83% to 15.26 euros, accusing the clearly largest fall in the SBF 120 index. The title of the technology group thus fell back to its lowest level since the second quarter of 2009 Atos is investigating a possible transfer to two listed companies and has announced the departure of its CEO, Rodolphe Belmer, who first arrived in January. In recent days, the press had mentioned strategic disagreements between the former head of Eutelsat and the board.

According to Les Echos, the board would have rejected its plan to bring the BDS (cybersecurity) department to the stock market.

The presentation of the new strategy after an eerie year 2021 should restore investor confidence …

Atos is considering a split into two listed companies “to unleash its potential for value creation and implement an ambitious transformation plan”.

The first device, called SpinCo (Evidian) would be a leading player in the markets for digital transformation, big data and cybersecurity. These activities generated a turnover of 4.9 billion euros in 2021 with an organic growth of 5% and an operating margin of 7.8%.

The group’s new strategy includes an acceleration plan for SpinCo, representing an investment of 0.4 billion euros over the next five years.

It should enable it to achieve an organic growth of around 7% on average in the period 2022-2026 (based on expected revenue of 5.3 billion euros in 2022), in order to gradually improve its operating margin to reach 12% in 2026 and generate 700 million euros of free cash flow before interest and tax.

The activities gathered in Evidian have attracted greed for several months, especially from Thales and Airbus.

The other unit, TFCo (Atos) will specialize in outsourcing services, digital workspaces (Digital Workplace) and professional services. The cost of the plan, which is to achieve its full recovery by 2026, amounts to 1.1 billion euros. Its setback is the cause of Atos’ setback; Outsourcing services have suffered the bulk of the acceleration of the transition to the cloud during the pandemic.

TFCo generated revenue of 5.4 billion euros in 2021 (excluding Unified Communications & Collaboration, UCC), a decrease of 12% organic and an operating margin of -1.1%.

TCFo’s revenue is expected to reach around € 5 billion by 2022 (excluding UCC). As the proposed recovery plan is rolled out, revenue is expected to bottom out at around € 4.1 billion in 2024, before stabilizing in 2025 and returning to a growth path from 2026. The operating margin should be positive again in 2025 and exceed 5% in 2026.

The proposed project involves a prior reorganization that will be completed in the second half of 2023, before the listing and distribution of SpinCo shares before the end of 2023. 70% of SpinCo will be distributed to shareholders and the remainder will be monetized to refinance part of TCo’s turnaround costs. Atos also plans to sell 700 million euros of assets by 2023, most of which belong to TFCo. The group said it had already received expressions of interest for these assets.

The separation project leads to the founding of the Atos group, which results in a significant reduction in the scope of functions and a redefinition of the mission of Atos’ CEO. It took note of Rodolphe Belmer and announced its resignation, which will take effect no later than 30 September.

In the wake of these announcements, Atos has appointed Nourdine Bihmane and Philippe Oliva as Deputy Directors. The first will also lead TFCo and the second, SpinCo.


Key points

– International leader in digital transformation established in 1997, European leader in cloud, cybersecurity and supercomputers;

– € 10.8 billion activity, divided into 3 divisions – infrastructure and data management for 54% of sales, business and platform solutions for 34% and big data and cybersecurity for 10%;

– Geographical balance between revenue: 23% of sales in North America, 25% in Northern Europe, 23% in Central Europe and 22% in Southern Europe;

– Sustainable digital transformation business model;

– Open capital (9.96% for Siemens Pension Fund and 2.2% for employees), Bertrand Meunier as Chairman of the Board of 13 members, Rodolphe Belmer as CEO;

– Solid balance with a debt / equity ratio of 28% and a leverage of 1.9, which is why management excludes any capital increase.


– New strategy: refocus on digitization, decarbonisation, security and the cloud, which should contribute to 65% of medium-term revenue / recovery in Germany / towards the sale of on-site infrastructure and traditional data center activities, ie. 1/5. of income;

– Innovation strategy developed in 18 R & D centers with a portfolio of 3,000 patents: open innovation through partnerships with university centers (quantum computers, exascale computers, artificial intelligence, HPC, multicultural leadership, etc.), with alliances with other actors (AWS, Dell, Google, Huma, Microsoft, OVHCloud, Sparkle, etc.) and with customers / 2 scientific communities of expert collaborators in the group / Scaler program for collaboration with 50 start-ups;

– Environmental strategy supported by Digital Transformation Factory, Hybrid Cloud, “Business Accelerators” solutions, “Connected Intelligence” and “Digital Workplace” and aims to meet 3 major challenges: CO2 neutrality from 2028 and halving emissions by 2025 vs 2021 / sale of decarbonisation solutions, enhanced by the acquisition of EcoAct / investment in hydrogen supercomputers and quantum technologies / launch of the 1st “green” loan;

– Strengthening security with the acquisition of the British company Cloudreach and the opening of a sovereign security center in Bulgaria;

Visibility of the activity with an order book corresponding to 2.1 years of turnover.


– Slowing down order intake and reducing the duration of new contracts;

– Russia-Ukraine war: low impact on income (0.4%) but high on labor, services previously provided by Russia have been transferred to India and Turkey;

– Expected rapid recovery after the loss in 2021 based on rumors of takeover bids from Airbus, Orange, etc. and the listing of BDA and security activities;

– After a start to the year marked by a fall in sales, the 2022 target was confirmed, with revenues ranging from +0.5 to + 1.5%, an operating margin of 3 to 5% and free cash flow between + € 150m. and € 200 million.

The talent war has been further intensified by the announcement of Facebook, which intends to make 10,000 hires within five years in Europe. The lack of human resources is not limited to France or Europe: it is global. Thus, 1.2 million computer engineers are expected to be missing by 2026 in the United States. In France, according to Numeum, the association of the digital sector, there is a shortage of about 10,000 computer engineers out of a total of 600,000 people employed by software publishers and digital service companies (SSII). If the phenomenon is not new, it is amplified. This is reinforced both by the hiring of certain companies looking for developers to internalize their significant digital projects, and by the strong ambitions of certain start-ups.

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