Full Year 2024 Atos SE Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Frederic Boulan - BofA GLobal Research - Analyst : Hey, good morning, Philippe and Jacques-Frantois. Thanks for the presentation. Couple of questions from me. First of all, in Q4, if you can give us any sense of when you look at the operating performance of Eviden and Tech Foundations, what was the impact of kind of contract termination within those -- within the kind of organic revenue decline? Specifically, you point out some HPC delivery in Denmark and Germany, would be great here if you could also give a bit of quantification around the positive impact around those. And then more broadly, when we look at the trajectory in the next couple of years, I mean, the pre-restructuring, REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 05, 2025 / 7:00AM, ATOS.PA - Full Year 2024 Atos SE Earnings Call you had this kind of very useful flow chart to kind of paint the picture of where you plan to be in the medium term in terms of leverage, cash flow, et cetera. So I understand you will give us all that detail on May 14, but it would be interesting to understand at least for '25, any thoughts you have around free cash flow, any specific elements you want to call out. I mean you mentioned margin should probably not worsen further, but anything else you can say in terms of where we're trending versus the previous plan? And what you've presented to debt holders versus the kind of current leverage target. I think you had a target of EUR1.7 billion pro forma debt at 2027. So any kind of color you can give on that would be great. Thank you.

Question: Frederic Boulan - BofA GLobal Research - Analyst : Anything you can share around the impact of HPC?

Question: Frederic Boulan - BofA GLobal Research - Analyst : Yeah, you said in Denmark and Germany, you had some large delivery that helped in the quarter. So that's great, but it would be interesting to understand any -- what's the kind of scope of those wins. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 05, 2025 / 7:00AM, ATOS.PA - Full Year 2024 Atos SE Earnings Call

Question: Frederic Boulan - BofA GLobal Research - Analyst : Okay, thank you.

Question: Laurent Daure - Kepler Cheuvreux - Analyst : Yes, good morning, Philippe, Jacques-Frantois. I have two questions. The first is on the contract termination. Could we have an idea of the impact it could have on 2025 versus the revenues you generated in 2024 to have the full year impact, would be useful. And I was also wondering within the large customer in the next two years, do you see additional risk of losing further business? Or do you think the situation has now stabilized? And my second question is for you, Philippe, more precisely, you've been in the group now for a few months. what's going to be your main challenge in the next two to three years compared to your initial expectations? Thank you.

Question: Laurent Daure - Kepler Cheuvreux - Analyst : (multiple speakers)

Question: Laurent Daure - Kepler Cheuvreux - Analyst : On the client side, I mean you still have Siemens, I guess, as your largest clients. I'm just wondering if you -- what happened in the last couple of quarters may have an impact when you have to renew some pieces of the contract?

Question: Laurent Daure - Kepler Cheuvreux - Analyst : Okay, great. Thank you.

Question: Adam Megyeri - BofA Global Research - Analyst : Good morning and thanks for taking my question. I wanted to ask if you could give some comparison on the one-off items in the free cash flow compared to what was guided in the safeguard plan. I mean if I look at reorganizational and one-offs, it seems like add up to EUR757 million compared to around the EUR600 million figure in the business plan. Is there any timing difference here? Do you expect the kind of total numbers for the year to stay the same as what was previously guided? Or any comments would be helpful as to how these numbers compared to the previous plan?

Question: Adam Megyeri - BofA Global Research - Analyst : Yeah, that's great. Thank you very much. And then line more question, if I could, please. Just on the Eviden Q4 book-to-bill, 111%. You mentioned some of these are multiyear contracts. Is there any chance you can give some guidance as to what the average contract length is in that Q4

Question: Adam Megyeri - BofA Global Research - Analyst : So within the Eviden number -- even within the Eviden number, excluding Tech Foundation, there will be several multiyear contracts?

Question: Adam Megyeri - BofA Global Research - Analyst : And then when you calculate this book-to-bill ratio, is that all just on an annualized booking number? Or how do you then compare it to revenues in the quarter?

Question: Adam Megyeri - BofA Global Research - Analyst : Okay, great, perfect, that's it from my side. Thank you.