Atos S.A., Q1 2013 Earnings Call, Apr 25, 2013

Atos S.A. reported group earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported revenue of EUR EUR 2,117 million representing an organic evolution of minus 1.2% year-on-year, fully in line with its anticipation and basically, close to stable if taken into consideration the lesser working day. The group has invested a capital expenditure for EUR 84 million in the first quarter compared to EUR 70 million in the first quarter of 2012. The group cash position at the end of March was at EUR 258 million, after a free cash flow of EUR 30 million, which is consistent with the objective of the full year. Excluding exchange rates translation differences, free cash flow amounted to EUR 30 million compared to EUR 33 million in the first quarter last year. The company provided earnings guidance for the year 2013. For the year, the group expects revenue to continue to slightly grow organically compared to 2012. For operating margin, the company confirms its objective to be around 7.5% of revenue. For the free cash flow the objective is to be above EUR 350 million. The Group confirms its ambitions for an EPS (adjusted, non-diluted) representing an increase of 50% compared to 2011 statutory (up 25% compared to 2012).

Atos S.A. (ENXTPA:ATO) has received interest from potential partners for the electronic- payments unit it’s planning to split off by midyear 2013. A share of the payments unit could be sold to one or more partners, Senior Executive Vice President Gilles Grapinet said. “Our announcement about the carve-out has generated a great deal of strategic interest from players in the payments world,” Grapinet said. “We’re busy finalizing the carve-out, that’s our priority. Our finance and mergers and acquisitions teams are evaluating scenarios.” The company intends to keep majority of the unit once it has been split off, he said. Grapinet declined to say if Atos has started discussions with any of the potential partners. The company has been approached by bankers about options, he said. Shares of Atos rose 2.2 % to €53.13 at 9:19 a.m. on Euronext Paris.