Market Update

Press Release

Market update

Four financial restructuring proposals received as part of the current conciliation process

Agreement on a financial restructuring solution acceptable to financial creditors targeted for May 31, with final agreement to be reached by July 2024

€100 million interim financing agreement with bondholders signed; discussions progressing with banks and the French State on the remaining €350 million

Paris, France – May 6, 2024

Following the publication of the updated parameters of its financial restructuring framework on April 29, 2024, Atos SE confirms it received on May 3, 2024, four new money proposals from the following parties:

• A group of bondholders and banks of the Company’s banking group
• Bain Capital
• EP Equity Investment, controlled by Mr. Daniel Kretinsky in partnership with Attestor Limited
• Onepoint, controlled by Mr. David Layani in consortium with Butler Industries

These proposals will be posted today on Atos’ website and will be accessible through the following link Investors - Atos.

All the proposals were presented to the Board of Directors on May 5, 2024, which decided with management and in alignment with the Conciliator Ms. Hélène Bourbouloux, not to pursue discussions with Bain Capital, as the submitted offer does not meet the stated objectives of the Company to consider its full perimeter.

The Board of Directors reiterated its confidence in the Group’s management team to continue to coordinate discussions, under the aegis of the Conciliator and in coordination with the CIRI (Comité Interministériel de Restructucturation Industrielle), with an objective of reaching a financial restructuring agreement in the best corporate interest of the Company including its employees, clients, suppliers, creditors, shareholders, and other stakeholders, while maintaining an attractive business mix.

Atos will be working with its financial creditors to select by May 31, 2024 a financial restructuring solution that will be acceptable to them and consistent with the financial parameters of the Company and to reach a final financial restructuring agreement by July 2024. This solution will likely entail radical changes in the capital structure of the Company and significant new equity issuance that will result in a massive dilution of the existing shareholders of Atos SE, considering that the Company will negotiate with stakeholders the treatment of the existing shareholders in compliance with applicable laws.

In parallel, the Company is conducting discussions with the APE (Agence des participations de l’Etat) of the French State regarding its intent to acquire 100% of the Advanced Computing, Mission-Critical Systems and Cybersecurity Products activities of Atos SE’s BDS (Big Data & Security) business. The proposals received on May 3 are compatible with the non-binding letter of intent received from the French State.

Jean-Pierre Mustier, Atos SE’s Chairman of the Board of Directors, said: “I would like to thank each of the submitting parties for their refinancing proposals received as part of our current conciliation process. I am pleased to note that the key representatives of our bondholders and of our banking group are working together constructively to find a refinancing solution for Atos.”

Paul Saleh, Atos SE’s Chief Executive Officer, said: “We will now work with our financial creditors to find a solution by May 31 that will be acceptable to them and consistent with the parameters we have shared. I am confident that a final agreement can be reached by the July target that would assure the continuity of operations to our clients and be in the best interest of Atos’ employees, clients, suppliers, creditors, shareholders and other stakeholders.”

Update on the interim financing

Further to its press release dated April 9, 2024, in which Atos announced a €450 million interim financing agreed in-principle, the Company confirms that:

• The €100 million revolving credit and term loan facilities to be provided by a group of bondholders has been signed;
• On April 25, 2024, the French Ministry of Economy, Finance and Industrial and Digital Sovereignty (Ministère de l’Economie, des Finances et de la Souveraineté Industrielle et Numérique) has issued an order (arrêté) authorizing the €50 million loan from the State through the FDES (Fonds de Développement Economique et Social) to a subsidiary of Atos, Bull SAS, which controls sovereign sensitive activities. The Group’s financing banks have also granted the required waiver in relation to that loan;
• Discussions with the banks regarding the implementation of a €300 million factoring facility are progressing.
  
  

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About Atos

Atos is a global leader in digital transformation with c. 94,000 employees and annual revenue of c. € 11 billion. European number one in cybersecurity, cloud and high-performance computing, the Group provides tailored end-to-end solutions for all industries in 69 countries. A pioneer in decarbonization services and products, Atos is committed to a secure and decarbonized digital for its clients. Atos is a SE (Societas Europaea), and listed on Euronext Paris.

The purpose of Atos is to help design the future of the information space. Its expertise and services support the development of knowledge, education and research in a multicultural approach and contribute to the development of scientific and technological excellence. Across the world, the Group enables its customers and employees, and members of societies at large to live, work and develop sustainably, in a safe and secure information space.

Contacts

Investor relations : David Pierre-Kahn | investors@atos.net | +33 6 28 51 45 96

Individual shareholders : 0805 65 00 75

Press contact : globalprteam@atos.net

Attachment

• PR - Atos - Market Update - May 6 2024