“Atos Origin – 2003 Unaudited Preliminary Results”
- Revenue amounted to EUR 3,030 million
- Operating margin reached 8.2%
- Net debt reduced to EUR 270 million
Atos Origin will today issue a Prospectus (Document E) relating to the acquisition of SchlumbergerSema, ahead of the Special Meeting of Shareholders on January 22nd, 2004 to approve that acquisition. During that meeting, Atos Origin will comment on the preliminary unaudited results for the year ended December 31st, 2003 that are published today.
Revenue for the period amounted to EUR 3,030 million, which represents a limited decrease of 0.4% compared with the same period last year, but an increase of 1.7% in constant exchange rate terms. The group benefited from a full year revenue contribution from Atos KPMG Consulting, which was offset by a decline in Systems Integration. Both the Consulting and Systems Integration markets suffered from continuing pressure on prices, although at a lesser rate in second half of 2003. Managed Operations revenues were globally stable after adjustment for the disposal of document management and check processing activities from September 1st, 2003. The volume declines experienced during the current cycle appear to have leveled off and are now improving slightly, and total group revenues were slightly higher than our last expectations. Recurring business now makes up over 55% of total group revenues, including the application maintenance part of our Systems Integration business.
The operating margin for the period was 8.2%, in line with the guidance we communicated at the Annual General Meeting last May. While trading conditions in the European IT services market were difficult in 2003, our financial performance has remained solid. The focus on reducing our cost base and streamlining the organization produced continuous benefits and enabled the Group to improve margins from 7.9% in the first half to 8.5% in the second half.
Cash flow continued to be strong, resulting from tight management of our working capital. After a reduction in net debt from EUR 440 million at the start of 2003 to EUR 386 million at June 30th, 2003, reported net debt fell to approximately EUR 270 million at the end of 2003, significantly lower than our target of EUR 350 million. We are comfortably able to finance our foreseeable operational needs and meet our short-term repayment obligations.
Atos Origin is currently completing its Budget process and will give guidance for 2004 at the Special Meeting of Shareholders on January 22nd, 2004. Full audited results for 2003 will be released on March 10th, 2004.
Schlumberger will publish its fourth quarter and full year results for 2003 on January 23rd, 2004. The preliminary unaudited results of the SchlumbergerSema operations that are being acquired by Atos Origin, prepared using accounting principles that are generally admissible in the United States and applied by Schlumberger, show that revenue for the year ended December 31st, 2003 amounted to USD 2,677 million with a pre-tax operating result of USD 61 million.
These figures translated into euros, prepared using accounting principles that are generally admissible in France and consistent with those currently applied by Atos Origin, show that revenue for the year ended December 31st, 2003 amounted to EUR 2,372 million with an operating margin for the period of 3.1%. The operating margin for the fourth quarter reached 4.7%, in line with expectations stated at the time of announcing the acquisition.
About Atos Origin
Atos Origin is an international information technology services provider. Its business is turning client vision into results through the application of Consulting, Systems Integration and Managed Operations, including outsourcing and on-line services. In August 2002, Atos Origin acquired KPMG Consulting in the UK and The Netherlands, trading as Atos KPMG Consulting. The company generates annual revenues of EUR 3 billion and employs 28,000 staff in 30 countries. The Group’s client list includes major companies such as ABN AMRO, Akzo-Nobel, Alstom, BNP Paribas, BP, Euronext, Fiat, ICI, ING, KPN, Lucent, Philips, Renault, Royal Bank of Scotland, Saudi Aramco, Shell, UBS, Unilever, Vivendi Universal, Vodafone and Wolters Kluwer.
Contact for Press:
Marie-Tatiana Collombert, Tel: +33 (0) 1 55 91 26 33
Contact for Investors:
John White, Tel: +33 (0) 1 55 91 26 32