“Atos Origin Financial Update”
Paris/Amsterdam - April 29th, 2004
Atos Origin confirms that it will announce revenues for the first quarter of 2004 at 08:00 hrs (CET) on Friday 14th May, 2004, together with details of the preliminary pro forma opening balance sheet for 2004 following the acquisition of Sema Group.
The following information will be provided at that date:
- Revenue for the first quarter of 2004, with analysis by service line and region. The Group confirms that revenue will be slightly above EUR 1.3 billion, fully in line with our expectations.
- Net debt at March 31st, 2004.
- Details of the preliminary pro forma opening balance sheet position following the acquisition of Sema Group on January 29th, 2004.
In connection with the review of the completion accounts for the acquisition of the Sema Group at December 31st, 2003, under US GAAP, Atos Origin has agreed the following with Schlumberger:
- Under the terms of the Sale and Purchase agreement, Schlumberger will make a final adjusting payment of EUR 50 million in cash in respect of these accounts.
- Sema Group has material obligations in respect of certain defined pension schemes. Under terms and conditions defined in the Sales and Purchase Agreement, Schlumberger has agreed to fund half of any increase in contributions that may be necessary during the next six years, above the reference contribution rate for 2003, up to a maximum value of EUR 60 million.
- Atos Origin and Schlumberger are confirming the agreement whereby Atos Origin will provide outsourcing and systems integration services to Schlumberger over a maximum period of 7 years, up to a contract value of US$700 million.
The preliminary pro forma opening balance sheet of Atos Origin for 2004 will be published on May 14th, 2004. The agreed completion accounts will be translated from US GAAP into French GAAP. The Group has also adopted material obligations under the new IFRS and "Loi de Securite Financiere" rules. These include:
- Recalculation of the cost of acquisition, based on the updated share price.
- The additional cash consideration paid at the date of closing
- The price adjustment made in respect of the completion accounts.
- The fair market value of fixed and other assets, in particular in respect of non-core assets.
- Liabilities under various pension schemes.
- A review of off balance sheet commitments, which will result in financial receivables of less than US$ 100 million, with a related debt of the same amount, in accordance with IFRS rules, thus not impacting the net financial debt after financial receivables.
As a result of all of the above, goodwill arising from the acquisition of Sema Group is estimated to be approximately EUR 1.5 billion at December 31st, 2003.
About Atos Origin
Atos Origin is an international information technology (IT) services company. Its business is turning client vision into results through the application of consulting, systems integration and managed operations. The company's annual revenues are more than EUR 5 billion and it employs 47,000 people in 50 countries. Atos Origin is the Worldwide Information Technology Partner for the Olympic Games and its clients include ABN AMRO, Akzo Nobel, Alstom, BNP Paribas, BP, Ericsson, EDF, Euronext, Fiat, France Telecom, ICI, ING, KPN, Lucent, Philips, Renault, Royal Bank of Scotland, Saudi Aramco, Schlumberger, Shell, Telecom Italia, UBS, UK Department for Work & Pensions, Unilever, Vivendi Universal and Vodafone.
Atos Origin is quoted on the Paris Euronext Premier Marché and trades as Atos Origin, AtosEuronext, Atos Worldline, Atos KPMG Consulting and Atos Odyssée.
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