Atos' Liquidity Surplus: A Boon for Strategic Decision-Making

Atos SE (Euronext Paris: ATO) has published an estimated 2024 year-end liquidity position that significantly exceeds the levels set out in its business plan. This publication is part of the regular reporting requirements defined and agreed with the Group’s financial creditors. As of December 31, 2024, Atos' liquidity is estimated at €2,191 million, more than one billion euros above the €1,152 million expected cash position presented in the Accelerated Safeguard Plan. This surplus liquidity can be attributed to several factors, including advance payments from customers, net proceeds from the sale of the Worldgrid business unit, and undrawn Revolving Credit Facility (RCF).



The estimated €319 million of payments received from customers, mostly public sector customers paying in advance of invoice payment due dates, contributed significantly to the higher liquidity position. Additionally, the €240 million of net proceeds from the sale of the Worldgrid business unit, which closed in December 2024, further boosted Atos' liquidity. Lastly, the €440 million of undrawn RCF provided an additional source of liquidity that can be accessed as needed.

Excluding these three items, the 2024 year-end cash position would be estimated at €1,192 million, €40 million better than the 2024 year-end cash position of €1,152 million presented in the Accelerated Safeguard Plan. This surplus liquidity presents Atos with several strategic decision-making opportunities.

Firstly, Atos can allocate the additional liquidity to optimize its financial position by repaying debt, reducing its financial leverage, and improving its credit profile. With no debt maturities before the end of 2029, Atos has the flexibility to manage its financial obligations more effectively.

Secondly, the surplus liquidity could provide Atos with more resources to invest in strategic initiatives, such as research and development, acquisitions, or expansion into new markets. This could help the company to drive growth and innovation in the long term.

Thirdly, the additional liquidity could help Atos to better manage risks, such as operational risks or market uncertainties. With more cash on hand, the company may be better equipped to respond to unexpected events or challenges.

Lastly, the surplus liquidity could potentially be used to return value to shareholders, for example through dividends or share buybacks. This could help to improve shareholder satisfaction and maintain the company's reputation in the market.



In conclusion, Atos' liquidity surplus of €2,191 million at the end of 2024 presents the company with several strategic decision-making opportunities. By allocating the additional liquidity to optimize its financial position, invest in growth opportunities, mitigate risks, and improve shareholder value, Atos can strengthen its competitive position and drive long-term success.