Atossa Therapeutics, Inc.

Good morning, everybody. Thank you for joining us this morning for 24 financial results. I'm with Jacques François, the group CFO. So on page three, of course, you have the normal, I would say, disclaimer. There is nothing new on this one. So on page four on the agenda, today I will share with you some key messages. Then I will go on the business highlights. On 2024, Jacques François then will take the lead for the 24 financial results. And then I will come back with key takeaways. And of course, we're going to take some Q&A after that. So with the allies first, so let's start on the page, which is number six. So I would say first on Q4, I think the good news is the I would say, commercial activity on Q4. As you can see, the Q4 book-to-bill, in fact, is very strong, above 110%, and stronger, in fact, than Q4 2023. We signed, in fact, a lot of multi-year contracts. It's both renewals in terms of contracts and wins. In the second point, We have a 2024 revenue organic evolution operating margin and free cash flow is roughly in line with the outlook that we have communicated in October, which I think is very important in terms of, I would say, confidence. In terms of M&A update, we finalized the sale of World Grid. It has been done in the year of 2024 and we received the cash, in fact, before the end of the year. As you know, in November, we received a non-binding offer from the French state for the potential acquisition of what we call the advanced computing activities. And we have launched the self-process of the mission critical system. In fact, this month in March, if we have, I would say, the right level, I would say, of price, we will probably sign something during the summer. for a closing probably at the end of the year or beginning of next year. Finally, I would say on the right column on the slide, I think it's very important to understand that we are now opening a new chapter. First, we have successfully, I would say, closed the financial restructuring. It was done on December the 18th. Then we had, I would say, a credit rating of B- with a stable outlook on our corporate bonds. And then, of course, there is now, I would say, a transformation plan that is underway. So, in fact, when I joined the company, I launched in December a strategic review plus a transformation plan. And, in fact, I will convey a capital market day with Jacques Francois and the top management in May. It will be on the 14th, where we're going to, I would say, reveal exactly, I would say, the strategy, 25-28, and, of course, a business plan for the next four years for 25 of course and then the next four years if we go uh on the page uh seven on the 2024 uh financial performance so first in terms of sales we are at 9.6 billion it's roughly organically down by five percent uh we can say roughly that the market was around minus two so it means that we have suffered a little bit more than the market around three points And of course, this is, I would say, a normal situation with the instability, of course, that was with Atos during the year of 2024. If we did die, I would say, between the two business units that we have, so Eviden is roughly at minus 7%, and the tech foundation around the minus 4%. In terms of operating margin, around $200 million, which is roughly 2.1% of sales. It's, of course, I would say, probably the bottom for us. Surely, I would say the bottom. I think we're going to rebound already in 2025. If you compare, I would say, versus 2023, first, there were some costs, in fact, in 2023 that were put under the OM for the separation that is, of course, no longer an option. And it was roughly 100 million. And also, we make some provisions. In fact, in 2024, what we call on the red or black accounts, around 40 million. The group free cash flow is minus 2.2 billion. You have to understand that we completely stop what we call the working capital optimization. And it has an impact roughly of 1.5 billion, I would say, on the cash. And we have also higher capex coming from the HPC. that's a one-off i would say it's not going to be repeated in fact in 2025 and it was around i would say a 200 million plus that was cool of course i would say as affected i would say the cash flow of 23. if i go now on page 8 for the i would say the the order entry and the commercial performance so it's roughly 8 billion and as i said 2.7 billion in q4 i think we have been we have been able i would say to see A good rebound, I would say, on the Q4 activity and also because most of the clients were waiting, I would say, the end of the financial restructuring. In fact, we signed a lot of contracts in December. You have, after that, of course, by business line, evident as a book to build. So in Q4 at 111% and roughly at 88% during the year of 2024. And Tech Foundation, the Q4 was at 122%, which is quite a good, I would say, performance, and a book to be around a little bit below 80% also for the year 24. I put, I would say, some examples of what we have been able, I would say, to negotiate during the Q4 in banks, in public sector, car rental company, and health insurance. If we go on the page 9, So the revenues, I would say, by regions. As you can see, we are quite balanced, finally, I would say, between North America, UK, Benelux, what we call Central Europe, includes Germany, Southern Europe, and what we call also growing markets, which is, of course, Latin America, Africa, Middle East, and Asia. Let's deep dive, I would say, let's say region by region, and let's start with North America. So, in fact, in North America, the revenue was minus 12%. It has been quite, I would say, a difficult environment. Probably, I would say, for me, I was in the U.S. last week. I think that a lot of, let's say, U.S. corporations were more sensitive, I would say, to the financial situation of Atos. And that's why we lost some of the, I would say, some contracts in this area. in this area but the good thing, the good sign that we have in fact some of them are restarting I would say to renegotiate some contracts with us which I think it's a good sign I would say for 2025. On page 11 in the UK also it has been quite tough but we also decided I would say to stop some contracts and remember also that we have the BPO activities mainly located in the UK And this one, in fact, was a double-digit decline. Benelux and Nordics on page 12, quite a healthy, I would say, growth at around 5%. It's also, I would say, done with a good performance with Eviden and, of course, an HPC that was sold in Denmark. And the tech foundation was slightly declining with some contracts completion. Central Europe, which includes, I would say, Germany, it's roughly minus 2%. We had roughly a small decline for both Eviden and tech foundations. And we have also a scope reduction, in fact, in some sectors. And you know that, for example, Germany, of course, in the automotive sector is, I would say, suffering quite heavily. On page 14, Southern Europe, which is many fronts, and in fact, Spain, we have, I would say, a slight decrease, I would say, compared to, I would say, competitors. Nothing I would say to say, I would say, particularly, I would say, in this region. And finally, on the growing markets, it, of course, it has been, so it's on page 15, it has been also driven, I would say, by the Olympics, because the Olympic contracts, I would say, is in this region. So we have, I would say, a strong growth, I would say, on tech foundation because of the Olympics. And evident, we had, I would say, some declines, but it's also because, I would say, the base is not really comparable with the HPC, as we have done, I would say, quite a good year in 2023. Now, to finalize, before I give the floor to Jacques-Francois, I think the good news is the attrition rate on page 16. As you can see, it's around the 15%. So it's, I would say, compared, I would say, to the normal year for us. So there was not a leakage, I would say, of firm price in the company. And, of course, I think it's a good sign to see that finally, I would say, most of our workforce has been able, I would say, to stay with the company. And, of course, we are now, I would say, aiming to probably decrease this attrition rate in the future. The retention of the key employees also is very important at 92%, which, of course, is important as it is the workforce, of course, that is driving the group going forward. With now, I give the floor to Jacques-François to give you the, I would say, the highlights, of course, of the financial results.

Thank you very much, Philippe, and good morning to you all. So, our consolidated financial statements have been established, as usual, on a going concern basis. All the numbers I will comment upon today are in euros, and I will give you, of course, a snapshot of our key financial numbers for 2024. So, as Philippe just commented, the group revenue was 9.6 billion euros in 2024, down 5.4 organically compared with 2023, with Eviden down 6.7%, and tech foundations declining by 4.1%. Group operating margin was 199 million, representing 2.1% of revenue, down 200 basis points organically compared with fiscal year 23. Free cash flow was minus 2.2 billion euro for the full year, largely explained by the end of one of working capital optimization actions, which resulted in a 1.5 billion euro decrease compared with December 23, as well as by higher capex linked to HPC contracts. The nominal value of our debt, the net debt post-financial restructuring, was 1.2 billion. As you can see in our accounts, the book value of our debt in IFRS was actually 0.3 billion euro because it included an IFRS 9 debt fair value treatment, which reduced its value by nearly a billion, 963 million euro, in order to reflect the mark-to-market. This 963 million will be amortized in subsequent years. Net loss group share was 0.2 billion euro, primarily reflecting a 2.7 billion euro financial gain related to the financial restructuring of the group, a 1 billion euro income from the IFRS debt fair value treatment, and a goodwill and other current asset impairment charge of 2.4 billion euro. Let me guide you through our revenue evolution in 2024. Our revenue evolution is explained by two main drivers. Firstly, the organic revenue decrease of minus 5.4%, as Philippe just said, driven by previously established contract terminations or scope reductions, as well as market softness in key geographies. Secondly, of course, the scope changes over the past years with the divestitures in 23 of UCC, Eco Act, State Street Joint Venture, and to a lesser extent, World Grid at the end of 2024. The organic revenue evolution percentage is in line with the business outlook we provided in October. This leads to a full year revenue of 9.7 billion euros. Regarding our profitability, the group operating margin was 199 million euros. representing 2.1% of revenue, down 210 basis points compared to 23. As a general comment, the margin decrease comes mainly from two one-off items. Firstly, the allocation to the business of 103 million euros additional SG&A. In 23, these internal costs, because they were unusual, abnormal, and infrequent, because they related to the separation project that was conducted at that time, that were classified below the operating margin in the other operating income and expense line of our P&L. And secondly, circa 40 million euros of provision for underperforming contracts following negotiations with customers. So now per business line. Evidence operating margin was 90 million euros, representing 2% of revenue down 350 basis points. Beyond the allocation of SG&A costs representing 48 million euros, Profitability was also impacted by revenue decrease and lower utilization of resources. TEC Foundation's operating margin was €109 million, representing 2.2% of revenue, down by 70 basis points. The business benefited from the positive impacts from the continued execution of the transformation program and the accelerated reduction of underperforming contracts. That was offset by higher allocation of SG&A costs to the business, for 55 million euros for tech foundations. I will now walk you through the rest of the P&L. Non-recurring items were a net expense of 2.9 billion euros. And I will comment upon the key elements there. Firstly, reorganization costs amounted to 119 million euros, a strong reduction compared with the 696 million incurred last year. Reorganization costs. include notably the workforce adaptation measures for 56 million euro compared with 343 million in 23 as the group limited restructuring expenses in order to manage its cash position during 24. it also includes separation and transformation costs for 42 million related to the last cost of the legal carve-out which was launched in 22 as part of the separation project as a reminder These covered costs amounted to 353 million in 23, about one third being internal costs and the rest being mostly external consulting and legal costs. Secondly, rationalization and associated costs amounted to 37 million euros and corresponded to the continuation of the data center's consolidation program. Thirdly, Goodwill and other non-current asset impairment charges amounted to 2.4 billion euros. I'm sure you all know, but just to make things clear, I remind you that this charge is a non-cash item. Impairment amounted to 1.5 billion euros for the first half of the year and 0.8 billion euros in the second semester, reflecting the decrease of the group's enterprise value, which takes into account a lower fair value of the financial debts and a lower market capitalization. remaining goodwill on the balance sheet at the end of the year amounted to circa 600 million euro. Finally, in 24, other items were a net expense of 288 million euros. It included 74 million euro of net capital gain related to the sale of WorldGrid, offset by additional losses recognized on past transactions. It also included the reassessment of onerous contracts, that were accounted for in OOI in previous years for 160 million euro, settlements and legal fees related to major litigations for 96 million euro, current asset write-off for 78 million euro, and net cost of pension and early retirement programs in Germany. Net financial income amounted to 3.1 billion euro in 24 compared with the net charge of 227 million euro in 23. This increase results from higher interest rates increased drawings on our SCF, as well as interest paid on the interim financing and on the new debt structure. Secondly, net financial gain amounted to 3.5 billion euros in 2024. This topic is so important, we have added a page on the next page to elaborate and explain the financial impact of the debt restructuring. Let's go through that. As you can see on the screen, the 3.5 billion euros is made of four main elements. The largest one to the left is again recognized for 2.8 billion euros upon the conversion of the debt into equity. Then there is a 965 million euro income which was recognized following the fair value treatment applied on our debt according to IFRS 9. This amount will be amortized in subsequent years. An expense of 45 million euros related to the issuance of the warrants was recognized as well as the cost and fees of the financial restructuring amounting to €165 million. Thirdly, in 2024, other financial expenses amounted to €221 million. It included €78 million of exit fees on interim financing loans, a lease liability interest of €36 million, higher than in 2023 due to higher discount rates, pension-related financial expense of €30 million, The net foreign exchange loss, including hedges of 29 million and prior year transaction costs, which were fully amortized in 24 in the context of the financial restructuring of the group for 15 million euros. The tax charge for 24 was 214 million euros, increasing by 102 million euros compared with 23. This increase was primarily driven by a 59 million euro valuation allowance on DTA recognized in past years. reflecting the latest business plan of the group and reduced taxable income perspective. And on top of that, 37 million euros of non-recoverable withholding tax paid on dividend distributions. Turning now to our free cash flow statement. Free cash flow was minus 2.2 billion in 24. Let me highlight the key elements there. Firstly, the free cash flow for the year reflects the end of the one of working capital optimization actions for 1.5 billion euro compared to December 31st, 2023. Details of these working capital actions will be shown on the next page. Then capital expenditures increased by 239 million euro, reflecting increased investments in client projects, particularly for a significant investment in the energy efficient exascale technology. So as we said before, we are no longer doing any one-off actions to optimize our working capital. The 319 million you can see here to the right consists only of customer payments received in advance of the inverse due date. I insist, we have not given any discount for this cash in advance, nor have we orchestrated it. This comes purely from large public sector companies, customers in various countries, various industries. As a reminder, working capital optimization amounted to 1.8 billion euros at the end of December 23. So logically, the impact on this year's cash flow statement was minus 1.5 billion. Going forward, our intention is to put in place measures to improve our working capital in a sustainable and recurring manner. The total of reorganization, rationalization, An associated cost, an integration and acquisition cost, reached €256 million, compared with €660 million in 23. Indeed, the group limited restructuring expense to manage its cash position in 24. Cash out related to other changes amounted to €504 million. This amount included costs incurred on onerous contracts, €466 million, for the most part in relation to the contracts that were accounted for in other items in previous years. It also comprised expenses related to financial restructuring for 226 million euro, out of which 110 million of external advisor costs, 38 million of lender fees, and 78 million of exit fee on the interim financing we had in 24. The litigation costs, including the cash disbursed to settle a major litigation are also reported on that line. In conclusion, the group reports a negative free cash flow of minus 2.2 billion in 24, reflecting the end of one of working capital optimization actions for 1.5 billion euro and higher capex linked to HPC contracts for 0.2 billion euro. The net cash impact resulting from net disposals amounted to 162 million euro, mainly relating to the net cash proceeds generated by the World Grid disposal for 232 million euros, including fees on disposals. This also included the write-off of a receivable on a past disposal. To conclude on the cash flow statement, let me spend a moment on what was the impact of the capital increases of our net debt. Following the successful closing of our financial restructuring on December 18th, we have restored our liquidity profile and reduced significantly our debt. This translated into 145 million euros of new money equity raised from the rights issue, as well as 2.9 billion euros of equitization of existing financial debt. The total net debt for the group amounted to 275 million euros, including 965 million IFRS 9 debt fair value treatment which will be amortized in subsequent years. As a reminder, before this IFRS 9 debt fair value treatment, the nominal value of our debt amounted to 1.2 billion euro. The group did not pay dividends in 24. The numbers you see on the screen related to the withholding tax paid by certain subsidiaries on internal dividend distribution and dividend paid to minority interests. To conclude my presentation, I would like to present to you our new financing structure and maturity. Cash, cash equivalent, and short-term financial assets at year-end were 1.8 billion euro, meaning we have sufficient liquidity to operate at mid-term and to execute our business plan. As a reminder, the 440 million euro of revolving credit facility is undrawn at the end of 24. Consequently, Our gross debt at December 24 is 3.1 billion euro. You can see on this slide the breakdown between bonds, loans, and RCF. We have no maturity before December 29, with the first lien debt of 1.8 billion, including the RCF, having a maturity in December 29, the 1.5 lien debt of 1.9 billion in December 30, and the second lien debt of 0.5 billion in December 32. All these amounts include the debts related to the interest in kind, PIC. I will now hand over back to Philippe.

Thank you, Jacques-Francois. So I think we are now ready for this new chapter for Atos. Now that I would say the financial restructuring has been completed in December, we can now focus on the transformation journey, which of course is very important. And the idea, of course, is to provide highest level of support to our customers through innovation and quality. So first, we have a new governance in place. We have now a combined chairman and CEO role, and we have a reduced board of eight directors with a strong and recognized Domenech's expertise. Two, there is a transformation plan in motion. In fact, I launched early December a strategic review, and also there is a launch of a transformation plan during the Q4 last year. And of course, this will give, of course, a lot of results in the course of 25 and 26. Three, I think the leader team now is appointed. The top 20 is almost complete. And I would say what I call the management team, around 200 people now are ready, I would say, to deliver, I would say, the results we are looking at, of course, for 25 and the next years. And finally, as I say, There was a strong commercial activity in Q4, and we are quite confident also that we will continue to have some good results in the course of 2025. So, as I said in my introduction, I will give you, I would say, we will meet you, I would say, on the 14th of May in France, in Paris. We don't know exactly where is the venue, but we will of course come back to you and of course the timing. I will present, of course, with Jacques-François and some of the top management, my vision for Atos for the 25-28 plan. So it's a four-year plan. Of course, this year and the next three years, we will give also guidance for 25 and we will also give a guidance for 28. With this operator, we can start the Q&A session. Thank you.

Thank you. As a reminder, to ask a question, please press star 1 1 on your telephone and wait for your name to be announced.

To withdraw your question, please press star 1 and 1 again. We will now take the first question. From the line of Frederic Poulin from Bank of America, please go ahead. Frederic Boulin from Bank of America, please go ahead.

Hey, good morning, Philippe and Jacques-François. Thanks for the presentation. A couple of questions for me. First of all, on Q4, if you can give us any sense of when you look at the operating performance of Avid and Tech Foundation, what was the impact of contract termination within those companies within the kind of organic revenue decline. Specifically, you point out to some HPC delivery in Denmark and Germany. It would be great here if you could also give a bit of quantification around the positive impact around those. And then more broadly, when we look at the trajectory in the next couple of years, I mean, the pre-restructuring, you had this kind of very useful flow chart to kind of paint a picture of where you plan to be in the medium term in terms of leverage cash flow etc so I understand you will give us all that detail on the 14th of May but would be interesting to understand at least for 25 any thoughts you have around free cash flow any specific elements you want to call out I mean you mentioned margin should probably not you know worsen further but you know anything else you can say in terms of where we're trending versus the previous plan and what you've presented to debt holders. This is the kind of current leverage target. I think you had the target of 1.7 billion pro forma debt at 2027. So any kind of call you can give on that would be great. Thank you.

So probably on the second, I will let Jacques-Francois answer on the first two questions, but I would say on the As I say, I'm not going to give any guidance. You can try. You can understand this. It's normal. But I will wait, I would say, May to, I would say, give, as I said, the guidance for 25, with a business plan, of course, for 28. You said that, I think, the lowest point in terms of margin and profitability, I'd say operating margin was touched in 24. So for sure, we're going to do much better, I would say, in 25. But I would say, except this one, I'm not going to comment more than that, unfortunately. So you need to be a little bit patient. May the 14th is in two months. You will have, I would say, a full view of where we think we can land, in fact, in 2025. And where we're going to head, I would say, for the next four years in terms of strategy and also in terms of financial results. Jacques-François, you want to comment on this?

Yes, Frédéric, I would say regarding the top line, maybe... A world of the Q4, which is a quarter of contrast, because on one hand, as you pointed out, the revenue evolution was degraded due to the contract terminations or the scope reductions, both in tech foundation and evident, but more in evident than the tech foundation. Although, on the other hand, we have seen a rebound on the commercial activity with a very significant level of order entry. If I look at the period between the 19th of December and the 31st of December, so that's the last two weeks of December, we have signed the deal for 1.6 billion only. So that makes our book to bill, you know, of 117% for the Q4, which is, we believe, a regain of momentum regarding the commercial activities.

anything you can share around the impact of HPC?

Can you elaborate a bit on the question?

Yeah, you said in Denmark and Germany you had some large delivery that helped in the quarter, so that's great, but it would be interesting to understand what's the kind of scope of those wins.

Yes, I mean, we have the On the Denmark, I think we made a press release explaining a big HPC deal in the course of 24. And on Germany, this is the very big exascale, I think the first European exascale, which is the Yulish project, which is still being developed, for which there was a high capex in 24, and there will be still news on this project in 25.

Okay, thank you. Thank you.

We will now take the next question from the line of Laurent Doré from Cap-Les-Sévres. Please go ahead.

Yes, good morning, Philippe, Jean-François. I have two questions. The first is on the contract termination. Could we have an idea of the impact it could have on 2025 versus the revenues you generated in 2024 to have the full year impact would be useful. And I was also wondering within the large customer, in the next two years, do you see additional risk of losing further business or do you think the situation has now stabilized? And my second question now is for you, Philippe. More precisely, you've been in the group now for a few months. What's going to be your main challenge in the next two to three years compared to your initial expectations? Thank you.

Okay. I will take part of the first one and the second one, of course. We don't expect... There is only one client at risk in the US, but in fact, we're not going to lose him. I had some news yesterday night. We'll probably reduce the scope but we're not going to lose the client finally. So we don't expect, in fact, any loss, at least in H1 for the moment, I would say, from the tender that we have right now. We have, I would say, probably more good news than bad news, I would say, versus 24. So I'm quite confident, in fact, that 25, I would say, we're not going to lose that much contracts versus, of course, what happened during the year of 2024. Now, to the expectations, I think it's a, It's important. Cash is king for me. So I think I say to the team that it's important that I would say cash is freedom. It gives, of course, the possibility for us, I would say, to decide on our own future. So we're going to have this exercise, I would say, to make the sales going back to, I would say, a positive territory, which I think is very important for me. And that's why I'm pushing very hard right now on the sales team. And we have Claire, the chief gross source officer, I would say, with all the geos that is on the job. And this, I would say, of course, is to make sure we're going to be, I would say, to have a rebound, in fact, starting in 26. And then the second one, of course, is to adapt the cost versus, I would say, the size of the company to make sure, of course, that we have, I would say, let's say, normal profitability versus our peers. So it's, of course, on the short term for me, I would say it's more important, of course, to shave costs and make sure, I would say, we deliver free cash flow. And we will be a positive free cash flow starting in 26. Exactly. The plan, in fact, that we issued in September was, I would say, showing, I would say, positive free cash flow starting in 26. And I definitely think it will be the case. And after that, of course, it's a combination between, of course, growth and I would say profitability. So that's really what I'm looking at. Usually the way I manage the company, it's always a vision, organization, people and transformation plan. so we launched the vision it will be and it will be finished by april uh the transformation plan has been launched also in q4 uh in fact there was already a start of a transaction plan before i arrived and then i accelerated it and you will show it i will you will show it in fact in may uh the organization is in place and it has been communicated internally we have number of people the top 20 is in place also like the top 200 So now we are, I would say, finishing the strategy and starting what I call, I would say, the executing mode, which is, in fact, will be starting in April. So for the first question, which was on the top line, I think, Jacques-François, I'll let you answer.

Yes, I mean, Philippe said earlier that we are not going to give a precise guidance for 2025 today because there is this meeting point in May at the CMD. However, logically, what I can say is You see on our press release and you will see in our accounts that indeed the Q4 numbers, it's a reduction in revenue versus the prior year, let's say of 300 million in total, which is 150 for Evident, 150 for tech foundations. So logically, the full year impact will keep going for the coming quarters. This being said, For the purposes, and because this is what we believe for the purposes of issuing and completing these accounts for fiscal year 24, we have confirmed and we do confirm our view for the cash level and the operating margin level in the assumptions of the business plan which was used for the accelerated safeguard proceedings, which still gives you an idea of the bottom line.

I think it's very important to understand we are cash-focused now. I think it's more important than the rest. So, of course, the business plan of September gives, I would say, a negative cash flow this year. Because of the restructuring plan, we are also continuing and accelerating, in fact. But I would say that, of course, we take this as a challenge and we will try to probably do better.

On the client side, I mean, you still have Siemens, I guess, as your largest client. I'm just wondering if what happened in the last couple of quarters may have an impact when you have to renew some pieces of the contract.

Well, I had a longer discussion, in fact, with the CEO. So I would say we are I would say in contact. I know that there was a paper saying that we're going to lose anything from Siemens. This is not the case. So we continue, I would say, to have healthy relations. We'll be also in Germany probably in April. And in fact, there is a contract in place still for the next two or three years. So we are, I would say, fulfilling completely, I would say, the contract.

Okay, great. Thank you.

Thank you. We will now take the next question. As a reminder, if you wish to ask a question, please press star 1 and 1. The next question comes from Adam McGeary from Bank of America. Please go ahead.

Good morning and thanks for taking my question. I wanted to ask if you could give some comparison on the one-off items in the free cash flow compared to what was guided in the safeguard plan. I mean, if I look at Reorg rationalization and one-offs seems like sort of add up to 757 compared to around the 600 million figure in the business plan. Is there any timing difference here? Do you expect the kind of total numbers for the year to stay the same as what was previously guided or any comments would be helpful as to how these numbers compare to the previous plan?

So I will let Jacques-Francois comment. In fact, in the business plan for 25, it was roughly in the range of 400 million. We expect roughly to be there. I will try probably to accelerate a little bit, probably the restructuring plan for 25, just because I want to make sure we're going to hit the numbers also in 26. But I would say, let's say to be in the range of 400 million, a little bit probably above, it's possible. But I would say that it's not going to be a big change versus the business plan we had in September. Now for 24, I let Jacques-Francois answer.

Yes, thank you, Philippe. So Adam, if you look at it facially, the business plan which we have been using for the last month was without this working capital optimization actions. So that's the main big, big difference. Once you neutralize that, we're actually quite close from what was guided and better off actually. So the underlying cash flow generation or consumption rather was 783 for 24 and it comes out that we end up the year at 735. So obviously there are variations line by line and I won't bore you with the details line by line but basically we have a positive impact of working capital and we have no How can I say? If underlying your question is the fact of whether we will be worse off in 2025 because we have been better off in 2024, that's not the case. So it's comparable. There is nothing which has been pushed down further to 2025. And we start the year, I can say, completely clean in terms of cutoff and items in 2024 versus 2025. Does that answer your question, Adam?

Yeah, that's great. Thank you very much. And then one more question, if I could, please. Just on the evident Q4 book-to-bill, 111%, you mentioned some of these are multi-year contracts. Is there any chance you can give some guidance as to what the average contract length is in that Q4 book-to-bill number?

You know what? Usually the large deals are around four years. I would say the deals above $30 million per year. The length is around four to five years. On average, I would say, for Atos, it's true for Eviden, and so it will be probably longer for TechF. After that, for the small deal, it's difficult. Usually, it's less than one year.

So within the Eviden number, even within the Eviden number, exuding TechFoundation, there will be several multi-year contracts?

Exactly. Exactly.

Yes. And then when you calculate this book-to-bill ratio, is that all just on an annualized booking number, or how do you then compare it to revenues in the quarter?

Yes, yes, yes. This is on an analyzed basis, yes.

Okay, great. Perfect. That's it from me, so thank you.

No, thank you.

Thank you. There are no further questions at this time. I would like to hand back over to the speakers for closing remarks.

Okay, thank you again everybody for this time. You can still ask a question if you want. I think it's very important to say that 24 is over. I think it has been, of course, a very painful year for the company with a lot of ups and downs, I would say, news and counter news and whatever. I think now we are back to a normal company with a level of debt that is... I think a decent, of course, we will, let's say, make the leverage will decrease now. And that's, of course, our goal. And it will decrease, in fact, already starting in 25. And, of course, much more, I would say, in the coming years. As I say, the team is ready. The strategy will be almost finished. I had a board yesterday, in fact, where we had a lengthy presentation. And the transformation plan is in place. And it's going to yield, in fact, some results, of course, I would say as early, of course, as 25. So I'm quite confident. I think we have a very strong company. If I can say, I would say when I joined the company roughly five months ago, for me, the strength of this company is the client base. That is, I would say, unbelievable. I've been already touring Asia, in fact, Europe, of course, and U.S. And I've seen a lot of clients. So I think I'm quite confident that now these clients want, I would say, Atos to be back. And I would say, of course, we have a strong also workforce, and that was a patient that has a lot of skills. I think we are probably sometimes over-delivering, which I think is great in terms of quality, which I think it's a good sign. And definitely, I think it gives, I would say, quite a good path for the future. So I'm quite confident, I would say, on the It will be the revival of this very nice company. And as I say, I will give you more flavor, of course, of what we're going to do in the coming year, in May. I don't know if there are any other questions or remarks from anybody.

As a reminder, it's Star 1-1, but there's no questions at this time.

Okay, then thank you again for your time and attention. Have a good day. And I will see, of course, first I think there will be the Q1 results by the end of April. And then I will see all of you, I hope, in May in Paris. Have a good day. Bye-bye.