2021: A year of transition for Atos

Adjustment of Once-a-year Aims

Affirmation of Mid-time period Targets

Paris, July 12, 2021

Referring to EU regulation No. 596/2014, which offers that issuers shall advise the community as shortly as doable of inside of information and facts straight related to them, Atos announces the adjustment of its 2021 annual aims. The first semester figures are not finalized nor audited, the detailed first semester accounts will be published as planned on July 28, 2021.

All through the second quarter, profits development at consistent forex came back to balance. Nevertheless, organic development remained negative at c. -one.five% owing to an accelerated decrease of legacy infrastructure company in a context of a substantially more robust demand for article-COVID cloud migration. The Group anticipates that this company change will persist all through the second semester. The other Group organizations benefitted from the economic recovery driving a booming digital demand. In this context, the Group adjusts its aim of profits development at consistent forex for the full yr to stable.

Though for this yr the Group experienced expected a better seasonality concerning the first and second semester, working margin was reduce than expected in the first semester at c. five.five%. Thinking about the profits adjustment around the full yr, impacting legacy functions with a low limited time period expense versatility, the Group adjusts its working margin aim to c. 6.% for the full yr. As a consequence of this unparalleled effect on the company, a number of outstanding items (compose-off of belongings, loss provisions) have been booked beneath “Other Working Revenue and Expenses”. This line amounted to a whole of c. €-160 million in the first semester.

All through the first semester, absolutely free income movement amounted to c. €-364 million as opposed to €-172 million all through 2020 first semester. No cost income movement was primarily impacted by operating capital and in distinct by a reduction in income in advance from consumers. Relocating forward, the Group decides to decrease income in advance from consumers. The modified aim for 2021 is a beneficial absolutely free income movement, to replicate the impacts from the working margin aim reduction, and operating capital, far more especially on consumer advance payments. The new aim also assumes the whole a single-off € 180 million income outflow in 2021 for the German turnaround system (see beneath).

Transformation agenda and mid-time period targets

In this context, the Group has made a decision to speed up its transformation -both equally organically and inorganically- by increasing its achievements in, and concentrating on, Electronic, Cloud, Safety, and Decarbonization.

In distinct, the strategic portfolio overview of non-core belongings is staying finalized and the Group will converse on its conclusions on July 28, 2021, so as to shift to execution swiftly.

Negotiations with social partners about the essential turnaround of the German infrastructure company have concluded to a restructuring system of c. one,300 persons, furnishing an supplemental one% working margin at Group level mid-time period. The system will be detailed on July 28, 2021.

Soon after a yr of transition in 2021, the Group expects to strengthen on all its KPIs in 2022 and maintains its mid time period targets of profits development at consistent forex from +five% to +7%, working margin rate from eleven% to 12% and absolutely free income movement conversion over 60%.

North The us Audit Abide by up

About the audit of the US lawful entities, the Group made a decision in April this yr to carry out a full accounting overview of those entities as of December 31, 2020, supported by external advisors.

This operate is staying finalized and at this phase misstatements determined are not substance. The auditors’ operate is also ongoing as part of their fifty percent yr overview.

The completion of this method is targeted to be reached at the time of H1 release on July 28, 2021.

Aside from, the remediation and prevention system has been finalized and is staying rolled out.

Appendix

The Administration of Atos invitations you to an worldwide convention phone, on Monday, July 12, 2021 at 08:00 am (CET – Paris).

You can be a part of the webcast of the convention:

• via the subsequent website link: https://edge.media-server.com/mmc/p/cvgjqzz9
• by telephone with the dial-in, 10 minutes prior the starting time. Please be aware that if you want to be a part of the webcast by telephone, you should register in advance of the convention utilizing the subsequent website link: http://emea.directeventreg.com/registration/9249267
  On registration, you will be presented with Participant Dial In Quantities, a Immediate Function Passcode and a unique Registrant ID. All through the 10 minutes prior to the beginning of the phone, you will require to use the convention accessibility information and facts presented in the email received on registration.

Soon after the convention, a replay of the webcast will be obtainable on atos.web, in the Buyers part.

The push release will be issued on Monday, July 12, 2021 at 07:thirty am (CET – Paris).

Forthcoming occasions

July 28, 2021               Initially semester 2021 effects

October 21, 2021         Third quarter 2021 profits

Down load the push release in pdf 

Contacts

Trader Relations:

Gilles Arditti – +33 6 eleven 69 81 74 –  [email protected]

Media:

Anette Rey –  +33 6 69 seventy nine 84 88 – [email protected]

About Atos

Atos is a global chief in digital transformation with a hundred and five,000 employees and annual profits of around € eleven billion. European quantity a single in cybersecurity, cloud and large efficiency computing, the Group offers tailored stop-to-stop methods for all industries in seventy one nations. A pioneer in decarbonization solutions and products, Atos is dedicated to a safe and decarbonized digital for its clients. Atos operates beneath the makes Atos and Atos|Syntel. Atos is a SE (Societas Europaea), stated on the CAC40 Paris inventory index.

The goal of Atos is to assistance structure the long term of the information and facts room. Its expertise and solutions assist the advancement of understanding, education and learning and investigation in a multicultural solution and add to the advancement of scientific and technological excellence. Across the entire world, the Group allows its consumers and employees, and associates of societies at massive to stay, operate and build sustainably, in a harmless and safe information and facts room.

Disclaimers

This doc is made up of forward-on the lookout statements that contain dangers and uncertainties, which include references, about the Group’s expected development and profitability in the long term which may possibly noticeably effect the expected efficiency indicated in the forward-on the lookout statements. These dangers and uncertainties are connected to components out of the handle of the Organization and not exactly estimated, this kind of as market place disorders or rivals behaviors. Any forward-on the lookout statements created in this doc are statements about Atos’ beliefs and anticipations and must be evaluated as this kind of. Forward-on the lookout statements involve statements that may possibly relate to Atos’ ideas, aims, approaches, objectives, long term occasions, long term revenues or synergies, or efficiency, and other information and facts that is not historical information and facts. Actual occasions or effects may possibly differ from those explained in this doc owing to a quantity of dangers and uncertainties that are explained in the 2020 Common Registration Doc submitted with the Autorité des Marchés Financiers (AMF) on April 7, 2021 beneath the registration quantity D.21-0269. Atos does not undertake, and especially disclaims, any obligation or duty to update or amend any of the information and facts over except as normally demanded by legislation. This doc does not incorporate or constitute an offer of Atos’ shares for sale or an invitation or inducement to devote in Atos’ shares in France, the United States of The us or any other jurisdiction.

Atos consolidated and statutory economic statements for the yr finished December 31, 2020, have been permitted by the Board of Administrators on February 17, 2021. Following their audit procedures on the consolidated economic statements for the yr finished December 31, 2020, the statutory auditors issued on April one, 2021 a competent feeling owing to a limitation on the scope of the audit as two US lawful entities representing eleven% of 2020 consolidated profits that call for supplemental diligences. For the sake of clarity, except for the qualification involved in the statutory auditors’ report on the consolidated economic statements for the yr finished December 31, 2020, the Group consolidated economic statements are audited and the economic statements involved in the Common Registration Doc are unchanged as opposed to the model published by the Organization on February eighteen, 2021. As of these days, the Group has not determined misstatements on the two US entities that are substance for the consolidated economic statements.

Revenue organic development is offered at consistent scope and exchange prices.

Industries involve Production (Aerospace, Automotive, Substances, Buyer Packaged Goods (Foodstuff & Beverage), Discrete Production, Procedure Industries, Companies and Siemens), Financial Companies & Insurance coverage (Insurance coverage, Banking & Financial Companies, and Business enterprise Transformation Companies), General public Sector & Defense (Defense, Schooling, Extraterritorial Companies, General public Administration, General public Group Companies and Main Situations), Telecom, Media & Technologies (Substantial Tech & Engineering, Media, and Telecom), Methods & Companies (Electrical power, Retail, Transportation & Hospitality, and Utilities) and Health care & Daily life Sciences (Health care and Pharmaceutical).

Regional Business enterprise Models involve North The us (Usa, Canada, Guatemala and Mexico), Northern Europe (United Kingdom & Ireland, Belgium, Denmark, Estonia, Belarus, Finland, Lithuania, Luxembourg, The Netherlands, Poland, Russia, and Sweden), Central Europe (Germany, Austria, Bulgaria, Bosnia, Croatia, Czech Republic, Greece, Hungary, Romania, Serbia, Slovenia, Slovakia, Israel, and Switzerland), Southern Europe (France, Andorra, Spain, Portugal, and Italy) and Increasing Marketplaces which include Asia-Pacific (Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand), South The us (Argentina, Brazil, Chile, Colombia, Uruguay, and Peru), Middle East & Africa (Algeria, Benin, Burkina Faso, Egypt, Gabon, Ivory Coast, Kenya, Kingdom of Saudi Arabia, Madagascar, Mali, Mauritius, Morocco, Qatar, Senegal, South Africa, Tunisia, Turkey and UAE), Main Situations and World Delivery Facilities.