2021: A year of transition for Atos

Adjustment of Annual Targets

Affirmation of Mid-expression Targets

Paris, July 12, 2021

Referring to EU regulation No. 596/2014, which provides that issuers shall inform the public as before long as achievable of inside details right suitable to them, Atos announces the adjustment of its 2021 yearly goals. The first semester figures are not finalized nor audited, the in-depth first semester accounts will be published as planned on July 28, 2021.

For the duration of the 2nd quarter, revenue development at continuous currency came back to stability. Having said that, organic and natural development remained damaging at c. -one.five% owing to an accelerated decrease of legacy infrastructure small business in a context of a a great deal much better need for submit-COVID cloud migration. The Group anticipates that this small business change will persist for the duration of the 2nd semester. The other Group companies benefitted from the financial recovery driving a booming digital need. In this context, the Group adjusts its goal of revenue development at continuous currency for the full yr to stable.

While for this yr the Group experienced expected a increased seasonality in between the first and 2nd semester, operating margin was decreased than expected in the first semester at c. five.five%. Thinking about the revenue adjustment about the full yr, impacting legacy pursuits with a small brief expression price tag overall flexibility, the Group adjusts its operating margin goal to c. 6.% for the full yr. As a consequence of this unprecedented impact on the small business, quite a few excellent objects (produce-off of property, loss provisions) have been booked below “Other Working Profits and Expenses”. This line amounted to a total of c. €-160 million in the first semester.

For the duration of the first semester, free cash move amounted to c. €-364 million when compared to €-172 million for the duration of 2020 first semester. No cost cash move was mainly impacted by operating capital and in particular by a reduction in cash in progress from prospects. Moving ahead, the Group decides to lessen cash in progress from prospects. The altered goal for 2021 is a optimistic free cash move, to reflect the impacts from the operating margin goal reduction, and operating capital, additional especially on shopper progress payments. The new goal also assumes the full a single-off € one hundred eighty million cash outflow in 2021 for the German turnaround strategy (see underneath).

Transformation agenda and mid-expression targets

In this context, the Group has resolved to speed up its transformation -both equally organically and inorganically- by growing its achievements in, and focusing on, Digital, Cloud, Stability, and Decarbonization.

In particular, the strategic portfolio evaluate of non-main property is remaining finalized and the Group will talk on its conclusions on July 28, 2021, so as to shift to execution swiftly.

Negotiations with social associates regarding the important turnaround of the German infrastructure small business have concluded to a restructuring strategy of c. one,three hundred folks, supplying an extra one% operating margin at Group degree mid-expression. The strategy will be in-depth on July 28, 2021.

Just after a yr of transition in 2021, the Group expects to strengthen on all its KPIs in 2022 and maintains its mid expression targets of revenue development at continuous currency from +five% to +7%, operating margin rate from eleven% to 12% and free cash move conversion above 60%.

North The usa Audit Comply with up

Concerning the audit of the US legal entities, the Group resolved in April this yr to accomplish a full accounting evaluate of these entities as of December 31, 2020, supported by external advisors.

This perform is remaining finalized and at this stage misstatements determined are not substance. The auditors’ perform is also ongoing as component of their half yr evaluate.

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

Besides, the remediation and avoidance strategy has been finalized and is remaining rolled out.

Appendix

The Management of Atos invitations you to an global meeting get in touch with, on Monday, July 12, 2021 at 08:00 am (CET – Paris).

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

• via the next backlink: https://edge.media-server.com/mmc/p/cvgjqzz9
• by phone with the dial-in, ten minutes prior the commencing time. Please observe that if you want to be a part of the webcast by phone, you will have to sign up in progress of the meeting employing the next backlink: http://emea.directeventreg.com/registration/9249267
  On registration, you will be supplied with Participant Dial In Figures, a Immediate Celebration Passcode and a one of a kind Registrant ID. For the duration of the ten minutes prior to the starting of the get in touch with, you will require to use the meeting obtain details supplied in the e-mail been given upon registration.

Just after the meeting, a replay of the webcast will be obtainable on atos.net, in the Investors portion.

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

Forthcoming events

July 28, 2021               Very first semester 2021 success

October 21, 2021         3rd quarter 2021 revenue

Down load the push release in pdf 

Contacts

Trader Relations:

Gilles Arditti – +33 6 eleven sixty nine eighty one 74 –  [email protected]

Media:

Anette Rey –  +33 6 sixty nine seventy nine eighty four 88 – [email protected]

About Atos

Atos is a international chief in digital transformation with 105,000 staff members and yearly revenue of about € eleven billion. European amount a single in cybersecurity, cloud and higher performance computing, the Group provides tailored end-to-end methods for all industries in 71 nations. A pioneer in decarbonization providers and items, Atos is fully commited to a secure and decarbonized digital for its purchasers. Atos operates below the brand names Atos and Atos|Syntel. Atos is a SE (Societas Europaea), listed on the CAC40 Paris inventory index.

The intent of Atos is to assist layout the future of the details area. Its abilities and providers help the improvement of knowledge, training and research in a multicultural technique and lead to the improvement of scientific and technological excellence. Across the planet, the Group enables its prospects and staff members, and members of societies at huge to reside, perform and produce sustainably, in a harmless and secure details area.

Disclaimers

This doc is made up of ahead-hunting statements that contain threats and uncertainties, which includes references, concerning the Group’s expected development and profitability in the future which might considerably impact the expected performance indicated in the ahead-hunting statements. These threats and uncertainties are linked to factors out of the handle of the Firm and not precisely estimated, this sort of as market disorders or competitors behaviors. Any ahead-hunting statements manufactured in this doc are statements about Atos’ beliefs and anticipations and should be evaluated as this sort of. Forward-hunting statements incorporate statements that might relate to Atos’ options, goals, approaches, aims, future events, future revenues or synergies, or performance, and other details that is not historical details. True events or success might differ from these described in this doc owing to a amount of threats and uncertainties that are described in the 2020 Common Registration Doc filed with the Autorité des Marchés Financiers (AMF) on April 7, 2021 below the registration amount D.21-0269. Atos does not undertake, and especially disclaims, any obligation or duty to update or amend any of the details above other than as or else necessary by regulation. This doc does not comprise or represent an provide of Atos’ shares for sale or an invitation or inducement to devote in Atos’ shares in France, the United States of The usa or any other jurisdiction.

Atos consolidated and statutory financial statements for the yr finished December 31, 2020, ended up authorized by the Board of Directors on February seventeen, 2021. Adhering to their audit techniques on the consolidated financial statements for the yr finished December 31, 2020, the statutory auditors issued on April one, 2021 a competent opinion owing to a limitation on the scope of the audit as two US legal entities representing eleven% of 2020 consolidated revenue that demand extra diligences. For the sake of clarity, other than for the qualification bundled in the statutory auditors’ report on the consolidated financial statements for the yr finished December 31, 2020, the Group consolidated financial statements are audited and the financial statements bundled in the Common Registration Doc are unchanged when compared to the variation published by the Firm 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 financial statements.

Revenue organic and natural development is introduced at continuous scope and trade premiums.

Industries incorporate Production (Aerospace, Automotive, Chemicals, Customer Packaged Products (Food stuff & Beverage), Discrete Production, System Industries, Products and services and Siemens), Economical Products and services & Insurance policy (Insurance policy, Banking & Economical Products and services, and Small business Transformation Products and services), Community Sector & Defense (Defense, Schooling, Extraterritorial Corporations, Community Administration, Community Neighborhood Products and services and Significant Situations), Telecom, Media & Technological innovation (Higher Tech & Engineering, Media, and Telecom), Resources & Products and services (Strength, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Daily life Sciences (Healthcare and Pharmaceutical).

Regional Small business Units incorporate North The usa (United states of america, Canada, Guatemala and Mexico), Northern Europe (United Kingdom & Eire, 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 Rising Markets which includes Asia-Pacific (Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand), South The usa (Argentina, Brazil, Chile, Colombia, Uruguay, and Peru), Center East & Africa (Algeria, Benin, Burkina Faso, Egypt, Gabon, Ivory Coastline, Kenya, Kingdom of Saudi Arabia, Madagascar, Mali, Mauritius, Morocco, Qatar, Senegal, South Africa, Tunisia, Turkey and UAE), Significant Situations and Worldwide Supply Facilities.