Atos announces preliminary 2021 financial figures below objectives

Paris, January 10, 2022

Referring to EU regulation No. 596/2014, which gives that issuers shall tell the community as soon as achievable of within data directly pertinent to them, Atos announces now that the aims communicated to the industry on July 12, 2021 will not be met because of to various considerable effects described herein down below.

The figures in this press launch, together with the income development at continual currency, running margin price and cost-free money flow for the 12 months 2021, are not finalized at this phase nor audited. The thorough total 12 months figures for 2021, together with potential impairment additional to the assessment of the recoverable amount of money of property, will be published as planned on February 28, 2022 (after industry shut).

Rodolphe Belmer, Atos CEO, mentioned: “I joined the Company past week, at the time when the figures ended up currently being collected and consolidated. The existing point out of economic perception sales opportunities us to the obligation to issue a profit warning now because of to the considerable variance in the economic KPIs. However, most of the things fundamental this significant hole are non-recurring. In unique, the significant hole in Free of charge Hard cash Flow mainly stems from performing money.

I am confident that the Company has the important property and all the abilities to operate a swift turnaround. In this context, I will present at the finish of February a new firm to the Board of Directors, and in Q2 a program that will show the drivers of this turnaround and the concentration on worthwhile development and worth generation.”

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Profits development

Profits in 2021 reached c. € 10.eight billion, a lessen of c. -2.4% at continual currency.

The variance in comparison to the total-12 months aim of “stable” income arrived from:

  • The surprising reassessment of the cost to go on transformation, replatforming and operations of a economic expert services BPO deal, signed in 2018 for fifteen many years with a significant United kingdom economic institution, foremost to a significant revision of the completion price on the venture, at the finish of December 2021, and as a result translating into a adverse income impression in 2021.Effect on total-12 months income development: c. 70 bps
  • Large Info/HPCs and Unified Communications & Collaboration venture slippages from finish of 2021 to 2022 because of to provide chain issues as very well as to buyer postponements in Public Sector & Protection in the Netherlands and the United kingdom.Effect on total-12 months income development: c. ninety bps
  • Hold off to 2022 of remaining agreements with various significant shoppers to get compensated for further function carried out in 2021. These amendments, envisioned to be signed in December, would have led to extra income in 2021.Effect on total-12 months income development: thirty bps and
  • The diminished level of minimal margin hardware and software package resale in December 2021.Effect on total-12 months income development: c. fifty bps.

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Functioning margin

Functioning margin amounted to c. 4% of income in 2021. The variance in comparison to the aim of c. six% arrived mainly from:

  • The reduction of the income booked and extra costs in 2021 on the significant BPO deal in the United kingdom described earlier mentioned.Effect on running margin price: c. ninety bps

Additionally, the operate phase of the BPO deal on the remaining following 12 many years demands the provision of c. € sixty five million for potential losses beneath “Other Functioning Cash flow and Expenses”.

  • Project slippages to 2022 because of to provide chain issues as very well as to buyer postponements.Effect on running margin price: c. thirty bps
  • Hold off to 2022 of remaining agreements with various significant shoppers as described earlier mentioned to get compensated for further function carried out in 2021.Effect on running margin price: c. thirty bps and
  • Higher costs than predicted in 2021 on settlements to shut disputes with various shoppers at 12 months-finish.Effect on running margin price: c. forty bps.

 

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Free of charge Hard cash Flow

Free of charge Hard cash Flow is believed at c. €-420 million. The variance in comparison to the aim of positive cost-free money flow is mainly because of to performing money and in unique to:

  • € two hundred million from accelerated supplier payments at the finish of 2021, as a result of unforeseen pressure from vital suppliers and subcontractors in the remaining weeks of 2021
  • € a hundred and fifty million of buyer collections postponed from finish of 2021 to 2022 because of to the late acceptance of projects by various shoppers which in the long run prevented selection by 12 months-finish
  • € 60 million, of which € thirty million related to progress payments from shoppers and € thirty million impression from the significant BPO deal in the United kingdom described herein earlier mentioned and
  • € thirty million from the lessen level of sales of receivables.

As a reminder, the total 12 months Free of charge Hard cash Flow figure of €-420 million also includes the impression of the German turnaround program for €-180 million and a reduction of progress payments from shoppers for €-two hundred million, as communicated on July 12, 2021.

The Internet Debt at the finish of December 2021 is envisioned to be at c. €-1.2 billion foremost to a Internet Debt on OMDA (beneath IFRS) ratio of c. 1.1. Taking into account the Worldline shares masking the Optional Trade Bond, Internet Debt on OMDA ratio is believed at c. .eight.

The aims for 2022 will be published on February 28, 2022 at the situation of the total-12 months 2021 results launch.

 

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Appendix

2021 Aims 2021 Provisional figures
Profits development at continual currency Secure c. -2.4%
% Functioning Margin to income c. six% c. 4%
Free of charge Hard cash Flow Beneficial c. €-420 million

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Convention get in touch with

The Administration of Atos invites you to an international conference get in touch with, on Monday, January 10, 2022 at 08:00 am (CET – Paris) chaired by Rodolphe Belmer, CEO.

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

  • by means of the adhering to connection: https://edge.media-server.com/mmc/p/no379pbs
  • by telephone with the dial-in, 10 minutes prior the starting off time. Remember to observe that if you want to be a part of the webcast by telephone, you should sign up in progress of the conference making use of the adhering to connection: http://emea.directeventreg.com/registration/7025829

Upon registration, you will be presented with Participant Dial In Figures, a Immediate Occasion Passcode and a exceptional Registrant ID. For the duration of the 10 minutes prior to the commencing of the get in touch with, you will require to use the conference accessibility data presented in the e-mail acquired upon registration.

Right after the conference, a replay of the webcast will be offered on atos.internet, in the Buyers section.

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Forthcoming activities

February 28, 2022 (Right after Market Near) Total Calendar year 2021 results

April 27, 2022 (Right before Market Opening) 1st Quarter 2022 income

May eighteen, 2022 Yearly Typical Conference

July 27, 2022 (Right before Market Opening) 1st semester 2022 results

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Contacts

Investor Relations: Gilles Arditti – +33 1 73 26 00 66 – [email protected]

Media: Anette Rey – +33 six sixty nine 79 eighty four 88 – [email protected]

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About Atos

Atos is a world-wide leader in electronic transformation with 107,000 staff members and yearly income of about € eleven billion. European quantity just one in cybersecurity, cloud and significant overall performance computing, the Team gives personalized finish-to-finish remedies for all industries in seventy one countries. A pioneer in decarbonization expert services and products and solutions, Atos is committed to a protected and decarbonized electronic for its clientele. Atos is an SE (Societas Europaea), outlined on Euronext Paris and incorporated in the CAC forty ESG and Subsequent twenty indexes.

The goal of Atos is to assist layout the potential of the data space. Its know-how and expert services aid the development of knowledge, education and learning and research in a multicultural tactic and contribute to the development of scientific and technological excellence. Throughout the world, the Team allows its shoppers and staff members, and users of societies at significant to stay, function and build sustainably, in a safe and protected data space.

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Disclaimers

This document incorporates ahead-looking statements that require risks and uncertainties, together with references, about the Group’s envisioned development and profitability in the potential which may possibly substantially impression the envisioned overall performance indicated in the ahead-looking statements. These risks and uncertainties are linked to elements out of the handle of the Company and not precisely believed, this sort of as industry conditions or competitor’s behaviors. Any ahead-looking statements manufactured in this document are statements about Atos’ beliefs and anticipations and need to be evaluated as this sort of. Ahead-looking statements incorporate statements that may possibly relate to Atos’ plans, aims, techniques, aims, potential activities, potential revenues or synergies, or overall performance, and other data that is not historical data. True activities or results may possibly vary from these described in this document because of to a quantity of risks and uncertainties that are described within just the 2020 Universal Registration Doc filed with the Autorité des Marchés Financiers (AMF) on April 7, 2021 beneath the registration quantity D.21-0269 and the Amendment to the 2020 Universal Registration Documents filed with the AMF on July thirty, 2021 beneath quantity D.21-0269-A01. Atos does not undertake, and particularly disclaims, any obligation or duty to update or amend any of the data earlier mentioned besides as normally essential by regulation. This document does not have or represent an present of Atos’ shares for sale or an invitation or inducement to spend in Atos’ shares in France, the United States of The united states or any other jurisdiction.

Profits natural and organic development is presented at continual scope and trade premiums.

Industries incorporate Production (Aerospace, Automotive, Chemicals, Purchaser Packaged Merchandise (Foodstuff & Beverage), Discrete Production, System Industries, Expert services and Siemens), Fiscal Expert services & Insurance policy (Insurance policy, Banking & Fiscal Expert services, and Small business Transformation Expert services), Public Sector & Protection (Protection, Instruction, Extraterritorial Companies, Public Administration, Public Neighborhood Expert services and Significant Events), Telecom, Media & Engineering (Significant Tech & Engineering, Media, and Telecom), Sources & Expert services (Vitality, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Lifestyle Sciences (Healthcare and Pharmaceutical).

Regional Small business Models incorporate North The united states (United states, 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 Markets together with Asia-Pacific (Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand), South The united states (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), Significant Events and World-wide Supply Centers.