Atos presents today its mid-term Ambition: The Leader in Secure and Decarbonized Digital

Paris, June 24, 2020

Nowadays, at the celebration of a absolutely international and digital 2020 Analyst Day, the Group presents its Vision, Ambition and Strategy in the mid-expression.

Elie Girard, CEO claimed: “Atos’ ambition is to turn into the leader in secure and decarbonized digital. In excess of the subsequent decades, the Group will pivot toward development, leveraging on SPRING to go Atos to an Marketplace tactic and capture this decade’s new Cloud and Electronic breakthroughs, on Electronic Security to increase even more its leadership, and on Decarbonization where by Atos is a pioneer in bringing to its buyers its distinctive know-how each on main IT, and on enterprise procedures. Acquisitions of bolt-on Electronic experts as well as Cybersecurity professionals will greatly enhance Atos presenting and development profile.

As a outcome of this method, Electronic, Cloud, Security, and Decarbonization are expected to represent 65% of Group income in the mid-expression as opposed to 40% these days reflecting a important change in the Group presenting. Atos strong technological DNA, its longstanding international partnerships, as well as the strong shopper obsession culture of its 110 000 colleagues, are the perfect strengths to interact in this journey.

With no fiscal leverage and hence the necessary fiscal solidity to go forward, Atos is absolutely geared to access its mid-expression targets for the reward of all its stakeholders.”

Mid-expression targets

The Group’s ambition is to access the next targets in the mid-expression:

• Revenue development at constant currency: +five% to +7%
• Functioning margin amount: 11% to twelve% of income
• Totally free money stream: an functioning margin conversion amount to absolutely free money stream above sixty%.

The Group confirms all the objectives for 2020 as communicated as of April 22, 2020 at the celebration of its Q1 2020 income release.

Vision, Ambition & Strategy

The Group thinks that Digitalization has delivered only a fraction of its likely. When the info deluge of the last decade will accelerate, it will now be topped by a profusion of info-driven expert services. In this new era, buyers are calling for value – they want end result-dependent expert services –, knowledge – they want revolutionary and versatile expert services –, and basic safety – they want secure and decarbonized expert services.

All those shopper phone calls focus on 7 critical digital breakthroughs which turn into development levers for Atos leveraging on its techniques and property (through the Analyst Day a distinct session will be focused to each of these digital breakthroughs):

1) Complete Stack Cloud

The go to the Cloud is accelerating into Hybrid Cloud (Private and Public Clouds), multi-Cloud (across quite a few Public Clouds), and convergent Cloud procedures (migration and modernization of Information, Platforms and Programs collectively) constructing a holistic tactic to the Cloud, a Complete Stack Cloud. This evolution calls for an improved orchestration function. In addition, the most complex application landscapes have began to go into the Cloud. Atos is constructing on its new profile (Software Modernization abilities from Syntel), its longstanding abilities in Enterprise Essential Programs and SAP, and its strong proximity with Hyperscalers to seize this Complete Stack Cloud shaping and acceleration.

two) Enterprise Essential Programs

Digitalization accelerates into Enterprise Essential Programs territory demanding an intensification of cloudification, Information analytics, IoT, area info processing, and 5G. Enterprise continuity criticality emphasised through the Covid-19 disaster has been fostering even more this pattern. Atos is leveraging on its DNA in vertical Enterprise Essential Programs improved by SPRING transformation, and its area info processing abilities (Edge computing) to capture this pure sizeable market prospect.

three) Electronic Platforms

Electronic Platforms have turn into the 1st enterprise transformation precedence of CEOs for the decades to come, and will be originating an believed 70% of the new value designed in the overall economy. Electronic Platforms, which enable the sharing info from enterprises within or across value chains, is a transformative pattern with a substantial untapped prospect in the B2B planet. Through its conclusion-to-conclusion digital abilities put together with a deep industry understanding, Atos, as a acknowledged leader in Security and Computing, is ideally positioned as the neutral enterprise Electronic Platforms’ operator.

4) Customer Working experience

In this new era of Digitialization, Customer Working experience will be critical to increase the access of the newly designed info-driven expert services. This will go away the sole area of person interface to encompass even more immersive knowledge, true-time innovation and seamless omni-channel, as well as “No Person Interface” logics. Atos leverages on IP-driven remedies to deliver technologies this kind of as Synthetic Intelligence/Equipment Finding out (AI/ML), IoT / Edge (Local Computing), and true-time Cloud and Software architectures to Customer Working experience territory to unleash the ability of Digitalization.

five) Worker Working experience

Even further to the Covid-19 disaster, the Group, who is presently a Electronic Place of work market leader, estimates that corporations will go from ten% to far more than 40% of perform-from-residence in the new usual. Leaving behind the swift fixes implemented through the disaster, the interval to come will see Electronic Place of work replaced by a holistic Worker Working experience tactic, together with reimagined collaboration and versatile performing. Setting up on its strong Unified Communications and Security remedies, its husband or wife ecosystem, and its Marketplace distinct Structure Thinking and Personas, Atos intends to turn into the distant leader in Worker Working experience in the new usual.

six) Digital Security

Electronic Security encompasses Cybersecurity, but also Mission Essential Devices, IoT Security, and Financial Security – pointing at the willingness from buyers not to count on a one know-how company. Cybersecurity is evolving at a pretty swift tempo because of to an at any time modifying Cyber menace landscape, a pervasive Information natural environment, and an improved assault surface area ensuing from « hybrid digital ». Atos is these days #three in Cybersecurity expert services globally, and has created a distinctive Cybersecurity innovation track record in buy to defend conclusion buyers, IoT and Information as well as detecting and responding to threats with its prescriptive Security Operation Centers. The Group intends to enhance its technologies by means of Managed extended Detection & Response, Privilege Access Administration, and Cloud Encryption. The Group ambitions to access far more than €2bn income in Electronic Security in the mid-expression.

7) Decarbonization

Atos has created in excess of the earlier ten decades a distinctive Decarbonization abilities, well acknowledged by all sustainability rankings. The Group has made the decision to announce these days its motivation to be Web-Zero Carbon by 2035, reinforcing its leadership. Decarbonization is now moving into the Boardrooms of buyers, and is supported by unparalleled general public procedures and societal aspirations. Atos can leverage on its distinctive know-how to shape new Decarbonization value propositions to buyers, each in main IT and in enterprise procedures, and seize a market prospect achieving close to $30bn for the sole Inexperienced IT in 2024. Offerings variety from Decarbonization assessments to the introduction in massive contracts of CO_two reduction commitments by means of DLA (Decarbonization Stage Agreements), and the use of critical technologies this kind of as IoT, Cloud, AI & Analytics, Electronic Twin to decarbonize carbon intensive enterprise procedures. Atos expects to create far more than €500m income in the mid-expression in Decarbonization.

Based mostly on the above Electronic breakthroughs, its distinctive techniques and property, Atos ambitions to turn into the Leader in Safe and Decarbonized Electronic.

Use of money and M&A policy

The Group maintains its dividend policy likely forward with a payout ratio between 25% and thirty% of internet income Group share. The remaining Totally free money stream will be utilized to self-finance acquisitions (and to buy back a restricted variety of shares to provide prolonged-expression incentive strategies). The Group targets bolt-on acquisitions to raise critical portfolio choices, and Cybersecurity businesses. Looking at its internet credit card debt absolutely free situation, leverage continues to be available for sizeable and transformative M&A. This use of money and M&A policy with proceed to be underpinned by a stringent fiscal self-discipline.

Atos announces these days two bolt-on acquisitions as part of its M&A policy: Paladion, a international cybersecurity participant in cloud-indigenous Managed Detection & Response, and Alia, a main digital consulting firm specialized in S/4 HANA transformation for the strength sector (see two individual press releases issued these days).

Replay

A replay of the occasion will be available for every session on atos.internet, in the Buyers part.

Forthcoming occasion

July 27, 2020               Initially fifty percent 2020 final results

Oct 22, 2020         Third quarter 2020 income

Download the release in pdf

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Contacts

Investor Relations:

Gilles Arditti – +33 1 73 26 00 sixty six – [email protected]

Media:

Sylvie Raybaud – +33 six ninety five 91 ninety six 71 – [email protected]

About Atos

Atos is a international leader in digital transformation with 110,000 workforce in 73 international locations and once-a-year income of € twelve billion. European variety a single in Cloud, Cybersecurity and High-Efficiency Computing, the Group presents conclusion-to-conclusion Orchestrated Hybrid Cloud, Major Information, Enterprise Programs and Electronic Place of work remedies. The Group is the All over the world Details Technological innovation Lover for the Olympic & Paralympic Online games and operates less than the models Atos, Atos|Syntel, and Unify. Atos is a SE (SocietasEuropaea), listed on the CAC40 Paris stock index.

The function of Atos is to help design the foreseeable future of the data space. Its abilities and expert services assistance the growth of understanding, schooling and exploration in a multicultural tactic and add to the growth of scientific and technological excellence. Throughout the planet, the Group enables its buyers and workforce, and associates of societies at massive to stay, perform and produce sustainably, in a safe and secure data space.

Disclaimers

This document consists of forward-seeking statements that involve dangers and uncertainties, together with references, regarding the Group’s expected development and profitability in the foreseeable future which may considerably effect the expected functionality indicated in the forward-seeking statements. These dangers and uncertainties are connected to things out of the control of the Enterprise and not precisely believed, this kind of as market ailments or competitors behaviors. Any forward-seeking statements built in this document are statements about Atos’ beliefs and expectations and really should be evaluated as this kind of. Forward-seeking statements contain statements that may relate to Atos’ strategies, objectives, procedures, plans, foreseeable future functions, foreseeable future revenues or synergies, or functionality, and other data that is not historic data. True functions or final results may differ from people explained in this document because of to a variety of dangers and uncertainties that are explained within the the 2019 Common Registration Document submitted with the Autorité des Marchés Financiers (AMF) on March three, 2020 less than the registration variety D.twenty-0096. Atos does not undertake, and especially disclaims, any obligation or obligation to update or amend any of the data above apart from as if not necessary by law. This document does not incorporate or represent an offer you of Atos’ shares for sale or an invitation or inducement to devote in Atos’ shares in France, the United States of The united states or any other jurisdiction.

Revenue organic development and Functioning margin are introduced as outlined in the 2019 Common Registration Document. Mid-Expression once-a-year income development is introduced at constant trade rates.

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