2021: A year of transition for Atos

Adjustment of Yearly Aims

Affirmation of Mid-phrase Targets

Paris, July twelve, 2021

Referring to EU regulation No. 596/2014, which delivers that issuers shall notify the general public as quickly as feasible of within information specifically applicable to them, Atos announces the adjustment of its 2021 yearly targets. The initial semester figures are not finalized nor audited, the comprehensive initial semester accounts will be published as planned on July 28, 2021.

In the course of the next quarter, profits progress at consistent currency arrived back to security. On the other hand, organic progress remained detrimental at c. -one.five% due to an accelerated decline of legacy infrastructure company in a context of a significantly stronger desire for submit-COVID cloud migration. The Group anticipates that this company change will persist all through the next semester. The other Group companies benefitted from the economic restoration driving a booming digital desire. In this context, the Group adjusts its aim of profits progress at consistent currency for the total yr to secure.

While for this yr the Group had expected a bigger seasonality concerning the initial and next semester, running margin was lower than predicted in the initial semester at c. five.five%. Taking into consideration the profits adjustment about the total yr, impacting legacy actions with a lower quick phrase expense overall flexibility, the Group adjusts its running margin aim to c. 6.% for the total yr. As a consequence of this unprecedented effects on the company, a number of fantastic products (generate-off of assets, decline provisions) have been booked less than “Other Working Money and Expenses”. This line amounted to a whole of c. €-a hundred and sixty million in the initial semester.

In the course of the initial semester, totally free hard cash move amounted to c. €-364 million when compared to €-172 million all through 2020 initial semester. Cost-free hard cash move was mainly impacted by doing the job cash and in distinct by a reduction in hard cash in advance from shoppers. Shifting ahead, the Group decides to decrease hard cash in advance from shoppers. The altered aim for 2021 is a favourable totally free hard cash move, to mirror the impacts from the running margin aim reduction, and doing the job cash, additional precisely on shopper advance payments. The new aim also assumes the whole just one-off € one hundred eighty million hard cash outflow in 2021 for the German turnaround plan (see down below).

Transformation agenda and mid-phrase targets

In this context, the Group has made a decision to accelerate its transformation -both of those organically and inorganically- by expanding its achievements in, and focusing on, Electronic, Cloud, Security, and Decarbonization.

In distinct, the strategic portfolio critique of non-core assets is getting finalized and the Group will talk on its conclusions on July 28, 2021, so as to transfer to execution swiftly.

Negotiations with social partners with regards to the essential turnaround of the German infrastructure company have concluded to a restructuring plan of c. one,300 folks, giving an further one% running margin at Group stage mid-phrase. The plan will be comprehensive on July 28, 2021.

Right after a yr of changeover in 2021, the Group expects to boost on all its KPIs in 2022 and maintains its mid phrase targets of profits progress at consistent currency from +five% to +seven%, running margin level from 11% to twelve% and totally free hard cash move conversion above 60%.

North The united states Audit Stick to up

Relating to the audit of the US lawful entities, the Group made a decision in April this yr to complete a total accounting critique of those people entities as of December 31, 2020, supported by external advisors.

This operate is getting finalized and at this phase misstatements discovered are not material. The auditors’ operate is also ongoing as portion of their 50 percent yr critique.

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

Aside from, the remediation and avoidance plan has been finalized and is getting rolled out.

Appendix

The Management of Atos invites you to an worldwide meeting connect with, on Monday, July twelve, 2021 at 08:00 am (CET – Paris).

You can be part of the webcast of the meeting:

• by way of the adhering to hyperlink: https://edge.media-server.com/mmc/p/cvgjqzz9
• by telephone with the dial-in, 10 minutes prior the commencing time. Please take note that if you want to be part of the webcast by telephone, you have to register in advance of the meeting working with the adhering to hyperlink: http://emea.directeventreg.com/registration/9249267
  On registration, you will be supplied with Participant Dial In Figures, a Direct Party Passcode and a unique Registrant ID. In the course of the 10 minutes prior to the starting of the connect with, you will require to use the meeting entry information supplied in the e mail been given on registration.

Right after the meeting, a replay of the webcast will be accessible on atos.net, in the Investors section.

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

Forthcoming activities

July 28, 2021               First semester 2021 effects

October 21, 2021         Third quarter 2021 profits

Obtain the push release in pdf 

Contacts

Trader Relations:

Gilles Arditti – +33 6 11 sixty nine eighty one seventy four –  [email protected]

Media:

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

About Atos

Atos is a world leader in digital transformation with 105,000 staff and yearly profits of about € 11 billion. European number just one in cybersecurity, cloud and superior performance computing, the Group delivers tailor-made end-to-end methods for all industries in 71 countries. A pioneer in decarbonization expert services and items, Atos is dedicated to a secure and decarbonized digital for its clients. Atos operates less than the models Atos and Atos|Syntel. Atos is a SE (Societas Europaea), listed on the CAC40 Paris inventory index.

The reason of Atos is to support style the future of the information space. Its skills and expert services support the growth of expertise, education and research in a multicultural strategy and add to the growth of scientific and technological excellence. Throughout the entire world, the Group enables its shoppers and staff, and associates of societies at significant to stay, operate and acquire sustainably, in a protected and secure information space.

Disclaimers

This document incorporates ahead-searching statements that require dangers and uncertainties, like references, relating to the Group’s predicted progress and profitability in the future which may perhaps considerably effects the predicted performance indicated in the ahead-searching statements. These dangers and uncertainties are connected to elements out of the regulate of the Corporation and not exactly approximated, these kinds of as industry problems or competition behaviors. Any ahead-searching statements built in this document are statements about Atos’ beliefs and anticipations and ought to be evaluated as these kinds of. Forward-searching statements incorporate statements that may perhaps relate to Atos’ strategies, targets, methods, ambitions, future activities, future revenues or synergies, or performance, and other information that is not historic information. True activities or effects may perhaps vary from those people described in this document due to a number of dangers and uncertainties that are described in the 2020 Universal Registration Doc submitted with the Autorité des Marchés Financiers (AMF) on April seven, 2021 less than the registration number D.21-0269. Atos does not undertake, and precisely disclaims, any obligation or obligation to update or amend any of the information above apart from as in any other case necessary by legislation. This document does not comprise or constitute an offer you of Atos’ shares for sale or an invitation or inducement to invest in Atos’ shares in France, the United States of The united states or any other jurisdiction.

Atos consolidated and statutory economical statements for the yr ended December 31, 2020, have been accredited by the Board of Administrators on February seventeen, 2021. Following their audit treatments on the consolidated economical statements for the yr ended December 31, 2020, the statutory auditors issued on April one, 2021 a qualified belief due to a limitation on the scope of the audit as two US lawful entities symbolizing 11% of 2020 consolidated profits that demand further diligences. For the sake of clarity, apart from for the qualification integrated in the statutory auditors’ report on the consolidated economical statements for the yr ended December 31, 2020, the Group consolidated economical statements are audited and the economical statements integrated in the Universal Registration Doc are unchanged when compared to the edition published by the Corporation on February eighteen, 2021. As of today, the Group has not discovered misstatements on the two US entities that are material for the consolidated economical statements.

Profits organic progress is introduced at consistent scope and exchange prices.

Industries incorporate Production (Aerospace, Automotive, Substances, Customer Packaged Products (Foodstuff & Beverage), Discrete Production, Procedure Industries, Products and services and Siemens), Money Products and services & Insurance policy (Insurance policy, Banking & Money Products and services, and Business Transformation Products and services), Public Sector & Protection (Protection, Training, Extraterritorial Organizations, Public Administration, Public Local community Products and services and Important Activities), Telecom, Media & Know-how (Significant Tech & Engineering, Media, and Telecom), Means & Products and services (Electricity, Retail, Transportation & Hospitality, and Utilities) and Health care & Existence Sciences (Health care and Pharmaceutical).

Regional Business Models incorporate North The united states (United states of america, 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 Rising Marketplaces like 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), 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), Important Activities and Worldwide Shipping and delivery Facilities.