Third quarter of 2021 – Atos

Revenue steady at € 2,666 million
at consistent currency

Purchase entry at € 2,399 million

Reserve to monthly bill ratio at ninety%

Electronic, Cloud, Protection & Decarbonization at fifty two% of profits

Net organic and natural boost of talents by +one,500

Team Transformation applications going at velocity

2021 goals confirmed

Paris, Oct 20, 2021 – Atos, a world chief in electronic transformation, right now announces the profits of its 3rd quarter of 2021.

In the 3rd quarter, the Team ongoing to stabilize its profits at consistent currency, in advance of progressing into constructive territory. Market place desire article crisis remained really dynamic in Cloud application migration and improvement and the Electronic transformation of small business procedures through automation, robotisation and synthetic intelligence. In all locations, prospects now call for electronic alternatives with the greatest benchmarks of security, sustainability and inclusiveness, a few domains in which Atos delivers distinctive technological skills.

The Team ongoing to pursue its deep and vast small business transformation prepare, employing a document number of new techniques in a really incredibly hot expertise current market, ensuing for the initially time in a net organic and natural boost of +one,500 personnel. This will aid fuel our advancement ambitions. In the exact same vein, we bolstered our partnerships with Public Cloud hyperscalers while placing new kinds with high advancement Electronic platforms.

Our transformation applications declared in July are going at velocity on all fronts. The German restructuring is properly under way. The prepare to glimpse for partners on c. 20% of the Team profits is getting executed with sophisticated discussions on our Unified Communications & Collaboration asset. The acquisition of a new electronic bolt-on asset has been signed. Ultimately, our LEAP cultural transform method is ramping up.

The Team Management wants to thank our 107,000 colleagues for their large help for and dedication to this transformation journey, which is placing the ideal foundations for reaching our mid-expression targets.

Q3 2021 profits by Market

Revenue in the 3rd quarter of 2021 arrived at € 2,666 million, steady when compared to Q3 2020 at consistent currency, and lowering by -2.3% organically. The key segments to which the Team directs its transformation – Electronic, Cloud, Protection and Decarbonization – done a strong advancement while profits was however impacted in Typical Infrastructure.

Manufacturing described a profits of € 518 million, symbolizing 19% of the Team profits and raising by +10.four% when compared to Q3 2020 at consistent currency. This was an acceleration of its recovery just after a next quarter presently rising by +one.8%. Just about every geography contributed to this strong advancement, driven by a repositioning of the Market on larger value electronic tasks and alternatives to fulfill customer needs. More especially, the Market greater small business in application tasks ran in Automotive and Aerospace, as properly as digitization of industrial procedures which includes IoT based mostly wise manufacturing offerings.

Money Expert services & Insurance profits was € 524 million all through the 3rd quarter of 2021, symbolizing 20% of the Team profits. Raising by +2.3% when compared to Q3 2020 at consistent currency, the Market confirmed its overall performance of the initially semester, in particular in the Insurance sector while action with Banking institutions was far more contrasted. Business in this Market ongoing to be led by electronic transformation tasks and a strong desire for cybersecurity skills, both equally covered by the offerings of the Team and the synergies with the recently acquired organizations these as Eagle Creek, Electronic.Protection, and Paladion.

Public Sector & Protection arrived at € 553 million symbolizing 21% of the Team profits and lowering 12 months-on-12 months at consistent currency by -eleven.9% just after a +thirteen.% in Q3 2020. This minimize came from quantity reduction in substantial Significant Functionality Computing (HPC) tasks delivered last 12 months in most of the geographies and far more especially in Northern Europe, as properly as the last quarter of 12 months-on-12 months effect from the substantial reduction of scope of the Texas Section of Info Sources deal renewed last 12 months.

Telecom, Media & Technologies represented thirteen% of the Team profits and arrived at € 355 million, lowering by -2.% when compared to Q3 2020 at consistent currency. After a constructive next quarter, the Market had a far more difficult 3rd quarter as developments ended up mixed involving its distinctive sectors. Whilst tasks in the Media sector grew thanks to an greater quantity in North The usa, the circumstance was far more difficult in Significant Tech & Engineering as properly as in Telecom.

Revenue generated by Sources & Expert services in the 3rd quarter of 2021 arrived at € 383 million symbolizing 14% of the full profits of the Team. The marketplace managed to recuperate and grew by +one.five% when compared to Q3 2020 at consistent currency just after a minimize by -2.five% in the next quarter of 2021. The circumstance remained contrasted throughout its parts, with dynamism in Transportation & Hospitality, in particular in North T
he usa and Southern Europe, while the Retail and Electricity & Utilities sectors declined thanks to HPC sales not recurring this 12 months when compared to 2020.

Symbolizing twelve% of the Team profits with € 333 million, Healthcare & Existence Sciences grew by +five.one% in the 3rd quarter of 2021 12 months-on-12 months at consistent currency led by Northern Europe, Southern Europe, and Growing Marketplaces. In certain, the Healthcare sector recorded a really strong overall performance when compared to the 3rd quarter of 2020, which far more than compensated the decrease in Pharmaceutical.

Q3 2021 profits by Regional Business Unit

The the greater part of the Regions benefited from the rebound of the desire for Electronic transformation, Cloud, and Cybersecurity in the sectors that have been impacted the most last 12 months these as Manufacturing and Hospitality & Transportation. They benefited also from a excellent momentum in Healthcare & Existence Sciences and Money Expert services & Insurance. Merged with synergies initiated from the new acquisitions, the Team managed to compensate the decrease in Public Sector & Protection coming from quantity reduction and some substantial HPCs delivered last 12 months in various geographies.

Revenue advancement at consistent currency was strong in Southern Europe and in Growing Marketplaces.

In Southern Europe, the action was solid in most of the Industries which includes Public Sector & Protection.

Growing Marketplaces ongoing on its craze at circa +five% advancement led by the ramp-up of tasks in Asia in Healthcare & Existence Sciences as properly as in Telecom, Media & Technologies in Brazil and in Manufacturing through quantity boost and new tasks.

North The usa managed to make advancement at consistent currency in all Industries except Public Sector & Protection impacted by the Texas Section of Info Sources deal and by Unified Communications & Collaboration things to do.

Northern Europe recorded a strong action in Manufacturing with Electronic Transformation tasks as properly as in Healthcare & Existence Sciences. But this geography faced unfavourable base effect on Significant Functionality Computing in Public Sector & Protection.

Ultimately, Central Europe significantly enhanced its profits craze when compared to -10.3% in Q2 thanks to Manufacturing ramp-up of tasks and new contracts.

Industrial action

All through the 3rd quarter of 2021, the Team purchase entry arrived at € 2,399 million symbolizing a Reserve-to-Monthly bill ratio of ninety%.

The key new contracts signed around the period included notably:

• in Manufacturing a deal with a substantial European Automotive provider for the migration to S/four Hana Cloud (Central Europe)
• in Money Expert services & Insurance a deal with a US world Insurance company for a migration to Public Cloud combining Atos, Syntel, and Maven Wave abilities (North The usa)
• in Public Sector & Protection a substantial deal with a Public authority for a Electronic Transformation task (Northern Europe)
• in Telecom, Media & Technologies a Electronic Transformation deal embarking Cloud, Protection, and Decarbonization services with a European Significant Tech chief (Northern Europe)
• in Sources & Expert services a deal with a substantial European Utility for distribution network administration and control combining SAP and Atos Electricity alternatives (Southern Europe) and
• in Healthcare & Existence Sciences a deal with a substantial Healthcare chief for the improvement of electronic tool to increase affected person encounter (North The usa).

Agreement renewals of the quarter included, in Manufacturing a substantial European automobile manufacturer with an extension to help customer in acquiring information-based mostly Cloud services (Southern Europe), in Money Expert services & Insurance a significant financial institution to migrate complex information center and programs (Growing Marketplaces), and a scope extension with a substantial retailer Sources & Expert services (North The usa).

Comprehensive backlog amounted to € 23.four billion at the stop of September 2021, marginally down when compared to June 2021. It represented 2.one several years of profits. Full experienced pipeline arrived at € seven.four billion steady when compared to June 2021. It represented seven.9 months of profits.

Human means

The full headcount was 106,665 at the stop of September 2021, an boost of +one,857, of which for the initially time +one,485 (+one.four%) organically in purchase to help the rapidly rising small business segments (Electronic, Cloud, Protection and Decarbonization) while the Team ongoing to minimize the number of staff members in Infrastructure things to do through automation and robotization.

In the 3rd quarter of 2021, the Team hired 8,019 staff members, the the greater part of whom in offshore and nearshore nations. Attrition LTM (Previous Twelve Months) arrived at 16% at the stop of September 2021.

2021 goals confirmed

The Team confirms all its goals for 2021:

• Revenue advancement at consistent currency: steady
• Running margin level: six%
• Absolutely free income movement: constructive.

Acquisition

The Team right now announces the acquisition of DataSentics, a European enterprise founded in 2016 and located in Prague. DataSentics specializes in Machine Learning and Cloud Details engineering. The enterprise functions on unifying information science and engineering throughout Europe. It employs ninety information experts. Its offerings will straight away complement Artificial Intelligence manufacturing facility method of Atos to help 5G and
Edge offerings and speed up key small business use instances in Manufacturing, Retail, and Telecommunications.

System to glimpse for partners to optimize Team property

As element of its transformation and to speed up its reprofiling towards Electronic, Cloud, Protection & Decarbonization, the Team declared on July 27, 2021 the launch of a substantial method to glimpse for partners on a quantity of small business symbolizing c. 20% of its present-day profits.

On Unified Communications & Collaboration, sophisticated discussions are at the moment ongoing.

On Details Centre hosting and related things to do, a official method has been released and various indications of fascination have been obtained.

Appendix

Revenue at consistent scope and exchange rates reconciliation

Scope results amounted to €+sixty three million for profits. They are predominantly connected to:

• the acquisitions shut in H2 2020 and in 2021 for €+68 million and
• the disposal of some specific Unified Communications & Collaboration things to do and Wivertis GmBH in 2020, amounting for a full of €-five million.

Forex exchange level results positively contributed to profits for €+22 million. They typically came from the appreciation of the British Pound from the Euro around the period.

Convention simply call

Tomorrow, Thursday, Oct 21, 2021, the Team will hold a convention simply call in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in purchase to comment on Atos’ Q3 2021 profits and remedy queries from the financial community.

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

• via the adhering to connection: https://edge.media-server.com/mmc/p/9dtvfypf
• by telephone with the dial-in, 10 minutes prior the starting time. Remember to be aware that if you want to be a part of the webcast by telephone, you must register in advance of the convention applying the adhering to connection:

http://emea.directeventreg.com/registration/5061859

Upon registration, you will be provided with Participant Dial In Quantities, a Immediate Party Passcode and a distinctive Registrant ID. Connect with reminders will also be sent via email the day prior to the event.

All through the 10 minutes prior to the beginning of the simply call, you will need to use the convention entry information and facts provided in the email obtained on registration.

After the convention, a replay of the webcast will be accessible on atos.net, in the Traders area.

Forthcoming activities

February 28, 2022 (After Market place Near) Comprehensive Year 2021 results

April 27, 2022 (Right before Market place Opening) Initially Quarter 2022 profits

May possibly eighteen, 2022 Once-a-year Basic Conference

July 27, 2022 (Right before Market place Opening) Initially semester 2022 results

Contacts

Trader Relations: Gilles Arditti – +33 six eleven sixty nine 81 74 – [email protected]

Media: Anette Rey – +33 six sixty nine seventy nine 84 88 – [email protected]

***

Obtain the PDF edition of the document here

About Atos

Atos is a world chief in electronic transformation with 107,000 personnel and once-a-year profits of around € eleven billion. European number one particular in cybersecurity, cloud and high overall performance computing, the Team offers tailored stop-to-stop alternatives for all industries in seventy one nations. A pioneer in decarbonization services and products and solutions, Atos is dedicated to a secure and decarbonized electronic for its clients. Atos is an SE (Societas Europaea), mentioned on Euronext Paris and included in the CAC 40 ESG and Future 20 indexes.

The objective of Atos is to aid structure the potential of the information and facts area. Its skills and services help the improvement of expertise, education and investigation in a multicultural technique and add to the improvement of scientific and technological excellence. Throughout the world, the Team permits its prospects and personnel, and customers of societies at substantial to live, do the job and establish sustainably, in a safe and secure information and facts area.

Disclaimers

This document includes forward-wanting statements that require threats and uncertainties, which includes references, about the Group’s anticipated advancement and profitability in the potential which may perhaps significantly affect the anticipated overall performance indicated in the forward-wanting statements. These threats and uncertainties are linked to factors out of the control of the Organization and not specifically approximated, these as current market conditions or competitor’s behaviors. Any forward-wanting statements designed in this document are statements about Atos’ beliefs and anticipations and should really be evaluated as these. Ahead-wanting statements involve statements that may perhaps relate to Atos’ options, goals, approaches, objectives, potential activities, potential revenues or synergies, or overall performance, and other information and facts that is not historical information and facts. Real activities or results may perhaps vary from those people described in this document thanks to a number of threats and uncertainties that are described inside the 2020 Common Registration Doc submitted with the Autorité des Marchés Financiers (AMF) on April seven, 2021 under the registration number D.21-0269 and the Modification to the 2020 Common Registration Documents submitted with the AMF on July thirty, 2021 under number D.21-0269-A01. Atos does not undertake, and specifically disclaims, any obligation or duty to update or amend any of the information and facts over except as usually necessary by law. This document does not consist of or constitute an present of Atos’ shares for sale or an invitation or inducement to make investments in Atos’ shares in France, the United States of The usa or any other jurisdiction.

Revenue organic and natural advancement is presented at consistent scope and exchange rates.

Industries involve Manufacturing (Aerospace, Automotive, Chemical substances, Consumer Packaged Products (Food stuff & Beverage), Discrete Manufacturing, System Industries, Expert service
s and Siemens), Money Expert services & Insurance (Insurance, Banking & Money Expert services, and Business Transformation Expert services), Public Sector & Protection (Protection, Schooling, Extraterritorial Companies, Public Administration, Public Community Expert services and Important Events), Telecom, Media & Technologies (Significant Tech & Engineering, Media, and Telecom), Sources & Expert services (Electricity, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Existence Sciences (Healthcare and Pharmaceutical).

Regional Business Models involve North The usa (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 Growing Marketplaces 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), 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), Important Events and World-wide Shipping and delivery Facilities.