2021: A year of transition for Atos

Adjustment of Annual Objectives

Affirmation of Mid-phrase Targets

 

Paris, July twelve, 2021

Referring to EU regulation No. 596/2014, which gives that issuers shall advise the public as before long as feasible of inside facts immediately appropriate to them, Atos announces the adjustment of its 2021 once-a-year goals. The first semester figures are not finalized nor audited, the comprehensive first semester accounts will be revealed as planned on July 28, 2021.

For the duration of the next quarter, income growth at consistent currency arrived back again to steadiness. Nonetheless, natural and organic growth remained negative at c. -one.five% because of to an accelerated decline of legacy infrastructure enterprise in a context of a a lot stronger demand for publish-COVID cloud migration. The Team anticipates that this enterprise shift will persist during the next semester. The other Team corporations benefitted from the economic recovery driving a booming electronic demand. In this context, the Team adjusts its objective of income growth at consistent currency for the total yr to steady.

Although for this yr the Team experienced anticipated a increased seasonality between the first and next semester, operating margin was lower than expected in the first semester at c. five.five%. Considering the income adjustment around the total yr, impacting legacy routines with a lower brief phrase price tag flexibility, the Team adjusts its operating margin objective to c. 6.% for the total yr. As a consequence of this unprecedented affect on the enterprise, numerous outstanding merchandise (write-off of property, reduction provisions) have been booked under “Other Functioning 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 of charge money circulation amounted to c. €-364 million compared to €-172 million during 2020 first semester. Absolutely free money circulation was generally impacted by functioning capital and in distinct by a reduction in money in advance from shoppers. Going ahead, the Team decides to cut down money in advance from shoppers. The adjusted objective for 2021 is a positive free of charge money circulation, to replicate the impacts from the operating margin objective reduction, and functioning capital, more specifically on client advance payments. The new objective also assumes the entire one-off € 180 million money outflow in 2021 for the German turnaround system (see beneath).

Transformation agenda and mid-phrase targets

In this context, the Team has determined to accelerate its transformation -equally organically and inorganically- by expanding its achievements in, and concentrating on, Electronic, Cloud, Protection, and Decarbonization.

In distinct, the strategic portfolio assessment of non-core property is being finalized and the Team will communicate on its conclusions on July 28, 2021, so as to go to execution quickly.

Negotiations with social associates about the essential turnaround of the German infrastructure enterprise have concluded to a restructuring system of c. one,three hundred persons, delivering an added one% operating margin at Team stage mid-phrase. The system will be comprehensive on July 28, 2021.

After a yr of transition in 2021, the Team expects to improve on all its KPIs in 2022 and maintains its mid phrase targets of income growth at consistent currency from +five% to +7%, operating margin fee from 11% to twelve% and free of charge money circulation conversion over 60%.

North The usa Audit Abide by up

Pertaining to the audit of the US lawful entities, the Team determined in April this yr to accomplish a total accounting assessment of those people entities as of December 31, 2020, supported by exterior advisors.

This function is being finalized and at this phase misstatements determined are not product. The auditors’ function is also ongoing as portion of their 50 % yr assessment.

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

Moreover, the remediation and avoidance system has been finalized and is being rolled out.

Appendix

 

	Modified Objectives (July twelve, 2021)	First Objectives (February 18, 2021)
Profits growth at consistent currency	Secure	+three.five% to +4.%
% Functioning Margin to income	c. 6.%	nine.4% to nine.eight%
Absolutely free Money Circulation	Constructive	€550 to €600 million

 

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

You can join the webcast of the convention:

• by means of the adhering to website link: https://edge.media-server.com/mmc/p/cvgjqzz9
• by phone with the dial-in, ten minutes prior the starting up time. Please take note that if you want to join the webcast by phone, you ought to sign up in advance of the convention making use of the adhering to website link: http://emea.directeventreg.com/registration/9249267
  Upon registration, you will be offered with Participant Dial In Quantities, a Immediate Occasion Passcode and a unique Registrant ID. For the duration of the ten minutes prior to the starting of the get in touch with, you will have to have to use the convention accessibility facts offered in the e-mail received upon registration.

After the convention, a replay of the webcast will be obtainable on atos.net, in the Investors portion.

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

 

Forthcoming gatherings

July 28, 2021               1st semester 2021 outcomes

October 21, 2021         3rd quarter 2021 income

Obtain the push release in pdf 

Contacts

Investor Relations:

Gilles Arditti – +33 6 11 69 81 seventy four –  [email protected]

Media:

Anette Rey –  +33 6 69 79 84 88 – [email protected]

About Atos

Atos is a worldwide leader in electronic transformation with one zero five,000 staff members and once-a-year income of around € 11 billion. European number one in cybersecurity, cloud and large general performance computing, the Team gives tailor-made finish-to-finish answers for all industries in seventy one international locations. A pioneer in decarbonization services and products and solutions, Atos is fully commited to a protected and decarbonized electronic for its shoppers. Atos operates under the manufacturers Atos and Atos|Syntel. Atos is a SE (Societas Europaea), detailed on the CAC40 Paris stock index.

The purpose of Atos is to help design the foreseeable future of the facts house. Its expertise and services help the progress of understanding, education and learning and analysis in a multicultural tactic and add to the progress of scientific and technological excellence. Throughout the world, the Team allows its shoppers and staff members, and members of societies at massive to are living, function and develop sustainably, in a risk-free and protected facts house.

Disclaimers

This doc includes ahead-searching statements that contain risks and uncertainties, together with references, regarding the Group’s expected growth and profitability in the foreseeable future which might considerably affect the expected general performance indicated in the ahead-searching statements. These risks and uncertainties are connected to elements out of the control of the Company and not exactly approximated, these types of as current market circumstances or competition behaviors. Any ahead-searching statements created in this doc are statements about Atos’ beliefs and expectations and ought to be evaluated as these types of. Ahead-searching statements involve statements that might relate to Atos’ strategies, goals, methods, targets, foreseeable future gatherings, foreseeable future revenues or synergies, or general performance, and other facts that is not historic facts. Actual gatherings or outcomes might differ from those people described in this doc because of to a number of risks and uncertainties that are described in the 2020 Universal Registration Document filed with the Autorité des Marchés Financiers (AMF) on April 7, 2021 under the registration number D.21-0269. Atos does not undertake, and specifically disclaims, any obligation or duty to update or amend any of the facts over apart from as if not required by law. This doc does not have or constitute an present of Atos’ shares for sale or an invitation or inducement to commit in Atos’ shares in France, the United States of The usa or any other jurisdiction.

Atos consolidated and statutory economical statements for the yr finished December 31, 2020, had been permitted by the Board of Administrators on February seventeen, 2021. Subsequent their audit strategies on the consolidated economical statements for the yr finished December 31, 2020, the statutory auditors issued on April one, 2021 a certified feeling because of to a limitation on the scope of the audit as two US lawful entities representing 11% of 2020 consolidated income that demand added diligences. For the sake of clarity, apart from for the qualification provided in the statutory auditors’ report on the consolidated economical statements for the yr finished December 31, 2020, the Team consolidated economical statements are audited and the economical statements provided in the Universal Registration Document are unchanged compared to the model revealed by the Company on February 18, 2021. As of these days, the Team has not determined misstatements on the two US entities that are product for the consolidated economical statements.

Profits natural and organic growth is introduced at consistent scope and trade charges.

Industries involve Manufacturing (Aerospace, Automotive, Chemicals, Buyer Packaged Items (Meals & Beverage), Discrete Manufacturing, Process Industries, Providers and Siemens), Economical Providers & Insurance coverage (Insurance coverage, Banking & Economical Providers, and Organization Transformation Providers), Community Sector & Defense (Defense, Education, Extraterritorial Companies, Community Administration, Community Local community Providers and Major Activities), Telecom, Media & Engineering (Large Tech & Engineering, Media, and Telecom), Means & Providers (Power, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Lifetime Sciences (Healthcare and Pharmaceutical).

Regional Organization Models involve North The usa (Usa, 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 Growing Marketplaces together with 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), Major Activities and International Supply Facilities.