Atos announces preliminary 2021 financial figures below objectives

Paris, January ten, 2022

Referring to EU regulation No. 596/2014, which supplies that issuers shall advise the general public as before long as probable of inside of information and facts straight applicable to them, Atos announces now that the objectives communicated to the marketplace on July twelve, 2021 will not be satisfied thanks to quite a few major consequences explained herein down below.

The figures in this press launch, which include the profits growth at frequent currency, functioning margin charge and no cost income move for the year 2021, are not finalized at this phase nor audited. The thorough full year figures for 2021, which include prospective impairment further to the evaluation of the recoverable amount of assets, will be posted as prepared on February 28, 2022 (immediately after marketplace close).

Rodolphe Belmer, Atos CEO, stated: “I joined the Corporation very last week, at the time when the figures were being becoming collected and consolidated. The present point out of fiscal insight leads us to the obligation to problem a revenue warning now thanks to the major variance in the fiscal KPIs. Having said that, most of the things underlying this extreme hole are non-recurring. In certain, the large hole in Free of charge Hard cash Movement generally stems from functioning cash.

I am certain that the Corporation has the vital assets and all the skills to function a swift turnaround. In this context, I will current at the conclusion of February a new organization to the Board of Directors, and in Q2 a system that will display the drivers of this turnaround and the focus on worthwhile growth and price development.”

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Profits growth

Profits in 2021 achieved c. € ten.eight billion, a minimize of c. -two.four% at frequent currency.

The variance when compared to the full-year objective of “stable” profits came from:

• The sudden reassessment of the cost to go on transformation, replatforming and operations of a fiscal solutions BPO contract, signed in 2018 for fifteen yrs with a large Uk fiscal institution, foremost to a important revision of the completion charge on the task, at the conclusion of December 2021, and for that reason translating into a adverse profits impression in 2021.Impression on full-year profits growth: c. 70 bps

• Significant Info/HPCs and Unified Communications & Collaboration task slippages from conclusion of 2021 to 2022 thanks to provide chain difficulties as very well as to customer postponements in Community Sector & Defense in the Netherlands and the Uk.Impression on full-year profits growth: c. ninety bps

• Delay to 2022 of closing agreements with quite a few large prospects to get compensated for further perform carried out in 2021. These amendments, expected to be signed in December, would have led to extra profits in 2021.Impression on full-year profits growth: 30 bps and

• The decreased level of very low margin hardware and application resale in December 2021.Impression on full-year profits growth: c. fifty bps.

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Running margin

Running margin amounted to c. four% of profits in 2021. The variance when compared to the objective of c. six% came generally from:

• The reduction of the profits booked and extra expenditures in 2021 on the large BPO contract in the Uk pointed out higher than.Impression on functioning margin charge: c. ninety bps

Additionally, the operate section of the BPO contract on the remaining upcoming twelve yrs needs the provision of c. € 65 million for foreseeable future losses beneath “Other Running Cash flow and Expenses”.

• Project slippages to 2022 thanks to provide chain difficulties as very well as to customer postponements.Impression on functioning margin charge: c. 30 bps

• Delay to 2022 of closing agreements with quite a few large prospects as pointed out higher than to get compensated for further perform carried out in 2021.
  Impression on functioning margin charge: c. 30 bps and

• Bigger expenditures than expected in 2021 on settlements to close disputes with quite a few prospects at year-conclusion.Impression on functioning margin charge: c. 40 bps.

 

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Free of charge Hard cash Movement

Free of charge Hard cash Movement is approximated at c. €-420 million. The variance when compared to the objective of positive no cost income move is generally thanks to functioning cash and in certain to:

• € 200 million from accelerated supplier payments at the conclusion of 2021, as a result of unexpected force from important suppliers and subcontractors in the closing months of 2021

• € a hundred and fifty million of customer collections postponed from conclusion of 2021 to 2022 thanks to the late acceptance of jobs by quite a few prospects which in the long run prevented selection by year-conclusion

• € 60 million, of which € 30 million similar to advance payments from prospects and € 30 million impression from the large BPO contract in the Uk pointed out herein higher than and

• € 30 million from the reduced level of gross sales of receivables.

As a reminder, the full year Free of charge Hard cash Movement figure of €-420 million also comprises the impression of the German turnaround system for €-a hundred and eighty million and a reduction of advance payments from prospects for €-200 million, as communicated on July twelve, 2021.

The Web Credit card debt at the conclusion of December 2021 is expected to be at c. €-one.two billion foremost to a Web Credit card debt on OMDA (beneath IFRS) ratio of c. one.one. Taking into account the Worldline shares masking the Optional Exchange Bond, Web Credit card debt on OMDA ratio is approximated at c. .eight.

The objectives for 2022 will be posted on February 28, 2022 at the event of the full-year 2021 effects launch.

 

Obtain the PDF version here

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Appendix

	2021 Aims	2021 Provisional figures
Profits growth at frequent currency	Steady	c. -two.four%
% Running Margin to profits	c. six%	c. four%
Free of charge Hard cash Movement	Positive	c. €-420 million

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Convention phone

The Management of Atos invitations you to an worldwide meeting phone, on Monday, January ten, 2022 at 08:00 am (CET – Paris) chaired by Rodolphe Belmer, CEO.

You can be part of the webcast of the meeting:

• via the adhering to url: https://edge.media-server.com/mmc/p/no379pbs
• by phone with the dial-in, ten minutes prior the beginning time. Make sure you be aware that if you want to be part of the webcast by phone, you need to register in advance of the meeting utilizing the adhering to url: http://emea.directeventreg.com/registration/7025829

Upon registration, you will be supplied with Participant Dial In Numbers, a Immediate Function Passcode and a one of a kind Registrant ID. For the duration of the ten minutes prior to the beginning of the phone, you will want to use the meeting access information and facts supplied in the e mail obtained on registration.

After the meeting, a replay of the webcast will be obtainable on atos.web, in the Investors section.

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Forthcoming functions

February 28, 2022 (After Market Near) Whole Calendar year 2021 effects

April 27, 2022 (Ahead of Market Opening) Very first Quarter 2022 profits

May possibly eighteen, 2022 Annual Typical Meeting

July 27, 2022 (Ahead of Market Opening) Very first semester 2022 effects

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Contacts

Trader Relations: Gilles Arditti – +33 one seventy three 26 00 66 – [email protected]

Media: Anette Rey – +33 six 69 seventy nine eighty four 88 – [email protected]

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About Atos

Atos is a worldwide leader in electronic transformation with 107,000 personnel and yearly profits of above € 11 billion. European variety a person in cybersecurity, cloud and large performance computing, the Group supplies personalized conclusion-to-conclusion solutions for all industries in seventy one nations. A pioneer in decarbonization solutions and products and solutions, Atos is dedicated to a safe and decarbonized electronic for its consumers. Atos is an SE (Societas Europaea), detailed on Euronext Paris and included in the CAC 40 ESG and Upcoming twenty indexes.

The intent of Atos is to help design and style the foreseeable future of the information and facts place. Its knowledge and solutions guidance the development of understanding, schooling and investigate in a multicultural approach and contribute to the development of scientific and technological excellence. Across the globe, the Group enables its prospects and personnel, and users of societies at large to dwell, perform and establish sustainably, in a secure and safe information and facts place.

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Disclaimers

This doc contains ahead-searching statements that require pitfalls and uncertainties, which include references, concerning the Group’s expected growth and profitability in the foreseeable future which may perhaps considerably impression the expected performance indicated in the ahead-searching statements. These pitfalls and uncertainties are connected to variables out of the manage of the Corporation and not specifically approximated, such as marketplace conditions or competitor’s behaviors. Any ahead-searching statements designed in this doc are statements about Atos’ beliefs and expectations and should really be evaluated as such. Ahead-searching statements include things like statements that may perhaps relate to Atos’ ideas, objectives, procedures, goals, foreseeable future functions, foreseeable future revenues or synergies, or performance, and other information and facts that is not historic information and facts. Genuine functions or effects may perhaps differ from all those explained in this doc thanks to a variety of pitfalls and uncertainties that are explained inside of the 2020 Common Registration Doc filed with the Autorité des Marchés Financiers (AMF) on April seven, 2021 beneath the registration variety D.21-0269 and the Amendment to the 2020 Common Registration Paperwork filed with the AMF on July 30, 2021 beneath variety D.21-0269-A01. Atos does not undertake, and especially disclaims, any obligation or accountability to update or amend any of the information and facts higher than besides as usually essential by law. This doc does not contain or constitute an offer you 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.

Profits natural growth is introduced at frequent scope and exchange prices.

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