First quarter of 2021 – Atos

• Profits progress at regular currency: +3.five% to +4.%
• Operating margin charge: +forty to 80bps vs . 2020
• Free hard cash circulation: €550m to €600m

Q1 2021 profits by Business

Profits in the initially quarter of 2021 achieved € two,692 million, -one.nine% in comparison to Q1 2020 at regular currency, -3.nine% organically.

Covid-19 was still impacting Atos company over the quarter even with superior resilience in Economical Products and services & Insurance policies and in Health care & Lifestyle Sciences, as well as in Northern Europe, in Increasing Marketplaces and in Southern Europe which is showing an encouraging restoration.

With 18% of the Group profits, Producing reported a profits of € 488 million, representing a decrease by -six.7% in comparison to Q1 2020 at regular currency. The most significant and key complicated situation was the reduction of volumes in Germany, although the situation tended to stabilize in comparison to previous quarters in other geographies.

Economical Products and services & Insurance policies profits was € 544 million, representing 20% of the Group profits. The Business grew by +7.4% at regular currency in comparison to Q1 2020. The exercise elevated in most of the geographies and was largely pushed by company transformation jobs in Northern Europe and new electronic banking jobs in Increasing Marketplaces.

Public Sector & Protection profits was € 579 million representing 22% of the Group profits, down -3.two% at regular currency. The decrease was primarly due to major Big Info job delays to subsequent quarters as well as quantity reduction in North The us.

Telecom, Media & Technological know-how represented 14% of the Group profits and achieved € 373 million, a drop of -five.% at regular currency in comparison to Q1 2020, with a contrasted effectiveness by geography. Although a massive throughout the world contract with a global technological innovation enterprise started out to make a good contribution to the Business, effectiveness was impacted by the foundation consequences of some massive deals executed in 2020 and not repeated in 2021.

Profits produced by Assets & Products and services in the initially quarter of 2021 achieved € 395 million representing fifteen% of the Group profits. The Business lessened by -six.two% at regular currency in comparison to Q1 2020 with incredibly distinctive traits across its components. Although a strong effectiveness was reported with Utilities customers, the Business remained impacted by the complicated situation with customers operating in Transportation and Hospitality where the demand carries on to be afflicted by Covid-19.

Health care & Lifestyle Sciences profits was € 313 million, up by +3.4% in comparison to Q1 2020 at regular currency and representing 12% of the Group profits. The Business grew in most geographies, notably in Northern Europe and in Central Europe, with only the exception of North The us which did not reiterate in 2021 some massive jobs shipped in Q1 2020.

Q1 2021 profits by Regional Enterprise Device

Profits in North The us achieved € 564 million, decreasing by -nine.4% at regular currency. The evolution was impacted by the timing of Covid last yr hitting North The us later than Europe, quantity reduction in Public Sector and just one time revenue in Q1 2020, which could not be repeated. In addition some jobs were being postponed from Q1 2021 to subsequent quarters. This could not be compensated by the beginning of the ramp-up of new contracts in the Cloud and Electronic transformation as well as Cybersecurity spaces.

Profits in Northern Europe was € 730 million, raising by +six.two% at regular currency. Sturdy company progress was recorded in Telecom, Media & Technological know-how as well as in Economical Products and services & Insurance policies and Health care & Lifestyle Sciences. At the exact time difficulties were being confronted by Public Sector & Protection as well as Assets & Products and services. Producing remained secure in comparison to last yr.

Central Europe reported € 609 million of profits, down -8.five% at regular currency. This largely resulted from a still complicated situation in the Unified Communications & Collaboration and also in Producing. Many thanks to the ramp-up of quite a few new contracts, Health care & Lifestyle Sciences, Assets & Products and services and Public Sector & Protection recorded progress, Economical Products and services & Insurance policies remained practically flat even with some new jobs with massive German banking institutions.

Profits in Southern Europe achieved € 607 million, raising by +one.nine% in comparison to Q1 2020 at regular currency. The progress of the company was largely led by the superior effectiveness of Public Sector & Protection. Progress was also recorded in Economical Products and services & Insurance policies, Assets & Products and services and Health care & Lifestyle Sciences. The situation remained complicated in Telecom, Media & Technological know-how and to a lesser extent in Producing.

Profits achieved € 181 million in Increasing Marketplaces, up +five.one% at regular currency. In most of the Industries the exercise was more robust with new jobs shipped additional notably in Economical Products and services & Insurance policies.

Professional exercise

For the duration of the initially quarter of 2021, the Group get entry achieved € two,596 million representing a Book-to-Bill ratio of 96%, in comparison to one zero one% (at regular currency) reached over the exact interval last yr.

The key new contracts signed over the interval were being notably in Northern Europe with a massive Chemical client (Producing) and a European telco leader (Telecom, Media & Technological know-how), in Southern Europe with Pierre Fabre and a European leader in Prescribed drugs (Health care & Lifestyle Sciences), a primary multi-countrywide automotive company (Producing) and quite a few contracts with Transportation customers (Assets & Products and services), and in Central Europe with a massive European financial institution (Economical Products and services & Insurance policies) and Bundesagentur für Arbeit (Public Sector & Protection).

Agreement renewals of the quarter bundled notably a primary company in optical instruments and a massive beverage enterprise in Central Europe (Producing), quite a few Public Sector contracts in Southern Europe, and a Telecommunications enterprise in Increasing markets.

In line with this dynamic business exercise, the complete backlog amounted to € 23.two billion at the finish of March 2021, +8% in comparison to March 2020 at regular currency. It represented two.one a long time of profits. The complete certified pipeline achieved € 8.4 billion, +14% in comparison to March 2020 at regular currency. It represented nine months of profits.

Human means

The full headcount was 104,485 at the finish of March 2021, secure in comparison to 104,430 at the finish of December 2020.

In the initially quarter of 2021, the Group employed 4,215 employees, the the vast majority of whom in offshore and nearshore international locations.

Acquisitions

In line with its mid-phrase strategy, the Group announces now the signature of 3 bolt-on acquisitions. All of them belong to the strategic locations outlined by the Group to accelerate its company combine change:

• Electronic, through the acquisition of Processia, a professional of Products Lifecycle Administration (PLM)
• Protection, through the acquisition of cryptovision, specialised in Cryptography answers and merchandise
• Big Info and Analytics, through the acquisition of Ipsotek, a leader in Edge and Computer system Vision answers.

North The us Audit Comply with-up

The Organization designed a statement on April one, 2021 with regards to quite a few matters similar to two US authorized entities. As a reminder, the statutory auditors recognized, as aspect of their 2020 audit, inside command weaknesses over the financial reporting process and profits recognition in accordance with IFRS fifteen primary to quite a few accounting problems, as well as potential hazard of override of controls in this respect.

The two US authorized entities stand for eleven% of 2020 Group profits, they are not similar to Syntel.

Despite the additional audit techniques carried out by the statutory auditors in those people circumstances, they were being not in a position to complete inside the timeframe the required get the job done to get sufficient suitable audit proof in respect of profits recognition or other similar account balances of these two US entities and on the absence of material misstatements for the consolidated financial statements. As a outcome, the statutory auditors issued a certified opinion due to a limitation of scope on the consolidated financial statements for the yr 2020.

As of now the Group has not recognized material misstatements for the 2020 consolidated financial statements. Having said that, the conjunction of quite a few accounting problems and inside command weaknesses justifies a significant target and abide by-up by the Group. Hence, the Organization has decided to carry out a complete accounting overview of the two US authorized entities and will give a status update at the time of H1 outcomes.

A strong remediation and prevention strategy has been developed less than the leadership of the Group Normal Secretary and is staying applied. It addresses locations such as preventive controls, pointers and documentation, Human Assets overview, skilling and firm as well as recognition and schooling. Complementary examination is ongoing to assure that the strategy is exhaustive.

Appendix

Profits at regular scope and trade costs reconciliation

Scope consequences amounted to €+fifty seven million for profits. They are largely similar to:

• the acquisitions closed in 2020 and Q1 2021 for €+67 million
• the disposal of some distinct Unified Interaction & Collaboration activities and Wivertis GmBH in 2020, amounting to a full of €-10 million.

Forex trade costs consequences negatively contributed to profits for €-90 million. They generally arrived from the depreciation of the American greenback, the Pound sterling and the Brazilian actual versus the Euro over the interval.

Conference simply call

Currently, Tuesday, April 20, 2021, the Group will hold a meeting simply call in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in get to comment on Atos’ Q1 2021 profits and answer questions from the financial local community.

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

• on net, in the Buyers section
• by phone with the dial-in, 10 minutes prior the beginning time. Make sure you take note that if you want to be a part of the webcast by phone, you ought to sign up in progress of the meeting applying the adhering to link:

http://emea.directeventreg.com/registration/8716748

On registration, you will be presented with Participant Dial In Figures, a Direct Function Passcode and a one of a kind Registrant ID. Phone reminders will also be despatched by using e-mail the working day prior to the occasion.

For the duration of the 10 minutes prior to the beginning of the simply call, you will will need to use the meeting entry information and facts presented in the e-mail obtained upon registration.

Immediately after the meeting, a replay of the webcast will be readily available on atos.net, in the Buyers section.

Forthcoming situations

May perhaps 12, 2021 Annual Normal Meeting

July 28, 2021 Initial semester 2021 outcomes

October 21, 2021 3rd quarter 2021 profits

Download the push release in pdf

Contacts

Investor Relations: Gilles Arditti +33 six eleven 69 eighty one seventy four [email protected]

Media: Anette Rey +33 six 69 seventy nine 84 88 [email protected]

About Atos

Atos is a global leader in electronic transformation with one hundred and five,000 workforce and once-a-year profits of over € eleven billion. European number just one in cybersecurity, cloud and substantial effectiveness computing, the Group gives tailored finish-to-finish answers for all industries in 71 international locations. A pioneer in decarbonization providers and merchandise, Atos is committed to a safe and decarbonized electronic for its customers. Atos operates less than the models Atos and Atos|Syntel. Atos is a SE (Societas Europaea), mentioned on the CAC40 Paris inventory index.

The function of Atos is to help structure the upcoming of the information and facts room. Its abilities and providers assistance the improvement of awareness, education and learning and study in a multicultural technique and add to the improvement of scientific and technological excellence. Throughout the entire world, the Group allows its customers and workforce, and users of societies at massive to stay, get the job done and produce sustainably, in a safe and sound and safe information and facts room.

Disclaimers

This document has ahead-looking statements that include challenges and uncertainties, which include references, about the Group’s predicted progress and profitability in the upcoming which may substantially affect the predicted effectiveness indicated in the ahead-looking statements. These challenges and uncertainties are linked to factors out of the command of the Organization and not exactly estimated, such as sector disorders or competition behaviors. Any ahead-looking statements designed in this document are statements about Atos’ beliefs and expectations and must be evaluated as such. Forward-looking statements contain statements that may relate to Atos’ plans, goals, tactics, plans, upcoming situations, upcoming revenues or synergies, or effectiveness, and other information and facts that is not historical information and facts. Genuine situations or outcomes may vary from those people explained in this document due to a number of challenges and uncertainties that are explained in the 2020 Universal Registration Doc submitted with the Autorité des Marchés Financiers (AMF) on April 7, 2021 less than the registration number D.21-0269. Atos does not undertake, and especially disclaims, any obligation or duty to update or amend any of the information and facts over other than as usually expected by legislation. This document does not include or represent an supply of Atos’ shares for sale or an invitation or inducement to devote in Atos’ shares in France, the United States of The us or any other jurisdiction.

Atos consolidated and statutory financial statements for the yr finished December 31, 2020, were being accepted by the Board of Directors on February 17, 2021. Subsequent their audit techniques on the consolidated financial statements for the yr finished December 31, 2020, the statutory auditors issued on April one, 2021 a certified opinion due to a limitation on the scope of the audit as two US authorized entities representing eleven% of 2020 consolidated profits that need additional diligences. For the sake of clarity, other than for the qualification bundled in the statutory auditors’ report on the consolidated financial statements for the yr finished December 31, 2020, the Group consolidated financial statements are audited and the financial statements bundled in the Universal Registration Doc are unchanged in comparison to the variation released by the Organization on February 18, 2021. As of now, the Group has not recognized misstatements on the two US entities that are material for the consolidated financial statements.

Profits natural progress is introduced at regular scope and trade costs.

Industries contain Producing (Aerospace, Automotive, Chemicals, Client Packaged Items (Foodstuff & Beverage), Discrete Producing, Method Industries, Products and services and Siemens), Economical Products and services & Insurance policies (Insurance policies, Banking & Economical Products and services, and Enterprise Transformation Products and services), Public Sector & Protection (Protection, Training, Extraterritorial Businesses, Public Administration, Public Community Products and services and Significant Events), Telecom, Media & Technological know-how (Superior Tech & Engineering, Media, and Telecom), Assets & Products and services (Power, Retail, Transportation & Hospitality, and Utilities) and Health care & Lifestyle Sciences (Health care and Pharmaceutical).

Regional Enterprise Models contain North The us (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 Increasing Marketplaces which include Asia-Pacific (Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand), South The us (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), Significant Events and World wide Shipping and delivery Facilities.