Third quarter of 2021 – Atos

Profits secure at € 2,666 million
at regular currency

Buy entry at € 2,399 million

Ebook to invoice ratio at ninety%

Digital, Cloud, Protection & Decarbonization at fifty two% of earnings

Internet natural and organic maximize of abilities by +one,500

Team Transformation courses transferring at speed

2021 goals verified

Paris, Oct twenty, 2021 – Atos, a worldwide leader in electronic transformation, today announces the earnings of its third quarter of 2021.

In the third quarter, the Team ongoing to stabilize its earnings at regular currency, in advance of progressing into favourable territory. Current market need put up crisis remained extremely dynamic in Cloud software migration and enhancement and the Digital transformation of business processes through automation, robotisation and synthetic intelligence. In all areas, shoppers now involve electronic answers with the maximum specifications of security, sustainability and inclusiveness, three domains where Atos provides distinctive technological experience.

The Team ongoing to go after its deep and vast business transformation prepare, selecting a file quantity of new skills in a extremely warm talent market place, ensuing for the 1st time in a web natural and organic maximize of +one,500 staff members. This will aid fuel our progress ambitions. In the similar vein, we reinforced our partnerships with Community Cloud hyperscalers even though striking new ones with higher progress Digital platforms.

Our transformation courses declared in July are transferring at speed on all fronts. The German restructuring is effectively below way. The prepare to look for partners on c. twenty% of the Team earnings is becoming executed with sophisticated conversations on our Unified Communications & Collaboration asset. The acquisition of a new electronic bolt-on asset has been signed. At last, our LEAP cultural alter plan is ramping up.

The Team Management desires to thank our 107,000 colleagues for their great assistance for and dedication to this transformation journey, which is environment the correct foundations for obtaining our mid-term targets.

Q3 2021 earnings by Market

	Profits
In € million	Q3 2021	Q3 2020*	Evolution at regular currency
Producing	518	469	+10.4%
Financial Providers & Insurance	524	512	+2.three%
Community Sector & Defense	553	628	-eleven.nine%
Telecom, Media & Know-how	355	363	-2.%
Resources & Providers	383	378	+one.5%
Healthcare & Life Sciences	333	317	+5.one%
Full	2,666	2,666	.%
* At regular currency

 

Profits in the third quarter of 2021 achieved € 2,666 million, secure in contrast to Q3 2020 at regular currency, and decreasing by -2.three% organically. The important segments to which the Team directs its transformation – Digital, Cloud, Protection and Decarbonization – performed a powerful progress even though earnings was however impacted in Traditional Infrastructure.

Producing noted a earnings of € 518 million, symbolizing 19% of the Team earnings and rising by +10.4% in contrast to Q3 2020 at regular currency. This was an acceleration of its restoration after a second quarter already developing by +one.8%. Every single geography contributed to this powerful progress, pushed by a repositioning of the Market on better worth electronic tasks and answers to satisfy customer demands. Extra particularly, the Market greater business in software tasks ran in Automotive and Aerospace, as effectively as digitization of industrial processes which include IoT centered smart producing offerings.

Financial Providers & Insurance earnings was € 524 million for the duration of the third quarter of 2021, symbolizing twenty% of the Team earnings. Rising by +2.three% in contrast to Q3 2020 at regular currency, the Market verified its functionality of the 1st semester, especially in the Insurance sector even though activity with Banking institutions was much more contrasted. Company in this Market ongoing to be led by electronic transformation tasks and a powerful need for cybersecurity experience, each protected by the offerings of the Team and the synergies with the newly acquired corporations these as Eagle Creek, Digital.Protection, and Paladion.

Community Sector & Defense achieved € 553 million symbolizing 21% of the Team earnings and decreasing 12 months-on-12 months at regular currency by -eleven.nine% after a +13.% in Q3 2020. This decrease arrived from quantity reduction in significant Higher Overall performance Computing (HPC) tasks shipped last 12 months in most of the geographies and much more particularly in Northern Europe, as effectively as the last quarter of 12 months-on-12 months effect from the significant reduction of scope of the Texas Section of Details Resources agreement renewed last 12 months.

Telecom, Media & Know-how represented 13% of the Team earnings and achieved € 355 million, decreasing by -2.% in contrast to Q3 2020 at regular currency. Following a favourable second quarter, the Market had a much more challenging third quarter as tendencies ended up blended among its various sectors. Although tasks in the Media sector grew thanks to an greater quantity in North The united states, the condition was much more challenging in Higher Tech & Engineering as effectively as in Telecom.

Profits produced by Resources & Providers in the third quarter of 2021 achieved € 383 million symbolizing 14% of the full earnings of the Team. The sector managed to get well and grew by +one.5% in contrast to Q3 2020 at regular currency after a decrease by -2.5% in the second quarter of 2021. The condition remained contrasted across its elements, with dynamism in Transportation & Hospitality, especially in North The united states and Southern Europe, even though the Retail and Vitality & Utilities sectors declined owing to HPC income not repeated this 12 months in contrast to 2020.

Symbolizing 12% of the Team earnings with € 333 million, Healthcare & Life Sciences grew by +5.one% in the third quarter of 2021 12 months-on-12 months at regular currency led by Northern Europe, Southern Europe, and Expanding Marketplaces. In particular, the Healthcare sector recorded a extremely powerful functionality in contrast to the third quarter of 2020, which much more than compensated the decrease in Pharmaceutical.

Q3 2021 earnings by Regional Company Device

	Profits
In € million	Q3 2021	Q3 2020*	Evolution at regular currency
North The united states	617	625	-one.three%
Northern Europe	674	700	-three.8%
Central Europe	619	631	-one.8%
Southern Europe	556	520	+seven.%
Expanding Marketplaces	201	191	+4.nine%
Full	2,666	2,666	.%
* At regular currency

 

The greater part of the Areas benefited from the rebound of the need for Digital transformation, Cloud, and Cybersecurity in the sectors that have been impacted the most last 12 months these as Producing and Hospitality & Transportation. They benefited also from a great momentum in Healthcare & Life Sciences and Financial Providers & Insurance. Merged with synergies initiated from the new acquisitions, the Team managed to compensate the decrease in Community Sector & Defense coming from quantity reduction and some significant HPCs shipped last 12 months in several geographies.

Profits progress at regular currency was powerful in Southern Europe and in Expanding Marketplaces.

In Southern Europe, the activity was solid in most of the Industries which include Community Sector & Defense.

Expanding Marketplaces ongoing on its development at circa +5% progress led by the ramp-up of tasks in Asia in Healthcare & Life Sciences as effectively as in Telecom, Media & Know-how in Brazil and in Producing through quantity maximize and new tasks.

North The united states managed to make progress at regular currency in all Industries other than Community Sector & Defense impacted by the Texas Section of Details Resources agreement and by Unified Communications & Collaboration activities.

Northern Europe recorded a powerful activity in Producing with Digital Transformation tasks as effectively as in Healthcare & Life Sciences. But this geography faced unfavourable base effect on Higher Overall performance Computing in Community Sector & Defense.

At last, Central Europe noticeably enhanced its earnings development in contrast to -10.three% in Q2 thanks to Producing ramp-up of tasks and new contracts.

Industrial activity

Through the third quarter of 2021, the Team purchase entry achieved € 2,399 million symbolizing a Ebook-to-Monthly bill ratio of ninety%.

The main new contracts signed above the time period integrated notably:

• in Producing a agreement with a significant European Automotive supplier for the migration to S/4 Hana Cloud (Central Europe)
• in Financial Providers & Insurance a agreement with a US worldwide Insurer for a migration to Community Cloud combining Atos, Syntel, and Maven Wave abilities (North The united states)
• in Community Sector & Defense a significant agreement with a Community authority for a Digital Transformation undertaking (Northern Europe)
• in Telecom, Media & Know-how a Digital Transformation agreement embarking Cloud, Protection, and Decarbonization companies with a European Higher Tech leader (Northern Europe)
• in Resources & Providers a agreement with a significant European Utility for distribution community administration and management combining SAP and Atos Vitality answers (Southern Europe) and
• in Healthcare & Life Sciences a agreement with a significant Healthcare leader for the enhancement of electronic tool to enrich individual knowledge (North The united states).

Agreement renewals of the quarter integrated, in Producing a significant European automobile maker with an extension to assistance customer in building knowledge-centered Cloud companies (Southern Europe), in Financial Providers & Insurance a key lender to migrate sophisticated knowledge center and programs (Expanding Marketplaces), and a scope extension with a significant retailer Resources & Providers (North The united states).

Total backlog amounted to € 23.4 billion at the stop of September 2021, a little down in contrast to June 2021. It represented 2.one several years of earnings. Full competent pipeline achieved € seven.4 billion secure in contrast to June 2021. It represented seven.nine months of earnings.

Human sources

The full headcount was 106,665 at the stop of September 2021, an maximize of +one,857, of which for the 1st time +one,485 (+one.4%) organically in purchase to assistance the quickly developing business segments (Digital, Cloud, Protection and Decarbonization) even though the Team ongoing to decrease the quantity of personnel in Infrastructure activities through automation and robotization.

In the third quarter of 2021, the Team hired 8,019 personnel, the greater part of whom in offshore and nearshore countries. Attrition LTM (Very last Twelve Months) achieved sixteen% at the stop of September 2021.

2021 goals verified

The Team confirms all its goals for 2021:

• Profits progress at regular currency: secure
• Functioning margin charge: six%
• Totally free income move:

Acquisition

The Team today announces the acquisition of DataSentics, a European organization established in 2016 and located in Prague. DataSentics specializes in Device Discovering and Cloud Information engineering. The organization performs on unifying knowledge science and engineering across Europe. It employs ninety knowledge experts. Its offerings will promptly enhance Artificial Intelligence manufacturing unit strategy of Atos to assistance 5G and Edge offerings and speed up important business use situations in Producing, Retail, and Telecommunications.

Method to look for partners to enhance Team property

As part of its transformation and to speed up its reprofiling to Digital, Cloud, Protection & Decarbonization, the Team declared on July 27, 2021 the launch of a significant plan to look for partners on a quantity of business symbolizing c. twenty% of its existing earnings.

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

On Information Center web hosting and linked activities, a official approach has been released and various indications of interest have been acquired.

 

Appendix

 

Profits at regular scope and exchange rates reconciliation

In € million	Q3 2021	Q3 2020	% alter
Statutory earnings	2,666	2,644	+.8%
Exchange rates effect		22
Profits at regular exchange rates	2,666	2,666	.%
Scope effect		sixty three
Exchange rates effect on acquired/disposed perimeters		one
Profits at regular scope and exchange rates	2,666	2,729	-2.three%

 

Scope effects amounted to €+sixty three million for earnings. They are mostly linked to:

• the acquisitions closed in H2 2020 and in 2021 for €+68 million and
• the disposal of some unique Unified Communications & Collaboration activities and Wivertis GmBH in 2020, amounting for a full of €-5 million.

Currency exchange charge effects positively contributed to earnings for €+22 million. They generally arrived from the appreciation of the British Pound versus the Euro above the time period.

Meeting phone

Tomorrow, Thursday, Oct 21, 2021, the Team will maintain a convention phone in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in purchase to remark on Atos’ Q3 2021 earnings and remedy issues from the financial group.

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

• by using the next link: https://edge.media-server.com/mmc/p/9dtvfypf
• by telephone with the dial-in, 10 minutes prior the starting up time. You should take note that if you want to be a part of the webcast by telephone, you need to sign-up in advance of the convention utilizing the next link:

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

On registration, you will be supplied with Participant Dial In Quantities, a Immediate Occasion Passcode and a distinctive Registrant ID. Connect with reminders will also be sent by using e mail the working day prior to the function.

Through the 10 minutes prior to the starting of the phone, you will will need to use the convention entry info supplied in the e mail acquired upon registration.

Following the convention, a replay of the webcast will be accessible on atos.web, in the Investors area.

Forthcoming functions

February 28, 2022 (Following Current market Near) Total 12 months 2021 effects

April 27, 2022 (Prior to Current market Opening) Initial Quarter 2022 earnings

May perhaps 18, 2022 Annual Common Meeting

July 27, 2022 (Prior to Current market Opening) Initial semester 2022 effects

Contacts

Trader Relations: Gilles Arditti – +33 six eleven sixty nine eighty one seventy four – [email protected]

Media: Anette Rey – +33 six sixty nine 79 84 88 – [email protected]

***

Download the PDF edition of the doc here

About Atos

Atos is a worldwide leader in electronic transformation with 107,000 staff members and once-a-year earnings of above € eleven billion. European quantity one in cybersecurity, cloud and higher functionality computing, the Team offers customized stop-to-stop answers for all industries in 71 countries. A pioneer in decarbonization companies and products and solutions, Atos is dedicated to a safe and decarbonized electronic for its shoppers. Atos is an SE (Societas Europaea), detailed on Euronext Paris and integrated in the CAC 40 ESG and Following twenty indexes.

The reason of Atos is to aid design and style the foreseeable future of the info place. Its experience and companies assistance the enhancement of awareness, schooling and study in a multicultural method and add to the enhancement of scientific and technological excellence. Throughout the globe, the Team allows its shoppers and staff members, and customers of societies at significant to are living, work and build sustainably, in a safe and safe info place.

Disclaimers

This doc is made up of ahead-looking statements that include threats and uncertainties, which include references, about the Group’s anticipated progress and profitability in the foreseeable future which may perhaps noticeably impact the anticipated functionality indicated in the ahead-looking statements. These threats and uncertainties are connected to elements out of the management of the Organization and not specifically estimated, these as market place disorders or competitor’s behaviors. Any ahead-looking statements built in this doc are statements about Atos’ beliefs and expectations and need to be evaluated as these. Ahead-looking statements incorporate statements that may perhaps relate to Atos’ programs, goals, approaches, objectives, foreseeable future functions, foreseeable future revenues or synergies, or functionality, and other info that is not historic info. Genuine functions or effects may perhaps vary from all those described in this doc owing to a quantity of threats and uncertainties that are described within the 2020 Common Registration Doc filed with the Autorité des Marchés Financiers (AMF) on April seven, 2021 below the registration quantity D.21-0269 and the Modification to the 2020 Common Registration Documents filed with the AMF on July 30, 2021 below quantity D.21-0269-A01. Atos does not undertake, and specially disclaims, any obligation or obligation to update or amend any of the info earlier mentioned other than as in any other case demanded by law. This doc does not have or represent an provide 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.

Profits natural and organic progress is presented at regular scope and exchange rates.

Industries incorporate Producing (Aerospace, Automotive, Chemicals, Buyer Packaged Goods (Food stuff & Beverage), Discrete Producing, Method Industries, Providers and Siemens), Financial Providers & Insurance (Insurance, Banking & Financial Providers, and Company Transformation Providers), Community Sector & Defense (Defense, Instruction, Extraterritorial Businesses, Community Administration, Community Neighborhood Providers and Big Gatherings), Telecom, Media & Know-how (Higher Tech & Engineering, Media, and Telecom), Resources & Providers (Vitality, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Life Sciences (Healthcare and Pharmaceutical).

Regional Company Models incorporate North The united states (United states, 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 Expanding Marketplaces which include 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), Middle 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), Big Gatherings and World Supply Centers.