First quarter of 2021 – Atos

• Revenue expansion at constant forex: +3.five{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} to +four.{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d}
• Running margin fee: +forty to 80bps vs . 2020
• Totally free money circulation: €550m to €600m

Q1 2021 profits by Market

Revenue in the to start with quarter of 2021 achieved € 2,692 million, -1.nine{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} compared to Q1 2020 at constant forex, -3.nine{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} organically.

Covid-19 was nonetheless impacting Atos organization around the quarter irrespective of great resilience in Monetary Expert services & Insurance plan and in Healthcare & Everyday living Sciences, as properly as in Northern Europe, in Growing Marketplaces and in Southern Europe which is showing an encouraging recovery.

With eighteen{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} of the Group profits, Producing reported a profits of € 488 million, representing a lower by -six.seven{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} compared to Q1 2020 at constant forex. The biggest and main challenging problem was the reduction of volumes in Germany, whilst the problem tended to stabilize compared to past quarters in other geographies.

Monetary Expert services & Insurance plan profits was € 544 million, representing 20{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} of the Group profits. The Market grew by +seven.four{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} at constant forex compared to Q1 2020. The action increased in most of the geographies and was primarily driven by organization transformation tasks in Northern Europe and new digital banking tasks in Growing Marketplaces.

Public Sector & Protection profits was € 579 million representing 22{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} of the Group profits, down -3.2{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} at constant forex. The lower was primarly due to important Massive Info undertaking delays to subsequent quarters as properly as quantity reduction in North America.

Telecom, Media & Know-how represented 14{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} of the Group profits and achieved € 373 million, a decrease of -five.{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} at constant forex compared to Q1 2020, with a contrasted effectiveness by geography. Even though a massive around the world agreement with a world wide technologies firm commenced to deliver a favourable contribution to the Market, effectiveness was impacted by the foundation consequences of some massive promotions performed in 2020 and not recurring in 2021.

Revenue generated by Sources & Expert services in the to start with quarter of 2021 achieved € 395 million representing fifteen{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} of the Group profits. The Market decreased by -six.2{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} at constant forex compared to Q1 2020 with incredibly unique developments throughout its factors. Even though a robust effectiveness was reported with Utilities clients, the Market remained impacted by the challenging problem with clients functioning in Transportation and Hospitality the place the desire proceeds to be influenced by Covid-19.

Healthcare & Everyday living Sciences profits was € 313 million, up by +3.four{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} compared to Q1 2020 at constant forex and representing twelve{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} of the Group profits. The Market grew in most geographies, notably in Northern Europe and in Central Europe, with only the exception of North America which did not reiterate in 2021 some massive tasks shipped in Q1 2020.

Q1 2021 profits by Regional Small business Device

Revenue in North America achieved € 564 million, lowering by -nine.four{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} at constant forex. The evolution was impacted by the timing of Covid previous 12 months hitting North America later on than Europe, quantity reduction in Public Sector and one particular time product sales in Q1 2020, which could not be recurring. In addition some tasks ended up postponed from Q1 2021 to subsequent quarters. This could not be compensated by the commencing of the ramp-up of new contracts in the Cloud and Digital transformation as properly as Cybersecurity spaces.

Revenue in Northern Europe was € 730 million, growing by +six.2{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} at constant forex. Potent organization expansion was recorded in Telecom, Media & Know-how as properly as in Monetary Expert services & Insurance plan and Healthcare & Everyday living Sciences. At the exact same time challenges ended up faced by Public Sector & Protection as properly as Sources & Expert services. Producing remained secure compared to previous 12 months.

Central Europe reported € 609 million of profits, down -8.five{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} at constant forex. This primarily resulted from a nonetheless challenging problem in the Unified Communications & Collaboration and also in Producing. Thanks to the ramp-up of quite a few new contracts, Healthcare & Everyday living Sciences, Sources & Expert services and Public Sector & Protection recorded expansion, Monetary Expert services & Insurance plan remained practically flat irrespective of some new tasks with massive German banking institutions.

Revenue in Southern Europe achieved € 607 million, growing by +1.nine{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} compared to Q1 2020 at constant forex. The expansion of the organization was primarily led by the great effectiveness of Public Sector & Protection. Expansion was also recorded in Monetary Expert services & Insurance plan, Sources & Expert services and Healthcare & Everyday living Sciences. The problem remained challenging in Telecom, Media & Know-how and to a lesser extent in Producing.

Revenue achieved € 181 million in Growing Marketplaces, up +five.1{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} at constant forex. In most of the Industries the action was more powerful with new tasks shipped extra notably in Monetary Expert services & Insurance plan.

Industrial action

Through the to start with quarter of 2021, the Group get entry achieved € 2,596 million representing a Reserve-to-Monthly bill ratio of 96{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d}, compared to one hundred and one{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} (at constant forex) accomplished around the exact same period previous 12 months.

The main new contracts signed around the period ended up notably in Northern Europe with a massive Chemical buyer (Producing) and a European telco chief (Telecom, Media & Know-how), in Southern Europe with Pierre Fabre and a European chief in Prescription drugs (Healthcare & Everyday living Sciences), a foremost multi-countrywide automotive maker (Producing) and quite a few contracts with Transportation clients (Sources & Expert services), and in Central Europe with a massive European financial institution (Monetary Expert services & Insurance plan) and Bundesagentur für Arbeit (Public Sector & Protection).

Deal renewals of the quarter incorporated notably a foremost maker in optical devices and a massive beverage firm in Central Europe (Producing), quite a few Public Sector contracts in Southern Europe, and a Telecommunications firm in Growing marketplaces.

In line with this dynamic commercial action, the entire backlog amounted to € 23.2 billion at the conclude of March 2021, +8{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} compared to March 2020 at constant forex. It represented 2.1 many years of profits. The entire skilled pipeline achieved € 8.four billion, +14{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} compared to March 2020 at constant forex. It represented nine months of profits.

Human means

The complete headcount was 104,485 at the conclude of March 2021, secure compared to 104,430 at the conclude of December 2020.

In the to start with quarter of 2021, the Group employed four,215 employees, the bulk of whom in offshore and nearshore nations around the world.

Acquisitions

In line with its mid-time period strategy, the Group announces currently the signature of 3 bolt-on acquisitions. All of them belong to the strategic parts defined by the Group to accelerate its organization combine alter:

• Digital, as a result of the acquisition of Processia, a professional of Merchandise Lifecycle Administration (PLM)
• Stability, as a result of the acquisition of cryptovision, specialized in Cryptography answers and products and solutions
• Massive Info and Analytics, as a result of the acquisition of Ipsotek, a chief in Edge and Laptop Eyesight answers.

North America Audit Follow-up

The Corporation made a assertion on April 1, 2021 regarding quite a few matters associated to two US lawful entities. As a reminder, the statutory auditors recognized, as aspect of their 2020 audit, interior command weaknesses around the financial reporting approach and profits recognition in accordance with IFRS fifteen foremost to quite a few accounting problems, as properly as likely chance of override of controls in this regard.

The two US lawful entities represent 11{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} of 2020 Group profits, they are not associated to Syntel.

In spite of the extra audit processes carried out by the statutory auditors in those people circumstances, they ended up not able to perform within just the timeframe the required work to obtain sufficient appropriate audit proof in regard of profits recognition or other associated account balances of these two US entities and on the absence of product misstatements for the consolidated financial statements. As a result, the statutory auditors issued a skilled feeling due to a limitation of scope on the consolidated financial statements for the 12 months 2020.

As of currently the Group has not recognized product misstatements for the 2020 consolidated financial statements. Having said that, the conjunction of quite a few accounting problems and interior command weaknesses warrants a critical aim and comply with-up by the Group. As a result, the Corporation has resolved to conduct a entire accounting evaluate of the two US lawful entities and will give a position update at the time of H1 effects.

A robust remediation and prevention strategy has been intended below the leadership of the Group Basic Secretary and is remaining implemented. It handles parts such as preventive controls, recommendations and documentation, Human Sources evaluate, skilling and firm as properly as consciousness and coaching. Complementary investigation is ongoing to ensure that the strategy is exhaustive.

Appendix

Revenue at constant scope and exchange charges reconciliation

Scope consequences amounted to €+fifty seven million for profits. They are primarily associated to:

• the acquisitions shut in 2020 and Q1 2021 for €+67 million
• the disposal of some particular Unified Interaction & Collaboration functions and Wivertis GmBH in 2020, amounting to a complete of €-ten million.

Currency exchange charges consequences negatively contributed to profits for €-90 million. They primarily came from the depreciation of the American greenback, the Pound sterling and the Brazilian actual against the Euro around the period.

Meeting call

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

You can sign up for the webcast of the convention:

• on net, in the Traders portion
• by phone with the dial-in, ten minutes prior the commencing time. You should notice that if you want to sign up for the webcast by phone, you need to sign-up in progress of the convention making use of the following connection:

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

On registration, you will be supplied with Participant Dial In Quantities, a Direct Event Passcode and a distinctive Registrant ID. Simply call reminders will also be sent via email the day prior to the occasion.

Through the ten minutes prior to the commencing of the call, you will need to have to use the convention entry info supplied in the email received upon registration.

Soon after the convention, a replay of the webcast will be offered on atos.net, in the Traders portion.

Forthcoming events

May perhaps twelve, 2021 Yearly Basic Conference

July 28, 2021 To start with semester 2021 effects

October 21, 2021 Third quarter 2021 profits

Download the push release in pdf

Contacts

Trader Relations: Gilles Arditti +33 six 11 sixty nine eighty one 74 [email protected]

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

About Atos

Atos is a world wide chief in digital transformation with one hundred and five,000 workforce and once-a-year profits of around € 11 billion. European variety one particular in cybersecurity, cloud and higher effectiveness computing, the Group provides personalized conclude-to-conclude answers for all industries in 71 nations around the world. A pioneer in decarbonization providers and products and solutions, Atos is dedicated to a secure and decarbonized digital for its customers. Atos operates below the manufacturers Atos and Atos|Syntel. Atos is a SE (Societas Europaea), listed on the CAC40 Paris stock index.

The reason of Atos is to aid design and style the upcoming of the info house. Its abilities and providers assist the improvement of knowledge, schooling and study in a multicultural strategy and add to the improvement of scientific and technological excellence. Throughout the planet, the Group permits its clients and workforce, and associates of societies at massive to live, work and produce sustainably, in a risk-free and secure info house.

Disclaimers

This doc has ahead-wanting statements that include pitfalls and uncertainties, like references, concerning the Group’s expected expansion and profitability in the upcoming which may considerably impression the expected effectiveness indicated in the ahead-wanting statements. These pitfalls and uncertainties are linked to things out of the command of the Corporation and not precisely approximated, such as industry problems or rivals behaviors. Any ahead-wanting statements made in this doc are statements about Atos’ beliefs and expectations and should be evaluated as such. Ahead-wanting statements involve statements that may relate to Atos’ options, objectives, strategies, goals, upcoming events, upcoming revenues or synergies, or effectiveness, and other info that is not historic info. True events or effects may vary from those people explained in this doc due to a variety of pitfalls and uncertainties that are explained in the 2020 Universal Registration Document filed with the Autorité des Marchés Financiers (AMF) on April seven, 2021 below the registration variety D.21-0269. Atos does not undertake, and exclusively disclaims, any obligation or responsibility to update or amend any of the info earlier mentioned besides as usually expected by regulation. This doc does not consist of or constitute an give of Atos’ shares for sale or an invitation or inducement to make investments in Atos’ shares in France, the United States of America or any other jurisdiction.

Atos consolidated and statutory financial statements for the 12 months ended December 31, 2020, ended up permitted by the Board of Administrators on February seventeen, 2021. Following their audit processes on the consolidated financial statements for the 12 months ended December 31, 2020, the statutory auditors issued on April 1, 2021 a skilled feeling due to a limitation on the scope of the audit as two US lawful entities representing 11{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} of 2020 consolidated profits that call for extra diligences. For the sake of clarity, besides for the qualification incorporated in the statutory auditors’ report on the consolidated financial statements for the 12 months ended December 31, 2020, the Group consolidated financial statements are audited and the financial statements incorporated in the Universal Registration Document are unchanged compared to the model revealed by the Corporation on February eighteen, 2021. As of currently, the Group has not recognized misstatements on the two US entities that are product for the consolidated financial statements.

Revenue organic and natural expansion is introduced at constant scope and exchange charges.

Industries involve Producing (Aerospace, Automotive, Chemical substances, Customer Packaged Merchandise (Foods & Beverage), Discrete Producing, Procedure Industries, Expert services and Siemens), Monetary Expert services & Insurance plan (Insurance plan, Banking & Monetary Expert services, and Small business Transformation Expert services), Public Sector & Protection (Protection, Education and learning, Extraterritorial Companies, Public Administration, Public Community Expert services and Key Events), Telecom, Media & Know-how (High Tech & Engineering, Media, and Telecom), Sources & Expert services (Electrical power, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Everyday living Sciences (Healthcare and Pharmaceutical).

Regional Small business Units involve North America (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 Growing Marketplaces like Asia-Pacific (Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand), South America (Argentina, Brazil, Chile, Colombia, Uruguay, and Peru), Center 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), Key Events and Worldwide Supply Facilities.