18/01/2022

Tannochbrae

Built Business Tough

Atos announces preliminary 2021 financial figures below objectives

Paris, January ten, 2022

Referring to EU regulation No. 596/2014, which delivers that issuers shall notify the community as quickly as feasible of inside of information instantly pertinent to them, Atos announces these days that the aims communicated to the sector on July twelve, 2021 will not be satisfied due to quite a few substantial consequences explained herein down below.

The figures in this push release, such as the profits progress at frequent currency, operating margin fee and free hard cash move for the year 2021, are not finalized at this stage nor audited. The comprehensive comprehensive year figures for 2021, such as prospective impairment even further to the assessment of the recoverable quantity of belongings, will be printed as planned on February 28, 2022 (following sector close).

Rodolphe Belmer, Atos CEO, explained: “I joined the Business very last 7 days, at the time when the figures were staying gathered and consolidated. The existing state of monetary perception sales opportunities us to the obligation to challenge a gain warning these days due to the substantial variance in the monetary KPIs. However, most of the merchandise underlying this intense hole are non-recurring. In specific, the significant hole in Absolutely free Money Move generally stems from working funds.

I am convinced that the Business has the necessary belongings and all the abilities to run a swift turnaround. In this context, I will existing at the close of February a new business to the Board of Directors, and in Q2 a plan that will show the drivers of this turnaround and the concentrate on worthwhile progress and benefit development.”

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Profits progress

Profits in 2021 achieved c. € ten.eight billion, a decrease of c. -two.4% at frequent currency.

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

  • The surprising reassessment of the expense to go on transformation, replatforming and functions of a monetary solutions BPO contract, signed in 2018 for fifteen years with a significant Uk monetary establishment, main to a significant revision of the completion fee on the job, at the close of December 2021, and hence translating into a detrimental profits effects in 2021.Impression on comprehensive-year profits progress: c. 70 bps
  • Massive Information/HPCs and Unified Communications & Collaboration job slippages from close of 2021 to 2022 due to offer chain issues as effectively as to customer postponements in Community Sector & Protection in the Netherlands and the Uk.Impression on comprehensive-year profits progress: c. ninety bps
  • Hold off to 2022 of ultimate agreements with quite a few significant shoppers to get compensated for more do the job performed in 2021. These amendments, expected to be signed in December, would have led to further profits in 2021.Impression on comprehensive-year profits progress: thirty bps and
  • The decreased degree of lower margin hardware and application resale in December 2021.Impression on comprehensive-year profits progress: c. 50 bps.

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Functioning margin

Functioning margin amounted to c. 4% of profits in 2021. The variance compared to the objective of c. six% came generally from:

  • The reduction of the profits booked and further costs in 2021 on the significant BPO contract in the Uk pointed out above.Impression on operating margin fee: c. ninety bps

On top of that, the run phase of the BPO contract on the remaining subsequent twelve years demands the provision of c. € sixty five million for upcoming losses underneath “Other Functioning Income and Expenses”.

  • Task slippages to 2022 due to offer chain issues as effectively as to customer postponements.Impression on operating margin fee: c. thirty bps
  • Hold off to 2022 of ultimate agreements with quite a few significant shoppers as pointed out above to get compensated for more do the job performed in 2021.Impression on operating margin fee: c. thirty bps and
  • Greater costs than expected in 2021 on settlements to close disputes with quite a few shoppers at year-close.Impression on operating margin fee: c. forty bps.

 

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Absolutely free Money Move

Absolutely free Money Move is estimated at c. €-420 million. The variance compared to the objective of beneficial free hard cash move is generally due to working funds and in specific to:

  • € 200 million from accelerated supplier payments at the close of 2021, as a result of unexpected force from crucial suppliers and subcontractors in the ultimate months of 2021
  • € 150 million of customer collections postponed from close of 2021 to 2022 due to the late acceptance of projects by quite a few shoppers which in the end prevented assortment by year-close
  • € sixty million, of which € thirty million associated to advance payments from shoppers and € thirty million effects from the significant BPO contract in the Uk pointed out herein above and
  • € thirty million from the reduced degree of product sales of receivables.

As a reminder, the comprehensive year Absolutely free Money Move figure of €-420 million also comprises the effects of the German turnaround plan for €-a hundred and eighty million and a reduction of advance payments from shoppers for €-200 million, as communicated on July twelve, 2021.

The Net Personal debt at the close of December 2021 is expected to be at c. €-1.two billion main to a Net Personal debt on OMDA (underneath IFRS) ratio of c. 1.1. Taking into account the Worldline shares covering the Optional Trade Bond, Net Personal debt on OMDA ratio is estimated at c. .eight.

The aims for 2022 will be printed on February 28, 2022 at the situation of the comprehensive-year 2021 outcomes release.

 

Obtain the PDF variation in this article

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Appendix

2021 Aims 2021 Provisional figures
Profits progress at frequent currency Secure c. -two.4%
% Functioning Margin to profits c. six% c. 4%
Absolutely free Money Move Constructive c. €-420 million

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Conference phone

The Management of Atos invites you to an worldwide conference 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 conference:

  • via the subsequent website link: https://edge.media-server.com/mmc/p/no379pbs
  • by telephone with the dial-in, ten minutes prior the starting off time. Please be aware that if you want to be part of the webcast by telephone, you have to sign up in advance of the conference working with the subsequent website link: http://emea.directeventreg.com/registration/7025829

Upon registration, you will be delivered with Participant Dial In Numbers, a Immediate Celebration Passcode and a special Registrant ID. Throughout the ten minutes prior to the commencing of the phone, you will have to have to use the conference accessibility information delivered in the e-mail gained on registration.

Just after the conference, a replay of the webcast will be readily available on atos.web, in the Buyers section.

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Forthcoming gatherings

February 28, 2022 (Just after Sector Close) Total Calendar year 2021 outcomes

April 27, 2022 (In advance of Sector Opening) Initial Quarter 2022 profits

May possibly 18, 2022 Annual Normal Conference

July 27, 2022 (In advance of Sector Opening) Initial semester 2022 outcomes

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Contacts

Trader Relations: Gilles Arditti – +33 1 seventy three 26 00 66 – [email protected]

Media: Anette Rey – +33 six 69 79 84 88 – [email protected]

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About Atos

Atos is a world wide leader in electronic transformation with 107,000 employees and annual profits of about € eleven billion. European amount 1 in cybersecurity, cloud and high functionality computing, the Team delivers personalized close-to-close answers for all industries in 71 international locations. A pioneer in decarbonization solutions and goods, Atos is committed to a protected and decarbonized electronic for its consumers. Atos is an SE (Societas Europaea), listed on Euronext Paris and involved in the CAC forty ESG and Following 20 indexes.

The function of Atos is to aid design and style the upcoming of the information space. Its abilities and solutions help the growth of awareness, instruction and investigation in a multicultural approach and contribute to the growth of scientific and technological excellence. Across the earth, the Team allows its shoppers and employees, and customers of societies at significant to stay, do the job and develop sustainably, in a harmless and protected information space.

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Disclaimers

This doc incorporates ahead-on the lookout statements that require risks and uncertainties, such as references, about the Group’s expected progress and profitability in the upcoming which may possibly significantly effects the expected functionality indicated in the ahead-on the lookout statements. These risks and uncertainties are connected to variables out of the control of the Business and not exactly estimated, such as sector disorders or competitor’s behaviors. Any ahead-on the lookout statements manufactured in this doc are statements about Atos’ beliefs and expectations and should be evaluated as such. Ahead-on the lookout statements include statements that may possibly relate to Atos’ options, aims, tactics, targets, upcoming gatherings, upcoming revenues or synergies, or functionality, and other information that is not historic information. Precise gatherings or outcomes may possibly differ from those people explained in this doc due to a amount of risks and uncertainties that are explained inside of the 2020 Common Registration Doc filed with the Autorité des Marchés Financiers (AMF) on April seven, 2021 underneath the registration amount D.21-0269 and the Modification to the 2020 Common Registration Files filed with the AMF on July thirty, 2021 underneath amount D.21-0269-A01. Atos does not undertake, and specially disclaims, any obligation or obligation to update or amend any of the information above besides as if not required by regulation. This doc does not incorporate or represent an offer of Atos’ shares for sale or an invitation or inducement to invest in Atos’ shares in France, the United States of The us or any other jurisdiction.

Profits natural progress is presented at frequent scope and exchange charges.

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