21/10/2021

Tannochbrae

Built Business Tough

First quarter of 2021 – Atos

Purchase entry at € two,596 million

Reserve to invoice ratio at 96%

Profits at € two,692 million

-1.nine% at frequent forex

-3.nine% natural evolution

Electronic, Cloud, Security & Decarbonization at fifty one% of earnings (forty six% in 2020)

Continued sturdy expansion in Cybersecurity and Major Details

3 bolt-on acquisitions accelerating Team transformation

2021 objectives confirmed

Paris, April twenty, 2021

Atos, a world wide leader in electronic transformation, now announces the earnings of its 1st quarter of 2021.

Elie Girard, Atos CEO, explained: “After a file calendar year in 2020, professional dynamism remained solid in the 1st quarter of the calendar year with a book-to-invoice ratio of 96%, and a pipeline of offerings +14% higher than a calendar year ago. When the Group’s earnings decreased for the last quarter owing to the influence of Covid, down -1.nine% at frequent forex when compared to the prior calendar year, our enterprise profile has created progress towards Electronic, Cloud, Security, and Decarbonization with now fifty one% of Team earnings sent in those strategic segments.

This enterprise repositioning is the result of, 1st, our Spring transformation, and 2nd, our application of bolt-on acquisitions. In that vein, I am delighted to announce now 3 new acquisitions in the fields of Electronic Manufacturing and Products Lifecycle Management (PLM), Cryptography and Cybersecurity, and Edge and Laptop Eyesight. In get to accelerate the adjust of our enterprise mix, the Team will activate a 3rd dimension and initiate a strategic portfolio evaluate of non-main assets.

We verify the objectives for the total calendar year 2021 issued on February 18. Additionally, the Team has decided to have interaction into important actions of inside transformation, aiming at enriching the company’s electronic competencies and human cash, reinforcing accountability, as perfectly as applying cultural adjustments in total consistency with our “raison d’être”.

I am grateful to all my Atos colleagues for embarking on this transformation journey with so significantly vitality and enthusiasm.”

 

2021 Targets

The Team confirms now its objectives for its 3 essential money criteria, as mentioned on February 18, 2021:

  • Profits expansion at frequent forex: +3.5% to +four.%
  • Working margin price: +forty to 80bps versus 2020
  • Cost-free income flow: €550m to €600m

 

Q1 2021 earnings by Marketplace

In € million Q1 2021 Q1 2020* Evolution at frequent forex
Manufacturing 488 522 -6.seven%
Economical Solutions & Insurance 544 506 +seven.four%
Public Sector & Defense 579 599 -3.two%
Telecom, Media & Technology 373 393 -5.%
Assets & Solutions 395 421 -6.two%
Health care & Existence Sciences 313 303 +3.four%
Full two,692 two,744 -1.nine%
* At frequent forex

 

Profits in the 1st quarter of 2021 achieved € two,692 million, -1.nine% when compared to Q1 2020 at frequent forex, -3.nine% organically.

Covid-19 was nonetheless impacting Atos enterprise more than the quarter regardless of very good resilience in Economical Solutions & Insurance and in Health care & Existence Sciences, as perfectly as in Northern Europe, in Expanding Marketplaces and in Southern Europe which is showing an encouraging recovery.

With 18% of the Team earnings, Manufacturing described a earnings of € 488 million, symbolizing a lessen by -6.seven% when compared to Q1 2020 at frequent forex. The most significant and major challenging situation was the reduction of volumes in Germany, even though the situation tended to stabilize when compared to earlier quarters in other geographies.

Economical Solutions & Insurance earnings was € 544 million, symbolizing twenty% of the Team earnings. The Marketplace grew by +seven.four% at frequent forex when compared to Q1 2020. The action improved in most of the geographies and was largely driven by enterprise transformation assignments in Northern Europe and new electronic banking assignments in Expanding Marketplaces.

Public Sector & Defense earnings was € 579 million symbolizing 22% of the Team earnings, down -3.two% at frequent forex. The lessen was primarly owing to important Major Details task delays to subsequent quarters as perfectly as volume reduction in North The us.

Telecom, Media & Technology represented 14% of the Team earnings and achieved € 373 million, a decrease of -5.% at frequent forex when compared to Q1 2020, with a contrasted efficiency by geography. When a substantial around the world agreement with a world wide technology firm commenced to create a beneficial contribution to the Marketplace, efficiency was impacted by the foundation results of some substantial discounts executed in 2020 and not repeated in 2021.

Profits produced by Assets & Solutions in the 1st quarter of 2021 achieved € 395 million symbolizing 15% of the Team earnings. The Marketplace decreased by -6.two% at frequent forex when compared to Q1 2020 with incredibly diverse traits across its parts. When a sturdy efficiency was described with Utilities clients, the Marketplace remained impacted by the challenging situation with clients operating in Transportation and Hospitality wherever the desire continues to be affected by Covid-19.

Health care & Existence Sciences earnings was € 313 million, up by +3.four% when compared to Q1 2020 at frequent forex and symbolizing twelve% of the Team earnings. The Marketplace 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 substantial assignments sent in Q1 2020.

 

Q1 2021 earnings by Regional Small business Unit

In € million Q1 2021 Q1 2020* Evolution at frequent forex
North The us 564 622 -nine.four%
Northern Europe 730 688 +6.two%
Central Europe 609 666 -eight.5%
Southern Europe 607 596 +1.nine%
Expanding Marketplaces 181 172 +5.1%
Full two,692 two,744 -1.nine%
* At frequent forex

 

Profits in North The us achieved € 564 million, reducing by -nine.four% at frequent forex. The evolution was impacted by the timing of Covid last calendar year hitting North The us later than Europe, volume reduction in Public Sector and a person time sales in Q1 2020, which could not be repeated. In addition some assignments 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 perfectly as Cybersecurity spaces.

Profits in Northern Europe was € 730 million, growing by +6.two% at frequent forex. Solid enterprise expansion was recorded in Telecom, Media & Technology as perfectly as in Economical Solutions & Insurance and Health care & Existence Sciences. At the very same time challenges were being confronted by Public Sector & Defense as perfectly as Assets & Solutions. Manufacturing remained secure when compared to last calendar year.

Central Europe described € 609 million of earnings, down -eight.5% at frequent forex. This largely resulted from a nonetheless challenging situation in the Unified Communications & Collaboration and also in Manufacturing. Thanks to the ramp-up of quite a few new contracts, Health care & Existence Sciences, Assets & Solutions and Public Sector & Defense recorded expansion, Economical Solutions & Insurance remained just about flat regardless of some new assignments with substantial German banking establishments.

Profits in Southern Europe achieved € 607 million, growing by +1.nine% when compared to Q1 2020 at frequent forex. The expansion of the enterprise was largely led by the very good efficiency of Public Sector & Defense. Progress was also recorded in Economical Solutions & Insurance, Assets & Solutions and Health care & Existence Sciences. The situation remained challenging in Telecom, Media & Technology and to a lesser extent in Manufacturing.

Profits achieved € 181 million in Expanding Marketplaces, up +5.1% at frequent forex. In most of the Industries the action was stronger with new assignments sent extra particularly in Economical Solutions & Insurance.

 

Professional action

Throughout the 1st quarter of 2021, the Team get entry achieved € two,596 million symbolizing a Reserve-to-Monthly bill ratio of 96%, when compared to one zero one% (at frequent forex) achieved more than the very same time period last calendar year.

The major new contracts signed more than the time period were being notably in Northern Europe with a substantial Chemical client (Manufacturing) and a European telco leader (Telecom, Media & Technology), in Southern Europe with Pierre Fabre and a European leader in Pharmaceuticals (Health care & Existence Sciences), a major multi-nationwide automotive producer (Manufacturing) and quite a few contracts with Transportation clients (Assets & Solutions), and in Central Europe with a substantial European financial institution (Economical Solutions & Insurance) and Bundesagentur für Arbeit (Public Sector & Defense).

Agreement renewals of the quarter incorporated notably a major producer in optical instruments and a substantial beverage firm in Central Europe (Manufacturing), quite a few Public Sector contracts in Southern Europe, and a Telecommunications firm in Expanding markets.

In line with this dynamic professional action, the total backlog amounted to € 23.two billion at the finish of March 2021, +eight% when compared to March 2020 at frequent forex. It represented two.1 decades of earnings. The total capable pipeline achieved € eight.four billion, +14% when compared to March 2020 at frequent forex. It represented nine months of earnings.

 

Human methods

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

In the 1st quarter of 2021, the Team employed four,215 workers, the vast majority of whom in offshore and nearshore countries.

 

Acquisitions

In line with its mid-term strategy, the Team announces now the signature of 3 bolt-on acquisitions. All of them belong to the strategic locations described by the Team to accelerate its enterprise mix adjust:

  • Electronic, as a result of the acquisition of Processia, a specialist of Products Lifecycle Management (PLM)
  • Security, as a result of the acquisition of cryptovision, specialized in Cryptography options and products
  • Major Details and Analytics, as a result of the acquisition of Ipsotek, a leader in Edge and Laptop Eyesight options.

 

North The us Audit Comply with-up

The Corporation created a assertion on April 1, 2021 relating to quite a few matters similar to two US lawful entities. As a reminder, the statutory auditors determined, as aspect of their 2020 audit, inside handle weaknesses more than the money reporting procedure and earnings recognition in accordance with IFRS 15 major to quite a few accounting errors, as perfectly as possible danger of override of controls in this regard.

The two US lawful entities represent eleven% of 2020 Team earnings, they are not similar to Syntel.

Despite the more audit processes carried out by the statutory auditors in those circumstances, they were being not equipped to carry out in just the timeframe the needed work to receive enough acceptable audit evidence in regard of earnings recognition or other similar account balances of these two US entities and on the absence of content misstatements for the consolidated money statements. As a result, the statutory auditors issued a capable opinion owing to a limitation of scope on the consolidated money statements for the calendar year 2020.

As of now the Team has not determined content misstatements for the 2020 consolidated money statements. However, the conjunction of quite a few accounting errors and inside handle weaknesses deserves a serious focus and abide by-up by the Team. Thus, the Corporation has decided to perform a total accounting evaluate of the two US lawful entities and will give a standing update at the time of H1 success.

A sturdy remediation and avoidance strategy has been developed below the leadership of the Team Standard Secretary and is becoming carried out. It addresses locations these types of as preventive controls, suggestions and documentation, Human Assets evaluate, skilling and corporation as perfectly as recognition and training. Complementary examination is ongoing to make certain that the strategy is exhaustive.

 

Appendix

Profits at frequent scope and trade fees reconciliation

In € million Q1 2021 Q1 2020 % adjust
Statutory earnings two,692 two,834 -5.%
Trade fees effect -90
Profits at frequent trade fees two,692 two,744 -1.nine%
Scope effect sixty
Trade fees effect on obtained/disposed perimeters -3
Profits at frequent scope and trade fees two,692 two,801 -3.nine%

 

Scope results amounted to €+fifty seven million for earnings. They are largely similar to:

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

Forex trade fees results negatively contributed to earnings for €-90 million. They primarily arrived from the depreciation of the American greenback, the Pound sterling and the Brazilian serious against the Euro more than the time period.

 

Meeting call

Nowadays, Tuesday, April twenty, 2021, the Team will hold a conference call in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in get to comment on Atos’ Q1 2021 earnings and remedy questions from the money local community.

You can sign up for the webcast of the conference:

  • on net, in the Traders section
  • by phone with the dial-in, ten minutes prior the starting off time. You should notice that if you want to sign up for the webcast by phone, you have to sign up in progress of the conference working with the next connection:

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

Upon registration, you will be offered with Participant Dial In Numbers, a Immediate Event Passcode and a unique Registrant ID. Get in touch with reminders will also be sent via e mail the working day prior to the celebration.

Throughout the ten minutes prior to the beginning of the call, you will will need to use the conference access details offered in the e mail gained upon registration.

Following the conference, a replay of the webcast will be readily available on atos.net, in the Traders section.

 

Forthcoming activities

May perhaps twelve, 2021 Annual Standard Assembly

July 28, 2021 Initially semester 2021 success

Oct 21, 2021 3rd quarter 2021 earnings

Down load the push release in pdf

Contacts

Trader Relations: Gilles Arditti +33 6 eleven 69 81 74 [email protected]

Media: Anette Rey +33 6 69 seventy nine eighty four 88 [email protected]

 

About Atos

Atos is a world wide leader in electronic transformation with one zero five,000 employees and annual earnings of more than € eleven billion. European amount a person in cybersecurity, cloud and high efficiency computing, the Team offers tailor-made finish-to-finish options for all industries in seventy one countries. A pioneer in decarbonization companies and products, Atos is committed to a safe and decarbonized electronic for its customers. Atos operates below the makes Atos and Atos|Syntel. Atos is a SE (Societas Europaea), detailed on the CAC40 Paris stock index.

The function of Atos is to help style and design the future of the details place. Its experience and companies guidance the progress of expertise, education and learning and research in a multicultural tactic and contribute to the progress of scientific and technological excellence. Throughout the world, the Team permits its clients and employees, and members of societies at substantial to stay, work and build sustainably, in a protected and safe details place.

Disclaimers

This doc incorporates ahead-seeking statements that contain threats and uncertainties, like references, concerning the Group’s envisioned expansion and profitability in the future which could drastically influence the envisioned efficiency indicated in the ahead-seeking statements. These threats and uncertainties are linked to variables out of the handle of the Corporation and not precisely believed, these types of as current market conditions or competition behaviors. Any ahead-seeking statements created in this doc are statements about Atos’ beliefs and expectations and should be evaluated as these types of. Ahead-seeking statements involve statements that could relate to Atos’ designs, objectives, approaches, goals, future activities, future revenues or synergies, or efficiency, and other details that is not historic details. Genuine activities or success could vary from those described in this doc owing to a amount of threats and uncertainties that are described in the 2020 Common Registration Document submitted with the Autorité des Marchés Financiers (AMF) on April seven, 2021 below the registration amount D.21-0269. Atos does not undertake, and particularly disclaims, any obligation or obligation to update or amend any of the details higher than apart from as usually needed by regulation. This doc does not consist of or constitute an give of Atos’ shares for sale or an invitation or inducement to commit in Atos’ shares in France, the United States of The us or any other jurisdiction.

Atos consolidated and statutory money statements for the calendar year finished December 31, 2020, were being approved by the Board of Administrators on February 17, 2021. Pursuing their audit processes on the consolidated money statements for the calendar year finished December 31, 2020, the statutory auditors issued on April 1, 2021 a capable opinion owing to a limitation on the scope of the audit as two US lawful entities symbolizing eleven% of 2020 consolidated earnings that need more diligences. For the sake of clarity, apart from for the qualification incorporated in the statutory auditors’ report on the consolidated money statements for the calendar year finished December 31, 2020, the Team consolidated money statements are audited and the money statements incorporated in the Common Registration Document are unchanged when compared to the variation printed by the Corporation on February 18, 2021. As of now, the Team has not determined misstatements on the two US entities that are content for the consolidated money statements.

Profits natural expansion is presented at frequent scope and trade fees.

Industries involve Manufacturing (Aerospace, Automotive, Chemical compounds, Client Packaged Products (Meals & Beverage), Discrete Manufacturing, Procedure Industries, Solutions and Siemens), Economical Solutions & Insurance (Insurance, Banking & Economical Solutions, and Small business Transformation Solutions), Public Sector & Defense (Defense, Education and learning, Extraterritorial Businesses, Public Administration, Public Community Solutions and Main Situations), Telecom, Media & Technology (Significant Tech & Engineering, Media, and Telecom), Assets & Solutions (Strength, Retail, Transportation & Hospitality, and Utilities) and Health care & Existence Sciences (Health care and Pharmaceutical).

Regional Small business Models involve North The us (United states, 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 Expanding Marketplaces like 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), Main Situations and Worldwide Delivery Centers.