08/12/2021

Tannochbrae

Built Business Tough

Third quarter of 2021 – Atos

Revenue steady at € two,666 million
at continuous forex

Get entry at € two,399 million

Book to monthly bill ratio at 90%

Electronic, Cloud, Security & Decarbonization at 52% of income

Net organic and natural improve of abilities by +one,500

Group Transformation systems going at speed

2021 objectives verified

Paris, Oct 20, 2021 – Atos, a international chief in digital transformation, now announces the income of its third quarter of 2021.

In the third quarter, the Group ongoing to stabilize its income at continuous forex, just before progressing into constructive territory. Current market demand from customers article disaster remained really dynamic in Cloud application migration and growth and the Electronic transformation of company processes by means of automation, robotisation and artificial intelligence. In all locations, prospects now call for digital remedies with the optimum requirements of protection, sustainability and inclusiveness, 3 domains exactly where Atos delivers exceptional technological know-how.

The Group ongoing to pursue its deep and wide company transformation approach, selecting a document range of new techniques in a really very hot talent industry, resulting for the 1st time in a internet organic and natural improve of +one,500 workers. This will assist gasoline our development ambitions. In the identical vein, we reinforced our partnerships with Public Cloud hyperscalers although putting new kinds with significant development Electronic platforms.

Our transformation systems declared in July are going at speed on all fronts. The German restructuring is nicely less than way. The approach to glance for associates on c. 20% of the Group income is becoming executed with innovative conversations on our Unified Communications & Collaboration asset. The acquisition of a new digital bolt-on asset has been signed. Lastly, our LEAP cultural improve plan is ramping up.

The Group Management wants to thank our 107,000 colleagues for their large assistance for and commitment to this transformation journey, which is environment the right foundations for attaining our mid-term targets.

Q3 2021 income by Marketplace

Revenue
In € million Q3 2021 Q3 2020* Evolution at continuous forex
Producing 518 469 +10.4%
Monetary Solutions & Insurance 524 512 +two.3%
Public Sector & Protection 553 628 -eleven.nine%
Telecom, Media & Technological innovation 355 363 -two.%
Means & Solutions 383 378 +one.5%
Healthcare & Lifetime Sciences 333 317 +5.one%
Overall two,666 two,666 .%
* At continuous forex

 

Revenue in the third quarter of 2021 arrived at € two,666 million, steady when compared to Q3 2020 at continuous forex, and decreasing by -two.3% organically. The important segments to which the Group directs its transformation – Electronic, Cloud, Security and Decarbonization – performed a strong development although income was even now impacted in Common Infrastructure.

Producing reported a income of € 518 million, symbolizing 19% of the Group income and rising by +10.4% when compared to Q3 2020 at continuous forex. This was an acceleration of its recovery soon after a second quarter currently escalating by +one.eight%. Every geography contributed to this strong development, driven by a repositioning of the Marketplace on greater value digital initiatives and remedies to satisfy client demands. More particularly, the Marketplace enhanced company in application initiatives ran in Automotive and Aerospace, as nicely as digitization of industrial processes such as IoT based mostly wise producing offerings.

Monetary Solutions & Insurance income was € 524 million all through the third quarter of 2021, symbolizing 20% of the Group income. Growing by +two.3% when compared to Q3 2020 at continuous forex, the Marketplace verified its efficiency of the 1st semester, specifically in the Insurance sector although exercise with Banking institutions was more contrasted. Business in this Marketplace ongoing to be led by digital transformation initiatives and a strong demand from customers for cybersecurity know-how, both lined by the offerings of the Group and the synergies with the freshly acquired businesses these kinds of as Eagle Creek, Electronic.Security, and Paladion.

Public Sector & Protection arrived at € 553 million symbolizing 21% of the Group income and decreasing yr-on-yr at continuous forex by -eleven.nine% soon after a +thirteen.% in Q3 2020. This reduce arrived from quantity reduction in big Substantial Efficiency Computing (HPC) initiatives shipped final yr in most of the geographies and more particularly in Northern Europe, as nicely as the final quarter of yr-on-yr impact from the big reduction of scope of the Texas Office of Information Means contract renewed final yr.

Telecom, Media & Technological innovation represented thirteen% of the Group income and arrived at € 355 million, decreasing by -two.% when compared to Q3 2020 at continuous forex. Right after a constructive second quarter, the Marketplace experienced a more complicated third quarter as tendencies had been mixed involving its various sectors. When initiatives in the Media sector grew many thanks to an enhanced quantity in North America, the predicament was more complicated in Substantial Tech & Engineering as nicely as in Telecom.

Revenue generated by Means & Solutions in the third quarter of 2021 arrived at € 383 million symbolizing 14% of the whole income of the Group. The sector managed to get better and grew by +one.5% when compared to Q3 2020 at continuous forex soon after a reduce by -two.5% in the second quarter of 2021. The predicament remained contrasted throughout its factors, with dynamism in Transportation & Hospitality, specifically in North America and Southern Europe, although the Retail and Electrical power & Utilities sectors declined due to HPC gross sales not recurring this yr when compared to 2020.

Symbolizing 12% of the Group income with € 333 million, Healthcare & Lifetime Sciences grew by +5.one% in the third quarter of 2021 yr-on-yr at continuous forex led by Northern Europe, Southern Europe, and Developing Markets. In unique, the Healthcare sector recorded a really strong efficiency when compared to the third quarter of 2020, which more than compensated the decline in Pharmaceutical.

Q3 2021 income by Regional Business Device

Revenue
In € million Q3 2021 Q3 2020* Evolution at continuous forex
North America 617 625 -one.3%
Northern Europe 674 700 -3.eight%
Central Europe 619 631 -one.eight%
Southern Europe 556 520 +seven.%
Developing Markets 201 191 +4.nine%
Overall two,666 two,666 .%
* At continuous forex

 

The majority of the Areas benefited from the rebound of the demand from customers for Electronic transformation, Cloud, and Cybersecurity in the sectors that have been impacted the most final yr these kinds of as Producing and Hospitality & Transportation. They benefited also from a fantastic momentum in Healthcare & Lifetime Sciences and Monetary Solutions & Insurance. Merged with synergies initiated from the new acquisitions, the Group managed to compensate the decline in Public Sector & Protection coming from quantity reduction and some big HPCs shipped final yr in a number of geographies.

Revenue development at continuous forex was strong in Southern Europe and in Developing Markets.

In Southern Europe, the exercise was strong in most of the Industries such as Public Sector & Protection.

Developing Markets ongoing on its pattern at circa +5% development led by the ramp-up of initiatives in Asia in Healthcare & Lifetime Sciences as nicely as in Telecom, Media & Technological innovation in Brazil and in Producing by means of quantity improve and new initiatives.

North America managed to deliver development at continuous forex in all Industries apart from Public Sector & Protection impacted by the Texas Office of Information Means contract and by Unified Communications & Collaboration routines.

Northern Europe recorded a strong exercise in Producing with Electronic Transformation initiatives as nicely as in Healthcare & Lifetime Sciences. But this geography faced unfavourable base impact on Substantial Efficiency Computing in Public Sector & Protection.

Lastly, Central Europe drastically enhanced its income pattern when compared to -10.3% in Q2 many thanks to Producing ramp-up of initiatives and new contracts.

Industrial exercise

For the duration of the third quarter of 2021, the Group get entry arrived at € two,399 million symbolizing a Book-to-Invoice ratio of 90%.

The main new contracts signed above the period involved notably:

  • in Producing a contract with a big European Automotive provider for the migration to S/4 Hana Cloud (Central Europe)
  • in Monetary Solutions & Insurance a contract with a US international Insurance provider for a migration to Public Cloud combining Atos, Syntel, and Maven Wave abilities (North America)
  • in Public Sector & Protection a big contract with a Public authority for a Electronic Transformation venture (Northern Europe)
  • in Telecom, Media & Technological innovation a Electronic Transformation contract embarking Cloud, Security, and Decarbonization expert services with a European Substantial Tech chief (Northern Europe)
  • in Means & Solutions a contract with a big European Utility for distribution network management and manage combining SAP and Atos Electrical power remedies (Southern Europe) and
  • in Healthcare & Lifetime Sciences a contract with a big Healthcare chief for the growth of digital instrument to enrich affected individual expertise (North America).

Contract renewals of the quarter involved, in Producing a big European vehicle producer with an extension to assistance client in creating information-based mostly Cloud expert services (Southern Europe), in Monetary Solutions & Insurance a major lender to migrate sophisticated information heart and programs (Developing Markets), and a scope extension with a big retailer Means & Solutions (North America).

Whole backlog amounted to € 23.4 billion at the conclusion of September 2021, a little bit down when compared to June 2021. It represented two.one many years of income. Full certified pipeline arrived at € seven.4 billion steady when compared to June 2021. It represented seven.nine months of income.

Human assets

The whole headcount was 106,665 at the conclusion of September 2021, an improve of +one,857, of which for the 1st time +one,485 (+one.4%) organically in get to assistance the rapidly escalating company segments (Electronic, Cloud, Security and Decarbonization) although the Group ongoing to reduce the range of team in Infrastructure routines by means of automation and robotization.

In the third quarter of 2021, the Group employed eight,019 team, the majority of whom in offshore and nearshore international locations. Attrition LTM (Previous Twelve Months) arrived at 16% at the conclusion of September 2021.

2021 objectives verified

The Group confirms all its objectives for 2021:

  • Revenue development at continuous forex: steady
  • Running margin charge: six%
  • Free of charge hard cash movement: constructive.

Acquisition

The Group now announces the acquisition of DataSentics, a European business founded in 2016 and found in Prague. DataSentics specializes in Device Mastering and Cloud Info engineering. The business will work on unifying information science and engineering throughout Europe. It employs 90 information researchers. Its offerings will immediately complement Artificial Intelligence manufacturing facility strategy of Atos to assistance 5G and Edge offerings and speed up important company use conditions in Producing, Retail, and Telecommunications.

Method to glance for associates to enhance Group property

As portion of its transformation and to speed up its reprofiling toward Electronic, Cloud, Security & Decarbonization, the Group declared on July 27, 2021 the launch of a big plan to glance for associates on a quantity of company symbolizing c. 20% of its present-day income.

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

On Info Heart web hosting and associated routines, a official process has been launched and multiple indications of fascination have been been given.

 

Appendix

 

Revenue at continuous scope and exchange costs reconciliation

In € million Q3 2021 Q3 2020 % improve
Statutory income two,666 two,644 +.eight%
Trade costs impact 22
Revenue at continuous exchange costs two,666 two,666 .%
Scope impact 63
Trade costs impact on acquired/disposed perimeters one
Revenue at continuous scope and exchange costs two,666 two,729 -two.3%

 

Scope effects amounted to €+63 million for income. They are predominantly linked to:

  • the acquisitions shut in H2 2020 and in 2021 for €+68 million and
  • the disposal of some particular Unified Communications & Collaboration routines and Wivertis GmBH in 2020, amounting for a whole of €-5 million.

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

Convention phone

Tomorrow, Thursday, Oct 21, 2021, the Group will keep a meeting phone in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in get to remark on Atos’ Q3 2021 income and solution questions from the money community.

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

  • by using the following url: https://edge.media-server.com/mmc/p/9dtvfypf
  • by telephone with the dial-in, 10 minutes prior the starting off time. You should observe that if you want to be a part of the webcast by telephone, you need to sign-up in progress of the meeting working with the following url:

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

On registration, you will be provided with Participant Dial In Quantities, a Immediate Event Passcode and a exceptional Registrant ID. Connect with reminders will also be sent by using e mail the working day prior to the occasion.

For the duration of the 10 minutes prior to the starting of the phone, you will have to have to use the meeting obtain information and facts provided in the e mail been given upon registration.

Right after the meeting, a replay of the webcast will be out there on atos.internet, in the Traders portion.

Forthcoming situations

February 28, 2022 (Right after Current market Near) Whole Year 2021 benefits

April 27, 2022 (Right before Current market Opening) Initial Quarter 2022 income

Could 18, 2022 Yearly Normal Meeting

July 27, 2022 (Right before Current market Opening) Initial semester 2022 benefits

Contacts

Investor Relations: Gilles Arditti – +33 six eleven sixty nine 81 74 – [email protected]

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

***

Down load the PDF version of the doc here

About Atos

Atos is a international chief in digital transformation with 107,000 workers and annual income of above € eleven billion. European range a single in cybersecurity, cloud and significant efficiency computing, the Group offers tailor-made conclusion-to-conclusion remedies for all industries in 71 international locations. A pioneer in decarbonization expert services and solutions, Atos is committed to a secure and decarbonized digital for its purchasers. Atos is an SE (Societas Europaea), stated on Euronext Paris and involved in the CAC 40 ESG and Future 20 indexes.

The purpose of Atos is to assist layout the long run of the information and facts house. Its know-how and expert services assistance the growth of awareness, instruction and investigate in a multicultural strategy and lead to the growth of scientific and technological excellence. Across the globe, the Group enables its prospects and workers, and users of societies at big to stay, function and build sustainably, in a secure and secure information and facts house.

Disclaimers

This doc is made up of forward-on the lookout statements that contain threats and uncertainties, such as references, concerning the Group’s predicted development and profitability in the long run which might drastically influence the predicted efficiency indicated in the forward-on the lookout statements. These threats and uncertainties are joined to aspects out of the manage of the Corporation and not specifically believed, these kinds of as industry ailments or competitor’s behaviors. Any forward-on the lookout statements created in this doc are statements about Atos’ beliefs and anticipations and ought to be evaluated as these kinds of. Forward-on the lookout statements incorporate statements that might relate to Atos’ designs, objectives, procedures, goals, long run situations, long run revenues or synergies, or efficiency, and other information and facts that is not historic information and facts. Precise situations or benefits might differ from these described in this doc due to a range of threats and uncertainties that are described within just the 2020 Common Registration Document submitted with the Autorité des Marchés Financiers (AMF) on April seven, 2021 less than the registration range D.21-0269 and the Amendment to the 2020 Common Registration Documents submitted with the AMF on July 30, 2021 less than range D.21-0269-A01. Atos does not undertake, and especially disclaims, any obligation or duty to update or amend any of the information and facts above apart from as if not needed by legislation. This doc does not incorporate or constitute an offer of Atos’ shares for sale or an invitation or inducement to spend in Atos’ shares in France, the United States of America or any other jurisdiction.

Revenue organic and natural development is presented at continuous scope and exchange costs.

Industries incorporate Producing (Aerospace, Automotive, Chemicals, Shopper Packaged Items (Food & Beverage), Discrete Producing, Process Industries, Solutions and Siemens), Monetary Solutions & Insurance (Insurance, Banking & Monetary Solutions, and Business Transformation Solutions), Public Sector & Protection (Protection, Instruction, Extraterritorial Corporations, Public Administration, Public Group Solutions and Main Functions), Telecom, Media & Technological innovation (Substantial Tech & Engineering, Media, and Telecom), Means & Solutions (Electrical power, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Lifetime Sciences (Healthcare and Pharmaceutical).

Regional Business Models incorporate North America (Usa, 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 Developing Markets such as 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), 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), Main Functions and World-wide Supply Centers.