2021: A year of transition for Atos

Adjustment of Yearly Targets

Confirmation of Mid-term Targets

Paris, July twelve, 2021

Referring to EU regulation No. 596/2014, which delivers that issuers shall inform the general public as quickly as achievable of inside facts instantly suitable to them, Atos announces the adjustment of its 2021 annual aims. The 1st semester figures are not finalized nor audited, the specific 1st semester accounts will be released as planned on July 28, 2021.

Through the second quarter, earnings growth at continual forex came back again to stability. However, organic and natural growth remained unfavorable at c. -one.five% due to an accelerated decrease of legacy infrastructure small business in a context of a considerably much better demand from customers for put up-COVID cloud migration. The Group anticipates that this small business shift will persist for the duration of the second semester. The other Group businesses benefitted from the financial restoration driving a booming digital demand from customers. In this context, the Group adjusts its goal of earnings growth at continual forex for the entire yr to stable.

Even though for this yr the Group experienced expected a increased seasonality in between the 1st and second semester, running margin was lower than expected in the 1st semester at c. five.five%. Thinking of the earnings adjustment about the entire yr, impacting legacy pursuits with a reduced small term price tag versatility, the Group adjusts its running margin goal to c. six.% for the entire yr. As a consequence of this unprecedented influence on the small business, many exceptional objects (write-off of property, loss provisions) have been booked below “Other Working Revenue and Expenses”. This line amounted to a full of c. €-one hundred sixty million in the 1st semester.

Through the 1st semester, free money circulation amounted to c. €-364 million compared to €-172 million for the duration of 2020 1st semester. Totally free money circulation was predominantly impacted by operating money and in specific by a reduction in money in advance from shoppers. Relocating ahead, the Group decides to decrease money in advance from shoppers. The adjusted goal for 2021 is a favourable free money circulation, to reflect the impacts from the running margin goal reduction, and operating money, additional precisely on consumer advance payments. The new goal also assumes the entire one particular-off € 180 million money outflow in 2021 for the German turnaround plan (see under).

Transformation agenda and mid-term targets

In this context, the Group has made the decision to speed up its transformation -both organically and inorganically- by increasing its achievements in, and concentrating on, Digital, Cloud, Safety, and Decarbonization.

In specific, the strategic portfolio evaluation of non-core property is getting finalized and the Group will converse on its conclusions on July 28, 2021, so as to move to execution quickly.

Negotiations with social associates concerning the necessary turnaround of the German infrastructure small business have concluded to a restructuring plan of c. one,three hundred individuals, furnishing an further one% running margin at Group stage mid-term. The plan will be specific on July 28, 2021.

Following a yr of changeover in 2021, the Group expects to make improvements to on all its KPIs in 2022 and maintains its mid term targets of earnings growth at continual forex from +five% to +seven%, running margin charge from 11% to twelve% and free money circulation conversion previously mentioned sixty%.

North The united states Audit Adhere to up

Relating to the audit of the US lawful entities, the Group made the decision in April this yr to accomplish a entire accounting evaluation of all those entities as of December 31, 2020, supported by external advisors.

This do the job is getting finalized and at this stage misstatements discovered are not materials. The auditors’ do the job is also ongoing as aspect of their 50 % yr evaluation.

The completion of this course of action is focused to be obtained at the time of H1 release on July 28, 2021.

Other than, the remediation and prevention plan has been finalized and is getting rolled out.

Appendix

The Administration of Atos invitations you to an worldwide conference simply call, on Monday, July twelve, 2021 at 08:00 am (CET – Paris).

You can sign up for the webcast of the conference:

• through the subsequent hyperlink: https://edge.media-server.com/mmc/p/cvgjqzz9
• by telephone with the dial-in, 10 minutes prior the beginning time. You should observe that if you want to sign up for the webcast by telephone, you will have to sign up in advance of the conference utilizing the subsequent hyperlink: http://emea.directeventreg.com/registration/9249267
  On registration, you will be supplied with Participant Dial In Quantities, a Immediate Function Passcode and a unique Registrant ID. Through the 10 minutes prior to the beginning of the simply call, you will have to have to use the conference access facts supplied in the e mail gained on registration.

Following the conference, a replay of the webcast will be obtainable on atos.internet, in the Buyers part.

The press release will be issued on Monday, July twelve, 2021 at 07:30 am (CET – Paris).

Forthcoming functions

July 28, 2021               Very first semester 2021 benefits

Oct 21, 2021         3rd quarter 2021 earnings

Obtain the press release in pdf 

Contacts

Investor Relations:

Gilles Arditti – +33 six 11 sixty nine eighty one 74 –  [email protected]

Media:

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

About Atos

Atos is a world chief in digital transformation with one zero five,000 personnel and annual earnings of about € 11 billion. European quantity one particular in cybersecurity, cloud and higher functionality computing, the Group delivers personalized finish-to-finish answers for all industries in 71 countries. A pioneer in decarbonization providers and products, Atos is committed to a protected and decarbonized digital for its clientele. Atos operates below the manufacturers Atos and Atos|Syntel. Atos is a SE (Societas Europaea), detailed on the CAC40 Paris stock index.

The purpose of Atos is to assist style the long term of the facts space. Its knowledge and providers support the development of know-how, education and learning and analysis in a multicultural solution and add to the development of scientific and technological excellence. Across the earth, the Group permits its shoppers and personnel, and users of societies at big to dwell, do the job and acquire sustainably, in a harmless and protected facts space.

Disclaimers

This document incorporates ahead-wanting statements that include dangers and uncertainties, which include references, about the Group’s expected growth and profitability in the long term which may substantially influence the expected functionality indicated in the ahead-wanting statements. These dangers and uncertainties are connected to components out of the command of the Firm and not exactly estimated, these types of as sector situations or opponents behaviors. Any ahead-wanting statements designed in this document are statements about Atos’ beliefs and expectations and must be evaluated as these types of. Ahead-wanting statements involve statements that may relate to Atos’ strategies, aims, strategies, goals, long term functions, long term revenues or synergies, or functionality, and other facts that is not historic facts. Real functions or benefits may vary from all those explained in this document due to a quantity of dangers and uncertainties that are explained in the 2020 Common Registration Doc submitted with the Autorité des Marchés Financiers (AMF) on April seven, 2021 below the registration quantity D.21-0269. Atos does not undertake, and precisely disclaims, any obligation or accountability to update or amend any of the facts previously mentioned except as usually needed by regulation. This document does not incorporate or represent an supply 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.

Atos consolidated and statutory monetary statements for the yr ended December 31, 2020, have been authorised by the Board of Administrators on February 17, 2021. Pursuing their audit strategies on the consolidated monetary statements for the yr ended December 31, 2020, the statutory auditors issued on April one, 2021 a competent impression due to a limitation on the scope of the audit as two US lawful entities representing 11% of 2020 consolidated earnings that call for further diligences. For the sake of clarity, except for the qualification involved in the statutory auditors’ report on the consolidated monetary statements for the yr ended December 31, 2020, the Group consolidated monetary statements are audited and the monetary statements involved in the Common Registration Doc are unchanged compared to the variation released by the Firm on February 18, 2021. As of these days, the Group has not discovered misstatements on the two US entities that are materials for the consolidated monetary statements.

Profits organic and natural growth is presented at continual scope and trade premiums.

Industries involve Manufacturing (Aerospace, Automotive, Substances, Consumer Packaged Goods (Foods & Beverage), Discrete Manufacturing, Method Industries, Services and Siemens), Economic Services & Insurance (Insurance, Banking & Economic Services, and Small business Transformation Services), Public Sector & Defense (Defense, Schooling, Extraterritorial Corporations, Public Administration, Public Community Services and Major Activities), Telecom, Media & Technological innovation (High Tech & Engineering, Media, and Telecom), Resources & Services (Vitality, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Life Sciences (Healthcare and Pharmaceutical).

Regional Small business Models involve North The united states (Usa, 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 Developing 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 Coast, Kenya, Kingdom of Saudi Arabia, Madagascar, Mali, Mauritius, Morocco, Qatar, Senegal, South Africa, Tunisia, Turkey and UAE), Major Activities and Global Supply Facilities.