Atos announces preliminary 2021 financial figures below objectives

Paris, January 10, 2022

Referring to EU regulation No. 596/2014, which delivers that issuers shall advise the community as quickly as feasible of inside facts straight appropriate to them, Atos announces now that the goals communicated to the marketplace on July twelve, 2021 will not be fulfilled because of to numerous sizeable results explained herein below.

The figures in this press launch, including the revenue progress at continuous currency, operating margin fee and absolutely free money stream for the calendar year 2021, are not finalized at this phase nor audited. The detailed full calendar year figures for 2021, including likely impairment more to the evaluation of the recoverable quantity of belongings, will be published as planned on February 28, 2022 (following marketplace near).

Rodolphe Belmer, Atos CEO, claimed: “I joined the Organization previous 7 days, at the time when the figures were being becoming collected and consolidated. The existing state of fiscal insight leads us to the obligation to difficulty a earnings warning now because of to the sizeable variance in the fiscal KPIs. Having said that, most of the objects fundamental this intense gap are non-recurring. In specific, the massive gap in Cost-free Funds Circulation mostly stems from performing cash.

I am certain that the Organization has the vital belongings and all the skills to work a swift turnaround. In this context, I will current at the end of February a new firm to the Board of Administrators, and in Q2 a plan that will exhibit the motorists of this turnaround and the focus on rewarding progress and value development.”

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Revenue progress

Revenue in 2021 arrived at c. € 10.eight billion, a lower of c. -2.4% at continuous currency.

The variance as opposed to the full-calendar year goal of “stable” revenue came from:

  • The sudden reassessment of the cost to go on transformation, replatforming and operations of a fiscal services BPO contract, signed in 2018 for 15 many years with a massive British isles fiscal establishment, top to a big revision of the completion fee on the task, at the end of December 2021, and consequently translating into a detrimental revenue impression in 2021.Affect on full-calendar year revenue progress: c. 70 bps
  • Massive Facts/HPCs and Unified Communications & Collaboration task slippages from end of 2021 to 2022 because of to supply chain challenges as effectively as to consumer postponements in Community Sector & Protection in the Netherlands and the British isles.Affect on full-calendar year revenue progress: c. ninety bps
  • Hold off to 2022 of remaining agreements with numerous massive consumers to get compensated for more work done in 2021. These amendments, envisioned to be signed in December, would have led to more revenue in 2021.Affect on full-calendar year revenue progress: 30 bps and
  • The diminished degree of reduced margin hardware and application resale in December 2021.Affect on full-calendar year revenue progress: c. fifty bps.

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Working margin

Working margin amounted to c. 4% of revenue in 2021. The variance as opposed to the goal of c. 6% came mostly from:

  • The reduction of the revenue booked and more costs in 2021 on the massive BPO contract in the British isles described over.Affect on operating margin fee: c. ninety bps

Moreover, the operate phase of the BPO contract on the remaining subsequent twelve many years calls for the provision of c. € 65 million for future losses underneath “Other Working Revenue and Expenses”.

  • Task slippages to 2022 because of to supply chain challenges as effectively as to consumer postponements.Affect on operating margin fee: c. 30 bps
  • Hold off to 2022 of remaining agreements with numerous massive consumers as described over to get compensated for more work done in 2021.
    Affect on operating margin fee: c. 30 bps and
  • Increased costs than anticipated in 2021 on settlements to near disputes with numerous consumers at calendar year-end.Affect on operating margin fee: c. forty bps.

 

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Cost-free Funds Circulation

Cost-free Funds Circulation is estimated at c. €-420 million. The variance as opposed to the goal of positive absolutely free money stream is mostly because of to performing cash and in specific to:

  • € two hundred million from accelerated supplier payments at the end of 2021, as a consequence of unexpected pressure from important suppliers and subcontractors in the remaining weeks of 2021
  • € one hundred fifty million of consumer collections postponed from end of 2021 to 2022 because of to the late acceptance of initiatives by numerous consumers which finally prevented assortment by calendar year-end
  • € sixty million, of which € 30 million related to progress payments from consumers and € 30 million impression from the massive BPO contract in the British isles described herein over and
  • € 30 million from the decreased degree of gross sales of receivables.

As a reminder, the full calendar year Cost-free Funds Circulation determine of €-420 million also includes the impression of the German turnaround plan for €-one hundred eighty million and a reduction of progress payments from consumers for €-two hundred million, as communicated on July twelve, 2021.

The Net Debt at the end of December 2021 is envisioned to be at c. €-1.2 billion top to a Net Debt on OMDA (underneath IFRS) ratio of c. 1.1. Using into account the Worldline shares covering the Optional Exchange Bond, Net Debt on OMDA ratio is estimated at c. .eight.

The goals for 2022 will be published on February 28, 2022 at the occasion of the full-calendar year 2021 success launch.

 

Obtain the PDF version here

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Appendix

2021 Goals 2021 Provisional figures
Revenue progress at continuous currency Stable c. -2.4%
% Working Margin to revenue c. 6% c. 4%
Cost-free Funds Circulation Good c. €-420 million

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Conference simply call

The Management of Atos invitations you to an global meeting simply call, on Monday, January 10, 2022 at 08:00 am (CET – Paris) chaired by Rodolphe Belmer, CEO.

You can join the webcast of the meeting:

  • by means of the pursuing backlink: https://edge.media-server.com/mmc/p/no379pbs
  • by phone with the dial-in, 10 minutes prior the beginning time. Please note that if you want to join the webcast by phone, you will have to sign up in progress of the meeting making use of the pursuing backlink: http://emea.directeventreg.com/registration/7025829

Upon registration, you will be provided with Participant Dial In Figures, a Direct Function Passcode and a exclusive Registrant ID. All through the 10 minutes prior to the beginning of the simply call, you will require to use the meeting obtain facts provided in the email acquired on registration.

Right after the meeting, a replay of the webcast will be available on atos.web, in the Buyers area.

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Forthcoming functions

February 28, 2022 (Right after Marketplace Close) Comprehensive 12 months 2021 success

April 27, 2022 (Before Marketplace Opening) Initial Quarter 2022 revenue

Might eighteen, 2022 Once-a-year Typical Conference

July 27, 2022 (Before Marketplace Opening) Initial semester 2022 success

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Contacts

Investor Relations: Gilles Arditti – +33 1 seventy three 26 00 sixty six – [email protected]

Media: Anette Rey – +33 6 sixty nine 79 eighty four 88 – [email protected]

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About Atos

Atos is a world leader in electronic transformation with 107,000 employees and once-a-year revenue of around € 11 billion. European amount a single in cybersecurity, cloud and significant efficiency computing, the Team delivers customized end-to-end options for all industries in 71 international locations. A pioneer in decarbonization services and products and solutions, Atos is committed to a safe and decarbonized electronic for its purchasers. Atos is an SE (Societas Europaea), outlined on Euronext Paris and provided in the CAC forty ESG and Next 20 indexes.

The intent of Atos is to assistance style the future of the facts room. Its abilities and services assistance the advancement of knowledge, training and investigation in a multicultural tactic and add to the advancement of scientific and technological excellence. Across the entire world, the Team allows its consumers and employees, and users of societies at massive to are living, work and produce sustainably, in a harmless and safe facts room.

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Disclaimers

This doc consists of forward-wanting statements that entail threats and uncertainties, including references, concerning the Group’s envisioned progress and profitability in the future which might considerably impression the envisioned efficiency indicated in the forward-wanting statements. These threats and uncertainties are connected to aspects out of the control of the Organization and not exactly estimated, this kind of as marketplace situations or competitor’s behaviors. Any forward-wanting statements created in this doc are statements about Atos’ beliefs and anticipations and should be evaluated as this kind of. Forward-wanting statements consist of statements that might relate to Atos’ programs, goals, methods, plans, future functions, future revenues or synergies, or efficiency, and other facts that is not historic facts. Genuine functions or success might vary from those people explained in this doc because of to a amount of threats and uncertainties that are explained inside 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 30, 2021 underneath amount D.21-0269-A01. Atos does not undertake, and specially disclaims, any obligation or responsibility to update or amend any of the facts over except as normally required by regulation. This doc does not include or represent an give of Atos’ shares for sale or an invitation or inducement to spend in Atos’ shares in France, the United States of The usa or any other jurisdiction.

Revenue natural progress is introduced at continuous scope and exchange premiums.

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