First quarter of 2021 – Atos

• Profits advancement at continuous currency: +3.5% to +four.%
• Functioning margin level: +forty to 80bps versus 2020
• Absolutely free funds circulation: €550m to €600m

Q1 2021 earnings by Sector

Profits in the first quarter of 2021 arrived at € two,692 million, -1.9% compared to Q1 2020 at continuous currency, -3.9% organically.

Covid-19 was continue to impacting Atos company more than the quarter irrespective of fantastic resilience in Economic Companies & Insurance policy and in Health care & Existence Sciences, as perfectly as in Northern Europe, in Escalating Markets and in Southern Europe which is displaying an encouraging recovery.

With 18% of the Team earnings, Manufacturing claimed a earnings of € 488 million, representing a decrease by -six.7% compared to Q1 2020 at continuous currency. The largest and major hard condition was the reduction of volumes in Germany, although the condition tended to stabilize compared to previous quarters in other geographies.

Economic Companies & Insurance policy earnings was € 544 million, representing twenty% of the Team earnings. The Sector grew by +7.four% at continuous currency compared to Q1 2020. The activity amplified in most of the geographies and was generally driven by company transformation initiatives in Northern Europe and new digital banking initiatives in Escalating Markets.

Public Sector & Defense earnings was € 579 million representing 22% of the Team earnings, down -3.two% at continuous currency. The decrease was primarly owing to substantial Major Information undertaking delays to subsequent quarters as perfectly as volume reduction in North America.

Telecom, Media & Technological innovation represented fourteen% of the Team earnings and arrived at € 373 million, a decrease of -5.% at continuous currency compared to Q1 2020, with a contrasted efficiency by geography. When a big around the globe contract with a world engineering corporation started off to generate a positive contribution to the Sector, efficiency was impacted by the base results of some big discounts carried out in 2020 and not repeated in 2021.

Profits generated by Means & Companies in the first quarter of 2021 arrived at € 395 million representing fifteen% of the Team earnings. The Sector decreased by -six.two% at continuous currency compared to Q1 2020 with very unique traits across its components. When a robust efficiency was claimed with Utilities shoppers, the Sector remained impacted by the hard condition with shoppers functioning in Transportation and Hospitality where the desire carries on to be afflicted by Covid-19.

Health care & Existence Sciences earnings was € 313 million, up by +3.four% compared to Q1 2020 at continuous currency and representing twelve% of the Team earnings. The Sector grew in m
ost geographies, notably in Northern Europe and in Central Europe, with only the exception of North America which did not reiterate in 2021 some big initiatives sent in Q1 2020.

Q1 2021 earnings by Regional Business enterprise Unit

Profits in North America arrived at € 564 million, reducing by -9.four% at continuous currency. The evolution was impacted by the timing of Covid final year hitting North America afterwards than Europe, volume reduction in Public Sector and a single time revenue in Q1 2020, which could not be repeated. In addition some initiatives had been postponed from Q1 2021 to subsequent quarters. This could not be compensated by the starting of the ramp-up of new contracts in the Cloud and Digital transformation as perfectly as Cybersecurity areas.

Profits in Northern Europe was € 730 million, growing by +six.two% at continuous currency. Strong company advancement was recorded in Telecom, Media & Technological innovation as perfectly as in Economic Companies & Insurance policy and Health care & Existence Sciences. At the exact same time challenges had been faced by Public Sector & Defense as perfectly as Means & Companies. Manufacturing remained stable compared to final year.

Central Europe claimed € 609 million of earnings, down -8.5% at continuous currency. This generally resulted from a continue to hard condition in the Unified Communications & Collaboration and also in Manufacturing. Thanks to the ramp-up of numerous new contracts, Health care & Existence Sciences, Means & Companies and Public Sector & Defense recorded advancement, Economic Companies & Insurance policy remained practically flat irrespective of some new initiatives with big German banking establishments.

Profits in Southern Europe arrived at € 607 million, growing by +1.9% compared to Q1 2020 at continuous currency. The advancement of the company was generally led by the fantastic efficiency of Public Sector & Defense. Advancement was also recorded in Economic Companies & Insurance policy, Means & Companies and Health care & Existence Sciences. The condition remained hard in Telecom, Media & Technological innovation and to a lesser extent in Manufacturing.

Profits arrived at € 181 million in Escalating Markets, up +5.1% at continuous currency. In most of the Industries the activity was more robust with new initiatives sent additional specifically in Economic Companies & Insurance policy.

Professional activity

During the first quarter of 2021, the Team purchase entry arrived at € two,596 million representing a E book-to-Invoice ratio of ninety six%, compared to one hundred and one% (at continuous currency) achieved more than the exact same time period final year.

The major new contracts signed more than the time period had been notably in Northern Europe with a big Chemical purchaser (Manufacturing) and a European telco leader (Telecom, Media & Technological innovation), in Southern Europe with Pierre Fabre and a European leader in Pharmaceuticals (Health care & Existence Sciences), a primary multi-nationwide automotive maker (Manufacturing) and numerous contracts with Transportation shoppers (Means & Companies), and in Central Europe with a big European financial institution (Economic Companies & Insurance policy) and Bundesagentur für Arbeit (Public Sector & Defense).

Contract renewals of the quarter incorporated notably a primary maker in optical instruments and a big beverage corporation in Central Europe (Manufacturing), numerous Public Sector contracts in Southern Europe, and a Telecommunications corporation in Escalating markets.

In line with this dynamic commercial activity, the entire backlog amounted to € 23.two billion at the stop of March 2021, +8% compared to March 2020 at continuous currency. It represented two.1 several years of earnings. The entire capable pipeline arrived at € 8.four billion, +fourteen% compared to March 2020 at continuous currency. It represented 9 months of earnings.

Human resources

The total headcount was 104,485 at the stop of March 2021, stable compared to 104,430 at the stop of December 2020.

In the first quarter of 2021, the Team employed four,215 team, the majority of whom in offshore and nearshore nations.

Acquisitions

In line with its mid-time period system, the Team announces right now the signature of 3 bolt-on acquisitions. All of them belong to the strategic spots described by the Team to accelerate its company combine change:

• Digital, via the acquisition of Processia, a expert of Solution Lifecycle Management (PLM)
• Stability, via the acquisition of cryptovision, specialised in Cryptography methods and products and solutions
• Major Information and Analytics, via the acquisition of Ipsotek, a leader in Edge and Computer system Eyesight methods.

North America Audit Observe-up

The Business created a statement on April 1, 2021 pertaining to numerous matters relevant to two US lawful entities. As a reminder, the statutory auditors identified, as part of their 2020 audit, inside control weaknesses more than the money reporting method and earnings recognition in accordance with IFRS fifteen primary to numerous accounting mistakes, as perfectly as opportunity possibility of override of controls in this regard.

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

Regardless of the further audit techniques carried out by the statutory auditors in people conditions, they had been not in a position to complete within the timeframe the essential work to get adequate correct audit proof in regard of earnings recognition or other relevant account balances of these two US entities and on the absence of product misstatements for the consolidated money statements. As a consequence, the statutory auditors issued a capable belief owing to a limitation of scope on the consolidated money statements for the year 2020
.

As of right now the Team has not identified product misstatements for the 2020 consolidated money statements. Even so, the conjunction of numerous accounting mistakes and inside control weaknesses justifies a serious concentrate and stick to-up by the Team. Consequently, the Business has decided to perform a entire accounting evaluation of the two US lawful entities and will give a status update at the time of H1 final results.

A robust remediation and prevention system has been built beneath the management of the Team Common Secretary and is staying applied. It handles spots this kind of as preventive controls, recommendations and documentation, Human Means evaluation, skilling and group as perfectly as recognition and instruction. Complementary analysis is ongoing to guarantee that the system is exhaustive.

Appendix

Profits at continuous scope and trade rates reconciliation

Scope results amounted to €+fifty seven million for earnings. They are generally relevant to:

• the acquisitions shut in 2020 and Q1 2021 for €+sixty seven million
• the disposal of some particular Unified Conversation & Collaboration things to do and Wivertis GmBH in 2020, amounting to a total of €-10 million.

Currency trade rates results negatively contributed to earnings for €-ninety million. They largely arrived from the depreciation of the American dollar, the Pound sterling and the Brazilian genuine towards the Euro more than the time period.

Meeting phone

Today, Tuesday, April twenty, 2021, the Team will keep a meeting phone in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in purchase to remark on Atos’ Q1 2021 earnings and remedy questions from the money group.

You can sign up for the webcast of the meeting:

• on web, in the Investors portion
• by telephone with the dial-in, 10 minutes prior the starting up time. Make sure you note that if you want to sign up for the webcast by telephone, you will have to sign up in advance of the meeting working with the next link:

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

On registration, you will be supplied with Participant Dial In Quantities, a Direct Occasion Passcode and a exclusive Registrant ID. Simply call reminders will also be despatched by means of e-mail the working day prior to the celebration.

During the 10 minutes prior to the starting of the phone, you will need to use the meeting access information and facts supplied in the e-mail obtained upon registration.

Just after the meeting, a replay of the webcast will be readily available on atos.web, in the Investors portion.

Forthcoming occasions

Might twelve, 2021 Once-a-year Common Meeting

July 28, 2021 Initial semester 2021 final results

Oct 21, 2021 Third quarter 2021 earnings

Obtain the push release in pdf

Contacts

Trader Relations: Gilles Arditti +33 six eleven sixty nine 81 seventy four [email protected]

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

About Atos

Atos is a world leader in digital transformation with 105,000 staff and yearly earnings of more than € eleven billion. European variety a single in cybersecurity, cloud and higher efficiency computing, the Team delivers tailored stop-to-stop methods for all industries in 71 nations. A pioneer in decarbonization companies and products and solutions, Atos is fully commited to a secure and decarbonized digital for its clientele. Atos operates beneath the makes Atos and Atos|Syntel. Atos is a SE (Societas Europaea), shown on the CAC40 Paris inventory index.

The intent of Atos is to enable style and design the foreseeable future of the information and facts space. Its experience and companies assistance the growth of know-how, schooling and investigation in a multicultural tactic and add to the growth of scientific and technological excellence. Across the environment, the Team enables its shoppers and staff, and members of societies at big to are living, work and develop sustainably, in a risk-free and secure information and facts space.

Disclaimers

This doc consists of forward-hunting statements that entail challenges and uncertainties, like references, relating to the Group’s expected advancement and profitability in the foreseeable future which might drastically influence the expected efficiency indicated in the forward-hunting statements. These challenges and uncertainties are joined to aspects out of the control of the Business and not specifically estimated, this kind of as marketplace problems or rivals behaviors. Any forward-hunting statements created in this doc are statements about Atos’ beliefs and anticipations and must be evaluated as this kind of. Ahead-hunting statements involve statements that might relate to Atos’ strategies, objectives, techniques, plans, foreseeable future occasions, foreseeable future revenues or synergies, or efficiency, and other information and facts that is not historical information and facts. Precise occasions or final results might differ from people described in this doc owing to a variety of challenges and uncertainties that are described in the 2020 Common Registration Document submitted with the Autorité des Marchés Financiers (AMF) on April 7, 2021 beneath the registration variety D.21-0269. Atos does not undertake, and precisely disclaims, any obligation or duty to update or amend any of the information and facts previously mentioned besides as or else essential by regulation. This doc does not contain or constitute an supply of Atos’ shares for sale or an invitation or inducement to commit in Atos’ shares in France, the United States of America or any other jurisdiction.

Atos consolidated and statutory money statements for the year finished December 31, 2020, had been authorized by the Board of Directors on February 17, 2021. Subsequent their audit techniques on the consolidated money statements for the year finished December 31, 2020, the statutory auditors issued on April 1, 2021 a capable b
elief owing to a limitation on the scope of the audit as two US lawful entities representing eleven% of 2020 consolidated earnings that call for further diligences. For the sake of clarity, besides for the qualification incorporated in the statutory auditors’ report on the consolidated money statements for the year finished December 31, 2020, the Team consolidated money statements are audited and the money statements incorporated in the Common Registration Document are unchanged compared to the version printed by the Business on February 18, 2021. As of right now, the Team has not identified misstatements on the two US entities that are product for the consolidated money statements.

Profits organic advancement is offered at continuous scope and trade rates.

Industries involve Manufacturing (Aerospace, Automotive, Chemical compounds, Buyer Packaged Items (Foods & Beverage), Discrete Manufacturing, Process Industries, Companies and Siemens), Economic Companies & Insurance policy (Insurance policy, Banking & Economic Companies, and Business enterprise Transformation Companies), Public Sector & Defense (Defense, Schooling, Extraterritorial Corporations, Public Administration, Public Local community Companies and Significant Activities), Telecom, Media & Technological innovation (Superior Tech & Engineering, Media, and Telecom), Means & Companies (Power, Retail, Transportation & Hospitality, and Utilities) and Health care & Existence Sciences (Health care and Pharmaceutical).

Regional Business enterprise Models involve North America (United states, 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 Escalating Markets like 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), Significant Activities and World-wide Supply Facilities.