2021: A year of transition for Atos

Adjustment of Once-a-year Aims

Confirmation of Mid-expression Targets

 

Paris, July 12, 2021

Referring to EU regulation No. 596/2014, which presents that issuers shall advise the public as before long as doable of within details specifically relevant to them, Atos announces the adjustment of its 2021 yearly objectives. The to start with semester figures are not finalized nor audited, the in depth to start with semester accounts will be revealed as prepared on July 28, 2021.

Throughout the second quarter, earnings advancement at consistent currency came again to security. On the other hand, natural advancement remained unfavorable at c. -1.5% due to an accelerated drop of legacy infrastructure organization in a context of a considerably stronger demand from customers for write-up-COVID cloud migration. The Group anticipates that this organization change will persist during the second semester. The other Group enterprises benefitted from the economic restoration driving a booming electronic demand from customers. In this context, the Group adjusts its aim of earnings advancement at consistent currency for the comprehensive year to secure.

Although for this year the Group experienced predicted a increased seasonality concerning the to start with and second semester, operating margin was reduced than envisioned in the to start with semester at c. 5.5%. Contemplating the earnings adjustment in excess of the comprehensive year, impacting legacy actions with a very low brief expression price tag versatility, the Group adjusts its operating margin aim to c. 6.% for the comprehensive year. As a consequence of this unparalleled effect on the organization, quite a few excellent products (produce-off of assets, loss provisions) have been booked beneath “Other Operating Money and Expenses”. This line amounted to a overall of c. €-160 million in the to start with semester.

Throughout the to start with semester, free money move amounted to c. €-364 million compared to €-172 million during 2020 to start with semester. No cost money move was predominantly impacted by doing the job cash and in specific by a reduction in money in advance from buyers. Transferring ahead, the Group decides to lessen money in advance from buyers. The adjusted aim for 2021 is a beneficial free money move, to replicate the impacts from the operating margin aim reduction, and doing the job cash, far more exclusively on client advance payments. The new aim also assumes the complete one particular-off € 180 million money outflow in 2021 for the German turnaround system (see under).

Transformation agenda and mid-expression targets

In this context, the Group has decided to speed up its transformation -both equally organically and inorganically- by increasing its achievements in, and concentrating on, Electronic, Cloud, Security, and Decarbonization.

In specific, the strategic portfolio critique of non-core assets is staying finalized and the Group will connect on its conclusions on July 28, 2021, so as to go to execution quickly.

Negotiations with social partners with regards to the vital turnaround of the German infrastructure organization have concluded to a restructuring system of c. 1,three hundred people today, offering an extra 1% operating margin at Group amount mid-expression. The system will be in depth on July 28, 2021.

Soon after a year of transition in 2021, the Group expects to enhance on all its KPIs in 2022 and maintains its mid expression targets of earnings advancement at consistent currency from +5% to +7%, operating margin charge from 11% to 12% and free money move conversion earlier mentioned 60%.

North The usa Audit Follow up

Relating to the audit of the US authorized entities, the Group decided in April this year to complete a comprehensive accounting critique of people entities as of December 31, 2020, supported by exterior advisors.

This do the job is staying finalized and at this phase misstatements identified are not substance. The auditors’ do the job is also ongoing as part of their fifty percent year critique.

The completion of this approach is specific to be accomplished at the time of H1 release on July 28, 2021.

Apart from, the remediation and avoidance system has been finalized and is staying rolled out.

Appendix

 

	Modified Aims (July 12, 2021)	Preliminary Aims (February eighteen, 2021)
Revenue advancement at consistent currency	Secure	+three.5% to +four.%
% Operating Margin to earnings	c. 6.%	9.four% to 9.8%
No cost Funds Movement	Good	€550 to €600 million

 

The Management of Atos invitations you to an intercontinental conference call, on Monday, July 12, 2021 at 08:00 am (CET – Paris).

You can join the webcast of the conference:

• by using the following link: https://edge.media-server.com/mmc/p/cvgjqzz9
• by phone with the dial-in, ten minutes prior the starting up time. Remember to notice that if you want to join the webcast by phone, you ought to sign-up in advance of the conference utilizing the following link: http://emea.directeventreg.com/registration/9249267
  On registration, you will be furnished with Participant Dial In Quantities, a Direct Event Passcode and a exclusive Registrant ID. Throughout the ten minutes prior to the beginning of the call, you will have to have to use the conference obtain details furnished in the e mail obtained on registration.

Soon after the conference, a replay of the webcast will be obtainable on atos.net, in the Investors part.

The push release will be issued on Monday, July 12, 2021 at 07:30 am (CET – Paris).

 

Forthcoming occasions

July 28, 2021               Initially semester 2021 outcomes

Oct 21, 2021         3rd quarter 2021 earnings

Download the push release in pdf 

Contacts

Investor Relations:

Gilles Arditti – +33 6 11 69 eighty one 74 –  [email protected]

Media:

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

About Atos

Atos is a world leader in electronic transformation with 105,000 workforce and yearly earnings of in excess of € 11 billion. European quantity one particular in cybersecurity, cloud and high general performance computing, the Group presents customized conclude-to-conclude answers for all industries in seventy one nations around the world. A pioneer in decarbonization services and products and solutions, Atos is committed to a protected and decarbonized electronic for its clientele. Atos operates beneath the brands Atos and Atos|Syntel. Atos is a SE (Societas Europaea), listed on the CAC40 Paris stock index.

The function of Atos is to enable design the future of the details area. Its expertise and services help the development of know-how, instruction and analysis in a multicultural solution and add to the development of scientific and technological excellence. Across the entire world, the Group permits its buyers and workforce, and customers of societies at big to stay, do the job and produce sustainably, in a safe and sound and protected details area.

Disclaimers

This doc includes ahead-searching statements that require pitfalls and uncertainties, including references, concerning the Group’s envisioned advancement and profitability in the future which may perhaps noticeably effect the envisioned general performance indicated in the ahead-searching statements. These pitfalls and uncertainties are linked to aspects out of the handle of the Organization and not specifically approximated, these as market situations or competitors behaviors. Any ahead-searching statements built in this doc are statements about Atos’ beliefs and anticipations and must be evaluated as these. Ahead-searching statements consist of statements that may perhaps relate to Atos’ options, objectives, strategies, aims, future occasions, future revenues or synergies, or general performance, and other details that is not historic details. Genuine occasions or outcomes may perhaps vary from people explained in this doc due to a quantity of pitfalls and uncertainties that are explained in the 2020 Universal Registration Document filed with the Autorité des Marchés Financiers (AMF) on April 7, 2021 beneath the registration quantity D.21-0269. Atos does not undertake, and exclusively disclaims, any obligation or responsibility to update or amend any of the details earlier mentioned except as if not expected by regulation. This doc does not contain or constitute an offer you of Atos’ shares for sale or an invitation or inducement to invest in Atos’ shares in France, the United States of The usa or any other jurisdiction.

Atos consolidated and statutory money statements for the year ended December 31, 2020, had been permitted by the Board of Administrators on February 17, 2021. Next their audit techniques on the consolidated money statements for the year ended December 31, 2020, the statutory auditors issued on April 1, 2021 a qualified view due to a limitation on the scope of the audit as two US authorized entities symbolizing 11% of 2020 consolidated earnings that need extra diligences. For the sake of clarity, except for the qualification involved in the statutory auditors’ report on the consolidated money statements for the year ended December 31, 2020, the Group consolidated money statements are audited and the money statements involved in the Universal Registration Document are unchanged compared to the model revealed by the Organization on February eighteen, 2021. As of nowadays, the Group has not identified misstatements on the two US entities that are substance for the consolidated money statements.

Revenue natural advancement is introduced at consistent scope and exchange charges.

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