First quarter of 2021 – Atos

• Earnings progress at consistent currency: +3.5% to +4.%
• Running margin fee: +40 to 80bps as opposed to 2020
• Absolutely free cash move: €550m to €600m

Q1 2021 income by Field

Earnings in the initial quarter of 2021 reached € 2,692 million, -1.nine% in comparison to Q1 2020 at consistent currency, -3.nine% organically.

Covid-19 was even now impacting Atos enterprise above the quarter in spite of good resilience in Fiscal Providers & Insurance and in Healthcare & Daily life Sciences, as well as in Northern Europe, in Rising Marketplaces and in Southern Europe which is demonstrating an encouraging recovery.

With eighteen% of the Team income, Production noted a income of € 488 million, symbolizing a minimize by -6.7% in comparison to Q1 2020 at consistent currency. The premier and main demanding situation was the reduction of volumes in Germany, when the situation tended to stabilize in comparison to previous quarters in other geographies.

Fiscal Providers & Insurance income was € 544 million, symbolizing 20% of the Team income. The Field grew by +7.4% at consistent currency in comparison to Q1 2020. The action elevated in most of the geographies and was mainly driven by enterprise transformation assignments in Northern Europe and new digital banking assignments in Rising Marketplaces.

Community Sector & Defense income was € 579 million symbolizing 22% of the Team income, down -3.2% at consistent currency. The minimize was primarly owing to substantial Significant Data challenge delays to subsequent quarters as well as quantity reduction in North The us.

Telecom, Media & Technological innovation represented fourteen% of the Team income and reached € 373 million, a decrease of -5.% at consistent currency in comparison to Q1 2020, with a contrasted general performance by geography. Although a substantial around the globe deal with a world-wide technology enterprise began to crank out a constructive contribution to the Field, general performance was impacted by the foundation consequences of some substantial specials carried out in 2020 and not recurring in 2021.

Earnings generated by Methods & Providers in the initial quarter of 2021 reached € 395 million symbolizing 15% of the Team income. The Field reduced by -6.2% at consistent currency in comparison to Q1 2020 with pretty diverse developments across its elements. Although a sturdy general performance was noted with Utilities shoppers, the Field remained impacted by the demanding situation with shoppers functioning in Transportation and Hospitality in which the demand proceeds to be impacted by Covid-19.

Healthcare & Daily life Sciences income was € 313 million, up by +3.4% in comparison to Q1 2020 at consistent currency and symbolizing 12% of the Team income. The Field grew in most geographies, notably in Northern Europe and in Central Europe, with only the exception of North The us which did not reiterate in 2021 some substantial assignments delivered in Q1 2020.

Q1 2021 income by Regional Company Unit

Earnings in North The us reached € 564 million, lowering by -nine.4% at consistent currency. The evolution was impacted by the timing of Covid last calendar year hitting North The us later than Europe, quantity reduction in Community Sector and one particular time product sales in Q1 2020, which could not be recurring. In addition some assignments were being postponed from Q1 2021 to subsequent quarters. This could not be compensated by the beginning of the ramp-up of new contracts in the Cloud and Electronic transformation as well as Cybersecurity spaces.

Earnings in Northern Europe was € 730 million, rising by +6.2% at consistent currency. Powerful enterprise progress was recorded in Telecom, Media & Technological innovation as well as in Fiscal Providers & Insurance and Healthcare & Daily life Sciences. At the identical time troubles were being confronted by Community Sector & Defense as well as Methods & Providers. Production remained stable in comparison to last calendar year.

Central Europe noted € 609 million of income, down -8.5% at consistent currency. This mainly resulted from a even now demanding situation in the Unified Communications & Collaboration and also in Production. Many thanks to the ramp-up of various new contracts, Healthcare & Daily life Sciences, Methods & Providers and Community Sector & Defense recorded progress, Fiscal Providers & Insurance remained just about flat in spite of some new assignments with substantial German banking establishments.

Earnings in Southern Europe reached € 607 million, rising by +1.nine% in comparison to Q1 2020 at consistent currency. The progress of the enterprise was mainly led by the good general performance of Community Sector & Defense. Expansion was also recorded in Fiscal Providers & Insurance, Methods & Providers and Healthcare & Daily life Sciences. The situation remained demanding in Telecom, Media & Technological innovation and to a lesser extent in Production.

Earnings reached € 181 million in Rising Marketplaces, up +5.1% at consistent currency. In most of the Industries the action was stronger with new assignments delivered extra particularly in Fiscal Providers & Insurance.

Industrial action

Throughout the initial quarter of 2021, the Team buy entry reached € 2,596 million symbolizing a E book-to-Invoice ratio of 96%, in comparison to 101% (at consistent currency) accomplished above the identical time period last calendar year.

The main new contracts signed above the time period were being notably in Northern Europe with a substantial Chemical shopper (Production) and a European telco chief (Telecom, Media & Technological innovation), in Southern Europe with Pierre Fabre and a European chief in Prescribed drugs (Healthcare & Daily life Sciences), a top multi-national automotive maker (Production) and various contracts with Transportation shoppers (Methods & Providers), and in Central Europe with a substantial European bank (Fiscal Providers & Insurance) and Bundesagentur für Arbeit (Community Sector & Defense).

Agreement renewals of the quarter incorporated notably a top maker in optical instruments and a substantial beverage enterprise in Central Europe (Production), various Community Sector contracts in Southern Europe, and a Telecommunications enterprise in Rising marketplaces.

In line with this dynamic professional action, the comprehensive backlog amounted to € 23.2 billion at the close of March 2021, +8% in comparison to March 2020 at consistent currency. It represented 2.1 many years of income. The comprehensive skilled pipeline reached € 8.4 billion, +fourteen% in comparison to March 2020 at consistent currency. It represented nine months of income.

Human methods

The full headcount was 104,485 at the close of March 2021, stable in comparison to 104,430 at the close of December 2020.

In the initial quarter of 2021, the Team employed 4,215 personnel, the bulk of whom in offshore and nearshore nations around the world.

Acquisitions

In line with its mid-phrase prepare, the Team announces today the signature of 3 bolt-on acquisitions. All of them belong to the strategic parts outlined by the Team to speed up its enterprise mix modify:

• Electronic, through the acquisition of Processia, a specialist of Product or service Lifecycle Administration (PLM)
• Safety, through the acquisition of cryptovision, specialized in Cryptography solutions and solutions
• Significant Data and Analytics, through the acquisition of Ipsotek, a chief in Edge and Personal computer Vision solutions.

North The us Audit Stick to-up

The Business produced a statement on April 1, 2021 concerning various issues associated to two US authorized entities. As a reminder, the statutory auditors recognized, as part of their 2020 audit, inside manage weaknesses above the fiscal reporting system and income recognition in accordance with IFRS 15 top to various accounting errors, as well as likely hazard of override of controls in this respect.

The two US authorized entities represent eleven% of 2020 Team income, they are not associated to Syntel.

In spite of the additional audit strategies carried out by the statutory auditors in those people instances, they were being not in a position to perform within just the timeframe the important function to receive ample proper audit proof in respect of income recognition or other associated account balances of these two US entities and on the absence of materials misstatements for the consolidated fiscal statements. As a final result, the statutory auditors issued a skilled view owing to a limitation of scope on the consolidated fiscal statements for the calendar year 2020.

As of today the Team has not recognized materials misstatements for the 2020 consolidated fiscal statements. On the other hand, the conjunction of various accounting errors and inside manage weaknesses deserves a major focus and comply with-up by the Team. Consequently, the Business has made a decision to conduct a comprehensive accounting critique of the two US authorized entities and will give a standing update at the time of H1 success.

A sturdy remediation and avoidance prepare has been developed underneath the management of the Team Common Secretary and is being executed. It handles parts these as preventive controls, rules and documentation, Human Methods critique, skilling and organization as well as consciousness and education. Complementary evaluation is ongoing to make sure that the prepare is exhaustive.

Appendix

Earnings at consistent scope and exchange prices reconciliation

Scope consequences amounted to €+57 million for income. They are mainly associated to:

• the acquisitions closed in 2020 and Q1 2021 for €+sixty seven million
• the disposal of some certain Unified Conversation & Collaboration pursuits and Wivertis GmBH in 2020, amounting to a full of €-ten million.

Currency exchange prices consequences negatively contributed to income for €-90 million. They mainly arrived from the depreciation of the American dollar, the Pound sterling and the Brazilian serious in opposition to the Euro above the time period.

Conference simply call

These days, Tuesday, April 20, 2021, the Team will keep a meeting simply call in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in buy to comment on Atos’ Q1 2021 income and respond to thoughts from the fiscal neighborhood.

You can be part of the webcast of the meeting:

• on web, in the Buyers part
• by phone with the dial-in, ten minutes prior the beginning time. Please observe that if you want to be part of the webcast by phone, you need to register in progress of the meeting applying the following link:

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

On registration, you will be offered with Participant Dial In Numbers, a Direct Event Passcode and a one of a kind Registrant ID. Connect with reminders will also be sent through email the day prior to the event.

Throughout the ten minutes prior to the beginning of the simply call, you will require to use the meeting entry details offered in the email received upon registration.

After the meeting, a replay of the webcast will be out there on atos.web, in the Buyers part.

Forthcoming gatherings

May well 12, 2021 Yearly Common Meeting

July 28, 2021 1st semester 2021 success

Oct 21, 2021 3rd quarter 2021 income

Download the push release in pdf

Contacts

Trader Relations: Gilles Arditti +33 6 eleven sixty nine 81 74 [email protected]

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

About Atos

Atos is a world-wide chief in digital transformation with one zero five,000 personnel and once-a-year income of above € eleven billion. European number one particular in cybersecurity, cloud and substantial general performance computing, the Team offers tailored close-to-close solutions for all industries in 71 nations around the world. A pioneer in decarbonization products and services and solutions, Atos is dedicated to a safe and decarbonized digital for its shoppers. Atos operates underneath the models Atos and Atos|Syntel. Atos is a SE (Societas Europaea), mentioned on the CAC40 Paris stock index.

The goal of Atos is to aid style and design the long run of the details house. Its expertise and products and services help the advancement of expertise, training and research in a multicultural strategy and lead to the advancement of scientific and technological excellence. Throughout the earth, the Team allows its shoppers and personnel, and users of societies at substantial to dwell, function and acquire sustainably, in a safe and sound and safe details house.

Disclaimers

This document contains forward-hunting statements that entail dangers and uncertainties, including references, about the Group’s envisioned progress and profitability in the long run which may considerably impression the envisioned general performance indicated in the forward-hunting statements. These dangers and uncertainties are linked to elements out of the manage of the Business and not specifically believed, these as sector ailments or competitors behaviors. Any forward-hunting statements produced in this document are statements about Atos’ beliefs and anticipations and really should be evaluated as these. Ahead-hunting statements include statements that may relate to Atos’ strategies, goals, strategies, goals, long run gatherings, long run revenues or synergies, or general performance, and other details that is not historic details. Genuine gatherings or success may vary from those people explained in this document owing to a number of dangers and uncertainties that are explained in the 2020 Universal Registration Doc submitted with the Autorité des Marchés Financiers (AMF) on April 7, 2021 underneath the registration number D.21-0269. Atos does not undertake, and precisely disclaims, any obligation or obligation to update or amend any of the details earlier mentioned other than as normally needed by law. This document does not incorporate or represent an offer of Atos’ shares for sale or an invitation or inducement to devote in Atos’ shares in France, the United States of The us or any other jurisdiction.

Atos consolidated and statutory fiscal statements for the calendar year ended December 31, 2020, were being accepted by the Board of Directors on February seventeen, 2021. Subsequent their audit strategies on the consolidated fiscal statements for the calendar year ended December 31, 2020, the statutory auditors issued on April 1, 2021 a skilled view owing to a limitation on the scope of the audit as two US authorized entities symbolizing eleven% of 2020 consolidated income that call for additional diligences. For the sake of clarity, other than for the qualification incorporated in the statutory auditors’ report on the consolidated fiscal statements for the calendar year ended December 31, 2020, the Team consolidated fiscal statements are audited and the fiscal statements incorporated in the Universal Registration Doc are unchanged in comparison to the model released by the Business on February eighteen, 2021. As of today, the Team has not recognized misstatements on the two US entities that are materials for the consolidated fiscal statements.

Earnings organic progress is offered at consistent scope and exchange prices.

Industries include Production (Aerospace, Automotive, Chemical compounds, Buyer Packaged Merchandise (Meals & Beverage), Discrete Production, Method Industries, Providers and Siemens), Fiscal Providers & Insurance (Insurance, Banking & Fiscal Providers, and Company Transformation Providers), Community Sector & Defense (Defense, Instruction, Extraterritorial Businesses, Community Administration, Community Neighborhood Providers and Important Gatherings), Telecom, Media & Technological innovation (Large Tech & Engineering, Media, and Telecom), Methods & Providers (Energy, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Daily life Sciences (Healthcare and Pharmaceutical).

Regional Company Units include North The us (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 Rising Marketplaces including Asia-Pacific (Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand), South The us (Argentina, Brazil, Chile, Colombia, Uruguay, and Peru), Center 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), Important Gatherings and Worldwide Shipping Centers.