Third quarter of 2021 – Atos
Revenue steady at € two,666 million
at constant forex
Order entry at € two,399 million
E book to invoice ratio at 90%
Digital, Cloud, Protection & Decarbonization at fifty two% of income
Web organic boost of skills by +1,500
Team Transformation packages shifting at speed
2021 targets verified
Paris, October twenty, 2021 – Atos, a world-wide chief in digital transformation, right now announces the income of its 3rd quarter of 2021.
In the 3rd quarter, the Team ongoing to stabilize its income at constant forex, in advance of progressing into good territory. Sector demand from customers post disaster remained quite dynamic in Cloud software migration and growth and the Digital transformation of enterprise procedures by way of automation, robotisation and artificial intelligence. In all areas, consumers now involve digital remedies with the best criteria of safety, sustainability and inclusiveness, a few domains in which Atos provides unique technological experience.
The Team ongoing to pursue its deep and wide enterprise transformation program, selecting a file variety of new capabilities in a quite scorching expertise market, resulting for the initially time in a web organic boost of +1,500 personnel. This will help gasoline our expansion ambitions. In the identical vein, we strengthened our partnerships with Community Cloud hyperscalers though hanging new kinds with significant expansion Digital platforms.
Our transformation packages introduced in July are shifting at speed on all fronts. The German restructuring is well beneath way. The program to seem for partners on c. twenty% of the Team income is currently being executed with state-of-the-art discussions on our Unified Communications & Collaboration asset. The acquisition of a new digital bolt-on asset has been signed. Eventually, our LEAP cultural alter software is ramping up.
The Team Administration desires to thank our 107,000 colleagues for their remarkable assist for and devotion to this transformation journey, which is setting the suitable foundations for attaining our mid-expression targets.
Q3 2021 income by Market
| Revenue | |||
| In € million | Q3 2021 | Q3 2020* | Evolution at constant forex |
| Production | 518 | 469 | +ten.4% |
| Economic Products and services & Insurance coverage | 524 | 512 | +two.3% |
| Community Sector & Protection | 553 | 628 | -11.nine% |
| Telecom, Media & Engineering | 355 | 363 | -two.% |
| Methods & Products and services | 383 | 378 | +1.five% |
| Healthcare & Everyday living Sciences | 333 | 317 | +five.1% |
| Total | two,666 | two,666 | .% |
| * At constant forex | |||
Revenue in the 3rd quarter of 2021 reached € two,666 million, steady compared to Q3 2020 at constant forex, and decreasing by -two.3% organically. The critical segments to which the Team directs its transformation – Digital, Cloud, Protection and Decarbonization – executed a strong expansion though income was nevertheless impacted in Vintage Infrastructure.
Production claimed a income of € 518 million, representing 19% of the Team income and expanding by +ten.4% compared to Q3 2020 at constant forex. This was an acceleration of its recovery just after a next quarter currently developing by +1.eight%. Every single geography contributed to this strong expansion, pushed by a repositioning of the Market on bigger value digital initiatives and remedies to meet up with purchaser desires. Extra notably, the Market improved enterprise in software initiatives ran in Automotive and Aerospace, as well as digitization of industrial procedures which includes IoT based mostly wise manufacturing offerings.
Economic Products and services & Insurance coverage income was € 524 million throughout the 3rd quarter of 2021, representing twenty% of the Team income. Expanding by +two.3% compared to Q3 2020 at constant forex, the Market verified its general performance of the initially semester, primarily in the Insurance coverage sector though exercise with Banking establishments was much more contrasted. Business enterprise in this Market ongoing to be led by digital transformation initiatives and a strong demand from customers for cybersecurity experience, both of those included by the offerings of the Team and the synergies with the freshly obtained providers these types of as Eagle Creek, Digital.Protection, and Paladion.
Community Sector & Protection reached € 553 million representing 21% of the Team income and decreasing 12 months-on-12 months at constant forex by -11.nine% just after a +13.% in Q3 2020. This reduce arrived from volume reduction in substantial High Performance Computing (HPC) initiatives delivered past 12 months in most of the geographies and much more notably in Northern Europe, as well as the past quarter of 12 months-on-12 months effect from the substantial reduction of scope of the Texas Division of Information and facts Methods contract renewed past 12 months.
Telecom, Media & Engineering represented 13% of the Team income and reached € 355 million, decreasing by -two.% compared to Q3 2020 at constant forex. After a good next quarter, the Market experienced a much more challenging 3rd quarter as developments were mixed concerning its distinct sectors. Although initiatives in the Media sector grew thanks to an improved volume in North The us, the problem was much more challenging in High Tech & Engineering as well as in Telecom.
Revenue created by Methods & Products and services in the 3rd quarter of 2021 reached € 383 million representing fourteen% of the total income of the Team. The marketplace managed to recover and grew by +1.five% compared to Q3 2020 at constant forex just after a reduce by -two.five% in the next quarter of 2021. The problem remained contrasted across its components, with dynamism in Transportation & Hospitality, primarily in North The us and Southern Europe, though the Retail and Strength & Utilities sectors declined owing to HPC sales not recurring this 12 months compared to 2020.
Symbolizing twelve% of the Team income with € 333 million, Healthcare & Everyday living Sciences grew by +five.1% in the 3rd quarter of 2021 12 months-on-12 months at constant forex led by Northern Europe, Southern Europe, and Growing Marketplaces. In unique, the Healthcare sector recorded a quite strong general performance compared to the 3rd quarter of 2020, which much more than compensated the decline in Pharmaceutical.
Q3 2021 income by Regional Business enterprise Unit
| Revenue | |||
| In € million | Q3 2021 | Q3 2020* | Evolution at constant forex |
| North The us | 617 | 625 | -1.3% |
| Northern Europe | 674 | seven-hundred | -3.eight% |
| Central Europe | 619 | 631 | -1.eight% |
| Southern Europe | 556 | 520 | +seven.% |
| Growing Marketplaces | 201 | 191 | +4.nine% |
| Total | two,666 | two,666 | .% |
| * At constant forex | |||
The vast majority of the Regions benefited from the rebound of the demand from customers for Digital transformation, Cloud, and Cybersecurity in the sectors that have been impacted the most past 12 months these types of as Production and Hospitality & Transportation. They benefited also from a great momentum in Healthcare & Everyday living Sciences and Economic Products and services & Insurance coverage. Merged with synergies initiated from the new acquisitions, the Team managed to compensate the decline in Community Sector & Protection coming from volume reduction and some substantial HPCs delivered past 12 months in many geographies.
Revenue expansion at constant forex was strong in Southern Europe and in Growing Marketplaces.
In Southern Europe, the exercise was good in most of the Industries which includes Community Sector & Protection.
Growing Marketplaces ongoing on its development at circa +five% expansion led by the ramp-up of initiatives in Asia in Healthcare & Everyday living Sciences as well as in Telecom, Media & Engineering in Brazil and in Production by way of volume boost and new initiatives.
North The us managed to make expansion at constant forex in all Industries apart from Community Sector & Protection impacted by the Texas Division of Information and facts Methods contract and by Unified Communications & Collaboration things to do.
Northern Europe recorded a strong exercise in Production with Digital Transformation initiatives as well as in Healthcare & Everyday living Sciences. But this geography confronted unfavourable base effect on High Performance Computing in Community Sector & Protection.
Eventually, Central Europe drastically enhanced its income development compared to -ten.3% in Q2 thanks to Production ramp-up of initiatives and new contracts.
Professional exercise
All through the 3rd quarter of 2021, the Team purchase entry reached € two,399 million representing a E book-to-Monthly bill ratio of 90%.
The key new contracts signed around the period incorporated notably:
- in Production a contract with a substantial European Automotive provider for the migration to S/4 Hana Cloud (Central Europe)
- in Economic Products and services & Insurance coverage a contract with a US world-wide Insurance provider for a migration to Community Cloud combining Atos, Syntel, and Maven Wave abilities (North The us)
- in Community Sector & Protection a substantial contract with a Community authority for a Digital Transformation project (Northern Europe)
- in Telecom, Media & Engineering a Digital Transformation contract embarking Cloud, Protection, and Decarbonization providers with a European High Tech chief (Northern Europe)
- in Methods & Products and services a contract with a substantial European Utility for distribution community management and command combining SAP and Atos Strength remedies (Southern Europe) and
- in Healthcare & Everyday living Sciences a contract with a substantial Healthcare chief for the growth of digital tool to boost affected person encounter (North The us).
Agreement renewals of the quarter incorporated, in Production a substantial European car or truck producer with an extension to assist purchaser in producing data-based mostly Cloud providers (Southern Europe), in Economic Products and services & Insurance coverage a significant lender to migrate elaborate data heart and applications (Growing Marketplaces), and a scope extension with a substantial retailer Methods & Products and services (North The us).
Comprehensive backlog amounted to € 23.4 billion at the stop of September 2021, slightly down compared to June 2021. It represented two.1 a long time of income. Full experienced pipeline reached € seven.4 billion steady compared to June 2021. It represented seven.nine months of income.
Human methods
The total headcount was 106,665 at the stop of September 2021, an boost of +1,857, of which for the initially time +1,485 (+1.4%) organically in purchase to assist the rapidly developing enterprise segments (Digital, Cloud, Protection and Decarbonization) though the Team ongoing to reduce the variety of employees in Infrastructure things to do by way of automation and robotization.
In the 3rd quarter of 2021, the Team employed eight,019 employees, the vast majority of whom in offshore and nearshore countries. Attrition LTM (Previous Twelve Months) reached sixteen% at the stop of September 2021.
2021 targets verified
The Team confirms all its targets for 2021:
- Revenue expansion at constant forex: steady
- Functioning margin price: six%
- No cost dollars circulation: good.
Acquisition
The Team right now announces the acquisition of DataSentics, a European business founded in 2016 and located in Prague. DataSentics specializes in Equipment Learning and Cloud Facts engineering. The business performs on unifying data science and engineering across Europe. It employs 90 data experts. Its offerings will right away enhance Synthetic Intelligence manufacturing facility method of Atos to assist 5G and Edge offerings and accelerate critical enterprise use cases in Production, Retail, and Telecommunications.
Program to seem for partners to improve Team property
As section of its transformation and to accelerate its reprofiling in the direction of Digital, Cloud, Protection & Decarbonization, the Team introduced on July 27, 2021 the start of a substantial software to seem for partners on a volume of enterprise representing c. twenty% of its present-day income.
On Unified Communications & Collaboration, state-of-the-art discussions are at present ongoing.
On Facts Middle web hosting and linked things to do, a formal process has been released and numerous indications of interest have been obtained.
Appendix
Revenue at constant scope and trade charges reconciliation
| In € million | Q3 2021 | Q3 2020 | % alter |
| Statutory income | two,666 | two,644 | +.eight% |
| Exchange charges effect | 22 | ||
| Revenue at constant trade charges | two,666 | two,666 | .% |
| Scope effect | 63 | ||
| Exchange charges effect on obtained/disposed perimeters | 1 | ||
| Revenue at constant scope and trade charges | two,666 | two,729 | -two.3% |
Scope outcomes amounted to €+63 million for income. They are generally relevant to:
- the acquisitions closed in H2 2020 and in 2021 for €+sixty eight million and
- the disposal of some particular Unified Communications & Collaboration things to do and Wivertis GmBH in 2020, amounting for a total of €-five million.
Currency trade price outcomes positively contributed to income for €+22 million. They generally arrived from the appreciation of the British Pound towards the Euro around the period.
Convention contact
Tomorrow, Thursday, October 21, 2021, the Team will maintain a convention contact in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in purchase to comment on Atos’ Q3 2021 income and answer queries from the financial group.
You can join the webcast of the convention:
- via the next hyperlink: https://edge.media-server.com/mmc/p/9dtvfypf
- by telephone with the dial-in, ten minutes prior the starting time. Remember to observe that if you want to join the webcast by telephone, you need to sign up in progress of the convention utilizing the next hyperlink:
http://emea.directeventreg.com/registration/5061859
Upon registration, you will be supplied with Participant Dial In Numbers, a Direct Function Passcode and a unique Registrant ID. Call reminders will also be sent via electronic mail the working day prior to the party.
All through the ten minutes prior to the beginning of the contact, you will need to have to use the convention entry information and facts supplied in the electronic mail obtained upon registration.
After the convention, a replay of the webcast will be available on atos.web, in the Investors section.
Forthcoming situations
February 28, 2022 (After Sector Near) Comprehensive Yr 2021 benefits
April 27, 2022 (Before Sector Opening) Initial Quarter 2022 income
Might 18, 2022 Annual Common Assembly
July 27, 2022 (Before Sector Opening) Initial semester 2022 benefits
Contacts
Trader Relations: Gilles Arditti – +33 six 11 sixty nine 81 74 – [email protected]
Media: Anette Rey – +33 six sixty nine seventy nine eighty four 88 – [email protected]
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About Atos
Atos is a world-wide chief in digital transformation with 107,000 personnel and once-a-year income of around € 11 billion. European variety just one in cybersecurity, cloud and significant general performance computing, the Team offers tailor-made stop-to-stop remedies for all industries in 71 countries. A pioneer in decarbonization providers and solutions, Atos is committed to a secure and decarbonized digital for its purchasers. Atos is an SE (Societas Europaea), mentioned on Euronext Paris and incorporated in the CAC 40 ESG and Following twenty indexes.
The function of Atos is to help design and style the potential of the information and facts place. Its experience and providers assist the growth of understanding, education and learning and investigate in a multicultural technique and lead to the growth of scientific and technological excellence. Across the entire world, the Team permits its consumers and personnel, and customers of societies at substantial to live, perform and develop sustainably, in a risk-free and secure information and facts place.
Disclaimers
This document consists of forward-looking statements that include hazards and uncertainties, which includes references, relating to the Group’s predicted expansion and profitability in the potential which might drastically impression the predicted general performance indicated in the forward-looking statements. These hazards and uncertainties are linked to variables out of the command of the Corporation and not exactly believed, these types of as market situations or competitor’s behaviors. Any forward-looking statements built in this document are statements about Atos’ beliefs and anticipations and ought to be evaluated as these types of. Ahead-looking statements contain statements that might relate to Atos’ strategies, targets, tactics, objectives, potential situations, potential revenues or synergies, or general performance, and other information and facts that is not historical information and facts. Precise situations or benefits might vary from individuals described in this document owing to a variety of hazards and uncertainties that are described in the 2020 Common Registration Doc filed with the Autorité des Marchés Financiers (AMF) on April seven, 2021 beneath the registration variety D.21-0269 and the Modification to the 2020 Common Registration Paperwork filed with the AMF on July 30, 2021 beneath variety D.21-0269-A01. Atos does not undertake, and precisely disclaims, any obligation or responsibility to update or amend any of the information and facts earlier mentioned apart from as or else required by legislation. This document does not incorporate 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 us or any other jurisdiction.
Revenue organic expansion is presented at constant scope and trade charges.
Industries contain Production (Aerospace, Automotive, Chemical substances, Consumer Packaged Items (Foodstuff & Beverage), Discrete Production, Procedure Industries, Products and services and Siemens), Economic Products and services & Insurance coverage (Insurance coverage, Banking & Economic Products and services, and Business enterprise Transformation Products and services), Community Sector & Protection (Protection, Training, Extraterritorial Companies, Community Administration, Community Group Products and services and Important Gatherings), Telecom, Media & Engineering (High Tech & Engineering, Media, and Telecom), Methods & Products and services (Strength, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Everyday living Sciences (Healthcare and Pharmaceutical).
Regional Business enterprise Units contain North The us (United states, 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 Growing Marketplaces which includes 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), 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), Important Gatherings and World-wide Shipping and delivery Facilities.