2021: A year of transition for Atos

Adjustment of Once-a-year Goals

Confirmation of Mid-phrase Targets

Paris, July twelve, 2021

Referring to EU regulation No. 596/2014, which gives that issuers shall inform the community as before long as possible of within facts right appropriate to them, Atos announces the adjustment of its 2021 annual objectives. The initially semester figures are not finalized nor audited, the in depth initially semester accounts will be posted as prepared on July 28, 2021.

For the duration of the next quarter, profits progress at constant forex arrived back to balance. On the other hand, natural and organic progress remained detrimental at c. -1.five% owing to an accelerated decrease of legacy infrastructure organization in a context of a substantially much better demand for article-COVID cloud migration. The Group anticipates that this organization shift will persist in the course of the next semester. The other Group companies benefitted from the financial recovery driving a booming electronic demand. In this context, the Group adjusts its aim of profits progress at constant forex for the entire yr to steady.

While for this yr the Group had predicted a larger seasonality concerning the initially and next semester, functioning margin was lessen than predicted in the initially semester at c. five.five%. Considering the profits adjustment about the entire yr, impacting legacy pursuits with a reduced small phrase price adaptability, the Group adjusts its functioning margin aim to c. six.% for the entire yr. As a consequence of this unparalleled impression on the organization, a number of exceptional items (publish-off of belongings, reduction provisions) have been booked underneath “Other Operating Profits and Expenses”. This line amounted to a whole of c. €-a hundred and sixty million in the initially semester.

For the duration of the initially semester, no cost dollars move amounted to c. €-364 million when compared to €-172 million in the course of 2020 initially semester. Cost-free dollars move was predominantly impacted by functioning money and in individual by a reduction in dollars in advance from customers. Transferring forward, the Group decides to decrease dollars in advance from customers. The adjusted aim for 2021 is a constructive no cost dollars move, to replicate the impacts from the functioning margin aim reduction, and functioning money, far more specifically on consumer advance payments. The new aim also assumes the whole one particular-off € a hundred and eighty million dollars outflow in 2021 for the German turnaround prepare (see under).

Transformation agenda and mid-phrase targets

In this context, the Group has made a decision to speed up its transformation -equally organically and inorganically- by growing its achievements in, and focusing on, Electronic, Cloud, Protection, and Decarbonization.

In individual, the strategic portfolio evaluation of non-main belongings is remaining finalized and the Group will talk on its conclusions on July 28, 2021, so as to move to execution swiftly.

Negotiations with social partners with regards to the important turnaround of the German infrastructure organization have concluded to a restructuring prepare of c. 1,300 persons, furnishing an additional 1% functioning margin at Group stage mid-phrase. The prepare will be in depth on July 28, 2021.

Immediately after a yr of changeover in 2021, the Group expects to increase on all its KPIs in 2022 and maintains its mid phrase targets of profits progress at constant forex from +five% to +seven%, functioning margin amount from 11% to twelve% and no cost dollars move conversion earlier mentioned sixty%.

North The usa Audit Adhere to up

With regards to the audit of the US authorized entities, the Group made a decision in April this yr to execute a entire accounting evaluation of those entities as of December 31, 2020, supported by external advisors.

This do the job is remaining finalized and at this stage misstatements discovered are not substance. The auditors’ do the job is also ongoing as element of their half yr evaluation.

The completion of this procedure is specific to be achieved at the time of H1 launch on July 28, 2021.

Besides, the remediation and avoidance prepare has been finalized and is remaining rolled out.

Appendix

The Administration of Atos invitations you to an worldwide convention simply call, on Monday, July twelve, 2021 at 08:00 am (CET – Paris).

You can be a part of the webcast of the convention:

• by way of the following connection: https://edge.media-server.com/mmc/p/cvgjqzz9
• by telephone with the dial-in, 10 minutes prior the commencing time. Make sure you take note that if you want to be a part of the webcast by telephone, you have to sign-up in advance of the convention applying the following connection: http://emea.directeventreg.com/registration/9249267
  On registration, you will be furnished with Participant Dial In Numbers, a Direct Event Passcode and a exceptional Registrant ID. For the duration of the 10 minutes prior to the starting of the simply call, you will require to use the convention accessibility facts furnished in the electronic mail been given on registration.

Immediately after the convention, a replay of the webcast will be available on atos.internet, in the Investors portion.

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

Forthcoming occasions

July 28, 2021               Initial semester 2021 success

October 21, 2021         3rd quarter 2021 profits

Download the push launch in pdf 

Contacts

Trader Relations:

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

Media:

Anette Rey –  +33 six 69 79 eighty four 88 – [email protected]

About Atos

Atos is a global chief in electronic transformation with one zero five,000 employees and annual profits of about € 11 billion. European number one particular in cybersecurity, cloud and superior performance computing, the Group gives customized conclusion-to-conclusion solutions for all industries in seventy one nations. A pioneer in decarbonization companies and products and solutions, Atos is committed to a safe and decarbonized electronic for its purchasers. Atos operates underneath the makes Atos and Atos|Syntel. Atos is a SE (Societas Europaea), shown on the CAC40 Paris inventory index.

The reason of Atos is to assist structure the future of the facts room. Its abilities and companies assist the development of expertise, schooling and investigation in a multicultural solution and add to the development of scientific and technological excellence. Throughout the globe, the Group permits its customers and employees, and users of societies at big to live, do the job and establish sustainably, in a safe and sound and safe facts room.

Disclaimers

This document has forward-hunting statements that involve dangers and uncertainties, such as references, regarding the Group’s predicted progress and profitability in the future which may noticeably impression the predicted performance indicated in the forward-hunting statements. These dangers and uncertainties are connected to elements out of the command of the Business and not precisely approximated, these kinds of as marketplace ailments or competitors behaviors. Any forward-hunting statements built in this document are statements about Atos’ beliefs and expectations and must be evaluated as these kinds of. Forward-hunting statements contain statements that may relate to Atos’ plans, objectives, procedures, goals, future occasions, future revenues or synergies, or performance, and other facts that is not historical facts. Precise occasions or success may differ from those explained in this document owing to a number of dangers and uncertainties that are explained in the 2020 Common Registration Doc submitted with the Autorité des Marchés Financiers (AMF) on April seven, 2021 underneath the registration number D.21-0269. Atos does not undertake, and specifically disclaims, any obligation or duty to update or amend any of the facts earlier mentioned besides as if not necessary by legislation. This document does not include or represent an present 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.

Atos consolidated and statutory financial statements for the yr finished December 31, 2020, had been authorized by the Board of Administrators on February seventeen, 2021. Following their audit methods on the consolidated financial statements for the yr finished December 31, 2020, the statutory auditors issued on April 1, 2021 a experienced view owing to a limitation on the scope of the audit as two US authorized entities symbolizing 11% of 2020 consolidated profits that need additional diligences. For the sake of clarity, besides for the qualification integrated in the statutory auditors’ report on the consolidated financial statements for the yr finished December 31, 2020, the Group consolidated financial statements are audited and the financial statements integrated in the Common Registration Doc are unchanged when compared to the edition posted by the Business on February eighteen, 2021. As of nowadays, the Group has not discovered misstatements on the two US entities that are substance for the consolidated financial statements.

Earnings natural and organic progress is presented at constant scope and exchange rates.

Industries contain Manufacturing (Aerospace, Automotive, Chemicals, Purchaser Packaged Products (Food items & Beverage), Discrete Manufacturing, Approach Industries, Providers and Siemens), Money Providers & Insurance (Insurance, Banking & Money Providers, and Company Transformation Providers), Public Sector & Defense (Defense, Training, Extraterritorial Organizations, Public Administration, Public Neighborhood Providers and Significant Events), Telecom, Media & Technological innovation (Higher Tech & Engineering, Media, and Telecom), Assets & Providers (Power, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Everyday living Sciences (Healthcare and Pharmaceutical).

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