Atos announces preliminary 2021 financial figures below objectives

Paris, January 10, 2022

Referring to EU regulation No. 596/2014, which provides that issuers shall notify the community as quickly as possible of inside info right related to them, Atos announces these days that the aims communicated to the market place on July 12, 2021 will not be satisfied thanks to a number of considerable results explained herein under.

The figures in this press launch, together with the income development at continual forex, working margin charge and free of charge hard cash movement for the calendar year 2021, are not finalized at this phase nor audited. The detailed comprehensive calendar year figures for 2021, together with prospective impairment further more to the evaluation of the recoverable amount of money of assets, will be revealed as planned on February 28, 2022 (immediately after market place close).

Rodolphe Belmer, Atos CEO, claimed: “I joined the Enterprise last week, at the time when the figures were remaining collected and consolidated. The current state of fiscal perception potential customers us to the obligation to situation a profit warning these days thanks to the considerable variance in the fiscal KPIs. Nonetheless, most of the items underlying this intense hole are non-recurring. In unique, the significant hole in Cost-free Dollars Move generally stems from working money.

I am convinced that the Enterprise has the vital assets and all the skills to function a swift turnaround. In this context, I will present at the end of February a new firm to the Board of Administrators, and in Q2 a prepare that will show the motorists of this turnaround and the target on financially rewarding development and value generation.”

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Income development

Income in 2021 achieved c. € 10.8 billion, a lessen of c. -two.4% at continual forex.

The variance in comparison to the comprehensive-calendar year aim of “stable” income came from:

• The surprising reassessment of the expense to go on transformation, replatforming and functions of a fiscal providers BPO agreement, signed in 2018 for fifteen decades with a significant British isles fiscal institution, leading to a important revision of the completion charge on the challenge, at the end of December 2021, and therefore translating into a unfavorable income impression in 2021.Affect on comprehensive-calendar year income development: c. 70 bps

• Significant Knowledge/HPCs and Unified Communications & Collaboration challenge slippages from end of 2021 to 2022 thanks to supply chain issues as well as to consumer postponements in Public Sector & Protection in the Netherlands and the British isles.Affect on comprehensive-calendar year income development: c. ninety bps

• Delay to 2022 of closing agreements with a number of significant consumers to get compensated for additional do the job performed in 2021. These amendments, envisioned to be signed in December, would have led to added income in 2021.Affect on comprehensive-calendar year income development: 30 bps and

• The lessened stage of lower margin components and application resale in December 2021.Affect on comprehensive-calendar year income development: c. fifty bps.

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Functioning margin

Functioning margin amounted to c. 4% of income in 2021. The variance in comparison to the aim of c. 6% came generally from:

• The reduction of the income booked and added expenses in 2021 on the significant BPO agreement in the British isles outlined over.Affect on working margin charge: c. ninety bps

In addition, the operate section of the BPO agreement on the remaining following 12 decades needs the provision of c. € sixty five million for future losses beneath “Other Functioning Revenue and Expenses”.

• Undertaking slippages to 2022 thanks to supply chain issues as well as to consumer postponements.Affect on working margin charge: c. 30 bps

• Delay to 2022 of closing agreements with a number of significant consumers as outlined over to get compensated for additional do the job performed in 2021.
  Affect on working margin charge: c. 30 bps and

• Better expenses than expected in 2021 on settlements to close disputes with a number of consumers at calendar year-end.Affect on working margin charge: c. forty bps.

 

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Cost-free Dollars Move

Cost-free Dollars Move is believed at c. €-420 million. The variance in comparison to the aim of good free of charge hard cash movement is generally thanks to working money and in unique to:

• € two hundred million from accelerated supplier payments at the end of 2021, as a final result of unforeseen stress from essential suppliers and subcontractors in the closing months of 2021

• € one hundred fifty million of consumer collections postponed from end of 2021 to 2022 thanks to the late acceptance of projects by a number of consumers which in the long run prevented assortment by calendar year-end

• € 60 million, of which € 30 million similar to progress payments from consumers and € 30 million impression from the significant BPO agreement in the British isles outlined herein over and

• € 30 million from the reduced stage of income of receivables.

As a reminder, the comprehensive calendar year Cost-free Dollars Move determine of €-420 million also comprises the impression of the German turnaround prepare for €-one hundred eighty million and a reduction of progress payments from consumers for €-two hundred million, as communicated on July 12, 2021.

The Internet Debt at the end of December 2021 is envisioned to be at c. €-one.two billion leading to a Internet Debt on OMDA (beneath IFRS) ratio of c. one.one. Getting into account the Worldline shares covering the Optional Trade Bond, Internet Debt on OMDA ratio is believed at c. .8.

The aims for 2022 will be revealed on February 28, 2022 at the celebration of the comprehensive-calendar year 2021 success launch.

 

Obtain the PDF variation here

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Appendix

	2021 Objectives	2021 Provisional figures
Income development at continual forex	Secure	c. -two.4%
% Functioning Margin to income	c. 6%	c. 4%
Cost-free Dollars Move	Optimistic	c. €-420 million

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Meeting phone

The Management
of Atos invitations you to an international convention phone, on Monday, January 10, 2022 at 08:00 am (CET – Paris) chaired by Rodolphe Belmer, CEO.

You can join the webcast of the convention:

• through the subsequent link: https://edge.media-server.com/mmc/p/no379pbs
• by phone with the dial-in, 10 minutes prior the setting up time. Be sure to be aware that if you want to join the webcast by phone, you should sign-up in progress of the convention working with the subsequent link: http://emea.directeventreg.com/registration/7025829

On registration, you will be presented with Participant Dial In Numbers, a Direct Function Passcode and a unique Registrant ID. Throughout the 10 minutes prior to the starting of the phone, you will require to use the convention entry info presented in the e mail gained upon registration.

Following the convention, a replay of the webcast will be accessible on atos.net, in the Buyers section.

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Forthcoming activities

February 28, 2022 (Following Market place Close) Total Yr 2021 success

April 27, 2022 (In advance of Market place Opening) Very first Quarter 2022 income

Could 18, 2022 Yearly Normal Assembly

July 27, 2022 (In advance of Market place Opening) Very first semester 2022 success

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Contacts

Investor Relations: Gilles Arditti – +33 one seventy three 26 00 66 – [email protected]

Media: Anette Rey – +33 6 sixty nine seventy nine 84 88 – [email protected]

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About Atos

Atos is a global leader in digital transformation with 107,000 employees and annual income of over € 11 billion. European amount a single in cybersecurity, cloud and substantial functionality computing, the Team provides personalized end-to-end alternatives for all industries in 71 countries. A pioneer in decarbonization providers and items, Atos is fully commited to a safe and decarbonized digital for its consumers. Atos is an SE (Societas Europaea), mentioned on Euronext Paris and included in the CAC forty ESG and Next 20 indexes.

The function of Atos is to enable style and design the future of the info place. Its skills and providers aid the advancement of understanding, schooling and investigation in a multicultural method and contribute to the advancement of scientific and technological excellence. Throughout the world, the Team allows its consumers and employees, and customers of societies at significant to are living, do the job and produce sustainably, in a safe and sound and safe info place.

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Disclaimers

This document includes ahead-hunting statements that require threats and uncertainties, together with references, regarding the Group’s envisioned development and profitability in the future which may well noticeably impression the envisioned functionality indicated in the ahead-hunting statements. These threats and uncertainties are connected to variables out of the manage of the Enterprise and not precisely believed, this sort of as market place ailments or competitor’s behaviors. Any ahead-hunting statements designed in this document are statements about Atos’ beliefs and anticipations and should really be evaluated as this sort of. Ahead-hunting statements involve statements that may well relate to Atos’ ideas, aims, techniques, objectives, future activities, future revenues or synergies, or functionality, and other info that is not historic info. Actual activities or success may well differ from people explained in this document thanks to a amount of threats and uncertainties that are explained in the 2020 Universal Registration Document submitted with the Autorité des Marchés Financiers (AMF) on April seven, 2021 beneath the registration amount D.21-0269 and the Amendment to the 2020 Universal Registration Documents submitted with the AMF on July 30, 2021 beneath amount D.21-0269-A01. Atos does not undertake, and specially disclaims, any obligation or obligation to update or amend any of the info over apart from as otherwise required by legislation. This document does not comprise or represent an provide of Atos’ shares for sale or an invitation or inducement to commit in Atos’ shares in France, the United States of The united states or any other jurisdiction.

Income organic development is introduced at continual scope and exchange premiums.

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