First quarter of 2021 – Atos

• Income progress at continual forex: +3.five% to +four.%
• Operating margin charge: +40 to 80bps compared to 2020
• Free income movement: €550m to €600m

Q1 2021 revenue by Marketplace

Income in the 1st quarter of 2021 arrived at € two,692 million, -one.9% as opposed to Q1 2020 at continual forex, -3.9% organically.

Covid-19 was nonetheless impacting Atos business enterprise above the quarter regardless of excellent resilience in Economical Services & Insurance policies and in Health care & Life Sciences, as nicely as in Northern Europe, in Increasing Markets and in Southern Europe which is showing an encouraging recovery.

With 18% of the Team revenue, Manufacturing reported a revenue of € 488 million, symbolizing a reduce by -six.7% as opposed to Q1 2020 at continual forex. The major and principal tough circumstance was the reduction of volumes in Germany, even though the circumstance tended to stabilize as opposed to previous quarters in other geographies.

Economical Services & Insurance policies revenue was € 544 million, symbolizing twenty% of the Team revenue. The Marketplace grew by +7.four% at continual forex as opposed to Q1 2020. The activity enhanced in most of the geographies and was mostly pushed by business enterprise transformation assignments in Northern Europe and new digital banking assignments in Increasing Markets.

Community Sector & Protection revenue was € 579 million symbolizing 22% of the Team revenue, down -3.two% at continual forex. The reduce was primarly thanks to considerable Large Info project delays to subsequent quarters as nicely as volume reduction in North The united states.

Telecom, Media & Know-how represented fourteen% of the Team revenue and arrived at € 373 million, a decline of -five.% at continual forex as opposed to Q1 2020, with a contrasted general performance by geography. Whilst a significant globally deal with a world wide technologies organization began to create a positive contribution to the Marketplace, general performance was impacted by the base effects of some significant offers done in 2020 and not recurring in 2021.

Income generated by Resources & Services in the 1st quarter of 2021 arrived at € 395 million symbolizing fifteen% of the Team revenue. The Marketplace decreased by -six.two% at continual forex as opposed to Q1 2020 with really unique trends throughout its components. Whilst a robust general performance was reported with Utilities prospects, the Marketplace remained impacted by the tough circumstance with prospects functioning in Transportation and Hospitality exactly where the need carries on to be influenced by Covid-19.

Health care & Life Sciences revenue was € 313 million, up by +3.four% as opposed to Q1 2020 at continual forex
and symbolizing twelve% of the Team revenue. The Marketplace grew in most geographies, notably in Northern Europe and in Central Europe, with only the exception of North The united states which did not reiterate in 2021 some significant assignments shipped in Q1 2020.

Q1 2021 revenue by Regional Enterprise Unit

Income in North The united states arrived at € 564 million, decreasing by -9.four% at continual forex. The evolution was impacted by the timing of Covid past calendar year hitting North The united states afterwards than Europe, volume reduction in Community Sector and a person time income in Q1 2020, which could not be recurring. In addition some assignments were postponed from Q1 2021 to subsequent quarters. This could not be compensated by the commencing of the ramp-up of new contracts in the Cloud and Digital transformation as nicely as Cybersecurity areas.

Income in Northern Europe was € 730 million, expanding by +six.two% at continual forex. Potent business enterprise progress was recorded in Telecom, Media & Know-how as nicely as in Economical Services & Insurance policies and Health care & Life Sciences. At the similar time troubles were confronted by Community Sector & Protection as nicely as Resources & Services. Manufacturing remained secure as opposed to past calendar year.

Central Europe reported € 609 million of revenue, down -8.five% at continual forex. This mostly resulted from a nonetheless tough circumstance in the Unified Communications & Collaboration and also in Manufacturing. Thanks to the ramp-up of various new contracts, Health care & Life Sciences, Resources & Services and Community Sector & Protection recorded progress, Economical Services & Insurance policies remained just about flat regardless of some new assignments with significant German banking establishments.

Income in Southern Europe arrived at € 607 million, expanding by +one.9% as opposed to Q1 2020 at continual forex. The progress of the business enterprise was mostly led by the excellent general performance of Community Sector & Protection. Advancement was also recorded in Economical Services & Insurance policies, Resources & Services and Health care & Life Sciences. The circumstance remained tough in Telecom, Media & Know-how and to a lesser extent in Manufacturing.

Income arrived at € 181 million in Increasing Markets, up +five.one% at continual forex. In most of the Industries the activity was more robust with new assignments shipped extra specially in Economical Services & Insurance policies.

Professional activity

Throughout the 1st quarter of 2021, the Team purchase entry arrived at € two,596 million symbolizing a E book-to-Monthly bill ratio of ninety six%, as opposed to one hundred and one% (at continual forex) accomplished above the similar interval past calendar year.

The principal new contracts signed above the interval were notably in Northern Europe with a significant Chemical buyer (Manufacturing) and a European telco chief (Telecom, Media & Know-how), in Southern Europe with Pierre Fabre and a European chief in Prescribed drugs (Health care & Life Sciences), a foremost multi-countrywide automotive manufacturer (Manufacturing) and various contracts with Transportation prospects (Resources & Services), and in Central Europe with a significant European financial institution (Economical Services & Insurance policies) and Bundesagentur für Arbeit (Community Sector & Protection).

Deal renewals of the quarter bundled notably a foremost manufacturer in optical devices and a significant beverage organization in Central Europe (Manufacturing), various Community Sector contracts in Southern Europe, and a Telecommunications organization in Increasing markets.

In line with this dynamic professional activity, the comprehensive backlog amounted to € 23.two billion at the stop of March 2021, +8% as opposed to March 2020 at continual forex. It represented two.one many years of revenue. The comprehensive competent pipeline arrived at € 8.four billion, +fourteen% as opposed to March 2020 at continual forex. It represented 9 months of revenue.

Human resources

The full headcount was 104,485 at the stop of March 2021, secure as opposed to 104,430 at the stop of December 2020.

In the 1st quarter of 2021, the Team employed four,215 workers, the bulk of whom in offshore and nearshore international locations.

Acquisitions

In line with its mid-time period program, the Team announces today the signature of 3 bolt-on acquisitions. All of them belong to the strategic regions defined by the Team to speed up its business enterprise combine alter:

• Digital, by means of the acquisition of Processia, a expert of Merchandise Lifecycle Management (PLM)
• Security, by means of the acquisition of cryptovision, specialized in Cryptography options and merchandise
• Large Info and Analytics, by means of the acquisition of Ipsotek, a chief in Edge and Laptop or computer Vision options.

North The united states Audit Stick to-up

The Corporation created a assertion on April one, 2021 with regards to various issues relevant to two US legal entities. As a reminder, the statutory auditors determined, as element of their 2020 audit, inside control weaknesses above the economical reporting method and revenue recognition in accordance with IFRS fifteen foremost to various accounting mistakes, as nicely as probable risk of override of controls in this regard.

The two US legal entities symbolize 11% of 2020 Team revenue, they are not relevant to Syntel.

Despite the additional audit procedures carried out by the statutory auditors in these instances, they were not ready to accomplish in just the timeframe the needed operate to obtain adequate appropriate audit evidence in regard of revenue recognition or other relevant account balances of these two US entities and on the absence of material misstatements for
the consolidated economical statements. As a result, the statutory auditors issued a competent opinion thanks to a limitation of scope on the consolidated economical statements for the calendar year 2020.

As of today the Team has not determined material misstatements for the 2020 consolidated economical statements. Even so, the conjunction of various accounting mistakes and inside control weaknesses warrants a serious target and observe-up by the Team. As a result, the Corporation has resolved to conduct a comprehensive accounting critique of the two US legal entities and will give a status update at the time of H1 final results.

A robust remediation and prevention program has been designed beneath the management of the Team General Secretary and is being applied. It addresses regions this kind of as preventive controls, rules and documentation, Human Resources critique, skilling and organization as nicely as recognition and schooling. Complementary evaluation is ongoing to be certain that the program is exhaustive.

Appendix

Income at continual scope and exchange charges reconciliation

Scope effects amounted to €+57 million for revenue. They are mostly relevant to:

• the acquisitions closed in 2020 and Q1 2021 for €+67 million
• the disposal of some particular Unified Communication & Collaboration actions and Wivertis GmBH in 2020, amounting to a full of €-10 million.

Currency exchange charges effects negatively contributed to revenue for €-90 million. They mostly arrived from the depreciation of the American dollar, the Pound sterling and the Brazilian authentic against the Euro above the interval.

Convention simply call

Nowadays, Tuesday, April twenty, 2021, the Team will maintain a meeting simply call in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in purchase to comment on Atos’ Q1 2021 revenue and remedy queries from the economical group.

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

• on net, in the Investors segment
• by telephone with the dial-in, 10 minutes prior the commencing time. Remember to note that if you want to be a part of the webcast by telephone, you ought to sign-up in advance of the meeting utilizing the following backlink:

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

Upon registration, you will be furnished with Participant Dial In Numbers, a Direct Party Passcode and a special Registrant ID. Connect with reminders will also be sent by using e mail the day prior to the occasion.

Throughout the 10 minutes prior to the commencing of the simply call, you will will need to use the meeting accessibility details furnished in the e mail gained on registration.

Following the meeting, a replay of the webcast will be out there on atos.net, in the Investors segment.

Forthcoming gatherings

May perhaps twelve, 2021 Yearly General Meeting

July 28, 2021 First semester 2021 final results

October 21, 2021 Third quarter 2021 revenue

Download the press release 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 world wide chief in digital transformation with 105,000 employees and once-a-year revenue of above € 11 billion. European range a person in cybersecurity, cloud and large general performance computing, the Team delivers tailor-made stop-to-stop options for all industries in seventy one international locations. A pioneer in decarbonization products and services and merchandise, Atos is fully commited to a secure and decarbonized digital for its customers. Atos operates beneath the brand names Atos and Atos|Syntel. Atos is a SE (Societas Europaea), detailed on the CAC40 Paris stock index.

The goal of Atos is to help design the upcoming of the details space. Its experience and products and services help the advancement of knowledge, education and investigate in a multicultural method and add to the advancement of scientific and technological excellence. Across the earth, the Team permits its prospects and employees, and associates of societies at significant to reside, operate and produce sustainably, in a protected and secure details space.

Disclaimers

This document includes ahead-hunting statements that contain pitfalls and uncertainties, together with references, relating to the Group’s expected progress and profitability in the upcoming which could noticeably affect the expected general performance indicated in the ahead-hunting statements. These pitfalls and uncertainties are connected to variables out of the control of the Corporation and not precisely estimated, this kind of as sector disorders or competitors behaviors. Any ahead-hunting statements created in this document are statements about Atos’ beliefs and anticipations and need to be evaluated as this kind of. Ahead-hunting statements incorporate statements that could relate to Atos’ options, objectives, tactics, aims, upcoming gatherings, upcoming revenues or synergies, or general performance, and other details that is not historical details. Genuine gatherings or final results could vary from these explained in this document thanks to a range 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 range D.21-0269. Atos does not undertake, and especially disclaims, any obligation or responsibility to update or amend any of the details previously mentioned except as otherwise demanded by legislation. This document does not contain or constitute 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.

Atos consolidated and statutory economical statements for the calendar year finished December 31, 2020, were accredited by the Board of Directors on February seventeen, 2021.
Subsequent their audit procedures on the consolidated economical statements for the calendar year finished December 31, 2020, the statutory auditors issued on April one, 2021 a competent opinion thanks to a limitation on the scope of the audit as two US legal entities symbolizing 11% of 2020 consolidated revenue that need additional diligences. For the sake of clarity, except for the qualification bundled in the statutory auditors’ report on the consolidated economical statements for the calendar year finished December 31, 2020, the Team consolidated economical statements are audited and the economical statements bundled in the Universal Registration Document are unchanged as opposed to the variation published by the Corporation on February 18, 2021. As of today, the Team has not determined misstatements on the two US entities that are material for the consolidated economical statements.

Income natural and organic progress is presented at continual scope and exchange charges.

Industries incorporate Manufacturing (Aerospace, Automotive, Chemical compounds, Consumer Packaged Products (Food stuff & Beverage), Discrete Manufacturing, Approach Industries, Services and Siemens), Economical Services & Insurance policies (Insurance policies, Banking & Economical Services, and Enterprise Transformation Services), Community Sector & Protection (Protection, Instruction, Extraterritorial Companies, Community Administration, Community Group Services and Significant Activities), Telecom, Media & Know-how (Superior Tech & Engineering, Media, and Telecom), Resources & Services (Strength, Retail, Transportation & Hospitality, and Utilities) and Health care & Life Sciences (Health care and Pharmaceutical).

Regional Enterprise Models incorporate North The united states (Usa, 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 Increasing Markets together with Asia-Pacific (Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand), South The united states (Argentina, Brazil, Chile, Colombia, Uruguay, and Peru), Center East & Africa (Algeria, Benin, Burkina Faso, Egypt, Gabon, Ivory Coastline, Kenya, Kingdom of Saudi Arabia, Madagascar, Mali, Mauritius, Morocco, Qatar, Senegal, South Africa, Tunisia, Turkey and UAE), Significant Activities and World wide Shipping Facilities.