Third quarter of 2021 – Atos
Profits secure at € 2,666 million
at regular forex
Purchase entry at € 2,399 million
Guide to bill ratio at ninety%
Electronic, Cloud, Security & Decarbonization at fifty two% of earnings
Net organic raise of talents by +1,five hundred
Group Transformation plans relocating at velocity
2021 goals verified
Paris, October twenty, 2021 – Atos, a world-wide chief in digital transformation, right now announces the earnings of its 3rd quarter of 2021.
In the 3rd quarter, the Group ongoing to stabilize its earnings at regular forex, just before progressing into good territory. Industry desire put up crisis remained quite dynamic in Cloud application migration and development and the Electronic transformation of business enterprise procedures through automation, robotisation and synthetic intelligence. In all locations, buyers now involve digital solutions with the highest expectations of stability, sustainability and inclusiveness, 3 domains in which Atos brings distinctive technological skills.
The Group ongoing to pursue its deep and vast business enterprise transformation program, choosing a record number of new competencies in a quite scorching talent sector, resulting for the very first time in a internet organic raise of +1,five hundred employees. This will help gasoline our development ambitions. In the exact vein, we reinforced our partnerships with General public Cloud hyperscalers when putting new kinds with superior development Electronic platforms.
Our transformation plans announced in July are relocating at velocity on all fronts. The German restructuring is nicely under way. The program to appear for companions on c. twenty% of the Group earnings is remaining executed with superior discussions on our Unified Communications & Collaboration asset. The acquisition of a new digital bolt-on asset has been signed. Lastly, our LEAP cultural transform software is ramping up.
The Group Administration needs to thank our 107,000 colleagues for their incredible support for and commitment to this transformation journey, which is environment the right foundations for acquiring our mid-term targets.
Q3 2021 earnings by Industry
| Profits | |||
| In € million | Q3 2021 | Q3 2020* | Evolution at regular forex |
| Manufacturing | 518 | 469 | +10.4% |
| Monetary Services & Insurance coverage | 524 | 512 | +2.3% |
| General public Sector & Protection | 553 | 628 | -11.nine% |
| Telecom, Media & Technological know-how | 355 | 363 | -2.% |
| Sources & Services | 383 | 378 | +1.5% |
| Healthcare & Lifestyle Sciences | 333 | 317 | +5.1% |
| Total | 2,666 | 2,666 | .% |
| * At regular forex | |||
Profits in the 3rd quarter of 2021 reached € 2,666 million, secure in contrast to Q3 2020 at regular forex, and lowering by -2.3% organically. The crucial segments to which the Group directs its transformation – Electronic, Cloud, Security and Decarbonization – carried out a strong development when earnings was nonetheless impacted in Vintage Infrastructure.
Manufacturing described a earnings of € 518 million, symbolizing 19% of the Group earnings and expanding by +10.4% in contrast to Q3 2020 at regular forex. This was an acceleration of its restoration immediately after a 2nd quarter now increasing by +1.eight%. Every single geography contributed to this strong development, pushed by a repositioning of the Industry on better price digital initiatives and solutions to meet up with consumer wants. More significantly, the Industry improved business enterprise in application initiatives ran in Automotive and Aerospace, as nicely as digitization of industrial procedures including IoT dependent intelligent manufacturing choices.
Monetary Services & Insurance coverage earnings was € 524 million through the 3rd quarter of 2021, symbolizing twenty% of the Group earnings. Increasing by +2.3% in contrast to Q3 2020 at regular forex, the Industry verified its performance of the very first semester, in particular in the Insurance coverage sector when exercise with Banking establishments was much more contrasted. Business in this Industry ongoing to be led by digital transformation initiatives and a strong desire for cybersecurity skills, both equally coated by the choices of the Group and the synergies with the freshly acquired organizations these kinds of as Eagle Creek, Electronic.Security, and Paladion.
General public Sector & Protection reached € 553 million symbolizing 21% of the Group earnings and lowering 12 months-on-12 months at regular forex by -11.nine% immediately after a +thirteen.% in Q3 2020. This lower came from quantity reduction in huge High Performance Computing (HPC) initiatives shipped final 12 months in most of the geographies and much more significantly in Northern Europe, as nicely as the final quarter of 12 months-on-12 months impact from the huge reduction of scope of the Texas Department of Facts Sources agreement renewed final 12 months.
Telecom, Media & Technological know-how represented thirteen% of the Group earnings and reached € 355 million, lowering by -2.% in contrast to Q3 2020 at regular forex. After a good 2nd quarter, the Industry had a much more demanding 3rd quarter as traits were being combined concerning its unique sectors. Although initiatives in the Media sector grew thanks to an improved quantity in North The united states, the circumstance was much more demanding in High Tech & Engineering as nicely as in Telecom.
Profits generated by Sources & Services in the 3rd quarter of 2021 reached € 383 million symbolizing fourteen% of the complete earnings of the Group. The business managed to recuperate and grew by +1.5% in contrast to Q3 2020 at regular forex immediately after a lower by -2.5% in the 2nd quarter of 2021. The circumstance remained contrasted across its components, with dynamism in Transportation & Hospitality, in particular in North The united s
tates and Southern Europe, when the Retail and Strength & Utilities sectors declined owing to HPC profits not recurring this 12 months in contrast to 2020.
Symbolizing 12% of the Group earnings with € 333 million, Healthcare & Lifestyle Sciences grew by +5.1% in the 3rd quarter of 2021 12 months-on-12 months at regular forex led by Northern Europe, Southern Europe, and Expanding Marketplaces. In individual, the Healthcare sector recorded a quite strong performance in contrast to the 3rd quarter of 2020, which much more than compensated the decline in Pharmaceutical.
Q3 2021 earnings by Regional Business Device
| Profits | |||
| In € million | Q3 2021 | Q3 2020* | Evolution at regular forex |
| North The united states | 617 | 625 | -1.3% |
| Northern Europe | 674 | seven-hundred | -3.eight% |
| Central Europe | 619 | 631 | -1.eight% |
| Southern Europe | 556 | 520 | +seven.% |
| Expanding Marketplaces | 201 | 191 | +4.nine% |
| Total | 2,666 | 2,666 | .% |
| * At regular forex | |||
The vast majority of the Areas benefited from the rebound of the desire for Electronic transformation, Cloud, and Cybersecurity in the sectors that have been impacted the most final 12 months these kinds of as Manufacturing and Hospitality & Transportation. They benefited also from a good momentum in Healthcare & Lifestyle Sciences and Monetary Services & Insurance coverage. Combined with synergies initiated from the new acquisitions, the Group managed to compensate the decline in General public Sector & Protection coming from quantity reduction and some huge HPCs shipped final 12 months in quite a few geographies.
Profits development at regular forex was strong in Southern Europe and in Expanding Marketplaces.
In Southern Europe, the exercise was good in most of the Industries including General public Sector & Protection.
Expanding Marketplaces ongoing on its craze at circa +5% development led by the ramp-up of initiatives in Asia in Healthcare & Lifestyle Sciences as nicely as in Telecom, Media & Technological know-how in Brazil and in Manufacturing through quantity raise and new initiatives.
North The united states managed to make development at regular forex in all Industries apart from General public Sector & Protection impacted by the Texas Department of Facts Sources agreement and by Unified Communications & Collaboration pursuits.
Northern Europe recorded a strong exercise in Manufacturing with Electronic Transformation initiatives as nicely as in Healthcare & Lifestyle Sciences. But this geography faced unfavourable foundation impact on High Performance Computing in General public Sector & Protection.
Lastly, Central Europe appreciably enhanced its earnings craze in contrast to -10.3% in Q2 thanks to Manufacturing ramp-up of initiatives and new contracts.
Commercial exercise
For the duration of the 3rd quarter of 2021, the Group buy entry reached € 2,399 million symbolizing a Guide-to-Monthly bill ratio of ninety%.
The primary new contracts signed more than the period bundled notably:
- in Manufacturing a agreement with a huge European Automotive provider for the migration to S/4 Hana Cloud (Central Europe)
- in Monetary Services & Insurance coverage a agreement with a US world-wide Insurer for a migration to General public Cloud combining Atos, Syntel, and Maven Wave abilities (North The united states)
- in General public Sector & Protection a huge agreement with a General public authority for a Electronic Transformation project (Northern Europe)
- in Telecom, Media & Technological know-how a Electronic Transformation agreement embarking Cloud, Security, and Decarbonization providers with a European High Tech chief (Northern Europe)
- in Sources & Services a agreement with a huge European Utility for distribution community management and manage combining SAP and Atos Strength solutions (Southern Europe) and
- in Healthcare & Lifestyle Sciences a agreement with a huge Healthcare chief for the development of digital resource to boost affected person practical experience (North The united states).
Agreement renewals of the quarter bundled, in Manufacturing a huge European auto company with an extension to support consumer in establishing data-dependent Cloud providers (Southern Europe), in Monetary Services & Insurance coverage a important lender to migrate complex data centre and purposes (Expanding Marketplaces), and a scope extension with a huge retailer Sources & Services (North The united states).
Complete backlog amounted to € 23.4 billion at the end of September 2021, a little down in contrast to June 2021. It represented 2.1 yrs of earnings. Full certified pipeline reached € seven.4 billion secure in contrast to June 2021. It represented seven.nine months of earnings.
Human means
The complete headcount was 106,665 at the end of September 2021, an raise of +1,857, of which for the very first time +1,485 (+1.4%) organically in buy to support the quickly increasing business enterprise segments (Electronic, Cloud, Security and Decarbonization) when the Group ongoing to lower the number of staff in Infrastructure pursuits through automation and robotization.
In the 3rd quarter of 2021, the Group hired eight,019 staff, the vast majority of whom in offshore and nearshore countries. Attrition LTM (Past Twelve Months) reached 16% at the end of September 2021.
2021 goals verified
The Group confirms all its goals for 2021:
- Profits development at regular forex: secure
- Running margin charge: six%
- Totally free cash circulation: good.
Acquisition
The Group right now announces the acquisition of DataSentics, a European business established in 2016 and positioned in Prague. DataSentics specializes in Equipment Mastering and Cloud Details engineering. The business functions on unifying data science and engineering across Europe. It employs ninety data scientists. Its choices will instantly enhance Synthetic Intelligence manufacturing facility tactic of Atos to support 5G and Edge choices and speed up cru
cial business enterprise use circumstances in Manufacturing, Retail, and Telecommunications.
Plan to appear for companions to improve Group belongings
As section of its transformation and to speed up its reprofiling in direction of Electronic, Cloud, Security & Decarbonization, the Group announced on July 27, 2021 the start of a huge software to appear for companions on a quantity of business enterprise symbolizing c. twenty% of its present-day earnings.
On Unified Communications & Collaboration, superior discussions are presently ongoing.
On Details Centre web hosting and connected pursuits, a formal process has been introduced and several indications of desire have been received.
Appendix
Profits at regular scope and trade fees reconciliation
| In € million | Q3 2021 | Q3 2020 | % transform |
| Statutory earnings | 2,666 | 2,644 | +.eight% |
| Exchange fees impact | 22 | ||
| Profits at regular trade fees | 2,666 | 2,666 | .% |
| Scope impact | 63 | ||
| Exchange fees impact on acquired/disposed perimeters | 1 | ||
| Profits at regular scope and trade fees | 2,666 | 2,729 | -2.3% |
Scope consequences amounted to €+63 million for earnings. They are mainly related to:
- the acquisitions shut in H2 2020 and in 2021 for €+68 million and
- the disposal of some specific Unified Communications & Collaboration pursuits and Wivertis GmBH in 2020, amounting for a complete of €-5 million.
Forex trade charge consequences positively contributed to earnings for €+22 million. They typically came from the appreciation of the British Pound versus the Euro more than the period.
Conference phone
Tomorrow, Thursday, October 21, 2021, the Group will maintain a meeting phone in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in buy to comment on Atos’ Q3 2021 earnings and reply inquiries from the financial community.
You can be part of the webcast of the meeting:
- by means of the adhering to link: https://edge.media-server.com/mmc/p/9dtvfypf
- by phone with the dial-in, 10 minutes prior the starting time. Please observe that if you want to be part of the webcast by phone, you will have to sign up in progress of the meeting utilizing the adhering to link:
http://emea.directeventreg.com/registration/5061859
Upon registration, you will be provided with Participant Dial In Quantities, a Direct Event Passcode and a distinctive Registrant ID. Get in touch with reminders will also be despatched by means of email the working day prior to the party.
For the duration of the 10 minutes prior to the beginning of the phone, you will will need to use the meeting access information and facts provided in the email received upon registration.
After the meeting, a replay of the webcast will be accessible on atos.internet, in the Buyers area.
Forthcoming activities
February 28, 2022 (After Industry Close) Complete Year 2021 success
April 27, 2022 (Just before Industry Opening) Initially Quarter 2022 earnings
Might 18, 2022 Yearly General Meeting
July 27, 2022 (Just before Industry Opening) Initially semester 2022 success
Contacts
Investor Relations: Gilles Arditti – +33 six 11 69 eighty one seventy four – [email protected]
Media: Anette Rey – +33 six 69 79 84 88 – [email protected]
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About Atos
Atos is a world-wide chief in digital transformation with 107,000 employees and once-a-year earnings of more than € 11 billion. European number one particular in cybersecurity, cloud and superior performance computing, the Group offers tailor-made end-to-end solutions for all industries in seventy one countries. A pioneer in decarbonization providers and solutions, Atos is fully commited to a secure and decarbonized digital for its clients. Atos is an SE (Societas Europaea), outlined on Euronext Paris and bundled in the CAC forty ESG and Future twenty indexes.
The objective of Atos is to help layout the long run of the information and facts place. Its skills and providers support the development of know-how, instruction and investigation in a multicultural solution and lead to the development of scientific and technological excellence. Across the earth, the Group permits its buyers and employees, and members of societies at huge to dwell, perform and create sustainably, in a safe and secure information and facts place.
Disclaimers
This document is made up of ahead-on the lookout statements that require risks and uncertainties, including references, regarding the Group’s anticipated development and profitability in the long run which might appreciably influence the anticipated performance indicated in the ahead-on the lookout statements. These risks and uncertainties are linked to factors out of the manage of the Firm and not precisely approximated, these kinds of as sector conditions or competitor’s behaviors. Any ahead-on the lookout statements produced in this document are statements about Atos’ beliefs and anticipations and should really be evaluated as these kinds of. Forward-on the lookout statements include things like statements that might relate to Atos’ designs, goals, techniques, objectives, long run activities, long run revenues or synergies, or performance, and other information and facts that is not historic information and facts. Real activities or success might vary from those described in this document owing to a number of risks and uncertainties that are described in the 2020 Common Registration Doc filed with the Autorité des Marchés Financiers (AMF) on April seven, 2021 under the registration number D.21-0269 and the Amendment to the 2020 Common Registration Files filed with the AMF on July thirty, 2021 under number D.21-0269-A01. Atos does not undertake, and exclusively disclaims, any obligation or accountability to update or amend any of the information and facts earlier mentioned apart from as usually expected by legislation. This document does not incorporate or represent an offer you of Atos’ shares for sale or an invitation or inducement to invest in Atos’ shares in France, the United States of The united states or any other jurisdiction.
Profits organic development is offered at regular scope and trade fees.
Industries include things like Manufacturing (Aerospace, Automotive, Substances, Consumer Packaged Goods (Food & Beverage), Discrete Manufacturing, Process Industries, Services and Siemens), Monetary Services & Insurance coverage (Insurance coverage, Banking & Monetary Services
, and Business Transformation Services), General public Sector & Protection (Protection, Schooling, Extraterritorial Companies, General public Administration, General public Community Services and Important Activities), Telecom, Media & Technological know-how (High Tech & Engineering, Media, and Telecom), Sources & Services (Strength, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Lifestyle Sciences (Healthcare and Pharmaceutical).
Regional Business Models include things like North The united states (Usa, 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 Expanding Marketplaces including 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), Important Activities and World wide Supply Centers.
