2021: A year of transition for Atos

Adjustment of Once-a-year Goals

Affirmation of Mid-time period Targets

Paris, July 12, 2021

Referring to EU regulation No. 596/2014, which gives that issuers shall advise the general public as before long as attainable of inside of data right suitable to them, Atos announces the adjustment of its 2021 once-a-year objectives. The very first semester figures are not finalized nor audited, the specific very first semester accounts will be revealed as prepared on July 28, 2021.

Through the second quarter, profits development at regular forex came again to balance. Even so, natural development remained damaging at c. -1.five{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} owing to an accelerated decline of legacy infrastructure small business in a context of a much more powerful demand for write-up-COVID cloud migration. The Team anticipates that this small business change will persist throughout the second semester. The other Team organizations benefitted from the financial recovery driving a booming digital demand. In this context, the Team adjusts its aim of profits development at regular forex for the comprehensive calendar year to secure.

Even though for this calendar year the Team had predicted a greater seasonality among the very first and second semester, working margin was reduced than anticipated in the very first semester at c. five.five{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105}. Contemplating the profits adjustment above the comprehensive calendar year, impacting legacy actions with a low brief time period price tag versatility, the Team adjusts its working margin aim to c. six.{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} for the comprehensive calendar year. As a consequence of this unprecedented impression on the small business, various outstanding items (publish-off of property, reduction provisions) have been booked less than “Other Working Cash flow and Expenses”. This line amounted to a complete of c. €-one hundred sixty million in the very first semester.

Through the very first semester, cost-free hard cash flow amounted to c. €-364 million compared to €-172 million throughout 2020 very first semester. No cost hard cash flow was generally impacted by functioning cash and in certain by a reduction in hard cash in progress from clients. Shifting forward, the Team decides to cut down hard cash in progress from clients. The altered aim for 2021 is a beneficial cost-free hard cash flow, to reflect the impacts from the working margin aim reduction, and functioning cash, much more specially on customer progress payments. The new aim also assumes the complete 1-off € 180 million hard cash outflow in 2021 for the German turnaround system (see beneath).

Transformation agenda and mid-time period targets

In this context, the Team has resolved to speed up its transformation -both organically and inorganically- by increasing its achievements in, and focusing on, Digital, Cloud, Security, and Decarbonization.

In certain, the strategic portfolio assessment of non-main property is staying finalized and the Team will communicate on its conclusions on July 28, 2021, so as to go to execution quickly.

Negotiations with social partners with regards to the necessary turnaround of the German infrastructure small business have concluded to a restructuring system of c. 1,three hundred individuals, delivering an added 1{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} working margin at Team amount mid-time period. The system will be specific on July 28, 2021.

Following a calendar year of changeover in 2021, the Team expects to enhance on all its KPIs in 2022 and maintains its mid time period targets of profits development at regular forex from +five{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} to +7{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105}, working margin fee from 11{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} to 12{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} and cost-free hard cash flow conversion above 60{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105}.

North The us Audit Stick to up

Pertaining to the audit of the US authorized entities, the Team resolved in April this calendar year to accomplish a comprehensive accounting assessment of those people entities as of December 31, 2020, supported by external advisors.

This operate is staying finalized and at this phase misstatements recognized are not substance. The auditors’ operate is also ongoing as element of their 50 {d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} calendar year assessment.

The completion of this course of action is qualified to be reached at the time of H1 launch on July 28, 2021.

Apart from, the remediation and avoidance system has been finalized and is staying rolled out.

Appendix

The Administration of Atos invitations you to an worldwide convention get in touch with, on Monday, July 12, 2021 at 08:00 am (CET – Paris).

You can join the webcast of the convention:

• by using the subsequent connection: https://edge.media-server.com/mmc/p/cvgjqzz9
• by telephone with the dial-in, ten minutes prior the starting time. Remember to be aware that if you want to join the webcast by telephone, you ought to sign up in progress of the convention employing the subsequent connection: http://emea.directeventreg.com/registration/9249267
  On registration, you will be furnished with Participant Dial In Figures, a Direct Occasion Passcode and a exclusive Registrant ID. Through the ten minutes prior to the commencing of the get in touch with, you will need to have to use the convention obtain data furnished in the e-mail gained on registration.

Following the convention, a replay of the webcast will be out there on atos.net, in the Buyers portion.

The push launch will be issued on Monday, July 12, 2021 at 07:30 am (CET – Paris).

Forthcoming occasions

July 28, 2021               Very first semester 2021 results

Oct 21, 2021         Third quarter 2021 profits

Down load the push launch in pdf 

Contacts

Investor Relations:

Gilles Arditti – +33 six 11 69 81 74 –  [email protected]

Media:

Anette Rey –  +33 six 69 79 84 88 – [email protected]

About Atos

Atos is a global leader in digital transformation with 105,000 staff and once-a-year profits of above € 11 billion. European quantity 1 in cybersecurity, cloud and significant general performance computing, the Team gives tailor-made conclude-to-conclude methods for all industries in 71 nations. A pioneer in decarbonization providers and products, Atos is committed to a secure and decarbonized digital for its clientele. Atos operates less than the makes Atos and Atos|Syntel. Atos is a SE (Societas Europaea), shown on the CAC40 Paris stock index.

The purpose of Atos is to support layout the future of the data house. Its abilities and providers assistance the development of expertise, training and study in a multicultural tactic and lead to the development of scientific and technological excellence. Across the entire world, the Team allows its clients and staff, and users of societies at massive to live, operate and produce sustainably, in a protected and secure data house.

Disclaimers

This doc includes forward-searching statements that contain pitfalls and uncertainties, including references, concerning the Group’s anticipated development and profitability in the future which might drastically impression the anticipated general performance indicated in the forward-searching statements. These pitfalls and uncertainties are linked to factors out of the control of the Enterprise and not specifically estimated, this sort of as industry circumstances or competition behaviors. Any forward-searching statements designed in this doc are statements about Atos’ beliefs and expectations and need to be evaluated as this sort of. Ahead-searching statements involve statements that might relate to Atos’ plans, objectives, strategies, objectives, future occasions, future revenues or synergies, or general performance, and other data that is not historic data. Actual occasions or results might differ from those people explained in this doc owing to a quantity of pitfalls and uncertainties that are explained in the 2020 Universal Registration Doc filed with the Autorité des Marchés Financiers (AMF) on April 7, 2021 less than the registration quantity D.21-0269. Atos does not undertake, and specially disclaims, any obligation or responsibility to update or amend any of the data above apart from as normally expected by regulation. This doc does not incorporate or represent an offer you 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.

Atos consolidated and statutory fiscal statements for the calendar year finished December 31, 2020, were being authorised by the Board of Administrators on February 17, 2021. Pursuing their audit treatments on the consolidated fiscal statements for the calendar year finished December 31, 2020, the statutory auditors issued on April 1, 2021 a skilled opinion owing to a limitation on the scope of the audit as two US authorized entities representing 11{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} of 2020 consolidated profits that call for added diligences. For the sake of clarity, apart from for the qualification bundled in the statutory auditors’ report on the consolidated fiscal statements for the calendar year finished December 31, 2020, the Team consolidated fiscal statements are audited and the fiscal statements bundled in the Universal Registration Doc are unchanged compared to the version revealed by the Enterprise on February 18, 2021. As of now, the Team has not recognized misstatements on the two US entities that are substance for the consolidated fiscal statements.

Profits natural development is presented at regular scope and exchange rates.

Industries involve Manufacturing (Aerospace, Automotive, Chemical compounds, Customer Packaged Products (Meals & Beverage), Discrete Manufacturing, Process Industries, Companies and Siemens), Money Companies & Insurance policies (Insurance policies, Banking & Money Companies, and Small business Transformation Companies), Public Sector & Protection (Protection, Schooling, Extraterritorial Businesses, Public Administration, Public Local community Companies and Main Occasions), Telecom, Media & Technological know-how (Superior Tech & Engineering, Media, and Telecom), Methods & Companies (Vitality, Retail, Transportation & Hospitality, and Utilities) and Health care & Existence Sciences (Health care and Pharmaceutical).

Regional Small business Units involve North The us (United states of america, 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 Rising Marketplaces including 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), 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), Main Occasions and Global Supply Centers.