2021: A year of transition for Atos

Adjustment of Annual Targets Affirmation of Mid-phrase Targets   Paris, July 12, 2021 Referring to

Adjustment of Annual Targets
Affirmation of Mid-phrase Targets

 

Paris, July 12, 2021

Referring to EU regulation No. 596/2014, which provides that issuers shall notify the community as before long as attainable of inside of info directly relevant to them, Atos announces the adjustment of its 2021 yearly objectives. The 1st semester figures are not finalized nor audited, the in depth 1st semester accounts will be revealed as prepared on July 28, 2021.

Throughout the 2nd quarter, earnings expansion at continuous currency came back to stability. Having said that, natural expansion remained adverse at c. -one.five% because of to an accelerated decrease of legacy infrastructure business enterprise in a context of a a lot more robust demand from customers for submit-COVID cloud migration. The Team anticipates that this business enterprise shift will persist during the 2nd semester. The other Team enterprises benefitted from the economic recovery driving a booming electronic demand from customers. In this context, the Team adjusts its objective of earnings expansion at continuous currency for the full 12 months to secure.

Despite the fact that for this 12 months the Team had expected a higher seasonality among the 1st and 2nd semester, operating margin was decrease than expected in the 1st semester at c. five.five%. Considering the earnings adjustment above the full 12 months, impacting legacy things to do with a minimal short phrase value overall flexibility, the Team adjusts its operating margin objective to c. six.% for the full 12 months. As a consequence of this unprecedented effects on the business enterprise, numerous excellent products (generate-off of property, decline provisions) have been booked less than “Other Functioning Revenue and Expenses”. This line amounted to a full of c. €-a hundred and sixty million in the 1st semester.

Throughout the 1st semester, cost-free hard cash circulation amounted to c. €-364 million in contrast to €-172 million during 2020 1st semester. Cost-free hard cash circulation was predominantly impacted by performing money and in distinct by a reduction in hard cash in advance from shoppers. Transferring ahead, the Team decides to cut down hard cash in advance from shoppers. The adjusted objective for 2021 is a good cost-free hard cash circulation, to reflect the impacts from the operating margin objective reduction, and performing money, far more specially on client advance payments. The new objective also assumes the full just one-off € one hundred eighty million hard cash outflow in 2021 for the German turnaround prepare (see below).

Transformation agenda and mid-phrase targets

In this context, the Team has decided to speed up its transformation -both equally organically and inorganically- by expanding its achievements in, and focusing on, Digital, Cloud, Protection, and Decarbonization.

In distinct, the strategic portfolio review of non-core property is staying finalized and the Team will converse on its conclusions on July 28, 2021, so as to shift to execution swiftly.

Negotiations with social associates pertaining to the needed turnaround of the German infrastructure business enterprise have concluded to a restructuring prepare of c. one,300 folks, furnishing an extra one% operating margin at Team level mid-phrase. The prepare will be in depth on July 28, 2021.

Soon after a 12 months of changeover in 2021, the Team expects to strengthen on all its KPIs in 2022 and maintains its mid phrase targets of earnings expansion at continuous currency from +five% to +7%, operating margin price from eleven% to 12% and cost-free hard cash circulation conversion higher than 60%.

North The us Audit Observe up

With regards to the audit of the US lawful entities, the Team decided in April this 12 months to accomplish a full accounting review of those entities as of December 31, 2020, supported by external advisors.

This perform is staying finalized and at this stage misstatements determined are not product. The auditors’ perform is also ongoing as component of their 50 % 12 months review.

The completion of this approach is focused to be attained at the time of H1 launch on July 28, 2021.

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

Appendix

 

Altered Targets

(July 12, 2021)

Preliminary Targets

(February eighteen, 2021)

Profits expansion at continuous currency Steady +three.five% to +4.%
% Functioning Margin to earnings c. six.% nine.4% to nine.eight%
Cost-free Funds Circulation Positive €550 to €600 million

 

The Administration of Atos invitations you to an intercontinental conference phone, on Monday, July 12, 2021 at 08:00 am (CET – Paris).

You can sign up for the webcast of the conference:

  • by using the next link: https://edge.media-server.com/mmc/p/cvgjqzz9
  • by telephone with the dial-in, ten minutes prior the starting off time. Please notice that if you want to sign up for the webcast by telephone, you will have to sign-up in advance of the conference using the next link: http://emea.directeventreg.com/registration/9249267
    Upon registration, you will be provided with Participant Dial In Figures, a Immediate Party Passcode and a one of a kind Registrant ID. Throughout the ten minutes prior to the beginning of the phone, you will want to use the conference access info provided in the e mail been given upon registration.

Soon after the conference, a replay of the webcast will be accessible on atos.net, in the Traders segment.

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

 

Forthcoming events

July 28, 2021               To start with semester 2021 success

Oct 21, 2021         Third quarter 2021 earnings

Down load the press launch in pdf 

Contacts

Trader Relations:

Gilles Arditti – +33 six eleven sixty nine 81 74 –  [email protected]

Media:

Anette Rey –  +33 six sixty nine seventy nine 84 88 – [email protected]

About Atos

Atos is a global chief in electronic transformation with a hundred and five,000 staff and yearly earnings of above € eleven billion. European quantity just one in cybersecurity, cloud and superior performance computing, the Team provides customized conclusion-to-conclusion answers for all industries in 71 international locations. A pioneer in decarbonization companies and solutions, Atos is committed to a secure and decarbonized electronic for its shoppers. Atos operates less than the models Atos and Atos|Syntel. Atos is a SE (Societas Europaea), outlined on the CAC40 Paris inventory index.

The objective of Atos is to aid layout the long term of the info house. Its skills and companies help the improvement of understanding, schooling and study in a multicultural solution and add to the improvement of scientific and technological excellence. Across the world, the Team enables its shoppers and staff, and users of societies at significant to reside, perform and acquire sustainably, in a protected and secure info house.

Disclaimers

This document consists of ahead-hunting statements that require dangers and uncertainties, such as references, concerning the Group’s expected expansion and profitability in the long term which may perhaps considerably effects the expected performance indicated in the ahead-hunting statements. These dangers and uncertainties are connected to variables out of the regulate of the Organization and not precisely estimated, this sort of as marketplace conditions or opponents behaviors. Any ahead-hunting statements built in this document are statements about Atos’ beliefs and expectations and should really be evaluated as this sort of. Forward-hunting statements involve statements that may perhaps relate to Atos’ strategies, objectives, tactics, goals, long term events, long term revenues or synergies, or performance, and other info that is not historic info. True events or success may perhaps differ from those explained in this document because of to a quantity of dangers and uncertainties that are explained in the 2020 Common Registration Document 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 obligation to update or amend any of the info higher than apart from as if not demanded by legislation. This document does not consist of or constitute 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 financial statements for the 12 months ended December 31, 2020, ended up authorized by the Board of Administrators on February seventeen, 2021. Pursuing their audit strategies on the consolidated financial statements for the 12 months ended December 31, 2020, the statutory auditors issued on April one, 2021 a qualified impression because of to a limitation on the scope of the audit as two US lawful entities symbolizing eleven% of 2020 consolidated earnings that involve extra diligences. For the sake of clarity, apart from for the qualification bundled in the statutory auditors’ report on the consolidated financial statements for the 12 months ended December 31, 2020, the Team consolidated financial statements are audited and the financial statements bundled in the Common Registration Document are unchanged in contrast to the model revealed by the Organization on February eighteen, 2021. As of right now, the Team has not determined misstatements on the two US entities that are product for the consolidated financial statements.

Profits natural expansion is introduced at continuous scope and trade premiums.

Industries involve Manufacturing (Aerospace, Automotive, Substances, Buyer Packaged Items (Meals & Beverage), Discrete Manufacturing, Method Industries, Expert services and Siemens), Monetary Expert services & Insurance policy (Insurance policy, Banking & Monetary Expert services, and Organization Transformation Expert services), Public Sector & Protection (Protection, Education and learning, Extraterritorial Corporations, Public Administration, Public Local community Expert services and Main Gatherings), Telecom, Media & Technological innovation (Superior Tech & Engineering, Media, and Telecom), Assets & Expert services (Vitality, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Lifestyle Sciences (Healthcare and Pharmaceutical).

Regional Organization Units involve North The us (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 Growing Marketplaces such as 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 Coast, Kenya, Kingdom of Saudi Arabia, Madagascar, Mali, Mauritius, Morocco, Qatar, Senegal, South Africa, Tunisia, Turkey and UAE), Main Gatherings and World-wide Delivery Centers.