First quarter of 2021

Purchase entry at € 2,596 million Book to invoice ratio at ninety six% Income at

Purchase entry at € 2,596 million

Book to invoice ratio at ninety six%

Income at € 2,692 million

-1.nine% at constant currency

-3.nine% organic and natural evolution

Digital, Cloud, Security & Decarbonization at fifty one% of profits (46% in 2020)

 Continued robust expansion in Cybersecurity and Large Facts

 3 bolt-on acquisitions accelerating Group transformation

 2021 goals verified

 

Paris, April 20, 2021

Atos, a world-wide leader in electronic transformation, right now announces the profits of its very first quarter of 2021.

Elie Girard, Atos CEO, said: “After a history yr in 2020, professional dynamism remained strong in the very first quarter of the yr with a e-book-to-invoice ratio of ninety six%, and a pipeline of offerings +14% above a yr in the past. Whilst the Group’s profits diminished for the previous quarter thanks to the effect of Covid, down -1.nine% at constant currency in comparison to the preceding yr, our small business profile has built progress toward Digital, Cloud, Security, and Decarbonization with now fifty one% of Group profits sent in those people strategic segments.

This small business repositioning is the final result of, very first, our Spring transformation, and second, our program of bolt-on acquisitions. In that vein, I am delighted to announce right now 3 new acquisitions in the fields of Digital Manufacturing and Solution Lifecycle Management (PLM), Cryptography and Cybersecurity, and Edge and Computer Vision. In purchase to speed up the modify of our small business combine, the Group will activate a third dimension and initiate a strategic portfolio assessment of non-main property.

 We validate the goals for the total yr 2021 issued on February eighteen. On top of that, the Group has determined to interact into essential actions of interior transformation, aiming at enriching the company’s electronic competencies and human cash, reinforcing accountability, as very well as applying cultural alterations in total regularity with our “raison d’être”.

 I am grateful to all my Atos colleagues for embarking on this transformation journey with so substantially energy and enthusiasm.”

 

2021 Objectives

 The Group confirms right now its goals for its 3 essential economic requirements, as mentioned on February eighteen, 2021:

  • Income expansion at constant currency: +3.5% to +4.%
  • Operating margin level: +40 to 80bps compared to 2020
  • No cost dollars stream: €550m to €600m

 

Q1 2021 profits by Industry

 

In € million Q1 2021 Q1 2020* Evolution at constant currency
Manufacturing           488           522 -6.7%
Financial Services & Insurance policy           544           506 +7.4%
General public Sector & Defense           579           599 -3.2%
Telecom, Media & Technology           373           393 -5.%
Resources & Services           395           421 -6.2%
Healthcare & Lifetime Sciences           313           303 +3.4%
Complete       2,692         2,744   -1.nine%
* At constant currency

 

Income in the very first quarter of 2021 arrived at € 2,692 million, -1.nine% in comparison to Q1 2020 at constant currency, -3.nine% organically.

Covid-19 was however impacting Atos small business more than the quarter in spite of superior resilience in Financial Services & Insurance policy and in Healthcare & Lifetime Sciences, as very well as in Northern Europe, in Increasing Marketplaces and in Southern Europe which is demonstrating an encouraging recovery.

With eighteen% of the Group profits, Manufacturing claimed a profits of € 488 million, symbolizing a minimize by -6.7% in comparison to Q1 2020 at constant currency. The greatest and major demanding problem was the reduction of volumes in Germany, while the problem tended to stabilize in comparison to previous quarters in other geographies.

Financial Services & Insurance policy profits was € 544 million, symbolizing 20% of the Group profits. The Industry grew by +7.4% at constant currency in comparison to Q1 2020. The exercise improved in most of the geographies and was predominantly driven by small business transformation tasks in Northern Europe and new electronic banking tasks in Increasing Marketplaces.

General public Sector & Defense profits was € 579 million symbolizing 22% of the Group profits, down -3.2% at constant currency. The minimize was primarly thanks to sizeable Large Facts venture delays to subsequent quarters as very well as quantity reduction in North The united states.

Telecom, Media & Technology represented 14% of the Group profits and arrived at € 373 million, a decrease of -5.% at constant currency in comparison to Q1 2020, with a contrasted effectiveness by geography. Whilst a huge throughout the world contract with a world-wide engineering firm started out to produce a favourable contribution to the Industry, effectiveness was impacted by the base effects of some huge deals done in 2020 and not recurring in 2021.

Income generated by Resources & Services in the very first quarter of 2021 arrived at € 395 million symbolizing fifteen% of the Group profits. The Industry diminished by -6.2% at constant currency in comparison to Q1 2020 with extremely distinctive developments across its parts. Whilst a robust effectiveness was claimed with Utilities prospects, the Industry remained impacted by the demanding problem with prospects working in Transportation and Hospitality where the need continues to be impacted by Covid-19.

Healthcare & Lifetime Sciences profits was € 313 million, up by +3.4% in comparison to Q1 2020 at constant currency and symbolizing 12% of the Group profits. The Industry 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 huge tasks sent in Q1 2020.

 

Q1 2021 profits by Regional Small business Unit

 

In € million Q1 2021 Q1 2020* Evolution at constant currency
North The united states      564      622 -nine.4%
Northern Europe      730      688 +6.2%
Central Europe      609      666 -8.5%
Southern Europe      607      596 +1.nine%
Increasing Marketplaces      181      172 +5.1%
Complete              2,692                2,744    -1.nine%
* At constant currency

 

Income in North The united states arrived at € 564 million, decreasing by -nine.4% at constant currency. The evolution was impacted by the timing of Covid previous yr hitting North The united states later than Europe, quantity reduction in General public Sector and one particular time profits in Q1 2020, which could not be recurring. In addition some tasks had been postponed from Q1 2021 to subsequent quarters. This could not be compensated by the beginning of the ramp-up of new contracts in the Cloud and Digital transformation as very well as Cybersecurity areas.

Income in Northern Europe was € 730 million, raising by +6.2% at constant currency. Strong small business expansion was recorded in Telecom, Media & Technology as very well as in Financial Services & Insurance policy and Healthcare & Lifetime Sciences. At the exact same time challenges had been faced by General public Sector & Defense as very well as Resources & Services. Manufacturing remained secure in comparison to previous yr.

Central Europe claimed € 609 million of profits, down -8.5% at constant currency. This predominantly resulted from a however demanding problem in the Unified Communications & Collaboration and also in Manufacturing. Many thanks to the ramp-up of numerous new contracts, Healthcare & Lifetime Sciences, Resources & Services and General public Sector & Defense recorded expansion, Financial Services & Insurance policy remained pretty much flat in spite of some new tasks with huge German banking establishments.

Income in Southern Europe arrived at € 607 million, raising by +1.nine% in comparison to Q1 2020 at constant currency. The expansion of the small business was predominantly led by the superior effectiveness of General public Sector & Defense. Expansion was also recorded in Financial Services & Insurance policy, Resources & Services and Healthcare & Lifetime Sciences. The problem remained demanding in Telecom, Media & Technology and to a lesser extent in Manufacturing.

Income arrived at € 181 million in Increasing Marketplaces, up +5.1% at constant currency. In most of the Industries the exercise was much better with new tasks sent far more specially in Financial Services & Insurance policy.

 

Commercial exercise

For the duration of the very first quarter of 2021, the Group purchase entry arrived at € 2,596 million symbolizing a Book-to-Monthly bill ratio of ninety six%, in comparison to a hundred and one% (at constant currency) accomplished more than the exact same time period previous yr.

The major new contracts signed more than the time period had been notably in Northern Europe with a huge Chemical buyer (Manufacturing) and a European telco leader (Telecom, Media & Technology), in Southern Europe with Pierre Fabre and a European leader in Prescription drugs (Healthcare & Lifetime Sciences), a leading multi-countrywide automotive manufacturer (Manufacturing) and numerous contracts with Transportation prospects (Resources & Services), and in Central Europe with a huge European financial institution (Financial Services & Insurance policy) and Bundesagentur für Arbeit (General public Sector & Defense).

Contract renewals of the quarter included notably a leading manufacturer in optical instruments and a huge beverage firm in Central Europe (Manufacturing), numerous General public Sector contracts in Southern Europe, and a Telecommunications firm in Increasing marketplaces.

In line with this dynamic professional exercise, the total backlog amounted to € 23.2 billion at the conclude of March 2021, +8% in comparison to March 2020 at constant currency. It represented 2.1 many years of profits. The total skilled pipeline arrived at € 8.4 billion, +14% in comparison to March 2020 at constant currency. It represented nine months of profits.

 

Human methods

The complete headcount was 104,485 at the conclude of March 2021, secure in comparison to 104,430 at the conclude of December 2020.

In the very first quarter of 2021, the Group hired 4,215 staff, the greater part of whom in offshore and nearshore nations around the world.

 

Acquisitions

In line with its mid-phrase approach, the Group announces right now the signature of 3 bolt-on acquisitions. All of them belong to the strategic parts outlined by the Group to speed up its small business combine modify:

  • Digital, as a result of the acquisition of Processia, a specialist of Solution Lifecycle Management (PLM)
  • Security, as a result of the acquisition of cryptovision, specialised in Cryptography alternatives and products and solutions
  • Large Facts and Analytics, as a result of the acquisition of Ipsotek, a leader in Edge and Computer Vision alternatives.

 

North The united states Audit Observe-up

The Organization built a statement on April 1, 2021 regarding numerous issues similar to two US legal entities. As a reminder, the statutory auditors determined, as component of their 2020 audit, interior command weaknesses more than the economic reporting system and profits recognition in accordance with IFRS fifteen leading to numerous accounting errors, as very well as opportunity risk of override of controls in this respect.

The two US legal entities represent 11% of 2020 Group profits, they are not similar to Syntel.

Despite the supplemental audit procedures carried out by the statutory auditors in those people situations, they had been not in a position to perform within just the timeframe the needed function to get sufficient suitable audit evidence in respect of profits recognition or other similar account balances of these two US entities and on the absence of material misstatements for the consolidated economic statements. As a final result, the statutory auditors issued a skilled feeling thanks to a limitation of scope on the consolidated economic statements for the yr 2020.

As of right now the Group has not determined material misstatements for the 2020 consolidated economic statements. However, the conjunction of numerous accounting errors and interior command weaknesses warrants a significant concentration and follow-up by the Group. As a result, the Organization has determined to conduct a total accounting assessment of the two US legal entities and will give a status update at the time of H1 benefits.

A robust remediation and avoidance approach has been developed below the leadership of the Group Normal Secretary and is becoming applied. It handles parts this sort of as preventive controls, tips and documentation, Human Resources assessment, skilling and organization as very well as awareness and training. Complementary examination is ongoing to be certain that the approach is exhaustive.

 

Appendix

Income at constant scope and trade prices reconciliation

In € million Q1 2021 Q1 2020 % modify
Statutory profits 2,692 2,834 -5.%
Trade prices influence -90  
 
Income at constant trade prices 2,692 2,744 -1.nine%
 
Scope influence sixty  
Trade prices influence on acquired/disposed perimeters -3  
Income at constant scope and trade prices 2,692 2,801 -3.nine%

 

Scope effects amounted to €+57 million for profits. They are predominantly similar to:

  • the acquisitions closed in 2020 and Q1 2021 for €+sixty seven million
  • the disposal of some precise Unified Communication & Collaboration activities and Wivertis GmBH in 2020, amounting to a complete of €-ten million.

Forex trade prices effects negatively contributed to profits for €-90 million. They generally arrived from the depreciation of the American dollar, the Pound sterling and the Brazilian real versus the Euro more than the time period.

 

Conference simply call

Today, Tuesday, April 20, 2021, the Group 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 profits and respond to thoughts from the economic group.

You can be part of the webcast of the meeting:

  • on internet, in the Buyers segment
  • by telephone with the dial-in, ten minutes prior the setting up time. Make sure you observe that if you want to be part of the webcast by telephone, you will have to sign up in progress of the meeting making use of the adhering to link:

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

On registration, you will be presented with Participant Dial In Numbers, a Direct Celebration Passcode and a distinctive Registrant ID. Phone reminders will also be despatched through electronic mail the working day prior to the event.

For the duration of the ten minutes prior to the beginning of the simply call, you will need to use the meeting access details presented in the electronic mail gained on registration.

After the meeting, a replay of the webcast will be out there on atos.internet, in the Buyers segment.

 

Forthcoming occasions

May 12, 2021               Yearly Normal Meeting

July 28, 2021               1st semester 2021 benefits

Oct 21, 2021         3rd quarter 2021 profits

Down load the press launch in pdf

Contacts

Trader Relations:               Gilles Arditti                 +33 6 11 69 eighty one 74        [email protected]

Media:                                    Anette Rey                  +33 6 69 seventy nine 84 88        [email protected]

 

About Atos

Atos is a world-wide leader in electronic transformation with 105,000 workforce and annual profits of more than € 11 billion. European variety one particular in cybersecurity, cloud and substantial effectiveness computing, the Group supplies tailored conclude-to-conclude alternatives for all industries in 71 nations around the world. A pioneer in decarbonization products and services and products and solutions, Atos is committed to a secure and decarbonized electronic for its clients. Atos operates below the makes Atos and Atos|Syntel. Atos is a SE (Societas Europaea), detailed on the CAC40 Paris inventory index.

The objective of Atos is to help layout the foreseeable future of the details house. Its expertise and products and services support the progress of knowledge, training and study in a multicultural approach and contribute to the progress of scientific and technological excellence. Across the globe, the Group permits its prospects and workforce, and associates of societies at huge to are living, function and establish sustainably, in a safe and secure details house.

Disclaimers

This doc contains forward-seeking statements that involve challenges and uncertainties, such as references, concerning the Group’s anticipated expansion and profitability in the foreseeable future which may perhaps significantly effect the anticipated effectiveness indicated in the forward-seeking statements. These challenges and uncertainties are connected to components out of the command of the Organization and not exactly approximated, this sort of as marketplace circumstances or competitors behaviors. Any forward-seeking statements built in this doc are statements about Atos’ beliefs and anticipations and must be evaluated as this sort of. Ahead-seeking statements involve statements that may perhaps relate to Atos’ strategies, goals, procedures, targets, foreseeable future occasions, foreseeable future revenues or synergies, or effectiveness, and other details that is not historic details. Precise occasions or benefits may perhaps vary from those people described in this doc thanks to a variety of challenges and uncertainties that are described in the 2020 Common Registration Doc filed with the Autorité des Marchés Financiers (AMF) on April 7, 2021 below the registration variety D.21-0269. Atos does not undertake, and specifically disclaims, any obligation or responsibility to update or amend any of the details above other than as normally essential by regulation. This doc does not comprise or represent an supply of Atos’ shares for sale or an invitation or inducement to devote in Atos’ shares in France, the United States of The united states or any other jurisdiction.

Atos consolidated and statutory economic statements for the yr ended December 31, 2020, had been authorized by the Board of Administrators on February 17, 2021. Following their audit procedures on the consolidated economic statements for the yr ended December 31, 2020, the statutory auditors issued on April 1, 2021 a skilled feeling thanks to a limitation on the scope of the audit as two US legal entities symbolizing 11% of 2020 consolidated profits that require supplemental diligences. For the sake of clarity, other than for the qualification included in the statutory auditors’ report on the consolidated economic statements for the yr ended December 31, 2020, the Group consolidated economic statements are audited and the economic statements included in the Common Registration Doc are unchanged in comparison to the variation published by the Organization on February eighteen, 2021. As of right now, the Group has not determined misstatements on the two US entities that are material for the consolidated economic statements.

Income organic and natural expansion is introduced at constant scope and trade prices.

Industries involve Manufacturing (Aerospace, Automotive, Chemicals, Client Packaged Goods (Foodstuff & Beverage), Discrete Manufacturing, Procedure Industries, Services and Siemens), Financial Services & Insurance policy (Insurance policy, Banking & Financial Services, and Small business Transformation Services), General public Sector & Defense (Defense, Instruction, Extraterritorial Businesses, General public Administration, General public Local community Services and Significant Activities), Telecom, Media & Technology (Superior Tech & Engineering, Media, and Telecom), Resources & Services (Electrical power, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Lifetime Sciences (Healthcare and Pharmaceutical).

Regional Small business Units involve North The united states (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 Increasing Marketplaces such as 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), Middle 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.

 

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