Third quarter of 2021 – Atos

Earnings steady at € two,666 million
at regular currency

Purchase entry at € two,399 million

Ebook to monthly bill ratio at 90%

Electronic, Cloud, Security & Decarbonization at fifty two% of profits

Web natural and organic increase of abilities by +one,five hundred

Group Transformation applications shifting at velocity

2021 objectives confirmed

Paris, Oct 20, 2021 – Atos, a global leader in electronic transformation, right now announces the profits of its 3rd quarter of 2021.

In the 3rd quarter, the Group ongoing to stabilize its profits at regular currency, prior to progressing into good territory. Market place demand submit crisis remained incredibly dynamic in Cloud software migration and growth and the Electronic transformation of business enterprise procedures by means of automation, robotisation and synthetic intelligence. In all regions, clients now demand electronic remedies with the highest criteria of protection, sustainability and inclusiveness, three domains exactly where Atos brings distinctive technological knowledge.

The Group ongoing to pursue its deep and large business enterprise transformation system, selecting a report number of new techniques in a incredibly very hot expertise current market, resulting for the very first time in a internet natural and organic increase of +one,five hundred workers. This will assistance gasoline our development ambitions. In the very same vein, we bolstered our partnerships with General public Cloud hyperscalers though striking new types with significant development Electronic platforms.

Our transformation applications announced in July are shifting at velocity on all fronts. The German restructuring is well under way. The system to glimpse for associates on c. 20% of the Group profits is being executed with state-of-the-art conversations on our Unified Communications & Collaboration asset. The acquisition of a new electronic bolt-on asset has been signed. Ultimately, our LEAP cultural adjust application is ramping up.

The Group Administration would like to thank our 107,000 colleagues for their huge aid for and determination to this transformation journey, which is setting the right foundations for attaining our mid-term targets.

Q3 2021 profits by Business

Earnings
In € million Q3 2021 Q3 2020* Evolution at regular currency
Producing 518 469 +ten.four%
Monetary Products and services & Insurance 524 512 +two.3%
General public Sector & Protection 553 628 -11.nine%
Telecom, Media & Technology 355 363 -two.%
Methods & Products and services 383 378 +one.five%
Health care & Lifestyle Sciences 333 317 +five.one%
Overall two,666 two,666 .%
* At regular currency

 

Earnings in the 3rd quarter of 2021 reached € two,666 million, steady in comparison to Q3 2020 at regular currency, and decreasing by -two.3% organically. The crucial segments to which the Group directs its transformation – Electronic, Cloud, Security and Decarbonization – performed a solid development though profits was still impacted in Basic Infrastructure.

Producing documented a profits of € 518 million, symbolizing 19% of the Group profits and escalating by +ten.four% in comparison to Q3 2020 at regular currency. This was an acceleration of its recovery following a next quarter now growing by +one.eight%. Every geography contributed to this solid development, pushed by a repositioning of the Business on increased worth electronic jobs and remedies to meet buyer needs. Far more specially, the Business increased business enterprise in software jobs ran in Automotive and Aerospace, as well as digitization of industrial procedures including IoT based good manufacturing choices.

Monetary Products and services & Insurance profits was € 524 million through the 3rd quarter of 2021, symbolizing 20% of the Group profits. Rising by +two.3% in comparison to Q3 2020 at regular currency, the Business confirmed its efficiency of the very first semester, especially in the Insurance sector though exercise with Banking institutions was additional contrasted. Company in this Business ongoing to be led by electronic transformation jobs and a solid demand for cybersecurity knowledge, both equally included by the choices of the Group and the synergies with the newly acquired corporations such as Eagle Creek, Electronic.Security, and Paladion.

General public Sector & Protection reached € 553 million symbolizing 21% of the Group profits and decreasing calendar year-on-calendar year at regular currency by -11.nine% following a +thirteen.% in Q3 2020. This decrease arrived from volume reduction in substantial Substantial Effectiveness Computing (HPC) jobs delivered very last calendar year in most of the geographies and additional specially in Northern Europe, as well as the very last quarter of calendar year-on-calendar year effect from the substantial reduction of scope of the Texas Section of Info Methods deal renewed very last calendar year.

Telecom, Media & Technology represented thirteen% of the Group profits and reached € 355 million, decreasing by -two.% in comparison to Q3 2020 at regular currency. After a good next quarter, the Business had a additional hard 3rd quarter as developments had been blended in between its diverse sectors. Although jobs in the Media sector grew many thanks to an increased volume in North The united states, the scenario was additional hard in Substantial Tech & Engineering as well as in Telecom.

Earnings generated by Methods & Products and services in the 3rd quarter of 2021 reached € 383 million symbolizing 14% of the total profits of the Group. The field managed to get well and grew by +one.five% in comparison to Q3 2020 at regular currency following a decrease by -two.five% in the next quarter of 2021. The scenario remained contrasted across its parts, with dynamism in Transportation & Hospitality, especially in North The united states and Southern Europe, though the Retail and Electricity & Utilities sectors declined because of to HPC revenue not recurring this calendar year in comparison to 2020.

Symbolizing 12% of the Group profits with € 333 million, Health care & Lifestyle Sciences grew by +five.one% in the 3rd quarter of 2021 calendar year-on-calendar year at regular currency led by Northern Europe, Southern Europe, and Escalating Marketplaces. In particular, the Health care sector recorded a incredibly solid efficiency in comparison to the 3rd quarter of 2020, which additional than compensated the decline in Pharmaceutical.

Q3 2021 profits by Regional Company Unit

Earnings
In € million Q3 2021 Q3 2020* Evolution at regular currency
North The united states 617 625 -one.3%
Northern Europe 674 seven hundred -3.eight%
Central Europe 619 631 -one.eight%
Southern Europe 556 520 +7.%
Escalating Marketplaces 201 191 +four.nine%
Overall two,666 two,666 .%
* At regular currency

 

The majority of the Regions benefited from the rebound of the demand for Electronic transformation, Cloud, and Cybersecurity in the sectors that have been impacted the most very last calendar year such as Producing and Hospitality & Transportation. They benefited also from a very good momentum in Health care & Lifestyle Sciences and Monetary Products and services & Insurance. Put together with synergies initiated from the new acquisitions, the Group managed to compensate the decline in General public Sector & Protection coming from volume reduction and some substantial HPCs delivered very last calendar year in numerous geographies.

Earnings development at regular currency was solid in Southern Europe and in Escalating Marketplaces.

In Southern Europe, the exercise was strong in most of the Industries including General public Sector & Protection.

Escalating Marketplaces ongoing on its development at circa +five% development led by the ramp-up of jobs in Asia in Health care & Lifestyle Sciences as well as in Telecom, Media & Technology in Brazil and in Producing by means of volume increase and new jobs.

North The united states managed to create development at regular currency in all Industries besides General public Sector & Protection impacted by the Texas Section of Info Methods deal and by Unified Communications & Collaboration routines.

Northern Europe recorded a solid exercise in Producing with Electronic Transformation jobs as well as in Health care & Lifestyle Sciences. But this geography faced unfavourable base effect on Substantial Effectiveness Computing in General public Sector & Protection.

Ultimately, Central Europe considerably enhanced its profits development in comparison to -ten.3% in Q2 many thanks to Producing ramp-up of jobs and new contracts.

Business exercise

Through the 3rd quarter of 2021, the Group buy entry reached € two,399 million symbolizing a Ebook-to-Invoice ratio of 90%.

The most important new contracts signed more than the period of time involved notably:

  • in Producing a deal with a substantial European Automotive provider for the migration to S/four Hana Cloud (Central Europe)
  • in Monetary Products and services & Insurance a deal with a US global Insurance company for a migration to General public Cloud combining Atos, Syntel, and Maven Wave abilities (North The united states)
  • in General public Sector & Protection a substantial deal with a General public authority for a Electronic Transformation job (Northern Europe)
  • in Telecom, Media & Technology a Electronic Transformation deal embarking Cloud, Security, and Decarbonization products and services with a European Substantial Tech leader (Northern Europe)
  • in Methods & Products and services a deal with a substantial European Utility for distribution network management and management combining SAP and Atos Electricity remedies (Southern Europe) and
  • in Health care & Lifestyle Sciences a deal with a substantial Health care leader for the growth of electronic device to increase client experience (North The united states).

Deal renewals of the quarter involved, in Producing a substantial European car producer with an extension to aid buyer in producing information-based Cloud products and services (Southern Europe), in Monetary Products and services & Insurance a key financial institution to migrate elaborate information middle and apps (Escalating Marketplaces), and a scope extension with a substantial retailer Methods & Products and services (North The united states).

Whole backlog amounted to € 23.four billion at the finish of September 2021, a bit down in comparison to June 2021. It represented two.one yrs of profits. Full capable pipeline reached € 7.four billion steady in comparison to June 2021. It represented 7.nine months of profits.

Human resources

The total headcount was 106,665 at the finish of September 2021, an increase of +one,857, of which for the very first time +one,485 (+one.four%) organically in buy to aid the rapidly growing business enterprise segments (Electronic, Cloud, Security and Decarbonization) though the Group ongoing to decrease the number of employees in Infrastructure routines by means of automation and robotization.

In the 3rd quarter of 2021, the Group employed eight,019 employees, the majority of whom in offshore and nearshore countries. Attrition LTM (Very last Twelve Months) reached 16% at the finish of September 2021.

2021 objectives confirmed

The Group confirms all its objectives for 2021:

  • Earnings development at regular currency: steady
  • Operating margin price: 6%
  • Cost-free cash circulation:

Acquisition

The Group right now announces the acquisition of DataSentics, a European enterprise founded in 2016 and situated in Prague. DataSentics specializes in Machine Discovering and Cloud Details engineering. The enterprise will work on unifying information science and engineering across Europe. It employs 90 information scientists. Its choices will instantly enhance Synthetic Intelligence manufacturing unit strategy of Atos to aid 5G and Edge choices and accelerate crucial business enterprise use circumstances in Producing, Retail, and Telecommunications.

Plan to glimpse for associates to optimize Group assets

As section of its transformation and to accelerate its reprofiling towards Electronic, Cloud, Security & Decarbonization, the Group announced on July 27, 2021 the start of a substantial application to glimpse for associates on a volume of business enterprise symbolizing c. 20% of its current profits.

On Unified Communications & Collaboration, state-of-the-art conversations are now ongoing.

On Details Centre web hosting and connected routines, a official method has been launched and multiple indications of curiosity have been obtained.

 

Appendix

 

Earnings at regular scope and trade costs reconciliation

In € million Q3 2021 Q3 2020 % adjust
Statutory profits two,666 two,644 +.eight%
Exchange costs effect 22
Earnings at regular trade costs two,666 two,666 .%
Scope effect sixty three
Exchange costs effect on acquired/disposed perimeters one
Earnings at regular scope and trade costs two,666 two,729 -two.3%

 

Scope outcomes amounted to €+sixty three million for profits. They are largely related to:

  • the acquisitions closed in H2 2020 and in 2021 for €+sixty eight million and
  • the disposal of some precise Unified Communications & Collaboration routines and Wivertis GmBH in 2020, amounting for a total of €-five million.

Currency trade price outcomes positively contributed to profits for €+22 million. They mostly arrived from the appreciation of the British Pound in opposition to the Euro more than the period of time.

Conference connect with

Tomorrow, Thursday, Oct 21, 2021, the Group will maintain a convention connect with in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in buy to comment on Atos’ Q3 2021 profits and solution concerns from the economical community.

You can join the webcast of the convention:

  • by means of the pursuing hyperlink: https://edge.media-server.com/mmc/p/9dtvfypf
  • by phone with the dial-in, ten minutes prior the starting up time. Remember to take note that if you want to join the webcast by phone, you will have to sign-up in advance of the convention employing the pursuing hyperlink:

http://emea.directeventreg.com/registration/5061859

Upon registration, you will be provided with Participant Dial In Numbers, a Immediate Function Passcode and a distinctive Registrant ID. Get in touch with reminders will also be despatched by means of e-mail the day prior to the event.

Through the ten minutes prior to the beginning of the connect with, you will need to use the convention accessibility info provided in the e-mail obtained upon registration.

After the convention, a replay of the webcast will be accessible on atos.internet, in the Investors area.

Forthcoming gatherings

February 28, 2022 (After Market place Near) Whole Calendar year 2021 final results

April 27, 2022 (Prior to Market place Opening) First Quarter 2022 profits

May eighteen, 2022 Once-a-year General Conference

July 27, 2022 (Prior to Market place Opening) First semester 2022 final results

Contacts

Investor Relations: Gilles Arditti – +33 6 11 69 eighty one seventy four – [email protected]

Media: Anette Rey – +33 6 69 79 84 88 – [email protected]

***

Obtain the PDF variation of the document here

About Atos

Atos is a global leader in electronic transformation with 107,000 workers and yearly profits of more than € 11 billion. European number a person in cybersecurity, cloud and significant efficiency computing, the Group gives tailor-made finish-to-finish remedies for all industries in 71 countries. A pioneer in decarbonization products and services and products, Atos is committed to a secure and decarbonized electronic for its consumers. Atos is an SE (Societas Europaea), detailed on Euronext Paris and involved in the CAC 40 ESG and Next 20 indexes.

The function of Atos is to assistance layout the long term of the info room. Its knowledge and products and services aid the growth of understanding, education and investigate in a multicultural technique and contribute to the growth of scientific and technological excellence. Across the planet, the Group allows its clients and workers, and users of societies at substantial to live, function and create sustainably, in a harmless and secure info room.

Disclaimers

This document includes forward-on the lookout statements that include dangers and uncertainties, including references, about the Group’s expected development and profitability in the long term which may perhaps considerably impact the expected efficiency indicated in the forward-on the lookout statements. These dangers and uncertainties are connected to aspects out of the management of the Company and not specifically approximated, such as current market situations or competitor’s behaviors. Any forward-on the lookout statements created in this document are statements about Atos’ beliefs and expectations and need to be evaluated as such. Forward-on the lookout statements include statements that may perhaps relate to Atos’ strategies, objectives, strategies, goals, long term gatherings, long term revenues or synergies, or efficiency, and other info that is not historic info. Real gatherings or final results may perhaps vary from individuals explained in this document because of to a number of dangers and uncertainties that are explained within just the 2020 Common Registration Document submitted with the Autorité des Marchés Financiers (AMF) on April 7, 2021 under the registration number D.21-0269 and the Amendment to the 2020 Common Registration Paperwork submitted with the AMF on July 30, 2021 under number D.21-0269-A01. Atos does not undertake, and specially disclaims, any obligation or obligation to update or amend any of the info previously mentioned besides as otherwise expected by regulation. This document does not incorporate or represent an offer you 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.

Earnings natural and organic development is offered at regular scope and trade costs.

Industries include Producing (Aerospace, Automotive, Chemical substances, Customer Packaged Merchandise (Meals & Beverage), Discrete Producing, Procedure Industries, Products and services and Siemens), Monetary Products and services & Insurance (Insurance, Banking & Monetary Products and services, and Company Transformation Products and services), General public Sector & Protection (Protection, Schooling, Extraterritorial Organizations, General public Administration, General public Local community Products and services and Big Activities), Telecom, Media & Technology (Substantial Tech & Engineering, Media, and Telecom), Methods & Products and services (Electricity, Retail, Transportation & Hospitality, and Utilities) and Health care & Lifestyle Sciences (Health care and Pharmaceutical).

Regional Company Models include 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 Escalating 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), 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), Big Activities and World-wide Delivery Facilities.