Atos announces preliminary 2021 financial figures below objectives

Paris, January 10, 2022

Referring to EU regulation No. 596/2014, which offers that issuers shall tell the public as before long as attainable of inside of information directly suitable to them, Atos announces these days that the objectives communicated to the current market on July twelve, 2021 will not be achieved due to quite a few major results explained herein underneath.

The figures in this push launch, together with the income growth at regular currency, running margin fee and free of charge income flow for the yr 2021, are not finalized at this stage nor audited. The thorough total yr figures for 2021, together with possible impairment further to the evaluation of the recoverable total of belongings, will be revealed as planned on February 28, 2022 (just after current market close).

Rodolphe Belmer, Atos CEO, claimed: “I joined the Enterprise past week, at the time when the figures have been staying gathered and consolidated. The current state of money insight potential customers us to the obligation to difficulty a gain warning these days due to the major variance in the money KPIs. However, most of the goods fundamental this intense gap are non-recurring. In particular, the big gap in Absolutely free Cash Stream mainly stems from operating capital.

I am convinced that the Enterprise has the needed belongings and all the abilities to function a swift turnaround. In this context, I will present at the finish of February a new group to the Board of Administrators, and in Q2 a approach that will reveal the drivers of this turnaround and the aim on financially rewarding growth and value development.”

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Income growth

Income in 2021 achieved c. € 10.eight billion, a minimize of c. -2.four% at regular currency.

The variance as opposed to the total-yr goal of “stable” income arrived from:

  • The surprising reassessment of the cost to go on transformation, replatforming and functions of a money services BPO contract, signed in 2018 for fifteen decades with a big United kingdom money institution, top to a key revision of the completion fee on the project, at the finish of December 2021, and as a result translating into a damaging income impression in 2021.Effect on total-yr income growth: c. 70 bps
  • Major Info/HPCs and Unified Communications & Collaboration project slippages from finish of 2021 to 2022 due to provide chain issues as perfectly as to consumer postponements in Public Sector & Defense in the Netherlands and the United kingdom.Effect on total-yr income growth: c. 90 bps
  • Hold off to 2022 of ultimate agreements with quite a few big clients to get compensated for more work performed in 2021. These amendments, envisioned to be signed in December, would have led to further income in 2021.Effect on total-yr income growth: thirty bps and
  • The lowered degree of minimal margin hardware and computer software resale in December 2021.Effect on total-yr income growth: c. 50 bps.

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Running margin

Running margin amounted to c. four% of income in 2021. The variance as opposed to the goal of c. 6% arrived mainly from:

  • The reduction of the income booked and further costs in 2021 on the big BPO contract in the United kingdom pointed out over.Effect on running margin fee: c. 90 bps

Also, the operate phase of the BPO contract on the remaining up coming twelve decades necessitates the provision of c. € 65 million for future losses beneath “Other Running Cash flow and Expenses”.

  • Project slippages to 2022 due to provide chain issues as perfectly as to consumer postponements.Effect on running margin fee: c. thirty bps
  • Hold off to 2022 of ultimate agreements with quite a few big clients as pointed out over to get compensated for more work performed in 2021.
    Effect on running margin fee: c. thirty bps and
  • Greater costs than predicted in 2021 on settlements to close disputes with quite a few clients at yr-finish.Effect on running margin fee: c. forty bps.

 

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Absolutely free Cash Stream

Absolutely free Cash Stream is approximated at c. €-420 million. The variance as opposed to the goal of optimistic free of charge income flow is mainly due to operating capital and in particular to:

  • € two hundred million from accelerated provider payments at the finish of 2021, as a end result of unexpected force from crucial suppliers and subcontractors in the ultimate months of 2021
  • € a hundred and fifty million of consumer collections postponed from finish of 2021 to 2022 due to the late acceptance of jobs by quite a few clients which in the long run prevented selection by yr-finish
  • € sixty million, of which € thirty million linked to advance payments from clients and € thirty million impression from the big BPO contract in the United kingdom pointed out herein over and
  • € thirty million from the reduced degree of revenue of receivables.

As a reminder, the total yr Absolutely free Cash Stream figure of €-420 million also contains the impression of the German turnaround approach for €-one hundred eighty million and a reduction of advance payments from clients for €-two hundred million, as communicated on July twelve, 2021.

The Web Debt at the finish of December 2021 is envisioned to be at c. €-one.2 billion top to a Web Debt on OMDA (beneath IFRS) ratio of c. one.one. Getting into account the Worldline shares covering the Optional Trade Bond, Web Debt on OMDA ratio is approximated at c. .eight.

The objectives for 2022 will be revealed on February 28, 2022 at the celebration of the total-yr 2021 effects launch.

 

Down load the PDF version below

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Appendix

2021 Goals 2021 Provisional figures
Income growth at regular currency Steady c. -2.four%
% Running Margin to income c. 6% c. four%
Absolutely free Cash Stream Optimistic c. €-420 million

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Meeting connect with

The Management of Atos invitations you to an international conference connect with, on Monday, January 10, 2022 at 08:00 am (CET – Paris) chaired by Rodolphe Belmer, CEO.

You can join the webcast of the conference:

  • through the subsequent website link: https://edge.media-server.com/mmc/p/no379pbs
  • by phone with the dial-in, 10 minutes prior the starting up time. You should take note that if you want to join the webcast by phone, you should sign-up in advance of the conference employing the subsequent website link: http://emea.directeventreg.com/registration/7025829

Upon registration, you will be furnished with Participant Dial In Quantities, a Immediate Event Passcode and a exclusive Registrant ID. Through the 10 minutes prior to the commencing of the connect with, you will need to have to use the conference entry information furnished in the email acquired upon registration.

Immediately after the conference, a replay of the webcast will be offered on atos.internet, in the Traders segment.

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Forthcoming situations

February 28, 2022 (Immediately after Sector Shut) Complete Yr 2021 effects

April 27, 2022 (Just before Sector Opening) First Quarter 2022 income

Could 18, 2022 Once-a-year Standard Meeting

July 27, 2022 (Just before Sector Opening) First semester 2022 effects

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Contacts

Investor Relations: Gilles Arditti – +33 one seventy three 26 00 66 – gilles.arditti@atos.internet

Media: Anette Rey – +33 6 69 seventy nine eighty four 88 – anette.rey@atos.internet

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About Atos

Atos is a international leader in digital transformation with 107,000 workers and once-a-year income of in excess of € eleven billion. European selection one particular in cybersecurity, cloud and high functionality computing, the Team offers customized finish-to-finish options for all industries in 71 countries. A pioneer in decarbonization services and solutions, Atos is committed to a secure and decarbonized digital for its consumers. Atos is an SE (Societas Europaea), shown on Euronext Paris and provided in the CAC forty ESG and Future 20 indexes.

The intent of Atos is to assistance design and style the future of the information house. Its knowledge and services aid the progress of awareness, training and investigate in a multicultural technique and contribute to the progress of scientific and technological excellence. Across the world, the Team permits its clients and workers, and customers of societies at big to reside, work and create sustainably, in a risk-free and secure information house.

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Disclaimers

This document incorporates forward-seeking statements that involve risks and uncertainties, together with references, regarding the Group’s envisioned growth and profitability in the future which may well substantially impression the envisioned functionality indicated in the forward-seeking statements. These risks and uncertainties are linked to variables out of the manage of the Enterprise and not precisely approximated, these kinds of as current market problems or competitor’s behaviors. Any forward-seeking statements built in this document are statements about Atos’ beliefs and expectations and really should be evaluated as these kinds of. Forward-seeking statements incorporate statements that may well relate to Atos’ designs, objectives, procedures, aims, future situations, future revenues or synergies, or functionality, and other information that is not historic information. Actual situations or effects may well vary from all those explained in this document due to a selection of risks and uncertainties that are explained in the 2020 Common Registration Doc submitted with the Autorité des Marchés Financiers (AMF) on April seven, 2021 beneath the registration selection D.21-0269 and the Modification to the 2020 Common Registration Files submitted with the AMF on July thirty, 2021 beneath selection D.21-0269-A01. Atos does not undertake, and specially disclaims, any obligation or duty to update or amend any of the information over apart from as otherwise demanded by regulation. This document does not incorporate or constitute an give 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.

Income natural and organic growth is offered at regular scope and exchange costs.

Industries incorporate Production (Aerospace, Automotive, Chemical compounds, Customer Packaged Goods (Food & Beverage), Discrete Production, Course of action Industries, Providers and Siemens), Monetary Providers & Insurance policy (Insurance policy, Banking & Monetary Providers, and Business Transformation Providers), Public Sector & Defense (Defense, Training, Extraterritorial Corporations, Public Administration, Public Local community Providers and Main Gatherings), Telecom, Media & Technologies (Higher Tech & Engineering, Media, and Telecom), Means & Providers (Electricity, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Life Sciences (Healthcare and Pharmaceutical).

Regional Business Units incorporate North The united states (United states, 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 Rising Markets together with 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 Coast, Kenya, Kingdom of Saudi Arabia, Madagascar, Mali, Mauritius, Morocco, Qatar, Senegal, South Africa, Tunisia, Turkey and UAE), Main Gatherings and International Supply Centers.