First quarter of 2021 – Atos

• Profits progress at frequent forex: +3.five% to +4.%
• Running margin charge: +forty to 80bps vs . 2020
• Totally free money flow: €550m to €600m

Q1 2021 profits by Field

Profits in the initially quarter of 2021 attained € 2,692 million, -1.9% when compared to Q1 2020 at frequent forex, -3.9% organically.

Covid-19 was continue to impacting Atos organization above the quarter inspite of excellent resilience in Financial Providers & Insurance and in Healthcare & Existence Sciences, as nicely as in Northern Europe, in Growing Marketplaces and in Southern Europe which is exhibiting an encouraging recovery.

With 18% of the Team profits, Producing described a profits of € 488 million, representing a lower by -6.seven% when compared to Q1 2020 at frequent forex. The biggest and principal demanding predicament was the reduction of volumes in Germany, even though the predicament tended to stabilize when compared to earlier quarters in other geographies.

Financial Providers & Insurance profits was € 544 million, representing 20% of the Team profits. The Field grew by +seven.4% at frequent forex when compared to Q1 2020. The exercise improved in most of the geographies and was generally pushed by organization transformation projects in Northern Europe and new electronic banking projects in Growing Marketplaces.

Community Sector & Defense profits was € 579 million representing 22% of the Team profits, down -3.2% at frequent forex. The lower was primarly due to significant Big Information venture delays to subsequent quarters as nicely as quantity reduction in North The united states.

Telecom, Media & Technological know-how represented fourteen% of the Team profits and attained € 373 million, a decrease of -five.% at frequent forex when compared to Q1 2020, with a contrasted effectiveness by geography. Though a significant throughout the world deal with a worldwide technological innovation firm begun to generate a favourable contribution to the Field, effectiveness was impacted by the base consequences of some significant deals executed in 2020 and not recurring in 2021.

Profits produced by Assets & Providers in the initially quarter of 2021 attained € 395 million representing 15% of the Team profits. The Field reduced by -6.2% at frequent forex when compared to Q1 2020 with extremely distinctive tendencies throughout its components. Though a solid effectiveness was described with Utilities buyers, the Field remained impacted by the demanding predicament with buyers running in Transportation and Hospitality wherever the demand from customers carries on to be impacted by Covid-19.

Healthcare & Existence Sciences profits was € 313 million, up by +3.4% when compared to Q1 2020 at frequent fo
rex and representing twelve% of the Team profits. The Field 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 significant projects shipped in Q1 2020.

Q1 2021 profits by Regional Business enterprise Unit

Profits in North The united states attained € 564 million, lowering by -9.4% at frequent forex. The evolution was impacted by the timing of Covid very last calendar year hitting North The united states later than Europe, quantity reduction in Community Sector and one time revenue in Q1 2020, which could not be recurring. In addition some projects were being postponed from Q1 2021 to subsequent quarters. This could not be compensated by the starting of the ramp-up of new contracts in the Cloud and Electronic transformation as nicely as Cybersecurity areas.

Profits in Northern Europe was € 730 million, raising by +6.2% at frequent forex. Sturdy organization progress was recorded in Telecom, Media & Technological know-how as nicely as in Financial Providers & Insurance and Healthcare & Existence Sciences. At the identical time worries were being faced by Community Sector & Defense as nicely as Assets & Providers. Producing remained steady when compared to very last calendar year.

Central Europe described € 609 million of profits, down -eight.five% at frequent forex. This generally resulted from a continue to demanding predicament in the Unified Communications & Collaboration and also in Producing. Many thanks to the ramp-up of quite a few new contracts, Healthcare & Existence Sciences, Assets & Providers and Community Sector & Defense recorded progress, Financial Providers & Insurance remained just about flat inspite of some new projects with significant German banking institutions.

Profits in Southern Europe attained € 607 million, raising by +1.9% when compared to Q1 2020 at frequent forex. The progress of the organization was generally led by the excellent effectiveness of Community Sector & Defense. Progress was also recorded in Financial Providers & Insurance, Assets & Providers and Healthcare & Existence Sciences. The predicament remained demanding in Telecom, Media & Technological know-how and to a lesser extent in Producing.

Profits attained € 181 million in Growing Marketplaces, up +five.1% at frequent forex. In most of the Industries the exercise was more robust with new projects shipped more specifically in Financial Providers & Insurance.

Commercial exercise

Through the initially quarter of 2021, the Team purchase entry attained € 2,596 million representing a Ebook-to-Monthly bill ratio of ninety six%, when compared to one hundred and one% (at frequent forex) reached above the identical time period very last calendar year.

The principal new contracts signed above the time period were being notably in Northern Europe with a significant Chemical buyer (Producing) and a European telco leader (Telecom, Media & Technological know-how), in Southern Europe with Pierre Fabre and a European leader in Prescription drugs (Healthcare & Existence Sciences), a major multi-countrywide automotive producer (Producing) and quite a few contracts with Transportation buyers (Assets & Providers), and in Central Europe with a significant European lender (Financial Providers & Insurance) and Bundesagentur für Arbeit (Community Sector & Defense).

Agreement renewals of the quarter included notably a major producer in optical devices and a significant beverage firm in Central Europe (Producing), quite a few Community Sector contracts in Southern Europe, and a Telecommunications firm in Growing markets.

In line with this dynamic professional exercise, the entire backlog amounted to € 23.2 billion at the close of March 2021, +eight% when compared to March 2020 at frequent forex. It represented 2.1 many years of profits. The entire experienced pipeline attained € eight.4 billion, +fourteen% when compared to March 2020 at frequent forex. It represented 9 months of profits.

Human assets

The whole headcount was 104,485 at the close of March 2021, steady when compared to 104,430 at the close of December 2020.

In the initially quarter of 2021, the Team hired 4,215 employees, the greater part of whom in offshore and nearshore countries.

Acquisitions

In line with its mid-expression strategy, the Team announces currently the signature of 3 bolt-on acquisitions. All of them belong to the strategic places described by the Team to speed up its organization mix modify:

• Electronic, by the acquisition of Processia, a expert of Product or service Lifecycle Administration (PLM)
• Protection, by the acquisition of cryptovision, specialised in Cryptography remedies and items
• Big Information and Analytics, by the acquisition of Ipsotek, a leader in Edge and Laptop or computer Eyesight remedies.

North The united states Audit Stick to-up

The Enterprise made a assertion on April 1, 2021 regarding quite a few matters connected to two US legal entities. As a reminder, the statutory auditors discovered, as aspect of their 2020 audit, interior control weaknesses above the fiscal reporting process and profits recognition in accordance with IFRS 15 major to quite a few accounting mistakes, as nicely as potential chance of override of controls in this respect.

The two US legal entities signify 11% of 2020 Team profits, they are not connected to Syntel.

Even with the supplemental audit processes carried out by the statutory auditors in those situation, they were being not in a position to carry out inside the timeframe the vital operate to receive adequate correct audit proof in respect of profits recognition or other connected account balances of these two US entities and on the absence of substance misstatements for the consolidated fiscal statements. As a consequence, the statutory auditors issued a experienced
belief due to a limitation of scope on the consolidated fiscal statements for the calendar year 2020.

As of currently the Team has not discovered substance misstatements for the 2020 consolidated fiscal statements. On the other hand, the conjunction of quite a few accounting mistakes and interior control weaknesses deserves a major concentration and adhere to-up by the Team. Thus, the Enterprise has determined to conduct a entire accounting critique of the two US legal entities and will give a standing update at the time of H1 benefits.

A solid remediation and avoidance strategy has been designed underneath the leadership of the Team Common Secretary and is getting executed. It covers places this sort of as preventive controls, pointers and documentation, Human Assets critique, skilling and corporation as nicely as consciousness and training. Complementary investigation is ongoing to ensure that the strategy is exhaustive.

Appendix

Profits at frequent scope and trade charges reconciliation

Scope consequences amounted to €+fifty seven million for profits. They are generally connected to:

• the acquisitions closed in 2020 and Q1 2021 for €+sixty seven million
• the disposal of some particular Unified Interaction & Collaboration activities and Wivertis GmBH in 2020, amounting to a whole of €-10 million.

Forex trade charges consequences negatively contributed to profits for €-90 million. They largely came from the depreciation of the American dollar, the Pound sterling and the Brazilian true from the Euro above the time period.

Convention call

Right now, Tuesday, April 20, 2021, the Team will hold a meeting call in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in purchase to comment on Atos’ Q1 2021 profits and response questions from the fiscal group.

You can be part of the webcast of the meeting:

• on internet, in the Traders area
• by telephone with the dial-in, 10 minutes prior the commencing time. Please notice that if you want to be part of the webcast by telephone, you must sign-up in advance of the meeting employing the pursuing link:

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

Upon registration, you will be provided with Participant Dial In Numbers, a Direct Function Passcode and a unique Registrant ID. Get in touch with reminders will also be despatched by means of email the day prior to the party.

Through the 10 minutes prior to the starting of the call, you will have to have to use the meeting obtain details provided in the email been given on registration.

Immediately after the meeting, a replay of the webcast will be available on atos.internet, in the Traders area.

Forthcoming activities

Could twelve, 2021 Yearly Common Conference

July 28, 2021 Initial semester 2021 benefits

October 21, 2021 3rd quarter 2021 profits

Obtain the press release in pdf

Contacts

Investor Relations: Gilles Arditti +33 6 11 sixty nine 81 74 [email protected]

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

About Atos

Atos is a worldwide leader in electronic transformation with one hundred and five,000 workers and yearly profits of above € 11 billion. European variety one in cybersecurity, cloud and large effectiveness computing, the Team offers personalized close-to-close remedies for all industries in seventy one countries. A pioneer in decarbonization providers and items, Atos is fully commited to a secure and decarbonized electronic for its clientele. Atos operates underneath the manufacturers Atos and Atos|Syntel. Atos is a SE (Societas Europaea), detailed on the CAC40 Paris stock index.

The reason of Atos is to assist design the foreseeable future of the details room. Its know-how and providers assistance the advancement of expertise, instruction and investigation in a multicultural technique and contribute to the advancement of scientific and technological excellence. Throughout the world, the Team enables its buyers and workers, and members of societies at significant to live, operate and create sustainably, in a safe and secure details room.

Disclaimers

This doc includes ahead-searching statements that entail dangers and uncertainties, which includes references, relating to the Group’s predicted progress and profitability in the foreseeable future which may possibly drastically impression the predicted effectiveness indicated in the ahead-searching statements. These dangers and uncertainties are connected to variables out of the control of the Enterprise and not exactly estimated, this sort of as current market situations or competitors behaviors. Any ahead-searching statements made in this doc are statements about Atos’ beliefs and anticipations and need to be evaluated as this sort of. Forward-searching statements involve statements that may possibly relate to Atos’ strategies, objectives, tactics, plans, foreseeable future activities, foreseeable future revenues or synergies, or effectiveness, and other details that is not historical details. Real activities or benefits may possibly differ from those explained in this doc due to a variety of dangers and uncertainties that are explained in the 2020 Universal Registration Doc filed with the Autorité des Marchés Financiers (AMF) on April seven, 2021 underneath the registration variety D.21-0269. Atos does not undertake, and particularly disclaims, any obligation or responsibility to update or amend any of the details over other than as usually expected by regulation. This doc does not have or constitute an supply of Atos’ shares for sale or an invitation or inducement to spend in Atos’ shares in France, the United States of The united states or any other jurisdiction.

Atos consolidated and statutory fiscal statements for the calendar year ended December 31, 2020, were being authorised by the Board of Administrators on February 17, 2021. Next their audit processes on the consolidated fiscal statements for the calendar year ended December 31, 2020, the
statutory auditors issued on April 1, 2021 a experienced belief due to a limitation on the scope of the audit as two US legal entities representing 11% of 2020 consolidated profits that have to have supplemental diligences. For the sake of clarity, other than for the qualification included in the statutory auditors’ report on the consolidated fiscal statements for the calendar year ended December 31, 2020, the Team consolidated fiscal statements are audited and the fiscal statements included in the Universal Registration Doc are unchanged when compared to the version posted by the Enterprise on February 18, 2021. As of currently, the Team has not discovered misstatements on the two US entities that are substance for the consolidated fiscal statements.

Profits organic and natural progress is offered at frequent scope and trade charges.

Industries involve Producing (Aerospace, Automotive, Substances, Shopper Packaged Items (Foodstuff & Beverage), Discrete Producing, Process Industries, Providers and Siemens), Financial Providers & Insurance (Insurance, Banking & Financial Providers, and Business enterprise Transformation Providers), Community Sector & Defense (Defense, Education and learning, Extraterritorial Companies, Community Administration, Community Local community Providers and Major Functions), Telecom, Media & Technological know-how (Higher Tech & Engineering, Media, and Telecom), Assets & Providers (Energy, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Existence Sciences (Healthcare and Pharmaceutical).

Regional Business enterprise Units involve 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 Growing Marketplaces which includes 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 Coast, Kenya, Kingdom of Saudi Arabia, Madagascar, Mali, Mauritius, Morocco, Qatar, Senegal, South Africa, Tunisia, Turkey and UAE), Major Functions and World wide Supply Facilities.