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2021: A year of transition for Atos

Adjustment of Annual Goals
Confirmation of Mid-term Targets

 

Paris, July twelve, 2021

Referring to EU regulation No. 596/2014, which provides that issuers shall notify the community as shortly as achievable of within data directly applicable to them, Atos announces the adjustment of its 2021 annual aims. The very first semester figures are not finalized nor audited, the in-depth very first semester accounts will be revealed as prepared on July 28, 2021.

Throughout the second quarter, earnings development at constant currency came again to steadiness. On the other hand, natural development remained detrimental at c. -1.five{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} owing to an accelerated drop of legacy infrastructure company in a context of a significantly more powerful demand for post-COVID cloud migration. The Team anticipates that this company shift will persist throughout the second semester. The other Team corporations benefitted from the financial restoration driving a booming digital demand. In this context, the Team adjusts its aim of earnings development at constant currency for the complete year to steady.

While for this year the Team had predicted a higher seasonality involving the very first and second semester, running margin was decrease than anticipated in the very first semester at c. five.five{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}. Considering the earnings adjustment in excess of the complete year, impacting legacy actions with a lower brief term charge flexibility, the Team adjusts its running margin aim to c. 6.{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} for the complete year. As a consequence of this unparalleled affect on the company, various fantastic goods (produce-off of belongings, decline provisions) have been booked under “Other Working Cash flow and Expenses”. This line amounted to a total of c. €-160 million in the very first semester.

Throughout the very first semester, no cost hard cash circulation amounted to c. €-364 million in contrast to €-172 million throughout 2020 very first semester. Cost-free hard cash circulation was primarily impacted by doing work money and in individual by a reduction in hard cash in progress from buyers. Shifting forward, the Team decides to lower hard cash in progress from buyers. The altered aim for 2021 is a constructive no cost hard cash circulation, to mirror the impacts from the running margin aim reduction, and doing work money, much more specially on consumer progress payments. The new aim also assumes the entire 1-off € a hundred and eighty million hard cash outflow in 2021 for the German turnaround program (see down below).

Transformation agenda and mid-term targets

In this context, the Team has made a decision to speed up its transformation -the two organically and inorganically- by growing its achievements in, and concentrating on, Digital, Cloud, Protection, and Decarbonization.

In individual, the strategic portfolio evaluate of non-core belongings is becoming finalized and the Team will converse on its conclusions on July 28, 2021, so as to shift to execution quickly.

Negotiations with social associates regarding the important turnaround of the German infrastructure company have concluded to a restructuring program of c. 1,300 individuals, offering an additional 1{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} running margin at Team amount mid-term. The program will be in-depth on July 28, 2021.

Following a year of changeover in 2021, the Team expects to improve on all its KPIs in 2022 and maintains its mid term targets of earnings development at constant currency from +five{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} to +seven{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}, running margin level from 11{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} to twelve{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} and no cost hard cash circulation conversion above 60{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}.

North The us Audit Abide by up

Regarding the audit of the US lawful entities, the Team made a decision in April this year to carry out a complete accounting evaluate of those people entities as of December 31, 2020, supported by exterior advisors.

This do the job is becoming finalized and at this stage misstatements identified are not materials. The auditors’ do the job is also ongoing as aspect of their 50 {79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} year evaluate.

The completion of this method is qualified to be obtained at the time of H1 release on July 28, 2021.

Aside from, the remediation and avoidance program has been finalized and is becoming rolled out.

Appendix

 

Adjusted Goals

(July twelve, 2021)

First Goals

(February eighteen, 2021)

Earnings development at constant currency Stable +three.five{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} to +four.{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} Working Margin to earnings c. 6.{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} 9.four{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} to 9.8{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
Cost-free Hard cash Stream Beneficial €550 to €600 million

 

The Management of Atos invitations you to an global conference contact, on Monday, July twelve, 2021 at 08:00 am (CET – Paris).

You can join the webcast of the conference:

  • by way of the next connection: https://edge.media-server.com/mmc/p/cvgjqzz9
  • by phone with the dial-in, 10 minutes prior the starting time. You should observe that if you want to join the webcast by phone, you ought to sign-up in progress of the conference working with the next connection: http://emea.directeventreg.com/registration/9249267
    On registration, you will be provided with Participant Dial In Figures, a Direct Occasion Passcode and a unique Registrant ID. Throughout the 10 minutes prior to the commencing of the contact, you will require to use the conference obtain data provided in the electronic mail received on registration.

Following the conference, a replay of the webcast will be out there on atos.internet, in the Traders portion.

The press release will be issued on Monday, July twelve, 2021 at 07:30 am (CET – Paris).

 

Forthcoming occasions

July 28, 2021               First semester 2021 final results

October 21, 2021         Third quarter 2021 earnings

Obtain the press release in pdf 

Contacts

Investor Relations:

Gilles Arditti – +33 6 11 69 81 seventy four –  [email protected]

Media:

Anette Rey –  +33 6 69 seventy nine eighty four 88 – [email protected]

About Atos

Atos is a international leader in digital transformation with one hundred and five,000 employees and annual earnings of in excess of € 11 billion. European selection 1 in cybersecurity, cloud and higher general performance computing, the Team provides personalized stop-to-stop solutions for all industries in seventy one nations. A pioneer in decarbonization services and merchandise, Atos is fully commited to a secure and decarbonized digital for its clientele. Atos operates under the manufacturers Atos and Atos|Syntel. Atos is a SE (Societas Europaea), shown on the CAC40 Paris stock index.

The goal of Atos is to assist design the future of the data place. Its knowledge and services help the development of know-how, education and exploration in a multicultural technique and add to the development of scientific and technological excellence. Throughout the planet, the Team permits its buyers and employees, and users of societies at huge to live, do the job and develop sustainably, in a safe and sound and secure data place.

Disclaimers

This doc contains forward-hunting statements that entail threats and uncertainties, which include references, about the Group’s anticipated development and profitability in the future which may possibly appreciably affect the anticipated general performance indicated in the forward-hunting statements. These threats and uncertainties are linked to aspects out of the manage of the Company and not specifically estimated, these kinds of as industry situations or opponents behaviors. Any forward-hunting statements built in this doc are statements about Atos’ beliefs and expectations and should really be evaluated as these kinds of. Ahead-hunting statements consist of statements that may possibly relate to Atos’ strategies, aims, procedures, targets, future occasions, future revenues or synergies, or general performance, and other data that is not historic data. Precise occasions or final results may possibly vary from those people described in this doc owing to a selection of threats and uncertainties that are described in the 2020 Common Registration Doc submitted with the Autorité des Marchés Financiers (AMF) on April seven, 2021 under the registration selection D.21-0269. Atos does not undertake, and specially disclaims, any obligation or duty to update or amend any of the data above except as usually necessary by regulation. This doc does not include 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 us or any other jurisdiction.

Atos consolidated and statutory monetary statements for the year ended December 31, 2020, were permitted by the Board of Administrators on February seventeen, 2021. Next their audit methods on the consolidated monetary statements for the year ended December 31, 2020, the statutory auditors issued on April 1, 2021 a qualified feeling owing to a limitation on the scope of the audit as two US lawful entities representing 11{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} of 2020 consolidated earnings that need additional diligences. For the sake of clarity, except for the qualification involved in the statutory auditors’ report on the consolidated monetary statements for the year ended December 31, 2020, the Team consolidated monetary statements are audited and the monetary statements involved in the Common Registration Doc are unchanged in contrast to the model revealed by the Company on February eighteen, 2021. As of now, the Team has not identified misstatements on the two US entities that are materials for the consolidated monetary statements.

Earnings natural development is introduced at constant scope and trade rates.

Industries consist of Producing (Aerospace, Automotive, Chemical compounds, Client Packaged Goods (Meals & Beverage), Discrete Producing, Course of action Industries, Products and services and Siemens), Fiscal Products and services & Insurance plan (Insurance plan, Banking & Fiscal Products and services, and Organization Transformation Products and services), General public Sector & Defense (Defense, Education and learning, Extraterritorial Corporations, General public Administration, General public Local community Products and services and Main Events), Telecom, Media & Technologies (Large Tech & Engineering, Media, and Telecom), Means & Products and services (Electrical power, Retail, Transportation & Hospitality, and Utilities) and Health care & Lifetime Sciences (Health care and Pharmaceutical).

Regional Organization Models consist of North The us (United states, 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 Rising Markets which include 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 Coastline, Kenya, Kingdom of Saudi Arabia, Madagascar, Mali, Mauritius, Morocco, Qatar, Senegal, South Africa, Tunisia, Turkey and UAE), Main Events and World-wide Shipping and delivery Centers.