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Atos announces preliminary 2021 financial figures below objectives

Paris, January 10, 2022

Referring to EU regulation No. 596/2014, which delivers that issuers shall advise the public as quickly as achievable of inside facts straight appropriate to them, Atos announces today that the goals communicated to the market on July 12, 2021 will not be achieved because of to several major results described herein underneath.

The figures in this push release, which include the earnings growth at continuous currency, functioning margin level and free funds movement for the yr 2021, are not finalized at this stage nor audited. The specific total yr figures for 2021, which include opportunity impairment even more to the evaluation of the recoverable amount of money of property, will be revealed as planned on February 28, 2022 (right after market shut).

Rodolphe Belmer, Atos CEO, explained: “I joined the Firm previous week, at the time when the figures have been getting gathered and consolidated. The present point out of monetary insight sales opportunities us to the obligation to situation a financial gain warning today because of to the major variance in the monetary KPIs. Nonetheless, most of the objects underlying this extreme hole are non-recurring. In specific, the massive hole in Free Cash Movement generally stems from working capital.

I am certain that the Firm has the vital property and all the talents to function a swift turnaround. In this context, I will present at the stop of February a new corporation to the Board of Directors, and in Q2 a prepare that will show the drivers of this turnaround and the concentrate on financially rewarding growth and benefit development.”

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Income growth

Income in 2021 arrived at c. € 10.eight billion, a lessen of c. -two.four% at continuous currency.

The variance in contrast to the total-yr goal of “stable” earnings arrived from:

  • The sudden reassessment of the cost to go on transformation, replatforming and operations of a monetary expert services BPO agreement, signed in 2018 for 15 yrs with a massive Uk monetary institution, main to a major revision of the completion level on the job, at the stop of December 2021, and consequently translating into a destructive earnings impact in 2021.Affect on total-yr earnings growth: c. 70 bps
  • Big Facts/HPCs and Unified Communications & Collaboration job slippages from stop of 2021 to 2022 because of to supply chain issues as perfectly as to shopper postponements in Community Sector & Defense in the Netherlands and the Uk.Affect on total-yr earnings growth: c. ninety bps
  • Hold off to 2022 of last agreements with several massive shoppers to get compensated for excess get the job done performed in 2021. These amendments, anticipated to be signed in December, would have led to added earnings in 2021.Affect on total-yr earnings growth: 30 bps and
  • The diminished amount of very low margin components and application resale in December 2021.Affect on total-yr earnings growth: c. fifty bps.

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Working margin

Working margin amounted to c. four% of earnings in 2021. The variance in contrast to the goal of c. six% arrived generally from:

  • The reduction of the earnings booked and added fees in 2021 on the massive BPO agreement in the Uk described previously mentioned.Affect on functioning margin level: c. ninety bps

Also, the operate period of the BPO agreement on the remaining future 12 yrs needs the provision of c. € sixty five million for future losses under “Other Working Earnings and Expenses”.

  • Venture slippages to 2022 because of to supply chain issues as perfectly as to shopper postponements.Affect on functioning margin level: c. 30 bps
  • Hold off to 2022 of last agreements with several massive shoppers as described previously mentioned to get compensated for excess get the job done performed in 2021.
    Affect on functioning margin level: c. 30 bps and
  • Increased fees than predicted in 2021 on settlements to shut disputes with several shoppers at yr-stop.Affect on functioning margin level: c. 40 bps.

 

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Free Cash Movement

Free Cash Movement is believed at c. €-420 million. The variance in contrast to the goal of good free funds movement is generally because of to working capital and in specific to:

  • € two hundred million from accelerated provider payments at the stop of 2021, as a final result of unexpected stress from significant suppliers and subcontractors in the last weeks of 2021
  • € one hundred fifty million of shopper collections postponed from stop of 2021 to 2022 because of to the late acceptance of assignments by several shoppers which finally prevented selection by yr-stop
  • € 60 million, of which € 30 million relevant to advance payments from shoppers and € 30 million impact from the massive BPO agreement in the Uk described herein previously mentioned and
  • € 30 million from the decreased amount of profits of receivables.

As a reminder, the total yr Free Cash Movement determine of €-420 million also comprises the impact of the German turnaround prepare for €-a hundred and eighty million and a reduction of advance payments from shoppers for €-two hundred million, as communicated on July 12, 2021.

The Net Financial debt at the stop of December 2021 is anticipated to be at c. €-1.two billion main to a Net Financial debt on OMDA (under IFRS) ratio of c. 1.1. Getting into account the Worldline shares covering the Optional Trade Bond, Net Financial debt on OMDA ratio is believed at c. .eight.

The goals for 2022 will be revealed on February 28, 2022 at the occasion of the total-yr 2021 success release.

 

Obtain the PDF version listed here

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Appendix

2021 Objectives 2021 Provisional figures
Income growth at continuous currency Stable c. -two.four%
% Working Margin to earnings c. six% c. four%
Free Cash Movement Constructive c. €-420 million

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Conference call

The Administration of Atos invites you to an intercontinental conference call, on Monday, January 10, 2022 at 08:00 am (CET – Paris) chaired by Rodolphe Belmer, CEO.

You can be a part of the webcast of the conference:

  • by means of the subsequent link: https://edge.media-server.com/mmc/p/no379pbs
  • by phone with the dial-in, 10 minutes prior the starting time. You should notice that if you want to be a part of the webcast by phone, you will have to sign up in advance of the conference employing the subsequent link: http://emea.directeventreg.com/registration/7025829

On registration, you will be provided with Participant Dial In Quantities, a Immediate Celebration Passcode and a distinctive Registrant ID. All through the 10 minutes prior to the beginning of the call, you will will need to use the conference accessibility facts provided in the e mail obtained upon registration.

Following the conference, a replay of the webcast will be out there on atos.web, in the Buyers section.

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Forthcoming activities

February 28, 2022 (Following Market Shut) Full 12 months 2021 success

April 27, 2022 (Just before Market Opening) 1st Quarter 2022 earnings

May well eighteen, 2022 Once-a-year Normal Meeting

July 27, 2022 (Just before Market Opening) 1st semester 2022 success

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Contacts

Investor Relations: Gilles Arditti – +33 1 seventy three 26 00 sixty six – [email protected]

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

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About Atos

Atos is a world chief in electronic transformation with 107,000 employees and once-a-year earnings of in excess of € 11 billion. European variety one particular in cybersecurity, cloud and superior performance computing, the Team delivers tailor-made stop-to-stop options for all industries in 71 nations around the world. A pioneer in decarbonization expert services and products and solutions, Atos is fully commited to a protected and decarbonized electronic for its purchasers. Atos is an SE (Societas Europaea), outlined on Euronext Paris and integrated in the CAC 40 ESG and Future twenty indexes.

The purpose of Atos is to enable style the future of the facts area. Its experience and expert services aid the improvement of know-how, schooling and study in a multicultural solution and add to the improvement of scientific and technological excellence. Throughout the entire world, the Team enables its shoppers and employees, and customers of societies at massive to are living, get the job done and produce sustainably, in a risk-free and protected facts area.

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Disclaimers

This document has forward-looking statements that require risks and uncertainties, which include references, about the Group’s anticipated growth and profitability in the future which may perhaps drastically impact the anticipated performance indicated in the forward-looking statements. These risks and uncertainties are joined to factors out of the management of the Firm and not precisely believed, these types of as market ailments or competitor’s behaviors. Any forward-looking statements produced in this document are statements about Atos’ beliefs and expectations and should really be evaluated as these types of. Ahead-looking statements include things like statements that may perhaps relate to Atos’ strategies, goals, approaches, goals, future activities, future revenues or synergies, or performance, and other facts that is not historic facts. Real activities or success may perhaps vary from all those described in this document because of to a variety of risks and uncertainties that are described in the 2020 Universal Registration Doc filed with the Autorité des Marchés Financiers (AMF) on April 7, 2021 under the registration variety D.21-0269 and the Amendment to the 2020 Universal Registration Paperwork filed with the AMF on July 30, 2021 under variety D.21-0269-A01. Atos does not undertake, and specially disclaims, any obligation or duty to update or amend any of the facts previously mentioned apart from as or else required by legislation. This document does not comprise or represent an provide of Atos’ shares for sale or an invitation or inducement to commit in Atos’ shares in France, the United States of America or any other jurisdiction.

Income organic and natural growth is introduced at continuous scope and exchange costs.

Industries include things like Producing (Aerospace, Automotive, Substances, Customer Packaged Items (Meals & Beverage), Discrete Producing, Approach Industries, Products and services and Siemens), Money Products and services & Coverage (Coverage, Banking & Money Products and services, and Business Transformation Products and services), Community Sector & Defense (Defense, Training, Extraterritorial Businesses, Community Administration, Community Group Products and services and Important Occasions), Telecom, Media & Know-how (Substantial Tech & Engineering, Media, and Telecom), Assets & Products and services (Energy, Retail, Transportation & Hospitality, and Utilities) and Health care & Lifestyle Sciences (Health care and Pharmaceutical).

Regional Business Units include things like North America (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 Growing Marketplaces which include Asia-Pacific (Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand), South America (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), Important Occasions and Global Delivery Facilities.