February 22, 2024

GWS5000

Make Every Business

First quarter of 2020 – Atos

A resilient profile and a powerful harmony sheet to confront an unprecedented circumstance

Earnings at € two,834 million

-.eight{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} organic progress

Guide to bill ratio at 103{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}

Renewals of key contracts in North The us

Correct business enterprise mix to guidance customers in Covid-19 context

Needed charge steps currently being carried out to shield working margin

SPRING transformation plan to an Market solution effectively on observe

Update of 2020 targets put up Covid-19

 

Paris, April 22, 2020,

Atos, a worldwide leader in digital transformation, now announces the revenue of its initial quarter of 2020.

Elie Girard, CEO, explained: “In this unprecedented setting wherever uncertainty prevails, our initial priority has been to shield our personnel even though offering total continuity of provider to our consumers. The Team is solidly positioned to navigate efficiently through the crisis thanks to deep client relationships throughout all industries, a resilient business enterprise mix and a strong harmony sheet that supplies a powerful economic versatility.

Our one hundred ten,000 colleagues throughout the earth have presented an fast and remarkable reaction to customers’ challenges and want for guidance through our “Always Ready” plan created now considering the fact that the starting of the 12 months. Now our minds and efforts are turning to the put up-Covid instances, actively preparing for the “new normal” which will see an acceleration in particular customers’ wants, specifically information platforms, cybersecurity, cloud migration, digital workplace and decarbonization.

We revise now our targets for 2020 demonstrating the resilience of the Team and the willingness to share any impact rather throughout stakeholders. I am convinced that Atos will arise from this worldwide crisis stronger than ever and ready to move forward to the subsequent phase.”

Q1 2020 revenue was € 2,834 million, down -.eight{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} organically. In the context of Covid-19 crisis and limits and lockdowns in March in most of the countries wherever the Team operates, revenue reduced only marginally thanks to the resilient profile of its corporations based on multi-12 months contracts put together with its reliable business enterprise in Large Details and Cybersecurity. Also, and in spite of the crisis, the Team accelerated its professional dynamism with order entry at € 2,908 million top to a e-book to bill ratio of 103{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}, drastically up in contrast to last 12 months at 86{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}.

Q1 2020 revenue overall performance by Market

In € million Q1 2020 Q1 2019* Natural and organic
evolution
Producing 539 555 -two.nine{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
Economical Products and services & Insurance policy 527 542 -two.6{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
Community Sector & Protection 584 566 +three.two{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
Telecom, Media & Technological know-how 443 439 +.eight{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
Means & Products and services 418 416 +.four{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
Healthcare & Lifestyle Sciences 323 340 -four.nine{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
Full Team two,834 two,858 -.eight{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
* At continual scope and trade premiums

 

Producing achieved € 539 million of revenue, down -two.nine{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} at continual scope and trade premiums. The Market benefitted from a very good overall performance in Automotive with the ramp-up of a German car or truck firm and Rheinmetall on information administration contracts, compensating the impact in Daimler because of to Covid-19 and the ramp down of PSA. Conversely, Producing was impacted by decreased volumes with Siemens, a slowdown in the Aerospace sector because of to Covid-19, and many shifts of machines sales toward the conclusion of the quarter.

Economical Products and services & Insurance policy revenue was € 527 million in the initial quarter 2020, down by -two.6{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} organically. Northern Europe and Southern Europe benefited respectively from the ramp-up with Aegon in the United Kingdom, as effectively as the progress of exercise with a payment firm in France which have a lot more than compensated for the reduction of volumes from banking establishments in Central Europe. Expanding marketplaces endured from non-recurring sales executed last 12 months in APAC and Center East & Africa. In North The us, project based activities decrease now noticed in earlier quarters was accelerated in March because of to choices from many Economical Products and services corporations to postpone or decrease discretionary fees in the context of Covid-19.

Community Sector & Protection revenue was € 584 million, up +three.two{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} at continual scope and trade premiums. The progress was driven by the powerful overall performance recorded in Northern Europe, thanks to the continuation of the contract with European Center for Medium vary Climate forecast as effectively as with EU Lisa and clever information system in Benelux. North The us attained security inspite of decreased volumes, thanks to supplemental sales on present contracts. The circumstance was a lot more hard in Southern Europe, impacted by the ramp-down of Superior Overall performance Computing exercise as effectively as non-recurring sales executed last 12 months. Central Europe was negatively impacted by decreased volumes, and at last Expanding Markets was impacted by revenue recorded last 12 months for the Tokyo Olympic Video games preparing and not recurring this 12 months.

Telecom, Media & Technological know-how achieved € 443 million, up +.eight{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} organically, with a contrasted overall performance by geography and by exercise. Superior Tech & Technological know-how posted a powerful progress, driven by Unified Interaction & Collaboration offerings in Central Europe, sustained by organic progress of newly obtained firm Maven Wave in North The us and contract ramp-up with a substantial spouse, as effectively as supplemental sales in Southern Europe. Media elevated as effectively, benefitting from new business enterprise progress, coupled with bigger volumes with present customers in North The us. Telecom exercise was largely impacted by some ramp-downs in Southern Europe.

Earnings in Means & Products and services achieved € 418 million and elevated by +.four{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} organically. Enterprise in Strength & Utilities sector fueled the progress. In unique, the Market delivered a Superior Overall performance Computer in South The us. Electronic workplace expert services ramped-up with a key Strength supplier in North The us and with National Grid in Northern Europe. The circumstance in Retail, Transportation & Hospitality sectors was a lot more hard in the context of Covid-19. In truth, even though the ramp-up of a new IoT contract signed in the area of predictive servicing benefitted to North The us, the Market faced quantity reductions in Europe.

Healthcare & Lifestyle Sciences revenue was € 323 million, down by -four.nine{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} in contrast to Q1 2019, impacted by quantity reductions on very particular contracts in both equally North The us and Northern Europe, even though the market benefitted from the ramp-up of a worldwide contract with Bayer and a digital workplace contract signed last 12 months in Central Europe, and the ramp-up of an Australian Community Agency contract in Expanding Markets. Southern Europe benefitted from a powerful exercise in digital assignments and Superior Overall performance Computing.

 

Q1 2020 revenue overall performance by Regional Enterprise Unit

 

In € million Q1 2020 Q1 2019* Natural and organic
evolution
North The us 681 699 -two.6{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
Northern Europe 698 696 +.three{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
Southern Europe 594 609 -two.6{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
Central Europe 667 660 +1.{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
Expanding Markets 194 192 +1.{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
Full Team two,834 two,858 -.eight{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
* At continual scope and trade premiums

The initial quarter of 2020 showed different revenue evolution by Regional Enterprise Units which can be summarized as follows:

  • In North The us, revenue achieved € 681 million, decreasing by -two.6{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} organically largely coming from Covid-19 induced project stops and quantity reductions in many Industries. The Enterprise Unit attained progress in Telecom, Media & Technological know-how and Means & Products and services thanks to new logo, bigger volumes and ramp up of present contracts
  • In Northern Europe, revenue was about steady at € 698 million. Solid business enterprise was recorded in Community Sector & Protection largely led by the continuation of the HPC contract with European Centre for Medium Selection Climate Forecast, as effectively as by deliveries to European Union Institutions. Telecom, Media & Technological know-how and Manufacturing faced some contracts ending and Healthcare & Lifestyle Sciences a reduction on Enterprise Process Outsourcing contracts
  • In Southern Europe, revenue achieved € 594 million, decreasing by -two.6{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} Healthcare & Lifestyle Sciences posted a double-digit progress thanks to digital assignments delivered and Superior Overall performance Computing activities. The geography was impacted by non-recurring sales also on Superior Overall performance Computing activities executed last 12 months in many Industries
  • In Central Europe, the geography elevated organically by +1.{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} top to a € 667 million Producing benefitted from many ramp-up of infrastructure contracts and supplemental assignments. Earnings in Telecom, Media & Technological know-how also elevated, driven by Unified Interaction & Collaboration business enterprise. Healthcare & Lifestyle Sciences posted a double-digit progress largely fueled by new contracts. Community Sector & Protection was impacted by non-recurring sales and assignments attained last 12 months even though new assignments in SAP HANA and in Electronic had been executed in Germany and in Austria. Ultimately, Means & Products and services was impacted by a decreased demand from customers in Unify Interaction channels
  • Expanding Markets achieved € 194 million revenue, +1.{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} Producing posted a reliable progress, pushed by a bigger degree of sales as effectively as stronger demand from customers in digital assignments largely in Asia-Pacific and South The us. Earnings in Source & Products and services strongly elevated fueled by Superior Overall performance Computing exercise in South The us even though the circumstance was a lot more hard in Economical Products and services largely in Asia Pacific.

Q1 2020 revenue overall performance by Division

 

In € million Q1 2020 Q1 2019* Natural and organic
evolution
Infrastructure & Details Management 1,558 1,566 -.5{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
Enterprise & Platform Options 1,016 1,069 -four.nine{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
Large Details & Cybersecurity 259 223 +sixteen.three{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
Full Team two,834 two,858 -.eight{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
* At continual scope and trade premiums

In Infrastructure & Details Management (IDM), revenue was € 1,558 million, -.5{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} organically. The Division ongoing to roll-out its transformation model by extending Hybrid Cloud Orchestration as effectively as raising Electronic Office implementation.

The particular circumstance because of to Covid-19 pandemic essential a reliable business enterprise continuity for significant infrastructures for its customers. In truth, the Division recorded a powerful demand from customers on Electronic Office solutions (accessing applications from anywhere), organization interaction offerings with Unified Collaboration & Interaction, community connections, and so forth. These activities are linked to the remote doing work that has been put in spot by a lot of firms to confront the lockdown and retain their exercise.

Ultimately, in the present context, the Division recorded a lot less revenue created by machines sales and fertilization in present contracts in March.

In Enterprise & Platform Options (B&PS) revenue was € 1,016 million, -four.nine{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} organically. As a reminder, the Division was down -1.two{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} in This autumn 2019 because of to the headwinds in Economical Products and services in North The us as effectively as in Automotive market in Germany, and therefore did not hope any advancement in the starting of 2020 even before Covid-19.

In the new context of Covid-19, the Division experienced to confront a slowdown in most of the Industries. In truth, this business enterprise section is a great deal a lot more dependent from the cycle and customers started out in March to postpone discretionary assignments. The Team considers that the most impacted activities will be Technological know-how Professional Products and services demanding engineers doing work on purchaser websites, that cannot be executed on a remote mode (circa 30{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} of Enterprise & Platform Options revenue). On the reverse, Software Improvement and Maintenance, based on extensive expression contracts need to be resilient (circa forty{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} of Enterprise & Platform Options revenue). In amongst, a substantial section of significant Electronic Projects (circa 30{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} of Enterprise & Platform Options revenue) can be executed on a remote mode, but the quantity of the business enterprise will rely in the subsequent months from the purchaser requires on new assignments.

The business enterprise in Large Details & Cybersecurity (BDS) remained powerful with revenue up +sixteen.three{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} organically at € 259 million in the initial quarter of 2020. In the present context, the remote doing work as effectively as the maximize of cyberattacks led firms to boost the safety of their infrastructure and information. As examples, customers questioned for a lot more solutions of identification in brief mode, and consulting on the solidity of their safety infrastructure.

In Large Details, there was no discontinuity in the supply chain thanks to professional-lively stock administration. The demand from customers stays powerful in Superior Overall performance Computing. As an example, remote access to SAP HANA involves supplemental processing ability and therefore larger sized wants of Sequana S in-memory servers. Ultimately, Mission Crucial Program business enterprise also recorded a high revenue progress.

Professional exercise

In the course of the initial quarter of 2020, the Team order entry achieved € 2,908 million representing a Guide to Bill ratio of 103{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}, in contrast to 86{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} attained above the similar period of time last 12 months.

The key new contracts signed above the period of time had been notably in North The us with a substantial American firm in Protection Sector (Telecom, Media & Technological know-how), in Central Europe with Norddeutsche Landesbank (Economical Products and services & Insurance policy) and a worldwide european pharmaceutical firm (Wellness & Lifestyle Sciences) and in Southern Europe with a key utility in France and with Ile-de-France Mobilités (Means & Products and services), as effectively as with a French banking establishment (Economical Products and services & Insurance policy).

Contract renewals of the quarter bundled substantial signatures with notably the initial section of the renewal of Texas Office of Information Means contract (Community Sector & Protection), the renewal of Conduent contract (Telecom, Media & Technological know-how) in North The us, a contract with a World European agency in funds items for SAP HANA (Producing) in Central Europe, as effectively as with the French UGAP (Community Sector & Protection) in Southern Europe.

In line with this dynamic professional exercise, the total backlog amounted to € 22.1 billion at the conclusion of March 2020, representing 1.nine 12 months of revenue. The total experienced pipeline achieved € seven.6 billion, representing seven.eight months of revenue.

Human methods

The whole headcount was 108,602 at the conclusion of March 2020, broadly steady in contrast to 108,317 at the conclusion of December 2019.

In the initial quarter of 2020, the Team hired 5,043 employees, largely in offshore countries.

How Atos handles Covid-19 impact

Because conclusion of January, the Team administration, supported by Team Human Means, has been focusing on the health and security of personnel even though guaranteeing a suitable implementation of pre-outlined business enterprise continuity ideas in each and every Division.

The Team also activated the “Always Ready” plan, pulling jointly all Team solutions specially tailored to this distressed circumstance and currently being proactively available to customers to enable them go through the crisis: guidance to generalized homeworking which includes collaboration options, particular guidance to general public & health establishments, reinforcement of cybersecurity protections, and so forth. Customers’ comments and fulfillment with regards to Atos groups reactivity has been overwhelmingly beneficial. Atos is also concerned into many governmental assignments throughout the earth to fight towards the virus, and put together the progressive reduction of limits and lockdowns.

To shield its working margin, the Team has taken powerful steps on its charge base in the subsequent locations:

  • Solid centralized monitoring of staff costs (hiring freeze, cancellation of income improves, impact on variable payment, vacations, and so forth.)
  • Substitution of subcontractors by very own freed up employees
  • Cancellation of non purchaser connected discretionary fees
  • Solid conserving plan on non staff costs.

In whole, the Team released a plan representing a whole quantity of c. four hundred million euros of savings in 2020.

Up-to-date 2020 targets put up Covid-19

As the 2020 targets disclosed on February 19, 2020 had been pre Covid-19 outcome, the Team updates now its a few targets for the total 12 months 2020, based on the present macroeconomic state of affairs of a progressive restoration above H2 2020 and 2021, as effectively as the management’s day-to-day conversations with Team customers:

  • Earnings organic evolution: amongst -two{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} and -four{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} (vs . c. +two{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} pre Covid-19)
  • Functioning margin price: nine{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} to nine.5{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} of revenue (vs . +twenty bps to + forty bps above 2019 (ten.three{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} documented) pre Covid-19)
  • Free of charge dollars movement: € .5 billion to € .6 billion (vs . c. € .seven billion pre Covid-19)[*].

The Team suspends its targets for 2021, the last 12 months of the a few-12 months plan offered at the Trader Working day held on January 30, 2019. The Team will present its eyesight as effectively as its mid-expression targets at the 2020 Analyst Working day (day to be rescheduled).

Postponement of Yearly Typical Meeting and excellent cancellation of dividend payment in 2020

Due to the excellent conditions linked to the Covid-19, the Board of Directors, which fulfilled on March 31, 2020, has decided to postpone the Yearly Typical Meeting initially scheduled on May possibly fourteen, 2020 to June 26, 2020.

In these unprecedented conditions, in the course of its session on April 21, 2020, the Board of Directors took the excellent choice not to suggest the 1.forty euro per share dividend which was initially regarded to be submitted to the Yearly Typical Meeting. In addition, the Main Govt Officer as effectively as other customers of the Typical Management Committee have decided to decrease by 30{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} their payment in the course of the present a few-thirty day period period of time from March to May possibly 2020. The Chairman of Atos’ Board of Directors has made the similar choice.

The Team confirms that the cancellation of the dividend this 12 months is an exception to its dividend plan with a pay-out ratio amongst twenty five{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} and 30{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} of Web money Team share.

 

Appendix

Earnings at continual scope and trade premiums reconciliation

In € million Q1 2020 Q1 2019 {79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} improve
Statutory revenue two,834 two,818 +.6{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
Trade premiums outcome 26  
 
Earnings at continual trade premiums two,834 two,843 -.three{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
   
Scope outcome fourteen  
Trade premiums outcome on obtained/disposed perimeters 1  
Earnings at continual scope and trade premiums two,834 two,858 -.eight{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627}
       

Scope effects amounted to €+fourteen million for revenue and are largely connected to the acquisition of Maven Wave, consolidated as of February 1, 2020 (two months for €+eighteen million), the acquisition of IDnomic, consolidated as of October 1, 2019 (three months for €+four million), the acquisition of X-PERION, consolidated as of December 1, 2019 (three months for €+two million), the disposal of some particular Unified Interaction & Collaboration activities typically in Q1 2020 (whole restatement of €-four million) as effectively as previous ITO activities in the Uk starting of H2 2019 (three months for €-four million), and at last the disposal and decommissioning of non-strategic activities inside CVC.

Forex trade premiums effects typically came from the American greenback as effectively as the British pound and positively contributed to revenue for €+26 million.

 

Conference call

Now, Wednesday, April 22, 2020, the Team will maintain a convention call in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in order to comment on Atos’ Q1 2020 revenue and reply questions from the economic community.

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

  • on net, in the Buyers section
  • by smartphones or tablets through the scan of:
  • by telephone with the dial-in, 5-ten minutes prior the starting off time:
    • France             +33 1 70 70 07 81       code 12652364
    • Germany             +forty nine sixty nine 2222 2625       code 12652364
    • Uk             +forty four 844 481 9752       code 12652364
    • US             +1 646 741 3167         code 12652364
    • Other countries +forty four 2071 928338        code 12652364

Right after the convention, a replay of the webcast will be readily available on atos.net, in the Buyers section.

 

Forthcoming events

June 26, 2020              Yearly Typical Meeting

July 27, 2020               Very first 50 percent 2020 success

October 22, 2020         Third quarter 2020 revenue

To be scheduled            2020 Analyst Working day