Adjustment of Annual Aims
Affirmation of Mid-expression Targets

 

Paris, July twelve, 2021

Referring to EU regulation No. 596/2014, which offers that issuers shall tell the public as shortly as possible of within data directly pertinent to them, Atos announces the adjustment of its 2021 annual aims. The 1st semester figures are not finalized nor audited, the specific 1st semester accounts will be released as planned on July 28, 2021.

For the duration of the next quarter, profits growth at frequent forex came again to balance. Having said that, natural growth remained adverse at c. -one.5% owing to an accelerated decline of legacy infrastructure organization in a context of a a great deal much better need for put up-COVID cloud migration. The Team anticipates that this organization shift will persist all through the next semester. The other Team organizations benefitted from the financial restoration driving a booming digital need. In this context, the Team adjusts its objective of profits growth at frequent forex for the whole yr to stable.

Despite the fact that for this yr the Team experienced predicted a increased seasonality among the 1st and next semester, operating margin was lower than anticipated in the 1st semester at c. 5.5%. Thinking about the profits adjustment around the whole yr, impacting legacy things to do with a low small expression price tag adaptability, the Team adjusts its operating margin objective to c. six.% for the whole yr. As a consequence of this unparalleled effect on the organization, several outstanding merchandise (publish-off of assets, decline provisions) have been booked less than “Other Functioning Revenue and Expenses”. This line amounted to a total of c. €-a hundred and sixty million in the 1st semester.

For the duration of the 1st semester, absolutely free funds move amounted to c. €-364 million in comparison to €-172 million all through 2020 1st semester. No cost funds move was largely impacted by working cash and in distinct by a reduction in funds in advance from clients. Shifting ahead, the Team decides to decrease funds in advance from clients. The modified objective for 2021 is a constructive absolutely free funds move, to mirror the impacts from the operating margin objective reduction, and working cash, far more especially on customer advance payments. The new objective also assumes the whole a person-off € 180 million funds outflow in 2021 for the German turnaround plan (see beneath).

Transformation agenda and mid-expression targets

In this context, the Team has made a decision to accelerate its transformation -both of those organically and inorganically- by increasing its achievements in, and focusing on, Digital, Cloud, Safety, and Decarbonization.

In distinct, the strategic portfolio evaluation of non-main assets is being finalized and the Team will talk on its conclusions on July 28, 2021, so as to move to execution quickly.

Negotiations with social associates concerning the needed turnaround of the German infrastructure organization have concluded to a restructuring plan of c. one,three hundred individuals, providing an more one% operating margin at Team stage mid-expression. The plan will be specific on July 28, 2021.

Following a yr of changeover in 2021, the Team expects to increase on all its KPIs in 2022 and maintains its mid expression targets of profits growth at frequent forex from +5% to +seven%, operating margin price from eleven% to twelve% and absolutely free funds move conversion over 60%.

North America Audit Observe up

Relating to the audit of the US legal entities, the Team made a decision in April this yr to accomplish a whole accounting evaluation of individuals entities as of December 31, 2020, supported by exterior advisors.

This function is being finalized and at this stage misstatements discovered are not product. The auditors’ function is also ongoing as portion of their 50 percent yr evaluation.

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

Aside from, the remediation and avoidance plan has been finalized and is being rolled out.

Appendix

 

Adjusted Aims

(July twelve, 2021)

Original Aims

(February eighteen, 2021)

Profits growth at frequent forex Steady +3.5% to +4.%
% Functioning Margin to profits c. six.% 9.4% to 9.eight%
No cost Money Movement Optimistic €550 to €600 million

 

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

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

  • via the following url: https://edge.media-server.com/mmc/p/cvgjqzz9
  • by phone with the dial-in, ten minutes prior the setting up time. Remember to be aware that if you want to be a part of the webcast by phone, you will have to register in advance of the convention working with the following url: http://emea.directeventreg.com/registration/9249267
    On registration, you will be delivered with Participant Dial In Quantities, a Immediate Event Passcode and a unique Registrant ID. For the duration of the ten minutes prior to the starting of the contact, you will will need to use the convention obtain data delivered in the email received upon registration.

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

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

 

Forthcoming situations

July 28, 2021               First semester 2021 benefits

October 21, 2021         Third quarter 2021 profits

Down load the push release in pdf 

Contacts

Investor Relations:

Gilles Arditti – +33 six eleven 69 81 seventy four –  [email protected]

Media:

Anette Rey –  +33 six 69 79 84 88 – [email protected]

About Atos

Atos is a world wide chief in digital transformation with 105,000 workers and annual profits of around € eleven billion. European selection a person in cybersecurity, cloud and large functionality computing, the Team offers tailored close-to-close alternatives for all industries in seventy one international locations. A pioneer in decarbonization companies and merchandise, Atos is dedicated to a protected and decarbonized digital for its consumers. Atos operates less than the makes Atos and Atos|Syntel. Atos is a SE (Societas Europaea), stated on the CAC40 Paris inventory index.

The reason of Atos is to aid design the long term of the data house. Its expertise and companies aid the progress of awareness, instruction and study in a multicultural tactic and lead to the progress of scientific and technological excellence. Across the environment, the Team permits its clients and workers, and customers of societies at significant to reside, function and acquire sustainably, in a secure and protected data house.

Disclaimers

This doc consists of ahead-hunting statements that entail pitfalls and uncertainties, like references, regarding the Group’s anticipated growth and profitability in the long term which may significantly effect the anticipated functionality indicated in the ahead-hunting statements. These pitfalls and uncertainties are linked to things out of the regulate of the Enterprise and not specifically approximated, these as industry conditions or rivals behaviors. Any ahead-hunting statements built in this doc are statements about Atos’ beliefs and anticipations and should be evaluated as these. Forward-hunting statements involve statements that may relate to Atos’ ideas, aims, techniques, targets, long term situations, long term revenues or synergies, or functionality, and other data that is not historical data. Precise situations or benefits may differ from individuals explained in this doc owing to a selection of pitfalls and uncertainties that are explained in the 2020 Universal Registration Doc filed with the Autorité des Marchés Financiers (AMF) on April seven, 2021 less than the registration selection D.21-0269. Atos does not undertake, and especially disclaims, any obligation or responsibility to update or amend any of the data over besides as normally demanded by regulation. This doc does not contain or represent an supply of Atos’ shares for sale or an invitation or inducement to devote in Atos’ shares in France, the United States of America or any other jurisdiction.

Atos consolidated and statutory financial statements for the yr finished December 31, 2020, ended up accredited by the Board of Administrators on February seventeen, 2021. Adhering to their audit techniques on the consolidated financial statements for the yr finished December 31, 2020, the statutory auditors issued on April one, 2021 a competent feeling owing to a limitation on the scope of the audit as two US legal entities symbolizing eleven% of 2020 consolidated profits that have to have more diligences. For the sake of clarity, besides for the qualification provided in the statutory auditors’ report on the consolidated financial statements for the yr finished December 31, 2020, the Team consolidated financial statements are audited and the financial statements provided in the Universal Registration Doc are unchanged in comparison to the variation released by the Enterprise on February eighteen, 2021. As of currently, the Team has not discovered misstatements on the two US entities that are product for the consolidated financial statements.

Profits natural growth is offered at frequent scope and trade fees.

Industries involve Production (Aerospace, Automotive, Chemicals, Buyer Packaged Goods (Food stuff & Beverage), Discrete Production, Course of action Industries, Providers and Siemens), Monetary Providers & Coverage (Coverage, Banking & Monetary Providers, and Business enterprise Transformation Providers), Community Sector & Defense (Defense, Education, Extraterritorial Businesses, Community Administration, Community Community Providers and Key Events), Telecom, Media & Technologies (Higher Tech & Engineering, Media, and Telecom), Means & Providers (Power, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Daily life Sciences (Healthcare and Pharmaceutical).

Regional Business enterprise Models involve 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 Markets like 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), Key Events and World Delivery Facilities.