Income stable at € 2,666 million
at regular forex

Purchase entry at € 2,399 million

E book to monthly bill ratio at ninety%

Digital, Cloud, Protection & Decarbonization at 52% of earnings

Internet organic and natural boost of skills by +1,five hundred

Group Transformation programs relocating at velocity

2021 objectives verified

Paris, Oct 20, 2021 – Atos, a global chief in electronic transformation, today announces the earnings of its third quarter of 2021.

In the third quarter, the Group ongoing to stabilize its earnings at regular forex, before progressing into beneficial territory. Marketplace demand post crisis remained pretty dynamic in Cloud application migration and progress and the Digital transformation of business processes by way of automation, robotisation and synthetic intelligence. In all regions, customers now need electronic remedies with the optimum benchmarks of protection, sustainability and inclusiveness, three domains in which Atos delivers exceptional technological know-how.

The Group ongoing to go after its deep and extensive business transformation approach, employing a file number of new abilities in a pretty scorching talent market place, ensuing for the 1st time in a web organic and natural boost of +1,five hundred staff. This will support fuel our expansion ambitions. In the identical vein, we strengthened our partnerships with Public Cloud hyperscalers although placing new types with substantial expansion Digital platforms.

Our transformation programs declared in July are relocating at velocity on all fronts. The German restructuring is very well underneath way. The approach to look for partners on c. 20% of the Group earnings is being executed with state-of-the-art discussions on our Unified Communications & Collaboration asset. The acquisition of a new electronic bolt-on asset has been signed. Finally, our LEAP cultural change system is ramping up.

The Group Administration wants to thank our 107,000 colleagues for their tremendous guidance for and dedication to this transformation journey, which is placing the ideal foundations for obtaining our mid-expression targets.

Q3 2021 earnings by Business

Income
In € million Q3 2021 Q3 2020* Evolution at regular forex
Production 518 469 +ten.4%
Economic Products and services & Insurance 524 512 +2.3%
Public Sector & Defense 553 628 -11.9%
Telecom, Media & Know-how 355 363 -2.%
Assets & Products and services 383 378 +1.5%
Health care & Existence Sciences 333 317 +5.1%
Complete 2,666 2,666 .%
* At regular forex

 

Income in the third quarter of 2021 achieved € 2,666 million, stable in contrast to Q3 2020 at regular forex, and lowering by -2.3% organically. The critical segments to which the Group directs its transformation – Digital, Cloud, Protection and Decarbonization – done a strong expansion although earnings was still impacted in Classic Infrastructure.

Production described a earnings of € 518 million, representing 19% of the Group earnings and growing by +ten.4% in contrast to Q3 2020 at regular forex. This was an acceleration of its restoration soon after a second quarter now expanding by +1.eight%. Each individual geography contributed to this strong expansion, driven by a repositioning of the Business on larger worth electronic initiatives and remedies to satisfy shopper requires. Extra especially, the Business improved business in application initiatives ran in Automotive and Aerospace, as very well as digitization of industrial processes like IoT based mostly good manufacturing offerings.

Economic Products and services & Insurance earnings was € 524 million in the course of the third quarter of 2021, representing 20% of the Group earnings. Escalating by +2.3% in contrast to Q3 2020 at regular forex, the Business verified its efficiency of the 1st semester, in particular in the Insurance sector although action with Banking institutions was extra contrasted. Business in this Business ongoing to be led by electronic transformation initiatives and a strong demand for cybersecurity know-how, the two covered by the offerings of the Group and the synergies with the freshly acquired corporations these types of as Eagle Creek, Digital.Protection, and Paladion.

Public Sector & Defense achieved € 553 million representing 21% of the Group earnings and lowering year-on-year at regular forex by -11.9% soon after a +thirteen.% in Q3 2020. This lower came from quantity reduction in large Substantial Functionality Computing (HPC) initiatives sent last year in most of the geographies and extra especially in Northern Europe, as very well as the last quarter of year-on-year effect from the large reduction of scope of the Texas Section of Information and facts Assets deal renewed last year.

Telecom, Media & Know-how represented thirteen% of the Group earnings and achieved € 355 million, lowering by -2.% in contrast to Q3 2020 at regular forex. Just after a beneficial second quarter, the Business experienced a extra challenging third quarter as trends had been mixed among its distinct sectors. When initiatives in the Media sector grew thanks to an improved quantity in North The united states, the problem was extra challenging in Substantial Tech & Engineering as very well as in Telecom.

Income produced by Assets & Products and services in the third quarter of 2021 achieved € 383 million representing fourteen% of the total earnings of the Group. The business managed to recover and grew by +1.5% in contrast to Q3 2020 at regular forex soon after a lower by -2.5% in the second quarter of 2021. The problem remained contrasted throughout its elements, with dynamism in Transportation & Hospitality, in particular in North The united states and Southern Europe, although the Retail and Electrical power & Utilities sectors declined due to HPC product sales not recurring this year in contrast to 2020.

Symbolizing twelve% of the Group earnings with € 333 million, Health care & Existence Sciences grew by +5.1% in the third quarter of 2021 year-on-year at regular forex led by Northern Europe, Southern Europe, and Growing Marketplaces. In individual, the Health care sector recorded a pretty strong efficiency in contrast to the third quarter of 2020, which extra than compensated the decline in Pharmaceutical.

Q3 2021 earnings by Regional Business Device

Income
In € million Q3 2021 Q3 2020* Evolution at regular forex
North The united states 617 625 -1.3%
Northern Europe 674 seven-hundred -3.eight%
Central Europe 619 631 -1.eight%
Southern Europe 556 520 +seven.%
Growing Marketplaces 201 191 +4.9%
Complete 2,666 2,666 .%
* At regular forex

 

The bulk of the Locations benefited from the rebound of the demand for Digital transformation, Cloud, and Cybersecurity in the sectors that have been impacted the most last year these types of as Production and Hospitality & Transportation. They benefited also from a fantastic momentum in Health care & Existence Sciences and Economic Products and services & Insurance. Merged with synergies initiated from the new acquisitions, the Group managed to compensate the decline in Public Sector & Defense coming from quantity reduction and some large HPCs sent last year in many geographies.

Income expansion at regular forex was strong in Southern Europe and in Growing Marketplaces.

In Southern Europe, the action was reliable in most of the Industries like Public Sector & Defense.

Growing Marketplaces ongoing on its pattern at circa +5% expansion led by the ramp-up of initiatives in Asia in Health care & Existence Sciences as very well as in Telecom, Media & Know-how in Brazil and in Production by way of quantity boost and new initiatives.

North The united states managed to create expansion at regular forex in all Industries besides Public Sector & Defense impacted by the Texas Section of Information and facts Assets deal and by Unified Communications & Collaboration activities.

Northern Europe recorded a strong action in Production with Digital Transformation initiatives as very well as in Health care & Existence Sciences. But this geography faced unfavourable foundation effect on Substantial Functionality Computing in Public Sector & Defense.

Finally, Central Europe noticeably enhanced its earnings pattern in contrast to -ten.3% in Q2 thanks to Production ramp-up of initiatives and new contracts.

Commercial action

All through the third quarter of 2021, the Group purchase entry achieved € 2,399 million representing a E book-to-Bill ratio of ninety%.

The key new contracts signed more than the period bundled notably:

  • in Production a deal with a large European Automotive supplier for the migration to S/4 Hana Cloud (Central Europe)
  • in Economic Products and services & Insurance a deal with a US global Insurer for a migration to Public Cloud combining Atos, Syntel, and Maven Wave abilities (North The united states)
  • in Public Sector & Defense a large deal with a Public authority for a Digital Transformation challenge (Northern Europe)
  • in Telecom, Media & Know-how a Digital Transformation deal embarking Cloud, Protection, and Decarbonization expert services with a European Substantial Tech chief (Northern Europe)
  • in Assets & Products and services a deal with a large European Utility for distribution community management and management combining SAP and Atos Electrical power remedies (Southern Europe) and
  • in Health care & Existence Sciences a deal with a large Health care chief for the progress of electronic tool to enhance client experience (North The united states).

Deal renewals of the quarter bundled, in Production a large European vehicle maker with an extension to guidance shopper in developing details-based mostly Cloud expert services (Southern Europe), in Economic Products and services & Insurance a big financial institution to migrate advanced details centre and apps (Growing Marketplaces), and a scope extension with a large retailer Assets & Products and services (North The united states).

Complete backlog amounted to € 23.4 billion at the conclude of September 2021, slightly down in contrast to June 2021. It represented 2.1 a long time of earnings. Full qualified pipeline achieved € seven.4 billion stable in contrast to June 2021. It represented seven.9 months of earnings.

Human means

The total headcount was 106,665 at the conclude of September 2021, an boost of +1,857, of which for the 1st time +1,485 (+1.4%) organically in purchase to guidance the quickly expanding business segments (Digital, Cloud, Protection and Decarbonization) although the Group ongoing to lower the number of workers in Infrastructure activities by way of automation and robotization.

In the third quarter of 2021, the Group employed eight,019 workers, the bulk of whom in offshore and nearshore nations around the world. Attrition LTM (Past Twelve Months) achieved 16% at the conclude of September 2021.

2021 objectives verified

The Group confirms all its objectives for 2021:

  • Income expansion at regular forex: stable
  • Running margin amount: six%
  • Free dollars stream: beneficial.

Acquisition

The Group today announces the acquisition of DataSentics, a European business established in 2016 and found in Prague. DataSentics specializes in Machine Finding out and Cloud Information engineering. The business works on unifying details science and engineering throughout Europe. It employs ninety details scientists. Its offerings will quickly complement Artificial Intelligence manufacturing unit tactic of Atos to guidance 5G and Edge offerings and accelerate critical business use scenarios in Production, Retail, and Telecommunications.

Software to look for partners to enhance Group property

As element of its transformation and to accelerate its reprofiling towards Digital, Cloud, Protection & Decarbonization, the Group declared on July 27, 2021 the start of a large system to look for partners on a quantity of business representing c. 20% of its recent earnings.

On Unified Communications & Collaboration, state-of-the-art discussions are at the moment ongoing.

On Information Centre hosting and linked activities, a official system has been launched and numerous indications of fascination have been gained.

 

Appendix

 

Income at regular scope and trade rates reconciliation

In € million Q3 2021 Q3 2020 % change
Statutory earnings 2,666 2,644 +.eight%
Exchange rates effect 22
Income at regular trade rates 2,666 2,666 .%
Scope effect sixty three
Exchange rates effect on acquired/disposed perimeters 1
Income at regular scope and trade rates 2,666 2,729 -2.3%

 

Scope outcomes amounted to €+sixty three million for earnings. They are largely related to:

  • the acquisitions shut in H2 2020 and in 2021 for €+sixty eight million and
  • the disposal of some precise Unified Communications & Collaboration activities and Wivertis GmBH in 2020, amounting for a total of €-5 million.

Currency trade amount outcomes positively contributed to earnings for €+22 million. They mostly came from the appreciation of the British Pound from the Euro more than the period.

Convention phone

Tomorrow, Thursday, Oct 21, 2021, the Group will hold a conference phone in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in purchase to comment on Atos’ Q3 2021 earnings and reply inquiries from the financial neighborhood.

You can sign up for the webcast of the conference:

  • by using the subsequent hyperlink: https://edge.media-server.com/mmc/p/9dtvfypf
  • by phone with the dial-in, ten minutes prior the starting up time. Remember to notice that if you want to sign up for the webcast by phone, you need to register in progress of the conference applying the subsequent hyperlink:

http://emea.directeventreg.com/registration/5061859

Upon registration, you will be delivered with Participant Dial In Numbers, a Direct Occasion Passcode and a exceptional Registrant ID. Simply call reminders will also be despatched by using e-mail the day prior to the celebration.

All through the ten minutes prior to the commencing of the phone, you will need to have to use the conference accessibility facts delivered in the e-mail gained on registration.

Just after the conference, a replay of the webcast will be offered on atos.web, in the Traders section.

Forthcoming gatherings

February 28, 2022 (Just after Marketplace Close) Complete Calendar year 2021 outcomes

April 27, 2022 (Ahead of Marketplace Opening) Initially Quarter 2022 earnings

May well 18, 2022 Yearly Typical Meeting

July 27, 2022 (Ahead of Marketplace Opening) Initially semester 2022 outcomes

Contacts

Trader Relations: Gilles Arditti – +33 six 11 69 81 seventy four – gilles.ar[email protected]

Media: Anette Rey – +33 six 69 seventy nine 84 88 – [email protected]

***

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About Atos

Atos is a global chief in electronic transformation with 107,000 staff and once-a-year earnings of more than € 11 billion. European number 1 in cybersecurity, cloud and substantial efficiency computing, the Group presents tailor-made conclude-to-conclude remedies for all industries in seventy one nations around the world. A pioneer in decarbonization expert services and products and solutions, Atos is dedicated to a safe and decarbonized electronic for its customers. Atos is an SE (Societas Europaea), mentioned on Euronext Paris and bundled in the CAC 40 ESG and Upcoming 20 indexes.

The objective of Atos is to support design and style the potential of the facts space. Its know-how and expert services guidance the progress of expertise, education and learning and investigation in a multicultural tactic and lead to the progress of scientific and technological excellence. Across the environment, the Group permits its customers and staff, and customers of societies at large to reside, work and build sustainably, in a secure and safe facts space.

Disclaimers

This doc has ahead-searching statements that require dangers and uncertainties, like references, concerning the Group’s expected expansion and profitability in the potential which may well noticeably affect the expected efficiency indicated in the ahead-searching statements. These dangers and uncertainties are linked to factors out of the management of the Enterprise and not exactly estimated, these types of as market place problems or competitor’s behaviors. Any ahead-searching statements created in this doc are statements about Atos’ beliefs and anticipations and should really be evaluated as these types of. Ahead-searching statements involve statements that may well relate to Atos’ plans, objectives, strategies, aims, potential gatherings, potential revenues or synergies, or efficiency, and other facts that is not historic facts. True gatherings or outcomes may well vary from those people described in this doc due to a number of dangers and uncertainties that are described inside of the 2020 Universal Registration Document filed with the Autorité des Marchés Financiers (AMF) on April seven, 2021 underneath the registration number D.21-0269 and the Modification to the 2020 Universal Registration Documents filed with the AMF on July thirty, 2021 underneath number D.21-0269-A01. Atos does not undertake, and specially disclaims, any obligation or obligation to update or amend any of the facts higher than besides as or else necessary by regulation. This doc does not incorporate or constitute an give 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.

Income organic and natural expansion is introduced at regular scope and trade rates.

Industries involve Production (Aerospace, Automotive, Chemical substances, Client Packaged Goods (Food & Beverage), Discrete Production, System Industries, Products and services and Siemens), Economic Products and services & Insurance (Insurance, Banking & Economic Products and services, and Business Transformation Products and services), Public Sector & Defense (Defense, Schooling, Extraterritorial Companies, Public Administration, Public Group Products and services and Big Occasions), Telecom, Media & Know-how (Substantial Tech & Engineering, Media, and Telecom), Assets & Products and services (Electrical power, Retail, Transportation & Hospitality, and Utilities) and Health care & Existence Sciences (Health care and Pharmaceutical).

Regional Business Models 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 like 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), Center 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), Big Occasions and Worldwide Supply Facilities.