Adjustment of Once-a-year Objectives
Confirmation of Mid-phrase Targets
Paris, July 12, 2021
Referring to EU regulation No. 596/2014, which offers that issuers shall inform the community as shortly as feasible of within information directly pertinent to them, Atos announces the adjustment of its 2021 once-a-year objectives. The initial semester figures are not finalized nor audited, the specific initial semester accounts will be published as planned on July 28, 2021.
During the next quarter, revenue development at continuous currency came back again to security. Nevertheless, natural and organic development remained negative at c. -one.five{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} thanks to an accelerated decline of legacy infrastructure business enterprise in a context of a considerably more robust demand from customers for article-COVID cloud migration. The Team anticipates that this business enterprise shift will persist through the next semester. The other Team firms benefitted from the financial recovery driving a booming digital demand from customers. In this context, the Team adjusts its goal of revenue development at continuous currency for the comprehensive calendar year to steady.
Even though for this calendar year the Team had expected a higher seasonality between the initial and next semester, operating margin was decrease than expected in the initial semester at c. five.five{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2}. Taking into consideration the revenue adjustment in excess of the comprehensive calendar year, impacting legacy actions with a small shorter phrase cost versatility, the Team adjusts its operating margin goal to c. six.{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} for the comprehensive calendar year. As a consequence of this unprecedented impact on the business enterprise, numerous outstanding things (generate-off of assets, decline provisions) have been booked below “Other Working Income and Expenses”. This line amounted to a complete of c. €-one hundred sixty million in the initial semester.
During the initial semester, free of charge funds move amounted to c. €-364 million in contrast to €-172 million through 2020 initial semester. Absolutely free funds move was mostly impacted by operating funds and in unique by a reduction in funds in advance from customers. Shifting ahead, the Team decides to decrease funds in advance from customers. The modified goal for 2021 is a positive free of charge funds move, to replicate the impacts from the operating margin goal reduction, and operating funds, far more precisely on consumer advance payments. The new goal also assumes the whole a person-off € a hundred and eighty million funds outflow in 2021 for the German turnaround strategy (see down below).
Transformation agenda and mid-phrase targets
In this context, the Team has resolved to accelerate its transformation -both equally organically and inorganically- by expanding its achievements in, and concentrating on, Electronic, Cloud, Security, and Decarbonization.
In unique, the strategic portfolio evaluation of non-main assets is being finalized and the Team will connect on its conclusions on July 28, 2021, so as to transfer to execution swiftly.
Negotiations with social associates relating to the necessary turnaround of the German infrastructure business enterprise have concluded to a restructuring strategy of c. one,three hundred individuals, supplying an supplemental one{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} operating margin at Team degree mid-phrase. The strategy will be specific on July 28, 2021.
After a calendar year of changeover in 2021, the Team expects to boost on all its KPIs in 2022 and maintains its mid phrase targets of revenue development at continuous currency from +five{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} to +7{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2}, operating margin charge from 11{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} to 12{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} and free of charge funds move conversion previously mentioned 60{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2}.
North The usa Audit Stick to up
Relating to the audit of the US lawful entities, the Team resolved in April this calendar year to conduct a comprehensive accounting evaluation of those entities as of December 31, 2020, supported by exterior advisors.
This function is being finalized and at this stage misstatements recognized are not materials. The auditors’ function is also ongoing as part of their 50 percent calendar year evaluation.
The completion of this approach is specific to be achieved at the time of H1 release on July 28, 2021.
Other than, the remediation and avoidance strategy has been finalized and is being rolled out.
Appendix
| Altered Objectives
(July 12, 2021) |
Original Objectives
(February 18, 2021) |
|
| Revenue development at continuous currency | Secure | +three.five{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} to +4.{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} |
| {312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} Working Margin to revenue | c. six.{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} | nine.4{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} to nine.8{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} |
| Absolutely free Funds Movement | Optimistic | €550 to €600 million |
The Administration of Atos invitations you to an worldwide conference phone, on Monday, July 12, 2021 at 08:00 am (CET – Paris).
You can join the webcast of the conference:
- by using the subsequent backlink: https://edge.media-server.com/mmc/p/cvgjqzz9
- by telephone with the dial-in, 10 minutes prior the setting up time. Remember to notice that if you want to join the webcast by telephone, you have to sign-up in advance of the conference using the subsequent backlink: http://emea.directeventreg.com/registration/9249267
On registration, you will be furnished with Participant Dial In Quantities, a Immediate Event Passcode and a exceptional Registrant ID. During the 10 minutes prior to the starting of the phone, you will have to have to use the conference accessibility information furnished in the e mail obtained on registration.
After the conference, a replay of the webcast will be available on atos.net, in the Traders section.
The press release will be issued on Monday, July 12, 2021 at 07:30 am (CET – Paris).
Forthcoming functions
July 28, 2021 Initial semester 2021 success
October 21, 2021 3rd quarter 2021 revenue
Obtain the press release in pdf
Contacts
Trader Relations:
Gilles Arditti – +33 six 11 sixty nine eighty one 74 – [email protected]
Media:
Anette Rey – +33 six sixty nine seventy nine eighty four 88 – [email protected]
About Atos
Atos is a international leader in digital transformation with one zero five,000 staff and once-a-year revenue of in excess of € 11 billion. European number a person in cybersecurity, cloud and superior functionality computing, the Team offers customized conclusion-to-conclusion remedies for all industries in seventy one international locations. A pioneer in decarbonization companies and items, Atos is committed to a secure and decarbonized digital for its shoppers. Atos operates below the makes Atos and Atos|Syntel. Atos is a SE (Societas Europaea), outlined on the CAC40 Paris inventory index.
The reason of Atos is to aid design and style the foreseeable future of the information area. Its experience and companies assistance the progress of know-how, training and research in a multicultural solution and lead to the progress of scientific and technological excellence. Throughout the entire world, the Team allows its customers and staff, and users of societies at big to live, function and create sustainably, in a protected and secure information area.
Disclaimers
This doc incorporates ahead-seeking statements that entail challenges and uncertainties, like references, relating to the Group’s expected development and profitability in the foreseeable future which may appreciably impact the expected functionality indicated in the ahead-seeking statements. These challenges and uncertainties are connected to aspects out of the control of the Organization and not exactly approximated, such as marketplace situations or opponents behaviors. Any ahead-seeking statements created in this doc are statements about Atos’ beliefs and anticipations and really should be evaluated as such. Ahead-seeking statements include things like statements that may relate to Atos’ strategies, objectives, strategies, objectives, foreseeable future functions, foreseeable future revenues or synergies, or functionality, and other information that is not historical information. Precise functions or success may differ from those explained in this doc thanks to a number of challenges and uncertainties that are explained in the 2020 Common Registration Doc submitted with the Autorité des Marchés Financiers (AMF) on April 7, 2021 below the registration number D.21-0269. Atos does not undertake, and precisely disclaims, any obligation or responsibility to update or amend any of the information previously mentioned except as normally required by regulation. This doc does not consist of or constitute an give of Atos’ shares for sale or an invitation or inducement to commit in Atos’ shares in France, the United States of The usa or any other jurisdiction.
Atos consolidated and statutory economic statements for the calendar year finished December 31, 2020, were being approved by the Board of Administrators on February 17, 2021. Following their audit methods on the consolidated economic statements for the calendar year finished December 31, 2020, the statutory auditors issued on April one, 2021 a qualified opinion thanks to a limitation on the scope of the audit as two US lawful entities representing 11{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} of 2020 consolidated revenue that involve supplemental diligences. For the sake of clarity, except for the qualification involved in the statutory auditors’ report on the consolidated economic statements for the calendar year finished December 31, 2020, the Team consolidated economic statements are audited and the economic statements involved in the Common Registration Doc are unchanged in contrast to the variation published by the Organization on February 18, 2021. As of today, the Team has not recognized misstatements on the two US entities that are materials for the consolidated economic statements.
Revenue natural and organic development is offered at continuous scope and exchange fees.
Industries include things like Manufacturing (Aerospace, Automotive, Chemicals, Purchaser Packaged Products (Foods & Beverage), Discrete Manufacturing, Procedure Industries, Providers and Siemens), Money Providers & Coverage (Coverage, Banking & Money Providers, and Small business Transformation Providers), Community Sector & Protection (Protection, Education, Extraterritorial Businesses, Community Administration, Community Neighborhood Providers and Major Situations), Telecom, Media & Technological innovation (Significant Tech & Engineering, Media, and Telecom), Means & Providers (Power, Retail, Transportation & Hospitality, and Utilities) and Health care & Life Sciences (Health care and Pharmaceutical).
Regional Small business Units include things like North The usa (United states of america, 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 Expanding Markets like Asia-Pacific (Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand), South The usa (Argentina, Brazil, Chile, Colombia, Uruguay, and Peru), Middle 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), Major Situations and Global Supply Centers.