First quarter of 2020 – Atos

A resilient profile and a sturdy balance sheet to confront an unparalleled circumstance

Earnings at € 2,834 million

-.8{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} organic expansion

Guide to invoice ratio at 103{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2}

Renewals of key contracts in North The united states

Proper business blend to assistance shoppers in Covid-19 context

Needed expense actions getting carried out to shield working margin

SPRING transformation program to an Market tactic well on monitor

Update of 2020 aims put up Covid-19

Paris, April 22, 2020,

Atos, a world-wide leader in digital transformation, right now announces the profits of its first quarter of 2020.

Elie Girard, CEO, stated: “In this unparalleled surroundings where uncertainty prevails, our first priority has been to shield our workers while providing comprehensive continuity of service to our consumers. The Team is solidly positioned to navigate efficiently by the disaster thanks to deep consumer associations across all industries, a resilient business blend and a sturdy balance sheet that supplies a sturdy fiscal flexibility.

Our a hundred and ten,000 colleagues across the globe have furnished an speedy and exceptional response to customers’ problems and want for assistance by our “Always Ready” program built previously since the starting of the year. Now our minds and initiatives are turning to the put up-Covid periods, actively planning for the “new normal” which will see an acceleration in distinct customers’ requires, specifically knowledge platforms, cybersecurity, cloud migration, digital place of work and decarbonization.

We revise right now our aims for 2020 demonstrating the resilience of the Team and the willingness to share any influence relatively across stakeholders. I am certain that Atos will emerge from this world-wide disaster more powerful than ever and ready to move ahead to the subsequent phase.”

Q1 2020 revenue was € 2,834 million, down -.8{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} organically. In the context of Covid-19 disaster and limitations and lockdowns in March in most of the countries where the Team operates, profits lowered only somewhat thanks to the resilient profile of its businesses based mostly on multi-year contracts put together with its sound business in Large Information and Cybersecurity. Also, and in spite of the disaster, the Team accelerated its professional dynamism with order entry at € 2,908 million main to a guide to invoice ratio of 103{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2}, significantly up as opposed to previous year at 86{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2}.

Q1 2020 profits functionality by Market

Producing attained € 539 million of profits, down -2.nine{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} at frequent scope and exchange prices. The Market benefitted from a good functionality in Automotive with the ramp-up of a German car firm and Rheinmetall on knowledge management contracts, compensating the influence in Daimler thanks to Covid-19 and the ramp down of PSA. Conversely, Producing was impacted by lower volumes with Siemens, a slowdown in the Aerospace sector thanks to Covid-19, and a number of shifts of tools profits toward the conclude of the quarter.

Monetary Providers & Insurance policies profits was € 527 million in the first quarter 2020, down by -2.6{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} organically. Northern Europe and Southern Europe benefited respectively from the ramp-up with Aegon in the United Kingdom, as well as the improvement of action with a payment firm in France which have additional than compensated for the reduction of volumes from banking institutions in Central Europe. Escalating markets endured from non-repeated profits executed previous year in APAC and Center East & Africa. In North The united states, task based mostly pursuits lower previously observed in previous quarters was accelerated in March thanks to selections from a number of Monetary Providers firms to postpone or reduce discretionary expenses in the context of Covid-19.

Community Sector & Protection profits was € 584 million, up +3.2{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} at frequent scope and exchange prices. The expansion was driven by the sturdy functionality recorded in Northern Europe, thanks to the continuation of the contract with European Center for Medium assortment Weather conditions forecast as well as with EU Lisa and clever knowledge platform in Benelux. North The united states accomplished stability even with lower volumes, thanks to further profits on existing contracts. The circumstance was additional difficult in Southern Europe, impacted by the ramp-down of High Functionality Computing action as well as non-repeated profits executed previous year. Central Europe was negatively impacted by lower volum
es, and last but not least Escalating Markets was impacted by profits recorded previous year for the Tokyo Olympic Online games preparing and not repeated this year.

Telecom, Media & Technological innovation attained € 443 million, up +.8{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} organically, with a contrasted functionality by geography and by action. High Tech & Technological innovation posted a sturdy expansion, driven by Unified Interaction & Collaboration choices in Central Europe, sustained by organic expansion of recently acquired firm Maven Wave in North The united states and contract ramp-up with a substantial associate, as well as further profits in Southern Europe. Media elevated as well, benefitting from new business improvement, coupled with greater volumes with existing shoppers in North The united states. Telecom action was largely impacted by some ramp-downs in Southern Europe.

Earnings in Sources & Providers attained € 418 million and elevated by +.4{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} organically. Company in Strength & Utilities sector fueled the expansion. In distinct, the Market shipped a High Functionality Laptop or computer in South The united states. Electronic place of work products and services ramped-up with a key Strength service provider in North The united states and with Nationwide Grid in Northern Europe. The circumstance in Retail, Transportation & Hospitality sectors was additional difficult in the context of Covid-19. Without a doubt, while the ramp-up of a new IoT contract signed in the region of predictive maintenance benefitted to North The united states, the Market faced volume reductions in Europe.

Health care & Lifestyle Sciences profits was € 323 million, down by -4.nine{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} as opposed to Q1 2019, impacted by volume reductions on pretty distinct contracts in both equally North The united states and Northern Europe, while the market benefitted from the ramp-up of a world-wide contract with Bayer and a digital place of work contract signed previous year in Central Europe, and the ramp-up of an Australian Community Company contract in Escalating Markets. Southern Europe benefitted from a sturdy action in digital initiatives and High Functionality Computing.

Q1 2020 profits functionality by Regional Company Unit

The first quarter of 2020 confirmed distinctive profits evolution by Regional Company Models which can be summarized as follows:

• In North The united states, profits attained € 681 million, lowering by -2.6{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} organically largely coming from Covid-19 triggered task stops and volume reductions in a number of Industries. The Company Unit accomplished expansion in Telecom, Media & Technological innovation and Sources & Providers thanks to new logo, greater volumes and ramp up of existing contracts
• In Northern Europe, profits was about stable at € 698 million. Potent business was recorded in Community Sector & Protection largely led by the continuation of the HPC contract with European Centre for Medium Range Weather conditions Forecast, as well as by deliveries to European Union Establishments. Telecom, Media & Technological innovation and Manufacturing faced some contracts ending and Health care & Lifestyle Sciences a reduction on Company Process Outsourcing contracts
• In Southern Europe, profits attained € 594 million, lowering by -2.6{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} Health care & Lifestyle Sciences posted a double-digit expansion thanks to digital initiatives shipped and High Functionality Computing pursuits. The geography was impacted by non-repeated profits also on High Functionality Computing pursuits executed previous year in a number of Industries
• In Central Europe, the geography elevated organically by +1.{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} main to a € 667 million Producing benefitted from a number of ramp-up of infrastructure contracts and further initiatives. Earnings in Telecom, Media & Technological innovation also elevated, driven by Unified Interaction & Collaboration business. Health care & Lifestyle Sciences posted a double-digit expansion largely fueled by new contracts. Community Sector & Protection was impacted by non-repeated profits and initiatives accomplished previous year while new initiatives in SAP HANA and in Electronic have been executed in Germany and in Austria. Lastly, Sources & Providers was impacted by a lower need in Unify Interaction channels
• Escalating Markets attained € 194 million profits, +1.{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} Producing posted a sound expansion, pushed by a greater level of profits as well as more powerful need in digital initiatives largely in Asia-Pacific and South The united states. Earnings in Useful resource & Providers strongly elevated fueled by High Functionality Computing action in South The united states while the circumstance was additional difficult in Monetary Providers largely in Asia Pacific.

Q1 2020 profits functionality by Division

In Infrastructure & Information Management (IDM), profits was € 1,558 million, -.5{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} organically. The Division continued to roll-out its transformation design by extending Hybrid Cloud Orchestration as well as escalating Electronic Workplace implementation.

The distinct circumstance thanks to Covid-19 pandemic required a sound business continuity for crucial infrastructures for its shoppers. Without a doubt, the Division recorded a sturdy need on Electronic Workplace remedies (accessing applications from everywhere), business interaction choices with Unified Collaboration & Interaction, community connections, etc. These pursuits are connected to the distant operating that has been place in place by a large amount of organizations to confront the lockdown and preserve their action.

Lastly, in the latest context, the Division recorded fewer profits generated by tools profits and fertilization in existing contracts in March.

In Company & System Remedies (B&PS) profits was € 1,016 million, -4.nine{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} organically. As a reminder, the Division was down -1.2{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} in This fall 2019 thanks to the headwinds in Monetary Providers in North The united states as well as in Automotive market in Germany, and for that reason did not count on any improvement in the starting of 2020 even just before Covid-19.

In the new context of Covid-19, the Division had to confront a slowdown in most of the Industries. Without a doubt, this business phase is much additional dependent from the cycle and shoppers started off in March to postpone discretionary initiatives. The Team considers that the most impacted pursuits will be Technological innovation Qualified Providers demanding engineers operating on shopper websites, that can not be executed on a distant method (circa 30{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} of Company & System Remedies profits). On the opposite, Application Progress and Servicing, based mostly on extensive expression contracts ought to be resilient (circa forty{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} of Company & System Remedies profits). In among, a substantial element of crucial Electronic Initiatives (circa 30{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} of Company & System Remedies profits) can be executed on a distant method, but the volume of the business will depend in the subsequent months from the shopper requires on new initiatives.

The business in Large Information & Cybersecurity (BDS) remained sturdy with profits up +16.3{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} organically at € 259 million in the first quarter of 2020. In the latest context, the distant operating as well as the raise of cyberattacks led organizations to fortify the protection of their infrastructure and knowledge. As examples, shoppers asked for additional remedies of identification in quick method, and consulting on the solidity of their protection infrastructure.

In Large Information, there was no discontinuity in the provide chain thanks to professional-lively inventory management. The need stays sturdy in High Functionality Computing. As an example, distant obtain to SAP HANA demands further processing power and for that reason more substantial requires of Sequana S in-memory servers. Lastly, Mission Significant Process business also recorded a large profits expansion.

Business action

During the first quarter of 2020, the Team order entry attained € 2,908 million symbolizing a Guide to Bill ratio of 103{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2}, as opposed to 86{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} accomplished about the exact period previous year.

The primary new contracts signed about the period have been notably in North The united states with a substantial American firm in Protection Sector (Telecom, Media & Technological innovation), in Central Europe with Norddeutsche Landesbank (Monetary Providers & Insurance policies) and a world-wide european pharmaceutical firm (Wellbeing & Lifestyle Sciences) and in Southern Europe with a key utility in France and with Ile-de-France Mobilités (Sources & Providers), as well as with a French banking establishment (Monetary Providers & Insurance policies).

Agreement renewals of the quarter provided substantial signatures with notably the first element of the renewal of Texas Office of Facts Sources contract (Community Sector & Protection), the renewal of Conduent contract (Telecom, Media & Technological innovation) in North The united states, a contract with a World European company in money items for SAP HANA (Producing) in Central Europe, as well as with the French UGAP (Community Sector & Protection) in Southern Europe.

In line with this dynamic professional action, the comprehensive backlog amounted to € 22.1 billion at the conclude of March 2020, symbolizing 1.nine year of profits. The comprehensive experienced pipeline attained € 7.6 billion, symbolizing 7.8 months of profits.

Human methods

The complete headcount was 108,602 at the conclude of March 2020, broadly stable as opposed to 108,317 at the conclude of December 2019.

In the first quarter of 2020, the Team hired 5,043 staff, largely in offshore countries.

How Atos handles Covid-19 influence

Since conclude of January, the Team management, supported by Team Human Sources, has been focusing on the overall health and security of workers while making certain a appropriate implementation of pre-outlined business continuity ideas in each and every Division.

The Team also activated the “Always Ready” program, pulling collectively all Team remedies specifically tailored to this distressed circumstance and getting proactively supplied to shoppers to help them go by the disaster: assistance to generalized homeworking together with collaboration functions, distinct assistance to community & overall health institutions, reinforcement of cybersecurity protections, etc. Customers’ responses and gratification with regards to Atos groups reactivity has been overwhelmingly favourable. Atos is also involved into lots of gov
ernmental initiatives across the globe to combat towards the virus, and get ready the progressive aid of limitations and lockdowns.

To shield its working margin, the Team has taken sturdy actions on its expense base in the next areas:

• Potent centralized checking of staff charges (employing freeze, cancellation of income improves, influence on variable payment, holidays, etc.)
• Alternative of subcontractors by individual freed up staff
• Cancellation of non shopper similar discretionary expenses
• Potent saving program on non staff charges.

In complete, the Team released a program symbolizing a complete quantity of c. 400 million euros of personal savings in 2020.

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

As the 2020 aims disclosed on February 19, 2020 have been pre Covid-19 result, the Team updates right now its a few aims for the comprehensive year 2020, based mostly on the latest macroeconomic scenario of a progressive restoration about H2 2020 and 2021, as well as the management’s every day discussions with Team shoppers:

• Earnings organic evolution: among -2{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} and -4{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} (versus c. +2{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} pre Covid-19)
• Functioning margin charge: nine{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} to nine.5{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} of profits (versus +20 bps to + forty bps earlier mentioned 2019 (10.3{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} described) pre Covid-19)
• Cost-free income flow: € .5 billion to € .6 billion (versus c. € .7 billion pre Covid-19)[*].

The Team suspends its targets for 2021, the previous year of the a few-year program presented at the Trader Day held on January 30, 2019. The Team will current its vision as well as its mid-expression targets at the 2020 Analyst Day (day to be rescheduled).

Postponement of Yearly Common Meeting and extraordinary cancellation of dividend payment in 2020

Due to the extraordinary circumstances connected to the Covid-19, the Board of Administrators, which met on March 31, 2020, has made the decision to postpone the Yearly Common Meeting at first scheduled on May perhaps 14, 2020 to June 26, 2020.

In these unparalleled circumstances, throughout its session on April 21, 2020, the Board of Administrators took the extraordinary final decision not to suggest the 1.forty euro per share dividend which was at first regarded to be submitted to the Yearly Common Meeting. In addition, the Main Executive Officer as well as other customers of the Common Management Committee have made the decision to reduce by 30{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} their payment throughout the latest a few-month period from March to May perhaps 2020. The Chairman of Atos’ Board of Administrators has produced the exact final decision.

The Team confirms that the cancellation of the dividend this year is an exception to its dividend policy with a shell out-out ratio among 25{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} and 30{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} of Web money Team share.

Appendix

Earnings at frequent scope and exchange prices reconciliation

Scope results amounted to €+14 million for profits and are largely similar to the acquisition of Maven Wave, consolidated as of February 1, 2020 (2 months for €+eighteen million), the acquisition of IDnomic, consolidated as of October 1, 2019 (3 months for €+4 million), the acquisition of X-PERION, consolidated as of December 1, 2019 (3 months for €+2 million), the disposal of some distinct Unified Interaction & Collaboration pursuits generally in Q1 2020 (complete restatement of €-4 million) as well as former ITO pursuits in the United kingdom starting of H2 2019 (3 months for €-4 million), and last but not least the disposal and decommissioning of non-strategic pursuits in CVC.

Forex exchange prices results generally came from the American dollar as well as the British pound and positively contributed to profits for €+26 million.

Meeting connect with

Right now, Wednesday, April 22, 2020, the Team will hold a convention connect with in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in order to comment on Atos’ Q1 2020 profits and respond to issues from the fiscal group.

You can join the webcast of the convention:

• on net, in the Investors section
• by smartphones or tablets by the scan of:
• by telephone with the dial-in, 5-10 minutes prior the starting time:
  • France             +33 1 70 70 07 81       code 12652364
  • Germany             +forty nine 69 2222 2625       code 12652364
  • United kingdom             +forty four 844 481 9752       code 12652364
  • US             +1 646 741 3167         code 12652364
  • Other countries +forty four 2071 928338        code 12652364

Following the convention, a replay of the webcast will be obtainable on atos.net, in the Investors section.

Forthcoming functions

June 26, 2020              Yearly Common Meeting

July 27, 2020               Initial 50 percent 2020 success

October 22, 2020         Third quarter 2020 profits

To be scheduled            2020 Analyst Day