First quarter of 2021 – Atos

Get entry at € 2,596 million

E book to invoice ratio at 96%

Profits at € 2,692 million

-1.9% at continuous currency

-three.9% natural evolution

Digital, Cloud, Protection & Decarbonization at fifty one% of profits (forty six% in 2020)

Ongoing solid expansion in Cybersecurity and Large Knowledge

three bolt-on acquisitions accelerating Team transformation

2021 objectives confirmed

Paris, April twenty, 2021

Atos, a international leader in electronic transformation, right now announces the profits of its first quarter of 2021.

Elie Girard, Atos CEO, mentioned: “After a report year in 2020, commercial dynamism remained reliable in the first quarter of the year with a e-book-to-invoice ratio of 96%, and a pipeline of offerings +14% above a year in the past. Even though the Group’s profits diminished for the last quarter thanks to the effects of Covid, down -1.9% at continuous currency as opposed to the past year, our enterprise profile has produced development in the direction of Digital, Cloud, Protection, and Decarbonization with now fifty one% of Team profits shipped in people strategic segments.

This enterprise repositioning is the result of, first, our Spring transformation, and 2nd, our method of bolt-on acquisitions. In that vein, I am delighted to announce right now a few new acquisitions in the fields of Digital Producing and Product Lifecycle Administration (PLM), Cryptography and Cybersecurity, and Edge and Computer system Eyesight. In get to accelerate the alter of our enterprise mix, the Team will activate a 3rd dimension and initiate a strategic portfolio overview of non-main belongings.

We confirm the objectives for the comprehensive year 2021 issued on February 18. In addition, the Team has resolved to interact into important steps of inside transformation, aiming at enriching the company’s electronic competencies and human cash, reinforcing accountability, as nicely as utilizing cultural changes in comprehensive consistency with our “raison d’être”.

I am thankful to all my Atos colleagues for embarking on this transformation journey with so a great deal electricity and enthusiasm.”

 

2021 Targets

The Team confirms right now its objectives for its three crucial economic requirements, as mentioned on February 18, 2021:

  • Profits expansion at continuous currency: +three.five% to +4.%
  • Running margin amount: +40 to 80bps vs . 2020
  • Free cash flow: €550m to €600m

 

Q1 2021 profits by Market

In € million Q1 2021 Q1 2020* Evolution at continuous currency
Producing 488 522 -six.seven%
Money Products and services & Insurance plan 544 506 +seven.4%
Public Sector & Protection 579 599 -three.2%
Telecom, Media & Technology 373 393 -five.%
Assets & Products and services 395 421 -six.2%
Healthcare & Lifestyle Sciences 313 303 +three.4%
Complete 2,692 2,744 -1.9%
* At continuous currency

 

Profits in the first quarter of 2021 attained € 2,692 million, -1.9% as opposed to Q1 2020 at continuous currency, -three.9% organically.

Covid-19 was still impacting Atos enterprise about the quarter irrespective of very good resilience in Money Products and services & Insurance plan and in Healthcare & Lifestyle Sciences, as nicely as in Northern Europe, in Increasing Marketplaces and in Southern Europe which is demonstrating an encouraging restoration.

With 18% of the Team profits, Producing reported a profits of € 488 million, symbolizing a minimize by -six.seven% as opposed to Q1 2020 at continuous currency. The major and most important tough situation was the reduction of volumes in Germany, even though the situation tended to stabilize as opposed to previous quarters in other geographies.

Money Products and services & Insurance plan profits was € 544 million, symbolizing twenty% of the Team profits. The Market grew by +seven.4% at continuous currency as opposed to Q1 2020. The action elevated in most of the geographies and was predominantly pushed by enterprise transformation jobs in Northern Europe and new electronic banking jobs in Increasing Marketplaces.

Public Sector & Protection profits was € 579 million symbolizing 22% of the Team profits, down -three.2% at continuous currency. The minimize was primarly thanks to substantial Large Knowledge venture delays to subsequent quarters as nicely as quantity reduction in North America.

Telecom, Media & Technology represented 14% of the Team profits and attained € 373 million, a drop of -five.% at continuous currency as opposed to Q1 2020, with a contrasted effectiveness by geography. Even though a massive throughout the world agreement with a international technological know-how firm commenced to generate a optimistic contribution to the Market, effectiveness was impacted by the base consequences of some massive specials done in 2020 and not recurring in 2021.

Profits created by Assets & Products and services in the first quarter of 2021 attained € 395 million symbolizing fifteen% of the Team profits. The Market diminished by -six.2% at continuous currency as opposed to Q1 2020 with really distinct trends throughout its factors. Even though a solid effectiveness was reported with Utilities consumers, the Market remained impacted by the tough situation with consumers running in Transportation and Hospitality in which the demand carries on to be impacted by Covid-19.

Healthcare & Lifestyle Sciences profits was € 313 million, up by +three.4% as opposed to Q1 2020 at continuous currency and symbolizing twelve% of the Team profits. The Market grew in most geographies, notably in Northern Europe and in Central Europe, with only the exception of North America which did not reiterate in 2021 some massive jobs shipped in Q1 2020.

 

Q1 2021 profits by Regional Company Unit

In € million Q1 2021 Q1 2020* Evolution at continuous currency
North America 564 622 -9.4%
Northern Europe 730 688 +six.2%
Central Europe 609 666 -8.five%
Southern Europe 607 596 +1.9%
Increasing Marketplaces 181 172 +five.1%
Complete 2,692 2,744 -1.9%
* At continuous currency

 

Profits in North America attained € 564 million, decreasing by -9.4% at continuous currency. The evolution was impacted by the timing of Covid last year hitting North America later on than Europe, quantity reduction in Public Sector and 1 time gross sales in Q1 2020, which could not be recurring. In addition some jobs were being postponed from Q1 2021 to subsequent quarters. This could not be compensated by the starting of the ramp-up of new contracts in the Cloud and Digital transformation as nicely as Cybersecurity areas.

Profits in Northern Europe was € 730 million, raising by +six.2% at continuous currency. Strong enterprise expansion was recorded in Telecom, Media & Technology as nicely as in Money Products and services & Insurance plan and Healthcare & Lifestyle Sciences. At the same time challenges were being faced by Public Sector & Protection as nicely as Assets & Products and services. Producing remained stable as opposed to last year.

Central Europe reported € 609 million of profits, down -8.five% at continuous currency. This predominantly resulted from a still tough situation in the Unified Communications & Collaboration and also in Producing. Many thanks to the ramp-up of several new contracts, Healthcare & Lifestyle Sciences, Assets & Products and services and Public Sector & Protection recorded expansion, Money Products and services & Insurance plan remained nearly flat irrespective of some new jobs with massive German banking institutions.

Profits in Southern Europe attained € 607 million, raising by +1.9% as opposed to Q1 2020 at continuous currency. The expansion of the enterprise was predominantly led by the very good effectiveness of Public Sector & Protection. Expansion was also recorded in Money Products and services & Insurance plan, Assets & Products and services and Healthcare & Lifestyle Sciences. The situation remained tough in Telecom, Media & Technology and to a lesser extent in Producing.

Profits attained € 181 million in Increasing Marketplaces, up +five.1% at continuous currency. In most of the Industries the action was more powerful with new jobs shipped a lot more specially in Money Products and services & Insurance plan.

 

Professional action

In the course of the first quarter of 2021, the Team get entry attained € 2,596 million symbolizing a E book-to-Invoice ratio of 96%, as opposed to 101% (at continuous currency) reached about the same time period last year.

The most important new contracts signed about the time period were being notably in Northern Europe with a massive Chemical client (Producing) and a European telco leader (Telecom, Media & Technology), in Southern Europe with Pierre Fabre and a European leader in Pharmaceuticals (Healthcare & Lifestyle Sciences), a foremost multi-countrywide automotive company (Producing) and several contracts with Transportation consumers (Assets & Products and services), and in Central Europe with a massive European lender (Money Products and services & Insurance plan) and Bundesagentur für Arbeit (Public Sector & Protection).

Contract renewals of the quarter incorporated notably a foremost company in optical devices and a massive beverage firm in Central Europe (Producing), several Public Sector contracts in Southern Europe, and a Telecommunications firm in Increasing markets.

In line with this dynamic commercial action, the comprehensive backlog amounted to € 23.2 billion at the conclusion of March 2021, +8% as opposed to March 2020 at continuous currency. It represented 2.1 a long time of profits. The comprehensive competent pipeline attained € 8.4 billion, +14% as opposed to March 2020 at continuous currency. It represented 9 months of profits.

 

Human means

The total headcount was 104,485 at the conclusion of March 2021, stable as opposed to 104,430 at the conclusion of December 2020.

In the first quarter of 2021, the Team hired 4,215 team, the the vast majority of whom in offshore and nearshore international locations.

 

Acquisitions

In line with its mid-term plan, the Team announces right now the signature of three bolt-on acquisitions. All of them belong to the strategic places defined by the Team to accelerate its enterprise mix alter:

  • Digital, as a result of the acquisition of Processia, a specialist of Product Lifecycle Administration (PLM)
  • Protection, as a result of the acquisition of cryptovision, specialized in Cryptography answers and items
  • Large Knowledge and Analytics, as a result of the acquisition of Ipsotek, a leader in Edge and Computer system Eyesight answers.

 

North America Audit Adhere to-up

The Firm produced a statement on April 1, 2021 regarding several matters similar to two US authorized entities. As a reminder, the statutory auditors determined, as part of their 2020 audit, inside regulate weaknesses about the economic reporting procedure and profits recognition in accordance with IFRS fifteen foremost to several accounting errors, as nicely as probable threat of override of controls in this regard.

The two US authorized entities characterize eleven% of 2020 Team profits, they are not similar to Syntel.

Despite the supplemental audit strategies carried out by the statutory auditors in people instances, they were being not equipped to complete within just the timeframe the needed do the job to get hold of ample ideal audit evidence in regard of profits recognition or other similar account balances of these two US entities and on the absence of product misstatements for the consolidated economic statements. As a result, the statutory auditors issued a competent opinion thanks to a limitation of scope on the consolidated economic statements for the year 2020.

As of right now the Team has not determined product misstatements for the 2020 consolidated economic statements. Nonetheless, the conjunction of several accounting errors and inside regulate weaknesses warrants a major focus and observe-up by the Team. For that reason, the Firm has resolved to conduct a comprehensive accounting overview of the two US authorized entities and will give a status update at the time of H1 benefits.

A solid remediation and prevention plan has been made less than the leadership of the Team Normal Secretary and is being applied. It handles places these kinds of as preventive controls, tips and documentation, Human Assets overview, skilling and organization as nicely as recognition and schooling. Complementary assessment is ongoing to be certain that the plan is exhaustive.

 

Appendix

Profits at continuous scope and trade rates reconciliation

In € million Q1 2021 Q1 2020 % alter
Statutory profits 2,692 2,834 -five.%
Trade rates result -90
Profits at continuous trade rates 2,692 2,744 -1.9%
Scope result 60
Trade rates result on obtained/disposed perimeters -three
Profits at continuous scope and trade rates 2,692 2,801 -three.9%

 

Scope consequences amounted to €+fifty seven million for profits. They are predominantly similar to:

  • the acquisitions closed in 2020 and Q1 2021 for €+67 million
  • the disposal of some unique Unified Interaction & Collaboration things to do and Wivertis GmBH in 2020, amounting to a total of €-10 million.

Currency trade rates consequences negatively contributed to profits for €-90 million. They mostly arrived from the depreciation of the American dollar, the Pound sterling and the Brazilian true towards the Euro about the time period.

 

Convention contact

These days, Tuesday, April twenty, 2021, the Team will maintain a conference contact in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in get to remark on Atos’ Q1 2021 profits and answer issues from the economic neighborhood.

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

  • on internet, in the Buyers area
  • by telephone with the dial-in, 10 minutes prior the setting up time. You should observe that if you want to be a part of the webcast by telephone, you will have to sign up in progress of the conference applying the pursuing backlink:

http://emea.directeventreg.com/registration/8716748

Upon registration, you will be provided with Participant Dial In Figures, a Direct Event Passcode and a one of a kind Registrant ID. Phone reminders will also be sent through e-mail the working day prior to the event.

In the course of the 10 minutes prior to the starting of the contact, you will want to use the conference entry details provided in the e-mail acquired upon registration.

Immediately after the conference, a replay of the webcast will be readily available on atos.internet, in the Buyers area.

 

Forthcoming gatherings

May perhaps twelve, 2021 Annual Normal Meeting

July 28, 2021 1st semester 2021 benefits

October 21, 2021 Third quarter 2021 profits

Download the press release in pdf

Contacts

Investor Relations: Gilles Arditti +33 six eleven 69 81 74 [email protected]

Media: Anette Rey +33 six 69 79 eighty four 88 [email protected]

 

About Atos

Atos is a international leader in electronic transformation with a hundred and five,000 workforce and yearly profits of about € eleven billion. European amount 1 in cybersecurity, cloud and higher effectiveness computing, the Team presents tailor-made conclusion-to-conclusion answers for all industries in 71 international locations. A pioneer in decarbonization services and items, Atos is dedicated to a safe and decarbonized electronic for its shoppers. Atos operates less than the brand names Atos and Atos|Syntel. Atos is a SE (Societas Europaea), listed on the CAC40 Paris stock index.

The objective of Atos is to aid design the future of the details place. Its expertise and services support the development of information, training and analysis in a multicultural tactic and add to the development of scientific and technological excellence. Across the world, the Team permits its consumers and workforce, and associates of societies at massive to reside, do the job and establish sustainably, in a secure and safe details place.

Disclaimers

This document is made up of forward-seeking statements that require hazards and uncertainties, like references, about the Group’s expected expansion and profitability in the future which may perhaps drastically effects the expected effectiveness indicated in the forward-seeking statements. These hazards and uncertainties are connected to things out of the regulate of the Firm and not exactly approximated, these kinds of as sector disorders or competition behaviors. Any forward-seeking statements produced in this document are statements about Atos’ beliefs and anticipations and should be evaluated as these kinds of. Ahead-seeking statements consist of statements that may perhaps relate to Atos’ ideas, objectives, procedures, aims, future gatherings, future revenues or synergies, or effectiveness, and other details that is not historic details. Precise gatherings or benefits may perhaps differ from people explained in this document thanks to a amount of hazards and uncertainties that are explained in the 2020 Common Registration Document submitted with the Autorité des Marchés Financiers (AMF) on April seven, 2021 less than the registration amount D.21-0269. Atos does not undertake, and specifically disclaims, any obligation or duty to update or amend any of the details above except as usually needed by regulation. This document does not have or constitute an offer you of Atos’ shares for sale or an invitation or inducement to invest in Atos’ shares in France, the United States of America or any other jurisdiction.

Atos consolidated and statutory economic statements for the year finished December 31, 2020, were being authorised by the Board of Directors on February 17, 2021. Next their audit strategies on the consolidated economic statements for the year finished December 31, 2020, the statutory auditors issued on April 1, 2021 a competent opinion thanks to a limitation on the scope of the audit as two US authorized entities symbolizing eleven% of 2020 consolidated profits that call for supplemental diligences. For the sake of clarity, except for the qualification incorporated in the statutory auditors’ report on the consolidated economic statements for the year finished December 31, 2020, the Team consolidated economic statements are audited and the economic statements incorporated in the Common Registration Document are unchanged as opposed to the version released by the Firm on February 18, 2021. As of right now, the Team has not determined misstatements on the two US entities that are product for the consolidated economic statements.

Profits natural expansion is offered at continuous scope and trade rates.

Industries consist of Producing (Aerospace, Automotive, Chemical substances, Purchaser Packaged Items (Foodstuff & Beverage), Discrete Producing, Procedure Industries, Products and services and Siemens), Money Products and services & Insurance plan (Insurance plan, Banking & Money Products and services, and Company Transformation Products and services), Public Sector & Protection (Protection, Education and learning, Extraterritorial Corporations, Public Administration, Public Local community Products and services and Significant Situations), Telecom, Media & Technology (Substantial Tech & Engineering, Media, and Telecom), Assets & Products and services (Energy, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Lifestyle Sciences (Healthcare and Pharmaceutical).

Regional Company Models consist of 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 Increasing Marketplaces 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), Middle 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), Significant Situations and Worldwide Supply Facilities.