Atos announces preliminary 2021 financial figures below objectives

Paris, January ten, 2022

Referring to EU regulation No. 596/2014, which provides that issuers shall notify the general public as before long as attainable of inside information and facts specifically appropriate to them, Atos announces today that the targets communicated to the market place on July twelve, 2021 will not be met due to quite a few significant outcomes explained herein down below.

The figures in this push launch, together with the revenue development at continuous forex, running margin fee and totally free cash flow for the 12 months 2021, are not finalized at this stage nor audited. The comprehensive complete 12 months figures for 2021, together with opportunity impairment further more to the assessment of the recoverable quantity of belongings, will be released as prepared on February 28, 2022 (following market place near).

Rodolphe Belmer, Atos CEO, said: “I joined the Enterprise final week, at the time when the figures have been staying gathered and consolidated. The existing point out of fiscal perception leads us to the obligation to situation a income warning today due to the significant variance in the fiscal KPIs. Nonetheless, most of the products underlying this severe hole are non-recurring. In distinct, the significant hole in No cost Dollars Movement mainly stems from functioning cash.

I am convinced that the Enterprise has the necessary belongings and all the talents to function a swift turnaround. In this context, I will present at the conclude of February a new corporation to the Board of Administrators, and in Q2 a strategy that will show the motorists of this turnaround and the target on successful development and worth development.”

.

Income development

Income in 2021 attained c. € ten.eight billion, a minimize of c. -two.four% at continuous forex.

The variance as opposed to the complete-12 months aim of “stable” revenue came from:

• The unpredicted reassessment of the expense to go on transformation, replatforming and operations of a fiscal companies BPO contract, signed in 2018 for 15 yrs with a significant Uk fiscal establishment, top to a significant revision of the completion fee on the task, at the conclude of December 2021, and hence translating into a detrimental revenue effects in 2021.Effects on complete-12 months revenue development: c. 70 bps

• Significant Details/HPCs and Unified Communications & Collaboration task slippages from conclude of 2021 to 2022 due to offer chain worries as perfectly as to consumer postponements in General public Sector & Defense in the Netherlands and the Uk.Effects on complete-12 months revenue development: c. 90 bps

• Delay to 2022 of closing agreements with quite a few significant prospects to get compensated for further do the job executed in 2021. These amendments, anticipated to be signed in December, would have led to additional revenue in 2021.Effects on complete-12 months revenue development: 30 bps and

• The lowered stage of low margin hardware and application resale in December 2021.Effects on complete-12 months revenue development: c. fifty bps.

.

Functioning margin

Functioning margin amounted to c. four% of revenue in 2021. The variance as opposed to the aim of c. 6% came mainly from:

• The reduction of the revenue booked and additional charges in 2021 on the significant BPO contract in the Uk described higher than.Effects on running margin fee: c. 90 bps

On top of that, the operate period of the BPO contract on the remaining subsequent twelve yrs calls for the provision of c. € 65 million for foreseeable future losses less than “Other Functioning Cash flow and Expenses”.

• Project slippages to 2022 due to offer chain worries as perfectly as to consumer postponements.Effects on running margin fee: c. 30 bps

• Delay to 2022 of closing agreements with quite a few significant prospects as described higher than to get compensated for further do the job executed in 2021.
  Effects on running margin fee: c. 30 bps and

• Larger charges than expected in 2021 on settlements to near disputes with quite a few prospects at 12 months-conclude.Effects on running margin fee: c. forty bps.

 

.

No cost Dollars Movement

No cost Dollars Movement is approximated at c. €-420 million. The variance as opposed to the aim of positive totally free cash flow is mainly due to functioning cash and in distinct to:

• € two hundred million from accelerated supplier payments at the conclude of 2021, as a outcome of unexpected force from significant suppliers and subcontractors in the closing weeks of 2021

• € one hundred fifty million of consumer collections postponed from conclude of 2021 to 2022 due to the late acceptance of assignments by quite a few prospects which eventually prevented collection by 12 months-conclude

• € 60 million, of which € 30 million related to progress payments from prospects and € 30 million effects from the significant BPO contract in the Uk described herein higher than and

• € 30 million from the lower stage of revenue of receivables.

As a reminder, the complete 12 months No cost Dollars Movement figure of €-420 million also includes the effects of the German turnaround strategy for €-a hundred and eighty million and a reduction of progress payments from prospects for €-two hundred million, as communicated on July twelve, 2021.

The Net Personal debt at the conclude of December 2021 is anticipated to be at c. €-one.two billion top to a Net Personal debt on OMDA (less than IFRS) ratio of c. one.one. Taking into account the Worldline shares covering the Optional Exchange Bond, Net Personal debt on OMDA ratio is approximated at c. .eight.

The targets for 2022 will be released on February 28, 2022 at the occasion of the complete-12 months 2021 results launch.

 

Download the PDF variation below

.

Appendix

	2021 Objectives	2021 Provisional figures
Income development at continuous forex	Secure	c. -two.four%
% Functioning Margin to revenue	c. 6%	c. four%
No cost Dollars Movement	Good	c. €-420 million

.

Conference get in touch with

The Management of Atos invites you to an international conference get in touch with, on Monday, January ten, 2022 at 08:00 am (CET – Paris) chaired by Rodolphe Belmer, CEO.

You can be part of the webcast of the conference:

• through the subsequent hyperlink: https://edge.media-server.com/mmc/p/no379pbs
• by phone with the dial-in, ten minutes prior the beginning time. Be sure to be aware that if you want to be part of the webcast by phone, you will have to sign-up in progress of the conference using the subsequent hyperlink: http://emea.directeventreg.com/registration/7025829

On registration, you will be supplied with Participant Dial In Quantities, a Direct Celebration Passcode and a one of a kind Registrant ID. All through the ten minutes prior to the starting of the get in touch with, you will will need to use the conference entry information and facts supplied in the e mail gained upon registration.

Right after the conference, a replay of the webcast will be offered on atos.internet, in the Traders segment.

.

Forthcoming gatherings

February 28, 2022 (Right after Current market Near) Entire 12 months 2021 results

April 27, 2022 (In advance of Current market Opening) Initial Quarter 2022 revenue

Could eighteen, 2022 Annual Typical Assembly

July 27, 2022 (In advance of Current market Opening) Initial semester 2022 results

.

Contacts

Investor Relations: Gilles Arditti – +33 one seventy three 26 00 66 – [email protected]

Media: Anette Rey – +33 6 sixty nine seventy nine 84 88 – [email protected]

.

About Atos

Atos is a world leader in electronic transformation with 107,000 employees and yearly revenue of in excess of € 11 billion. European variety a single in cybersecurity, cloud and superior effectiveness computing, the Team provides customized conclude-to-conclude methods for all industries in seventy one nations around the world. A pioneer in decarbonization companies and items, Atos is fully commited to a protected and decarbonized electronic for its customers. Atos is an SE (Societas Europaea), mentioned on Euronext Paris and provided in the CAC forty ESG and Upcoming 20 indexes.

The purpose of Atos is to enable structure the foreseeable future of the information and facts space. Its knowledge and companies support the development of knowledge, education and learning and exploration in a multicultural technique and add to the development of scientific and technological excellence. Across the planet, the Team permits its prospects and employees, and associates of societies at significant to reside, do the job and acquire sustainably, in a secure and protected information and facts space.

.

Disclaimers

This doc includes ahead-wanting statements that entail dangers and uncertainties, together with references, about the Group’s anticipated development and profitability in the foreseeable future which could drastically effects the anticipated effectiveness indicated in the ahead-wanting statements. These dangers and uncertainties are connected to components out of the command of the Enterprise and not precisely approximated, this sort of as market place situations or competitor’s behaviors. Any ahead-wanting statements designed in this doc are statements about Atos’ beliefs and expectations and should be evaluated as this sort of. Forward-wanting statements contain statements that could relate to Atos’ plans, targets, strategies, ambitions, foreseeable future gatherings, foreseeable future revenues or synergies, or effectiveness, and other information and facts that is not historic information and facts. Actual gatherings or results could differ from these explained in this doc due to a variety of dangers and uncertainties that are explained inside the 2020 Common Registration Doc filed with the Autorité des Marchés Financiers (AMF) on April 7, 2021 less than the registration variety D.21-0269 and the Amendment to the 2020 Common Registration Files filed with the AMF on July 30, 2021 less than variety D.21-0269-A01. Atos does not undertake, and particularly disclaims, any obligation or accountability to update or amend any of the information and facts higher than besides as normally expected by law. This doc does not include or constitute an provide of Atos’ shares for sale or an invitation or inducement to commit in Atos’ shares in France, the United States of The united states or any other jurisdiction.

Income natural development is presented at continuous scope and exchange charges.

Industries contain Production (Aerospace, Automotive, Substances, Purchaser Packaged Merchandise (Food stuff & Beverage), Discrete Production, Course of action Industries, Providers and Siemens), Money Providers & Coverage (Coverage, Banking & Money Providers, and Company Transformation Providers), General public Sector & Defense (Defense, Education and learning, Extraterritorial Businesses, General public Administration, General public Local community Providers and Big Functions), Telecom, Media & Technological know-how (Superior Tech & Engineering, Media, and Telecom), Methods & Providers (Electrical power, Retail, Transportation & Hospitality, and Utilities) and Health care & Everyday living Sciences (Health care and Pharmaceutical).

Regional Company Models contain 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 Markets together with 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 Functions and International Delivery Facilities.