First quarter of 2021 – Atos

• Revenue advancement at frequent forex: +three.five{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} to +4.{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654}
• Working margin charge: +forty to 80bps versus 2020
• Absolutely free income stream: €550m to €600m

Q1 2021 revenue by Business

Revenue in the initially quarter of 2021 arrived at € 2,692 million, -one.nine{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} when compared to Q1 2020 at frequent forex, -three.nine{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} organically.

Covid-19 was nonetheless impacting Atos business above the quarter even with very good resilience in Financial Products and services & Insurance policy and in Healthcare & Everyday living Sciences, as properly as in Northern Europe, in Expanding Markets and in Southern Europe which is showing an encouraging recovery.

With 18{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} of the Group revenue, Manufacturing described a revenue of € 488 million, representing a lower by -six.7{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} when compared to Q1 2020 at frequent forex. The biggest and main hard problem was the reduction of volumes in Germany, whilst the problem tended to stabilize when compared to past quarters in other geographies.

Financial Products and services & Insurance policy revenue was € 544 million, representing twenty{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} of the Group revenue. The Business grew by +7.4{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} at frequent forex when compared to Q1 2020. The action greater in most of the geographies and was mostly driven by business transformation initiatives in Northern Europe and new electronic banking initiatives in Expanding Markets.

Community Sector & Defense revenue was € 579 million representing 22{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} of the Group revenue, down -three.2{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} at frequent forex. The lower was primarly owing to sizeable Huge Information undertaking delays to subsequent quarters as properly as quantity reduction in North The us.

Telecom, Media & Know-how represented fourteen{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} of the Group revenue and arrived at € 373 million, a decrease of -five.{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} at frequent forex when compared to Q1 2020, with a contrasted overall performance by geography. Whilst a huge all over the world deal with a world-wide know-how enterprise began to crank out a constructive contribution to the Business, overall performance was impacted by the foundation results of some huge offers done in 2020 and not repeated in 2021.

Revenue created by Resources & Products and services in the initially quarter of 2021 arrived at € 395 million representing 15{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} of the Group revenue. The Business diminished by -six.2{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} at frequent forex when compared to Q1 2020 with very various traits across its factors. Whilst a strong overall performance was described with Utilities customers, the Business remained impacted by the hard problem with customers running in Transportation and Hospitality where the demand carries on to be impacted by Covid-19.

Healthcare & Everyday living Sciences revenue was € 313 million, up by +three.4{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} when compared to Q1 2020 at frequent forex and representing twelve{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} of the Group revenue. The Business grew in most geographies, notably in Northern Europe and in Central Europe, with only the exception of North The us which did not reiterate in 2021 some huge initiatives sent in Q1 2020.

Q1 2021 revenue by Regional Enterprise Unit

Revenue in North The us arrived at € 564 million, lowering by -nine.4{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} at frequent forex. The evolution was impacted by the timing of Covid past year hitting North The us afterwards than Europe, quantity reduction in Community Sector and a person time income in Q1 2020, which could not be repeated. In addition some initiatives had been postponed from Q1 2021 to subsequent quarters. This could not be compensated by the beginning of the ramp-up of new contracts in the Cloud and Electronic transformation as properly as Cybersecurity areas.

Revenue in Northern Europe was € 730 million, raising by +six.2{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} at frequent forex. Powerful business advancement was recorded in Telecom, Media & Know-how as properly as in Financial Products and services & Insurance policy and Healthcare & Everyday living Sciences. At the same time issues had been confronted by Community Sector & Defense as properly as Resources & Products and services. Manufacturing remained stable when compared to past year.

Central Europe described € 609 million of revenue, down -8.five{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} at frequent forex. This mostly resulted from a nonetheless hard problem in the Unified Communications & Collaboration and also in Manufacturing. Thanks to the ramp-up of a number of new contracts, Healthcare & Everyday living Sciences, Resources & Products and services and Community Sector & Defense recorded advancement, Financial Products and services & Insurance policy remained nearly flat even with some new initiatives with huge German banking establishments.

Revenue in Southern Europe arrived at € 607 million, raising by +one.nine{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} when compared to Q1 2020 at frequent forex. The advancement of the business was mostly led by the very good overall performance of Community Sector & Defense. Advancement was also recorded in Financial Products and services & Insurance policy, Resources & Products and services and Healthcare & Everyday living Sciences. The problem remained hard in Telecom, Media & Know-how and to a lesser extent in Manufacturing.

Revenue arrived at € 181 million in Expanding Markets, up +five.one{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} at frequent forex. In most of the Industries the action was more robust with new initiatives sent more specially in Financial Products and services & Insurance policy.

Professional action

Throughout the initially quarter of 2021, the Group purchase entry arrived at € 2,596 million representing a Guide-to-Monthly bill ratio of ninety six{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654}, when compared to 101{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} (at frequent forex) reached above the same time period past year.

The main new contracts signed above the time period had been notably in Northern Europe with a huge Chemical purchaser (Manufacturing) and a European telco chief (Telecom, Media & Know-how), in Southern Europe with Pierre Fabre and a European chief in Prescription drugs (Healthcare & Everyday living Sciences), a primary multi-national automotive maker (Manufacturing) and a number of contracts with Transportation customers (Resources & Products and services), and in Central Europe with a huge European lender (Financial Products and services & Insurance policy) and Bundesagentur für Arbeit (Community Sector & Defense).

Deal renewals of the quarter bundled notably a primary maker in optical instruments and a huge beverage enterprise in Central Europe (Manufacturing), a number of Community Sector contracts in Southern Europe, and a Telecommunications enterprise in Expanding marketplaces.

In line with this dynamic industrial action, the total backlog amounted to € 23.2 billion at the stop of March 2021, +8{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} when compared to March 2020 at frequent forex. It represented 2.one years of revenue. The total competent pipeline arrived at € 8.4 billion, +fourteen{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} when compared to March 2020 at frequent forex. It represented nine months of revenue.

Human means

The total headcount was 104,485 at the stop of March 2021, stable when compared to 104,430 at the stop of December 2020.

In the initially quarter of 2021, the Group employed 4,215 staff members, the the vast majority of whom in offshore and nearshore nations around the world.

Acquisitions

In line with its mid-phrase system, the Group announces today the signature of three bolt-on acquisitions. All of them belong to the strategic spots described by the Group to accelerate its business mix adjust:

• Electronic, through the acquisition of Processia, a expert of Product or service Lifecycle Administration (PLM)
• Stability, through the acquisition of cryptovision, specialised in Cryptography alternatives and goods
• Huge Information and Analytics, through the acquisition of Ipsotek, a chief in Edge and Laptop Vision alternatives.

North The us Audit Adhere to-up

The Firm produced a assertion on April one, 2021 about a number of matters connected to two US authorized entities. As a reminder, the statutory auditors determined, as section of their 2020 audit, inner command weaknesses above the financial reporting method and revenue recognition in accordance with IFRS 15 primary to a number of accounting faults, as properly as possible threat of override of controls in this respect.

The two US authorized entities represent 11{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} of 2020 Group revenue, they are not connected to Syntel.

Regardless of the additional audit strategies carried out by the statutory auditors in those people circumstances, they had been not capable to conduct within just the timeframe the necessary work to obtain sufficient appropriate audit proof in respect of revenue recognition or other connected account balances of these two US entities and on the absence of content misstatements for the consolidated financial statements. As a end result, the statutory auditors issued a competent feeling owing to a limitation of scope on the consolidated financial statements for the year 2020.

As of today the Group has not determined content misstatements for the 2020 consolidated financial statements. However, the conjunction of a number of accounting faults and inner command weaknesses deserves a significant aim and adhere to-up by the Group. Therefore, the Firm has decided to carry out a total accounting review of the two US authorized entities and will give a position update at the time of H1 effects.

A strong remediation and avoidance system has been intended below the management of the Group General Secretary and is becoming implemented. It addresses spots these types of as preventive controls, recommendations and documentation, Human Resources review, skilling and corporation as properly as recognition and coaching. Complementary evaluation is ongoing to make certain that the system is exhaustive.

Appendix

Revenue at frequent scope and exchange charges reconciliation

Scope results amounted to €+57 million for revenue. They are mostly connected to:

• the acquisitions closed in 2020 and Q1 2021 for €+sixty seven million
• the disposal of some unique Unified Conversation & Collaboration pursuits and Wivertis GmBH in 2020, amounting to a total of €-ten million.

Forex exchange charges results negatively contributed to revenue for €-90 million. They largely arrived from the depreciation of the American greenback, the Pound sterling and the Brazilian true from the Euro above the time period.

Conference simply call

Now, Tuesday, April twenty, 2021, the Group will hold a conference simply call in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in purchase to comment on Atos’ Q1 2021 revenue and reply queries from the financial local community.

You can sign up for the webcast of the conference:

• on internet, in the Investors area
• by phone with the dial-in, ten minutes prior the setting up time. Make sure you observe that if you want to sign up for the webcast by phone, you will have to register in progress of the conference utilizing the next url:

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

On registration, you will be offered with Participant Dial In Quantities, a Immediate Party Passcode and a distinctive Registrant ID. Call reminders will also be sent by means of electronic mail the working day prior to the function.

Throughout the ten minutes prior to the beginning of the simply call, you will need to have to use the conference entry information offered in the electronic mail gained upon registration.

Right after the conference, a replay of the webcast will be obtainable on atos.internet, in the Investors area.

Forthcoming activities

Could twelve, 2021 Yearly General Meeting

July 28, 2021 1st semester 2021 effects

October 21, 2021 Third quarter 2021 revenue

Download the push launch in pdf

Contacts

Investor Relations: Gilles Arditti +33 six 11 sixty nine eighty one seventy four [email protected]

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

About Atos

Atos is a world-wide chief in electronic transformation with 105,000 workforce and annual revenue of above € 11 billion. European selection a person in cybersecurity, cloud and high overall performance computing, the Group offers personalized stop-to-stop alternatives for all industries in seventy one nations around the world. A pioneer in decarbonization expert services and goods, Atos is committed to a protected and decarbonized electronic for its clients. Atos operates below the brand names Atos and Atos|Syntel. Atos is a SE (Societas Europaea), stated on the CAC40 Paris inventory index.

The function of Atos is to assist layout the long term of the information room. Its knowledge and expert services help the enhancement of understanding, schooling and research in a multicultural approach and add to the enhancement of scientific and technological excellence. Throughout the earth, the Group permits its customers and workforce, and customers of societies at huge to stay, work and establish sustainably, in a risk-free and protected information room.

Disclaimers

This document has forward-on the lookout statements that include dangers and uncertainties, together with references, concerning the Group’s predicted advancement and profitability in the long term which could noticeably effect the predicted overall performance indicated in the forward-on the lookout statements. These dangers and uncertainties are connected to variables out of the command of the Firm and not precisely believed, these types of as sector situations or competitors behaviors. Any forward-on the lookout statements produced in this document are statements about Atos’ beliefs and anticipations and need to be evaluated as these types of. Forward-on the lookout statements involve statements that could relate to Atos’ designs, aims, tactics, objectives, long term activities, long term revenues or synergies, or overall performance, and other information that is not historic information. Actual activities or effects could vary from those people described in this document owing to a selection of dangers and uncertainties that are described in the 2020 Common Registration Document filed with the Autorité des Marchés Financiers (AMF) on April 7, 2021 below the registration selection D.21-0269. Atos does not undertake, and exclusively disclaims, any obligation or duty to update or amend any of the information over except as otherwise essential by legislation. This document does not consist of or represent an present of Atos’ shares for sale or an invitation or inducement to devote in Atos’ shares in France, the United States of The us or any other jurisdiction.

Atos consolidated and statutory financial statements for the year finished December 31, 2020, had been authorised by the Board of Directors on February seventeen, 2021. Adhering to their audit strategies on the consolidated financial statements for the year finished December 31, 2020, the statutory auditors issued on April one, 2021 a competent feeling owing to a limitation on the scope of the audit as two US authorized entities representing 11{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} of 2020 consolidated revenue that involve additional diligences. For the sake of clarity, except for the qualification bundled in the statutory auditors’ report on the consolidated financial statements for the year finished December 31, 2020, the Group consolidated financial statements are audited and the financial statements bundled in the Common Registration Document are unchanged when compared to the variation printed by the Firm on February 18, 2021. As of today, the Group has not determined misstatements on the two US entities that are content for the consolidated financial statements.

Revenue organic and natural advancement is offered at frequent scope and exchange charges.

Industries involve Manufacturing (Aerospace, Automotive, Substances, Purchaser Packaged Items (Food & Beverage), Discrete Manufacturing, Procedure Industries, Products and services and Siemens), Financial Products and services & Insurance policy (Insurance policy, Banking & Financial Products and services, and Enterprise Transformation Products and services), Community Sector & Defense (Defense, Education, Extraterritorial Corporations, Community Administration, Community Group Products and services and Major Situations), Telecom, Media & Know-how (Higher Tech & Engineering, Media, and Telecom), Resources & Products and services (Strength, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Everyday living Sciences (Healthcare and Pharmaceutical).

Regional Enterprise Units involve North The us (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 Expanding Markets together with Asia-Pacific (Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand), South The us (Argentina, Brazil, Chile, Colombia, Uruguay, and Peru), Center 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 World wide Shipping Centers.