Third quarter of 2021 – Atos

Income stable at € 2,666 million
at continuous forex

Get entry at € 2,399 million

Reserve to monthly bill ratio at ninety%

Electronic, Cloud, Security & Decarbonization at 52% of profits

Web organic and natural improve of abilities by +1,five hundred

Group Transformation programs moving at pace

2021 aims verified

Paris, October 20, 2021 – Atos, a world-wide chief in digital transformation, nowadays announces the profits of its third quarter of 2021.

In the third quarter, the Group continued to stabilize its profits at continuous forex, in advance of progressing into positive territory. Market demand from customers publish crisis remained incredibly dynamic in Cloud software migration and growth and the Electronic transformation of business enterprise procedures via automation, robotisation and synthetic intelligence. In all regions, shoppers now call for digital alternatives with the optimum benchmarks of stability, sustainability and inclusiveness, a few domains where Atos brings exceptional technological knowledge.

The Group continued to pursue its deep and vast business enterprise transformation prepare, employing a record range of new expertise in a incredibly scorching talent industry, ensuing for the very first time in a net organic and natural improve of +1,five hundred workers. This will help fuel our development ambitions. In the exact vein, we strengthened our partnerships with General public Cloud hyperscalers though putting new ones with higher development Electronic platforms.

Our transformation programs declared in July are moving at pace on all fronts. The German restructuring is perfectly less than way. The prepare to search for partners on c. 20% of the Group profits is being executed with sophisticated conversations on our Unified Communications & Collaboration asset. The acquisition of a new digital bolt-on asset has been signed. Last but not least, our LEAP cultural improve software is ramping up.

The Group Administration needs to thank our 107,000 colleagues for their great help for and commitment to this transformation journey, which is setting the appropriate foundations for achieving our mid-term targets.

Q3 2021 profits by Market

Income in the third quarter of 2021 attained € 2,666 million, stable in contrast to Q3 2020 at continuous forex, and lowering by -2.3% organically. The key segments to which the Group directs its transformation – Electronic, Cloud, Security and Decarbonization – performed a powerful development though profits was nevertheless impacted in Typical Infrastructure.

Producing claimed a profits of € 518 million, representing 19% of the Group profits and escalating by +10.4% in contrast to Q3 2020 at continuous forex. This was an acceleration of its recovery right after a next quarter already expanding by +1.8%. Each and every geography contributed to this powerful development, pushed by a repositioning of the Market on bigger price digital jobs and alternatives to fulfill buyer needs. More specially, the Market enhanced business enterprise in software jobs ran in Automotive and Aerospace, as perfectly as digitization of industrial procedures together with IoT based intelligent manufacturing offerings.

Financial Providers & Insurance profits was € 524 million through the third quarter of 2021, representing 20% of the Group profits. Raising by +2.3% in contrast to Q3 2020 at continuous forex, the Market verified its functionality of the very first semester, particularly in the Insurance sector though action with Banking institutions was extra contrasted. Small business in this Market continued to be led by digital transformation jobs and a powerful demand from customers for cybersecurity knowledge, both included by the offerings of the Group and the synergies with the freshly obtained providers these kinds of as Eagle Creek, Electronic.Security, and Paladion.

General public Sector & Protection attained € 553 million representing 21% of the Group profits and lowering year-on-year at continuous forex by -eleven.nine% right after a +thirteen.% in Q3 2020. This minimize arrived from quantity reduction in large Higher Effectiveness Computing (HPC) jobs delivered last year in most of the geographies and extra specially in Northern Europe, as perfectly as the last quarter of year-on-year influence from the large reduction of scope of the Texas Office of Info Methods deal renewed last year.

Telecom, Media & Engineering represented thirteen% of the Group profits and attained € 355 million, lowering by -2.% in contrast to Q3 2020 at continuous forex. Following a positive next quarter, the Market had a extra challenging third quarter as tendencies were being combined among its distinct sectors. While jobs in the Media sector grew many thanks to an enhanced quantity in North The usa, the situation was extra challenging in Higher Tech & Engineering as perfectly as in Telecom.

Income produced by Methods & Providers in the third quarter of 2021 attained € 383 million representing fourteen% of the overall profits of the Group. The industry managed to recuperate and grew by +1.5% in contrast to Q3 2020 at continuous forex right after a minimize by -2.5% in the next quarter of 2021. The situation remained contrasted across its elements, with dynamism in Transportation & Hospitality, particularly in North The usa and Southern Europe, though the Retail and Strength & Utilities sectors declined because of to HPC sales not repeated this year in contrast to 2020.

Symbolizing twelve% of the Group profits with € 333 million, Healthcare & Existence Sciences grew by +5.1% in the third quarter of 2021 year-on-year at continuous forex led by Northern Europe, Southern Europe, and Escalating Marketplaces. In distinct, the Healthcare sector recorded a incredibly powerful functionality in contrast to the third quarter of 2020, which extra than compensated the decrease in Pharmaceutical.

Q3 2021 profits by Regional Small business Unit

The majority of the Locations benefited from the rebound of the demand from customers for Electronic transformation, Cloud, and Cybersecurity in the sectors that have been impacted the most last year these kinds of as Producing and Hospitality & Transportation. They benefited also from a great momentum in Healthcare & Existence Sciences and Financial Providers & Insurance. Mixed with synergies initiated from the new acquisitions, the Group managed to compensate the decrease in General public Sector & Protection coming from quantity reduction and some large HPCs delivered last year in numerous geographies.

Income development at continuous forex was powerful in Southern Europe and in Escalating Marketplaces.

In Southern Europe, the action was reliable in most of the Industries together with General public Sector & Protection.

Escalating Marketplaces continued on its development at circa +5% development led by the ramp-up of jobs in Asia in Healthcare & Existence Sciences as perfectly as in Telecom, Media & Engineering in Brazil and in Producing via quantity improve and new jobs.

North The usa managed to crank out development at continuous forex in all Industries except General public Sector & Protection impacted by the Texas Office of Info Methods deal and by Unified Communications & Collaboration activities.

Northern Europe recorded a powerful action in Producing with Electronic Transformation jobs as perfectly as in Healthcare & Existence Sciences. But this geography confronted unfavourable foundation influence on Higher Effectiveness Computing in General public Sector & Protection.

Last but not least, Central Europe appreciably improved its profits development in contrast to -10.3% in Q2 many thanks to Producing ramp-up of jobs and new contracts.

Industrial action

During the third quarter of 2021, the Group get entry attained € 2,399 million representing a Reserve-to-Bill ratio of ninety%.

The principal new contracts signed in excess of the period of time involved notably:

• in Producing a deal with a large European Automotive provider for the migration to S/4 Hana Cloud (Central Europe)
• in Financial Providers & Insurance a deal with a US world-wide Insurance provider for a migration to General public Cloud combining Atos, Syntel, and Maven Wave capabilities (North The usa)
• in General public Sector & Protection a large deal with a General public authority for a Electronic Transformation project (Northern Europe)
• in Telecom, Media & Engineering a Electronic Transformation deal embarking Cloud, Security, and Decarbonization services with a European Higher Tech chief (Northern Europe)
• in Methods & Providers a deal with a large European Utility for distribution network management and handle combining SAP and Atos Strength alternatives (Southern Europe) and
• in Healthcare & Existence Sciences a deal with a large Healthcare chief for the growth of digital resource to increase affected person working experience (North The usa).

Agreement renewals of the quarter involved, in Producing a large European motor vehicle maker with an extension to help buyer in building information-based Cloud services (Southern Europe), in Financial Providers & Insurance a key financial institution to migrate intricate information center and programs (Escalating Marketplaces), and a scope extension with a large retailer Methods & Providers (North The usa).

Whole backlog amounted to € 23.4 billion at the stop of September 2021, a little bit down in contrast to June 2021. It represented 2.1 several years of profits. Full qualified pipeline attained € seven.4 billion stable in contrast to June 2021. It represented seven.nine months of profits.

Human assets

The overall headcount was 106,665 at the stop of September 2021, an improve of +1,857, of which for the very first time +1,485 (+1.4%) organically in get to help the rapidly expanding business enterprise segments (Electronic, Cloud, Security and Decarbonization) though the Group continued to minimize the range of team in Infrastructure activities via automation and robotization.

In the third quarter of 2021, the Group employed 8,019 team, the majority of whom in offshore and nearshore international locations. Attrition LTM (Very last Twelve Months) attained sixteen% at the stop of September 2021.

2021 aims verified

The Group confirms all its aims for 2021:

• Income development at continuous forex: stable
• Running margin rate: six%
• Cost-free income movement:

Acquisition

The Group nowadays announces the acquisition of DataSentics, a European corporation launched in 2016 and positioned in Prague. DataSentics specializes in Equipment Finding out and Cloud Info engineering. The corporation functions on unifying information science and engineering across Europe. It employs ninety information scientists. Its offerings will quickly complement Synthetic Intelligence manufacturing unit system of Atos to help 5G and Edge offerings and speed up key business enterprise use conditions in Producing, Retail, and Telecommunications.

Plan to search for partners to improve Group belongings

As element of its transformation and to speed up its reprofiling towards Electronic, Cloud, Security & Decarbonization, the Group declared on July 27, 2021 the launch of a large software to search for partners on a quantity of business enterprise representing c. 20% of its recent profits.

On Unified Communications & Collaboration, sophisticated conversations are at this time ongoing.

On Info Heart hosting and affiliated activities, a formal approach has been introduced and multiple indications of desire have been received.

Appendix

Income at continuous scope and exchange costs reconciliation

Scope consequences amounted to €+63 million for profits. They are predominantly associated to:

• the acquisitions closed in H2 2020 and in 2021 for €+68 million and
• the disposal of some precise Unified Communications & Collaboration activities and Wivertis GmBH in 2020, amounting for a overall of €-5 million.

Forex exchange rate consequences positively contributed to profits for €+22 million. They typically arrived from the appreciation of the British Pound from the Euro in excess of the period of time.

Meeting connect with

Tomorrow, Thursday, October 21, 2021, the Group will hold a convention connect with in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in get to comment on Atos’ Q3 2021 profits and answer inquiries from the economical local community.

You can join the webcast of the convention:

• by means of the adhering to hyperlink: https://edge.media-server.com/mmc/p/9dtvfypf
• by phone with the dial-in, 10 minutes prior the commencing time. You should observe that if you want to join the webcast by phone, you will have to sign up in progress of the convention employing the adhering to hyperlink:

http://emea.directeventreg.com/registration/5061859

Upon registration, you will be supplied with Participant Dial In Quantities, a Immediate Function Passcode and a exceptional Registrant ID. Connect with reminders will also be despatched by means of e mail the day prior to the function.

During the 10 minutes prior to the starting of the connect with, you will have to have to use the convention access data supplied in the e mail received on registration.

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

Forthcoming situations

February 28, 2022 (Following Market Close) Whole Yr 2021 effects

April 27, 2022 (Before Market Opening) To start with Quarter 2022 profits

Might 18, 2022 Once-a-year Common Conference

July 27, 2022 (Before Market Opening) To start with semester 2022 effects

Contacts

Investor Relations: Gilles Arditti – +33 six eleven sixty nine 81 seventy four – [email protected]

Media: Anette Rey – +33 six sixty nine seventy nine eighty four 88 – [email protected]

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Obtain the PDF version of the document in this article

About Atos

Atos is a world-wide chief in digital transformation with 107,000 workers and once-a-year profits of in excess of € eleven billion. European range 1 in cybersecurity, cloud and higher functionality computing, the Group offers tailor-made stop-to-stop alternatives for all industries in 71 international locations. A pioneer in decarbonization services and merchandise, Atos is dedicated to a protected and decarbonized digital for its consumers. Atos is an SE (Societas Europaea), mentioned on Euronext Paris and involved in the CAC 40 ESG and Upcoming 20 indexes.

The intent of Atos is to help layout the long run of the data area. Its knowledge and services help the growth of information, training and exploration in a multicultural strategy and contribute to the growth of scientific and technological excellence. Across the entire world, the Group enables its shoppers and workers, and associates of societies at large to are living, get the job done and acquire sustainably, in a secure and protected data area.

Disclaimers

This document is made up of ahead-wanting statements that involve risks and uncertainties, together with references, about the Group’s expected development and profitability in the long run which may perhaps appreciably effect the expected functionality indicated in the ahead-wanting statements. These risks and uncertainties are joined to aspects out of the handle of the Corporation and not precisely believed, these kinds of as industry disorders or competitor’s behaviors. Any ahead-wanting statements built in this document are statements about Atos’ beliefs and anticipations and must be evaluated as these kinds of. Forward-wanting statements involve statements that may perhaps relate to Atos’ strategies, aims, approaches, plans, long run situations, long run revenues or synergies, or functionality, and other data that is not historic data. True situations or effects may perhaps differ from these described in this document because of to a range of risks and uncertainties that are described in the 2020 Common Registration Document filed with the Autorité des Marchés Financiers (AMF) on April seven, 2021 less than the registration range D.21-0269 and the Amendment to the 2020 Common Registration Documents filed with the AMF on July thirty, 2021 less than range D.21-0269-A01. Atos does not undertake, and especially disclaims, any obligation or duty to update or amend any of the data earlier mentioned except as usually needed by legislation. This document does not incorporate or constitute an present 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.

Income organic and natural development is presented at continuous scope and exchange costs.

Industries involve Producing (Aerospace, Automotive, Chemical compounds, Customer Packaged Products (Foods & Beverage), Discrete Producing, Approach Industries, Providers and Siemens), Financial Providers & Insurance (Insurance, Banking & Financial Providers, and Small business Transformation Providers), General public Sector & Protection (Protection, Education, Extraterritorial Corporations, General public Administration, General public Group Providers and Key Situations), Telecom, Media & Engineering (Higher Tech & Engineering, Media, and Telecom), Methods & Providers (Strength, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Existence Sciences (Healthcare and Pharmaceutical).

Regional Small business Units involve North The usa (United states, 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 Escalating Marketplaces together with 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), 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), Key Situations and International Shipping Facilities.