2021: A year of transition for Atos

Adjustment of Yearly Targets

Affirmation of Mid-term Targets

Paris, July 12, 2021

Referring to EU regulation No. 596/2014, which offers that issuers shall tell the public as soon as probable of within information instantly applicable to them, Atos announces the adjustment of its 2021 once-a-year objectives. The 1st semester figures are not finalized nor audited, the comprehensive 1st semester accounts will be revealed as prepared on July 28, 2021.

In the course of the second quarter, profits development at consistent forex arrived back again to security. However, organic and natural development remained unfavorable at c. -1.5% thanks to an accelerated decline of legacy infrastructure organization in a context of a a lot more powerful demand from customers for post-COVID cloud migration. The Group anticipates that this organization shift will persist in the course of the second semester. The other Group companies benefitted from the financial recovery driving a booming electronic demand from customers. In this context, the Group adjusts its objective of profits development at consistent forex for the whole yr to secure.

Even though for this yr the Group experienced predicted a increased seasonality between the 1st and second semester, operating margin was lower than predicted in the 1st semester at c. 5.5%. Looking at the profits adjustment about the whole yr, impacting legacy activities with a reduced small term charge adaptability, the Group adjusts its operating margin objective to c. 6.% for the whole yr. As a consequence of this unprecedented impact on the organization, many outstanding products (create-off of assets, reduction provisions) have been booked less than “Other Working Revenue and Expenses”. This line amounted to a complete of c. €-one hundred sixty million in the 1st semester.

In the course of the 1st semester, free of charge money circulation amounted to c. €-364 million compared to €-172 million in the course of 2020 1st semester. Absolutely free money circulation was largely impacted by performing capital and in particular by a reduction in money in progress from clients. Transferring forward, the Group decides to minimize money in progress from clients. The modified objective for 2021 is a good free of charge money circulation, to replicate the impacts from the operating margin objective reduction, and performing capital, more precisely on shopper progress payments. The new objective also assumes the whole 1-off € one hundred eighty million money outflow in 2021 for the German turnaround strategy (see under).

Transformation agenda and mid-term targets

In this context, the Group has decided to speed up its transformation -both equally organically and inorganically- by increasing its achievements in, and concentrating on, Electronic, Cloud, Protection, and Decarbonization.

In particular, the strategic portfolio critique of non-main assets is staying finalized and the Group will talk on its conclusions on July 28, 2021, so as to transfer to execution quickly.

Negotiations with social companions about the required turnaround of the German infrastructure organization have concluded to a restructuring strategy of c. 1,300 people, furnishing an more 1% operating margin at Group amount mid-term. The strategy will be comprehensive on July 28, 2021.

Immediately after a yr of changeover in 2021, the Group expects to boost on all its KPIs in 2022 and maintains its mid term targets of profits development at consistent forex from +5% to +seven%, operating margin amount from 11% to 12% and free of charge money circulation conversion above 60%.

North The united states Audit Stick to up

Regarding the audit of the US authorized entities, the Group decided in April this yr to perform a whole accounting critique of these entities as of December 31, 2020, supported by external advisors.

This function is staying finalized and at this stage misstatements recognized are not content. The auditors’ function is also ongoing as section of their 50 % yr critique.

The completion of this process is targeted to be realized at the time of H1 launch on July 28, 2021.

In addition to, the remediation and prevention strategy has been finalized and is staying rolled out.

Appendix

The Administration of Atos invites you to an worldwide meeting call, on Monday, July 12, 2021 at 08:00 am (CET – Paris).

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

• by way of the pursuing link: https://edge.media-server.com/mmc/p/cvgjqzz9
• by telephone with the dial-in, 10 minutes prior the starting time. You should be aware that if you want to be a part of the webcast by telephone, you ought to sign-up in progress of the meeting utilizing the pursuing link: http://emea.directeventreg.com/registration/9249267
  Upon registration, you will be provided with Participant Dial In Figures, a Direct Event Passcode and a distinctive Registrant ID. In the course of the 10 minutes prior to the beginning of the call, you will have to have to use the meeting accessibility information provided in the electronic mail acquired upon registration.

Immediately after the meeting, a replay of the webcast will be obtainable on atos.web, in the Buyers part.

The push launch will be issued on Monday, July 12, 2021 at 07:30 am (CET – Paris).

Forthcoming situations

July 28, 2021               Very first semester 2021 final results

Oct 21, 2021         3rd quarter 2021 profits

Obtain the push launch in pdf 

Contacts

Trader Relations:

Gilles Arditti – +33 6 11 69 eighty one 74 –  [email protected]

Media:

Anette Rey –  +33 6 69 79 84 88 – [email protected]

About Atos

Atos is a worldwide chief in electronic transformation with 105,000 staff and once-a-year profits of about € 11 billion. European number 1 in cybersecurity, cloud and higher functionality computing, the Group offers personalized end-to-end solutions for all industries in 71 international locations. A pioneer in decarbonization services and merchandise, Atos is fully commited to a protected and decarbonized electronic for its clientele. Atos operates less than the brand names Atos and Atos|Syntel. Atos is a SE (Societas Europaea), mentioned on the CAC40 Paris inventory index.

The purpose of Atos is to support style and design the future of the information house. Its knowledge and services assistance the development of expertise, education and investigate in a multicultural tactic and contribute to the development of scientific and technological excellence. Throughout the globe, the Group allows its clients and staff, and customers of societies at substantial to stay, function and produce sustainably, in a harmless and protected information house.

Disclaimers

This doc contains forward-searching statements that require hazards and uncertainties, like references, relating to the Group’s predicted development and profitability in the future which could noticeably impact the predicted functionality indicated in the forward-searching statements. These hazards and uncertainties are linked to elements out of the management of the Enterprise and not specifically believed, this kind of as industry circumstances or competition behaviors. Any forward-searching statements manufactured in this doc are statements about Atos’ beliefs and anticipations and ought to be evaluated as this kind of. Forward-searching statements include statements that could relate to Atos’ plans, objectives, strategies, objectives, future situations, future revenues or synergies, or functionality, and other information that is not historic information. Actual situations or final results could differ from these explained in this doc thanks to a number of hazards and uncertainties that are explained in the 2020 Common Registration Doc submitted with the Autorité des Marchés Financiers (AMF) on April seven, 2021 less than the registration number D.21-0269. Atos does not undertake, and precisely disclaims, any obligation or responsibility to update or amend any of the information above apart from as in any other case needed by regulation. This doc does not comprise 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 united states or any other jurisdiction.

Atos consolidated and statutory financial statements for the yr ended December 31, 2020, had been accredited by the Board of Directors on February seventeen, 2021. Following their audit procedures on the consolidated financial statements for the yr ended December 31, 2020, the statutory auditors issued on April 1, 2021 a experienced view thanks to a limitation on the scope of the audit as two US authorized entities symbolizing 11% of 2020 consolidated profits that demand more diligences. For the sake of clarity, apart from for the qualification incorporated in the statutory auditors’ report on the consolidated financial statements for the yr ended December 31, 2020, the Group consolidated financial statements are audited and the financial statements incorporated in the Common Registration Doc are unchanged compared to the edition revealed by the Enterprise on February 18, 2021. As of now, the Group has not recognized misstatements on the two US entities that are content for the consolidated financial statements.

Earnings organic and natural development is introduced at consistent scope and trade rates.

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