Atos announces preliminary 2021 financial figures below objectives

Paris, January 10, 2022

Referring to EU regulation No. 596/2014, which supplies that issuers shall notify the community as shortly as attainable of within info immediately suitable to them, Atos announces now that the goals communicated to the market on July twelve, 2021 will not be satisfied because of to quite a few considerable results described herein underneath.

The figures in this press launch, which include the revenue growth at consistent forex, functioning margin charge and absolutely free hard cash move for the 12 months 2021, are not finalized at this phase nor audited. The specific entire 12 months figures for 2021, which include opportunity impairment further to the evaluation of the recoverable volume of belongings, will be published as prepared on February 28, 2022 (after market near).

Rodolphe Belmer, Atos CEO, claimed: “I joined the Enterprise very last 7 days, at the time when the figures had been becoming collected and consolidated. The existing point out of fiscal perception prospects us to the obligation to challenge a earnings warning now because of to the considerable variance in the fiscal KPIs. Having said that, most of the merchandise underlying this serious gap are non-recurring. In individual, the large gap in Totally free Hard cash Flow mostly stems from functioning capital.

I am convinced that the Enterprise has the required belongings and all the skills to function a swift turnaround. In this context, I will present at the close of February a new organization to the Board of Directors, and in Q2 a strategy that will display the drivers of this turnaround and the target on worthwhile growth and price development.”

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Revenue growth

Revenue in 2021 achieved c. € 10.8 billion, a lower of c. -two.four% at consistent forex.

The variance when compared to the entire-12 months goal of “stable” revenue came from:

• The unanticipated reassessment of the cost to go on transformation, replatforming and functions of a fiscal solutions BPO agreement, signed in 2018 for fifteen several years with a large Uk fiscal establishment, main to a key revision of the completion charge on the task, at the close of December 2021, and as a result translating into a adverse revenue affect in 2021.Impact on entire-12 months revenue growth: c. 70 bps

• Massive Details/HPCs and Unified Communications & Collaboration task slippages from close of 2021 to 2022 because of to provide chain issues as properly as to client postponements in General public Sector & Protection in the Netherlands and the Uk.Impact on entire-12 months revenue growth: c. ninety bps

• Hold off to 2022 of final agreements with quite a few large shoppers to get compensated for further perform done in 2021. These amendments, envisioned to be signed in December, would have led to additional revenue in 2021.Impact on entire-12 months revenue growth: thirty bps and

• The lowered degree of low margin components and software resale in December 2021.Impact on entire-12 months revenue growth: c. fifty bps.

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Working margin

Working margin amounted to c. four% of revenue in 2021. The variance when compared to the goal of c. 6% came mostly from:

• The reduction of the revenue booked and additional expenditures in 2021 on the large BPO agreement in the Uk described higher than.Impact on functioning margin charge: c. ninety bps

Also, the run stage of the BPO agreement on the remaining future twelve several years necessitates the provision of c. € sixty five million for long term losses under “Other Working Revenue and Expenses”.

• Task slippages to 2022 because of to provide chain issues as properly as to client postponements.Impact on functioning margin charge: c. thirty bps

• Hold off to 2022 of final agreements with quite a few large shoppers as described higher than to get compensated for further perform done in 2021.Impact on functioning margin charge: c. thirty bps and

• Bigger expenditures than anticipated in 2021 on settlements to near disputes with quite a few shoppers at 12 months-close.Impact on functioning margin charge: c. 40 bps.

 

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Totally free Hard cash Flow

Totally free Hard cash Flow is believed at c. €-420 million. The variance when compared to the goal of optimistic absolutely free hard cash move is mostly because of to functioning capital and in individual to:

• € 200 million from accelerated provider payments at the close of 2021, as a end result of unexpected tension from critical suppliers and subcontractors in the final weeks of 2021

• € one hundred fifty million of client collections postponed from close of 2021 to 2022 because of to the late acceptance of tasks by quite a few shoppers which finally prevented selection by 12 months-close

• € sixty million, of which € thirty million relevant to advance payments from shoppers and € thirty million affect from the large BPO agreement in the Uk described herein higher than and

• € thirty million from the reduced degree of income of receivables.

As a reminder, the entire 12 months Totally free Hard cash Flow figure of €-420 million also includes the affect of the German turnaround strategy for €-one hundred eighty million and a reduction of advance payments from shoppers for €-200 million, as communicated on July twelve, 2021.

The Net Credit card debt at the close of December 2021 is envisioned to be at c. €-1.two billion main to a Net Credit card debt on OMDA (under IFRS) ratio of c. 1.1. Getting into account the Worldline shares masking the Optional Exchange Bond, Net Credit card debt on OMDA ratio is believed at c. .8.

The goals for 2022 will be published on February 28, 2022 at the occasion of the entire-12 months 2021 final results launch.

 

Obtain the PDF model right here

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Appendix

	2021 Objectives	2021 Provisional figures
Revenue growth at consistent forex	Secure	c. -two.four%
% Working Margin to revenue	c. 6%	c. four%
Totally free Hard cash Flow	Optimistic	c. €-420 million

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Conference phone

The Management of Atos invitations you to an international meeting phone, on Monday, January 10, 2022 at 08:00 am (CET – Paris) chaired by Rodolphe Belmer, CEO.

You can sign up for the webcast of the meeting:

• by using the subsequent backlink: https://edge.media-server.com/mmc/p/no379pbs
• by phone with the dial-in, 10 minutes prior the starting off time. Remember to observe that if you want to sign up for the webcast by phone, you will have to sign up in advance of the meeting applying the subsequent backlink: http://emea.directeventreg.com/registration/7025829

On registration, you will be furnished with Participant Dial In Numbers, a Direct Occasion Passcode and a exceptional Registrant ID. During the 10 minutes prior to the starting of the phone, you will require to use the meeting accessibility info furnished in the electronic mail received upon registration.

Just after the meeting, a replay of the webcast will be readily available on atos.net, in the Buyers section.

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Forthcoming gatherings

February 28, 2022 (Just after Sector Shut) Entire 12 months 2021 final results

April 27, 2022 (Ahead of Sector Opening) Initially Quarter 2022 revenue

May possibly 18, 2022 Yearly Common Meeting

July 27, 2022 (Ahead of Sector Opening) Initially semester 2022 final results

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Contacts

Investor Relations: Gilles Arditti – +33 1 73 26 00 sixty six – [email protected]

Media: Anette Rey – +33 6 sixty nine 79 eighty four 88 – [email protected]

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About Atos

Atos is a world-wide leader in digital transformation with 107,000 workforce and annual revenue of around € eleven billion. European number just one in cybersecurity, cloud and higher effectiveness computing, the Team supplies personalized close-to-close methods for all industries in 71 international locations. A pioneer in decarbonization solutions and products and solutions, Atos is fully commited to a safe and decarbonized digital for its shoppers. Atos is an SE (Societas Europaea), stated on Euronext Paris and integrated in the CAC 40 ESG and Following twenty indexes.

The function of Atos is to support layout the long term of the info house. Its knowledge and solutions assist the advancement of information, education and learning and analysis in a multicultural strategy and add to the advancement of scientific and technological excellence. Throughout the world, the Team allows its shoppers and workforce, and users of societies at large to stay, perform and produce sustainably, in a secure and safe info house.

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Disclaimers

This document contains ahead-searching statements that involve challenges and uncertainties, which include references, concerning the Group’s envisioned growth and profitability in the long term which could noticeably affect the envisioned effectiveness indicated in the ahead-searching statements. These challenges and uncertainties are joined to factors out of the manage of the Enterprise and not exactly believed, this sort of as market circumstances or competitor’s behaviors. Any ahead-searching statements made in this document are statements about Atos’ beliefs and expectations and need to be evaluated as this sort of. Ahead-searching statements include things like statements that could relate to Atos’ programs, goals, strategies, objectives, long term gatherings, long term revenues or synergies, or effectiveness, and other info that is not historic info. Real gatherings or final results could differ from people described in this document because of to a number of challenges and uncertainties that are described in the 2020 Common Registration Document filed with the Autorité des Marchés Financiers (AMF) on April seven, 2021 under the registration number D.21-0269 and the Modification to the 2020 Common Registration Paperwork filed with the AMF on July thirty, 2021 under number D.21-0269-A01. Atos does not undertake, and especially disclaims, any obligation or duty to update or amend any of the info higher than apart from as if not expected by legislation. This document does not comprise or represent an give of Atos’ shares for sale or an invitation or inducement to spend in Atos’ shares in France, the United States of The united states or any other jurisdiction.

Revenue organic and natural growth is introduced at consistent scope and trade rates.

Industries include things like Producing (Aerospace, Automotive, Chemicals, Customer Packaged Goods (Foodstuff & Beverage), Discrete Producing, Method Industries, Companies and Siemens), Money Companies & Insurance plan (Insurance plan, Banking & Money Companies, and Company Transformation Companies), General public Sector & Protection (Protection, Schooling, Extraterritorial Businesses, General public Administration, General public Group Companies and Significant Occasions), Telecom, Media & Technological innovation (Superior Tech & Engineering, Media, and Telecom), Resources & Companies (Electrical power, Retail, Transportation & Hospitality, and Utilities) and Health care & Life Sciences (Health care and Pharmaceutical).

Regional Company Units include things like North The united states (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 Increasing Marketplaces which include 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), Significant Occasions and International Shipping Centers.