Atos presents today its mid-term Ambition: The Leader in Secure and Decarbonized Digital

Joseph B. Hash

Paris, June 24, 2020 Currently, at the celebration of a totally world and digital 2020 Analyst Working day, the Group presents its Vision, Ambition and Technique in the mid-phrase. Elie Girard, CEO stated: “Atos’ ambition is to come to be the leader in secure and decarbonized digital. Over the future […]

Paris, June 24, 2020

Currently, at the celebration of a totally world and digital 2020 Analyst Working day, the Group presents its Vision, Ambition and Technique in the mid-phrase.

Elie Girard, CEO stated: “Atos’ ambition is to come to be the leader in secure and decarbonized digital. Over the future years, the Group will pivot towards development, leveraging on SPRING to go Atos to an Market technique and capture this decade’s new Cloud and Digital breakthroughs, on Digital Security to maximize further more its leadership, and on Decarbonization wherever Atos is a pioneer in bringing to its consumers its distinctive know-how the two on core IT, and on organization processes. Acquisitions of bolt-on Digital experts as nicely as Cybersecurity experts will greatly enhance Atos featuring and development profile.

As a final result of this approach, Digital, Cloud, Security, and Decarbonization are expected to characterize sixty five% of Group profits in the mid-phrase in comparison to 40% now reflecting a main alter in the Group featuring. Atos solid technological DNA, its longstanding world partnerships, as nicely as the solid client obsession society of its 110 000 colleagues, are the suitable strengths to interact in this journey.

With no financial leverage and thus the expected financial solidity to go ahead, Atos is totally geared to attain its mid-phrase targets for the benefit of all its stakeholders.”

Mid-phrase targets

The Group’s ambition is to attain the following targets in the mid-phrase:

  • Revenue development at constant forex: +five% to +seven%
  • Running margin rate: eleven% to twelve% of profits
  • Free of charge cash movement: an functioning margin conversion rate to totally free cash movement previously mentioned 60%.

The Group confirms all the targets for 2020 as communicated as of April 22, 2020 at the celebration of its Q1 2020 profits launch.

Vision, Ambition & Technique

The Group believes that Digitalization has delivered only a fraction of its potential. While the data deluge of the very last ten years will speed up, it will now be topped by a profusion of data-pushed companies. In this new era, consumers are calling for worth – they want end result-centered companies –, practical experience – they want ground breaking and versatile companies –, and basic safety – they want secure and decarbonized companies.

All those client phone calls concentrate on seven essential digital breakthroughs which turn into development levers for Atos leveraging on its capabilities and belongings (for the duration of the Analyst Working day a certain session will be focused to every of these digital breakthroughs):

1) Full Stack Cloud

The go to the Cloud is accelerating into Hybrid Cloud (Personal and General public Clouds), multi-Cloud (throughout numerous General public Clouds), and convergent Cloud procedures (migration and modernization of Information, Platforms and Purposes together) creating a holistic technique to the Cloud, a Full Stack Cloud. This evolution involves an increased orchestration operate. In addition, the most sophisticated software landscapes have commenced to go into the Cloud. Atos is creating on its new profile (Software Modernization abilities from Syntel), its longstanding abilities in Enterprise Important Purposes and SAP, and its solid proximity with Hyperscalers to seize this Full Stack Cloud shaping and acceleration.

2) Enterprise Important Purposes

Digitalization accelerates into Enterprise Important Purposes territory demanding an intensification of cloudification, Information analytics, IoT, regional data processing, and 5G. Enterprise continuity criticality emphasized for the duration of the Covid-19 disaster has been fostering further more this trend. Atos is leveraging on its DNA in vertical Enterprise Important Purposes increased by SPRING transformation, and its regional data processing capabilities (Edge computing) to capture this natural sizeable marketplace chance.

three) Digital Platforms

Digital Platforms have come to be the to start with organization transformation priority of CEOs for the years to come, and will be originating an believed 70% of the new worth created in the financial state. Digital Platforms, which allow the sharing data from enterprises in just or throughout worth chains, is a transformative trend with a huge untapped chance in the B2B world. By way of its conclusion-to-conclusion digital capabilities combined with a deep industry understanding, Atos, as a acknowledged leader in Security and Computing, is preferably positioned as the neutral business Digital Platforms’ operator.

four) Customer Experience

In this new era of Digitialization, Customer Experience will be critical to expand the attain of the recently created data-pushed companies. This will depart the sole domain of consumer interface to encompass further more immersive practical experience, true-time innovation and seamless omni-channel, as nicely as “No Person Interface” logics. Atos leverages on IP-pushed options to convey systems this sort of as Artificial Intelligence/Machine Studying (AI/ML), IoT / Edge (Community Computing), and true-time Cloud and Software architectures to Customer Experience territory to unleash the power of Digitalization.

five) Worker Experience

Further to the Covid-19 disaster, the Group, who is previously a Digital Workplace marketplace leader, estimates that organizations will go from ten% to additional than 40% of get the job done-from-home in the new ordinary. Leaving at the rear of the speedy fixes executed for the duration of the disaster, the interval to come will see Digital Workplace changed by a holistic Worker Experience technique, which includes reimagined collaboration and versatile operating. Setting up on its solid Unified Communications and Security options, its associate ecosystem, and its Market certain Style Imagining and Personas, Atos intends to come to be the distant leader in Worker Experience in the new ordinary.

six) Digital Security

Digital Security encompasses Cybersecurity, but also Mission Important Units, IoT Security, and Economic Security – pointing at the willingness from consumers not to rely on a one technological know-how provider. Cybersecurity is evolving at a really speedy rate thanks to an ever altering Cyber threat landscape, a pervasive Information setting, and an increased attack surface resulting from « hybrid digital ». Atos is now #three in Cybersecurity companies around the world, and has developed a distinctive Cybersecurity innovation monitor file in get to protect conclusion buyers, IoT and Information as nicely as detecting and responding to threats with its prescriptive Security Operation Facilities. The Group intends to enhance its systems as a result of Managed extended Detection & Response, Privilege Entry Management, and Cloud Encryption. The Group ambitions to attain additional than €2bn profits in Digital Security in the mid-phrase.

seven) Decarbonization

Atos has developed above the past ten years a distinctive Decarbonization abilities, nicely acknowledged by all sustainability rankings. The Group has determined to announce now its determination to be Internet-Zero Carbon by 2035, reinforcing its leadership. Decarbonization is now entering the Boardrooms of consumers, and is supported by unprecedented general public procedures and societal aspirations. Atos can leverage on its distinctive know-how to condition new Decarbonization worth propositions to consumers, the two in core IT and in organization processes, and seize a marketplace chance achieving near to $30bn for the sole Environmentally friendly IT in 2024. Choices array from Decarbonization assessments to the introduction in large contracts of CO2 reduction commitments as a result of DLA (Decarbonization Level Agreements), and the use of essential systems this sort of as IoT, Cloud, AI & Analytics, Digital Twin to decarbonize carbon intense organization processes. Atos expects to create additional than €500m profits in the mid-phrase in Decarbonization.

Based mostly on the previously mentioned Digital breakthroughs, its distinctive capabilities and belongings, Atos ambitions to come to be the Chief in Safe and Decarbonized Digital.

Use of cash and M&A policy

The Group maintains its dividend policy likely ahead with a payout ratio among twenty five% and thirty% of internet income Group share. The remaining Free of charge cash movement will be made use of to self-finance acquisitions (and to acquire again a constrained selection of shares to deliver very long-phrase incentive options). The Group targets bolt-on acquisitions to enhance essential portfolio offerings, and Cybersecurity organizations. Considering its internet debt totally free position, leverage remains out there for sizeable and transformative M&A. This use of cash and M&A policy with continue to be underpinned by a strict financial willpower.

Atos announces now two bolt-on acquisitions as portion of its M&A policy: Paladion, a world cybersecurity player in cloud-indigenous Managed Detection & Response, and Alia, a foremost digital consulting corporation specialised in S/four HANA transformation for the electricity sector (see two individual push releases issued now).

 

Replay

A replay of the event will be out there per session on atos.internet, in the Traders area.

Forthcoming event

July 27, 2020               Initially 50 percent 2020 benefits

October 22, 2020         Third quarter 2020 profits

Download the launch in pdf

***

Contacts

Investor Relations:

Gilles Arditti – +33 1 73 26 00 66 – [email protected]

Media:

Sylvie Raybaud – +33 six ninety five 91 96 seventy one – [email protected]

 

About Atos

Atos is a world leader in digital transformation with one hundred ten,000 workforce in 73 international locations and once-a-year profits of € twelve billion. European selection one particular in Cloud, Cybersecurity and High-Overall performance Computing, the Group delivers conclusion-to-conclusion Orchestrated Hybrid Cloud, Large Information, Enterprise Purposes and Digital Workplace options. The Group is the Worldwide Facts Engineering Spouse for the Olympic & Paralympic Video games and operates under the makes Atos, Atos|Syntel, and Unify. Atos is a SE (SocietasEuropaea), detailed on the CAC40 Paris inventory index.

The reason of Atos is to aid layout the upcoming of the facts area. Its abilities and companies guidance the improvement of understanding, instruction and study in a multicultural technique and lead to the improvement of scientific and technological excellence. Across the world, the Group allows its consumers and workforce, and customers of societies at large to live, get the job done and produce sustainably, in a safe and secure facts area.

Disclaimers

This document is made up of ahead-searching statements that include dangers and uncertainties, which includes references, regarding the Group’s expected development and profitability in the upcoming which may noticeably influence the expected overall performance indicated in the ahead-searching statements. These dangers and uncertainties are connected to factors out of the handle of the Business and not specifically believed, this sort of as marketplace conditions or rivals behaviors. Any ahead-searching statements designed in this document are statements about Atos’ beliefs and expectations and ought to be evaluated as this sort of. Forward-searching statements include things like statements that may relate to Atos’ options, targets, procedures, targets, upcoming events, upcoming revenues or synergies, or overall performance, and other facts that is not historic facts. Real events or benefits may vary from people explained in this document thanks to a selection of dangers and uncertainties that are explained in just the the 2019 Universal Registration Document filed with the Autorité des Marchés Financiers (AMF) on March three, 2020 under the registration selection D.20-0096. Atos does not undertake, and precisely disclaims, any obligation or accountability to update or amend any of the facts previously mentioned except as in any other case expected by law. This document does not include 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 America or any other jurisdiction.

Revenue natural development and Running margin are introduced as defined in the 2019 Universal Registration Document. Mid-Phrase once-a-year profits development is introduced at constant trade costs.

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