First quarter of 2021 – Atos

Joseph B. Hash

Get entry at € 2,596 million Reserve to invoice ratio at 96% Revenue at € 2,692 million -one.9% at regular forex -3.9% natural and organic evolution Digital, Cloud, Safety & Decarbonization at 51% of earnings (forty six% in 2020) Continued strong advancement in Cybersecurity and Large Data 3 bolt-on acquisitions […]

Get entry at € 2,596 million

Reserve to invoice ratio at 96%

Revenue at € 2,692 million

-one.9% at regular forex

-3.9% natural and organic evolution

Digital, Cloud, Safety & Decarbonization at 51% of earnings (forty six% in 2020)

Continued strong advancement in Cybersecurity and Large Data

3 bolt-on acquisitions accelerating Group transformation

2021 aims confirmed

Paris, April twenty, 2021

Atos, a world chief in electronic transformation, now announces the earnings of its first quarter of 2021.

Elie Girard, Atos CEO, mentioned: “After a history yr in 2020, commercial dynamism remained reliable in the first quarter of the yr with a ebook-to-invoice ratio of 96%, and a pipeline of choices +fourteen% earlier mentioned a yr in the past. Whilst the Group’s earnings decreased for the very last quarter because of to the impression of Covid, down -one.9% at regular forex compared to the past yr, our small business profile has manufactured progress to Digital, Cloud, Safety, and Decarbonization with now 51% of Group earnings shipped in individuals strategic segments.

This small business repositioning is the result of, first, our Spring transformation, and second, our method of bolt-on acquisitions. In that vein, I am delighted to announce now a few new acquisitions in the fields of Digital Production and Solution Lifecycle Administration (PLM), Cryptography and Cybersecurity, and Edge and Pc Vision. In purchase to accelerate the alter of our small business combine, the Group will activate a third dimension and initiate a strategic portfolio critique of non-core belongings.

We validate the aims for the full yr 2021 issued on February 18. In addition, the Group has decided to engage into crucial ways of inside transformation, aiming at enriching the company’s electronic competencies and human money, reinforcing accountability, as effectively as employing cultural improvements in full regularity with our “raison d’être”.

I am grateful to all my Atos colleagues for embarking on this transformation journey with so significantly electricity and enthusiasm.”

 

2021 Goals

The Group confirms now its aims for its 3 crucial fiscal standards, as stated on February 18, 2021:

  • Revenue advancement at regular forex: +3.5% to +4.%
  • Working margin price: +40 to 80bps as opposed to 2020
  • Totally free funds flow: €550m to €600m

 

Q1 2021 earnings by Marketplace

In € million Q1 2021 Q1 2020* Evolution at regular forex
Production 488 522 -six.seven%
Economical Expert services & Insurance plan 544 506 +seven.4%
Community Sector & Protection 579 599 -3.2%
Telecom, Media & Know-how 373 393 -5.%
Methods & Expert services 395 421 -six.2%
Healthcare & Existence Sciences 313 303 +3.4%
Whole 2,692 2,744 -one.9%
* At regular forex

 

Revenue in the first quarter of 2021 arrived at € 2,692 million, -one.9% compared to Q1 2020 at regular forex, -3.9% organically.

Covid-19 was continue to impacting Atos small business around the quarter in spite of excellent resilience in Economical Expert services & Insurance plan and in Healthcare & Existence Sciences, as effectively as in Northern Europe, in Developing Markets and in Southern Europe which is showing an encouraging restoration.

With 18% of the Group earnings, Production documented a earnings of € 488 million, representing a reduce by -six.seven% compared to Q1 2020 at regular forex. The largest and key tough scenario was the reduction of volumes in Germany, though the scenario tended to stabilize compared to previous quarters in other geographies.

Economical Expert services & Insurance plan earnings was € 544 million, representing twenty% of the Group earnings. The Marketplace grew by +seven.4% at regular forex compared to Q1 2020. The activity enhanced in most of the geographies and was primarily driven by small business transformation jobs in Northern Europe and new electronic banking jobs in Developing Markets.

Community Sector & Protection earnings was € 579 million representing 22% of the Group earnings, down -3.2% at regular forex. The reduce was primarly because of to major Large Data job delays to subsequent quarters as effectively as volume reduction in North America.

Telecom, Media & Know-how represented fourteen% of the Group earnings and arrived at € 373 million, a drop of -5.% at regular forex compared to Q1 2020, with a contrasted general performance by geography. Whilst a large all over the world contract with a world technology organization began to create a positive contribution to the Marketplace, general performance was impacted by the foundation outcomes of some large bargains performed in 2020 and not repeated in 2021.

Revenue generated by Methods & Expert services in the first quarter of 2021 arrived at € 395 million representing fifteen% of the Group earnings. The Marketplace decreased by -six.2% at regular forex compared to Q1 2020 with really unique traits across its elements. Whilst a strong general performance was documented with Utilities clients, the Marketplace remained impacted by the tough scenario with clients functioning in Transportation and Hospitality where the demand continues to be affected by Covid-19.

Healthcare & Existence Sciences earnings was € 313 million, up by +3.4% compared to Q1 2020 at regular forex and representing 12% of the Group earnings. The Marketplace grew in most geographies, notably in Northern Europe and in Central Europe, with only the exception of North America which did not reiterate in 2021 some large jobs shipped in Q1 2020.

 

Q1 2021 earnings by Regional Business Device

In € million Q1 2021 Q1 2020* Evolution at regular forex
North America 564 622 -9.4%
Northern Europe 730 688 +six.2%
Central Europe 609 666 -8.5%
Southern Europe 607 596 +one.9%
Developing Markets 181 172 +5.one%
Whole 2,692 2,744 -one.9%
* At regular forex

 

Revenue in North America arrived at € 564 million, lowering by -9.4% at regular forex. The evolution was impacted by the timing of Covid very last yr hitting North America afterwards than Europe, volume reduction in Community Sector and just one time gross sales in Q1 2020, which could not be repeated. In addition some jobs were being 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 Digital transformation as effectively as Cybersecurity areas.

Revenue in Northern Europe was € 730 million, escalating by +six.2% at regular forex. Sturdy small business advancement was recorded in Telecom, Media & Know-how as effectively as in Economical Expert services & Insurance plan and Healthcare & Existence Sciences. At the exact time challenges were being faced by Community Sector & Protection as effectively as Methods & Expert services. Production remained secure compared to very last yr.

Central Europe documented € 609 million of earnings, down -8.5% at regular forex. This primarily resulted from a continue to tough scenario in the Unified Communications & Collaboration and also in Production. Many thanks to the ramp-up of quite a few new contracts, Healthcare & Existence Sciences, Methods & Expert services and Community Sector & Protection recorded advancement, Economical Expert services & Insurance plan remained practically flat in spite of some new jobs with large German banking establishments.

Revenue in Southern Europe arrived at € 607 million, escalating by +one.9% compared to Q1 2020 at regular forex. The advancement of the small business was primarily led by the excellent general performance of Community Sector & Protection. Expansion was also recorded in Economical Expert services & Insurance plan, Methods & Expert services and Healthcare & Existence Sciences. The scenario remained tough in Telecom, Media & Know-how and to a lesser extent in Production.

Revenue arrived at € 181 million in Developing Markets, up +5.one% at regular forex. In most of the Industries the activity was stronger with new jobs shipped additional significantly in Economical Expert services & Insurance plan.

 

Business activity

Throughout the first quarter of 2021, the Group purchase entry arrived at € 2,596 million representing a Reserve-to-Bill ratio of 96%, compared to one zero one% (at regular forex) accomplished around the exact interval very last yr.

The key new contracts signed around the interval were being notably in Northern Europe with a large Chemical customer (Production) and a European telco chief (Telecom, Media & Know-how), in Southern Europe with Pierre Fabre and a European chief in Pharmaceuticals (Healthcare & Existence Sciences), a leading multi-nationwide automotive company (Production) and quite a few contracts with Transportation clients (Methods & Expert services), and in Central Europe with a large European financial institution (Economical Expert services & Insurance plan) and Bundesagentur für Arbeit (Community Sector & Protection).

Contract renewals of the quarter bundled notably a leading company in optical instruments and a large beverage organization in Central Europe (Production), quite a few Community Sector contracts in Southern Europe, and a Telecommunications organization in Developing markets.

In line with this dynamic commercial activity, the full backlog amounted to € 23.2 billion at the conclude of March 2021, +8% compared to March 2020 at regular forex. It represented 2.one yrs of earnings. The full experienced pipeline arrived at € 8.4 billion, +fourteen% compared to March 2020 at regular forex. It represented 9 months of earnings.

 

Human assets

The total headcount was 104,485 at the conclude of March 2021, secure compared to 104,430 at the conclude of December 2020.

In the first quarter of 2021, the Group employed 4,215 employees, the the vast majority of whom in offshore and nearshore international locations.

 

Acquisitions

In line with its mid-expression approach, the Group announces now the signature of 3 bolt-on acquisitions. All of them belong to the strategic parts described by the Group to accelerate its small business combine alter:

  • Digital, via the acquisition of Processia, a professional of Solution Lifecycle Administration (PLM)
  • Safety, via the acquisition of cryptovision, specialized in Cryptography solutions and products
  • Large Data and Analytics, via the acquisition of Ipsotek, a chief in Edge and Pc Vision solutions.

 

North America Audit Comply with-up

The Organization manufactured a statement on April one, 2021 pertaining to quite a few issues relevant to two US legal entities. As a reminder, the statutory auditors discovered, as element of their 2020 audit, inside management weaknesses around the fiscal reporting approach and earnings recognition in accordance with IFRS fifteen leading to quite a few accounting faults, as effectively as prospective risk of override of controls in this respect.

The two US legal entities depict eleven% of 2020 Group earnings, they are not relevant to Syntel.

In spite of the more audit procedures carried out by the statutory auditors in individuals situation, they were being not able to execute within the timeframe the required do the job to acquire enough suitable audit proof in respect of earnings recognition or other relevant account balances of these two US entities and on the absence of substance misstatements for the consolidated fiscal statements. As a result, the statutory auditors issued a experienced impression because of to a limitation of scope on the consolidated fiscal statements for the yr 2020.

As of now the Group has not discovered substance misstatements for the 2020 consolidated fiscal statements. Nevertheless, the conjunction of quite a few accounting faults and inside management weaknesses justifies a critical target and stick to-up by the Group. Therefore, the Organization has decided to carry out a full accounting critique of the two US legal entities and will give a standing update at the time of H1 success.

A strong remediation and avoidance approach has been designed underneath the leadership of the Group General Secretary and is staying implemented. It handles parts this sort of as preventive controls, tips and documentation, Human Methods critique, skilling and group as effectively as awareness and coaching. Complementary assessment is ongoing to assure that the approach is exhaustive.

 

Appendix

Revenue at regular scope and trade fees reconciliation

In € million Q1 2021 Q1 2020 % alter
Statutory earnings 2,692 2,834 -5.%
Exchange fees result -ninety
Revenue at regular trade fees 2,692 2,744 -one.9%
Scope result 60
Exchange fees result on obtained/disposed perimeters -3
Revenue at regular scope and trade fees 2,692 2,801 -3.9%

 

Scope outcomes amounted to €+57 million for earnings. They are primarily relevant to:

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

Forex trade fees outcomes negatively contributed to earnings for €-ninety million. They primarily came from the depreciation of the American greenback, the Pound sterling and the Brazilian real against the Euro around the interval.

 

Conference get in touch with

Right now, Tuesday, April twenty, 2021, the Group will hold a conference get in touch with in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in purchase to remark on Atos’ Q1 2021 earnings and response thoughts from the fiscal community.

You can sign up for the webcast of the conference:

  • on web, in the Investors part
  • by telephone with the dial-in, ten minutes prior the commencing time. Remember to note that if you want to sign up for the webcast by telephone, you should register in progress of the conference employing the subsequent backlink:

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

Upon registration, you will be offered with Participant Dial In Figures, a Immediate Occasion Passcode and a special Registrant ID. Call reminders will also be sent by way of e-mail the day prior to the function.

Throughout the ten minutes prior to the beginning of the get in touch with, you will require to use the conference entry information and facts offered in the e-mail obtained upon registration.

Right after the conference, a replay of the webcast will be out there on atos.web, in the Investors part.

 

Forthcoming situations

Might 12, 2021 Annual General Assembly

July 28, 2021 Initially semester 2021 success

October 21, 2021 Third quarter 2021 earnings

Obtain the push launch in pdf

Contacts

Trader Relations: Gilles Arditti +33 six eleven 69 81 74 [email protected]

Media: Anette Rey +33 six 69 79 eighty four 88 [email protected]

 

About Atos

Atos is a world chief in electronic transformation with one hundred and five,000 workforce and yearly earnings of around € eleven billion. European quantity just one in cybersecurity, cloud and superior general performance computing, the Group provides tailored conclude-to-conclude solutions for all industries in seventy one international locations. A pioneer in decarbonization products and services and products, Atos is committed to a protected and decarbonized electronic for its consumers. Atos operates underneath the makes Atos and Atos|Syntel. Atos is a SE (Societas Europaea), mentioned on the CAC40 Paris inventory index.

The reason of Atos is to assistance design and style the future of the information and facts place. Its knowledge and products and services guidance the development of expertise, education and investigate in a multicultural technique and lead to the development of scientific and technological excellence. Throughout the environment, the Group allows its clients and workforce, and members of societies at large to dwell, do the job and create sustainably, in a harmless and protected information and facts place.

Disclaimers

This document is made up of forward-seeking statements that entail pitfalls and uncertainties, together with references, relating to the Group’s predicted advancement and profitability in the future which could considerably impression the predicted general performance indicated in the forward-seeking statements. These pitfalls and uncertainties are joined to elements out of the management of the Organization and not precisely approximated, this sort of as market place ailments or competitors behaviors. Any forward-seeking statements manufactured in this document are statements about Atos’ beliefs and anticipations and ought to be evaluated as this sort of. Ahead-seeking statements contain statements that could relate to Atos’ designs, aims, strategies, goals, future situations, future revenues or synergies, or general performance, and other information and facts that is not historical information and facts. Precise situations or success could vary from individuals described in this document because of to a quantity of pitfalls and uncertainties that are described in the 2020 Common Registration Document submitted with the Autorité des Marchés Financiers (AMF) on April seven, 2021 underneath the registration quantity D.21-0269. Atos does not undertake, and especially disclaims, any obligation or duty to update or amend any of the information and facts earlier mentioned other than as normally expected by law. This document does not consist of or constitute an give of Atos’ shares for sale or an invitation or inducement to make investments in Atos’ shares in France, the United States of America or any other jurisdiction.

Atos consolidated and statutory fiscal statements for the yr finished December 31, 2020, were being authorised by the Board of Directors on February seventeen, 2021. Following their audit procedures on the consolidated fiscal statements for the yr finished December 31, 2020, the statutory auditors issued on April one, 2021 a experienced impression because of to a limitation on the scope of the audit as two US legal entities representing eleven% of 2020 consolidated earnings that require more diligences. For the sake of clarity, other than for the qualification bundled in the statutory auditors’ report on the consolidated fiscal statements for the yr finished December 31, 2020, the Group consolidated fiscal statements are audited and the fiscal statements bundled in the Common Registration Document are unchanged compared to the version printed by the Organization on February 18, 2021. As of now, the Group has not discovered misstatements on the two US entities that are substance for the consolidated fiscal statements.

Revenue natural and organic advancement is presented at regular scope and trade fees.

Industries contain Production (Aerospace, Automotive, Chemical compounds, Buyer Packaged Merchandise (Foodstuff & Beverage), Discrete Production, Approach Industries, Expert services and Siemens), Economical Expert services & Insurance plan (Insurance plan, Banking & Economical Expert services, and Business Transformation Expert services), Community Sector & Protection (Protection, Education and learning, Extraterritorial Businesses, Community Administration, Community Group Expert services and Main Occasions), Telecom, Media & Know-how (Substantial Tech & Engineering, Media, and Telecom), Methods & Expert services (Electrical power, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Existence Sciences (Healthcare and Pharmaceutical).

Regional Business Units contain North America (Usa, Canada, Guatemala and Mexico), Northern Europe (United Kingdom & Ireland, 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 Developing Markets together with Asia-Pacific (Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand), South America (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), Main Occasions and Global Delivery Facilities.

 

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