Atos announces preliminary 2021 financial figures below objectives

Paris, January ten, 2022

Referring to EU regulation No. 596/2014, which gives that issuers shall inform the community as soon as attainable of within data directly related to them, Atos announces these days that the objectives communicated to the industry on July 12, 2021 will not be satisfied because of to many significant effects described herein under.

The figures in this push release, including the earnings growth at continuous currency, operating margin price and no cost money flow for the year 2021, are not finalized at this phase nor audited. The detailed total year figures for 2021, including potential impairment additional to the evaluation of the recoverable amount of belongings, will be posted as planned on February 28, 2022 (soon after industry shut).

Rodolphe Belmer, Atos CEO, stated: “I joined the Organization very last week, at the time when the figures were becoming collected and consolidated. The latest state of economic insight leads us to the obligation to situation a income warning these days because of to the significant variance in the economic KPIs. On the other hand, most of the goods underlying this intense hole are non-recurring. In unique, the massive hole in Cost-free Money Stream mostly stems from doing the job cash.

I am persuaded that the Organization has the important belongings and all the talents to operate a swift turnaround. In this context, I will current at the stop of February a new group to the Board of Administrators, and in Q2 a plan that will demonstrate the motorists of this turnaround and the focus on successful growth and value generation.”

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Profits growth

Profits in 2021 achieved c. € ten.eight billion, a decrease of c. -2.four% at continuous currency.

The variance in comparison to the total-year goal of “stable” earnings came from:

• The unanticipated reassessment of the cost to go on transformation, replatforming and functions of a economic companies BPO contract, signed in 2018 for 15 yrs with a massive Uk economic establishment, major to a main revision of the completion price on the venture, at the stop of December 2021, and consequently translating into a detrimental earnings affect in 2021.Effects on total-year earnings growth: c. 70 bps

• Major Facts/HPCs and Unified Communications & Collaboration venture slippages from stop of 2021 to 2022 because of to source chain issues as very well as to customer postponements in General public Sector & Protection in the Netherlands and the Uk.Effects on total-year earnings growth: c. ninety bps

• Delay to 2022 of remaining agreements with many massive consumers to get compensated for extra operate done in 2021. These amendments, envisioned to be signed in December, would have led to further earnings in 2021.Effects on total-year earnings growth: thirty bps and

• The lessened level of low margin hardware and application resale in December 2021.Effects on total-year earnings growth: c. fifty bps.

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Operating margin

Operating margin amounted to c. four% of earnings in 2021. The variance in comparison to the goal of c. 6% came mostly from:

• The reduction of the earnings booked and further prices in 2021 on the massive BPO contract in the Uk described over.Effects on operating margin price: c. ninety bps

Furthermore, the operate period of the BPO contract on the remaining future 12 yrs needs the provision of c. € 65 million for potential losses less than “Other Operating Income and Expenses”.

• Task slippages to 2022 because of to source chain issues as very well as to customer postponements.Effects on operating margin price: c. thirty bps

• Delay to 2022 of remaining agreements with many massive consumers as described over to get compensated for extra operate done in 2021.
  Effects on operating margin price: c. thirty bps and

• Higher prices than predicted in 2021 on settlements to shut disputes with many consumers at year-stop.Effects on operating margin price: c. 40 bps.

 

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Cost-free Money Stream

Cost-free Money Stream is estimated at c. €-420 million. The variance in comparison to the goal of beneficial no cost money flow is mostly because of to doing the job cash and in unique to:

• € two hundred million from accelerated provider payments at the stop of 2021, as a outcome of unforeseen tension from critical suppliers and subcontractors in the remaining weeks of 2021

• € one hundred fifty million of customer collections postponed from stop of 2021 to 2022 because of to the late acceptance of assignments by many consumers which finally prevented selection by year-stop

• € sixty million, of which € thirty million related to advance payments from consumers and € thirty million affect from the massive BPO contract in the Uk described herein over and

• € thirty million from the lessen level of sales of receivables.

As a reminder, the total year Cost-free Money Stream figure of €-420 million also includes the affect of the German turnaround plan for €-one hundred eighty million and a reduction of advance payments from consumers for €-two hundred million, as communicated on July 12, 2021.

The Net Credit card debt at the stop of December 2021 is envisioned to be at c. €-one.2 billion major to a Net Credit card debt on OMDA (less than IFRS) ratio of c. one.one. Getting into account the Worldline shares masking the Optional Trade Bond, Net Credit card debt on OMDA ratio is estimated at c. .eight.

The objectives for 2022 will be posted on February 28, 2022 at the celebration of the total-year 2021 final results release.

 

Download the PDF edition right here

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Appendix

	2021 Goals	2021 Provisional figures
Profits growth at continuous currency	Steady	c. -2.four%
% Operating Margin to earnings	c. 6%	c. four%
Cost-free Money Stream	Positive	c. €-420 million

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Conference simply call

The Management of Atos invitations you to an global conference simply call, on Monday, January ten, 2022 at 08:00 am (CET – Paris) chaired by Rodolphe Belmer, CEO.

You can sign up for the webcast of the conference:

• by using the next hyperlink: https://edge.media-server.com/mmc/p/no379pbs
• by telephone with the dial-in, ten minutes prior the starting time. You should observe that if you want to sign up for the webcast by telephone, you must register in advance of the conference applying the next hyperlink: http://emea.directeventreg.com/registration/7025829

Upon registration, you will be furnished with Participant Dial In Figures, a Immediate Function Passcode and a unique Registrant ID. In the course of the ten minutes prior to the beginning of the simply call, you will want to use the conference entry data furnished in the email acquired upon registration.

After the conference, a replay of the webcast will be obtainable on atos.net, in the Buyers part.

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Forthcoming occasions

February 28, 2022 (After Market Shut) Whole 12 months 2021 final results

April 27, 2022 (Ahead of Market Opening) Initial Quarter 2022 earnings

May well eighteen, 2022 Yearly Standard Assembly

July 27, 2022 (Ahead of Market Opening) Initial semester 2022 final results

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Contacts

Investor Relations: Gilles Arditti – +33 one 73 26 00 66 – [email protected]

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

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About Atos

Atos is a worldwide chief in digital transformation with 107,000 personnel and once-a-year earnings of more than € 11 billion. European number one in cybersecurity, cloud and superior functionality computing, the Group gives tailor-made stop-to-stop methods for all industries in 71 countries. A pioneer in decarbonization companies and merchandise, Atos is fully commited to a safe and decarbonized digital for its clientele. Atos is an SE (Societas Europaea), stated on Euronext Paris and bundled in the CAC 40 ESG and Future 20 indexes.

The purpose of Atos is to assistance structure the potential of the data space. Its knowledge and companies assistance the advancement of information, instruction and investigation in a multicultural technique and contribute to the advancement of scientific and technological excellence. Across the earth, the Group permits its consumers and personnel, and users of societies at massive to stay, operate and produce sustainably, in a protected and safe data space.

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Disclaimers

This document includes forward-looking statements that require risks and uncertainties, including references, about the Group’s envisioned growth and profitability in the potential which might considerably affect the envisioned functionality indicated in the forward-looking statements. These risks and uncertainties are linked to things out of the command of the Organization and not exactly estimated, these as industry conditions or competitor’s behaviors. Any forward-looking statements built in this document are statements about Atos’ beliefs and anticipations and really should be evaluated as these. Forward-looking statements contain statements that might relate to Atos’ strategies, objectives, strategies, plans, potential occasions, potential revenues or synergies, or functionality, and other data that is not historic data. Actual occasions or final results might vary from those people described in this document because of to a number 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 number D.21-0269 and the Amendment to the 2020 Common Registration Documents filed with the AMF on July thirty, 2021 less than number D.21-0269-A01. Atos does not undertake, and especially disclaims, any obligation or accountability to update or amend any of the data over except as if not necessary by legislation. This document does not consist of or constitute an offer you 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.

Profits organic growth is offered at continuous scope and exchange fees.

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