Third quarter of 2021 – Atos

Income stable at € 2,666 million
at continual forex

Order entry at € 2,399 million

Ebook to monthly bill ratio at ninety%

Electronic, Cloud, Protection & Decarbonization at 52% of earnings

Internet natural raise of talents by +one,five hundred

Group Transformation courses transferring at speed

2021 aims verified

Paris, October twenty, 2021 – Atos, a international chief in electronic transformation, right now announces the earnings of its third quarter of 2021.

In the third quarter, the Group ongoing to stabilize its earnings at continual forex, before progressing into good territory. Sector need publish crisis remained quite dynamic in Cloud application migration and progress and the Electronic transformation of organization procedures by automation, robotisation and artificial intelligence. In all locations, shoppers now demand electronic methods with the maximum expectations of protection, sustainability and inclusiveness, a few domains where Atos brings special technological skills.

The Group ongoing to go after its deep and wide organization transformation plan, choosing a record number of new expertise in a quite warm talent industry, ensuing for the initial time in a net natural raise of +one,five hundred workforce. This will support gasoline our growth ambitions. In the very same vein, we strengthened our partnerships with Community Cloud hyperscalers while striking new types with higher growth Electronic platforms.

Our transformation courses introduced in July are transferring at speed on all fronts. The German restructuring is perfectly less than way. The plan to seem for associates on c. twenty% of the Group earnings is being executed with sophisticated conversations on our Unified Communications & Collaboration asset. The acquisition of a new electronic bolt-on asset has been signed. Last but not least, our LEAP cultural change application is ramping up.

The Group Management desires to thank our 107,000 colleagues for their great support for and determination to this transformation journey, which is environment the correct foundations for obtaining our mid-term targets.

Q3 2021 earnings by Marketplace

	Income
In € million	Q3 2021	Q3 2020*	Evolution at continual forex
Producing	518	469	+ten.four%
Economical Providers & Insurance coverage	524	512	+2.three%
Community Sector & Protection	553	628	-eleven.nine%
Telecom, Media & Technological know-how	355	363	-2.%
Sources & Providers	383	378	+one.five%
Health care & Lifetime Sciences	333	317	+five.one%
Total	2,666	2,666	.%
* At continual forex

 

Income in the third quarter of 2021 achieved € 2,666 million, stable in comparison to Q3 2020 at continual forex, and decreasing by -2.three% organically. The important segments to which the Group directs its transformation – Electronic, Cloud, Protection and Decarbonization – performed a powerful growth while earnings was nonetheless impacted in Vintage Infrastructure.

Producing described a earnings of € 518 million, representing 19% of the Group earnings and growing by +ten.four% in comparison to Q3 2020 at continual forex. This was an acceleration of its recovery after a 2nd quarter currently rising by +one.8%. Just about every geography contributed to this powerful growth, pushed by a repositioning of the Marketplace on increased value electronic tasks and methods to fulfill shopper desires. Much more specifically, the Marketplace improved organization in application tasks ran in Automotive and Aerospace, as perfectly as digitization of industrial procedures together with IoT centered sensible manufacturing choices.

Economical Providers & Insurance coverage earnings was € 524 million during the third quarter of 2021, representing twenty% of the Group earnings. Raising by +2.three% in comparison to Q3 2020 at continual forex, the Marketplace verified its functionality of the initial semester, particularly in the Insurance coverage sector while action with Banking institutions was extra contrasted. Business in this Marketplace ongoing to be led by electronic transformation tasks and a powerful need for cybersecurity skills, equally lined by the choices of the Group and the synergies with the newly acquired companies this sort of as Eagle Creek, Electronic.Protection, and Paladion.

Community Sector & Protection achieved € 553 million representing 21% of the Group earnings and decreasing 12 months-on-12 months at continual forex by -eleven.nine% after a +thirteen.% in Q3 2020. This decrease came from quantity reduction in big Higher Efficiency Computing (HPC) tasks sent final 12 months in most of the geographies and extra specifically in Northern Europe, as perfectly as the final quarter of 12 months-on-12 months influence from the big reduction of scope of the Texas Section of Information and facts Sources agreement renewed final 12 months.

Telecom, Media & Technological know-how represented thirteen% of the Group earnings and achieved € 355 million, decreasing by -2.% in comparison to Q3 2020 at continual forex. Immediately after a good 2nd quarter, the Marketplace had a extra demanding third quarter as tendencies were mixed amongst its distinctive sectors. When tasks in the Media sector grew thanks to an improved quantity in North The united states, the problem was extra demanding in Higher Tech & Engineering as perfectly as in Telecom.

Income created by Sources & Providers in the third quarter of 2021 achieved € 383 million representing fourteen% of the complete earnings of the Group. The field managed to get well and grew by +one.five% in comparison to Q3 2020 at continual forex after a decrease by -2.five% in the 2nd quarter of 2021. The problem remained contrasted throughout its elements, with dynamism in Transportation & Hospitality, particularly in North The united states and Southern Europe, while the Retail and Electrical power & Utilities sectors declined because of to HPC sales not repeated this 12 months in comparison to 2020.

Symbolizing 12% of the Group earnings with € 333 million, Health care & Lifetime Sciences grew by +five.one% in the third quarter of 2021 12 months-on-12 months at continual forex led by Northern Europe, Southern Europe, and Rising Marketplaces. In specific, the Health care sector recorded a quite powerful functionality in comparison to the third quarter of 2020, which extra than compensated the decline in Pharmaceutical.

Q3 2021 earnings by Regional Business Unit

	Income
In € million	Q3 2021	Q3 2020*	Evolution at continual forex
North The united states	617	625	-one.three%
Northern Europe	674	700	-three.8%
Central Europe	619	631	-one.8%
Southern Europe	556	520	+seven.%
Rising Marketplaces	201	191	+four.nine%
Total	2,666	2,666	.%
* At continual forex

 

The majority of the Areas benefited from the rebound of the need for Electronic transformation, Cloud, and Cybersecurity in the sectors that have been impacted the most final 12 months this sort of as Producing and Hospitality & Transportation. They benefited also from a good momentum in Health care & Lifetime Sciences and Economical Providers & Insurance coverage. Merged with synergies initiated from the new acquisitions, the Group managed to compensate the decline in Community Sector & Protection coming from quantity reduction and some big HPCs sent final 12 months in many geographies.

Income growth at continual forex was powerful in Southern Europe and in Rising Marketplaces.

In Southern Europe, the action was reliable in most of the Industries together with Community Sector & Protection.

Rising Marketplaces ongoing on its development at circa +five% growth led by the ramp-up of tasks in Asia in Health care & Lifetime Sciences as perfectly as in Telecom, Media & Technological know-how in Brazil and in Producing by quantity raise and new tasks.

North The united states managed to create growth at continual forex in all Industries except Community Sector & Protection impacted by the Texas Section of Information and facts Sources agreement and by Unified Communications & Collaboration activities.

Northern Europe recorded a powerful action in Producing with Electronic Transformation tasks as perfectly as in Health care & Lifetime Sciences. But this geography faced unfavourable foundation influence on Higher Efficiency Computing in Community Sector & Protection.

Last but not least, Central Europe considerably enhanced its earnings development in comparison to -ten.three% in Q2 thanks to Producing ramp-up of tasks and new contracts.

Commercial action

All through the third quarter of 2021, the Group order entry achieved € 2,399 million representing a Ebook-to-Monthly bill ratio of ninety%.

The most important new contracts signed about the interval provided notably:

• in Producing a agreement with a big European Automotive supplier for the migration to S/four Hana Cloud (Central Europe)
• in Economical Providers & Insurance coverage a agreement with a US international Insurance provider for a migration to Community Cloud combining Atos, Syntel, and Maven Wave capabilities (North The united states)
• in Community Sector & Protection a big agreement with a Community authority for a Electronic Transformation challenge (Northern Europe)
• in Telecom, Media & Technological know-how a Electronic Transformation agreement embarking Cloud, Protection, and Decarbonization providers with a European Higher Tech chief (Northern Europe)
• in Sources & Providers a agreement with a big European Utility for distribution network administration and management combining SAP and Atos Electrical power methods (Southern Europe) and
• in Health care & Lifetime Sciences a agreement with a big Health care chief for the progress of electronic tool to increase patient encounter (North The united states).

Contract renewals of the quarter provided, in Producing a big European automobile producer with an extension to support shopper in building data-centered Cloud providers (Southern Europe), in Economical Providers & Insurance coverage a important financial institution to migrate complicated data heart and applications (Rising Marketplaces), and a scope extension with a big retailer Sources & Providers (North The united states).

Complete backlog amounted to € 23.four billion at the close of September 2021, somewhat down in comparison to June 2021. It represented 2.one many years of earnings. Full capable pipeline achieved € seven.four billion stable in comparison to June 2021. It represented seven.nine months of earnings.

Human assets

The complete headcount was 106,665 at the close of September 2021, an raise of +one,857, of which for the initial time +one,485 (+one.four%) organically in order to support the rapidly rising organization segments (Electronic, Cloud, Protection and Decarbonization) while the Group ongoing to decrease the number of team in Infrastructure activities by automation and robotization.

In the third quarter of 2021, the Group employed 8,019 team, the majority of whom in offshore and nearshore nations. Attrition LTM (Past Twelve Months) achieved 16% at the close of September 2021.

2021 aims verified

The Group confirms all its aims for 2021:

• Income growth at continual forex: stable
• Working margin rate: six%
• Totally free dollars stream: good.

Acquisition

The Group right now announces the acquisition of DataSentics, a European organization founded in 2016 and found in Prague. DataSentics specializes in Equipment Finding out and Cloud Facts engineering. The organization operates on unifying data science and engineering throughout Europe. It employs ninety data experts. Its choices will promptly complement Artificial Intelligence factory system of Atos to support 5G and Edge choices and speed up important organization use conditions in Producing, Retail, and Telecommunications.

System to seem for associates to improve Group belongings

As portion of its transformation and to speed up its reprofiling towards Electronic, Cloud, Protection & Decarbonization, the Group introduced on July 27, 2021 the start of a big application to seem for associates on a quantity of organization representing c. twenty% of its present earnings.

On Unified Communications & Collaboration, sophisticated conversations are at present ongoing.

On Facts Centre web hosting and related activities, a official system has been launched and many indications of curiosity have been received.

 

Appendix

 

Income at continual scope and trade fees reconciliation

In € million	Q3 2021	Q3 2020	% change
Statutory earnings	2,666	2,644	+.8%
Trade fees influence		22
Income at continual trade fees	2,666	2,666	.%
Scope influence		63
Trade fees influence on acquired/disposed perimeters		one
Income at continual scope and trade fees	2,666	2,729	-2.three%

 

Scope effects amounted to €+63 million for earnings. They are predominantly similar to:

• the acquisitions shut in H2 2020 and in 2021 for €+sixty eight million and
• the disposal of some precise Unified Communications & Collaboration activities and Wivertis GmBH in 2020, amounting for a complete of €-five million.

Forex trade rate effects positively contributed to earnings for €+22 million. They mostly came from the appreciation of the British Pound in opposition to the Euro about the interval.

Conference call

Tomorrow, Thursday, October 21, 2021, the Group will keep a meeting call in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in order to comment on Atos’ Q3 2021 earnings and remedy thoughts from the economic group.

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

• via the subsequent url: https://edge.media-server.com/mmc/p/9dtvfypf
• by phone with the dial-in, ten minutes prior the commencing time. You should be aware that if you want to be a part of the webcast by phone, you will have to sign up in advance of the meeting employing the subsequent url:

http://emea.directeventreg.com/registration/5061859

On registration, you will be furnished with Participant Dial In Quantities, a Immediate Event Passcode and a special Registrant ID. Phone reminders will also be sent via email the working day prior to the function.

All through the ten minutes prior to the beginning of the call, you will require to use the meeting obtain data furnished in the email received upon registration.

Immediately after the meeting, a replay of the webcast will be available on atos.net, in the Buyers area.

Forthcoming functions

February 28, 2022 (Immediately after Sector Near) Complete Calendar year 2021 results

April 27, 2022 (Ahead of Sector Opening) Very first Quarter 2022 earnings

May perhaps 18, 2022 Yearly Basic Meeting

July 27, 2022 (Ahead of Sector Opening) Very first semester 2022 results

Contacts

Investor Relations: Gilles Arditti – +33 six eleven sixty nine 81 74 – [email protected]

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

***

Download the PDF edition of the doc in this article

About Atos

Atos is a international chief in electronic transformation with 107,000 workforce and once-a-year earnings of about € eleven billion. European number one in cybersecurity, cloud and higher functionality computing, the Group supplies customized close-to-close methods for all industries in seventy one nations. A pioneer in decarbonization providers and items, Atos is fully commited to a protected and decarbonized electronic for its shoppers. Atos is an SE (Societas Europaea), shown on Euronext Paris and provided in the CAC 40 ESG and Next twenty indexes.

The purpose of Atos is to support layout the potential of the data space. Its skills and providers support the progress of information, education and analysis in a multicultural method and lead to the progress of scientific and technological excellence. Throughout the world, the Group permits its shoppers and workforce, and associates of societies at big to dwell, function and create sustainably, in a safe and sound and protected data space.

Disclaimers

This doc consists of forward-on the lookout statements that entail dangers and uncertainties, together with references, regarding the Group’s predicted growth and profitability in the potential which might considerably effect the predicted functionality indicated in the forward-on the lookout statements. These dangers and uncertainties are connected to variables out of the management of the Business and not specifically believed, this sort of as industry conditions or competitor’s behaviors. Any forward-on the lookout statements made in this doc are statements about Atos’ beliefs and expectations and should really be evaluated as this sort of. Forward-on the lookout statements include things like statements that might relate to Atos’ programs, aims, methods, targets, potential functions, potential revenues or synergies, or functionality, and other data that is not historical data. Precise functions or results might differ from all those described in this doc because of to a number of dangers and uncertainties that are described inside of the 2020 Common Registration Doc filed with the Autorité des Marchés Financiers (AMF) on April seven, 2021 less than the registration number D.21-0269 and the Modification to the 2020 Common Registration Files filed with the AMF on July 30, 2021 less than number D.21-0269-A01. Atos does not undertake, and exclusively disclaims, any obligation or accountability to update or amend any of the data previously mentioned except as in any other case expected by law. This doc does not consist of or represent an provide of Atos’ shares for sale or an invitation or inducement to make investments in Atos’ shares in France, the United States of The united states or any other jurisdiction.

Income natural growth is introduced at continual scope and trade fees.

Industries include things like Producing (Aerospace, Automotive, Substances, Client Packaged Merchandise (Foodstuff & Beverage), Discrete Producing, Approach Industries, Providers and Siemens), Economical Providers & Insurance coverage (Insurance coverage, Banking & Economical Providers, and Business Transformation Providers), Community Sector & Protection (Protection, Training, Extraterritorial Organizations, Community Administration, Community Neighborhood Providers and Big Functions), Telecom, Media & Technological know-how (Higher Tech & Engineering, Media, and Telecom), Sources & Providers (Electrical power, Retail, Transportation & Hospitality, and Utilities) and Health care & Lifetime Sciences (Health care and Pharmaceutical).

Regional Business Models include things like North The united states (United states of america, 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 Rising Marketplaces together with 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), Middle 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), Big Functions and World-wide Supply Centers.