First quarter of 2021 – Atos

• Revenue growth at frequent forex: +three.5{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} to +4.{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105}
• Running margin rate: +40 to 80bps compared to 2020
• Totally free funds stream: €550m to €600m

Q1 2021 revenue by Industry

Revenue in the initially quarter of 2021 reached € two,692 million, -one.9{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} compared to Q1 2020 at frequent forex, -three.9{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} organically.

Covid-19 was however impacting Atos small business more than the quarter even with very good resilience in Economical Solutions & Coverage and in Healthcare & Everyday living Sciences, as very well as in Northern Europe, in Increasing Marketplaces and in Southern Europe which is displaying an encouraging recovery.

With 18{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} of the Group revenue, Production noted a revenue of € 488 million, representing a minimize by -6.7{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} compared to Q1 2020 at frequent forex. The largest and main demanding condition was the reduction of volumes in Germany, while the condition tended to stabilize compared to previous quarters in other geographies.

Economical Solutions & Coverage revenue was € 544 million, representing 20{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} of the Group revenue. The Industry grew by +7.4{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} at frequent forex compared to Q1 2020. The action increased in most of the geographies and was generally pushed by small business transformation projects in Northern Europe and new electronic banking projects in Increasing Marketplaces.

Public Sector & Protection revenue was € 579 million representing 22{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} of the Group revenue, down -three.two{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e
102ae4b29477986671105} at frequent forex. The minimize was primarly thanks to substantial Massive Information challenge delays to subsequent quarters as very well as quantity reduction in North America.

Telecom, Media & Engineering represented fourteen{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} of the Group revenue and reached € 373 million, a decline of -5.{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} at frequent forex compared to Q1 2020, with a contrasted effectiveness by geography. When a huge all over the world deal with a world-wide technological know-how firm began to make a beneficial contribution to the Industry, effectiveness was impacted by the base consequences of some huge specials carried out in 2020 and not recurring in 2021.

Revenue generated by Resources & Solutions in the initially quarter of 2021 reached € 395 million representing 15{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} of the Group revenue. The Industry reduced by -6.two{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} at frequent forex compared to Q1 2020 with extremely different tendencies throughout its components. When a sturdy effectiveness was noted with Utilities shoppers, the Industry remained impacted by the demanding condition with shoppers functioning in Transportation and Hospitality exactly where the demand from customers carries on to be influenced by Covid-19.

Healthcare & Everyday living Sciences revenue was € 313 million, up by +three.4{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} compared to Q1 2020 at frequent forex and representing twelve{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} of the Group revenue. The Industry 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 huge projects sent in Q1 2020.

Q1 2021 revenue by Regional Enterprise Device

Revenue in North America reached € 564 million, lowering by -9.4{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} at frequent forex. The evolution was impacted by the timing of Covid previous yr hitting North America later than Europe, quantity reduction in Public Sector and 1 time revenue in Q1 2020, which could not be recurring. In addition some projects have been postponed from Q1 2021 to subsequent quarters. This could not be compensated by the starting of the ramp-up of new contracts in the Cloud and Digital transformation as very well as Cybersecurity spaces.

Revenue in Northern Europe was € 730 million, growing by +6.two{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} at frequent forex. Strong small business growth was recorded in Telecom, Media & Engineering as very well as in Economical Solutions & Coverage and Healthcare & Everyday living Sciences. At the similar time issues have been confronted by Public Sector & Protection as very well as Resources & Solutions. Production remained secure compared to previous yr.

Central Europe noted € 609 million of revenue, down -eight.5{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} at frequent forex. This generally resulted from a however demanding condition in the Unified Communications & Collaboration and also in Production. Thanks to the ramp-up of quite a few new contracts, Healthcare & Everyday living Sciences, Resources & Solutions and Public Sector & Protection recorded growth, Economical Solutions & Coverage remained pretty much flat even with some new projects with huge German banking institutions.

Revenue in Southern Europe reached € 607 million, growing by +one.9{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} compared to Q1 2020 at frequent forex. The growth of the small business was generally led by the very good effectiveness of Public Sector & Protection. Development was also recorded in Economical Solutions & Coverage, Resources & Solutions and Healthcare & Everyday living Sciences. The condition remained demanding in Telecom, Media & Engineering and to a lesser extent in Production.

Revenue reached € 181 million in Increasing Marketplaces, up +5.one{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} at frequent forex. In most of the Industries the action was much better with new projects sent a lot more specially in Economical Solutions & Coverage.

Professional action

During the initially quarter of 2021, the Group order entry reached € two,596 million representing a Book-to-Invoice ratio of ninety six{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105}, compared to a hundred and one{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} (at frequent forex) achieved more than the similar period of time previous yr.

The main new contracts signed more than the period of time have been notably in Northern Europe with a huge Chemical customer (Production) and a European telco leader (Telecom, Media & Engineering), in Southern Europe with Pierre Fabre and a European leader in Prescribed drugs (Healthcare & Everyday living Sciences), a major multi-countrywide automotive manufacturer (Production) and quite a few contracts with Transportation shoppers (Resources & Solutions), and in Central Europe with a huge European financial institution (Economical Solutions & Coverage) and Bundesagentur für Arbeit (Public Sector & Protection).

Deal renewals of the quarter incorporated notably a major manufacturer in optical instruments and a huge beverage firm in Central Europe (Production), quite a few Public Sector contracts in Southern Europe, and a Telecommu
nications firm in Increasing markets.

In line with this dynamic professional action, the total backlog amounted to € 23.two billion at the conclude of March 2021, +eight{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} compared to March 2020 at frequent forex. It represented two.one many years of revenue. The total qualified pipeline reached € eight.4 billion, +fourteen{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} compared to March 2020 at frequent forex. It represented 9 months of revenue.

Human assets

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

In the initially quarter of 2021, the Group hired 4,215 employees, the vast majority of whom in offshore and nearshore nations.

Acquisitions

In line with its mid-phrase program, the Group announces right now the signature of three bolt-on acquisitions. All of them belong to the strategic places described by the Group to accelerate its small business mix modify:

• Digital, through the acquisition of Processia, a expert of Products Lifecycle Management (PLM)
• Stability, through the acquisition of cryptovision, specialised in Cryptography remedies and solutions
• Massive Information and Analytics, through the acquisition of Ipsotek, a leader in Edge and Pc Eyesight remedies.

North America Audit Observe-up

The Organization created a statement on April one, 2021 about quite a few matters relevant to two US legal entities. As a reminder, the statutory auditors recognized, as element of their 2020 audit, inside command weaknesses more than the economical reporting course of action and revenue recognition in accordance with IFRS 15 major to quite a few accounting faults, as very well as possible risk of override of controls in this respect.

The two US legal entities represent 11{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} of 2020 Group revenue, they are not relevant to Syntel.

In spite of the more audit strategies carried out by the statutory auditors in those people situations, they have been not ready to carry out within just the timeframe the necessary function to receive sufficient suitable audit evidence in respect of revenue recognition or other relevant account balances of these two US entities and on the absence of product misstatements for the consolidated economical statements. As a final result, the statutory auditors issued a qualified opinion thanks to a limitation of scope on the consolidated economical statements for the yr 2020.

As of right now the Group has not recognized product misstatements for the 2020 consolidated economical statements. Even so, the conjunction of quite a few accounting faults and inside command weaknesses justifies a critical emphasis and stick to-up by the Group. Thus, the Organization has determined to carry out a total accounting evaluate of the two US legal entities and will give a position update at the time of H1 success.

A sturdy remediation and avoidance program has been designed below the leadership of the Group Common Secretary and is currently being applied. It addresses places these kinds of as preventive controls, pointers and documentation, Human Resources evaluate, skilling and firm as very well as awareness and instruction. Complementary evaluation is ongoing to assure that the program is exhaustive.

Appendix

Revenue at frequent scope and exchange prices reconciliation

Scope consequences amounted to €+fifty seven million for revenue. They are generally relevant to:

• the acquisitions shut in 2020 and Q1 2021 for €+67 million
• the disposal of some precise Unified Interaction & Collaboration activities and Wivertis GmBH in 2020, amounting to a whole of €-10 million.

Currency exchange prices consequences negatively contributed to revenue for €-ninety million. They generally came from the depreciation of the American greenback, the Pound sterling and the Brazilian serious versus the Euro more than the period of time.

Convention simply call

Currently, Tuesday, April 20, 2021, the Group will maintain a meeting simply call in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in order to comment on Atos’ Q1 2021 revenue and solution questions from the economical neighborhood.

You can be part of the webcast of the meeting:

• on net, in the Buyers part
• by phone with the dial-in, 10 minutes prior the setting up time. Remember to observe that if you want to be part of the webcast by phone, you will have to register in progress of the meeting working with the pursuing backlink:

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

On registration, you will be furnished with Participant Dial In Figures, a Direct Event Passcode and a special Registrant ID. Call reminders will also be sent by way of electronic mail the day prior to the party.

During the 10 minutes prior to the starting of the simply call, you will will need to use the meeting accessibility information furnished in the electronic mail received on registration.

Soon after the meeting, a replay of the webcast will be offered on atos.net, in the Buyers part.

Forthcoming situations

May perhaps twelve, 2021 Once-a-year Common Meeting

July 28, 2021 First semester 2021 success

October 21, 2021 Third quarter 2021 revenue

Download the press launch in pdf

Contacts

Investor Relations: Gilles Arditti +33 6 11 69 81 74 [email protected]

Media: Anette Rey
+33 6 69 79 eighty four 88 [email protected]

About Atos

Atos is a world-wide leader in electronic transformation with one zero five,000 employees and yearly revenue of more than € 11 billion. European quantity 1 in cybersecurity, cloud and superior effectiveness computing, the Group provides personalized conclude-to-conclude remedies for all industries in seventy one nations. A pioneer in decarbonization providers and solutions, Atos is dedicated to a protected and decarbonized electronic for its clients. Atos operates below the makes Atos and Atos|Syntel. Atos is a SE (Societas Europaea), listed on the CAC40 Paris inventory index.

The function of Atos is to aid design the upcoming of the information room. Its know-how and providers help the improvement of knowledge, education and learning and exploration in a multicultural approach and contribute to the improvement of scientific and technological excellence. Throughout the world, the Group allows its shoppers and employees, and members of societies at huge to live, function and acquire sustainably, in a risk-free and protected information room.

Disclaimers

This document consists of forward-searching statements that require risks and uncertainties, including references, relating to the Group’s predicted growth and profitability in the upcoming which could considerably affect the predicted effectiveness indicated in the forward-searching statements. These risks and uncertainties are linked to components out of the command of the Organization and not exactly believed, these kinds of as market ailments or rivals behaviors. Any forward-searching statements created in this document are statements about Atos’ beliefs and anticipations and ought to be evaluated as these kinds of. Ahead-searching statements include things like statements that could relate to Atos’ designs, aims, procedures, plans, upcoming situations, upcoming revenues or synergies, or effectiveness, and other information that is not historic information. Precise situations or success could vary from those people explained in this document thanks to a quantity of risks and uncertainties that are explained in the 2020 Common Registration Doc filed with the Autorité des Marchés Financiers (AMF) on April 7, 2021 below the registration quantity D.21-0269. Atos does not undertake, and particularly disclaims, any obligation or duty to update or amend any of the information above besides as normally essential by regulation. This document does not contain or constitute an offer of Atos’ shares for sale or an invitation or inducement to spend in Atos’ shares in France, the United States of America or any other jurisdiction.

Atos consolidated and statutory economical statements for the yr ended December 31, 2020, have been accredited by the Board of Administrators on February 17, 2021. Adhering to their audit strategies on the consolidated economical statements for the yr ended December 31, 2020, the statutory auditors issued on April one, 2021 a qualified opinion thanks to a limitation on the scope of the audit as two US legal entities representing 11{d5f2c26e8a2617525656064194f8a7abd2a56a02c0e102ae4b29477986671105} of 2020 consolidated revenue that demand more diligences. For the sake of clarity, besides for the qualification incorporated in the statutory auditors’ report on the consolidated economical statements for the yr ended December 31, 2020, the Group consolidated economical statements are audited and the economical statements incorporated in the Common Registration Doc are unchanged compared to the version printed by the Organization on February 18, 2021. As of right now, the Group has not recognized misstatements on the two US entities that are product for the consolidated economical statements.

Revenue organic and natural growth is presented at frequent scope and exchange prices.

Industries include things like Production (Aerospace, Automotive, Chemical substances, Client Packaged Merchandise (Foodstuff & Beverage), Discrete Production, Procedure Industries, Solutions and Siemens), Economical Solutions & Coverage (Coverage, Banking & Economical Solutions, and Enterprise Transformation Solutions), Public Sector & Protection (Protection, Education, Extraterritorial Companies, Public Administration, Public Local community Solutions and Major Situations), Telecom, Media & Engineering (Significant Tech & Engineering, Media, and Telecom), Resources & Solutions (Electrical power, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Everyday living Sciences (Healthcare and Pharmaceutical).

Regional Enterprise Units include things like 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 Increasing Marketplaces including 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 Coast, Kenya, Kingdom of Saudi Arabia, Madagascar, Mali, Mauritius, Morocco, Qatar, Senegal, South Africa, Tunisia, Turkey and UAE), Major Situations and World wide Shipping Centers.