First quarter of 2021 – Atos



Order entry at € two,596 million

E-book to bill ratio at 96%

Profits at € two,692 million

-1.9% at continuous currency

-3.9% organic evolution

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

Continued potent advancement in Cybersecurity and Significant Information

3 bolt-on acquisitions accelerating Group transformation

2021 aims confirmed

Paris, April twenty, 2021

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

Elie Girard, Atos CEO, mentioned: “After a history calendar year in 2020, industrial dynamism remained reliable in the very first quarter of the calendar year with a e-book-to-bill ratio of 96%, and a pipeline of choices +14% earlier mentioned a calendar year back. While the Group’s earnings lessened for the final quarter because of to the effect of Covid, down -1.9% at continuous currency when compared to the former calendar year, our business enterprise profile has made progress in direction of Digital, Cloud, Protection, and Decarbonization with now 51% of Group earnings sent in these strategic segments.

This business enterprise repositioning is the final result of, very first, our Spring transformation, and 2nd, our system of bolt-on acquisitions. In that vein, I am delighted to announce now three new acquisitions in the fields of Digital Manufacturing and Item Lifecycle Management (PLM), Cryptography and Cybersecurity, and Edge and Laptop or computer Eyesight. In order to accelerate the modify of our business enterprise blend, the Group will activate a third dimension and initiate a strategic portfolio critique of non-main assets.

We ensure the aims for the entire calendar year 2021 issued on February eighteen. Moreover, the Group has made the decision to have interaction into essential methods of inner transformation, aiming at enriching the company’s electronic competencies and human money, reinforcing accountability, as perfectly as implementing cultural adjustments in entire consistency with our “raison d’être”.

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

 

2021 Goals

The Group confirms now its aims for its 3 vital monetary criteria, as mentioned on February eighteen, 2021:

  • Profits advancement at continuous currency: +3.5% to +four.%
  • Functioning margin fee: +forty to 80bps vs . 2020
  • Absolutely free dollars movement: €550m to €600m

 

Q1 2021 earnings by Business

In € millionQ1 2021Q1 2020*Evolution at continuous currency
Manufacturing 488 522-six.seven%
Money Companies & Coverage 544 506+seven.four%
Public Sector & Protection 579 599-3.two%
Telecom, Media & Technological know-how 373 393-5.%
Means & Companies 395 421-six.two%
Health care & Life Sciences 313 303+3.four%
Overall two,692 two,744 -1.9%
* At continuous currency

 

Profits in the very first quarter of 2021 attained € two,692 million, -1.9% when compared to Q1 2020 at continuous currency, -3.9% organically.

Covid-19 was however impacting Atos business enterprise more than the quarter regardless of superior resilience in Money Companies & Coverage and in Health care & Life Sciences, as perfectly as in Northern Europe, in Increasing Marketplaces and in Southern Europe which is displaying an encouraging restoration.

With eighteen% of the Group earnings, Manufacturing claimed a earnings of € 488 million, representing a lessen by -six.seven% when compared to Q1 2020 at continuous currency. The premier and principal demanding problem was the reduction of volumes in Germany, when the problem tended to stabilize when compared to past quarters in other geographies.

Money Companies & Coverage earnings was € 544 million, representing twenty% of the Group earnings. The Business grew by +seven.four% at continuous currency when compared to Q1 2020. The activity elevated in most of the geographies and was mainly driven by business enterprise transformation tasks in Northern Europe and new electronic banking tasks in Increasing Marketplaces.

Public Sector & Protection earnings was € 579 million representing 22% of the Group earnings, down -3.two% at continuous currency. The lessen was primarly because of to significant Significant Information challenge delays to subsequent quarters as perfectly as volume reduction in North The united states.

Telecom, Media & Technological know-how represented 14% of the Group earnings and attained € 373 million, a decline of -5.% at continuous currency when compared to Q1 2020, with a contrasted functionality by geography. While a large around the world deal with a world wide technology organization began to produce a favourable contribution to the Business, functionality was impacted by the foundation results of some large bargains carried out in 2020 and not repeated in 2021.

Profits created by Means & Companies in the very first quarter of 2021 attained € 395 million representing 15% of the Group earnings. The Business lessened by -six.two% at continuous currency when compared to Q1 2020 with incredibly unique trends throughout its elements. While a potent functionality was claimed with Utilities shoppers, the Business remained impacted by the demanding problem with shoppers working in Transportation and Hospitality in which the desire carries on to be afflicted by Covid-19.

Health care & Life Sciences earnings was € 313 million, up by +3.four% when compared to Q1 2020 at continuous currency and representing twelve% of the Group earnings. The Business grew in most geographies, notably in Northern Europe and in Central Europe, with only the exception of North The united states which did not reiterate in 2021 some large tasks sent in Q1 2020.

 

Q1 2021 earnings by Regional Small business Device

In € millionQ1 2021Q1 2020*Evolution at continuous currency
North The united states 564 622-9.four%
Northern Europe 730 688+six.two%
Central Europe 609 666-8.5%
Southern Europe 607 596+1.9%
Increasing Marketplaces 181 172+5.1%
Overall two,692 two,744 -1.9%
* At continuous currency

 

Profits in North The united states attained € 564 million, decreasing by -9.four% at continuous currency. The evolution was impacted by the timing of Covid final calendar year hitting North The united states later on than Europe, volume reduction in Public Sector and one particular time product sales in Q1 2020, which could not be repeated. In addition some tasks ended up 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 perfectly as Cybersecurity spaces.

Profits in Northern Europe was € 730 million, growing by +six.two% at continuous currency. Potent business enterprise advancement was recorded in Telecom, Media & Technological know-how as perfectly as in Money Companies & Coverage and Health care & Life Sciences. At the exact time difficulties ended up faced by Public Sector & Protection as perfectly as Means & Companies. Manufacturing remained stable when compared to final calendar year.

Central Europe claimed € 609 million of earnings, down -8.5% at continuous currency. This mainly resulted from a however demanding problem in the Unified Communications & Collaboration and also in Manufacturing. Thanks to the ramp-up of various new contracts, Health care & Life Sciences, Means & Companies and Public Sector & Protection recorded advancement, Money Companies & Coverage remained practically flat regardless of some new tasks with large German banking establishments.

Profits in Southern Europe attained € 607 million, growing by +1.9% when compared to Q1 2020 at continuous currency. The advancement of the business enterprise was mainly led by the superior functionality of Public Sector & Protection. Growth was also recorded in Money Companies & Coverage, Means & Companies and Health care & Life Sciences. The problem remained demanding in Telecom, Media & Technological know-how and to a lesser extent in Manufacturing.

Profits attained € 181 million in Increasing Marketplaces, up +5.1% at continuous currency. In most of the Industries the activity was more robust with new tasks sent far more especially in Money Companies & Coverage.

 

Commercial activity

Through the very first quarter of 2021, the Group order entry attained € two,596 million representing a E-book-to-Invoice ratio of 96%, when compared to one zero one% (at continuous currency) achieved more than the exact period of time final calendar year.

The principal new contracts signed more than the period of time ended up notably in Northern Europe with a large Chemical shopper (Manufacturing) and a European telco leader (Telecom, Media & Technological know-how), in Southern Europe with Pierre Fabre and a European leader in Prescription drugs (Health care & Life Sciences), a major multi-national automotive company (Manufacturing) and various contracts with Transportation shoppers (Means & Companies), and in Central Europe with a large European lender (Money Companies & Coverage) and Bundesagentur für Arbeit (Public Sector & Protection).

Contract renewals of the quarter included notably a major company in optical devices and a large beverage organization in Central Europe (Manufacturing), various Public Sector contracts in Southern Europe, and a Telecommunications organization in Increasing marketplaces.

In line with this dynamic industrial activity, the entire backlog amounted to € 23.two billion at the end of March 2021, +8% when compared to March 2020 at continuous currency. It represented two.1 yrs of earnings. The entire skilled pipeline attained € 8.four billion, +14% when compared to March 2020 at continuous currency. It represented 9 months of earnings.

 

Human resources

The overall headcount was 104,485 at the end of March 2021, stable when compared to 104,430 at the end of December 2020.

In the very first quarter of 2021, the Group hired four,215 employees, the the greater part of whom in offshore and nearshore countries.

 

Acquisitions

In line with its mid-time period strategy, the Group announces now the signature of 3 bolt-on acquisitions. All of them belong to the strategic places outlined by the Group to accelerate its business enterprise blend modify:

  • Digital, by the acquisition of Processia, a professional of Item Lifecycle Management (PLM)
  • Protection, by the acquisition of cryptovision, specialized in Cryptography options and goods
  • Significant Information and Analytics, by the acquisition of Ipsotek, a leader in Edge and Laptop or computer Eyesight options.

 

North The united states Audit Adhere to-up

The Organization made a assertion on April 1, 2021 about various matters connected to two US authorized entities. As a reminder, the statutory auditors recognized, as element of their 2020 audit, inner handle weaknesses more than the monetary reporting approach and earnings recognition in accordance with IFRS 15 major to various accounting faults, as perfectly as possible hazard of override of controls in this regard.

The two US authorized entities characterize eleven% of 2020 Group earnings, they are not connected to Syntel.

Even with the further audit processes carried out by the statutory auditors in these instances, they ended up not capable to execute inside the timeframe the essential function to get sufficient acceptable audit evidence in regard of earnings recognition or other connected account balances of these two US entities and on the absence of substance misstatements for the consolidated monetary statements. As a final result, the statutory auditors issued a skilled impression because of to a limitation of scope on the consolidated monetary statements for the calendar year 2020.

As of now the Group has not recognized substance misstatements for the 2020 consolidated monetary statements. Even so, the conjunction of various accounting faults and inner handle weaknesses deserves a really serious concentration and comply with-up by the Group. Therefore, the Organization has made the decision to carry out a entire accounting critique of the two US authorized entities and will give a standing update at the time of H1 success.

A potent remediation and avoidance strategy has been designed below the leadership of the Group General Secretary and is currently being executed. It addresses places these kinds of as preventive controls, tips and documentation, Human Means critique, skilling and group as perfectly as recognition and education. Complementary evaluation is ongoing to guarantee that the strategy is exhaustive.

 

Appendix

Profits at continuous scope and exchange charges reconciliation

In € millionQ1 2021Q1 2020% modify
Statutory earningstwo,692two,834-5.%
Exchange charges influence-ninety
Profits at continuous exchange chargestwo,692two,744-1.9%
Scope influencesixty
Exchange charges influence on acquired/disposed perimeters-3
Profits at continuous scope and exchange chargestwo,692two,801-3.9%

 

Scope results amounted to €+fifty seven million for earnings. They are mainly connected to:

  • the acquisitions closed in 2020 and Q1 2021 for €+67 million
  • the disposal of some particular Unified Conversation & Collaboration actions and Wivertis GmBH in 2020, amounting to a overall of €-ten million.

Currency exchange charges results negatively contributed to earnings for €-ninety million. They largely came from the depreciation of the American dollar, the Pound sterling and the Brazilian genuine in opposition to the Euro more than the period of time.

 

Meeting get in touch with

Nowadays, Tuesday, April twenty, 2021, the Group will keep a convention get in touch with in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in order to comment on Atos’ Q1 2021 earnings and solution issues from the monetary group.

You can be part of the webcast of the convention:

  • on internet, in the Traders part
  • by telephone with the dial-in, ten minutes prior the starting up time. You should note that if you want to be part of the webcast by telephone, you must sign up in progress of the convention applying the adhering to connection:

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

On registration, you will be presented with Participant Dial In Figures, a Direct Occasion Passcode and a one of a kind Registrant ID. Get in touch with reminders will also be despatched by using e-mail the day prior to the celebration.

Through the ten minutes prior to the starting of the get in touch with, you will will need to use the convention entry info presented in the e-mail acquired upon registration.

Soon after the convention, a replay of the webcast will be offered on atos.internet, in the Traders part.

 

Forthcoming situations

May perhaps twelve, 2021 Once-a-year General Conference

July 28, 2021 Initial semester 2021 success

October 21, 2021 Third quarter 2021 earnings

Download the push launch in pdf

Contacts

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

Media: Anette Rey +33 six 69 seventy nine 84 88 [email protected]

 

About Atos

Atos is a world wide leader in electronic transformation with one hundred and five,000 staff and annual earnings of more than € eleven billion. European quantity one particular in cybersecurity, cloud and significant functionality computing, the Group provides tailor-made end-to-end options for all industries in 71 countries. A pioneer in decarbonization expert services and goods, Atos is fully commited to a secure and decarbonized electronic for its consumers. Atos operates below the makes Atos and Atos|Syntel. Atos is a SE (Societas Europaea), mentioned on the CAC40 Paris stock index.

The goal of Atos is to help design and style the foreseeable future of the info place. Its know-how and expert services help the enhancement of awareness, instruction and investigation in a multicultural technique and contribute to the enhancement of scientific and technological excellence. Throughout the planet, the Group allows its shoppers and staff, and members of societies at large to live, function and acquire sustainably, in a safe and sound and secure info place.

Disclaimers

This document incorporates ahead-searching statements that require threats and uncertainties, which include references, relating to the Group’s anticipated advancement and profitability in the foreseeable future which may possibly noticeably effect the anticipated functionality indicated in the ahead-searching statements. These threats and uncertainties are joined to aspects out of the handle of the Organization and not precisely approximated, these kinds of as sector disorders or competition behaviors. Any ahead-searching statements made in this document are statements about Atos’ beliefs and expectations and need to be evaluated as these kinds of. Ahead-searching statements involve statements that may possibly relate to Atos’ options, aims, approaches, plans, foreseeable future situations, foreseeable future revenues or synergies, or functionality, and other info that is not historical info. True situations or success may possibly differ from these described in this document because of to a quantity of threats and uncertainties that are described in the 2020 Universal Registration Document submitted with the Autorité des Marchés Financiers (AMF) on April seven, 2021 below the registration quantity D.21-0269. Atos does not undertake, and especially disclaims, any obligation or accountability to update or amend any of the info earlier mentioned apart from as or else expected by law. This document does not include or constitute an give of Atos’ shares for sale or an invitation or inducement to devote in Atos’ shares in France, the United States of The united states or any other jurisdiction.

Atos consolidated and statutory monetary statements for the calendar year ended December 31, 2020, ended up accredited by the Board of Directors on February seventeen, 2021. Pursuing their audit processes on the consolidated monetary statements for the calendar year ended December 31, 2020, the statutory auditors issued on April 1, 2021 a skilled impression because of to a limitation on the scope of the audit as two US authorized entities representing eleven% of 2020 consolidated earnings that call for further diligences. For the sake of clarity, apart from for the qualification included in the statutory auditors’ report on the consolidated monetary statements for the calendar year ended December 31, 2020, the Group consolidated monetary statements are audited and the monetary statements included in the Universal Registration Document are unchanged when compared to the version posted by the Organization on February eighteen, 2021. As of now, the Group has not recognized misstatements on the two US entities that are substance for the consolidated monetary statements.

Profits organic advancement is introduced at continuous scope and exchange charges.

Industries involve Manufacturing (Aerospace, Automotive, Substances, Purchaser Packaged Merchandise (Food & Beverage), Discrete Manufacturing, Procedure Industries, Companies and Siemens), Money Companies & Coverage (Coverage, Banking & Money Companies, and Small business Transformation Companies), Public Sector & Protection (Protection, Instruction, Extraterritorial Businesses, Public Administration, Public Community Companies and Key Activities), Telecom, Media & Technological know-how (Higher Tech & Engineering, Media, and Telecom), Means & Companies (Strength, Retail, Transportation & Hospitality, and Utilities) and Health care & Life Sciences (Health care and Pharmaceutical).

Regional Small business Units involve 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 Increasing Marketplaces which include 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), 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), Key Activities and Global Shipping Facilities.