Atos announces preliminary 2021 financial figures below objectives

Elvera Bartels

Paris, January 10, 2022

Referring to EU regulation No. 596/2014, which offers that issuers shall advise the general public as soon as achievable of inside of info specifically applicable to them, Atos announces nowadays that the targets communicated to the market place on July twelve, 2021 will not be achieved because of to several substantial outcomes described herein beneath.

The figures in this press launch, such as the income growth at continuous forex, functioning margin price and free money movement for the yr 2021, are not finalized at this stage nor audited. The comprehensive entire yr figures for 2021, such as possible impairment more to the assessment of the recoverable volume of belongings, will be printed as prepared on February 28, 2022 (soon after market place close).

Rodolphe Belmer, Atos CEO, said: “I joined the Company very last 7 days, at the time when the figures were being getting collected and consolidated. The current point out of fiscal perception potential customers us to the obligation to concern a income warning nowadays because of to the substantial variance in the fiscal KPIs. Having said that, most of the goods fundamental this serious gap are non-recurring. In distinct, the massive gap in Free Dollars Movement largely stems from doing work money.

I am confident that the Company has the required belongings and all the abilities to function a swift turnaround. In this context, I will current at the finish of February a new business to the Board of Directors, and in Q2 a program that will reveal the drivers of this turnaround and the aim on successful growth and worth development.”

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Earnings growth

Earnings in 2021 arrived at c. € 10.8 billion, a reduce of c. -two.4% at continuous forex.

The variance compared to the entire-yr objective of “stable” income arrived from:

  • The unexpected reassessment of the expense to go on transformation, replatforming and operations of a fiscal providers BPO deal, signed in 2018 for 15 years with a massive Uk fiscal institution, leading to a important revision of the completion price on the challenge, at the finish of December 2021, and for that reason translating into a negative income effect in 2021.Influence on entire-yr income growth: c. 70 bps
  • Large Info/HPCs and Unified Communications & Collaboration challenge slippages from finish of 2021 to 2022 because of to offer chain worries as nicely as to consumer postponements in Community Sector & Defense in the Netherlands and the Uk.Influence on entire-yr income growth: c. 90 bps
  • Hold off to 2022 of final agreements with several massive customers to get compensated for extra work performed in 2021. These amendments, expected to be signed in December, would have led to further income in 2021.Influence on entire-yr income growth: 30 bps and
  • The lowered level of low margin components and application resale in December 2021.Influence on entire-yr income growth: c. 50 bps.

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Working margin

Working margin amounted to c. 4% of income in 2021. The variance compared to the objective of c. six% arrived largely from:

  • The reduction of the income booked and further expenditures in 2021 on the massive BPO deal in the Uk talked about previously mentioned.Influence on functioning margin price: c. 90 bps

On top of that, the operate stage of the BPO deal on the remaining future twelve years requires the provision of c. € 65 million for upcoming losses less than “Other Working Cash flow and Expenses”.

  • Undertaking slippages to 2022 because of to offer chain worries as nicely as to consumer postponements.Influence on functioning margin price: c. 30 bps
  • Hold off to 2022 of final agreements with several massive customers as talked about previously mentioned to get compensated for extra work performed in 2021.
    Influence on functioning margin price: c. 30 bps and
  • Larger expenditures than predicted in 2021 on settlements to close disputes with several customers at yr-finish.Influence on functioning margin price: c. forty bps.

 

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Free Dollars Movement

Free Dollars Movement is estimated at c. €-420 million. The variance compared to the objective of beneficial free money movement is largely because of to doing work money and in distinct to:

  • € two hundred million from accelerated provider payments at the finish of 2021, as a consequence of unforeseen tension from essential suppliers and subcontractors in the final weeks of 2021
  • € one hundred fifty million of consumer collections postponed from finish of 2021 to 2022 because of to the late acceptance of jobs by several customers which ultimately prevented collection by yr-finish
  • € 60 million, of which € 30 million linked to advance payments from customers and € 30 million effect from the massive BPO deal in the Uk talked about herein previously mentioned and
  • € 30 million from the reduced level of gross sales of receivables.

As a reminder, the entire yr Free Dollars Movement figure of €-420 million also comprises the effect of the German turnaround program for €-a hundred and eighty million and a reduction of advance payments from customers for €-two hundred million, as communicated on July twelve, 2021.

The Internet Debt at the finish of December 2021 is expected to be at c. €-1.two billion leading to a Internet Debt on OMDA (less than IFRS) ratio of c. 1.1. Taking into account the Worldline shares covering the Optional Trade Bond, Internet Debt on OMDA ratio is estimated at c. .8.

The targets for 2022 will be printed on February 28, 2022 at the situation of the entire-yr 2021 benefits launch.

 

Obtain the PDF variation listed here

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Appendix

2021 Aims 2021 Provisional figures
Earnings growth at continuous forex Stable c. -two.4%
% Working Margin to income c. six% c. 4%
Free Dollars Movement Beneficial c. €-420 million

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Convention get in touch with

The Administration of Atos invitations you to an worldwide convention get in touch with, on Monday, January 10, 2022 at 08:00 am (CET – Paris) chaired by Rodolphe Belmer, CEO.

You can sign up for the webcast of the convention:

  • by using the pursuing hyperlink: https://edge.media-server.com/mmc/p/no379pbs
  • by telephone with the dial-in, 10 minutes prior the starting off time. Please observe that if you want to sign up for the webcast by telephone, you should sign-up in advance of the convention using the pursuing hyperlink: http://emea.directeventreg.com/registration/7025829

Upon registration, you will be offered with Participant Dial In Quantities, a Immediate Function Passcode and a one of a kind Registrant ID. Through the 10 minutes prior to the commencing of the get in touch with, you will require to use the convention access info offered in the e mail been given upon registration.

Soon after the convention, a replay of the webcast will be obtainable on atos.web, in the Investors area.

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Forthcoming events

February 28, 2022 (Soon after Sector Close) Whole 12 months 2021 benefits

April 27, 2022 (Ahead of Sector Opening) 1st Quarter 2022 income

Might 18, 2022 Annual Standard Meeting

July 27, 2022 (Ahead of Sector Opening) 1st semester 2022 benefits

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Contacts

Investor Relations: Gilles Arditti – +33 1 seventy three 26 00 66 – [email protected]

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

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About Atos

Atos is a world-wide leader in digital transformation with 107,000 staff members and yearly income of about € eleven billion. European selection a single in cybersecurity, cloud and substantial overall performance computing, the Group offers tailored finish-to-finish answers for all industries in seventy one international locations. A pioneer in decarbonization providers and products and solutions, Atos is dedicated to a safe and decarbonized digital for its customers. Atos is an SE (Societas Europaea), outlined on Euronext Paris and involved in the CAC forty ESG and Upcoming 20 indexes.

The objective of Atos is to aid style and design the upcoming of the info area. Its skills and providers aid the development of know-how, schooling and analysis in a multicultural technique and add to the development of scientific and technological excellence. Throughout the globe, the Group permits its customers and staff members, and users of societies at massive to are living, work and develop sustainably, in a risk-free and safe info area.

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Disclaimers

This doc contains forward-seeking statements that include challenges and uncertainties, such as references, regarding the Group’s expected growth and profitability in the upcoming which may possibly noticeably effect the expected overall performance indicated in the forward-seeking statements. These challenges and uncertainties are connected to aspects out of the manage of the Company and not precisely estimated, this sort of as market place circumstances or competitor’s behaviors. Any forward-seeking statements manufactured in this doc are statements about Atos’ beliefs and anticipations and need to be evaluated as this sort of. Forward-seeking statements incorporate statements that may possibly relate to Atos’ programs, targets, procedures, goals, upcoming events, upcoming revenues or synergies, or overall performance, and other info that is not historical info. Precise events or benefits may possibly vary from individuals described in this doc because of to a selection of challenges and uncertainties that are described within the 2020 Universal Registration Document submitted with the Autorité des Marchés Financiers (AMF) on April 7, 2021 less than the registration selection D.21-0269 and the Modification to the 2020 Universal Registration Documents submitted with the AMF on July 30, 2021 less than selection D.21-0269-A01. Atos does not undertake, and precisely disclaims, any obligation or obligation to update or amend any of the info previously mentioned besides as if not needed by law. This doc does not comprise or constitute an give of Atos’ shares for sale or an invitation or inducement to commit in Atos’ shares in France, the United States of The usa or any other jurisdiction.

Earnings natural growth is presented at continuous scope and exchange fees.

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