First quarter of 2021 – Atos

Elvera Bartels

Buy entry at € two,596 million

E book to invoice ratio at 96%

Earnings at € two,692 million

-1.9% at continuous forex

-three.9% organic and natural evolution

Electronic, Cloud, Safety & Decarbonization at 51% of earnings (46% in 2020)

Ongoing robust expansion in Cybersecurity and Significant Information

three bolt-on acquisitions accelerating Team transformation

2021 targets verified

Paris, April twenty, 2021

Atos, a world-wide chief in electronic transformation, these days announces the earnings of its first quarter of 2021.

Elie Girard, Atos CEO, mentioned: “After a record 12 months in 2020, industrial dynamism remained solid in the first quarter of the 12 months with a reserve-to-invoice ratio of 96%, and a pipeline of offerings +fourteen% earlier mentioned a 12 months back. Even though the Group’s earnings lessened for the last quarter thanks to the influence of Covid, down -1.9% at continuous forex compared to the earlier 12 months, our organization profile has created progress toward Electronic, Cloud, Safety, and Decarbonization with now 51% of Team earnings shipped in those strategic segments.

This organization repositioning is the end result of, first, our Spring transformation, and next, our application of bolt-on acquisitions. In that vein, I am delighted to announce these days three new acquisitions in the fields of Electronic Manufacturing and Solution Lifecycle Management (PLM), Cryptography and Cybersecurity, and Edge and Pc Eyesight. In buy to accelerate the change of our organization mix, the Team will activate a 3rd dimension and initiate a strategic portfolio evaluate of non-core assets.

We confirm the targets for the total 12 months 2021 issued on February 18. Moreover, the Team has resolved to interact into important ways of inside transformation, aiming at enriching the company’s electronic competencies and human money, reinforcing accountability, as perfectly as applying cultural variations in total regularity with our “raison d’être”.

I am thankful to all my Atos colleagues for embarking on this transformation journey with so a great deal electricity and enthusiasm.”

 

2021 Goals

The Team confirms these days its targets for its three essential money conditions, as said on February 18, 2021:

  • Earnings expansion at continuous forex: +three.5% to +4.%
  • Functioning margin level: +40 to 80bps versus 2020
  • No cost dollars circulation: €550m to €600m

 

Q1 2021 earnings by Marketplace

In € million Q1 2021 Q1 2020* Evolution at continuous forex
Manufacturing 488 522 -6.seven%
Economical Services & Insurance policy 544 506 +seven.4%
Community Sector & Protection 579 599 -three.two%
Telecom, Media & Engineering 373 393 -5.%
Sources & Services 395 421 -6.two%
Healthcare & Everyday living Sciences 313 303 +three.4%
Overall two,692 two,744 -1.9%
* At continuous forex

 

Earnings in the first quarter of 2021 attained € two,692 million, -1.9% compared to Q1 2020 at continuous forex, -three.9% organically.

Covid-19 was even now impacting Atos organization in excess of the quarter irrespective of great resilience in Economical Services & Insurance policy and in Healthcare & Everyday living Sciences, as perfectly as in Northern Europe, in Expanding Markets and in Southern Europe which is demonstrating an encouraging recovery.

With 18% of the Team earnings, Manufacturing documented a earnings of € 488 million, symbolizing a reduce by -6.seven% compared to Q1 2020 at continuous forex. The major and main tough problem was the reduction of volumes in Germany, whilst the problem tended to stabilize compared to previous quarters in other geographies.

Economical Services & Insurance policy earnings was € 544 million, symbolizing twenty% of the Team earnings. The Marketplace grew by +seven.4% at continuous forex compared to Q1 2020. The activity increased in most of the geographies and was largely pushed by organization transformation jobs in Northern Europe and new electronic banking jobs in Expanding Markets.

Community Sector & Protection earnings was € 579 million symbolizing 22% of the Team earnings, down -three.two% at continuous forex. The reduce was primarly thanks to considerable Significant Information job delays to subsequent quarters as perfectly as volume reduction in North America.

Telecom, Media & Engineering represented fourteen% of the Team earnings and attained € 373 million, a decline of -5.% at continuous forex compared to Q1 2020, with a contrasted efficiency by geography. Even though a huge around the world contract with a world-wide technological innovation corporation started out to produce a optimistic contribution to the Marketplace, efficiency was impacted by the base results of some huge specials executed in 2020 and not repeated in 2021.

Earnings created by Sources & Services in the first quarter of 2021 attained € 395 million symbolizing fifteen% of the Team earnings. The Marketplace lessened by -6.two% at continuous forex compared to Q1 2020 with extremely various trends throughout its factors. Even though a robust efficiency was documented with Utilities prospects, the Marketplace remained impacted by the tough problem with prospects functioning in Transportation and Hospitality the place the desire proceeds to be affected by Covid-19.

Healthcare & Everyday living Sciences earnings was € 313 million, up by +three.4% compared to Q1 2020 at continuous forex and symbolizing 12% of the Team earnings. The Marketplace 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 jobs shipped in Q1 2020.

 

Q1 2021 earnings by Regional Small business Device

In € million Q1 2021 Q1 2020* Evolution at continuous forex
North America 564 622 -9.4%
Northern Europe 730 688 +6.two%
Central Europe 609 666 -eight.5%
Southern Europe 607 596 +1.9%
Expanding Markets 181 172 +5.1%
Overall two,692 two,744 -1.9%
* At continuous forex

 

Earnings in North America attained € 564 million, lowering by -9.4% at continuous forex. The evolution was impacted by the timing of Covid last 12 months hitting North America later than Europe, volume reduction in Community Sector and 1 time gross sales in Q1 2020, which could not be repeated. In addition some jobs 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 Electronic transformation as perfectly as Cybersecurity areas.

Earnings in Northern Europe was € 730 million, rising by +6.two% at continuous forex. Potent organization expansion was recorded in Telecom, Media & Engineering as perfectly as in Economical Services & Insurance policy and Healthcare & Everyday living Sciences. At the similar time problems have been confronted by Community Sector & Protection as perfectly as Sources & Services. Manufacturing remained steady compared to last 12 months.

Central Europe documented € 609 million of earnings, down -eight.5% at continuous forex. This largely resulted from a even now tough problem in the Unified Communications & Collaboration and also in Manufacturing. Many thanks to the ramp-up of several new contracts, Healthcare & Everyday living Sciences, Sources & Services and Community Sector & Protection recorded expansion, Economical Services & Insurance policy remained virtually flat irrespective of some new jobs with huge German banking establishments.

Earnings in Southern Europe attained € 607 million, rising by +1.9% compared to Q1 2020 at continuous forex. The expansion of the organization was largely led by the great efficiency of Community Sector & Protection. Expansion was also recorded in Economical Services & Insurance policy, Sources & Services and Healthcare & Everyday living Sciences. The problem remained tough in Telecom, Media & Engineering and to a lesser extent in Manufacturing.

Earnings attained € 181 million in Expanding Markets, up +5.1% at continuous forex. In most of the Industries the activity was stronger with new jobs shipped a lot more significantly in Economical Services & Insurance policy.

 

Professional activity

Through the first quarter of 2021, the Team buy entry attained € two,596 million symbolizing a E book-to-Bill ratio of 96%, compared to one hundred and one% (at continuous forex) reached in excess of the similar period last 12 months.

The main new contracts signed in excess of the period have been notably in Northern Europe with a huge Chemical shopper (Manufacturing) and a European telco chief (Telecom, Media & Engineering), in Southern Europe with Pierre Fabre and a European chief in Prescription drugs (Healthcare & Everyday living Sciences), a main multi-countrywide automotive company (Manufacturing) and several contracts with Transportation prospects (Sources & Services), and in Central Europe with a huge European bank (Economical Services & Insurance policy) and Bundesagentur für Arbeit (Community Sector & Protection).

Deal renewals of the quarter provided notably a main company in optical instruments and a huge beverage corporation in Central Europe (Manufacturing), several Community Sector contracts in Southern Europe, and a Telecommunications corporation in Expanding marketplaces.

In line with this dynamic industrial activity, the total backlog amounted to € 23.two billion at the stop of March 2021, +eight% compared to March 2020 at continuous forex. It represented two.1 a long time of earnings. The total experienced pipeline attained € eight.4 billion, +fourteen% compared to March 2020 at continuous forex. It represented 9 months of earnings.

 

Human sources

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

In the first quarter of 2021, the Team hired 4,215 team, the the vast majority of whom in offshore and nearshore international locations.

 

Acquisitions

In line with its mid-phrase program, the Team announces these days the signature of three bolt-on acquisitions. All of them belong to the strategic locations outlined by the Team to accelerate its organization mix change:

  • Electronic, as a result of the acquisition of Processia, a specialist of Solution Lifecycle Management (PLM)
  • Safety, as a result of the acquisition of cryptovision, specialised in Cryptography options and products and solutions
  • Significant Information and Analytics, as a result of the acquisition of Ipsotek, a chief in Edge and Pc Eyesight options.

 

North America Audit Observe-up

The Firm created a assertion on April 1, 2021 relating to several matters related to two US authorized entities. As a reminder, the statutory auditors recognized, as aspect of their 2020 audit, inside management weaknesses in excess of the money reporting process and earnings recognition in accordance with IFRS fifteen main to several accounting glitches, as perfectly as prospective hazard of override of controls in this regard.

The two US authorized entities represent eleven% of 2020 Team earnings, they are not related to Syntel.

Irrespective of the supplemental audit processes carried out by the statutory auditors in those conditions, they have been not in a position to perform inside of the timeframe the important operate to get hold of enough ideal audit evidence in regard of earnings recognition or other related account balances of these two US entities and on the absence of materials misstatements for the consolidated money statements. As a end result, the statutory auditors issued a experienced belief thanks to a limitation of scope on the consolidated money statements for the 12 months 2020.

As of these days the Team has not recognized materials misstatements for the 2020 consolidated money statements. On the other hand, the conjunction of several accounting glitches and inside management weaknesses deserves a significant concentrate and adhere to-up by the Team. For that reason, the Firm has resolved to perform a total accounting evaluate of the two US authorized entities and will give a standing update at the time of H1 effects.

A robust remediation and prevention program has been made below the management of the Team Normal Secretary and is currently being applied. It addresses locations this kind of as preventive controls, tips and documentation, Human Sources evaluate, skilling and business as perfectly as consciousness and teaching. Complementary assessment is ongoing to guarantee that the program is exhaustive.

 

Appendix

Earnings at continuous scope and exchange costs reconciliation

In € million Q1 2021 Q1 2020 % change
Statutory earnings two,692 two,834 -5.%
Exchange costs influence -ninety
Earnings at continuous exchange costs two,692 two,744 -1.9%
Scope influence sixty
Exchange costs influence on acquired/disposed perimeters -three
Earnings at continuous scope and exchange costs two,692 two,801 -three.9%

 

Scope results amounted to €+57 million for earnings. They are largely related to:

  • the acquisitions closed in 2020 and Q1 2021 for €+67 million
  • the disposal of some distinct Unified Communication & Collaboration functions and Wivertis GmBH in 2020, amounting to a whole of €-ten million.

Forex exchange costs results negatively contributed to earnings for €-ninety million. They primarily arrived from the depreciation of the American dollar, the Pound sterling and the Brazilian serious from the Euro in excess of the period.

 

Convention connect with

Currently, Tuesday, April twenty, 2021, the Team will maintain a conference connect with in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in buy to remark on Atos’ Q1 2021 earnings and reply queries from the money local community.

You can sign up for the webcast of the conference:

  • on internet, in the Buyers section
  • by telephone with the dial-in, ten minutes prior the starting off time. Please take note that if you want to sign up for the webcast by telephone, you have to register in advance of the conference using the pursuing website link:

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

Upon registration, you will be supplied with Participant Dial In Quantities, a Direct Event Passcode and a exclusive Registrant ID. Get in touch with reminders will also be despatched by way of e mail the day prior to the occasion.

Through the ten minutes prior to the starting of the connect with, you will want to use the conference entry details supplied in the e mail acquired upon registration.

Soon after the conference, a replay of the webcast will be readily available on atos.internet, in the Buyers section.

 

Forthcoming events

May 12, 2021 Annual Normal Conference

July 28, 2021 To start with semester 2021 effects

October 21, 2021 Third quarter 2021 earnings

Down load the push launch in pdf

Contacts

Trader Relations: Gilles Arditti +33 6 eleven sixty nine eighty one seventy four [email protected]

Media: Anette Rey +33 6 sixty nine seventy nine 84 88 [email protected]

 

About Atos

Atos is a world-wide chief in electronic transformation with one hundred and five,000 staff members and yearly earnings of in excess of € eleven billion. European number 1 in cybersecurity, cloud and substantial efficiency computing, the Team provides tailor-made stop-to-stop options for all industries in seventy one international locations. A pioneer in decarbonization providers and products and solutions, Atos is dedicated to a protected and decarbonized electronic for its clientele. Atos operates below the manufacturers Atos and Atos|Syntel. Atos is a SE (Societas Europaea), stated on the CAC40 Paris inventory index.

The intent of Atos is to aid style the foreseeable future of the details room. Its know-how and providers support the enhancement of expertise, schooling and investigation in a multicultural strategy and lead to the enhancement of scientific and technological excellence. Across the planet, the Team allows its prospects and staff members, and members of societies at huge to dwell, operate and create sustainably, in a risk-free and protected details room.

Disclaimers

This doc includes forward-searching statements that include dangers and uncertainties, like references, concerning the Group’s envisioned expansion and profitability in the foreseeable future which may significantly influence the envisioned efficiency indicated in the forward-searching statements. These dangers and uncertainties are joined to components out of the management of the Firm and not precisely estimated, this kind of as sector disorders or opponents behaviors. Any forward-searching statements created in this doc are statements about Atos’ beliefs and anticipations and need to be evaluated as this kind of. Ahead-searching statements consist of statements that may relate to Atos’ programs, targets, approaches, goals, foreseeable future events, foreseeable future revenues or synergies, or efficiency, and other details that is not historical details. Real events or effects may vary from those described in this doc thanks to a number of dangers 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 number D.21-0269. Atos does not undertake, and particularly disclaims, any obligation or obligation to update or amend any of the details earlier mentioned other than as otherwise necessary by regulation. This doc does not comprise or constitute an give of Atos’ shares for sale or an invitation or inducement to invest in Atos’ shares in France, the United States of America or any other jurisdiction.

Atos consolidated and statutory money statements for the 12 months ended December 31, 2020, have been authorised by the Board of Administrators on February seventeen, 2021. Following their audit processes on the consolidated money statements for the 12 months ended December 31, 2020, the statutory auditors issued on April 1, 2021 a experienced belief thanks to a limitation on the scope of the audit as two US authorized entities symbolizing eleven% of 2020 consolidated earnings that have to have supplemental diligences. For the sake of clarity, other than for the qualification provided in the statutory auditors’ report on the consolidated money statements for the 12 months ended December 31, 2020, the Team consolidated money statements are audited and the money statements provided in the Universal Registration Document are unchanged compared to the version published by the Firm on February 18, 2021. As of these days, the Team has not recognized misstatements on the two US entities that are materials for the consolidated money statements.

Earnings organic and natural expansion is offered at continuous scope and exchange costs.

Industries consist of Manufacturing (Aerospace, Automotive, Chemicals, Customer Packaged Products (Food items & Beverage), Discrete Manufacturing, Approach Industries, Services and Siemens), Economical Services & Insurance policy (Insurance policy, Banking & Economical Services, and Small business Transformation Services), Community Sector & Protection (Protection, Education, Extraterritorial Organizations, Community Administration, Community Group Services and Major Gatherings), Telecom, Media & Engineering (Large Tech & Engineering, Media, and Telecom), Sources & Services (Strength, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Everyday living Sciences (Healthcare and Pharmaceutical).

Regional Small business Units consist of North America (United states, 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 Expanding Markets like 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), 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), Major Gatherings and World-wide Delivery Centers.

 

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