Third quarter of 2021 – Atos

Earnings steady at € two,666 million
at regular currency

Buy entry at € two,399 million

Guide to monthly bill ratio at ninety%

Digital, Cloud, Safety & Decarbonization at 52% of profits

Net organic boost of talents by +one,500

Group Transformation courses shifting at pace

2021 goals verified

Paris, October twenty, 2021 – Atos, a world-wide chief in electronic transformation, right now announces the profits of its 3rd quarter of 2021.

In the 3rd quarter, the Group ongoing to stabilize its profits at regular currency, right before progressing into optimistic territory. Marketplace demand from customers put up crisis remained pretty dynamic in Cloud application migration and enhancement and the Digital transformation of company processes by means of automation, robotisation and synthetic intelligence. In all areas, buyers now need electronic answers with the highest criteria of security, sustainability and inclusiveness, 3 domains where Atos delivers exclusive technological abilities.

The Group ongoing to pursue its deep and extensive company transformation program, hiring a report selection of new skills in a pretty very hot talent market place, ensuing for the very first time in a net organic boost of +one,500 staff members. This will assist fuel our progress ambitions. In the exact vein, we bolstered our partnerships with Public Cloud hyperscalers though hanging new ones with superior progress Digital platforms.

Our transformation courses declared in July are shifting at pace on all fronts. The German restructuring is effectively less than way. The program to search for partners on c. twenty% of the Group profits is getting executed with sophisticated discussions on our Unified Communications & Collaboration asset. The acquisition of a new electronic bolt-on asset has been signed. Eventually, our LEAP cultural alter system is ramping up.

The Group Administration desires to thank our 107,000 colleagues for their tremendous guidance for and perseverance to this transformation journey, which is location the correct foundations for achieving our mid-time period targets.

Q3 2021 profits by Sector

Earnings in the 3rd quarter of 2021 arrived at € two,666 million, steady when compared to Q3 2020 at regular currency, and decreasing by -two.three% organically. The important segments to which the Group directs its transformation – Digital, Cloud, Safety and Decarbonization – executed a powerful progress though profits was nevertheless impacted in Basic Infrastructure.

Manufacturing documented a profits of € 518 million, representing 19% of the Group profits and escalating by +10.four% when compared to Q3 2020 at regular currency. This was an acceleration of its restoration just after a 2nd quarter previously growing by +one.8%. Each individual geography contributed to this powerful progress, pushed by a repositioning of the Sector on bigger price electronic initiatives and answers to meet up with consumer requires. Extra specifically, the Sector improved company in application initiatives ran in Automotive and Aerospace, as effectively as digitization of industrial processes like IoT centered intelligent producing offerings.

Financial Providers & Insurance profits was € 524 million for the duration of the 3rd quarter of 2021, representing twenty% of the Group profits. Expanding by +two.three% when compared to Q3 2020 at regular currency, the Sector verified its general performance of the very first semester, specially in the Insurance sector though exercise with Banking institutions was far more contrasted. Small business in this Sector ongoing to be led by electronic transformation initiatives and a powerful demand from customers for cybersecurity abilities, the two protected by the offerings of the Group and the synergies with the newly acquired providers this sort of as Eagle Creek, Digital.Safety, and Paladion.

Public Sector & Defense arrived at € 553 million representing 21% of the Group profits and decreasing yr-on-yr at regular currency by -eleven.9% just after a +thirteen.% in Q3 2020. This minimize arrived from volume reduction in massive Significant Effectiveness Computing (HPC) initiatives delivered past yr in most of the geographies and far more specifically in Northern Europe, as effectively as the past quarter of yr-on-yr effect from the massive reduction of scope of the Texas Office of Details Resources agreement renewed past yr.

Telecom, Media & Technologies represented thirteen% of the Group profits and arrived at € 355 million, decreasing by -two.% when compared to Q3 2020 at regular currency. Just after a optimistic 2nd quarter, the Sector experienced a far more challenging 3rd quarter as traits had been combined amongst its diverse sectors. When initiatives in the Media sector grew many thanks to an improved volume in North The us, the predicament was far more challenging in Significant Tech & Engineering as effectively as in Telecom.

Earnings generated by Resources & Providers in the 3rd quarter of 2021 arrived at € 383 million representing 14% of the whole profits of the Group. The marketplace managed to get better and grew by +one.5% when compared to Q3 2020 at regular currency just after a minimize by -two.5% in the 2nd quarter of 2021. The predicament remained contrasted across its parts, with dynamism in Transportation & Hospitality, specially in North The us and Southern Europe, though
the Retail and Electrical power & Utilities sectors declined thanks to HPC revenue not recurring this yr when compared to 2020.

Symbolizing 12% of the Group profits with € 333 million, Health care & Lifestyle Sciences grew by +5.one% in the 3rd quarter of 2021 yr-on-yr at regular currency led by Northern Europe, Southern Europe, and Escalating Markets. In specific, the Health care sector recorded a pretty powerful general performance when compared to the 3rd quarter of 2020, which far more than compensated the decrease in Pharmaceutical.

Q3 2021 profits by Regional Small business Device

The majority of the Areas benefited from the rebound of the demand from customers for Digital transformation, Cloud, and Cybersecurity in the sectors that have been impacted the most past yr this sort of as Manufacturing and Hospitality & Transportation. They benefited also from a good momentum in Health care & Lifestyle Sciences and Financial Providers & Insurance. Combined with synergies initiated from the new acquisitions, the Group managed to compensate the decrease in Public Sector & Defense coming from volume reduction and some massive HPCs delivered past yr in a number of geographies.

Earnings progress at regular currency was powerful in Southern Europe and in Escalating Markets.

In Southern Europe, the exercise was solid in most of the Industries like Public Sector & Defense.

Escalating Markets ongoing on its craze at circa +5% progress led by the ramp-up of initiatives in Asia in Health care & Lifestyle Sciences as effectively as in Telecom, Media & Technologies in Brazil and in Manufacturing by means of volume boost and new initiatives.

North The us managed to deliver progress at regular currency in all Industries apart from Public Sector & Defense impacted by the Texas Office of Details Resources agreement and by Unified Communications & Collaboration functions.

Northern Europe recorded a powerful exercise in Manufacturing with Digital Transformation initiatives as effectively as in Health care & Lifestyle Sciences. But this geography confronted unfavourable foundation effect on Significant Effectiveness Computing in Public Sector & Defense.

Eventually, Central Europe appreciably improved its profits craze when compared to -10.three% in Q2 many thanks to Manufacturing ramp-up of initiatives and new contracts.

Business exercise

In the course of the 3rd quarter of 2021, the Group purchase entry arrived at € two,399 million representing a Guide-to-Bill ratio of ninety%.

The principal new contracts signed more than the time period provided notably:

• in Manufacturing a agreement with a massive European Automotive provider for the migration to S/four Hana Cloud (Central Europe)
• in Financial Providers & Insurance a agreement with a US world-wide Insurance company for a migration to Public Cloud combining Atos, Syntel, and Maven Wave capabilities (North The us)
• in Public Sector & Defense a massive agreement with a Public authority for a Digital Transformation venture (Northern Europe)
• in Telecom, Media & Technologies a Digital Transformation agreement embarking Cloud, Safety, and Decarbonization expert services with a European Significant Tech chief (Northern Europe)
• in Resources & Providers a agreement with a massive European Utility for distribution network administration and regulate combining SAP and Atos Electrical power answers (Southern Europe) and
• in Health care & Lifestyle Sciences a agreement with a massive Health care chief for the enhancement of electronic device to increase affected individual encounter (North The us).

Agreement renewals of the quarter provided, in Manufacturing a massive European car manufacturer with an extension to guidance consumer in creating knowledge-centered Cloud expert services (Southern Europe), in Financial Providers & Insurance a key lender to migrate elaborate knowledge middle and applications (Escalating Markets), and a scope extension with a massive retailer Resources & Providers (North The us).

Complete backlog amounted to € 23.four billion at the conclude of September 2021, marginally down when compared to June 2021. It represented two.one yrs of profits. Full competent pipeline arrived at € seven.four billion steady when compared to June 2021. It represented seven.9 months of profits.

Human methods

The whole headcount was 106,665 at the conclude of September 2021, an boost of +one,857, of which for the very first time +one,485 (+one.four%) organically in purchase to guidance the speedy growing company segments (Digital, Cloud, Safety and Decarbonization) though the Group ongoing to minimize the selection of employees in Infrastructure functions by means of automation and robotization.

In the 3rd quarter of 2021, the Group employed 8,019 employees, the majority of whom in offshore and nearshore nations around the world. Attrition LTM (Final Twelve Months) arrived at 16% at the conclude of September 2021.

2021 goals verified

The Group confirms all its goals for 2021:

• Earnings progress at regular currency: steady
• Working margin amount: 6%
• No cost cash movement: optimistic.

Acquisition

The Group right now announces the acquisition of DataSentics, a European firm established in 2016 and found in Prague. DataSentics specializes in Device Discovering and Cloud Knowledge engineering. The firm operates on unifying knowledge science and engineering across Europe. It employs ninety knowledge researchers. Its offerings will instantly complement Artificial Intelligence factory system of Atos to guidance 5G and Edge offerings and accelerate important company use instances in Ma
nufacturing, Retail, and Telecommunications.

Software to search for partners to optimize Group property

As aspect of its transformation and to accelerate its reprofiling in direction of Digital, Cloud, Safety & Decarbonization, the Group declared on July 27, 2021 the start of a massive system to search for partners on a volume of company representing c. twenty% of its latest profits.

On Unified Communications & Collaboration, sophisticated discussions are at the moment ongoing.

On Knowledge Middle web hosting and related functions, a official course of action has been launched and various indications of fascination have been gained.

Appendix

Earnings at regular scope and trade fees reconciliation

Scope effects amounted to €+sixty three million for profits. They are predominantly connected to:

• the acquisitions shut in H2 2020 and in 2021 for €+68 million and
• the disposal of some particular Unified Communications & Collaboration functions and Wivertis GmBH in 2020, amounting for a whole of €-5 million.

Forex trade amount effects positively contributed to profits for €+22 million. They typically arrived from the appreciation of the British Pound versus the Euro more than the time period.

Conference connect with

Tomorrow, Thursday, October 21, 2021, the Group will hold a convention connect with in English at 08:00 am (CET – Paris), chaired by Elie Girard, CEO, in purchase to remark on Atos’ Q3 2021 profits and solution issues from the fiscal local community.

You can be part of the webcast of the convention:

• by means of the next connection: https://edge.media-server.com/mmc/p/9dtvfypf
• by phone with the dial-in, 10 minutes prior the starting up time. You should take note that if you want to be part of the webcast by phone, you need to sign up in progress of the convention working with the next connection:

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

On registration, you will be provided with Participant Dial In Quantities, a Direct Celebration Passcode and a exclusive Registrant ID. Phone reminders will also be despatched by means of e-mail the day prior to the event.

In the course of the 10 minutes prior to the beginning of the connect with, you will will need to use the convention obtain info provided in the e-mail gained on registration.

Just after the convention, a replay of the webcast will be accessible on atos.net, in the Traders portion.

Forthcoming functions

February 28, 2022 (Just after Marketplace Near) Complete Calendar year 2021 benefits

April 27, 2022 (Right before Marketplace Opening) Initially Quarter 2022 profits

Might 18, 2022 Yearly General Assembly

July 27, 2022 (Right before Marketplace Opening) Initially semester 2022 benefits

Contacts

Investor Relations: Gilles Arditti – +33 6 eleven sixty nine 81 74 – [email protected]

Media: Anette Rey – +33 6 sixty nine seventy nine eighty four 88 – [email protected]

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About Atos

Atos is a world-wide chief in electronic transformation with 107,000 staff members and yearly profits of more than € eleven billion. European selection one in cybersecurity, cloud and superior general performance computing, the Group gives tailor-made conclude-to-conclude answers for all industries in 71 nations around the world. A pioneer in decarbonization expert services and merchandise, Atos is fully commited to a protected and decarbonized electronic for its clients. Atos is an SE (Societas Europaea), shown on Euronext Paris and provided in the CAC forty ESG and Up coming twenty indexes.

The objective of Atos is to assist design the long term of the info house. Its abilities and expert services guidance the enhancement of know-how, education and learning and analysis in a multicultural solution and lead to the enhancement of scientific and technological excellence. Throughout the environment, the Group enables its buyers and staff members, and customers of societies at massive to live, function and develop sustainably, in a safe and protected info house.

Disclaimers

This doc consists of ahead-wanting statements that entail hazards and uncertainties, like references, concerning the Group’s expected progress and profitability in the long term which could appreciably effects the expected general performance indicated in the ahead-wanting statements. These hazards and uncertainties are joined to things out of the regulate of the Company and not exactly estimated, this sort of as market place disorders or competitor’s behaviors. Any ahead-wanting statements designed in this doc are statements about Atos’ beliefs and anticipations and should be evaluated as this sort of. Ahead-wanting statements include statements that could relate to Atos’ options, goals, strategies, ambitions, long term functions, long term revenues or synergies, or general performance, and other info that is not historic info. True functions or benefits could differ from these explained in this doc thanks to a selection of hazards and uncertainties that are explained in the 2020 Universal Registration Document submitted with the Autorité des Marchés Financiers (AMF) on April seven, 2021 less than the registration selection D.21-0269 and the Modification to the 2020 Universal Registration Files submitted with the AMF on July 30, 2021 less than selection D.21-0269-A01. Atos does not undertake, and specially disclaims, any obligation or accountability to update or amend any of the info above apart from as otherwise required by legislation. This doc does not comprise or constitute an offer of Atos’ shares for sale or an invitation or inducement to commit in Atos’ shares in France, the United States of The us or any other jurisdiction.

Earnings organic progress is presented at regular scope and trade fees.

Industries include Manufacturing (Aerospace, Automotive, Chemicals, Purchaser Packaged Products (Foods & Beverage), Discrete Manufacturing, Procedure Industries, Providers and Siemens), Financial Providers & Insurance (Insurance, Banking & Financial Providers, and Small business Transformation Providers), Public Secto
r & Defense (Defense, Training, Extraterritorial Businesses, Public Administration, Public Community Providers and Main Events), Telecom, Media & Technologies (Significant Tech & Engineering, Media, and Telecom), Resources & Providers (Electrical power, Retail, Transportation & Hospitality, and Utilities) and Health care & Lifestyle Sciences (Health care and Pharmaceutical).

Regional Small business Units include North The us (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 Escalating Markets like Asia-Pacific (Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand), South The us (Argentina, Brazil, Chile, Colombia, Uruguay, and Peru), Middle 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), Main Events and International Supply Facilities.