Atos provides additional information on its 2021 financial figures

Paris, February 9th, 2022 – Referring to EU regulation No. 596/2014, which provides that issuers shall inform the public as soon as possible of inside information directly relevant to them, Atos provides today additional information on its 2021 financial figures, following its January 10, 2022, preliminary announcement.

In the context of an accelerated move to the cloud, the Group decided in 2021 to reposition its activity portfolio and to focus on Digital, Cloud, Security and Decarbonization activities, away from classic infrastructure services and Unified Communications & Collaboration. In light of this change in strategy and the refocusing on growing services, the Group conducted a comprehensive analysis of future recoverability of assets and profitability of legacy contracts. As announced in January 10, 2022, this analysis lead to impairment of assets, mainly pertaining to legacy activities.

Today, the Group is in a position to indicate that impairment of goodwill and other non-current assets will amount to c. €1.9 billion. As a direct consequence, an impairment will be booked to reflect the lower recognition of the deferred tax assets of the Group.

The Group will also book in H2 2021 an impairment of contract assets, reserves for bad debts and provision for future losses for up to c. €0.5 billion resulting mainly from the effects mentioned above and the reassessment of contracts including the financial services BPO contract in the UK.

All impacts described above will be reported in the Other Operating Income and Expense section of the Group’s 2021 consolidated P&L, with no impact on the Group’s operating margin and cash flow.

The Group estimates that its 2021 Revenue will be c. €10.8 billion, a decrease of c.-2.6% at constant currency (versus c.-2.4% announced on January 10) and the Operating Margin to be c. 3.5% (versus c.4% announced on January 10) mainly due to final assessment of the financial services BPO contract in the UK. The Free Cash Flow remains unchanged at c. €-420 million.

The preliminary figures in this press release were reviewed by Atos’ board of directors on February 9, 2022 and are not audited.

The Group will publish its 2021 results as well as its objectives for 2022 on February 28, 2022.

This comprehensive review and the resulting impairments are a key step for the Group, which can now fully focus on its turnaround plan to be shared with investors during the capital markets day in Q2.

Conference call

Atos’ management invites you to an international conference call, on Thursday, February 10, 2022 at 08:00 am (CET – Paris) chaired by Rodolphe Belmer, CEO.

You can join the webcast of the conference:

• via the following link: https://edge.media-server.com/mmc/p/m8oysczb

• by telephone with the dial-in, 10 minutes prior the starting time. Please note that if you want to join the webcast by telephone, you must register in advance of the conference using the following link: http://services.choruscall.it/DiamondPassRegistration/register?confirmationNumber=2974996&linkSecurityString=323a16610

Upon registration, you will be provided with Participant Dial In Numbers, a Direct Event Passcode and a unique Registrant ID.
During the 10 minutes prior to the beginning of the call, you will need to use the conference access information provided in the email received upon registration.

After the conference, a replay of the webcast will be available on atos.net, in the Investors section.

Appendix

Forthcoming events

February 28, 2022 (After Market Close)                 Full Year 2021 results
April 27, 2022 (Before Market Opening)                First Quarter 2022 revenue
May 18, 2022                                                 Annual General Meeting
July 27, 2022 (Before Market Opening)                 First semester 2022 results

Contacts
Investor Relations: investors@atos.net
Press: Anette Rey - +33 6 69 79 84 88 - anette.rey@atos.net

About Atos

Atos is a global leader in digital transformation with 107,000 employees and annual revenue of over € 11 billion. European number one in cybersecurity, cloud and high performance computing, the Group provides tailored end-to-end solutions for all industries in 71 countries. A pioneer in decarbonization services and products, Atos is committed to a secure and decarbonized digital for its clients. Atos is an SE (Societas Europaea), listed on Euronext Paris and included in the CAC 40 ESG and Next 20 indexes.

The purpose of Atos is to help design the future of the information space. Its expertise and services support the development of knowledge, education and research in a multicultural approach and contribute to the development of scientific and technological excellence. Across the world, the Group enables its customers and employees, and members of societies at large to live, work and develop sustainably, in a safe and secure information space.

Disclaimers

This document contains forward-looking statements that involve risks and uncertainties, including references, concerning the Group's expected growth and profitability in the future which may significantly impact the expected performance indicated in the forward-looking statements. These risks and uncertainties are linked to factors out of the control of the Company and not precisely estimated, such as market conditions or competitor's behaviors. Any forward-looking statements made in this document are statements about Atos’ beliefs and expectations and should be evaluated as such. Forward-looking statements include statements that may relate to Atos’ plans, objectives, strategies, goals, future events, future revenues or synergies, or performance, and other information that is not historical information. Actual events or results may differ from those described in this document due to a number of risks and uncertainties that are described within the 2020 Universal Registration Document filed with the Autorité des Marchés Financiers (AMF) on April 7, 2021 under the registration number D.21-0269 and the Amendment to the 2020 Universal Registration Documents filed with the AMF on July 30, 2021 under number D.21-0269-A01. Atos does not undertake, and specifically disclaims, any obligation or responsibility to update or amend any of the information above except as otherwise required by law. This document does not contain or constitute an offer 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.

Revenue organic growth is presented at constant scope and exchange rates.

Industries include Manufacturing (Aerospace, Automotive, Chemicals, Consumer Packaged Goods (Food & Beverage), Discrete Manufacturing, Process Industries, Services and Siemens), Financial Services & Insurance (Insurance, Banking & Financial Services, and Business Transformation Services), Public Sector & Defense (Defense, Education, Extraterritorial Organizations, Public Administration, Public Community Services and Major Events), Telecom, Media & Technology (High Tech & Engineering, Media, and Telecom), Resources & Services (Energy, Retail, Transportation & Hospitality, and Utilities) and Healthcare & Life Sciences (Healthcare and Pharmaceutical).

Regional Business Units include 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 Growing Markets 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), 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), Major Events and Global Delivery Centers.

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• Atos provides additional information on its 2021 financial figures