Atos provides additional information on its 2021 financial results
Paris, February 9, 2022 – Referring to EU regulation n°596/2014 which provides that issuers inform the public as soon as possible of inside information concerning them directly, Atos today provides additional information on its 2021 financial figures, following its preliminary report of January 10, 2022. announcement.
In the context of an accelerated transition to the cloud, the Group decided in 2021 to reposition its business portfolio and focus on Digital, Cloud, Security and Decarbonization activities, away from traditional infrastructure services and Communications. Unified & Collaboration. Given this change in strategy and the refocusing on growing services, the Group conducted a comprehensive analysis of the future recoverability of assets and the profitability of historical contracts. As announced on January 10, 2022, this analysis led to the impairment of assets, mainly related to historical activities.
Today, the Group is able to indicate that the impairment of goodwill and other non-current assets will amount to c. 1.9 billion euros. As a direct consequence, an impairment will be recognized to reflect the lower recognition of the Group’s deferred tax assets.
The Group will also recognize in H2 2021 an impairment of contract assets, provisions for bad debts and a provision for future losses up to c. 0.5 billion euros resulting mainly from the effects mentioned above and the revaluation of contracts including the BPO financial services contract in the United Kingdom.
All impacts described above will be reported in the Other operating income and expenses section of the Group’s 2021 consolidated income statement, with no impact on the Group’s operating margin and cash.
The Group estimates that its 2021 revenue will be approx. 10.8 billion euros, a decrease of c.-2.6% at constant exchange rates (vs. c.-2.4% announced on January 10) and the Operating Margin at c. 3.5% (vs. 4% reported on January 10) mainly due to the final valuation of the UK Financial Services BPO contract. The Free Cash Flow remains unchanged at c. -420 million euros.
The preliminary figures in this press release have been reviewed by the Atos Board of Directors on February 9, 2022 and are unaudited.
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 recovery plan which will be shared with investors during the capital markets day in Q2.
Atos management invites you to an international conference call, the Thursday, February 10, 2022 at 8:00 a.m. (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
Upon registration, you will receive attendee dial-in numbers, a direct event access code, and a unique cardholder ID.
During the 10 minutes prior to the start of the call, you will need to use the conference access information provided in the email received during registration.
After the conference, a replay of the webcast will be available on atos.net, in the Investors section.
|January 10and preliminary figures||February 10and update|
|Revenue growth at constant exchange rate||vs. -2.4%||vs. -2.6%|
|% Operating margin on turnover||vs. 4%||vs. 3.5%|
|Free movement of capital||vs. -420 million euros||vs. -420 million euros|
Events to come
February 28, 2022 (after market close) 2021 annual results
April 27, 2022 (Before trading) First-quarter 2022 revenue
May 18, 2022 Annual General Meeting
July 27, 2022 (before market opening) First-half 2022 results
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 tailor-made end-to-end solutions for all industries in 71 countries. A pioneer in decarbonization services and products, Atos is committed to secure and decarbonized digital for its customers. Atos is an SE (Societas Europaea), listed on Euronext Paris and included in the CAC 40 ESG and Next 20 indices.
the Atos goal is to help shape the future of the information space. Its expertise and services support the development of knowledge, teaching and research in a multicultural approach and contribute to the development of scientific and technological excellence. Throughout the world, the Group enables its customers and employees, and members of civil society to live, work and develop sustainably, in a safe and secure information space.
This document contains forward-looking statements that involve risks and uncertainties, including references, regarding the Group’s expected growth and profitability in the future, which may have a material impact on the expected performance indicated in the forward-looking statements. These risks and uncertainties are related to factors beyond the control of the Company and not precisely estimated, such as market conditions or the behavior of competitors. All forward-looking statements made in this document are statements of Atos’ beliefs and expectations and should be evaluated as such. Forward-looking statements include statements that may relate to plans, objectives, strategies, goals, future events, future revenues or synergies, or performance of Atos, 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 which are described in the 2020 Universal Registration Document filed with the Autorité des marchés financiers (AMF) on April 7, 2021 under 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 liability to update or modify the above information, except as otherwise required by law. This document does not contain or constitute an offer to sell Atos shares or an invitation or inducement to invest in Atos shares in France, the United States of America or any other jurisdiction.
Organic revenue growth is presented at constant scope and exchange rates.
Sectors include Manufacturing (Aerospace, Automotive, Chemical, Consumer Packaged Goods (Food & Beverage), Discrete Manufacturing, Process Industries, Services and Siemens), Financial services and insurance (Insurance, Banking & Financial Services and Business Transformation Services), Public Sector & Defense (Defence, Education, Extraterritorial Organizations, Public Administration, Public Services to Communities and Major Events), Telecom, Media & Technology (High Tech & Engineering, Media and Telecom), Resources and services (energy, retail, transportation and hospitality and utilities) and Health and life sciences (Health and Pharmaceuticals).
Regional business units include North America (United States, Canada, Guatemala and Mexico), North Europe (UK and Ireland, Belgium, Denmark, Estonia, Belarus, Finland, Lithuania, Luxembourg, 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 Growth 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 Emirates United Arab Emirates), Major Events and Global Delivery Centres.
Atos provides additional information on its 2021 financial figures