Third quarter of 2021
Revenue stable at € 2,666
million at constant currency
Order entry at € 2,399
millionBook to bill ratio at 90%
Digital, Cloud, Security &
Decarbonization at 52% of revenue
Net organic increase of talents by
+1,500
Group Transformation programs moving at
speed
2021 objectives confirmed
Paris, October 20,
2021 - Atos, a global leader in digital transformation,
today announces the revenue of its third quarter of 2021.
In the third quarter, the Group continued to
stabilize its revenue at constant currency, before progressing into
positive territory. Market demand post crisis remained very dynamic
in Cloud application migration and development and the Digital
transformation of business processes through automation,
robotisation and artificial intelligence. In all regions, customers
now require digital solutions with the highest standards of
security, sustainability and inclusiveness, three domains where
Atos brings unique technological expertise.
The Group continued to pursue its deep and wide
business transformation plan, hiring a record number of new skills
in a very hot talent market, resulting for the first time in a net
organic increase of +1,500 employees. This will help fuel our
growth ambitions. In the same vein, we reinforced our partnerships
with Public Cloud hyperscalers while striking new ones with high
growth Digital platforms.
Our transformation programs announced in July
are moving at speed on all fronts. The German restructuring is well
under way. The plan to look for partners on c. 20% of the Group
revenue is being executed with advanced discussions on our Unified
Communications & Collaboration asset. The acquisition of a new
digital bolt-on asset has been signed. Finally, our LEAP cultural
change program is ramping up.
The Group Management wants to thank our 107,000
colleagues for their tremendous support for and dedication to this
transformation journey, which is setting the right foundations for
achieving our mid-term targets.
Q3 2021 revenue by
Industry
|
Revenue |
In € million |
Q3 2021 |
Q3 2020* |
Evolution at constant currency |
Manufacturing |
518 |
469 |
+10.4% |
Financial
Services & Insurance |
524 |
512 |
+2.3% |
Public Sector
& Defense |
553 |
628 |
-11.9% |
Telecom, Media
& Technology |
355 |
363 |
-2.0% |
Resources
& Services |
383 |
378 |
+1.5% |
Healthcare
& Life Sciences |
333 |
317 |
+5.1% |
Total |
2,666 |
2,666 |
0.0% |
* At constant
currency |
|
|
|
Revenue in the third quarter of 2021 reached
€ 2,666 million, stable compared
to Q3 2020 at constant currency, and decreasing by
-2.3% organically. The key segments to which the
Group directs its transformation – Digital, Cloud, Security and
Decarbonization – performed a strong growth while revenue was still
impacted in Classic Infrastructure.
Manufacturing reported a
revenue of € 518 million, representing 19% of the
Group revenue and increasing by +10.4% compared to
Q3 2020 at constant currency. This was an acceleration of its
recovery after a second quarter already growing by +1.8%. Every
geography contributed to this strong growth, driven by a
repositioning of the Industry on higher value digital projects and
solutions to meet customer needs. More particularly, the Industry
increased business in application projects ran in Automotive and
Aerospace, as well as digitization of industrial processes
including IoT based smart manufacturing offerings.
Financial Services &
Insurance revenue was € 524 million
during the third quarter of 2021, representing 20% of the Group
revenue. Increasing by +2.3% compared to Q3 2020
at constant currency, the Industry confirmed its performance of the
first semester, especially in the Insurance sector while activity
with Banking institutions was more contrasted. Business in this
Industry continued to be led by digital transformation projects and
a strong demand for cybersecurity expertise, both covered by the
offerings of the Group and the synergies with the newly acquired
companies such as Eagle Creek, Digital.Security, and Paladion.
Public Sector & Defense
reached € 553 million representing 21% of the
Group revenue and decreasing year-on-year at constant currency by
-11.9% after a +13.0% in Q3 2020. This decrease
came from volume reduction in large High Performance Computing
(HPC) projects delivered last year in most of the geographies and
more particularly in Northern Europe, as well as the last quarter
of year-on-year effect from the large reduction of scope of the
Texas Department of Information Resources contract renewed last
year.
Telecom, Media & Technology
represented 13% of the Group revenue and reached € 355
million, decreasing by -2.0% compared to
Q3 2020 at constant currency. After a positive second quarter, the
Industry had a more challenging third quarter as trends were mixed
between its different sectors. While projects in the Media sector
grew thanks to an increased volume in North America, the situation
was more challenging in High Tech & Engineering as well as in
Telecom.
Revenue generated by Resources &
Services in the third quarter of 2021 reached €
383 million representing 14% of the total revenue of the
Group. The industry managed to recover and grew by
+1.5% compared to Q3 2020 at constant currency
after a decrease by -2.5% in the second quarter of 2021. The
situation remained contrasted across its components, with dynamism
in Transportation & Hospitality, especially in North America
and Southern Europe, while the Retail and Energy & Utilities
sectors declined due to HPC sales not repeated this year compared
to 2020.
Representing 12% of the Group revenue with
€ 333 million, Healthcare & Life
Sciences grew by +5.1% in the third
quarter of 2021 year-on-year at constant currency led by Northern
Europe, Southern Europe, and Growing Markets. In particular, the
Healthcare sector recorded a very strong performance compared to
the third quarter of 2020, which more than compensated the decline
in Pharmaceutical.
Q3 2021 revenue by Regional Business
Unit
|
Revenue |
In € million |
Q3 2021 |
Q3 2020* |
Evolution at constant currency |
North
America |
617 |
625 |
-1.3% |
Northern
Europe |
674 |
700 |
-3.8% |
Central
Europe |
619 |
631 |
-1.8% |
Southern
Europe |
556 |
520 |
+7.0% |
Growing
Markets |
201 |
191 |
+4.9% |
Total |
2,666 |
2,666 |
0.0% |
* At constant
currency |
|
|
|
The majority of the Regions benefited from the
rebound of the demand for Digital transformation, Cloud, and
Cybersecurity in the sectors that have been impacted the most last
year such as Manufacturing and Hospitality & Transportation.
They benefited also from a good momentum in Healthcare & Life
Sciences and Financial Services & Insurance. Combined with
synergies initiated from the new acquisitions, the Group managed to
compensate the decline in Public Sector & Defense coming from
volume reduction and some large HPCs delivered last year in several
geographies.
Revenue growth at constant currency was strong
in Southern Europe and in Growing Markets.
In Southern Europe, the
activity was solid in most of the Industries including Public
Sector & Defense.
Growing Markets continued on
its trend at circa +5% growth led by the ramp-up of projects in
Asia in Healthcare & Life Sciences as well as in Telecom, Media
& Technology in Brazil and in Manufacturing through volume
increase and new projects.
North America managed to
generate growth at constant currency in all Industries except
Public Sector & Defense impacted by the Texas Department of
Information Resources contract and by Unified Communications &
Collaboration activities.
Northern Europe recorded a
strong activity in Manufacturing with Digital Transformation
projects as well as in Healthcare & Life Sciences. But this
geography faced unfavourable base effect on High Performance
Computing in Public Sector & Defense.
Finally, Central Europe
significantly improved its revenue trend compared to -10.3% in Q2
thanks to Manufacturing ramp-up of projects and new contracts.
Commercial activity
During the third quarter of 2021, the Group
order entry reached
€ 2,399 million representing a
Book-to-Bill ratio of 90%.
The main new contracts signed over the period
included notably:
- in Manufacturing a contract with a large European Automotive
supplier for the migration to S/4 Hana Cloud (Central Europe);
- in Financial Services & Insurance a contract with a US
global Insurer for a migration to Public Cloud combining Atos,
Syntel, and Maven Wave capabilities (North America);
- in Public Sector & Defense a large contract with a Public
authority for a Digital Transformation project (Northern
Europe);
- in Telecom, Media & Technology a Digital Transformation
contract embarking Cloud, Security, and Decarbonization services
with a European High Tech leader (Northern Europe);
- in Resources & Services a contract with a large
European Utility for distribution network management and control
combining SAP and Atos Energy solutions (Southern Europe); and
- in Healthcare & Life Sciences a contract with a large
Healthcare leader for the development of digital tool to enhance
patient experience (North America).
Contract renewals of the quarter included, in
Manufacturing a large European car manufacturer with an extension
to support customer in developing data-based Cloud services
(Southern Europe), in Financial Services & Insurance a major
bank to migrate complex data center and applications (Growing
Markets), and a scope extension with a large retailer Resources
& Services (North America).
Full backlog amounted to
€ 23.4 billion at the end of September 2021,
slightly down compared to June 2021. It represented 2.1
years of revenue. Full qualified
pipeline reached € 7.4 billion stable
compared to June 2021. It represented 7.9
months of revenue.
Human resources
The total headcount was
106,665 at the end of September 2021, an increase
of +1,857, of which for the first time +1,485
(+1.4%) organically in order to support the fast
growing business segments (Digital, Cloud, Security and
Decarbonization) while the Group continued to decrease the number
of staff in Infrastructure activities through automation and
robotization.
In the third quarter of 2021, the Group hired
8,019 staff, the majority of whom in offshore and nearshore
countries. Attrition LTM (Last Twelve Months) reached 16% at the
end of September 2021.
2021 objectives confirmed
The Group confirms all its objectives for
2021:
- Revenue growth at constant currency:
stable;
- Operating margin rate: c. 6%;
- Free cash flow: positive.
Acquisition
The Group today announces the acquisition of
DataSentics, a European company founded in 2016 and located in
Prague. DataSentics specializes in Machine Learning and Cloud Data
engineering. The company works on unifying data science and
engineering across Europe. It employs 90 data scientists. Its
offerings will immediately complement Artificial Intelligence
factory strategy of Atos to support 5G and Edge offerings and
accelerate key business use cases in Manufacturing, Retail, and
Telecommunications.
Program to look for partners to optimize
Group assets
As part of its transformation and to accelerate
its reprofiling towards Digital, Cloud, Security &
Decarbonization, the Group announced on July 27, 2021 the launch of
a large program to look for partners on a volume of business
representing c. 20% of its current revenue.
On Unified Communications & Collaboration,
advanced discussions are currently ongoing.
On Data Center hosting and associated
activities, a formal process has been launched and multiple
indications of interest have been received.
Appendix
Revenue at constant scope and exchange
rates reconciliation
In € million |
Q3 2021 |
Q3 2020 |
% change |
Statutory
revenue |
2,666 |
2,644 |
+0.8% |
Exchange rates effect |
|
22 |
|
|
|
|
|
Revenue at constant exchange rates |
2,666 |
2,666 |
0.0% |
|
|
|
|
Scope effect |
|
63 |
|
Exchange rates effect on
acquired/disposed perimeters |
|
1 |
|
Revenue at constant scope and exchange rates |
2,666 |
2,729 |
-2.3% |
Scope effects amounted to €+63 million for revenue. They are
mainly related to:
- the acquisitions closed in H2 2020 and in 2021 for €+68
million; and
- the disposal of some specific Unified Communications &
Collaboration activities and Wivertis GmBH in 2020, amounting for a
total of €-5 million.
Currency exchange rate effects positively contributed to revenue
for €+22 million. They mostly came from the appreciation of the
British Pound against the Euro over the period.
Conference call
Tomorrow, Thursday, October 21, 2021, the Group
will hold a conference call in English at 08:00 am
(CET - Paris), chaired by Elie Girard, CEO, in order to
comment on Atos’ Q3 2021 revenue and answer questions from the
financial community.
You can join the webcast of the
conference:
- via the following link:
https://edge.media-server.com/mmc/p/9dtvfypf
- 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://emea.directeventreg.com/registration/5061859Upon
registration, you will be provided with Participant Dial In
Numbers, a Direct Event Passcode and a unique Registrant ID. Call
reminders will also be sent via email the day prior to the
event.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.
Forthcoming events
February 28, 2022 (After Market Close)
Full Year 2021 resultsApril 27, 2022 (Before Market
Opening)
First Quarter 2022 revenueMay 18, 2022
Annual General MeetingJuly 27, 2022 (Before Market Opening)
First semester 2022 results
Contacts
Investor
Relations:
Gilles
Arditti
+33 6 11 69 81
74
gilles.arditti@atos.net
Media:
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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