H1 2021 Results

Bezons, July 28, 2021

Disclaimer
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 forwardlooking 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 nothistorical information. Actual events or results may differ from those described in this document due to a number of risks anduncertainties 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. Atos does not undertake, and specifically disclaims, any obligation orresponsibility to update or amend any of the information above except as otherwise required by law. This document does not containor constitute an offer of Atos’ shares for sale or an invitation or inducement to invest in Atos’ shares in France, the United States ofAmerica 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, andTelecom), 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, andSwitzerland), 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 Eventsand Global Delivery Centers.
2Agenda

1 North America accounting review
2 H1 2021 highlights
3 H1 2021 financial performance
4 Group Transformation Update
5 Conclusion
6 Q&A3

Group Transformation on the moveNorth America accounting review completedSpring last step implemented
German turnaround plan agreed with social partners
Strategic portfolio review achieved
Bolt-on acquisition program pursued
LEAP cultural change program launched4✓✓✓✓✓✓

SECTION 1North America accounting
reviewFull Accounting Review in North America completed

Supported by external advisors

Reviewed by auditors as part of half year procedures

No material misstatement for the Group consolidated
financial statements

6

Moreover, an unqualified auditors’ report is in process
to be issued further to the usual limited review of thehalf year Group condensed consolidated financialstatements

Remediation and Prevention Plan

Preventivecontrols

Guidelines and documentation
HR Review
Skilling and organization
Awareness and Training
7

Implementationof plans acrossthe Group:
remediation inNorth America,
prevention in allRegions

SECTION 2

H1 2021 highlights

H1 2021
Key Figures

9Revenue growth atconstant currency

Book to Bill

Headcount

-1.0%

103%

104,808

Q2 at 0.0%

Q2 at 109%

slightly up vs end 2020

Operating Margin

Free Cash Flow

Normalized Net Income€ 302m€-369m€ 162m

5.6% of revenue

vs €-172m in H1 2020

Normalized EPSat € 1.48

H1 2021
Non-Financial Key Figures

10tC02 Emissions* /M€ revenue

New Digital
Certifications

Net promoter scorefrom our clients

10.6

40,93667%

vs 14.9 in 2020

vs 34,474 in H1 2020

vs 65% in 2020

% of total spend
with green** suppliers% of Women in
Executive Management(top 450)

Client innovation
workshops delivered

40%31%275

vs 33% in H2 2020vs 30% end of 2020

vs 168 in H1 2020

H1 2021 non-financial figures are unaudited* Atos Operational Perimeter – Emissions under control or direct influence - including homeworking** Green suppliers are suppliers getting an environmental score > 70 from Ecovadis assessment (100 point scale)Q2 2021
Main Wins
Manufacturing Financial Services& Insurance

Large European
Manufacturer

A pioneer Digital
Bank in the US

Modernization ofsupply chainmanagement withSAP

Application
development
and quality
assurance

11

Public Sector& Defense

Telecom, Media& Technology

Public Tax
Authority

Agile
Largestcontract in Development
covering
Benelux in5 Digital
integration,
Deliverysecurity,
Centres
datacentersand cloud

Next Generation
Employee
Experiencefor 300,000+
employees

Resources& Services

Healthcare& Life Sciences

Major International
Logistics Company

A major Hospital
chain in the US

Agile and cloudnative application
development
leveraging AI/ML

Digital new tools
enhancing patient
experienceImpacts from post-Covid Cloud acceleration
Public Cloud Migration & Management

Classic Data Centers

Cloud Native Application DevelopmentCloud Security

Classic Unified Communications
Edge
Classic Application Development

Private Cloud

Cloud Unified Communications
Cloud Compute
Multi-Cloud Orchestration

12

Growth Engines on top of Cloud

13Digital

Security

Decarbonization

261,000
digital certifications

c.+40% revenue
growth at cc

Order entry at € 50
millionInnovations & Partnerships
In Q2Digital

Cloud

Security

Decarbonization

Joint Venture Athea‘A to Zero’ offering

Disruptive initiatives, Software AG, …

and 9 hubs

New or extended partnerships• UiPath, TibCo,•s, Qualtrics,
Software AG, … •Celonis, Qualtrics,
Software AG, SAPOVH and HashiCorp
IBM Edge ecosystem

Reinforced academic & industrial collaboration

14••

CyberArk, Cybereason
Atos Azure nativesecurity, part of MISASECTION 3

H1 2021 financialperformanceH1 2021
Financial Overview
Variation
at constantVariation2020
scope andcurrency

H1€M

2021

Revenue*

5,424

5,477

302

427

5.6%

7.8%

129329

Normalized Net income

162319

Normalized diluted EPS€ 1.48€ 2.93Operating Margin*% operating margin rate*
Net income

Free Cash Flow
Net debt* 2020 at constant currency
16H1--369
1,129-172779

-1.0%

-2.7%

H1 2021
Performance by Industry
REVENUE€M% OM RATE

H12021

H12020*% YoY, CC

H12021

H12020*

H12021

H12020*

980

1,006

-2.6%

47

134.7%

1.3%

Financial Services & Insurance

1,095

1,041

5.2%

94

121

8.6%

11.7%

Public Sector & Defense

1,190

1,233

-3.5%

30

115

2.5%

9.4%

Telecom, Media & Technology

748

761

-1.7%

3470

4.6%

9.3%

Resources & Services

778

814

-4.5%

32

42

4.1%

5.2%

Healthcare & Life Sciences

633

622

1.9%

65

65

10.3%

10.4%

5,424

5,477-1.0%

302

427

5.6%

7.8%

Manufacturing

Total* At constant currency
17OPERATING MARGIN

H1 2021
Performance by Regional Business Unit
% OM RATE

H12021

H12020*% YoY, CCH12021

H12020*

H12021

H12020*

North America

1,170

1,240

-5.6%

138

188

11.8%

15.2%

Northern Europe

1,402

1,359

3.1%

91

100

6.5%

7.4%

Central Europe

1,240

1,368-9.4%

21

42

1.7%

3.1%

Southern Europe

1,231

1,147

7.3%

46

94

3.7%

8.2%

Growing Markets

382

363

5.3%

4543

11.8%

11.9%

Global Structures---41-0.7%

-0.7%

5,424

5,477

-1.0%

427

5.6%

7.8%

Total

* At constant currency
18OPERATING MARGIN

REVENUE€M-39302-

Business shift to growth areas accelerating

38%

c.+10%

46%

c.+12% to +15%

53%

>70%

c.-1%
c.-3% to -5%

62%

54%

2020
Classic infrastructure incl. UCC

19CAGR<30%c.-20%c.-11%
2018

47%

Classic applications incl. BPO

2021E

Mid-Term incl.
Portfolio Management

Digital, Cloud, Security & Decarbonization

H1 2021
Headcount Evolution

104,430+1,037+9,391

104,808(8,665)

Headcount asof 31/12/2020

Scope

HiringLeavers(1,385)

Restructuring, Headcount asdismissals &of 30/06/21
transfers

H1 2021
Income Statement (statutory)€M

H12021

H12020

Revenue

5,424

5,627

Operating margin

302

450

% of revenue

5.6%

8.0%

Other operating income/(expense)-419

Operating income-

117

Net financial expenses-

3Profit before tax-

121

Tax charge-

6Effective tax rate

87362

-

1361

-

-4.6%

34
9.4%

Non-controlling interests-

2

Share of net profit/(loss) of associates-

03

Net income from continuing operations – Attributable to owners of the parent

-129

329

162319

Normalized net income from continuing operations – Attributable to owners of the parent

21--1

H1 2021
Cash Flow Statement€M

H12021

H12020Operating Margin

302

450

as a % of revenue

5.6%

8.0%

+ Depreciation of fixed assets+ Depreciation of right of use+ Net book value of assets sold/written off+/- Net charge/(release) of pension provisions+/- Net charge/(release) of provisions

167
176
6-16-2165
168
4-3926

Operating Margin before Depreciation & Amortization

633

774

11.7%

13.8%

-154-183-394-186-172-407

989-46-13-147-66-55-21-97-7

as a % of revenue
Capital Expenditures
Lease payments
Change in working capital requirement
Cash from operations-Tax paid
Net cost of financial debt paid
Reorganization, Rationalization & Integration and acquisition costs
Other changes
Free cash flow

22-369-172

Operating Margin to reach 11% to 12%

11%-12%c.1%
1.5%-2.0%
c.1%

23

c.6.0%

1.0%-1.5%

OM 2021E

Business Mix (Organicand Bolt-on)

Business Mix(PortfolioManagement)

Offshore

Germany turnaroundplanOthers

OM Mid-Term

Free Cash Flow reaching >60% mid-term
FCF 2021

Key drivers:

Positive

Operating margin improvement to 11% - 12%
mid-term

OM increase(Net of tax)

(Net of tax)

Reduction of Reorganization / Rationalization /Integration (RRI) and other expenses

Working capital

Working Capital requirement roughly stable

RRI & other expenses

OthersFCF Mid-term
24

FCF
conversion>60%

SECTION 4Group Transformation
UpdateNorth America at the forefront of Group transformation+20% sales investment inConsulting, Systems Integration &Applications in H2 vs H1+120% hiring in Consulting,
Systems Integration & Applicationsin H2 vs H1+63% new Cloudcertifications in H2 vs H1
26

Priority area
for acquisitions andportfolio management

Germany Turnaround Plan agreed with social partners
Program started on July 15, 2021
with immediate operational
improvements

No collective salary increase
until end of 2023

27

Objective
to clear loss making
and cash negative
areas in Germany
on Classic
Infrastructurebusiness

Restructuring plan
concerning c. 1,300 people(25% of total classic Infra staff)
Cost €180 million
Program to be completedin 2023

To result in a+100bps Operating Margin
improvement atGroup level Mid-Term

Portfolio Strategic Review: look for partners to optimize Group assets

Datacenter hosting
and associatedactivities

UnifiedCommunications& Collaboration

c.20% of Group revenue
28

Sub-criticalactivities

Continued bolt-on acquisitions strategy
18 Acquisitions since January 1st, 2020
Q1 2020

Q2 2020

Q3 2020

Google CloudSAP forEnergy & Utilities

Salesforce

Cyber & IoT Security

AI & Machine
Learning

Managed Detection &Response

Salesforce& Cloud

Cybersecurity
Consulting

Cybersecurity
Consulting

Cybersecurity
Consulting
Salesforce

Decarbonization

DigitalQ4 2020

CloudSecurity

Q1 2021

Q2 2021

CyberProducts

Product Lifecycle
Management

Product Lifecycle
Management

Big Data &Analytics

Edge, Big Data& Analytics

Snowflake

Decarbonization> € 400 million based on yearly 2020 revenue
29

M&A Policy

Bolt-on acquisitions forc. 2% of Group revenue
per yearMid-size acquisitions
to accelerate Grouptransformation

Acquisitions to be made in
Digital, Cloud, Security & Decarbonization
to support growth agenda and mid-termtargets
30

Cultural Change Plan: LEAP launched in May
Leadership

Customers

CompetitiveValueTalents

Entrepreneur

Cultural Change through LEAP

Across all geographies and organisation levels
Insights Gathered | Priority foundations identified | Workshops launched

31

IdentitySECTION 5Conclusion

2021 Objectives and Mid-Term targets

FY 2021 objectives(July 12, 2021)

Mid-term targets

Revenue growth(at constant currency)

Stable+5% to 7%

Operating margin(% of revenue)

c.6.0%

11% to 12%

Free cash flow / Cash conversion

Positive>60%

33

SECTION 6Q&A

Thank you!

Atos, the Atos logo, Atos|Syntel are registered trademarks of the Atos group. July2021. © 2021 Atos. Confidential information owned by Atos, to be used by therecipient only. This document, or any part of it, may not be reproduced, copied,circulated and/or distributed nor quoted without prior written approval from Atos.