H1 2024 Results

Paris,
August 1st, 2024

Today’s presenters

Jean Pierre
Mustier
Chairman & CEO2| 01/08/2024 | Atos

Carlod’Asaro BiondoGroup COO

Jacques-François
de Prest
Group CFO

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 forward-looking statements. Theserisks and uncertainties are linked to factors out of the control of the Company and not precisely estimated, such as market conditions orcompetitors’ behaviors. Any forward-looking statements made in this document are statements about Atos’s beliefs and expectations and shouldbe evaluated as such. Forward-looking statements include statements that may relate to Atos’s 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 thosedescribed in this document due to a number of risks and uncertainties that are described within the 2023 Universal Registration Document filed with
the Autorité des Marchés Financiers (AMF) on May 24, 2024 under the registration number D.24-0429. Atos does not undertake, and specificallydisclaims, 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’s shares for sale or an invitation or inducement to invest in Atos’s shares in France, theUnited States of America or any other jurisdiction. This document includes information on specific transactions that shall be considered as projects
only. In particular, any decision relating to the information or projects mentioned in this document and their terms and conditions will only be madeafter the ongoing in-depth analysis considering tax, legal, operational, finance, HR and all other relevant aspects have been completed and will be
subject to general market conditions and other customary conditions, including governance bodies and shareholders’ approval as well as
appropriate processes with the relevant employee representative bodies in accordance with applicable laws.

Revenue organic growth is presented at constant scope and exchange rates.
Regional Business Units include Americas including North America (USA, Canada, Guatemala and Mexico) and South America (Argentina, Brazil, Chile,
Colombia, Uruguay, and Peru), Northern Europe and APAC including Northern Europe (United Kingdom & Ireland, Belgium, Denmark, Estonia, Belarus,
Finland, Lithuania, Luxembourg, The Netherlands, Norway and Sweden) and Asia-Pacific (Australia, China, Hong Kong, India, Japan, Malaysia, New
Zealand, Philippines, Singapore, Taiwan, Thailand and South Korea), Central Europe (Austria, Bosnia and Herzegovina, Bulgaria, Croatia, Czech
Republic, Germany, Greece, Hungary, Israel, Poland, Romania, Serbia, Slovenia, Slovakia, and Switzerland), Southern Europe (Andorra, France, Italy,
Portugal, and Spain) and Rest of the World including Middle East & Africa (Abu Dhabi , Algeria, Benin, Burkina Faso, Egypt, Gabon, Ivory Coast, Kenya,
Lebanon, Madagascar, Mali, Mauritius, Morocco, Namibia, Qatar, , Kingdom of Saudi Arabia, Senegal, South Africa, Tunisia, Turkey and UAE), Major
Events and Global Delivery Centers.
3| 01/08/2024 | AtosAgenda1. Key messages
2. H1 2024 Business Highlights
3. H1 2024 Financial Results
4. Key takeaways
5. Q&A

4| 01/08/2024 | Atos

01

Key messages
Jean Pierre Mustier
Chairman & CEO

H1 2024 highlights

Successful
conciliation process• Fully funded financial
restructuring plan

• Ample liquidity to run thebusiness• Debt reduction of €3.1 bn• No debt repayment before2029+• Sustainable capital structurealigned with Atos future cash
flow generation
6| 01/08/2024 | Atos

H1
performance• Revenue and Operating
Margin in line with thebusiness plancommunicated on April 29th
• Free cash flow reflecting oneoff reduction of working
capital optimization,
increased investments forcustomers, and lower
restructuring costs

Operational
highlights• Successful delivery of theUEFA contract• Ongoing delivery ofParis 2024 Olympic &Paralympic games• 88% contract renewal rate
reflecting continued
customer confidenceH1 2024 performanceGroup Revenue

Group operating margin-2.7% yoy. Organic

2.3% of revenue€5.0 bn••

7

Eviden: continued market
softness in the Americas andcontract scope reductions in
the UK
Tech Foundations: Lower
scope of work with certain
clients in Americas and Central
Europe| 01/08/2024 | AtosGroup Free cash flow

€115 m••Eviden profitability impacted byhigher SG&A costs allocated tothe business (rather thanallocated to Other expenses),revenue decrease and lower
utilization of resources
Improvement of Tech
Foundations profitability thanks
to continued execution of its
transformation plan€-1.9 bn

Including:•

Increased investment on
customer contracts•

Lower restructuring costs•

Reduction of one-off
working capital optimizationby €1.3 bn as planned

02

H1 2024
Business Highlights
Carlod’Asaro Biondo
COO

88% renewal rate demonstrating continued customer confidence
in a challenging context
Challenging environment
for the industry: Market
softness in key geographies(Americas, UK, Central Europe)9

1. Positive reception of latest Group financial
restructuring announcements
2. Delay in contract awards as some customers wait
for the formal closing of the financial restructuring
3. Intense customer engagement

88%€300 m

€3.6 bn3

H1 2024
Renewalrate

TF/Evidencross-sell
pipeline

H1 Order entry
4 large renewals
2 new customers

2 large clients lostand 1 large scope
reduction| 01/08/2024 | AtosCommercial strategy focused on contracts with fast implementation, and onlarge contract renewals leveraging partners
Tech Foundations

Eviden85%

Group H1 Book-to-bill: 73% (vs 93% in H1 2023)

Vs 99%
in H1 2363%
Vs 87%
in H1 23

Illustrative Q2 wins
Major European
Energy utility
Application
modernization
NEW10| 01/08/2024 | Atos

Leading
European telecom
Application
modernization
NEW

European air traffic
management
Mission critical systems& hybrid cloud &Security Services
Renewal

US usedvehicle retailer
Mainframe computing,hosting and networking
solutions
RenewalH1 2024 Group organic growth & revenue by regional business unit
Organic revenue evolution

Southern
EuropeStableRevenue Mix
Others3%

Americas-6.9%Southern
Europe22%

Americas22%c.€5.0bn
CentralEurope-4.5%
11| 01/08/2024 | Atos

Northern
Europe & APAC

-1.3%

CentralEurope22%

Northern Europe &
APAC
31%

Southern Europe stable thanks to HPC activities
Organic revenue evolution
Eviden:Southern
EuropeStableCentralEurope-4.5%
12| 01/08/2024 | Atos

Low single digit growth :Americas-6.9%

Northern
Europe & APAC

-1.3%

•

Growth in Digital activities thanks to
ramp-up of large contracts in Spainand in France•

HPC deliveries in France

Tech Foundations•

Low single-digit decline due to contract
completions with select customers

Americas impacted by general slowdown in market conditions and contract
completions
Organic revenue evolution
Eviden:Southern
EuropeStableCentralEurope-4.5%
13| 01/08/2024 | Atos

Low-double digit decline
Americas-6.9%

Northern
Europe & APAC

-1.3%

•

Volume reductions & contract
completions in Healthcare and Finance•

Comparative effect in BDS with thedelivery of an HPC recorded last year

Tech Foundations
Low-single digit decline• Contract completions and scope
reductions with select customers

Central Europe impacted by delays in Public Sector spending and contract
ramp downs
Organic revenue evolution

Southern
EuropeStableAmericas-6.9%Mid-single digit decline in both Eviden andTech Foundations
Eviden:• Project delay in Mission Critical Systems• Contract ramp downs in Manufacturing
and in Defense

CentralEurope-4.5%
14| 01/08/2024 | Atos

Northern
Europe & APAC

-1.3%

Tech Foundations•

Volume reduction in Manufacturing andBanking sectors•

Delays in Public Sector spending

Northern Europe & APAC revenue decrease reflects soft market conditions
Organic revenue evolution

Southern
EuropeStableAmericas-6.9%

Low-single digit decline in both Eviden andTech Foundations
Eviden:• Lower demand in Digital activities partly
compensated by new business inadvanced computing with an innovation
center in Denmark
Tech Foundations

CentralEurope-4.5%
15| 01/08/2024 | Atos

Northern
Europe & APAC

-1.3%

•

Resilience in soft market conditions,which lead to volume decline in thehealthcare, insurance and public sectors.

Ongoing workforce optimization and decrease in attrition rates

95,140+5,81991,611

Incl. C.
+1,900
headcounts
in offshore
deliverycenters

Headcount as of
31/12/23

Hiring(6,658)

Leavers(2,690)Restructuring, dismissals& others

14.3% attrition rate decrease year-over year
vs 15.0% in 2023

16

| 01/08/2024 | Atos

Headcount as of
30/06/24

03

H1 2024
Financial results
Jacques-François
de Prest
CFO

H1 2024 key financial figures
Revenue

Operating margin

Free cash flow

-2.7% yoy. organic

2.3% of revenue-100bps organically€0.2 bn capex€1.3 bn lower WCR
optimization vs Dec23

Net lossgroup share

Normalized
net loss

Net debt

Impairment charge of€-1.6 bnVs €-113m in H1 2023

€5.0 bn€-1.9 bn18

| 01/08/2024 | Atos

€115 m€-124 m€-1.9 bn

€4.2 bn

H1 2024 revenue bridge
Organic evolution in €m:
5,548

(33)

5,515

-0.6%

H1 2023 revenue

19| 01/08/2024 | Atos

Adoption of
new accounting
treatment(agent vs.
Principal)

(140)

(416)
4

-2.7%

H1 2023 revenue(restated)

Organic

-7.5%

+0.1%

Scope

Foreign Exchange

4,964

H1 2024 revenueH1 2024 operating margin-100 bps organic decrease vs prior year (in €m)

Eviden: €58m

3.3%

2.3%
168

✓ OM% at 2.4%, down -230 bps organically✓ Higher SG&A costs allocated to the business rather thanallocated to Other expenses✓ Revenue decline✓ Lower utilization of billable resources and absorption of
fixed costs

115

Tech Foundations: €57m

H1 2023 *H1 2024✓✓✓✓*At constant scope and June 2024 average foreign exchange rates
20 | 01/08/2024 | Atos

OM% at 2.2%, up +30 bps organicallyContinued execution of the transformation program
Accelerated reduction of under-performing contracts
Focus on pricing improvement

Operating margin to Net income(in € million)

H1 2024

H1 2023

Operating margin

115

212

Reorganization costs

-60

-430

Rationalization and associated costs

-5

-30

Integration and acquisition costs-2-4

Amortization of intangible assets (PPA from acquisitions)

-29

-60

Equity-based compensation

-3

-14

Impairment of goodwill and other non-current assets-1,570-55

Other items

-150

-53

Other operating income (expense)-1,819-646

Operating (loss)-1,704-434

Net financial income (expense)

-175

-103

Tax charge

-62

-65

Non-controlling interests

0-

Share of net profit (loss) of equity-accounted investments-

2

Net (loss) – Attributable to owners of the parent-1,941-600

Normalized net income (loss)* – Attributable to owners of the parent

-124

-113

* The normalized net income (loss) is defined as net profit before unusual, abnormal and infrequent items (net of tax)
21

| 01/08/2024 | AtosOperating margin to Net income(in € million)

H1 2024

H1 2023

Operating margin

115

212

Reorganization costs

-60

-430

Rationalization and associated costs

-5

-30

Integration and acquisition costs-2-4

Amortization of intangible assets (PPA from acquisitions)

-29

-60

Equity-based compensation

-3

-14

Impairment of goodwill and other non-current assets-1,570-55

Other items

-150

-53

Other operating income (expense)-1,819-646

Operating (loss)-1,704-434

Net financial income (expense)

-175

-103

Tax charge

-62

-65

Non-controlling interests

0-

Share of net profit (loss) of equity-accounted investments-

2

Net (loss) – Attributable to owners of the parent-1,941-600

Normalized net income (loss)* – Attributable to owners of the parent

-124

-113

* The normalized net income (loss) is defined as net profit before unusual, abnormal and infrequent items (net of tax)
22

| 01/08/2024 | Atos

• €-34 m restructuring expenses• €-26 m outstanding activities
on the separation of the GroupOperating margin to Net income(in € million)

H1 2024

H1 2023

Operating margin

115

212

Reorganization costs

-60

-430

Rationalization and associated costs

-5

-30

Integration and acquisition costs-2-4

Amortization of intangible assets (PPA from acquisitions)

-29

-60

Equity-based compensation

-3

-14

Impairment of goodwill and other non-current assets-1,570-55

Other items

-150

-53

Other operating income (expense)-1,819-646

Operating (loss)-1,704-434

Net financial income (expense)

-175

-103

Tax charge

-62

-65

Non-controlling interests

0-

Share of net profit (loss) of equity-accounted investments-

2

Net (loss) – Attributable to owners of the parent-1,941-600

Normalized net income (loss)* – Attributable to owners of the parent

-124

-113

* The normalized net income (loss) is defined as net profit before unusual, abnormal and infrequent items (net of tax)
| 01/08/2024 | Atos

Consisting mainly of:• €-1,452 m impairment of goodwill• €-109 m customer relationships
impairment as a result of contract
terminations
Half year goodwill impairment test
performed at end of June, taking into
account the ongoing financial
restructuring of the Group and theresulting offers received.

Operating margin to Net income(in € million)

H1 2024

H1 2023

Operating margin

115

212

Reorganization costs

-60

-430

Rationalization and associated costs

-5

-30

Integration and acquisition costs-2-4

Amortization of intangible assets (PPA from acquisitions)

-29

-60

Equity-based compensation

-3

-14

Impairment of goodwill and other non-current assets-1,570-55

Other items

-150

-53

Other operating income (expense)-1,819-646

Operating (loss)-1,704-434

Net financial income (expense)

-175

-103

Tax charge

-62

-65

Non-controlling interests

0-

Share of net profit (loss) of equity-accounted investments-

2

Net (loss) – Attributable to owners of the parent-1,941-600

Normalized net income (loss)* – Attributable to owners of the parent

-124

-113

* The normalized net income (loss) is defined as net profit before unusual, abnormal and infrequent items (net of tax)24

| 01/08/2024 | Atos

Including• €55 m: additional loss on past disposals• €51 m: advisors fees on the financial
restructuring of the Group and on theasset disposals• €11 m: reassessment on an onerous
contract in Northern Europe accounted
for under Other items in 2021

Operating margin to Net income(in € million)

H1 2024

H1 2023

Operating margin

115

212

Reorganization costs

-60

-430

Rationalization and associated costs

-5

-30

Integration and acquisition costs-2-4

Amortization of intangible assets (PPA from acquisitions)

-29

-60

Equity-based compensation

-3

-14

Impairment of goodwill and other non-current assets-1,570-55

Other items

-150

-53

Other operating income (expense)-1,819-646

Operating (loss)-1,704-434

Net financial income (expense)

-175

-103

Tax charge

-62

-65

Non-controlling interests

0-

Share of net profit (loss) of equity-accounted investments-

2

Net (loss) – Attributable to owners of the parent-1,941-600

Normalized net income (loss)* – Attributable to owners of the parent

-124

-113

* The normalized net income (loss) is defined as net profit before unusual, abnormal and infrequent items (net of tax)
25

| 01/08/2024 | Atos•

Higher interest rates on the Term loan
A and the multi-currency revolving
credit facility for which additional
portions were drawn in the second
half of 2023 and in January 2024,•

Lower interest income as a result of alower level of deposits.

Free cash flow reflecting increased investments for customers andreduction of one-off working capital optimization(in € million)

H1 2024

H1 2023

Operating Margin before Depreciation & Amortization (OMDA)

373

487

Capital expenditures

-278

-110

Lease payments

-159

-181

Change in working capital requirement*-1,393-645

Cash from operations (CFO)-1,457-450

Tax paid-45-40

Net cost of financial debt paid

-73

-40

Reorganization, rationalization and integration costs

-171

-274

Other changes**

-167

-165

-1,914

-969

-63

190

5

-59

-15

-34

Opening net debt

-2,230-1,450

Closing net debt

-4,218-2,321

Free Cash Flow (FCF)
Net (acquisitions) disposals

Foreign exchange rate fluctuation on net cash (debt)
Others (share buy-back, dividend paid, capital increase)"* Change in working capital requirement excluding the working capital requirement change related to items reported in other operating income and expense.
** ""Other changes"" include other operating income and expense with cash impact (excluding staff reorganization, rationalization and associated costs, integration and acquisition
costs) and other financial items with cash impact, net long term financial investments excluding acquisitions and disposals, and profit sharing amounts payable transferred to debt."

26| 01/08/2024 | AtosFree cash flow reflecting increased investments for customers andreduction of one-off working capital optimization(in € million)

H1 2024

H1 2023

Operating Margin before Depreciation & Amortization (OMDA)

373

487

Capital expenditures

-278

-110

Lease payments

-159

-181

Change in working capital requirement*-1,393-645

Cash from operations (CFO)-1,457-450

Tax paid-45-40

Net cost of financial debt paid

-73

-40

Reorganization, rationalization and integration costs

-171

-274

Other changes**

-167

-165

-1,914

-969

-63

190

5

-59

-15

-34

Opening net debt

-2,230-1,450

Closing net debt

-4,218-2,321

Free Cash Flow (FCF)
Net (acquisitions) disposals

Foreign exchange rate fluctuation on net cash (debt)
Others (share buy-back, dividend paid, capital increase)

Capex up €168 m, reflecting significant
investment in client projects for future
revenue growth€-1.3 bn one-off reduction of optimization
carried out on the working capital vs year-end
fiscal 2023
€103 m lower restructuring cash out in H1 2024"* Change in working capital requirement excluding the working capital requirement change related to items reported in other operating income and expense.
** ""Other changes"" include other operating income and expense with cash impact (excluding staff reorganization, rationalization and associated costs, integration and acquisition
costs) and other financial items with cash impact, net long term financial investments excluding acquisitions and disposals, and profit sharing amounts payable transferred to debt."

27| 01/08/2024 | Atos€1.3 billion less working capital optimization in H1 2024 comparedvs year-end fiscal 2023, as planned
Working capital optimization€1.8 bn650• Working capital optimized through:• Accounts receivablenon-recourse factoring• Cash in advance received from
customers• Specific optimization on trade
payables-€1.3bn455€0.5 bn

208

712

254
33

December 23
Accounts receivable28| 01/08/2024 | Atos

June 24
Cash in advance

Actions on trade payables• Atos does not have a reverse
factoring program• Plan to continue to reduce theworking capital optimization

Free cash flow reflecting increased investments for customers andreduction of one-off working capital optimization(in € million)

H1 2024

H1 2023

Operating Margin before Depreciation & Amortization (OMDA)

373

487

Capital expenditures

-278

-110

Lease payments

-159

-181

Change in working capital requirement*-1,393-645

Cash from operations (CFO)-1,457-450

Tax paid-45-40

Net cost of financial debt paid

-73

-40

Reorganization, rationalization and integration costs

-171

-274

Other changes**

-167

-165

-1,914

-969

-63

190

5

-59

-15

-34

Opening net debt

-2,230-1,450

Closing net debt

-4,218-2,321

Free Cash Flow (FCF)
Net (acquisitions) disposals

Foreign exchange rate fluctuation on net cash (debt)
Others (share buy-back, dividend paid, capital increase)

Including:• €96m of costs incurred on onerous
contracts• €34m of payments of advisors feeson the restructuring of the Groupand on the assets disposals• €13m of legal costs"* Change in working capital requirement excluding the working capital requirement change related to items reported in other operating income and expense.
** ""Other changes"" include other operating income and expense with cash impact (excluding staff reorganization, rationalization and associated costs, integration and acquisition
costs) and other financial items with cash impact, net long term financial investments excluding acquisitions and disposals, and profit sharing amounts payable transferred to debt."

29| 01/08/2024 | Atos

Financial restructuring Update

Completion of an important step in the financial restructuring process

✓

✓

✓

Secured c.€1.7 bn
new financings
to fund the businessNet debt Reductionby €3.1 bn• €2.9 bn of debt
equitization• €0.2 bn of capitalincreases

Debt maturity
extended to 2029
and beyond€800 m short-term
interim financing to
be refinanced atclosing30 | 01/08/2024 | Atos

04

Key takeaways
Jean Pierre MustierCEOKey takeaways

32| 01/08/2024 | Atos

1

Refinancing plan secures
Atos long-term future2

Renewed focus on businessgrowth, contract delivery
and client satisfaction

3

Ongoing strong
employee commitment

05

Q&A session

Thank you!
For more information please contact:
David Pierre-Kahn – Head of Investor Relations
david.pierre-kahn@atos.net
M+ 33 6 28 51 45 96

Atos is a registered trademark of Atos SE. © 2024 Atos. Confidential
information owned by Atos, to be used by the recipient 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.