Press Release

Market Update
Atos confirms FY 2023 revenue and operating margin results inline with guidance••

Revenue: €10,693m, up +0.4% organicallyEviden up +2.9% organically
Tech Foundations down -1.7% organically
Operating margin of 4.4% (€467m), up +170 bps organicallyWith year-on-year improvements in both Eviden and Tech Foundations

2023 H2 Free Cash Flow of €-109m•

FY 2023 Free cash flow of €-1,078m, reflecting lower working capital actions
and higher reorganization costs

Net debt position of €2,230 million at year-end 2023•••Bank covenants met
Gross debt of €4,654m
Cash, cash equivalent & short-term financial assets of €2,423m

FY 2023 earnings release rescheduled for March 20th to complete
audit of non-cash goodwill impairment charge•

External auditors, Deloitte and Grant Thornton awaiting review of independent
business report to complete audit of non-cash goodwill impairment

Discussions with EPEI on potential sale of Tech Foundations haveconcluded with no deal reached•••••

Proposed new deal terms and pricing could not be mutually agreed upon
No indemnification by either party
Each party released from any reciprocal obligations except for confidentiality
Atos to operate Tech Foundations and Eviden as separate businesses with acoordinated go-to-market strategy
Atos to continue to consider strategic options that are in best interest of its
customers, employees, and shareholders

Paris, February 28, 2024
Atos reports today that it has met its full year guidance for revenue and operating margin
and that its free cash flow for the second semester was €-109 million.

Page 1 sur 5Comparison with 2023 guidance for revenue and operating margin by business as well as
free cash flow is presented in the table below:

2022

2023

2023

Guidance2023

Organic
growth %(€ million)

Organic
growth %Group revenue

0.1%

10,6930.4%

0.0% to 2.0%

Eviden revenue

2.0%

5,089

2.9%

Acceleration vs. 2022

Tech Foundations revenue

-1.6%

5,604

-1.7%

Managed decrease

2022

2023

2023

OM%

(€ million)

OM%

Group operating margin

3.1%

467

4.4%

4% to 5%

Eviden operating margin

5.2%

294

5.8%

Improvement vs. 2022

Tech Foundations operating margin

1.3%

172

3.1%

Positive territory20222023(€ million)(€ million)

Guidancecompliance

Guidance
2023-187-1,078

Free cash flow

Guidance
2023c. €-1,000

Net debt and debt covenant
In addition, the Company reports that its net debt was €2,230 million at year-end 2023
and consisted of:• Cash, cash equivalent and short-term financial assets of €2,423 million• Borrowings of €4,654 million
The Group remained within its borrowing covenant applicable to its banks financing, witha leverage ratio (net debt divided by pre-IFRS 16 OMDA) of 3.34 times at the end ofDecember 2023 compared with the bank covenant of 3.75x.

Non-cash goodwill impairment
Full annual goodwill impairment test is performed at year end, in compliance with IAS 36
and in the context of the contemplated disposals of assets. Fair values are determinedbased on a multicriteria approach, including Discounted Cash Flows (“DCF”) and trading
multiples, consistent with the methodology applied previously.
Group external auditors Deloitte and Grant Thornton are awaiting an independent business
review report to complete their audit of the company’s non-cash goodwill impairment
results.

Page 2 sur 5

Reschedule of the earnings publication
The Company is rescheduling its full earnings release to March 20 th, 2024, as Atos Groupauditors Deloitte and Grant Thornton have not completed their audit work on the goodwill
impairment.
End of exclusive negotiations with EPEI for the sale of Tech Foundations
The company indicates that in the context of its exclusive negotiations with EP Equity
Investment (“EPEI”) for the potential sale of Tech Foundations announced on August 1,
2023, the parties have not reached a mutually satisfactory agreement. The discussions
and the put agreement have therefore been terminated by mutual consent, with noindemnification on either side and the parties are released from any future reciprocal
obligation subject to maintaining the confidentiality agreements. Atos will continue to run
Tech Foundations and Eviden as separate businesses and leverage the strengths of theirrespective offerings with a coordinated go-to-market strategy. Atos will continue toconsider strategic options that are in the best interest of its customers, employees andshareholders.
Management conference callManagement invites you to an international conference call on Wednesday, February
28 2024 at 08:00 am (CET – Paris).
You can join the webcast of the conference:-via the following link: https://edge.media-server.com/mmc/p/chprpvb2-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 ofthe conference using the following link:
https://register.vevent.com/register/BI78a1dc5b26674cac9b424698c2f
24fe2
Upon 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 theconference access information provided in the email received upon registration.

After the conference, a replay of the webcast will be available on atos.net, in theInvestors section.
***Contacts
Investor relations

David Pierre-Kahn
investors@atos.net+33 6 28 51 45 96

Individual shareholders

0805 65 00 75

Press contact

globalprteam@atos.net

Page 3 sur 5

FY 2023 Revenue and operating margin at constant scope and exchange rates
reconciliation
For the analysis of the Group’s performance, revenue and OM for 2023 is compared with
2022 revenue and OM at constant scope and foreign exchange rates. Reconciliation
between the 2022 reported revenue and OM, and the 2023 revenue and OM at constantscope and foreign exchange rates is presented below, by Business Lines and Regional
Business Units.

In 2023, revenue was negatively impacted by €62 million as a consequence of the Group
review of its accounting of some software resales following the IFRIC IC decision illustrated
by the decision published by ESMA in October 2023 that enacted a restrictive position on
the assessment of Principal vs. agent under IFRS 15 for the resale of third-party software
licenses. This impact affected Eviden in the Americas RBU. It had no impact on theoperating margin. Revenue for the 12 months period ended December 31, 2022 wasrestated accordingly by €-71 million.

FY 2022 revenuein € million

FY 2022
Restatement
published

Eviden5315

Tech Foundations

6026

Total

FY 2022
Operating marginin € million

11341-71

FY 2022
Restatement
published

Eviden276

Tech Foundations
Others & Global
Structures
Total-715244-4-2202-804943

6026

4-2222-1065703

11270

0-442

4-186 10646

FY 2022 Internal
restated transfers

Exchangerates
effect on Exchange
Scope
FY
acquiredrates
effects2022*/
effects
disposed
perimeter276-2-320-10233

79

79

3-220-55600-21003560-53-15289

3560

FY 2022 Internal
restated transfers

Exchangerates
effect on Exchange
Scope
FY
acquiredrates
effects
2022*/
effects
disposed
perimeter01* : At constant scope and foreign exchange rates
Scope effects on revenue amounted to €-438 million. They mainly related to the divestureof Atos satellite ground testing business and Russia in 2022, and in 2023 to the divesturesof Italy in Southern Europe, of Unified Communications and Collaboration Services acrossall regions, of EcoAct in Americas, Southern Europe and Northern Europe & Asia-Pacific,of State Street in Americas, and of Elexo in Southern Europe.

Page 4 sur 5

Currency effects negatively contributed to revenue for €- 186 million. They mostly camefrom the depreciation of the American dollar, the British pound, the Argentinian peso, andthe Turkish lira.
Internal transfers adjustments reflected split of Processia perimeter from Americas toNorthern Europe & Asia-Pacific and to Southern Europe.

***About Atos
Atos is a global leader in digital transformation with 95,000 employees and annual revenueof c. €11 billion. European number one in cybersecurity, cloud and high-performancecomputing, the Group provides tailored end-to-end solutions for all industries in 69countries. A pioneer in decarbonization services and products, Atos is committed to asecure and decarbonized digital for its clients Atos is a SE (Societas Europaea), listed onEuronext Paris.
The purpose of Atos is to help design the future of the information space. Its expertiseand services support the development of knowledge, education and research in a
multicultural approach and contribute to the development of scientific and technologicalexcellence. Across the world, the Group enables its customers and employees, andmembers of societies at large to live, work and develop sustainably, in a safe and secure
information space.

Disclaimer
This document contains forward-looking statements that involve risks and uncertainties,
including references, concerning the Group's expected growth and profitability in thefuture which may significantly impact the expected performance indicated in the forwardlooking statements. These risks and uncertainties are linked to factors out of the controlof the Company and not precisely estimated, such as market conditions or competitor'sbehaviors. Any forward-looking statements made in this document are statements about
Atos’s beliefs and expectations and should be 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 informationthat is not historical information. Actual events or results may differ from those describedin this document due to a number of risks and uncertainties that are described within the2022 Universal Registration Document filed with the Autorité des Marchés Financiers (AMF)
on April 21st, 2023 under the registration number D.23-0321. Atos does not undertake,and specifically disclaims, any obligation or responsibility to update or amend any of theinformation above except as otherwise required by law. This document does not containor constitute an offer of Atos’s shares for sale or an invitation or inducement to invest in
Atos’s shares in France, the United 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 made after the ongoing indepth analysis considering tax, legal, operational, finance, HR and all other relevant
aspects have been completed and will be subject to general market conditions and othercustomary conditions, including governance bodies and shareholders’ approval as well as
appropriate processes with the relevant employee representative bodies in accordancewith applicable laws.
Revenue organic growth is presented at constant scope and exchange rates.
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