Econocom - 2019 Universal registration document

04 risk factors

dependency risk

Dependency risk 3. Dependence on 3.1. refinancing institutions In the course of its business, Econocom assigns most of its finance lease contracts to refinancing institutions. These institutions generally focus on clearly-defined geographical areas or types of equipment. In addition, the Group strives to maintain a balanced portfolio of institutions in order to avoid being overdependent on one or more institutions. Between 2018 and 2019, the proportion of the Group’s five biggest funders was down year-on-year, accounting for 58% of the total value of refinanced rents in 2019. The Group’s main funder in 2019 represented approximately one-quarter of the total value of refinanced rents. Customer 3.2. dependency risk The Group continually strives to expand its client portfolio. This is a strategic development focus area aimed at gaining market shares. At 31 ژ December 2019, no single client represented over 5% of the Group’s consolidated revenue.

Supplier dependency 3.3. risk Given the broad choice of potential suppliers and the fact that they are largely interchangeable, Econocom’s dependence on suppliers is very limited. For the Technology Management & ژ Financing, Products & ژ Solutions and Services activities, the choice of suppliers is ultimately made by our clients. For these activities, in the event of a supplier default, an alternative supplier is chosen. At 31 ژ December 2019, no supplier accounted for more than 15% of the Group’s total purchases. For its Technology Management & Financing, Services and Products & Solutions activities, the Group develops partnerships with hardware manufacturers, telecoms operators, software vendors and solutions providers. However, it strives to remain independent from these companies in order to offer the best possible solution in terms of architecture, hardware and software. Technology 3.4. dependency risk

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2019 annual report