Econocom - 2019 Universal registration document

05 management report management report of the board of directors on the financial statements Management Report of the Board of Directors on the financial statements for the year ended 31 ژ December 2019 presented to the Annual General Meeting of 19 ژ May 2020 In accordance with prevailing legislation and the Company’s Bylaws, we submit to you for approval our report on the Company’s operations and the financial statements for the year ended 31 ژ December 2019, as well as the compensation report. The definitions of the performance indicators are provided as an appendix to this report when they differ from the commonly accepted definitions. The non-financial information required under articles ژ 3 section ژ 6 and 3 section ژ 34 of the Belgian Companies Code ( Code des sociétés ) is reiterated in chapter ژ 3, “Corporate Social Responsibility”. Group's financial position 1. and ژ highlights

In 2019 the Econocom group posted revenue of €2,927 ژ million from continuing operations, identical, at constant standards to 2018 revenue in terms of organic growth, there was a slight decline of 0.8% compared to the previous year. Restated for the drop in revenue of Technology Management & Financing (TMF) in Italy, growth amounted to 4.5% (of which 3.7% organic growth). Revenue from the TMF business totalled €1,124 ژ million with a 10% decline due mainly to the contraction of the business of its Italian subsidiary amounting to almost €130 million on a full year basis. Excluding this impact, TMF revenue rose by 0.6% thanks to the performance of the other regions (mainly France, Belgium, Spain and the United Kingdom). The Digital Services and Solutions business (DSS, comprising Products and Solutions and Services) stood at €1,802 ژ million, an increase of 7.4%, including 6.2% in organic growth. This sharp increase was driven by the distribution of “products and solutions”, with a revenue increase of more than 10% (to €1,132 ژ million), with major projects in digital equipment for

secondary schools or main local authorities, for example. Lastly the Group benefited from the fine performance of the “services” entities, which posted a 2.9% increase in revenue, up €670 ژ million, driven mainly by digital technologies. discontinued operations amounted to €161 ژ million. As part of its effort to refocus its business activities, in the fourth quarter the Group slightly expanded the scope of application of IFRS ژ 5 by adding five small entities to be discontinued. The Profit from Continuing Operations ژ (1) amounted to €126.2 ژ million despite the decreased contribution by TMF Italy compared with 2018. To achieve this result, in the second half the Group stepped up its cost-cutting plan, leading to gross savings of around €30 ژ million for the entire Group (compared with the €20 ژ million initially announced) which, combined with the positive business trend throughout the year, resulted in a significant increase in ROC over 2018 (more than 13%). In 2019, revenue from

Before amortisation of intangible assets from acquisitions. (1)

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2019 annual report