Econocom - 2019 Universal registration document

02 group overview group positioning

Technology 3.1. Management & Financing MARKET: A DEMAND FOR 3.1.1. GREATER FLEXIBILITY Consumption oriented towards use rather than ownership, seeking solutions for making costs more flexible, developing the circular economy: these phenomena have encouraged the development of new methods of financing (rental, variable rents, etc.). Use rather than ownership Boosted by a fast-growing digital transformation market, the trend of consumption based on use rather than ownership is gathering strength. While traditional consumption patterns are still present, especially for strategic hardware, which large companies continue to want to keep control of, a mixed model is emerging in the IT and digital segments. Increasingly accustomed to the new standards of digital leaders, companies are now seeking solutions to improve the customer and employee experience, while favouring an approach based on return on investment, while making their costs more flexible at the same time. A trend reinforced by changes in accounting standards This trend to make costs more flexible is likely to be strengthened in the coming years by developments in IFRS coming into force in 2019. Companies that seek to deconsolidate their assets with a material unit value will have to hand over control of said assets to service providers who will in turn use the assets to provide a comprehensive service or will charge variable rents for their use. In this context, they will have to rely on partners able to optimise the underwriting of their equipment with relevant advice, thanks to their strong knowledge of rented

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Leasing boosted by the circular economy The circular economy is another notable market trend. It has led to the development of the leasing model, which relies on an organised and structured reuse and recycling channel. This model allows companies to rely on specialists for the responsible and sustainable management of their equipment. ECONOCOM: À LA CARTE 3.1.2. FINANCIAL SOLUTIONS A pioneer in leasing, the Econocom group generates 38.4% of its revenue through the Technology Management & Financing business. Today, the offer responds, more than ever before, to companies’ expectations regarding financing. While 30% of them believe that the lack of financial resources is the greatest obstacle to their digital transformation (1) , Econocom offers a wide range of adapted financial solutions. These solutions enable them to fast-track the completion of digital projects (connected devices, mobility, business hardware, IT & multimedia, industry hardware, energy, etc.), while meeting the financial and operational constraints of the players (CFOs, CIOs) and business lines involved. Linearised payment methods Ever attentive to its customers’ needs, Econocom offers all-inclusive or à la carte financial solutions, combining several of its areas of expertise with a linear payment method, resulting in a comprehensive range of leasing solutions and usage- or unit-based invoicing for services, ranging from general scalable lease contracts to subscription service agreements. This contractual flexibility enables the Group to refresh assets on a regular basis and guarantee budget stability.

Econocom, Sia Partners and Ifop. (1)

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2019 annual report