Econocom - 2019 Universal registration document

02 group overview

financial position and results

Financial position and results 4. Highlights of the past 4.1. three years 2019 was notable for:

2018 was notable for: revenue of €2,999 ژ million, reflecting • organic growth of 2.7%. This revenue figure reflects the first application of IFRS ژ 15; profit from continuing operations (1) stands • at €110.9 ژ million; in March ژ 2018, the issue of an OCEANE • bond maturing in 2023 for a nominal amount of €200 ژ million. This convertible bond aims to support the Group’s investments in its new strategic plan; the continuation of Econocom’s • investment strategy, initiated in 2014, through the acquisition of majority shareholdings in new subsidiaries (see below) while multiplying innovative initiatives on the Planet. These transactions were intended to strengthen the Group’s know-how in the most buoyant market segments and to roll out its original model in the leading European countries; the return in October of Jean-Louis • Bouchard, founder of the Group and Chairman of the Board of Directors, to the position of CEO; the continuation of the Group’s cash • management efforts, which significantly reduced the Group’s working capital requirements and lowered net book debt. 2017 was notable for: the achievement of the objectives of the • five-year Mutation strategic plan launched in 2013, with a two-fold increase in revenue (before the application of IFRS ژ 15) and profit from continuing operations to €3 ژ billion (1) and €154.4 ژ million respectively;

revenue of €2,927 ژ million stable over its • continued activities at constant standards, identical to 2018. On an organic basis, it was down slightly by 0.8%. Restated for the drop in revenue of TMF in Italy, growth amounted to 4.5% (of which 3.7% organic growth); in the process of refocusing its activities, • the Group placed 13 companies/activities in the IFRS ژ 5 scope of application (discontinued activities); profit from continuing operations (1) which • stands at €126 ژ million for continuing activities; the companies Jade and Rayonnance • were sold (however, the Group has retained 10% of Rayonnance); the Group launched a plan to reduce • direct and indirect expenses by €96.5 ژ million gross spread out over three years, resulting in savings of €30 ژ million in 2019; net accounting debt remained stable • compared with 2018. On the one hand, this reflects sound operating cash flow generation, the cash inflows received from the partial sale of Rayonnance in December, as well as the decline working capital requirements for EDFL and, on the other hand, the cash outflows in the year related to the acquisition of non-controlling interests in Satellites, to the redemption of the issue premium and to treasury share buybacks; as at December ژ 2019, treasury shares • totalled 9.56% of the share capital.

Before amortisation of intangible assets from acquisitions. (1)

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2019 annual report