Econocom - 2019 Universal registration document

02 group overview

financial position and results

PROFIT (LOSS) FROM CONTINUING OPERATIONS 4.2.3.

2019

2018 restated*

2017

in € millions

Technology Management & Financing Services Digital Services & Solutions Total recurring operating profit

43.9

52.3

92.4

82.3

58.6

62.0

126.2

110.9

154.4

In accordance with IFRS 5, 2018 income and expenses of activities discontinued in 2019 are reclassified to the * income statements of 2018 under "Profit (loss) of discontinued operations". However, in accordance with the provisions of IFRS 16, which came into force on 1 January 2019, the 2018 data is not restated for the impact of this regulation on leases. In addition, the 2018 consolidated income statement is impacted by the recognition henceforth on the principal basis (within the meaning of IFRS 15) of direct deliveries.

of 14.5%. Non-recurring expenses stood at €24.8 million, up €94.9 million over 2018 under the effect of reorganisation measures and consequences of fraud, of which the Group was a victim in Italy. In 2017 and 2018, non-recurring expenses amounted to €19.9 million in 2018 following adjustments to the accounting methods used for changes in the fair value of put options in debt instruments now recorded as equity. FINANCIAL POSITION 4.2.5. The Group boasted a sound financial position at 31 December 2019, with net cash at bank of €284 million and net debt under control at €252.2 million, less than 1.4x its 2019 EBITDA. At 31 December 2018, net debt stood at €251,7 million, less than 1,6x Group EBITDA in 2018. At 31 December 2017, net debt stood at €278.6 million, less than 1.5x Group EBITDA in 2017.

The Group’s profit from continuing operations before amortisation of intangible assets from acquisitions is €126.2 million, i.e. 4.3% of revenue. In the second half the Group amplified its cost reduction plan, resulting in gross savings of around €30 ژ million offsetting the decline in the contribution by the Italian subsidiary. In 2018 the Group’s profit from continuing operations stood at €110.9 million, accounting for 3.8% of revenue, affected by the decrease in operating profit from Technology Management & Financing. In 2017, the Group's profit from continuing operations increased by 10.1% to €154.4 ژ million. Growth was driven by the Technology Management & Financing and the Products and Solutions business lines. For the Group as a whole, profitability was 5.2%. OPERATING PROFIT 4.2.4. was €99.4 ژ million in 2019, compared with €86.8 ژ million in the previous year, a decrease The Group’s operating profit

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2019 annual report