Econocom - 2020 annual report

05 management report profit for the year

Net and gross debt The definition of net debt used by the Group (see note 14.3 to the consolidated financial statements) is gross debt (presented below) less gross cash and cash equivalents. It does not include the Group’s gross liability for purchases of leased assets or its residual interest in leased assets. Gross debt includes all interest-bearingdebt and debt incurred by receiving financial instruments. Parent company 2020 2.3. financial statements of Econocom group SE Econocomgroup SE, as the Group’s holding company, manages a portfolio of securities, receives dividends from its subsidiaries and oversees the Group’sdevelopment. It also provides services to the Group’s subsidiaries in the areas of management, IT, cash, guarantees, provision of staff, consulting, communication and marketing. These services are billed accordingto normal market terms. The revenue stated hereafter refers to Econocom group SE’s parent company financial statements,preparedin accordance with Belgian legislation. The cost of services rendered to the Group’s subsidiaries during the year totalled €15.9 million, comparedwith €23.5 million in the previousyear. Operating profit for the year amounted to -€9.6 million, compared with €2.6 million in 2019. In 2020 it included non-recurring operating expenses of €5.1 million. INCOME STATEMENT 2.3.1. OF ECONOCOM GROUP SE

Recurring totalled €22.1 million, compared with €19.5 million in 2019. It consists mainly of dividends received from subsidiaries in the amount of €25.0 million (compared to €18.7 million in 2019), income net of interest and guarantee commissions invoiced to the subsidiaries in the amount of €7.5 million (compared with €12.8million in 2019), and the cost of external debt in the amount of €10.3 million (compared with €11.7 million in 2019). Non-recurring financial income totalled €1.2 million (compared to a net expense of €39.4 million in 2019). It mainly includes the capital gains on the disposal of companies and the gain resulting from the partial buybacks of convertible bonds during the year as well as a decrease in the value of equity investments.Conversely,2019 financial income included capital and impairment losses on the disposal equity interests in the amount of €16.5 million and on treasury shares. Income tax expense came to €0.3 million. Net profit totalled €13.3 million, compared with a loss of €19.1 million in the previous year. BALANCE SHEET 2.3.2. OF ECONOCOM GROUP SE Econocom group SE’s equity stood at €276.9 million,comparedwith €349.0 million in 2019. This change is attributable to the cancellation of treasury shares decided by the General Meetingof 19 May 2020 for a net amount of €59.6million, the dividendpaid in November2020 in the amountof 25.7 million and the profit for the year (a positiveamount of €13.3 million). financial income

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2020 annual report