Econocom - 2020 annual report

05 management report profit for the year

conversion ratio of 1 share for 1 bond, 22,874,865 new shares would be issued. Finally, the ExtraordinaryGeneral Meeting of 19 May 2020 renewed, for a five-year period, the authorisation given to the Board of Directors, in accordance with articles 7:198 and 7:199 of the CSA to carry out one or more capital increases of up to a maximum total amount of €23,512,749.67 (excluding issue premiums).At 31 December2020, authorised unissued share capital (excluding issue premiums) stoodat €23,512,749.67. The Company’s ownership structure is described in section 5, “Corporate governance statement”. Treasury shares Econocom group has a share buyback programme, which allows it to: deliver shares to avoid potential dilution of • shareholders’interestsdue to the exerciseof options; award to free share plan beneficiaries; • pay for any external growthtransactions; • cancel shares acquired. • The Extraordinary and Special General Meeting of 19 May 2020 renewed for a five-year period the authorisation given to the Board of Directors to buy back treasury shares. The minimum unit purchase price was set at the equivalent of €1 and the maximum unitprice at €10.

The maximum number of shares to be purchasedthroughout the five-year period is 44,176,086. Since the beginning of the buyback programme, 7,998,561 shares have been acquired at 31December 2020. In 2020, the following treasury share movements took place: Econocom group acquired 10,871,023 • Econocomgroup shares, for an acquisition priceof €25.6 million; Econocom group cancelled 24,500,000 • shares, in accordance with the decision of the ExtraordinaryGeneralMeetingof 19 May 2020; Econocom group transferred 50,000 • treasury shares to a Free Share Plan beneficiary. As at 31 December 2020, Econocom group held 9,779,167 treasury shares acquired under its share buyback program. The treasury shares represent 4.43% of the total number ofshares issued. The voting rights associated with the shares held by the Company have been suspended. The shares held by the Company do not give entitlement to dividends. Econocom group’s distributable reserves (statutory data) stood at €0.4 million, in addition to retained earnings in the amount of €30.4 million. Econocomgroup’snon-distributablereserves stoodat €25.3million in additionto restricted issue premiums in the amount of €194.7 million.

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2020 annual report