Econocom - 2020 annual report

05 management report risk factors and disputes

Risk factors and disputes 3. Risk factors did not change significantly in 2020. They are described in note 19. Outlook for 2021 4. and shareholders’ compensation

Over the last two years, Econocom has focused on a transformation plan for its economic tool in order to gain agility, flexibility and competitiveness. This consolidation phase was a necessary condition for preparing the Group’s future under the best possible conditions. The targets set for reducing structural costs, streamlining the business portfolio and reducing the Group’s substantial debt were achieved in 2020. In 2021, the Management of the Econocom group will continue to pay particular attentionto generatingcashandmaintaining rigorous cost management.

As a result of the Group’s strong financial position, the Board of Directors will recommend to the General Meeting to proceedwith a refund of the issue premium, considered as paid-in capital, in the amount of €0.12 pershare. This refund represents stability compared to recent years. Moreover, the Group plans to continue share buybacks. Given the persistence of a wait-and-see market and an economic environment still impactedby the healthcrisis, the first quarter is expected to follow the trend of the last quarter of 2020. However, the Group confirms its objective of a return to growth for 2021.

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2020 annual report