Econocom - 2020 annual report

chairman’s message

2020 was marked by an unprecedented health crisis, the economic and social consequences of which were, and still are, particularlyharsh for peopleand businesses. In this particular context, Econocom's 2020 results highlight the resilience of its Business Model: revenue of €2,559 million, down 11.3% on • an organic basis compared to 2019. This decrease is largely attributable to the effects of the health crisis, which has considerablysloweddowneconomicactivity and caused delays in the completion of certain customer projects and delays in contracting intonewbusiness; profit (loss) (1) from continuing operations • was up slightlyon a like-for like basisby 2.2% to €122.5million,reflectingthe improvement in our current operating profitability that was 4.8% (vs.4.2% in 2019). To achieve this level of performance in 2020, we met the plan’s target of reducing structural expenses by €97 million by taking advantage of the continuous profitability improvement our Services activities and a focus on projects withhigher added value.

We also achieved the debt reduction target set two years ago by the Group, allowing us to regain full flexibility to tackle the next growth cycleon solid grounds. Over the last two years, Econocom has focused on a transformation plan for its economic tool in order to gain agility and competitiveness. This consolidation phase was a necessary condition for preparing the Group’s future under the best possible conditions. Today, thanks to our values and our know-how and the commitment and involvementof all our employees,we are now ready to resume the path to sustainable growth, both organically and through targeted acquisitions, while continuing to control our costs anddebt.

Jean-Louis Bouchard Chairman of theBoardof Directors and Chief Executive Officer

Before amortisation of intangible assets from acquisitions. (1)

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2020 annual report