Econocom - 2020 annual report

02 group overview

financial position and results

Financial position and results 4. Highlights 4.1. of the past three years 2020 was notable for: 2019 was notable for: revenue of €2,927 million stable over its • continued activities at constant standards, identical to 2018. On an organicbasis, it was down slightlyby 0.8%. Restatedfor the drop in revenueof TMF in Italy, growthamounted to 4.5%(of which 3.7% organic growth);

revenue from continuing activities of • €2,559 million at constant standards, down 11.3% compared to 2019; profit (loss) from current operating • activities (1) slightly up, totalling €122.5 millionfor continuingactivities; EBC (Econocom Business Continuity) and • digital.security were sold; the implementation of the plan to reduce • direct and indirect expenses by €96.5 million (gross) initiated in 2019 is being finalised; 2020 posted a significant decline in net • financial debt, with a net cash position of €20 million at the end of the year. This achievementwas made possible through a significant improvement in operating cash flow, proceeds from the divestiture of non-strategic assets for around €125 million, while maintaining an interim dividend payment and treasury share buybacks; as at 31 December 2020, treasury shares • totalled 4.43% of the share capital.

in the process of refocusing its activities, • the Group placed 13 companies/activitiesin the IFRS 5 scope of application (discontinuedactivities); profit (loss) from current operating • activities which stands at €126 million for continuing activities; the companies Jade and Rayonnancewere • sold (however, the Group has retained 10% of Rayonnance); the Group launcheda plan to reduce direct • and indirect expenses by €96.5 million gross spread out over three years. saving totalled €30 million in 2019; net accounting debt remained stable • comparedwith 2018. On the one hand, this reflects sound operating cash flow generation, the cash inflows received from the partial sale of Rayonnancein December, as well as the decline working capital requirements for EDFL and, on the other hand, the cash outflows in the year related to the acquisition of non-controlling interests in Satellites, to the redemption of the issue premium and to treasury share buybacks; as at 31 December 2019, treasury shares • totalled 9.56% of the share capital.

Before amortisation of intangible assets from acquisitions. (1)

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2020 annual report