Econocom - 2020 annual report

02 group overview

financial position and results

PROFIT (LOSS) FROM CURRENT OPERATING ACTIVITIES 4.2.3.

2020

2019 restated*

2018 restated**

in € millions

Technology Management & Financing Services

37.0

44.0

52.3

Digital Services & Solutions

85.5

83.6

58.6

Total Profit (loss) from current

122.5

127.6

110.9

operating activities (1)

In accordance with IFRS 5, 2019 income and expenses of activities discontinued in 2020 are reclassified to the * income statements of 2019 under “Profit (loss) from discontinued operations”. In accordance with IFRS 5, 2018 income and expenses of activities discontinued in 2019 are reclassified to the ** income statements of 2018 under “Profit (loss) from discontinued operations”. However, in accordance with the provisions of IFRS 16, which came into force on 1 January 2019, the 2018 data is not restated for the impact of this regulation on leases. Before amortisation of intangible assets from acquisitions. (1)

PROFIT (LOSS) 4.2.4. FROM OPERATING ACTIVITIES The Group’s profit (loss) from operating activitieswas €84.1 millionin 2019, compared with €101.2 million in the previous year. Non-recurring expenses amounted to €36.2 million,up comparedwith€26.8 million in 2019, driven in particularby reorganization measures in connection with the cost reduction plan. In 2018, non-recurring expenses amounted to €19.9 million as a result of new organisationmeasures and costs associated with the closure of sites. FINANCIAL POSITION 4.2.5. The Group boasted a sound financial position at 31 December 2020, with net cash at bank of €284 million and a positive net cash position of €20.2 million. At 31 December 2019, as at 31 December 2018, net financial debt stood at €252 million, less than 1.5x Group EBITDA in 2019.

The Group’s profit from current operating activities before amortisation of intangible assets from acquisitions is €122.5 million, i.e. 4.8% of revenue. The Group benefited from the effects of its cost-cutting plan launched in early 2019, the continuous productivity improvement in Services and its focus on projectswith higheraddedvalue. In 2019 the Group’s profit from current operating activities stood at €127.6 million, accounting for 4.4% of revenue, makes by an improvement in profit (loss) from operating activities from Digital Services & Solutions. In 2018 the Group’s profit from current operating activities stood at €110.9 million, affected by reduced profitability in Technology Management & Financing. For the Group as a whole, profitability was 3.8%.

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2020 annual report