econocom rapport annuel 2020

Gartner, Forecast : IT Services, Worldwide, 2018-2024, 3Q20 Update(2) https://www.itforbusiness.fr/les-10-tendances-cloud-en-2021-41991)(3) SMACS : acronyme pour définir les marchés suivants : Social, Mobile, Analytique, Cloud, Sécurité(2) SMACS : acronyme pour définir les marchés suivants : Social, Mobile, Analytique, Cloud, Sécurité(2) https://www.itforbusiness.fr/les-10-tendances-cloud-en-2021-41991)(3) Gartner, Forecast : IT Services, Worldwide, 2018-2024, 3Q20 Update(2)

01. THE ESSENTIALS 5

One Digital Company1. 7

The Econocom Galaxy2. 9

3. 2020 key figures 10

Performance and share capital4. 12

Governance5. 14

02. GROUP OVERVIEW 17

Group history1. 18

2. Group structure 20

Group positioning3. 22

Financial position and results4. 42

Corporate Governance5. 47

Research & Development6. 63

Principal investments7. 64

Additional information8. 65

03. CORPORATE SOCIAL RESPONSIBILITY 67

Our approach 68

Actions and highlights 69

Nurture our excellence through responsible commitment1. 72

Support the new responsible uses of our customers and users2. 88

Federate an ecosystem to create shared value3. 94

Key performance indicators4. 102

04. RISK FACTORS 103

Operational risks1. 104

Regulatory risk2. 106

Dependency risk3. 107

Financial risk4. 108

05. MANAGEMENT REPORT 111

Management Report of the Board of Directors on the financial statements 112

Group’s financial position and highlights1. 112

Profit for the year2. 114

Risk factors and disputes3. 127

Outlook for 2021 and shareholders’ compensation4. 127

Corporate governance statement5. 128

Subsequent events6. 148

06. CONSOLIDATED FINANCIAL STATEMENTS 149

Consolidated income statement and earning per share1. 150

Consolidated statement of financial position2. 152

Consolidated statement of changes in equity3. 154

Consolidated statement of cash flows4. 156

Notes to the consolidated financial statements5. 158

07. SHAREHOLDERS 259

Share performance and shareholders1. 260

08. STATUTORY AUDITOR’S REPORT ON THE CONSOLIDATEDFINANCIAL STATEMENTS 277

Statutory auditor’s report to the general shareholders’ meeting on the consolidated accounts 278

09. CHAIRMAN’S STATEMENT 285

10. CONDENSED PARENT COMPANY FINANCIAL STATEMENTS 287

Parent company statement of financial position1. 288

Parent company income statement2. 290

Parent company statement of cash flows3. 292

11. KEY CONSOLIDATED FIGURES 295

key consolidated figures 296

2 2020 annual report

32020 annual report

chairman’s message

2020 was marked by an unprecedentedhealth crisis, the economic and socialconsequences of which were, and still are,particularly harsh for people and businesses.

In this particular context, Econocom's 2020results highlight the resilience of itsBusiness Model:

revenue of €2,559 million, down 11.3% on•an organic basis compared to 2019.This decrease is largely attributable tothe effects of the health crisis, which hasconsiderably slowed down economic activityand caused delays in the completion ofcertain customer projects and delays incontracting into new business;

profit (loss)(1) from continuing operations•was up slightly on a like-for like basis by 2.2%to €122.5 million, reflecting the improvementin our current operating profitability thatwas 4.8% (vs. 4.2% in 2019).

To achieve this level of performance in 2020,we met the plan’s target of reducingstructural expenses by €97 million by takingadvantage of the continuous profitabilityimprovement our Services activities and afocus on projects with higher added value.

We also achieved the debt reduction targetset two years ago by the Group, allowing usto regain full flexibility to tackle the nextgrowth cycle on solid grounds.

Over the last two years, Econocom hasfocused on a transformation plan forits economic tool in order to gain agility andcompetitiveness. This consolidation phasewas a necessary condition for preparing theGroup’s future under the best possibleconditions.

Today, thanks to our values and ourknow-how and the commitment andinvolvement of all our employees, we are nowready to resume the path to sustainablegrowth, both organically and throughtargeted acquisitions, while continuing tocontrol our costs and debt.

Jean-Louis Bouchard

Chairman of the Board of Directorsand Chief Executive Officer

Before amortisation of intangible assets from acquisitions. (1)

52020 annual report

01the essentials

One Digital Company1. 7

The Econocom Galaxy2. 9

3. 2020 key figures 10

Performance and share capital4. 12

Governance5. 14


01 THE ESSENTIALS

72020 annual report

01the essentialsone digital company

One Digital Company1.

As the leading digital general contractor in Europe, Econocom conceives,finances and facilitates the digital transformation of large firms and publicorganisations.

With operations in 18 countries, we are among the rare European players tocover the entire digital business chain: from equipment to services and evenfinancing.

Managing complex demand

We can see on the field, that the requirements and needs of our customers arebecoming increasingly complex: technological developments are permanent,projects are increasingly international, CSR issues must be taken into account.Supply is increasingly fragmented software vendors, hardware manufacturers,banks, etc. But above all, end users (employees, customers, etc.) areincreasingly demanding, mobile and connected.

To guide companies in this hazy digital world, we have an easy answer:One Digital Company.

What we do

The Group is one of the few to be able to coordinate and take overallresponsibility for the entire business chain of a digital project: from equipment,to services, to their customised financing with a pay-as-you-go solution...In one or several countries.

How we do it

For its customers, Econocom designs and implements digital services that aregenuinely useful to them and create sustainable value. To this end, our teamsdesign solutions based on their actual uses, always preparing the next stepand placing responsible digital at the heart of our activities.

What makes us different

We complete our digital projects successfully by managing their complexity andsustainability. For this, we rely on specific features that are unique in the market:

the mix of our three business lines; •

our organisation, which enables us to coordinate all digital business lines,•including outsourcing;

our locations in 18 countries.•


01 THE ESSENTIALS

The Econocom Galaxy

CYBER SECURITY ALTER WAY ● ASYSTEL ITALIA ● EXAPROBE

MICROSOFT ALTER WAY ● ASYSTEL ITALIA ● INFEENY

WEB APPS, SAAS & CLOUD

ALTER WAY ● ASP SERVEUR ● BIZMATICA ● ECONOCOM BRASIL ● NEXICA ● SYNERTRADE

INFRASTRUCTURE & NETWORKS

ALTER WAY ● ASYSTEL ITALIA ● ASP SERVEUR ● BIZMATICA ● EXAPROBE ● NEXICA

MOBILITYALTER WAY ● ASYSTEL ITALIA ● BDF ● BIZMATICA ●DMS ● ECONOCOM BRASIL ● ENERGY NET ●GIGIGO ● JTRS

DIGITAL SIGNAGE & MULTIMEDIA

ALTABOX ● ASYSTEL ITALIA ● BDF

CONSULTING BIZMATICA ● HELIS

92020 annual report

01the essentialsthe econocom galaxy

The Econocom Galaxy2.An agile organisation for sustainable digital transformation

Econocom has adopted a unique organisational model, enabling it toimplement its development strategy: the “Galaxy”.

The Planet: the Group’s three legacy professions

At Econocom, we do business for the benefit of our customers and completelyindependently from manufacturers, telecom operators, software vendors andfinancial companies. A digital pioneer for 45 years, the Group is the only playeron the market to combine technological and financial expertise through threeactivities:

Equipment: Econocom supports companies in the implementation of•“turnkey” solutions as a service, integrated into their professional anduser-oriented environments, from installation assistance, through storage,maintenance and recycling for all digital equipment;

Services: personalised services to complement our customers’ digital•projects and quickly meet their business needs. These fall into three majorareas: the user environment, cloud services, infrastructure and hybridization,and application and data modernisation;

Financing: as a pioneer and leader in digital transformation financing,•Econocom offers solutions to remove financial barriers to businessdevelopment, with agile and flexible lease offers while maintaining controlover expenditure.

Satellites: a network of expert companies positionned in strategic digitalsegments

Expert and autonomous SMEs, positioned in the most promising digitalsegments, the Satellites effectively complement Econocom’s historical offersand drive its growth.

The heads of these companies retain a significant share of the capital andhave strong management autonomy to preserve their agility.

This unique model is built on entrepreneurship and trust. It combinesEconocom’s industrial power with the agility of its satellites, enables us to offerour customers comprehensive, tailor-made solutions integrated throughoutthe digital value chain. As their digital challenges evolve, we offer themsolutions that are made for them rather than solutions they will findeverywhere.


01 the essentials2020 key figures

3. 2020 key figures

Consolidated revenue (in € millions) (1)(1)

Revenue by business

Profit (loss) from current operating activities(2) (in € millions)

Profit (loss) from current operating activities by business

In accordance with IFRS 5, 2019 income and expenses of activities discontinued in 2020 are reclassified (1)to the income statements of 2019 under "Profit (loss) from discontinued operations".Before amortisation of intangible assets from acquisitions.(2)

112020 annual report

01the essentials2020 key figures

Shareholders’ equity (in € millions)

Net debt (in € millions)

Breakdown of staff at 31 December 2020


01 the essentialsperformance and share capital

Performance and share capital4.

Ownership structure at 31 December 2020

Basic earnings per share (in €)

Recurring earning per share (in €)

Compensation per share (in € cents)

Refund of issue premiumThe Board of Directors, at the General Meeting on 18 May 2021, will propose to carry out the refund of issue premiums, considered as paid-in share capital, in the amount of €0.12 per share.


01the essentialsperformance and share capital

Change in the share price

Year Highest(in €)

Lowest(in €)

Last(in €)

Average daily volumeof shares traded

2018 7.30 2.28 2.91 833,060

2019 4.01 2.00 2.43 210,320

2020 2.88 1.37 2.46 254,437

Change in market capitalisation

Shareholders’ agendaThe Econocom group share is listed on the Eurolist market (Compartment B) of Euronext Brussels and is included in the Bel Mid and Family Business indices

Code ISIN : BE0974313455

22-04-2021Release of Q1 2021 revenue after trading18-05-2021Annual General Meeting22-07-2021Release of 2021 final half-year results after trading26-08-2021Meeting to review the 2021 half-year results21-10-2021Release of Q3 2021 revenue after trading

Real-time financial information:www.econocom.com

Adjusted after the share split in June 2017.*


01 the essentialsgovernance

Governance5.At 31 December 2020

Board of Directors

Chairman and Chief Executive Officer

Econocom International BV represented by Jean-Louis Bouchard

Vice-Chairperson

Robert Bouchard

Non-executive Directors

Robert Bouchard

Véronique di Benedetto

Gaspard Dürrleman

Bruno Grossi

Jean-Philippe Roesch

Independent Directors

Walter Butler

Adeline Challon-Kemoun

Marie-Christine Levet


01the essentialsgovernance

Executive Committee


Chairman and Chief Executive Officer

Angel Benguigui Diaz

Managing Director – in charge of day-to-day management

Laurent Roudil

Managing Director – in charge of day-to-day management

Eric Bazile

Group Chief Financial Officer

Laurent Caparros

Country Manager ENEA

Chantal De Vrieze

Country Manager Benelux

Philippe Goullioud

General Management, Products & Solutions France

Statutory AuditorPricewaterhouseCoopers

Company Auditors srl

represented by Alexis Van Bavel

01 the essentials



02group overview

Group history1. 18

Group structure2. 20

Group positioning3. 22

The Technology Management 3.1.& Financing activity 23Products & Solutions3.2. 24Services3.3. 27Digital solutions offered 3.4.by Econocom Satellites 29Combination of Planet and Satellite 3.5.know-how 40

Financial position and results4. 42

Highlights of the past three years4.1. 42Consolidated data for the year: 4.2.comparison between 2020, 2019 and 2018 43Equity restrictions4.3. 46

Corporate Governance5. 47

Board of Directors and Advisory 5.1.Committees 47Conflicts of interest5.2. 59Biographies of Directors5.3. 60

Research & Development6. 63

Principal investments7. 64

In 20187.1. 64In 20197.2. 65In 20207.3. 65

Additional information8. 65

Legal and arbitration proceedings8.1. 65Major contracts8.2. 65


02 group overviewgroup history

Group history1.1974Jean-Louis Bouchard founds the Groupunder the name Europe ComputerSystèmes (ECS) in France.

1985Jean-Louis Bouchard sells his stake in ECSFrance to Société Générale but buys backall the foreign subsidiaries. Meanwhile, heacquires Econocom, an American SME.The subsidiaries and Group are renamed“Econocom”.

1986Econocom Belgium is listed on theSecond Marché of the Brussels StockExchange.

1993Acquires Asystel Belgium, makingEconocom Distribution the leading ITdistributor in Benelux.

1996Econocom is listed on the PremierMarché of the Brussels Stock Exchange.

2000Following the public exchange offer onInfopoint group, Econocom is listed on theSecond Marché of the Paris Bourse. TheGroup diversifies by establishing EconocomTelecom, anticipating convergencebetween IT and telecoms.

2001The Group employs 2,000 people.

2002Acquires Comdisco-Promodata in France(administrative and financial managementof IT assets).

2004/2007The Group steps up the pace of itsdevelopment in the telecoms marketwith the acquisition of Signal ServiceFrance, the corporate activity of AvenirTelecom, followed by the corporatedivision of The Phone House France.

In 2007, the Group doubles its capacity inItaly with the acquisition of Tecnolease, anItalian company specialising in computerhardware leasing.

2008Acquires Databail, a French IT infrastructurefinancing company.

2009Opens a nearshore remote servicefacility in Rabat, Morocco.

2010Econocom acquires ECS from SociétéGénérale and becomes the number onecompany in Europe in TechnologyManagement & Financing.

2013Econocom merges with Osiatis group,thus making decisive headway in thedigital services market. As a result of thisacquisition, Econocom earns almost€2.0 billion in proforma revenue, including€650 million in business-to-businessdigital services. The Group now employs aworkforce of more than 8,000 people in20 countries.

2014Econocom group issues €175 millionworth of bonds convertible into cashand/or new shares and/or exchangeablefor existing shares (ORNANE), due tomature in 2019. The proceeds from thisissue are used to strengthen Econocom’sfinancial resources, particularly in thecontext of its Mutation strategic plan.


02group overviewgroup history

2015Econocom is included in the Tech 40 index,selected by EnterNext from among 320listed European high-tech equities. In May,Econocom invested in a Euro PrivatePlacement (Euro PP) of €101 million. It wasin two tranches with maturities of five andseven years, paying interest of 2.364% and2.804% respectively. This helps strengthen,diversify and disintermediate the Group’sfinancial resources while further optimisingthe financial conditions of its borrowings.Econocom group becomes a Europeancompany (societas europeae) on18 December 2015 to reflect its Europeanidentity and ambitions. Lastly, Econocomimplements an external growth strategygeared towards acquiring majority stakesin medium-sized companies offeringsubstantial scope for entrepreneurship. Inthis context, either directly or through itssubsidiary Digital Dimension, the Groupcarried out several acquisition andinvestment operations, particularly in thearea of security: Altasys, Clesys, EconocomDigital Security and one of the leadersspecialising in open source with Alter Way.

2016Econocom now employs over 10,000 people.At end-November, Econocom group tookadvantage of favourable market conditionsto launch a Schuldschein loan issue (privateplacement under German law) in a totalamount of €150 million, thereby increasingits financial resources. During the year,Econocom group continued its original“Satellites” external growth strategy,acquiring either directly or through itssubsidiary Digital Dimension.

2017Seven acquisitions are made:•

new Satellites: Aciernet (acquired by•Exaprobe), LP Digital (acquired by AlterWay), Energy Net in Germany, JadeSolutions and JTRS in the UnitedKingdom;

new Planet members: BIS in the•Netherlands and Belgium, and Biboard inFrance.

In April, Econocom completes the early•conversion of its January 2014 ORNANEbonds due in 2019, boosting equity by€183 million. The Group meets thetargets set in 2012 for the Mutationstrategic plan (doubling revenue andprofit from continuing operations) andpresents its new five-year strategic plan“e for excellence”.

2018The Group employs 10,700 people.Econocom secures its financing by issuinga convertible bond debt (OCEANE) for€200 million in March and maturing in2023. Two external growth operations arecarried out in the first half of the year tosupplement the existing positions inServices in Italy (BDF) and in Spain(Altabox). The new management’s focus inthe second half of the year on reducingworking capital requirements allows forcash generation to be bettered and netdebt reduced.

2019The Group decides to shift its focus backto its historic business “TMF” and to all thesynergistic activities with it within DSS.The Satellites Jade and Rayonnance aresold and 13 other non-strategic activitiesare identified in order to be sold or closed.At the same time, the Group launches amajor cost savings plan of €96.5 millionspread out over three years, with thirtymillion already saved in 2019.

2020In line with the initiatives launched in2019, the Group continued to streamlineits business portfolio. The subsidiaries EBC(Econocom Business Continuity) anddigital.security were sold. The Group isalso making progress in finalising theimplementation of its cost savings planbegun in early 2019. At the same time,the Group continued its strong debtreduction strategy to reach a net cashposition of €20 million at the end of 2020,in line with the target set two years ago.

T


02 group overviewgroup structure

Group structure2.


02group overviewgroup structure


02 group overviewgroup positioning

Group positioning3.Econocom is the “one digital company”

As the leading European digital generalcontractor, Econocom conceives, financesand facilitates the digital transformation oflarge firms and public organisations.

With operations in 18 countries, Econocomis the only European company to cover all ofthe core business lines of digital equipment,services and financing.

Whatever the scope of the project(France/international), Econocom providesits clients with end-to-end assistance andcoordinates all aspects of their digitaltransformation.

As digital jobs are becoming increasinglycomplex, our goal is to help them make theright technological, financial andorganisational choices. Sustainable choicesthat meet the needs of their end users.

The strengths of the Group

Econocom group stands out from itscompetitors thanks to:

45 years’ experience in business•infrastructure management;

a unique combination of expertise coupling•financial innovation with technologicalexpertise;

its dual IT and telecommunications•expertise;

its independence from IT hardware•manufacturers, telecom operators, softwarevendors and financial companies;

its presence in 18 countries, mainly in•Europe.

A unique development model

In addition, its unique development model,the Galaxy (made up of the Econocom“Planet” with its three historic andcomplementary business lines and its“Satellites”, with advanced skills embodied byexpert and autonomous SMEs), helps putEconocom at the forefront of key areas suchas security, web and mobile applications,digital solutions, open source and cloud, etc.This relational and organisational systemaddresses the challenges of the digitalrevolution. This revolution forces organisationsto operate in a different way, withcollaborative and transversal organisationsthat take priority over hierarchical and verticalstructures.

The five pillars of the Econocom offerderived from this unique model are:

Technology Management & Financing•activity (see Chapter 3.1);

Products & Solutions (see Chapter 3.2);•

the Services activity (see Chapter 3.3);•

the digital solutions of the Satellites•(Cybersecurity, Microsoft, web apps, SaaS &Cloud, Infrastructure & Networks, Mobility,Digital Signage & Multimedia, Consulting)(see Chapter 3.4);

the combination of Planet and Satellites•expertise: “horizontal” transversal offers (seeChapter 3.5).


02group overviewgroup positioning

The Technology 3.1.Management & Financing activity

A MARKET IMPACTED 3.1.1.BY THE HEALTH CRISIS

The global Covid-19 pandemic has disruptedall activities, particularly the rental market. InFrance in 2020, we saw a decline in therental activity for business equipment. Thisgeneral decrease was mainly due to adecrease in technology spending of around6.6%(1).

Nevertheless, 2020 ended on a positive notethanks to operating leases (excludingpurchase options) which returned to positiveterritory in the last quarter.

A DEMAND FOR INCREASED 3.1.2.FLEXIBILITY

More agile financing solutions

The current fragile and uncertain economicand financial context reinforces thetendency of companies to opt for solutionsthat offer flexible payment and flexibledurations of use and that enable to maintainliquidities.

As such, leasing is an obvious alternative forcompanies seeking to stagger theirpayments when needed, to have variableinstallments for their rents, or even to payfor their equipment only when used, or tobenefit from a cash contribution throughthe sales/leaseback transactions of theirtechnological assets.

Digital transformation: a strong trend

traditional consumption patterns are stillpresent, especially for strategic hardware,which large companies continue to want tokeep control of, a mixed model is emergingin the IT and digital segments. Increasinglyaccustomed to the new standards of digitalleaders, companies are now seekingsolutions to improve the customer andemployee experience, while favouring anapproach based on return on investment,while making their costs more flexible at thesame time.

Boosted by a fast-growing digitaltransformation market, the trend ofconsumption based on use rather thanownership is gathering strength. While

Leasing boosted by the circular economy

The circular economy is another notablemarket trend. It has led to the developmentof the leasing model, which relies on anorganised and structured reuse and recyclingchannel. This model allows companies to relyon specialists for the responsible andsustainable management of theirequipment.

ECONOCOM: À LA CARTE 3.1.3.FINANCIAL SOLUTIONS

A pioneer in leasing, the Econocom groupgenerated 36% of its 2020 revenue throughTechnology Management & Financing.Today, the offer responds, more than everbefore, to companies’ expectations regardingfinancing. While 30% of them believe that thelack of financial resources is the greatestobstacle to their digital transformation,Econocom offers a wide range of adaptedfinancial solutions. These solutions enablethem to fast-track the completion of projects(connected devices, mobility, businesshardware, IT & multimedia, industryhardware, energy, etc.), while meeting thefinancial and operational constraints of theplayers (CFOs, CIOs) and business linesinvolved.

Forrester Study.(1)



Econocom brings down financial barriersfor the development of companies withan offer of agile and flexible financialleases that enables them to keep controlover their expenditure.

Staggered payments

Ever attentive to its customers’ needs,Econocom offers all-inclusive or à la cartefinancial solutions, combining several of itsareas of expertise with a staggered paymentmethod, resulting in a comprehensive rangeof leasing solutions and usage- or unit-basedinvoicing for services, ranging from generalscalable lease contracts to subscriptionservice agreements. This contractualflexibility enables the Group to refresh assetson a regular basis and guarantee budgetstability.

Asset management service

In addition, Econocom delivers effective assetmanagement services, offering operationalsolutions to meet customers’ needs and helpthem manage, monitor and controlresources. Customers benefit from theGroup’s expertise throughout the productlifecycle, including the handling of claimsand management of the end of the productuse cycle, in compliance with the GeneralData Protection Regulation (GDPR).

Financing of green projects

Econocom also offers financing solutions forenergy efficiency projects (see part 3 CSRreport, Chapter 2.1.2 Development ofthe Green & Energy BU).

EDFL: the solution for financing the mostcomplex transformation projects

security and non-standard contractfinancing. Through EDFL, Econocom hasbeen able to boost its independence andrefinancing capacity.

In order to fast-track the roll-out of its mostadvanced digital solutions, Econocom set upa specialised unit in 2014 that gives it thecapacity for financial innovation. EconocomDigital Finance Limited (EDFL) is adedicated, centralised unit specialising inrisk management and financing solutions. Itoffers specific expertise in transaction

Competition

Econocom has a unique position in its market,with no directly comparable competitors. Itscompetitors are, for the most part, eithergeneral or independent leasing companies, orspecialist subsidiaries of hardwaremanufacturers or bank subsidiary leasingcompanies. These companies do not shareEconocom group’s same characteristics ofindependence or technological specialisation,while independent competitors do not havedistribution and service activities. Finally,Econocom is large enough to guaranteesustainability and a balanced force to itscustomers, compared with major hardwaremanufacturers and players in the digitalsector.

Products & Solutions3.2.2020: AN ACCELERATOR 3.2.1.

FOR THE TRANSFORMATION WORKING ENVIRONMENTS

An IT market buoyed by the crisis

The IT market was buoyant in 2020. Morethan ever, this particular context showcasedthe critical need for IT investment to equipremote users.

The reorganisation of workingenvironments is a game changer

In 2020, companies dramatically changedtheir working methods as a result of thecrisis. With the revolution in remote work,they are rethinking the working environmentas a whole through the wide-spread roll outof collaborative solutions.

47% of companies now have more than•50% of their employees working fromhome (compared to 21% before the firstlockdown);



30% of companies have implemented•a real work environment transformationstrategy;

43% of companies believe that the•transformation of working environmentsis as a top priority for 2020/2021.

While remote working is not a new feature,the wide-spreading and suddenness causedby the Coronavirus epidemic have calledinto question its effectiveness on a largescale and over a long period.

How can we adjust work and collaborationmethods while optimising access toresources and the use of collaborative tools?How can we improve the user experience, byproviding user-friendly tools in anenvironment that allows them to be asproductive at work as at home; but also tostrengthen the security of user workstationsby controlling their IT environment andassets? These are all challenging issues forcompanies during this unprecedented crisis.

Behind the boom in laptops orcollaborative solutions (e.g. MicrosoftTeams), it is necessary to deploy andmaintain a whole suite of know-how acrossthe digital ecosystem, to create a newworking environment.

Slowed uptrends due to productshortages

The impacts on product availability weretangible in January 2020 due to productionstoppages in Asia as a result of the virus. Wefaced twelve months of shortages in orderto serve customers in this context. TheEconocom teams were extremely active,particularly in the health and educationsector.

First trends for 2021

This revolution will continue in 2021 in acontext where product availability isexpected to be challenging in the first half.Remote work is morphing into hybrid work.It is likely that remote work will become astandard for tasks requiring concentrationand production of expertise, while on-siteworking will become more collective andfriendly with a view to developingcollaboration and creativity. The equipmentwill then have to be adapted again, withoffice equipment that is fully duplicatedand immediately operational, and solutionsfor dynamic interactive displays andstandardised communication.

However, for the purposes of accessibilityand calculation solutions, we believe thatwe are looking for on-site solutions, withgood prospects for development with theWorkstations market.

ECONOCOM, A PRODUCT 3.2.2.SERVICE COMPANY

The quality of the equipment made availableto each user does not determine its overallefficiency. However, from the comfort of aworkstation, the performance of the toolsand the quality of the connections critical tomaintain the link, it does make a significantcontribution. The keys to success with ourcustomers

The quality of the equipment, relies onboth:

a dual requirement in terms of quality: for•Econocom, innovation and adaptation ofproducts to needs as well as know-how fortheir deployment, commissioning andmaintenance at full capacity. This dualrequirement gives full meaning toEconocom Products & Solutions and itscommitment: providing operationalexcellence in the supply of Products &Solutions, while meeting user requirements(comfortable workstations, highperformancetools, quality connections, operationalmaintenance, etc.);



end-to-end coordination: Econocom•Products & Solutions coordinates andtakes an end-to-end responsibility for aproject, from the supply of IT & telecomsequipment of course, to installation andmaintenance. Econocom can also leveragesynergies with the Group’s other activities,in particular to offer tailor-made financingfor projects or solutions for the recoveryand processing of old equipment;

the ecosystem of manufacturing•partners: with a catalogue of over150,000 products, Econocom relies on itsecosystem of manufacturing partners(including Lenovo, Dell Technologies,HPinc, Apple, Samsung, Microsoft, for themajor players among more than 2,000 inoperation) for the supply and brings a suiteof additional services, based on product lifecycle;

co-development with customers: the•Products & Solutions activity has co-built anumber of services to increase theefficiency of remote working:

the one-stop shop, where the▶Company benefits from a single pointof contact and invoicing for theprovision of a laptop, possiblyadditional accessories, a printer, officesoftware and consumables,

the online catalog, to enable▶companies to create their owncustomised configuration by gettingaccess to major brands,

delivery and commissioning,▶including at home of the end user,

the immediate and controlled▶availability of professional software,which is automatically installed oncethe person has been authenticatedvia the zero touch deployment,

the after-sales service, based on▶online support and large inventories,

collection, recovery and recycling of▶old equipment in an environmentally-friendly approach which promotes thecircular economy,

financing plans, with a wide range of▶solutions, including the collection ofthe IT asset base or utilisation-basedinvoicing for example.

FRANCE’S SECOND LARGEST 3.2.3.PLAYER IN DISTRIBUTION

In a dynamic, highly competitive market withmore than 14,000 computer resellers inFrance, Econocom remains second (behindSCC) in this distribution market with 6%growth in France in 2020.

In the European market, it competes withComputacenter, SCC, Bechtle, Axians,Insight, Softwareone or Realdolmen.

In this complex context, EconocomProducts & Solutions acts as a “one stopshop”, assisting its customers fromend-to-end and working to develop digitaluses to emphasise the importance of themand make them more attractive whilekeeping up with increasing needs and withthe increasingly complete life cycle ofcomputer and telecom equipment.



Services3.3.A GLOBAL MARKET DECLINE 3.3.1.

OF 4.6% DUE TO COVID

Gartner, the research and consulting firm,forecasts a decline in the global IT servicesmarket of around 4.6%, thereby reflectingthe resilience of this industry. However,these decreases vary depending on thetypes of services: consulting, integration,managed services and business processoutsourcing. For example, consulting andintegration services are significantly moreimpacted than continuity or “run” services.

For France, Syntec Numérique – a professionalorganisation for digital players – and IDC –premier global provider of market intelligence,advisory services and events – confirmed thisdecline in revenue of 4.6% in 2020. Similarly,the situation is different from one business lineto another: -12.3% for technology consulting,-4.2% for consulting and services (DSN) and+0.3% for software publishing.

According to Syntec Numérique/IDC,transformation projects continued to drive themarket, around SMACS (Social-Mobility-Analytics-Cloud-Security) with estimated netgrowth of €900 million in 2020, i.e. +6.4%compared to 2019.

With no surprise, the cloud accounts for thelargest share of the IT services market with€6.7 billion, up 12.2% compared to 2019.

For the job market, the situation is mixed:two out of three companies say they havestabilised or increased their workforce in2020. Currently, the digital sector as a wholerepresents more than 530,000 jobs, ofwhich 80% are managers and 93%permanent contracts.

THE THREE PILLARS 3.3.2.OF THE GROUP SERVICE OFFERING

The Services activity of the Econocomgroup is developing personalised servicesto complement its customers’ digitalprojects and quickly meet their businessneeds.

Our 7,200 employees in Services, present inten countries, operate in three main areas:the user environment, cloud services,infrastructure and hybridisation, and themodernization of applications and data.

User environment

2020 was marked by a deep transformationin the way we work, collaborate, manage, selland buy. This is the first time that companieshave been forced to make such a dramaticchange in such a short time frame.

At the same time, services to users are beingtransformed with the hyper-automation ofthe work environment (PCs are now behavinglike smartphones) and the emergence of usersupport boosted by artificial intelligence.

Econocom worked actively to ensurecompanies an efficient level of services tousers and support their adaptation todemanding work environments, such aswide-spread remote work.

To do this, Econocom designs, integratesand manages digital work environments,typically known as Digital Workplace andcovering the following areas:

IT cloudified infrastructure;•

cloud-based collaboration •and productivity solutions;

managed user devices;•

digitalised service desk;•

reinvented convenience services.•



Moreover, Econocom is ranked by the firmTeknowlogy/PAC as the leading player inthe users’ outsourcing market in Francefor the fourth straight year.

In addition – with its Infeeny brand,a Microsoft pure player (see Chapter 3.4.2.2) –Econocom provides end-to-end services,consulting, integration and managedservices, to provide a high level of expertisebased on the software vendor’s innovativesolutions; Work environment move to cloud,application modernisation.

Cloud, infrastructure and hybridisation

Work environments associated with newuses are increasingly in line with the ITinfrastructure components, whether in theCompany or in the Cloud.

In addition, the needs of organisations areconstantly evolving due to their business ororganisational environment as well astechnological opportunities. This requiresa high degree of responsiveness in theanalysis and the governance of theseprojects and the ability to effectivelymanage them.

In addition, there is a paradigm shift in theseservice models. For example, modernisationof an application does not only involve itsdevelopment but also the simultaneousconsideration of data processing, security,network and dependency on otherinformation systems.

The key drivers of success for thetransformation therefore lie in the ability ofthe IT Department to implement globaland effective governance for the project,and also support change and adoption.

Econocom transforms, implements andoptimises the IT services of its customers bycomplying with the new market trends,particularly hyper-automation andthe hybrid cloud:

the Move to Cloud;•

Cloud Managed Services;•

governance.•

Thanks to strong partnerships withMicrosoft and AWS and also with Google,our cloud architects assist our clients in thedefinition and implementation of cloud,hybrid or multi-cloud environments that aresecure, reliable and efficient.

The proximity of Econocom experts withsoftware vendors allows us to access new orinnovative functionalities from beta versions,test them and acquire all the skills necessaryto offer them to our customers at the righttime and with confidence.

Applications and Data

At the heart of the information system,the application represents much morethan a lever for development, it is a driverfor innovation, differentiation and evendisruption for the Company in its market.

Today when we talk about applications,the issue is no longer availability but theperformance and quality of the userexperience.

In fact, it is no longer sufficient to approachthese projects from the sole perspective ofdevelopment. It is also necessary considerthe choice of the underlying platform, thevaluation of the data, security and integrity.Not to mention that the applications areinterdependent with the IS, whether that ofthe Company or third parties.

To support CIOs in their applicationportfolio development projects, Econocomhas designed an offer based on threecomplementary pillars:

modern applications;•

modern platforms;•

data valuation.•



To guarantee the efficiency of this model,Econocom adopts a structuringmethodological approach, called DevOps(Development/Operation). It consists indesigning and managing the developmentof the application, its integration,deployment, operation and maintenance ofthe infrastructures as an overall project.The principles of DevOps advocate shorterdevelopment cycles and an increase in thefrequency of deployments and continuousautomated deliveries.

In addition, Econocom assists its customersin the valuation of data, enabling them togenerate economic and competitiveadvantages. This involves collecting, storing,transforming and then reproducing in theform of ad hoc representations that providerecipients an optimal understanding of theinformation required for decision-making intheir respective businesses.

Through its Services business, Econocomprovides its customers with solutions tailoredto their transformation projects, coveringinfrastructure, data and applications, acrossthe entire value chain (consulting,implementation and management, andcontinuing improvement).

ECONOCOM: FRANCE’S 3.3.3.7TH LARGEST DIGITAL SERVICES COMPANY

Ranked as France’s 7th largest digitalservices(1) company in 2020, Econocomcompetes with companies like Capgemini,Orange, IBM, Atos and Accenture on theservices market. But unlike thesecompetitors it is the only one to combinedistribution, management and associatedfinancing services as well as the digitalsolutions of Econocom’s other brands.

ECONOCOM: 3.3.4.ISO 27001 CERTIFIED

IT security is a major challenge forEconocom and the Group continues tomake progress in this area. The Group hasbeen ISO 27001(2) certified since 2016. Thiscertification is the world’s most widelyrecognised information systems securitystandard. This certification mainly coversservice centres services provided at ourpremises and telecoms, transport, bankingand insurance services also provided at ourpremises. The actions and measures takento combat cybercrime in 2017 wereextended across all the Group’s businesslines, with the blanket rollout of a series ofsecurity measures to protect workstations,the strengthening of Information SystemsDepartment security expertise within the ITDepartment, and the creation of mandatoryawareness training for Services employeesvia MOOCs (Massive Open Online Courses).

Digital solutions 3.4.offered by Econocom SatellitesLaunched in 2014, the Satellite model enablesEconocom to rapidly take up a position onbuoyant markets, (cybersecurity, cloud,mobility, etc.). Econocom Satellites areinnovative SMEs, whose areas of expertisecorrespond to the strategic challenges ofdigital transformation today. In 2020, theyaccounted for 24% of the Group’s revenue.

2019 revenue - KPMG Syntec Numérique study (1)https://assets.kpmg/content/dam/kpmg/fr/pdf/2020/12/fr-Classement-des-ESN-et-ICT.pdfSO standard 27001 concerns security and information management systems and helps organisations.(2)"More information here: https://www.iso.org/fr/isoiec-27001-information-security.html".



CYBERSECURITY3.4.1.

A critical issue, 3.4.1.1.a dynamic market

Cybersecurity is a critical component ofdigital transformation and is one of thefastest growing segments of the IT market.With the digital revolution gaining traction,the uses made possible by newtechnologies are placing greater emphasison the security of IT systems.

Driven by the evolution of the threat (with thesurge in ransomware) and by the desire toprotect employees, which are now primarilyat home, investments in security remainedvery dynamic (growth of 4.3% in 2020).

The amount of digital data is multipliedby eight

According to the IDC study (Data Age 2025),the total global datasphere is expected toincrease eightfold over the coming years toreach 163 trillion gigabytes. All business sectorsand models will be affected, from B2B to B2C.Though this exponential growth in the volumeof digital data may offer new value-creatinganalyses, it also poses problems in terms oftheir protection and ownership.

Mobile internet ahead of the desktop

Today, there are more mobile Internet usersthan desktop Internet users. In 2021, mobilephones should reach 61% of global Internettraffic.

By 2023, a person in France will have anaverage of 3.6 connected devices and willspend more than 18 hours a week on theInternet.

This increase extends the risk areas andattack areas.

80% of European companies have alreadyhad their computers hacked(1)

The proliferation of computer attacks andthe existence of an active, more or lessprofessionalised external threat, boost themarket.

Beyond the exponential growth in thenumber of devices and data, there are otherfactors that explain the strong marketdynamics. The introduction of new andincreasingly restrictive regulations such asthe General Data Protection Regulation(GDPR) and the E-PRIVACY project(2), or theeIDAS European regulation(3), has of coursealso proven to be a driving factor. Artificialintelligence, Big Data, blockchain technologyand even cloud computing are opening upmassive growth prospects for security, whichmust and should be seen as an essentialcomponent of any digital transformationproject.

The Econocom offer: 3.4.1.2.Alter Way, Asystel Italia and Exaprobe

Alter Way (France): in 2020, Alter Wayobtained ISO/IEC 27001:2013 certification inorder to meet the challenging high qualityand safety standards of its customers. It thusjoins the very exclusive club of ISO/CEI27001:2013 certified companies, a guaranteeof security for its customers’ infrastructuresand data.

Asystel Italia (Italy): supervises IT securitythrough activities of: inventory, monitoring,vulnerability assessment and penetrationtest, remediation.

Source: European Community.(1)European project that aims to strengthen the rules protecting Internet users’ privacy, which may come (2)into force in 2019.Regulation on electronic identification and trust services for electronic transactions, in effect since (3)the second quarter of 2018.



It offers a set of support services (securityadvisory, incident management, threatanalysis, etc.) and provides anintelligent-driven monitoring service 24/7 for365 days a year to ensure high and constantlevels of security.

However, monitoring and managingsystems is not enough. One of the majorvulnerabilities in companies remains thehuman factor. This is why Asystel Italia hasdesigned an e-learning solution to promotethe creation of awareness and cultureamong users using customized, user-friendlyand dynamic tools.

Exaprobe is a benchmark for securingcompanies’ infrastructure and digitalterritories

Acquired in 2013, and now housing CapSynergy (2012), Comiris (2014) and Aciernet(2017), Exaprobe is a security systemsintegrator. It operates in the areas of ITsecurity, network infrastructures andplatforms for unified communication andthe digitisation of workspaces. Its currentbusiness model is based on a mix ofintegration products and services in projector outsourcing mode. Today, with its210 employees and a revenue of€350 million (€220 million in France and€130 million internationally), Exaprobe hasestablished itself thanks to its technologicalexpertise and innovative offers. Followingthe acquisition of Aciernet in 2017, it hasspecific expertise in designing andequipping large data centres. The Companybenefits from high-level partnerships withleading manufacturers and softwarevendors (Cisco, Arista, Check Point, Fortinet,Poly, Microsoft, etc.).

Focus on Exaprobe’s new Go4Secu offer

To address the booming cybersecuritymarket, Exaprobe decided to marketa service offer called Go4Secu.

The purpose of this offer is to offercompanies that do not have sufficienthuman and/or financial resources to buildtheir own security oversight centre (or SOC)to benefit from the advantages of thisservice offer.

While 91% of companies were the target ofat least one attack in 2020, only 14% of CISOs(Chief Information Security Officers) believethat their organization allows them to beeffectively protected against cybercrime.(1)

Based on the protection of mail flows, webbrowsing, privileged access and the clientworkstation, this offer is hosted entirely inthe cloud and allows Exaprobe customersto rely on its expertise to secure theirbusiness as much as possible. Ourphilosophy: Protect, Monitor, Govern andRemedy.

Backed by the most recognised players inthe market – Cisco, Retarus, Fireeye,Kaspersky and Wallix, Go4Secu offers acomplete suite of managed services, andtakes over from its customers to enablethem to focus on their business, and ensureits continuity over the long term.

Source : https://www.lepoint.fr/high-tech-Internet/(1)cyberattaques-les-entreprises-francaises-toucheesplus-que-jamais-09-12-2020-2404883_47.phphttps://www.Exaprobe.com/cloud-services/go4secu/



MICROSOFT TECHNOLOGIES3.4.2.

Market: new business 3.4.2.1.models are changing the game

The French market for Microsofttechnologies has been transformed by thearrival of new business models, notablyincluding the subscription model, that areimposing a change of approach forpartners distributing the brand.

Over the past year, the market experienceda high degree of concentration, with theacquisition of pure players by major DSCs. Itshould be noted for example, the acquisitionof vNext by Insight in March, Azeo byAvanade in September, AI3 by Talan inSeptember and Neos-SDI by Open group inNovember.

The Econocom offer: 3.4.2.2.Alter Way, Asystel Italia and Infeeny

Econocom aims to become a marketleader with its Infeeny offer

As a historic partner to Microsoft, Econocomwants to accelerate this strategiccollaboration by becoming a market leader,thanks to its Satellite Infeeny, which has ahigh level of expertise in Microsoft 365, Azureand Power Platform environments.Associated with the various business lines ofthe Galaxy, particularly distribution, financingand Run services, Econocom providesend-to-end offers, a highly-demanded modelby the market, such as DaaS (Desktop as aServices) or Cloud Managed Services.

The challenge is to offer all Frenchcompanies a team of experts dedicated toMicrosoft technologies to support them intheir digital transformation.This ambitionrelates to the Econocom group’s ability totake into account all Microsoft technologiesand combine them to turn them intogrowth drivers for organisations.

End-to-end solutions in line withthe needs of companies

With its Infeeny Satellite, Econocom isdeveloping a portfolio of end-to-end solutionsin line with the needs in terms of innovationand agility: modernisation of applications anddata, hosted in Cloud environments (Azure,M365 and Power Platform) to serve newcollaborative practices and employeeproductivity.

This end-to-end approach involves supportacross the entire project value chain:consulting, to understand the needs anddefine the target environment, piloting to testbefore implementation, integration and thenmanaged services as part of continuingimprovement cycles. Accordingly, over thepast three years, Econocom has beendrawing on its proven cross-functional offer,“Infeeny by Econocom”. Capitalising on theexpertise of its Infeeny subsidiary, it alsoincorporates the core expertise of Econocomand other Group entities such as Alter Wayand Exaprobe.

Infeeny by Econocom represents:

700 Microsoft consultants and experts;•

13 GOLD certifications;•

a network of regional agencies and•service centres;

a unique and multidisciplinary interlocutor•for integrated solutions with customisedfinancing;

three domains of expertise in coherence•with Microsoft: Modern Workplace, App &Infra, and Data & IA;

active partner of the “Microsoft Cloud•School” programme to support training orretraining on new Microsoft Cloudtechnologies.



Asystel Italia (Italy): using a WaaSmethodology to manage patchdistribution, software center distributionand installation, also through a softwarecenter catalogue, Asystel Italia designsinnovative solutions to address the needsof new workplace management.

Asystel Italia is also an authorized MicrosoftHoloLens reseller, offering a complete andvalue-added proposition in the field ofdigital and multimedia area.

SAAS & CLOUD, 3.4.3.WEB APPS AND OPEN SOURCE

The cloud will drive 3.4.3.1.the market upwards

According to Syntec's(1) report on the secondhalf of 2020 , in 2020, SMACS(2) grew by 6.4%,representing a market of €14.9 billion. Whilethe growth of this very dynamic segment ofsoftware and services has slowed downcompared to 2019, it is still very significant ina market that is overall in recession.

Compared to the first half, IDC hassignificantly improved its forecasts for theevolution of SMACS in 2020, with growthdoubling between the forecasts of the firsthalf and those of the second. This leap is dueto the higher-than-expected level ofinvestments that CIOs allocated projectsdue to circumstances (lockdown, remotework, new sales methods, etc.).

The growth of SMACS is primarily drivenby the Cloud, which is both the largestsegment (€6.7 billion alone) and the fastestgrowing segment (+12.2% in 2020).

SaaS & Cloud: services and the cloudhybrid are on the rise

According to Gartner, the adoption ofenterprise SaaS is still relatively new andmany SaaS application providers havefocused more on the functionality of theirapplications and less on the needs of IToperations.

Most companies already have some cloudinfrastructures and SaaS solutions in placeand are planning to move in that direction.16% of budgets for cloud are allocated towhat Gartner calls “Services related tocloud”. These are essentially services thatorganisations need to move toward a cloudsolution in order to transform theiroperations by adopting cloud services.

New growth drivers in the cloud in 2021

2021 will see the strong development ofnew uses, mainly integrating the cloud.

According to Forrester(3), the mainorientations we can highlight are as follows:

the rise of DaaS: Gartner anticipates that•48% of employees will continue to workfrom home once the pandemic is over. Tosecure this remote work and allow everyoneto work from anywhere, it is likely that "VDIin the Cloud", in other words virtualizeddesktops in the cloud, or DaaS (Desktop as aService) will be broadly used. The arrival of a"Cloud PC" offer at Microsoft, strategic forthe success of its future Windows 10, shouldaccelerate the movement by democratizingit. Competitors will have to sharpen theirvalue proposition;

SMACS : acronyme pour définir les marchés suivants : Social, Mobile, Analytique, Cloud, Sécurité(2)https://www.itforbusiness.fr/les-10-tendances-cloud-en-2021-41991)(3)

https://syntec-numerique.fr/smacs-chiffres-cles/conjoncture/note-conjoncture-2e-semestre-2020(1)SMACS : acronyme pour définir les marchés suivants : Social, Mobile, Analytique, Cloud, Sécurité(2)https://www.itforbusiness.fr/les-10-tendances-cloud-en-2021-41991)(3)



Edge reaches an inflection point In any•case, this is the Forrester’s(1) conviction.Edge redefines where data is processedand how the cloud is used. The practicalapplications of this concept will finallyemerge in 2021 where this architecture is areal asset. The possibility of implementingprivate 5G networks will also offer new usecases for Edge Computing;

strong growth in hybrid cloud The giants•of the public cloud are also keen onpenetrating “on-prem” infrastructures withtheir own solutions to better merge theinternal infrastructure with their cloudservices. At Google, the strategy is basedentirely on Kubernetes and the Mesh Istioservice with its 100% software solution"Google Anthos" which now operates inbare-metal and is also deployed in otherpublic clouds. At AWS, the strategy relies inpart on its AWS Outposts appliances as wellas the recent announcements of ECSAnywhere and EKS Anywhere to deployAmazon's Elastic Container Services on itsinternal infrastructure. Lastly, in December,Microsoft launched the “General Availability”version of Azure Stack HCI, itshyperconverged solution that is directcompetition with VMware and Nutanix,which is highly integrated with Azure andembeds AKS (Azure Kubernetes Services).The software vendor also offers Azure Arc todeploy Azure data services in the form ofcontainers in any cloud or on its internalinfrastructure;

reversibility as core values. Enough to makethe cloud more agnostic. 2021 will beextremely challenging for this initiative. Toensure its success, it must materialisequickly, probably in mid-2021. Otherwise,it is likely that the European metacloud willbe a dramatic flop;

emergence of a sovereign cloud GAIA-X:•on the one hand, companies are working toprevent suppliers from locking them intotheir cloud technologies. On the otherhand, European legislation has beenstrengthened to ensure the sovereignty ofEuropean data, forcing companies to thinkabout “European storage”. These twotrends are the main drivers of the Europeanmetacloud initiative GAIA-X. A metaclouddesigned with interoperability and

lastly, the steady growth of open source•will inevitably continue due to itscross-functional nature and the regularadoption by major IT players. According toPAC-CXP, the open source market will seeannual growth of 8.1% by 2021 for theindustry as a whole (+12.6% for publishingand +7.8% for services), representing abouttwice the growth forecast for the entiredigital sector (+4.2%). The United Kingdomand Germany are in second and third placebehind France, European leader in opensource and open digital. France shouldmaintain this position until 2021. The freesoftware and open source sector continuesto grow, building on its traditionalimplementations in infrastructure,middleware and the web, and is finding newgrowth vectors through its strongimplication in the new technology marketsegments: Big Data and AI, new generationsof DevOps-oriented development tools, andcloud technologies.

The Econocom offer: 3.4.3.2.Alter Way, ASP Serveur, Bizmatica, Econocom Brazil, Nexica, Synertrade

Applications

At the heart of the user experience,applications are the most visible part of thedaily lives of the Company’s customers andemployees. Today, every companymust have powerful business-orientedapplications, developed within shorter andshorter deadlines and adapted to rapidchanges in the market, uses andtechnologies.

https://go.forrester.com/blogs/predictions-2021-edge-computing-hits-an-inflection-point/(1)



To meet the needs of companies regardlessof the sector of activity or business line,Econocom proposes a dual approach:

one stop shop around open source•technologies thanks to the expertise of theSatellite Alter Way;

off-the-shelf software platforms, in SaaS•or on-premise mode, to rapidly deploy newdigital processes (dedicated purchasingsolutions with Synertrade).

In total, three Satellites operate inthis application market:

Alter Way (France): this innovative and•recognised SME, a key player specialisingin web platforms and DevOps based onopen source solutions, Alter Way has aservice offer ranging from user experienceto managed services in the cloudincluding consulting, design, developmentand third party applications maintenance;

Bizmatica (Italy): supports companies in•the complex shift-2-cloud journey. Itsupports the customer engagementprocess, starting from omnichannel todata-as-a-service solutions, leveraging bothan agile BizOps and DevOps approach andon an extensive use of AI technology.Bizmatica leverages on its onStage APIManagement to federate both cloudtechnologies and on-premise technologies.onStage provides the possibility to addressa variety of use cases: integration of cloudservices, integration of mobile apps, B2Bintegration, Big Data integration, IoTintegration and implementation of APIs;

Procure-to-Pay and Supplier RelationshipManagement (SRM).

Synertrade (France) offers a dedicated SaaS•purchasing solution covering the entireexpenditure chain: Source-to-Contract,

The Accelerate platform covers the needs ofdirect or indirect Purchasing Departments.Synertrade has more than 700 clientsworldwide, from all business sectors(Industry, Health & Pharma, Energy, Retail,Agri-food, Insurance, Media, etc.). This SaaSsolution meets the strategic challenges oflarge Fortune 500 groups as well as largeinternational SMEs/SMIs.

Hosting and cloud offers

For Econocom, infrastructure performanceis a key success factor to ensure a successfuluser experience. The Group supports CIOs inmaintaining very high levels of performance,integrating more efficient and flexible cloudoffers and enhancing security. As the11th largest player(1) in the cloud anddatacentre outsourcing market in France,Econocom is positioned, with its “Satellites”as a genuine partner of businesses andgovernments.

Four Satellites operate in the cloudmarket:

Alter Way (France): is a technological and•innovative company that develops andmanages cloud-based digital infrastructureand application services and DevOpsmethods. Committed since 2006 toresponsible digital technology throughopen source, accessible and eco-responsiblesolutions, the Company genuinely projectsitself within the framework of its Chrysalis2020-2023 strategic plan, with economic,societal and ecological challenges related tothe accelerated digitization of companiesand large organisations;

PAC/Teknowlogy study 2020.(1)



ASP Serveur (France): is a production•infrastructure host and operator of public,private and hybrid cloud solutions. As aspecialist in mission-critical hosting andpublic and private cloud solutions, ASPServeur owns its infrastructure and has acutting edge, very high securitydatacentre;

Econocom Brazil: operates strategic•consulting, managed services andoutsourcing projects;

Nexica (Spain): is an expert in the hosting•and management of critical applicationsfor 15 years. It is a key player in the Spanishmarket in the cloud computing. Nexicahas datacentres in Barcelona, Madrid andMarseille.

INFRASTRUCTURE 3.4.4.& NETWORKS

A market undergoing 3.4.4.1.major structural changes

Businesses need more and better ITinfrastructure

Digitisation, new uses, development of cloudmodels: to meet these challenges, thenetwork must play an increasingly importantrole. In addition to the commonly acceptedintrinsic qualities (performance, availability,durability), it is becoming increasinglycommon for networks to be required tointegrate advanced functions such as:filtering, optimisation and management offlows (voice, video), virtualisation and qualityof service measurements. The developmentof forms of collaborative work (for example,videoconferencing) partly explains this trend.

A strong tendency towards migration topublic cloud systems

Over the last several years companies havebeen shifting their IT workload to the publiccloud.

Cybersecurity, a top priority forexecutives and Boards of Directors

In all business sectors, attacks arebecoming more numerous and morecomplex: with 80% of technology managerssay that their organisation is struggling toput in place a strong defence.

New mutations for tomorrow

These include the growth of Asia forhardware solutions, the use of DevOps forsoftware and hardware, container-firstarchitectures and the increasing use ofartificial intelligence and technology stacksoptimised for machine learning.

The Econocom offer: Alter 3.4.4.2.Way, Asystel Italia, ASP Serveur, Bizmatica, Exaprobe and Nexica

To help its customers transform theirinfrastructures, Econocom offers consulting,transformation engineering, optimisationand technological innovation services. Inaddition to its transformation andintegration services, Econocom also offersmaintenance services in operationalconditions throughout the life cycle of theseinfrastructures, thereby guaranteeing itscustomers end-to-end support.

Designing scalable infrastructurescapable of integrating the innovations oftomorrow

Developing flexibly to improve support:Econocom’s approach. The Groupadvocates traditional IT solutions togetherwith the most innovative digital solutions(hybrid cloud solutions, etc.). This “mix”facilitates the digital transition and itsadoption by users. This flexibility alsomakes possible the design of scalableinfrastructures capable of integratingtechnological innovations as they occurover time.



Six Satellites operate in this market:

Alter Way (France): see Chapter 3.4.3.2;•

Asystel Italia (Italy) Asystel Italia designs,•builds, integrates and maintains networkinfrastructures and digital innovationsolutions for medium and large companies.The Data Center offering is focused on theOn Demand approach, which allows theClient to entrust us with the design,activation, management and provision of ITservices with a scalable model (both forresources and services) that grows over thetime, according to its real needs. TheAsystel Italia proprietary architecture isbuilt on Tier Level 3+ classified standardsand has first-level certifications on datasecurity and quality and energy efficiency(ISO27001: 2013, ISO 9001: 2015);

Bizmatica (Italy) is able to support•companies in an end to end approach in thedigital transformation process. It providesfrom the initial consultancy (scope,assessment, change management, businesscases, scenarios), to the development andmanagement of complex IoT & ServiceAssurance platforms leveraging on AI andMachine Learning solutions. In terms ofinfrastructure’s governance and dataaccess, Bizmatica solutions are focused onCloud Management, Back Up e Recovery,Data Virtualization and Consolidation;

ASP Server (France) and Nexica (Spain):•see Chapter 3.4.3.2.;

Exaprobe (France): see Chapter 3.4.1.2.•

MOBILITY3.4.5.

A dynamic market driven 3.4.5.1.by the growth of software solutions and service

The enterprise mobility market is dividedinto four main segments:

Connectivity: 3/4/5G mobile networks•and WiFi;

Hardware: consumer and professional•devices and accessories;

Software: off-the-shelf mobile applications,•development platforms, mobilitymanagement solutions such as EMM/UEM(Enterprise Mobility Management/UnifiedEnd-Point Management, etc.) and mobilesecurity (Mobile Threat Defence);

Services: deployment and management•of a mobile business fleet, user services,mobile application development, EMMservices, etc.

The mobility market is a dynamic marketdriven particularly by the adoption by usersin the private sphere.

Thus, according to Gartner(1), today theoverall market share of mobile platforms isnearly three times larger than the share ofthe historic platform Windows (almost5 billion mobile devices – Google Androidand Apple iOS – compared with 7 billion forWindows).

On a business scope, growth is largelydriven by mobile phones with more than200 million mobile handsets purchased bybusinesses in 2024, compared to 160 millionin 2020, while traditional telephones arestagnant with around 144 million units soldper year (between 2020 and 2024). As aresult, public and private organisations arearranging to take change of these new usesin their business line and support structures.

Gartner(2) predicts annual growth of 7.5% inmanaged services related to mobility to$8.9 billion in 2024.

Gartner, Forecast : IT Services, Worldwide, 2018-2024, 3Q20 Update(2)Gartner, Forecast : PCs, Ultramobiles and Mobile Phones, Worldwide, 2018-2024, 3Q20 Update.(1)Gartner, Forecast : IT Services, Worldwide, 2018-2024, 3Q20 Update(2)



3.4.5.2 The Econocom offer: Alter Way, Asystel Italia, BDF, Bizmatica, DMS, Econocom Brazil, Energy Net, Gigigo, JTRS

Econocom has several brands that enable itto extend its expertise in corporate mobilityon a European scale, but also in Brazil:

Alter Way (France) responds to mobility•issues on Android technologies: Kotlin,Java et iOS: Swift 4/5 -Objective-C;

Asystel Italia (Italy) has a specialized•Business Unit focused on mobility projectsand competences. It provides its clients withall the necessary services for a completedevices management, guaranteeing qualityof service, security and freeing the IT ofclients from the costs of managing thedevices themthelves. Asystel Italia hasin-depth knowledge of Microsoft Windowsand Apple MacOS environments on the onehand, and Android and iOS operatingsystems and related device managementplatforms, on the other;

BDF (Italy): BDF's mission is to maximize•technological use by assuming thecomplete management of logistic aspect,assistance, maintenance and disposal ofdigital products for medium and largecompanies with a special focus for financialmarket. From staging to roll out and helpdesk, BDF's services are highly customizableand modular. They are focused onmanagement and security of about 180.000workplaces and 20.000 printing solutionsbased on a pay per use business model. Inthe field, BDF has a warehouse for productsand spare parts of over 6,000 sqm. BDF isbecoming the reference point of EconocomItalia Group for the management of end oflife of the digital product according tomodern principles of sustainability;

Bizmatica (Italy) provides solutions and•guidance that enable organisations toadopt smart (or agile) ways of workingwith a focus on maximizing employeeproductivity while meeting the growingneed for corporate mobility managementand business continuity of their activities;

DMS (France) is a mobile technology•expert specialising in the deployment andmanagement of very large terminal fleets;

Econocom Brazil accelerates the digital•transformation processes of companiesthrough strategic consulting, managedservices and mobile outsourcing;

Energy Net (Germany): Econocom•strengthened its presence in Germanywiththe acquisition of Energy Net in 2017. ThisSatellite, specialised in the B2B distributionand integration of Apple products, allowsEconocom to strengthenits historicpartnership with Apple(3).Energy Net enablesEconocom to develop innovative solutionscombining hardware, applications andservices, charged as a fee;

in Spain, Mexico and Brazil, Gigigo•supports companies in their mobilemarketing strategy by offering customisedmobile application development forconsumers and a platform for generatingand managing promotional marketingcampaigns;

JTRS (United Kingdom) specialises in•technology solutions for education andB2B (Apple Authorised Enterprise Reseller,Apple Authorised Education Specialists,Partenaire LEGO®, Google & Microsoft).

DIGITAL SIGNAGE 3.4.6.& MULTIMEDIA

A growing market driven 3.4.6.1.by the expansion of retail

According to Technavio’s global digitalsignage market research report, the marketwill record a CAGR (compound annualgrowth rate) of nearly 7% by 2022. Thisdynamism is largely due to the stronggrowth in the retail segment, itself boostedby the increase in the demand for consumergoods and the rise in household income.Other factors such as urban growth and theincrease in the demand for quality productsalso help explain the excellent performanceof the market.



The Econocom offer: 3.4.6.2.Altabox, Asystel Italia, BDF, BIS|Econocom

Digital signage solutions can be anexcellent lever for new business, forexample to enrich omnichannel retailexperiences, or to better capture userattention and generate additionaladvertising revenue.

In order to help its customers put in placethe business models of tomorrow, theEconocom group works in collaboration withthem to create the right digital solutions,whatever their business universe. End-to-endsupport, from the consulting phase up to thecreation of an industrial model for theirinnovative projects. The Group aims to offerits customers integrated digital solutions,together with financing offers.is

The following are positioned in thismarket:

Altabox (Spain): leader in Spain in the•development of omnichannel marketingstrategies for retail outlets, Altabox joinedthe Econocom Galaxy in 2018. The Companyis specialised in the design and deploymentof dynamic digital signage, sensory andauditory marketing, and traffic and dataanalytics solutions. With this acquisition, theGroup has obtained a complete range ofstate-of-the-art digital point-of-salesolutions, combined with its innovativefinancing and distribution model(subscriptions, payment for use, etc.);

Asystel Italia (Italy): is a leading player in•the new multimedia communicationsolutions: smart working platforms, smartcollaboration solutions, implementationof environments for new-generationmultimedia communication. Asystel Italiadesigns complete solutions that integratemonitors, projectors, touch frames, IWBs,video walls, NUCs, digital signage platforms,microphones, amplifiers, interactivefurnishing elements, booking systems andbiometric recognition systems, interfacesand home automation connectors in orderto create functional environments,extremely innovative and able to ensure asimple use with added value;

BDF (Italy): BDF’ approach (see 3.4.5.2) to•a complete management of hardware andrelative services is also valid for multimediadevice and digital signage solutions suchas integration and set up of meeting roomsystems, video walls and Digital Signage;

BIS|Econocom (Netherlands): specialist in•audiovisual & IT solutions, video collaborationand unified communications. BIS|Econocomspeeds up digital transformations, bringspeople together and makes organisationsmore decisive and agile. Digital technologiesare adopted at lightning speed andAudiovisual & IT technology plays a crucialrole in this process. BIS|Econocom is amarket leader and initiates user friendlyinnovations to enhance collaboration, unifiedcommunications and other Audiovisual & ITsolutions, inside and outside the officeenvironment.



CONSULTING3.4.7.

The Econocom offer: 3.4.7.1.Bizmatica and Helis

Two Satellites are specifically positionedin the consulting market:

Bizmatica (Italy) proposes to collaborate•with customers, defining the best strategyin the digital transformation followingspecific innovation needs related to CloudTransition, Business IT alignment, BizOpsapproach, Change Management, ProcessOptimization and DevOps;

Helis (France) is a specialised consulting•firm specialising in mission criticalinfrastructure consulting and engineering.With a team of over 60 consultants onassignment, Helis experts assist companiesin their respective fields, in areas asspecialised as IP and network infrastructure,GDPR compliance and Big Data and CSR,providing a bespoke solution to theirtransformation projects.

Combination 3.5.of Planet and Satellite know-howThe combination of the know-how of theentities of the Planet (the Group’s threehistorical activities) and the Satellites makesit possible to create these “end-to-end”transversal offers (consulting, design,sourcing, construction, financial approach,security, operation).

These “one stop shop” offers have noequivalent on the market. They allowcompanies to simplify and manage theentire life cycle of their resources. All of thisthrough the placing of the user at the heartof the digital transformation.

HORIZONTAL 3.5.1.TRANSVERSAL OFFERS

Econocom Mobility Offer3.5.1.1.

or small, regardless of their sector of activity,all companies must invest in mobility, butnot all have reached the same level ofmaturity.

Corporate mobility is an essential part of thedigital transformation of companies. Large

Having all the expertise needed to respondto this market, Econocom has chosen tostructure them within a transversal offer inFrance.

The offer covers the needs of companies inthe field of digital mobility, and meets theexpectations of CIOs as well as BusinessDepartments and employees. Through theGroup’s Technology Management &Financing activities, Econocom Mobilityadapts to consumer uses with its “Mobilityas a service” offer.

To simplify and optimise the managementof the mobility program, Econocom hasdeveloped a platform bringing together,users and data (interconnection with thecustomer ecosystem) and optimisingprocesses through automation (RoboticProcess Automation).

Terminals & Connectivity:•

the distribution of consumer-grade▶or rugged terminals, market ortailor-made accessories;

services to ensure complete lifecycle▶management (fleet deployment,maintenance and recycling, fleetand subscription management,optimization of telecommunicationsexpenditures);

a data connectivity offer to guarantee•the best market all over Europe.

Security:•

strategy consulting to be adopted;•

partnerships with market leaders•(Microsoft, VMware, MobileIron acquiredby Ivanti);

an innovative solution to simplify the•life of users during an EMM migration(Wave).



Employee experience: •

services associating human assistance▶(specialised helpdesks, local support,on-site training) and selfcare (mobilesupport application, connected drop-offpoints) to ensure autonomy andsatisfaction.

One of the most 3.5.1.2.comprehensive cloud solutions offering on the market

Econocom supports its customers through asmooth and controlled move to cloud,drawing on all its assets to serve both theirstrategies and their businesses.

Our belief: all companies can benefit fromthe cloud, but they each do it their own way.

To maximise benefits, the infrastructuremodel, operating model, security modeland user practices must be specific to eachorganisation, and take into account itsobjectives, its current situation, its specificsand its constraints, its maturity and skills.

In order to enable companies to build andimplement the cloud environment that bestsuits them and meets their needs, theGroup is an expert of and partners with themain cloud providers, while our services andsolutions cover the entire transformationchain:

strategy, architecture, governance, operating•model;

modernisation and “move to cloud”•migration of infrastructures and applications;

definition and implementation of security•policies;

secure sovereign cloud service hosting;•

operating hybrid and multi-cloud•environments;

adaptation of the application life cycle and•dissemination of best practices.

VERTICAL 3.5.2.TRANSVERSAL OFFER

With the proliferation of technologicalinnovations, “smart phygital” is becoming thenew norm. While many believed thate-commerce would wipe out physical stores,it is a 360° business that is emergingbetween on and off-line and has been furtherstrengthened by the health crisis.

Econocom Retail’s ambition? To helpretailers meet new challenges in their industryby offering their customers an experiential,connected and omnichannel retail solution toimprove the customer experience. Withsolutions supporting the entire customerjourney, from digital solutions for attractingcustomers to the store, and then ensuringtheir loyalty after they leave, includinginnovative solutions within the store itself,Econocom Retail aims to bring the future ofcustomer experience to end-customers today.

Econocom Retail is:

end-to-end connected solutions to•provide customers with a unique,innovative and consistent customerexperience;

custom-designed software and solutions;•

360 degree collaboration: conception,•support and financing;

a showroom and a labcentre: an invitation•to live the new retail experience withEconocom Retail.


02 group overviewfinancial position and results

Financial position and results4.Highlights 4.1.

of the past three years2020 was notable for:

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 million for continuing activities;

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 isbeing finalised;

2020 posted a significant decline in net•financial debt, with a net cash position of€20 million at the end of the year. Thisachievement was made possible through asignificant improvement in operating cashflow, proceeds from the divestiture ofnon-strategic assets for around€125 million, while maintaining an interimdividend payment and treasury sharebuybacks;

as at 31 December 2020, treasury shares•totalled 4.43% of the share capital.

2019 was notable for:

revenue of €2,927 million stable over its•continued activities at constant standards,identical to 2018. On an organic basis, it wasdown slightly by 0.8%. Restated for the dropin revenue of TMF in Italy, growth amountedto 4.5% (of which 3.7% organic growth);

in the process of refocusing its activities,•the Group placed 13 companies/activities inthe IFRS 5 scope of application(discontinued activities);

profit (loss) from current operating•activities which stands at €126 million forcontinuing activities;

the companies Jade and Rayonnance were•sold (however, the Group has retained 10%of Rayonnance);

the Group launched a plan to reduce direct•and indirect expenses by €96.5 milliongross spread out over three years. savingtotalled €30 million in 2019;

net accounting debt remained stable•compared with 2018. On the one hand, thisreflects sound operating cash flowgeneration, the cash inflows received fromthe partial sale of Rayonnance in December,as well as the decline working capitalrequirements for EDFL and, on the otherhand, the cash outflows in the year relatedto the acquisition of non-controllinginterests in Satellites, to the redemption ofthe issue premium and to treasury sharebuybacks;

as at 31 December 2019, treasury shares•totalled 9.56% of the share capital.

Before amortisation of intangible assets from acquisitions.(1)


02group overviewfinancial position and results

2018 was notable for:

revenue of €2,999 million, reflecting•organic growth of 2.7%. This revenuefigure reflects the first application ofIFRS 15;

profit (loss) from current operating•activities(1) stands at €110.9 million;

in March 2018, the issue of an OCEANE•bond maturing in 2023 for a nominalamount of €200 million. This convertiblebond aims to support the Group’sinvestments in its new strategic plan;

below) while multiplying innovativeinitiatives on the Planet. These transactionswere intended to strengthen the Group’sknow-how in the most buoyant marketsegments and to roll out its original modelin the leading European countries;

the continuation of Econocom’s•investment strategy, initiated in 2014,through the acquisition of majorityshareholdings in new subsidiaries (see

the return in October of Jean-Louis•Bouchard, founder of the Group andChairman of the Board of Directors, to theposition of CEO;

the continuation of the Group’s cash•management efforts, which significantlyreduced the Group’s working capitalrequirements and lowered net accountingdebt.

Consolidated data for the year: 4.2.comparison between 2020, 2019 and 2018

KEY FIGURES4.2.1.

in € millions 2020 2019 restated* 2018 restated**

Revenue from continuing operations 2,559 2,914 2,999

Profit (loss) from current operating activities before amortisation of intangible assets from acquisitions(1)

122.5 127.6 110.9

Profit (loss) from current operating activities 120.4 125.6 106.7

Profit (loss) from operating activities 84.1 101.2 86.8

Shareholders’ equity (including non-controlling interests)

472.9 483.9 491.3

Net financial debt +20.2 (252.2) (251.7)

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 theprovisions of IFRS 16, which came into force on 1 January 2019, the 2018 data is not restated for the impact of thisregulation on leases.




REVENUE4.2.2.


Technology Management & Financing Services

913 1,135 1,321

Digital Services & Solutions 1,646 1,779 1,678

Total revenue 2,559 2,914 2,999



income statements of 2018 under “Profit (loss) from discontinued operations”. However, in accordance with theprovisions of IFRS 16, which came into force on 1 January 2019, the 2018 data is not restated for the impact of thisregulation on leases.

For continuing operations, Econocomreported for financial year 2020 annualconsolidated revenue of €2,559 million,down 12.2% (of which 11.3% on an organicbasis).

This performance was mainly due to thespecific context of the 2020 marked by theglobal Covid-19 pandemic and thelockdown measures in the spring andautumn.

Technology Management & Financing

At 31 December 2020, TechnologyManagement & Financing recordedrevenue of €913 million compared with€1,135 million one year earlier, which is adecrease of 19.6%. This decline, linked to theuncertainties encountered by companies inthe context of the global pandemic,affected all of the Group’s regions with theexception of France, which achieved salesperformance close to that of last year.

This activity posted a decrease of 10% inrevenue in 2019 due to the difficultiesencountered by the Italian subsidiary andorganic growth of 1.6% in 2018.

Digital Services & Solutions

Digital Services and Solutions postedrevenue in 2020 of €1,646 million comparedwith €1,779 million in 2018, or a decrease of8.0% (of which 7.5% in organic growth).Activity, which had slowed sharply in thesecond quarter due to the lockdownmeasures implemented in all Europeancountries in which the Group operates,posted organic growth of nearly 4.7% lastquarter of 2020. In 2019, the DSS businessline generated revenue of €1,779 million,compared €1,678 million in 2017, up 6%.


02group overviewfinancial position and results

PROFIT (LOSS) FROM CURRENT OPERATING ACTIVITIES4.2.3.


Technology Management & Financing Services

37.0 44.0 52.3

Digital Services & Solutions 85.5 83.6 58.6

Total Profit (loss) from current operating activities(1)

122.5 127.6 110.9



income statements of 2018 under “Profit (loss) from discontinued operations”. However, in accordance with theprovisions of IFRS 16, which came into force on 1 January 2019, the 2018 data is not restated for the impact of thisregulation on leases.Before amortisation of intangible assets from acquisitions.(1)

The Group’s profit from current operatingactivities before amortisation of intangibleassets from acquisitions is €122.5 million, i.e.4.8% of revenue. The Group benefited fromthe effects of its cost-cutting plan launchedin early 2019, the continuous productivityimprovement in Services and its focus onprojects with higher added value.

In 2019 the Group’s profit from currentoperating activities stood at €127.6 million,accounting for 4.4% of revenue, makes byan improvement in profit (loss) fromoperating activities from Digital Services &Solutions.

In 2018 the Group’s profit from currentoperating activities stood at €110.9 million,affected by reduced profitability inTechnology Management & Financing. Forthe Group as a whole, profitability was 3.8%.

PROFIT (LOSS) 4.2.4.FROM OPERATING ACTIVITIES

The Group’s profit (loss) from operatingactivities was €84.1 million in 2019, comparedwith €101.2 million in the previous year.Non-recurring expenses amounted to€36.2 million, up compared with €26.8 millionin 2019, driven in particular by reorganizationmeasures in connection with the costreduction plan.

In 2018, non-recurring expenses amountedto €19.9 million as a result of neworganisation measures and costs associatedwith the closure of sites.

FINANCIAL POSITION4.2.5.

The Group boasted a sound financialposition at 31 December 2020, with netcash at bank of €284 million and a positivenet cash position of €20.2 million.

At 31 December 2019, as at 31 December2018, net financial debt stood at€252 million, less than 1.5x Group EBITDA in2019.



Equity restrictions4.3.In May 2015, the Group issued a EuroPrivate Placement (Euro PP) bond and aSchuldschein loan in November 2016.

The Group is subject to one single covenantin relation to these bond issues. It iscalculated as of 31 December of each year,and corresponds to the ratio of net debt toproforma EBITDA. And it may not exceed3x over two consecutive years. A breachwould not result in early redemption, but itwould force the Group to pay a higherinterest rate until the ratio is brought backwithin the relevant bounds.

Other lines of credit do not containcovenants in respect of maximum debt,financial ratios or credit ratings that, ifbreached, would trigger immediaterepayment.

Econocom is not subject to any legal oreconomic restrictions liable to limit orsignificantly restrict cash flows within theGroup in the foreseeable future.


02group overviewcorporate governance

Corporate Governance5.Board of Directors 5.1.

and Advisory CommitteesThe composition and functioning of the Boardof Directors and the Board’s Committees aregoverned by:

articles 7:85 et seq. of the Belgian•Companies Code;

articles 14 et seq. of the Bylaws;•

the internal rules of the respective•Committees, available on the Econocomwebsite (www.econocom.com), i.e.:

the internal rule of the Board of(i) Directors’ meeting of 19 May 2016 (the“Board of Directors’ internal rule”),

the internal rule of the Executive(ii) Committee (formally ExecutiveCommittee) of 7 September 2016 (the“Executive Committee’s internal rule”),

the internal rule of the Audit(iii) Committee of 27 January 2020 (the“Audit Committee’s internal rule”), and

the internal rule of the Compensation(iv) and Appointments Committee of27 January 2020 (the “Compensation andAppointments Committee’s internalrule”).

For more details on corporate governance,please refer to section 5, chapter 5 of thisreport, which contains the ManagementReport of the Board of Directors on thefinancial statements for the year ended31 December 2020.

BOARD OF DIRECTORS5.1.1.

Composition 5.1.1.1.of the Board of Directors

Appointment (article 14 of the 5.1.1.1.1.Bylaws and article 4 of the Board of Directors’ internal rules)

term of four years by the General Meeting,which may remove them at any time. Theymay be re-elected. The term of office ofoutgoing Directors ends immediately afterthe General Meeting that decides onre-election.

The Company is governed by a Boardcomprising at least three members, whetheror not shareholders or legal persons. Membersare appointed to the Board for a maximum

The composition of the Board includesmostly non-executive Directors and anappropriate number of independentnon-executive Directors. If the number ofDirectors so permits, at least three Directorsshall be independent within the meaning ofPrinciple 3.5 of the 2020 Belgian CorporateGovernance Code. The aim is that at leasthalf of Board members should benon-executive Directors, and that at leastone-third of Board members should be of adifferent gender than the other members.

Directors are appointed by the GeneralMeeting from the candidates put forwardby the Board.

Directors undertake to act in Econocom’sinterest and to maintain independence ofjudgement, decision-making and action inall circumstances. They participate in thework of the Board in a wholly impartialmanner. Even if Directors know Econocomgroup’s business sector well, they shouldcontinue to build on their knowledge andexpand their expertise.

The Board regularly reviews its composition,functioning and interaction with the ChiefExecutive Officer(s), managing Director(s),who are in charge of day-to-daymanagement, and with the ExecutiveCommittee.

Vacancy (article 15 of the Bylaws)5.1.1.1.2.

If a seat on the Board becomes vacant, theremaining Directors are entitled to fill ittemporarily. In this case, the first GeneralMeeting after the seat becomes vacantappoints a Director to fill the vacancy on along-term basis. The Director nominated inthe conditions described above is appointedfor the remaining term of office of theDirector he/she is replacing.


02 group overviewcorporate governance

Chair, Vice-Chair and Secretariat 5.1.1.1.3.(article 16 of the Bylaws and articles 4.6, 5 and 6 of the Board of Directors’ internal rules)

The Board of Directors elects a Chairmanand Vice-Chairman from among itsmembers.

The Chairman of the Board is responsiblefor:

Ensuring the management by the1.Board, and in particular see to it that theBoard is well organised, operatesefficiently and performs its obligationsand responsibilities, namely:

preparing, convene, presiding and▶managing the sessions of the Boardand making certain that in themeetings, sufficient time is reservedfor a serious in-depth discussion ofthe relevant issues,

drawing up the agenda for the▶meetings of the Board, in liaison withthe managing Director(s), ChiefExecutive Officer(s) and, whereappropriate, the Executive Committee,

ensuring that the Board receives the▶appropriate information and that thedocuments supporting proposals fordecisions are relevant and readilyavailable within a reasonable timeprior to Board meetings;

Ensuring the quality and continuity of2.the Board’s work by initiating andmanaging procedures concerning:

the assessment of the size,▶composition and performance of theBoard of Directors or the managingDirector(s), its Committees, ChiefExecutive Officers and the ExecutiveCommittee to ensure the efficiency ofthe decision-making process,

appointing or re-electing members of▶the Board, the Chief Executive Officers,members of the Board’s Committeesand the Executive Committee;

“Liaising” between the Board, Chief3.Executive Officers and the ExecutiveCommittee. This involves:

meeting regularly with the managing▶Director(s), Chief Executive Officer(s)and other members of the ExecutiveCommittee,

seeing to it that relations between the▶Board and the managing Directors andExecutive Committee are of aprofessional and constructive natureand that the Executive Committeeprovides the Board with theinformation necessary to play its role interms of evaluation, decision-making,supervision and control,

if it deems it in the interest of the▶Company, the Board may turn overthe position of Chairman to anyDirector who performs executiveduties within Econocom,

in the absence of the Chairman of the▶Board, the Vice-Chairman replaceshim. Should both the Chairman andthe Vice-Chairman be prevented fromattending a Board meeting, theDirectors present elect a Chairman forthe meeting in question.

The Board of Directors may appoint aCompany Secretary who reports on howthe procedures, rules and regulationsapplicable to the Board are implementedand respected. Directors may consult theCompany Secretary at their own initiative.



Compensation (article 14 of the 5.1.1.1.4.Bylaws and article 10 of the Board of Directors’ internal rules)

Directors may or may not collectcompensation for the performance of theirduties. Any fixed or variable compensationmay be set by the General Meeting acting ona recommendation from the Board ofDirectors assisted by the Compensation andAppointments Committee.

Compensation is set for each Director or onan aggregate basis for the Board as a whole,in which case the Board shall decide how toallocate the compensation according tocriteria it defines.

Compensation due to non-executiveDirectors is determined based on a realisticassessment of their responsibilities, theassociated risks and market practices.

Powers of the Board of 5.1.1.2.Directors (article 20 of the Bylaws and article 2 of the Board of Directors’ internal rules)

The Board of Directors is vested with thepower to undertake all actions necessary oruseful for the Company to fulfil its corporatepurpose, except for those actions set aside bylaw for the General Meeting, and withoutprejudice to the powers it may delegate.

The Board represents the Company in itsdealings with third parties and in legalproceedings, either as plaintiff or defendant.

It has the following duties andresponsibilities, which it performs with thesupport of the managing Directors,Executive Committee and the Committeesit has established:

Code, as well as members of the ExecutiveCommittee and, more broadly, ensure theestablishment of a clear and effectivemanagement structure;

appoint, monitor and evaluate the Chief•Executive Officer(s) and managingDirectors, members of the Committeesestablished in accordance with theprovisions of the Belgian Companies

approve the strategic plans on the•suggestion by the Chairman of the Boardafter study with the Executive Committee;

assess Econocom’s functioning in relation•to its strategic and budgetary targets,based notably on a quarterly review offinancial results and any other reportsmade to the Board;

approve any acquisitions, investments or•internal reorganisation considered strategicby the Chairman of the Board or theExecutive Committee;

take all steps necessary to ensure the•integrity of the financial statements andother important information that must bedisclosed to investors, and their publicationwithin the prescribed timeframe;

approve an internal control and risk•management framework and oversee thework of the Statutory Auditor and InternalAudit;

approve any other matters that the•Chairman, Chief Executive Officer orExecutive Committee member believesshould be submitted for approval by theBoard due to its strategic significance(even in relation to matters delegated bythe Board to the Executive Committee, theChief Executive Officers, the managingDirectors or any third party);

take all decisions on matters set aside for•it by law and the Bylaws, including anydecision to be submitted to the GeneralMeeting;

assess its own functioning and interaction•with the Chief Executive Officer(s), themanaging Directors and the ExecutiveCommittee.



Functioning of the Board 5.1.1.3.of Directors

Meetings (article 17 of the Bylaws 5.1.1.3.1.and article 7.1 of the Board of Directors’ internal rules)

The Board of Directors meets at least fourtimes a year. Board meetings are convenedand chaired by the Chairman, or, if theChairman is prevented from attending aparticular meeting, by the Vice-Chairman,whenever it is deemed to be in theCompany’s interest or each time a minimumof two Directors so request.

The Chairman prepares the agenda foreach Board meeting together with theChief Executive Officer(s) or the ExecutiveCommittee.

Board meetings are held at the locationindicated in the convening notice.

Members of the Board are convened atleast five working days before the date ofthe meeting, unless a shorter timeframe isin the Company’s interests or the Directorsdecide upon one.

Important information needed to allow theDirectors to understand the matters to bediscussed at the meeting are sent to eachDirector as soon as possible before the dateof the Board meeting.

A Director unable to attend a Boardmeeting may be represented by anotherDirector provided a proxy request issubmitted in writing.

The Board may invite any persons whosepresence it deems useful to attend itsmeetings.

Quorum and deliberations 5.1.1.3.2.(article 18 of the Bylaws and article 7.3 of the Board of Directors’ internal rules)

The Board of Directors may only validlydebate and take decisions if at least half ofits members are present or represented.

Decisions of the Board are adopted on thebasis of a majority of votes cast; abstentionsare not counted. When there is no majority,the person chairing the meeting holds thecasting vote.

In exceptional circumstances, whenurgency and the best interests of theCompany so dictate, decisions may beadopted pursuant to the unanimousconsent of the Directors, expressed inwriting. However, this procedure cannot beused for the approval of the annualfinancial statements or the utilisation of theauthorised capital.

Proxies (article 18 of the Bylaws 5.1.1.3.3.and article 7.1 of the Board of Directors’ internal rules)

All Directors may ask one of theircolleagues to represent them at a givenmeeting of the Board of Directors and voteon their behalf. This request may be madein writing, by email, by fax, or by any othermeans used to grant unequivocal specialrepresentative powers. In this case, theDirector (proxy giver) represented isdeemed to be present.

A Director may represent one or moreother members of the Board.

Directors may also express opinions andvote in writing, by email or by fax, but onlyif half of the Board members attend themeeting in person.

Minutes (article 19 of the Bylaws 5.1.1.3.4.and article 7.5 of the Board of Directors’ internal rules)

Deliberations of the Board of Directors arerecorded in the minutes of the meeting. Inaccordance with the Bylaws, these minutesmust be signed by at least the majority ofthe members in attendance. However, theBoard of Directors, at its meeting of4 September 2019, unanimously decidedthat the minutes would be signed at thenext Board meeting and would from nowon be signed by the Chairman, the BoardSecretary and if applicable by Directors thatso request.

These minutes are recorded in a specialregister together with any delegations ofauthority granted.

Copies or extracts required for legal or otherpurposes are signed by the Chairman, by aChief Executive Officer, by two Directors orby a managing Director.



Information provided to the Board 5.1.1.3.5.(article 9 of the Board of Directors’ internal rules)

The Directors have access to all of theinformation needed to exercise their dutiesin a due and proper manner. Non-executiveDirectors may raise issues with members ofthe Executive Committee, after havingconsulted the Chairman of the Board or aChief Executive Officer and made sure thatthis will not jeopardise the proper conductof business.

Directors may not use the informationreceived in their capacity as Director forpurposes other than the exercise of theiroffice. They are required to keep anyinformation they receive in their capacity asDirector confidential.

Day-to-day management – 5.1.1.4.delegation (article 21 of the Bylaws and article 3 of the Board of Directors’ internal rules)

The Board of Directors may delegate thepower to manage the Company’sday-to-day affairs or to represent theCompany with regard to its day-to-daymanagement to one or more Directors whoare also Chief Executive Officers and/or toone or more executives who are alsomanaging Directors.

Their roles and responsibilities are set out inthe agreement governing theirappointment. Nevertheless, the limitsplaced on their representative powers forthe purposes of day-to-day managementshall not be binding on third parties, even ifthey are published.

exercise of their powers, subject to theconsent of the Board of Directors or theperson responsible for day-to-daymanagement (as appropriate).

The Board of Directors and thoseresponsible for day-to-day management,within the limits of the powers of day-to-daymanagement, may grant special andprecise powers to one or more persons oftheir choice, who need not be shareholdersor Directors. Holders of these special powersmay substitute one or more persons in the

In the event of a special delegation ofpowers, the deed of appointment definesthe relevant powers and the relatedcompensation.

Liability of the Board of 5.1.1.5.Directors (article 25 of the Bylaws)

The Directors and the Statutory Auditor(s) arenot personally liable for undertakings madeby the Company.

Pursuant to common law and theprovisions of the Belgian Companies Code,they may be held liable for theperformance of their duties and any faultscommitted in their management.

Representation 5.1.1.6.(article 22 of the Bylaws)

The Board of Directors represents theCompany as a collegial body in its dealingswith third parties and in legal proceedings.

Notwithstanding the Board’s generalpowers of representation as a collegial body,the Company is legitimately represented inany legal proceedings and in its dealingswith third parties, including with publicofficers (and mortgage registrars):

either by the Chairman of the Board of•Directors, acting alone; or

by two Directors, acting in concert; or•

by a Chief Executive Officer, acting alone;•or

by a managing Director, acting alone.•

The aforementioned persons are notrequired to provide any justification of aprior decision of the Board of Directors.

The Company is also legitimatelyrepresented by special proxies actingwithin the scope of their mandate.



COMMITTEES 5.1.2.OF THE BOARD OF DIRECTORS (ARTICLE 21 OF THE BYLAWS)

The Board of Directors may set up anyCommittee it deems useful, permanent ortemporary, in an advisory or technicalcapacity. The internal rules of theseCommittees are set by the Board ofDirectors.

Each Committee is governed by its owninternal rules, which define its composition,role, function and responsibilities as well asits functioning. These internal rules areadopted by the Board of Directors.

The Board of Directors shall establish anAudit Committee within the meaning ofarticle 7:99 of the Belgian Companies Code,as well as a Compensation Committeewithin the meaning of article 7:100 of theBelgian Companies Code. The compositionof these Committees, their tasks andinternal rules are established by the Boardof Directors, pursuant to the provisions ofthe Belgian Companies Code.

The Board of Directors may establishspecialised Committees tasked withexamining and advising on specific issues. Thecomposition and role of these Committees aregoverned by the Board of Directors inaccordance with applicable law.

Executive Committee 5.1.2.1.(article 21 of the Bylaws, article 3 of the Board of Directors’ internal rules and the Executive Committee’s internal rules)

General information5.1.2.1.1.

Pursuant to articles 15:18 and 7:121 of theBelgian Companies Code and article 21 ofthe Company’s Bylaws, the Board mayestablish an Executive Committee,consisting of several persons, Directors ornot, and delegate to it the operationalmanagement of the Company, as well asspecial powers other than those relating tooperational management, without prejudiceto the day-to-day management powersconferred to the managing Directors andChief Executive Officers.

However, the Board of Directors retainsexclusive powers for overall policy and foracts reserved for the Board pursuant to thelaw, the Bylaws or the Board’s internalrules. The Board may also address anyquestion relating to operationalmanagement, if it considers it appropriate.In accordance with the decisions of theBoard, the Committee may, in turn,delegate any of its responsibilities to anExecutive Committee (ExCom).

Composition 5.1.2.1.2.of the Executive Committee

The members of the Executive Committeeare appointed by the Board of Directors. TheExecutive Committee has at least threemembers, who may or may not be Directorsor Econocom group employees. The Boardof Directors shall in principle ensure thateach Chief Executive Officer and eachmanaging Director in charge of Econocom’sday-to-day management is a member of theExecutive Committee.

The members of the Executive Committeemay, in their capacity as Council members,be removed by the Board of Directors atany time (without prejudice to employmentor management contracts binding them toEconocom group).

The members of the Executive Committeeare appointed for a maximum term of sixyears. They may be re-elected.

The Executive Committee is chaired bya Chief Executive Officer appointed by theBoard.

Role of the Executive Committee5.1.2.1.3.

The Executive Committee’s responsibilitiesinclude, but are not limited to:

taking all steps necessary to implement•the decisions or recommendations of theBoard;

proposing strategic guidelines to be set•by the Board, and framing budgets withinthe strategic guidelines laid down by theBoard;



managing the Group’s operating entities (in•accordance with the powers of the bodies ofthese entities), and supervising theirfinancial and operating performance;

entering into all agreements, making and•approving all pricing proposals, placingand accepting all orders to buy, sell orlease any equipment and other capitalgoods and services;

leasing and renting out, even for long•periods, any properties, equipment orintangible assets, and entering into anylease and rental agreements concerningsuch assets;

concluding financing, with or without the•provision of collateral, except for thefollowing transactions, which fall within thescope of the powers of the Board: anycapital market transaction (other thancommercial paper), any financing that hasthe effect of causing consolidated net debtto exceed consolidated equity or torepresent more than 2x consolidatedEBITDA;

performing any external growth•transaction, investment or disinvestment,with the exception of strategic transactions(including any transaction whose value orconsideration exceeds €4 million), whichfall within the scope of the powers of theBoard of Directors;

acting in dealings with the national•government or EU, regional, state andmunicipal authorities, the CrossroadsBank for Enterprises (Banque-Carrefourdes Entreprises), the tax authorities, thepostal service, customs authorities,telecommunications companies and anyother public departments or authorities;

managing all legal or arbitration•proceedings, as plaintiff or defendant,negotiating all settlements, taking all stepsnecessary in this respect, and obtainingand enforcing all rulings;

representing Econocom in its dealings•with trade union and employerrepresentative bodies;

drafting and signing all documents•necessary for implementing the powersdelegated to it.

Without prejudice to the powers set aside forthe Board or the Board’s Committees, such asthe Audit Committee, the ExecutiveCommittee is also responsible for:

implementing internal controls;•

preparing full, timely, reliable and•accurate financial statements inaccordance with accounting standardsand with Econocom’s overall policies asdefined by the Board;

presenting the Board with an impartial and•comprehensible assessment of theCompany’s financial position and, moregenerally, promptly providing the Boardwith all of the information it needs toperform its duties.

The Committee may in turn delegate allpowers assigned by the Board of Directors,both to Econocom employees and thirdparties.

The powers conferred on the ExecutiveCommittee shall in no event include thepowers reserved by law, the Bylaws orinternal rules for the Board of Directors. It isalso the responsibility of the ExecutiveCommittee to:

submit to the Board any question relating•to a strategic transaction bearing onEconocom or the Group, without prejudiceto the Board’s powers to examine anyissues relating to operational management;

respect the day-to-day management•powers delegated by the Board of Directorsto one or more Chief Executive Officersand/or managing Directors.



Functioning of the Executive 5.1.2.1.4.Committee

With the exception of the mattersdescribed below, the rules set out in theBylaws applicable to Board meetings,deliberations and minutes also apply to theExecutive Committee.

The Executive Committee meets at theinitiative of its Chairman, or when requestedby two Executive Committee members. TheExecutive Committee meets at least tentimes a year. Meetings are held at thelocation indicated in the convening notice.

The agenda for the meetings is set by theChairman. However, members are entitledto propose the addition to the agenda ofany item they deem necessary. TheExecutive Committee’s discussions arebased on files containing all informationneeded for decisions to be made,distributed to each member. The ExecutiveCommittee may invite any persons whosepresence it deems useful to attend itsmeetings.

The Executive Committee acts as a collegialbody; its decision-making is based ona consensus-building process. Whereappropriate, the Chairman of the ExecutiveCommittee may put matters discussed tothe vote, at his own initiative or further to therequest of two other members. Matters arethen decided by a majority vote of allmembers present. When there is no majority,the Chairman holds the casting vote.

The Executive Committee reports to theBoard of Directors on its management andon any significant issues falling within thescope of its responsibility. The Chairman ofthe Committee or any other Committeemember appointed for the purpose issuesa quarterly report in this regard for theChairman of the Board of Directors; thisreport includes internal reporting offinancial results for the quarter.

its duty of oversight as required by law, theBylaws and its internal rules.

The Executive Committee takes all steps itdeems necessary to allow the Board to fulfil

At 31 December 2020, the ExecutiveCommittee consisted of Jean-Louis Bouchard,representing Econocom International BV,Éric Bazile, Angel Benguigui Diaz,Laurent Caparros, Philippe Goullioud,Laurent Roudil and Chantal De Vrieze.

Audit Committee (article 21 5.1.2.2.of the Bylaws and the Audit Committee’s internal rules)


The Board of Directors has set up an AuditCommittee in accordance with article 21 ofEconocom’s Bylaws and with article 7:99 ofthe Belgian Companies Code.

The role of the Audit Committee is to assistthe Board of Directors in performing its dutiesof oversight of Econocom’s business in thebroadest sense of the term. More specifically,the Audit Committee assesses financialinformation and monitors internal control,risk management and internal and externalaudit processes. It issues opinions.

Composition of the Audit 5.1.2.2.2.Committee

The Audit Committee comprises at leastthree Directors, exclusively non-executive,one of which must be an independentDirector. If additional Directors areappointed to the Audit Committee, theCommittee must always include at least oneindependent Director with accounting andaudit expertise.

The members of the Audit Committee areappointed by the Board of Directors. Thethree-year term of office is renewable.

The Chairman of the Audit Committee isappointed by the Board of Directors. TheChairman of the Board of Directors cannotchair the Audit Committee.

The term of office of a member of the AuditCommittee ends at the same time as histerm of office as Director.



At 31 December 2020, the Audit Committeeconsisted of Gaspard Dürrleman, WalterButler, Jean-Philippe Roesch andMarie-Christine Levet. The Committee ischaired by Jean-Philippe Roesch.

Role of the Audit Committee5.1.2.2.3.

The Audit Committee is responsible for thetasks described below:

Production of financial information1.

monitoring the process of preparing▶financial information and ensuringits reliability, i.e., the accuracy,completeness and consistency of thefinancial statements,

discussing any material financial▶reporting issues with the members ofthe Executive Committee and with theStatutory Auditor. The ExecutiveManagement, and in particular themanaging Director(s) and ChiefExecutive Officer(s) informs the AuditCommittee of the methods used toaccount for material and unusualtransactions when several possibleapproaches exist, and of the existenceand justification of activities carried outthrough special purpose vehicles,

communicating the results of the▶statutory audit of the annual andconsolidated financial statements tothe Board of Directors, explaining howthe statutory audit contributed to theintegrity of the financial informationand the Audit Committee’s role in thisaudit process.

Internal control – risk management2.

ensuring that the risk management▶and control system is effective,assessing whether the systems areappropriate and, where applicable,making recommendations to mitigateany material risks,

reviewing the results of any▶investigations undertaken within theCompany in response to fraud or errors,or for any other reason, as well asdecisions made by executivemanagement on these occasions and,where necessary, formulating its ownrecommendations,

ensuring that the systems in place▶within the Company and itssubsidiaries to guarantee compliancewith the main legal and regulatoryrequirements applicable to them,

ensuring the implementation of a▶specific system for employees toconfidentially raise concerns aboutany irregularities in the preparation offinancial information or other matters;

Internal Audit3.

reviewing and making▶recommendations on executivemanagement proposals relating to:

the appointment and replacement▶of the Internal Audit manager forwhom the Audit Committee has aright of veto,

the annual budget allocated to its▶operations;

defining, together with the Internal▶Audit manager, the control plan to beconducted during the financial year,

ensuring the systematic implementation▶of the Internal Audit control plan andupdating it at least every six months,

reviewing the effectiveness of the▶Internal Audit function, chiefly byanalysing to what extent managementprovides full support and applies thefindings and recommendations;



External Audit4.

formulating recommendations to the▶Board of Directors as to theappointment of the Company’sStatutory Auditor of the renewal of histerm of office, the amount of hiscompensation and any mention of hismission,

ensuring Statutory Auditor▶independence, chiefly in light of theprovisions set forth in the BelgianCompanies Code and the Royal Decreeof 4 April 2003,

identifying the Statutory Auditor’s▶work programme and reports,

periodically reviewing the effectiveness▶of the external audit process andanalysing how the ExecutiveManagement follows up on anyrecommendations made by theStatutory Auditor,

defining, together with the Company’s▶Statutory Auditor, the nature, scopeand cost of the Statutory Auditor’sinvolvement in any work performedthat is unrelated to the statutory auditengagement;

Other5.

formulating recommendations to the▶Board of Directors concerning mattersfalling within the scope ofresponsibility of the Audit Committee,

fulfilling any other roles assigned by▶the Board of Directors.

Functioning of the Audit 5.1.2.2.4.Committee

The Audit Committee meets as often asnecessary and at least four times a year. Atleast two meetings a year deal chiefly withthe financial statements.

of the Audit Committee to place any itemhe or she considers appropriate on theagenda.

The Chairman of the Audit Committeedetermines the agenda for each meeting.An Executive Management or AuditCommittee member may ask the Chairman

The Audit Committee takes care topreserve free and open communicationwith the Executive Management.

The Audit Committee may invite theStatutory Auditor, Internal Audit managerand any other member of the ExecutiveManagement or Econocom employees toattend all or part of its meetings. TheInternal Audit manager and the StatutoryAuditor must each attend at least twoAudit Committee meetings per year.

Before meetings of the Audit Committee, itsChairman is responsible for ensuring thatmembers receive accurate, complete andclear information in connection with theitems on the agenda. The ExecutiveCommittee is required to provide allnecessary information, and the AuditCommittee may request any clarification itdeems necessary.

Except in emergencies identified by theChairman of the Audit Committee, AuditCommittee meetings are convened at leastfive working days before they are due to takeplace. A shorter timeframe may applyprovided that all members agree.

The Audit Committee can deliberate if atleast two of its members are in attendanceor legitimately represented. Decisions aremade by a majority of votes cast. If themajority requirement is not met, theChairman of the Committee makes the finaldecision.

The Chairman of the Audit Committee is incharge of preparing the minutes of themeetings.

The minutes signed by the Chairman of theAudit Committee are sent to the Chairmanof the Board of Directors and made availableto all members of the Audit Committee, theBoard of Directors and the StatutoryAuditor.



The Audit Committee informs the Board ofall significant issues to for which it believesthat measures must be implemented or forwhich an improvement is recommended.

The Audit Committee annually assesses itsfunctioning and effectiveness. It meets forthis purpose with the Internal Auditmanager and the Statutory Auditor for anexchange of views on the audit process andthe Audit Committee’s internal rules. Itreports this assessment to the Board ofDirectors and makes, if necessary, proposalsfor modifications.

Compensation 5.1.2.3.and Appointments Committee (article 21 of the Bylaws and the Compensation and Appointments Committee’s internal rules)


The Board of Directors has established aCompensation Committee in accordance witharticle 7:100 of the Belgian Companies Codeand article 21 of the Company’s Bylaws. On23 January 2020, the Board of Directorsdecided to extend the CompensationCommittee’s responsibilities to Appointments,and to limit its scope of action to corporateofficers (Directors and managing Directors incharge of day-to-day management) andexecutives involved in the Group’s SeniorManagement. One of the mostcomprehensive cloud solutions offering onthe market

The Compensation and AppointmentsCommittee mainly advises and assists theBoard of Directors. The Committee alsoperforms the duties that may be assigned toit by the Board of Directors in regardingcompensation and appointments. It carriesout its duties under the supervision of theBoard. In this context, it ensures free andopen communication with the Chairman ofthe Board and executive management.

Composition of the Compensation 5.1.2.3.2.and Appointments Committee

The Compensation and AppointmentsCommittee consists of three non-executiveDirectors. The majority of members areindependent as defined by article 7:87,section 1 of the Belgian Companies Code.The Compensation and AppointmentsCommittee has the necessary expertise inmatters of compensation.

The term of office of Compensation andAppointments Committee members is fouryears, and does not exceed their term ofoffice as Directors. The term of officeas Compensation and AppointmentsCommittee members may be renewed atthe same time as their term of office asDirectors.

The Compensation and AppointmentsCommittee is chaired by a non-executiveDirector.

The Chairman of the Compensation andAppointments Committee oversees its workand takes all necessary steps to create aclimate of trust within the Committee bycontributing to open discussions andencouraging constructive debate.

Members of the Compensation andAppointments Committee choose a Secretaryfrom among themselves.

At 31 December 2020, the Compensationand Appointments Committee consisted ofAdeline Challon Kemoun, Marie-ChristineLevet and Robert Bouchard. The Committeeis chaired by Marie-Christine Levet.



Role of the Compensation and 5.1.2.3.3Appointments Committee

Compensation aspect

At the request of the Chairman of the Boardand with respect to persons within the scopedefined above, the Committee is responsiblefor formulating recommendations and givingits opinion to the Board on:

the compensation policy;a)

individual compensation (in particularb)Directors’ fees, fixed and variablecompensation, long-term incentives,including shares and stock options,termination benefits);

the contractual terms and conditionsc)that support this compensation;

the determination and assessment ofd)performance targets linked to individualcompensation;

stock option or share plans (budget,e)beneficiaries, characteristics and conditions).

Based on the data provided by theCompany’s Senior Management, theCommittee prepares the compensationreport which is subsequently added to thecorporate governance statement. Inparticular, it reviews the change in the totalamount paid to the ten highest paidemployees. It prepares and comments on thecompensation report during the OrdinaryGeneral Meeting.

Appointments aspect

At the request of the Chairman of the Board,the Committee is responsible forformulating recommendations and giving itsopinion to the Board on the appointmentand reappointment of corporate officers andthe appointment of executives with theauthorisation in fact or in law to use theGroup’s signature.

Working closely with the Chairman of theBoard, the Committee draws up and submitsto the Board a succession plan for executivecorporate officers.

The Committee ensures the existence ofsuccession plans for the Company’s keypositions.

The Committee also ensures that appropriatetalent development programmes anddiversity promotion programmes are inplace.

The Board of Directors has grantedthe Compensation and AppointmentsCommittee, in accordance with article 21 ofthe Bylaws, decision-making powers onbehalf of the Board of Directors with respectto stock option plans or any other plans forgranting financial instruments, such aswarrants, existing or future plans. In this case,the Committee’s conducts its work under theresponsibility and supervision of the Board towhich it reports. Within the limits of thepowers entrusted to the Board and inaccordance with its rules, the Committee issubsequently responsible for implementingthe Plans and in particular for allocating anddistributing, following the recommendationof the Chairman of the Board of Directors,the amount previously set by the Board ofDirectors.

Functioning of the Compensation 5.1.2.3.4.and Appointments Committee

The Compensation and AppointmentsCommittee meets as often as necessaryand at least twice a year.

Compensation and Appointments Committeemeetings are convened by the Chairman, whoalso determines the agenda. A Director orExecutive Committee member may ask theChairman of the Compensation andAppointments Committee to place any itemhe or she considers appropriate on theagenda.

Except in the event of emergencies identifiedby the Chairman of the Compensationand Appointments Committee, noticeof Compensation and AppointmentsCommittee meetings (and the agenda for saidmeeting) are sent by any means ordinarilyused by the Company within a reasonableperiod before the meeting is due to takeplace.



Before meetings of the Compensation andAppointments Committee, its Chairman isresponsible for ensuring that membersreceive accurate, complete and clearinformation and all relevant documentsrelated to the items on the agenda.

The Senior Management provides allnecessary information, and the Compensationand Appointments Committee may requestany clarification it deems necessary.

The Compensation and AppointmentsCommittee may invite any persons whosepresence it deems useful to attend itsmeetings. The Committee may ask for anindependent professional opinion on issuesit considers necessary to perform its duties,at the Company’s expense, within the limitof an annual budget approved by the Boardof Directors.

Directors may not attend Compensation andAppointments Committee meetings thatdeliberate on their own compensation, andtherefore may not take part in any decisionsin this respect.

The Chairman of the Board of Directors mayparticipate in meetings of the Compensationand Appointments Committee in anadvisory capacity when said meetingsdiscuss compensation for other Directorsand Executives.

The Compensation and AppointmentsCommittee can deliberate if at least two of itsmembers are in attendance or legitimatelyrepresented. Decisions of the Compensationand Appointments Committee are made bya majority of votes cast by Compensation andAppointments Committee members that arein attendance or legitimately represented. Inthe event of a tie, the Chairman of theCommittee makes the final decision.

Conflicts of interest5.2.The Company’s corporate officers mustcomply with the recommendations ofarticle 7:96 (conflicts of interest betweenthe Company and a Director) and 7:97(intragroup conflicts of interest) of theBelgian Companies Code.

To comply with the Corporate GovernanceCode, the Company has issued a number ofrecommendations for its Directors and themembers of its Executive Managementconcerning transactions and othercontractual relationships between theCompany (and any companies related to it),its Directors and the members of itsExecutive Management when suchtransactions and other contractualrelationships are not covered by legalprovisions on conflicts of interest.

These recommendations are outlined in theconflicts of interest procedure adopted on22 November 2012 by the Board, and in thestipulations outlined in the Board ofDirectors’ internal rules (the “Internal rules”on Conflicts of Interest) and in the ExecutiveCommittee’s internal rules relating,respectively, to conflicts of interests ofDirectors and of members of the ExecutiveCommittee, described in the Board ofDirectors’ Internal Rules and the ExecutiveCommittees’ Internal Rules respectively.

In short, Directors and Executive Committeemembers must at all times act in theinterests of the Company and its subsidiaries.They apply rigorous discipline to excludepotential conflicts of interest in respect ofpersonal assets, professional or other aspectsas much as possible, and to comply strictlywith rules on conflicts of interest adopted bythe Company.



When a Director or an ExecutiveCommittee member, directly or indirectly,has an interest that is contrary to a decisionor transaction made by Econocom, bearingon personal assets or not, he or she shallimmediately inform the Chairman of theBoard, and, if he or she is a Director, theother Directors, and if he or she is amember of the Executive Committee, theother members of said Committee, no laterthan the beginning of the meeting atwhich the matter giving rise to the conflictis discussed. He or she shall then not takepart in the discussion or vote on the matter.The Chairman shall then decide whether itis appropriate to make a report to theBoard.

The transactions covered by this section aresubmitted to the Audit Committee, whosetask is to ensure that said transactionscomply with the procedures outlined aboveor, where applicable, that they are normaltransactions conducted under normalmarket conditions and guarantees generallyapplied to transactions of a similar nature.The Audit Committee found that almost all ofagreements reached during the 2020financial year were normal transactionsconducted under normal market conditions.

All material agreements between Econocomgroup and its related parties are disclosed innote 22, “Related party information”, to theconsolidated financial statements in the 2020annual report.

Biographies 5.3.of Directors

as Chairman until he sold his non-controllinginterest to Société Générale in 1984. In 1982,he founded Econocom in Brussels, and in1985 became Chairman of the ManagementBoard of Econocom International NV. In 1987,he was named “Entrepreneur of the year” byChallenges magazine.

Econocom International BV is controlled andrepresented by Jean-Louis Bouchard. Hebegan his career in 1966 as an AccountManager at IBM, spending two years at IBMWorld Trade in New York. Between 1971 and1981, he created and served as Chairman andChief Executive Officer of Informatiques InterÉcoles. In 1973, he founded EuropeComputer Systèmes (ECS), where he served

Robert Bouchard began his career withCardif in 1995 as negotiating clerk for MATIFon the Paris stock exchange. In 1997, hebecame an executive shareholder of anumber of restaurants in Paris (La Gare,L’Ampère, Meating and Carmine). In 2010, hetook over as Chairman of APL Data Centre(specialising in the design, implementationand operation of data centres), and iscurrently its majority shareholder. He wasChairman of Digital Dimension fromNovember 2016 to November 2017, GroupChief Operating Officer from June 2017 toMarch 2018, and Group Chief ExecutiveOfficer from March 2018 to November 2018.Robert Bouchard is Jean-Louis Bouchard’sson.

Walter Butler, who has French and Braziliancitizenship, is a graduate of the ÉcoleNationale d’Administration (ENA). He beganhis career with the Inspectorate General ofthe French Ministry of Finance before goingon to become Executive VP of GoldmanSachs in New York. He founded ButlerCapital Partners (BCP) in 1991. His groupcurrently specialises in private equity andcredit in Europe (Butler InvestmentManagers in London), as well as investing incompanies, including Osiatis. Walter Butlerwas formerly Chairman of the Frenchprivate equity and venture capitalassociation (Association Française desInvestisseurs en Capital – AFIC), a memberof the French Strategic Investment FundCommittee (Comité du Fonds Stratégiqued’Investissement – FSI) and France’sNational Economic Analysis Council (Conseild’Analyse Économique de la RépubliqueFrançaise).



Adeline Challon-Kemoun began her careeras a communications consultant withImage 7. She subsequently held executivemanagement positions (Euris and Rallye) andserved as Communications Director for majorgroups (Casino, France Télévisions and AirFrance-KLM). She was notably Executive VicePresident of Marketing, Digital &Communications for Air France-KLM and amember of the Group Executive Committeeuntil 2017. In 2018, she joined the MichelinGroup as Executive Vice President ofEngagement and Brands, and became amember of the Group Executive Committee.She has been an independent Director ofBourbon Corporation since March 2017. Shehas a sound understanding of theexpectations of brand and image issues, aswell as individual and corporate customers.

Gaspard Dürrleman began his career withBasaltes group in 1982. He went on to headEconocom Trading from 1985 to 1987, thenInnovation et Gestion Financière from 1987 to1992. He was subsequently head of the leathergoods division at Hermès until 2000, and thenof Delvaux in Belgium until 2003. He thenjoined Arthus-Bertrand group, which he ran forthree years. In 2009, he became Chairman andCEO of Cambour, a jewellery manufacturer, aposition he held until the end of 2015. Sincethen, in parallel with its consultancy activitywith players in the luxury market sector, he hastaught in a business school and in 2018 he wasawarded a University Teaching Diploma inmulti-disciplinary health studies in conjunctionwith Université Paris 7 Bichat. Lastly, he is aDirector Filatures & Tissages Jules TournierJules Tournier & fils, a living heritage company(Entreprise du Patrimoine Vivant) specialisingin spinning and weaving for major luxurybrands.

Véronique di Benedetto started out as anAccount Manager at IBM. In 1985, she becamea sales agent before being appointed SalesDirector with ECS, and then taking over theGroup’s international activities, and finallybecoming managing Director in 2009. Afterthe merger between Econocom and ECS, shewas appointed Deputy managing Director ofthe new Group, running operations in France.In 2015, she was appointed Vice-Chair France,responsible primarily for CSR strategy andstart-up supervision in various sectors,including education and culture. She was alsoappointed Vice Chairman of SyntecNumérique.

Bruno Grossi worked for over 20 years atAccenture, where he was partner, in chargeof the telecom and media sectors in Franceand in Benelux. Co-Chairman of Osiatisbetween 2010 and 2013, before its mergerwith Econocom group in September 2013, hewas its managing Director in charge ofday-to-day management until 20 October2020. He remains a Director of Econocomgroup.

Marie-Christine Levet is one of France’spioneering figures in the Internet world andhas over 25 years’ experience in the newtechnologies sector as both an entrepreneurand investor. She has run several FrenchInternet and media companies (Lycos,Club-Internet, Tests group, etc.). Leveraging herentrepreneurial experience, Marie-ChristineLevet switched over to the investment sector,taking part in the founding of Jaina Capital,one of France’s first investment fundsspecialising in seed funding. Convinced of theeducation sector’s need to undergotransformation, Marie-Christine Levet foundedEducapital, the first European investment funddevoted to the innovative education sector, inOctober 2017. She is also a Director of Maisonsdu Monde, SoLocal and AFP. Herentrepreneurial experience as both an investorand Director of pioneering companies in thedigital market as well as in digitaltransformation consulting is an asset insupporting Econocom group’s developmentstrategy.



Jean-Philippe Roesch began his career withsix years at Arthur Andersen. He joinedEconocom group at the end of 1989 as ChiefFinancial Officer for Econocom France. Afterheading various subsidiaries within theGroup, Jean-Philippe Roesch held a numberof roles (Company Secretary of Econocomgroup in 2001, Deputy managing Director in2004), culminating in his appointment asmanaging Director in 2006. He ceased toperform these duties at the end of 2016.From October 2018 to July 2019, he had asupport role for the Executive Committee.He is a member of the Supervisory Board ofLinkfluence SAS.

The Econocom Board of Directors declaresthat, to its knowledge, none of the Directorshave ever been convicted of fraud or subjectto any official or public indictment and/orsanction preventing him/her from acting asa member of the management orsupervisory body by any legal or supervisoryauthority, and that none of the Directorshave been prevented by a court of law fromserving as a member of the governing bodyand that, in this capacity, they have neverbeen involved in bankruptcy proceedings.


02group overviewresearch & development

Research & Development6.The Group is applying a dynamic of digitaltransformation by creating differentiatingsolutions to support its developmentstrategy and achieve its operationalexcellence objectives.

In 2020, R&D efforts were pursued incontinuity with the areas developed in prioryears with the aim of providing intensivesupport and assistance for any innovativesolutions produced by our customers.

R&D efforts focused particularly on theareas of data visualisation (DATAVIZ),decision support, developing integratedsolutions in the area of IoT, imagerecognition in real time, 5G microservicebilling and machine learning, applied toprocess automation.

Collaboration with the academic worldcontinued with training agreements,allowing our employees to specific trainingsessions at the Claude Bernard University inLyons in the areas of Cloud Computing andthe Interoperability of Information Systems.

administration) devoted to the networks(LAN, WAN) and to telecommunications(telephony operators).

Another research area focuses on theobjectives of operational excellence, thestudy of complex data for forecastingpurposes applied to the IT infrastructureand more particularly to our managedservices offers (supervision, operation,

In 2020, the Group launched an initiative tostrengthen the collaboration of its variousentities (Planet and satellites) aroundinnovative projects in order to federate allavailable expertise around promisingthemes for the Group’s business. In thiscontext, work was carried out on thevirtualisation of workstations and end-to-endmanagement of virtualised assets, as well asresearch and development on the use ofartificial intelligence and chatbots tooptimise user support.

Using these indicators and Econocom’sexpertise, we help our clients identify thelevers for improving performance and createaction plans to accelerate the digitaltransformation.

For some of its business, the Group isentitled to a research tax credit (Créditd’Impôt Recherche) in France. As a result, itis able to forge ahead with bold medium-and long-term projects that will offer asignificant advantage in terms of enablingthe Group to differentiate its technologicaloffering.


02 group overviewprincipal investments

Principal investments7.In addition to developing new products andsoftware tools, and recruiting new sales staffand engineers, Econocom group carries outexternal growth transactions in order toacquire specific skills, accelerate its growthand increase its profitability.

The Group’s main investments over the lastthree years are described below.

In 20187.1.The deals carried out in 2018 are as follows:

acquisitions in “Digital Services and•Solutions”

During the first quarter of 2018, the Groupacquired two companies to reinforce itsknow-how in digital transformation andcontinue its strategy to develop in valueadded services.

The Group acquired a 60% stake in Spanishcompany Altabox, a specialist in digitalmarketing services, in order to enrich thecustomer experience at points of sale. TheCompany’s innovative offering includes thedesign and deployment of digital signage,sensory and auditory marketing, and trafficand data analytics. This acquisition offersnumerous opportunities for synergies withthe Group’s other skills in the Retail sector,particularly those of the Caverin, Gigigo,Rayonnance, or Jade Solutions Satellites.With a strong portfolio of Spanishcustomers, the Company achieved aturnover of €9 million in 2017.

Insurance sector. The Company reportedrevenue of €44 million in 2017.

Furthermore, Econocom acquired 100% ofBDF, an Italian company specialising inmanaged services in the Banking &

In October 2018, the Group acquired,through Helis SAS, all of the shares ofUpstream and its subsidiary Simstream, aspecialist in engineering and integrationservices related to audio and videostreaming. Upstream reported revenue of€4.5 million in 2017.

In October 2018, the Group acquired 100%of Osones through Alter Way. Osones is aspecialist in private cloud solutions,infrastructure as a service, and containerorchestration systems. The Companyposted revenue of €1.5 million in 2017.

OTHER INTERESTS ACQUIRED AND INVESTMENTS

Aciernet: via its 90%-owned subsidiaryExaprobe, the Group signed an agreementwith the minority shareholders in July 2018providing for purchase of the remainingequity interest at a fixed price. The interestrate thus went to 100% at the level ofExaprobe, i.e. 90% at the level of Econocom.

ASP Serveur: the Group acquired theminority interest (20%) in October 2018,thereby increasing its interest to 100%.

Econocom Brazil: in the fourth quarter of2018, Econocom acquired the outstandingshares from the minority shareholder (i.e.7.15% of the share capital) thus increasing itsstake to 100%.

Caverin: Econocom group SE acquired allthe non-controlling interests (33.34% of theshare capital).


02group overviewadditional information

In 20197.2.OTHER INTERESTS ACQUIRED AND INVESTMENTS

Synertrade: the Group acquired the minoritystake (10%) in July 2019, thus raising its staketo 100%.

Gigigo: Econocom group SE acquired allthe non-controlling interests (30%) inJuly 2019.

Infeeny: during the first half, Econocomgroup SE acquired 9.66% of the company’sshare capital.

JTRS: Econocom group increased its stakein the company through the acquisition ofshares from a minority shareholder (5%).

Altabox: at end-2019 the Group exercised partof its options on 15% of the company’s sharecapital, raising its interest to 85%.

In 20207.3.The deals carried out in 2020 are as follows:

acquisitions in the Technology•Management and Financing activity

In September 2020, Econocom acquired theentire share capital of the French companyLes Abeilles, the French specialist in towingand rescuing in high seas.

OTHER INTERESTS ACQUIRED AND INVESTMENTS

During the year, Econocom bought outcertain non-controlling interests in itssubsidiaries:

Altabox: Econocom group increased itsstake in the company through theacquisition of the shares from a minorityshareholder, thus increasing its stake to80%.

Bizmatica: Econocom acquired the minoritystake through the exercise of its options,raising its interest to 100%.

Asystel Italia: Econocom group acquired theshares of a minority shareholder, increasingits stake in the company to 70%.

EnergyNet: at end-2020 the Group exercisedpart of its options on the remainder of thecompany’s share capital, raising its interest to100%.

Additional information8.Legal and arbitration 8.1.

proceedingsGovernmental, legal or arbitrationproceedings against the Group, pending orthreatened, are subject to provisionsestablished in accordance with IAS37, takinginto account all available relevantinformation on such proceedings.

any possible reimbursements) deemedlikely for all types of claims and litigation towhich the Group may be party as a result ofconducting its business.

The total consolidated amount of provisionsfor all of the Group’s disputes (see note 16 tothe consolidated financial statements)includes all outflows of resources (excluding

Major contracts8.2.In the course of its operations, the Groupsigns substantial contracts with its customers,suppliers, funders and other partners, some ofwhich are binding for several years. Theimportance of these parties is outlined inchapter 4, section 3, “Dependency Risks”.

02 group overview



03corporate social responsibility

Our approach 68

CSR stakes and mission 68The organisation 68Our roadmap 69

Actions and highlights 69

References and standards 69Labels and certifications 69Commitments to the SDG (Sustainable Development Goals) 70Major aims and achievements 71

Nurture our excellence through 1.responsible commitment 72

Position ourself as a committed 1.1.employer 72Conduct a demanding 1.2.environmental policy 82Be an ethical and responsible player1.3. 85

Support the new responsible 2.uses of our customers and users 88

Develop our offer of green and 2.1.responsible products and services 88Promote responsible digital 2.2.business and the circular economy 89Monitoring our consumption 2.3 92

Federate an ecosystem 3.to create shared value 94

Partnerships in the education 3.1.and university sector 94Become the partner of choice 3.2.for innovative companies and integrate them into our offers 98Develop our local roots3.3. 99

Key performance indicators4. 102


03 corporate social responsibilityour approach

Our approachCSR stakes and missionEnvironmental and societal stakes

Digital pollution generated by the internetseems invisible. However, each email, eachsearch or each video consumes energy andgenerates greenhouse gas emissions.Various studies quantified the impact fromdigital technology on a global scale, placingit between 2% and 4.3% of total CO2

emissions and between 5 and 10% of totalelectricity consumption, depending on thesources.

As a digital player, the Econocom groupmust take concrete action, and quickly!

This is why the Econocom Group makesresponsible digital technology and thefight against digital waste two majorfocus areas of its CSR strategy. We arealso one of the very first signatories of thePlanet'Care manifesto.

The Group also seeks to have a positivesocietal and social impact by promotingthe diversity of skills, by being moresocially supportive and developingevermore people-oriented ethics. Whilethe Covid crisis has revealed the urgency ofacting against the digital divide, thispositioning is more relevant than ever.

How do we set this in motion?

Responsibility is more than everencapsulated in Econocom’s DNA. In 2020,the Group strengthened most of itsflagship initiatives and launched new ones,both in France and internationally.

Useful digital technology at the core ofthe CSR mission

mission regarding social responsibility is:to provide our customers and their userswith effective and responsible digitalsolutions, generating a positive impact.

Econocom designs and develops digitaltechnology that is really useful for theend user. We believe that useful digitaltechnology is one of the essential keys notonly to fight against digital waste, but alsocontribute to the performance andcompetitiveness of companies. Econocom’s

This commitment to useful digitaltechnology is also reflected in philanthropyinitiatives to fight the digital divide. Therecycling or reuse of equipment, inpartnership with social and solidarity-basedeconomy structures, is also one of ourpriority projects. Of course, the Group alsostrives to optimise the energy efficiency ofits own digital infrastructures.

HR and environmental commitment

Finally, the Econocom group’s socialresponsibility cannot be envisaged withoutan appropriate HR strategy and aresponsible environmental policy.

The organisationEconocom’s CSR policy involves all Groupemployees and is implemented by adedicated organisational structure. TheCSR Department is headed by Véronique diBenedetto, Vice Chairwoman France. Thisdepartment presents the CSR policy to theBoard of Directors and other managementbodies.

The policy is managed by a CSR SteeringCommittee comprising 7 Directorsrepresenting the Group’s main functions. Itapproves the strategic priorities andobjectives of the CSR programme andensures that objectives are met.

A panel of CSR functional and geographicalcorrespondents has been created. Thesecorrespondents are part of the operationalteams of members of the CSR SteeringCommittee. They are responsible formeeting objectives in their respectivescopes. They are responsible for the


03corporate social responsibilityactions and highlights

operational implementation of the actionplans approved in Committees, and they arealso the ambassador for the policy with theirteams.

Our roadmapEconocom set up a new CSR strategy in2018. This ambitious and demanding roadmap includes all of the significant issuesidentified in the survey of internal andexternal Group stakeholders. It highlightsthe points which Econocom would like todevelop over the next few years.

NURTURE OUR EXCELLENCE THROUGH RESPONSIBLE COMMITMENT

position ourself as a committed employer;•

conduct a demanding environmental•policy;

be an ethical and responsible player.•

SUPPORT THE NEW RESPONSIBLE USES OF OUR CUSTOMERS AND USERS

promote useful and responsible digital•business and the circular economy.

boost responsible innovation in internal•and external collaborations.

FEDERATE AN ECOSYSTEM TO CREATE SHARED VALUE

support new uses linked to useful digital•business in the education sector, andGreen IT;

become the partner of choice for•innovative companies and integrate theminto our offers;

develop our local roots.•

Actions and highlightsReferences and standards

Since 2012, the Econocom group has joined•the United Nations Global Compact.Through this membership, Econocom iscommitted to respecting and promotingthe ten principles of the Global Compact.These principles concern: human rights,labour law, the environment and the fightagainst corruption;

Econocom was honoured with the Ecovadis•Silver medal for its CSR performance with ascore of 62/100 in 2020, up 4 pointscompared with 2019.

Labels and certificationsISO 9001 and ISO/CEI 27001 certifications•are managed locally in France, Morocco,Benelux, Spain and Italy;

Econocom uses the ISO 26000 standard to•ensure compliance with the guidelines interms of social responsibility.


03 corporate social responsibilityactions and highlights

Commitments to the SDG (Sustainable Development Goals)Econocom recognises the urgency for private and public sector players to convergetogether towards the 17 Sustainable Development Goals identified by the United Nations. Aspart of its commitment, Econocom has identified goals that fall under a prioritycommitment, active contribution, or participation. 11 Goals have been identified andincluded into the CSR policy.

PRIORITY COMMITMENTS:

goal no. 12: responsible consumption and•production;

goal no. 9: innovation and infrastructure;•

goal no. 4: access to quality education;•

goal no. 10: reduced inequalities;•

goal no. 17: partnerships for global goals.•

ACTIVE CONTRIBUTION:

goal no. 13: fight against climate change;•

goal no. 5: gender equality;•

goal no. 8: access to decent jobs.•

PARTICIPATION:

goal no. 3: access to health;•

goal no. 11: sustainable cities and•communities;

goal no. 7: use of renewable energies.•


03corporate social responsibilityactions and highlights

Major aims and achievements

Gender balance Solidarity

Achievement: creation and deployment ofan internal programme within theframework of our Services business line,“Econocom Digital Women” and signatureof the manifesto to provide retraining forwomen in the digital businesses.

Achievement: 88% of all our reconditionedIT equipment is processed by companieswhich are partners in the social andsolidarity economy (which every yearrepresents about 430,000 products).

Aim: the Econocom group aims toimprove women’s access to IT jobs by2022, to attract more female talent and toimprove their integration into theCompany.

Aim: the Econocom group aims to haveall its IT equipment processed andreconditioned by companies in the socialand solidarity economy by 2022.

Environment Circular economy

Achievement: as part of its commitmentto reducing IT waste, Econocom hasregistered a 18% reduction in theconsumption of IT equipment by itsemployees in 2020.

Aim: by 2022, the Econocom group aims tofurther reduce consumption throughoutits inform

Achievement: Rental, leasing and “as aservice” are key drivers of the circulareconomy. Econocom has key financialexpertise in these areas, for example viafinancing solutions “as a service” or viaoffers which enable companies to managetheir digital projects in real time andstrictly adjusted to usage.

Aim: Econocom is aiming to accelerate, by2022, the creation of unique financial andtechnological offerings which reduce theenvironmental IT footprint of its clients.


03 corporate social responsibilitynurture our excellence through responsible commitment

Nurture our excellence 1.through responsible commitmentEconocom’s CSR policy is focused on applying good practice within the Group, firstlythrough an HR policy focused on developing employee satisfaction, and then through itsdemanding environmental policy, and finally, by establishing itself as an ethical andresponsible player.

Position ourself as a committed employer1.1.From recruitment to professional well-being at work are included in HRdevelopment, the Group makes employee priorities to protect and develop the Group’ssatisfaction a top priority. They are the 9,240 employees as of 31 December 2020,Group’s main ambassadors. Health and with 78% in Services.

Breakdown of workforce* by business

31 Dec. 2020 31 Dec. 2019

Technology Management & Financing 495 526

Services 7,216 8,314

Products & Solutions 573 626

Holding and support functions 699 739

Other** 138

Total employees 9,121 10,205

Sales agents 119 118

Total 9,240 10,323Only companies that are more than 50%-owned are reported.*

Les Abeilles: sailors.**

Breakdown of workforce by geographical area

31 Dec. 2020 31 Dec. 2019

France 6,035 7,173

Benelux 699 725

Southern Europe 2,042 1,932

Northern & Eastern Europe/Americas 464 493

Total 9,240 10,323


03corporate social responsibilitynurture our excellence through responsible commitment

The strategy to refocus activities begun in 2019 led to the disposal of several companies,which resulted in a decrease of the workforce and a specialisation of key profiles.

Econocom’s Human Resources policy is designed to attract and retain talent, both essentialcontributors to the Group’s long-term performance.

HIRING AND ONBOARDING POLICY1.1.1.

Talent acquisition

The Group wants every employee to be able togrow in an exciting and rewarding workenvironment, by carrying out diversified andmeaningful assignments. This begins withputting the right skills in the right places, bymanaging hiring and mobility. Econocom hasdefined three priority areas of action to meetthe expectations of both current and futureemployees:

increase presence on social media. These•platforms give applicants and employees theopportunity to interact, and primarily targetyounger generations;

make good use of Group employees’•networks to hire people with more targetedprofiles who embrace Econocom’s corporateculture;

promote internal employee mobility:•

a new module was deployed in the secondquarter of 2020 and enables us via anemployee area, to:

refer potential candidates using the▶Group’s website or mobile app,

manage their career with a short▶procedure for applying to the Group’sjob offers,

share offers on social media.▶

In 2020, the Group hired 1,778 people inFrance.

Number of new hires by region in 2020

Number of newhires in 2020

Benelux 70

France

Planet• 909Exaprobe •and Infeeny 116

The Group’s other •brands 46

Spain 177

Italy 124

Other countries 336

1,778

Talent integration

New hires benefit from a personalisedonboarding programme aiming tointroduce fellow team members, gain abetter understanding of the Company’sorganisational structure and learn moreabout the business activity of theirdepartment.

To complete this programme, new hires takepart in a national onboarding seminar called“Welcome Day”. This day allows them to learnmore about Econocom’s organisation and itsvarious business lines. These Welcome Dayseminars are extremely popular, with a 100%satisfaction rate with participants.



Employees working at customer sites, on theother hand, attend Welcome Dates.Organised every quarter depending on theregion, Welcome Dates allow them todiscover the organisation and working oftheir local branch office and localstakeholders, as well as about nationalcommunication tools and the Group’s careerdevelopment programmes.

PROFESSIONAL 1.1.2.DEVELOPMENT

Training

Econocom group supports the careerdevelopment of its employees by providinga wide range of training options.

Econocom believes that training is a keyfactor in both employees’ professionaladvancement and the Group’s success. InFrance, 27,000 hours of training wereprovided in 2020.

The Group’s training programme offers twomain types of courses:

Percipio: the digital learning platform•accessible to all;

training actions that meet the specific•needs of the Group’s businesses andactivities.

To meet the training requests of allemployees and encourage them to engagein self-training, Econocom draws on thewealth of opportunities available throughdigital technology, and has redesigned itsdistance training offer.

In 2019, Econocom deployed an innovativedigital training offer using a SPOC format,which was renewed in 2020.

Nearly 115 people were signed up for trainingcourse on soft skills, project managementand digital culture.

Distribution of employees trained by business in France in 2020

Career management

Career management and professionaldevelopment of employees are primeconcerns at Econocom and part of astructured process to target specificinitiatives for different employee profiles.

Econocom’s Talent Reviews feature topmanagement from each business line, theCareer & Development team and theoperational HR team to discuss the businesschallenges which can be addressed by thehuman resources strategy. These reviews areconducted to prioritise individualdevelopment actions based on identity ofemployees and to ensure that HRprogrammes are in line with therequirements and expectations of eachbusiness line and with employee aspirations.

This system is fuelled by the careerdevelopment and training preferencesexpressed by employees during theprofessional interview. This interview allowsemployees to discuss their professionalcareer, to share their plans for careerdevelopment and employment (includinggeographical mobility plans) and to considerthe best way to achieve them.



The performance of employees, assessed aspart of the annual review, is also included inthis system to facilitate identification andindividual actions.

Internal digital transformation

Educating and supporting employees indigital technology and enabling them tothrive in a digital environment are the keychallenges for the Econocom Group. To dothis, various emblematic actions have beenlaunched in recent years:

The “Digital Passport”•

Econocom has introduced a digitalacculturation training programme calledthe “digital passport”. The goal is to improveemployees’ knowledge and awareness ofthe impact of digital technology on theirbusiness, and help them learn to use thenew tools available to them so that digitalsolutions can be a true source ofprofessional development. Since 2017,almost 500 employees in France havesigned up on a voluntary basis to obtain thedigital passport. The last training sessionwas set up in 2019, training almost 90 morepeople.

Workspace layout •

In 2020, digital transformation also involvedadapting workspaces. To this end,Econocom has redesigned the layout of itsoffices to create spaces where people cancome together to share ideas underthe watchwords of co-creation andcollaboration.

done to involve employees in digitaltransformation in their day-to-day workincluding through their work spaces. Nearly3,000 employees benefit from workingconditions adapted to changes in theirbusiness and work methods.

Major event of the year: the creation of theHub, the Group’s new flagship building, inPuteaux, near Paris (see the following twoboxes). Beyond this site, the Group’s otherfacilities are equipped with digital solutions.Screens in transit areas to book a meetingroom or find their way around, webconferencing solutions, etc.: everything is

The Hub, a showcase for digitaltransformation

The Hub is Econocom’s new flagshipbuilding in France. Entirely overhauled in2020, it was inaugurated in early 2021 andaccommodates around 500 Groupemployees. The spaces are designed to meetthe new standards and challenges of digitaltransformation, at a time when digitaltechnology is playing an increasingly centralrole with the development of “remote” andteleworking. Connected collaborative spaces,offices in flex mode, video meeting rooms,large auditorium, specific spaces dedicatedto training, etc. The Hub is above all a placeto share ideas, discuss, create, learn andwork, together. This meeting ground isgenuinely open to the outside world. On theground floor, the Digital Hub is specificallydedicated to customers and partners. Madeup of four different spaces (experience,lounge, ideas, trend), it has a role: provide animmersive, friendly and relaxed experience,to enhance loyalty.

The "Digital Bars" •

A “Digital Bar” has already been installed atthe Hub, the Group’s main site. The mainsites will gradually be equipped with thisservice. These physical spaces provide aforum for employees and users to getanswers to their questions about digitaltools, along with personalised guidance.Technical assistance is also available tohelp employees and users solve IT anddigital issues.



A single platform for everyone: Onelink•

In early 2018, a new in-house tool calledOneLink was launched to standardise theGroup’s digital practices and resources.OneLink combines all IT solutions anddigital communication systems (intranet,Microsoft Office 365, newsletter, socialmedia, CRM, HRIS, etc.) so that employeescan access all information, documents andcompany news on a single platform.

Meal vouchers in digital format•

At the end of 2020, a new meal voucherservice was introduced, replacing papervouchers with a card developed by Swile.The digitisation of these vouchers allows toreduce the carbon footprint by eliminatingpaper and, makes it easier for employeesto use. This digital card allows contactlesspayment, top-up, donations, money pools,mobile payment and tracking, geolocationand other benefits for ever greaterconvenience and connectivity.

EMPLOYEE SATISFACTION1.1.3.

Econocom operates in a highly competitivemarket and is confronted with labour issuesinherent to the digital sector, including highturnover and downtime between contracts.Employee satisfaction is therefore a keyperformance criteria.

Share engagement programme

Econocom is committed to improving theQuality of Life at Work through a uniqueprogramme called SHARE, launched inFrance in 2012. Thanks to this programmeour employees can more easily reconciletheir professional and private lives and findtheir balance.

The Share program is based on fourmechanisms:

Easy life: services to make your daily life•easier

Concierge services, personal services,childcare, tutoring and sports coaching,etc. Econocom employees' daily lives;

We care we cure: measures to preserve•well-being and health at work

We care we cure offers preventive actionsand health prevention campaigns (nutrition,fight against tobacco, vaccination, etc.);

Flexi work: solutions to better organise•working time

The Flexi’work system allows staff to workfrom home one or two days a week, therebyensuring a work-life balance. In theexceptional context of 2020, Econocom wasable to adapt and set up a permanentteleworking system for many of itsemployees;

Share solidarity: actions for solidarity-•based initiatives

Employees can get involved alongsideEconocom with Share Solidarity and itscollective and solidarity-based actions suchas sports challenges, rounding-up atcheck-out, book and clothing collections, etc.Econocom also supports solidarity-basedprojects supported by our employees at theirown initiative.



Quality of life at work is at the of the Paris Hub With a view to improving the quality of life atwork. The Paris Hub, Econocom’s new flagship building, provides its employees with manyrelaxation and outdoor areas that promote a more friendly and healthy atmosphere withinour teams. A concierge service (offering multiple personal services), a connected car park,a gym and a high-quality restaurant are available to employees.

DIVERSITY POLICY1.1.4.

Diversity contributes to openness andcollective performance. Econocom hasalways based recruitment and careerdevelopment on the skills of each individual,and condemns any form of discrimination.

Gender parity

Econocom closely monitors gender paritywithin its workforce and encourageswomen to join this highly male-dominatedindustry via, for example, recruitment orengagements in favour of gender equality,especially in the digital sector.

between women and men. Econocom isparticularly attentive to ensuring that menand women enjoy the same careeropportunities, especially in access totraining, professional development andmanagement positions.

The Group ensures that fair treatment isapplied in terms of representation andpromotion to strengthen the balance

Progress in gender parity cannot be madewithout raising the awareness ofmanagement and involving men in theprocess. The Group has increased thenumber of women on its Board of Directors.In 2017, three out of the four new Directorsappointed were women. One third of it arenow women, in line with the target set bythe Group.

The Econocom gender equality index is 78/100 for Planet companies in France. Thisindex is based on five indicators:

gender pay gap;1.

gap in rates of individual salary2.increases between women and men;

gap in promotion rates between women3.and men;

percentage of employees returning4.from paid maternity leave who receive asalary increase upon their return;

number of the least represented gender5.among the ten highest paid employees.



Gender breakdown in France in 2020 (excluding Satellites)

France Supportfunctions

Products& Solutions Services

TechnologyManagement

& FinancingTotal

Women 39 58 367 56 520

Men 14 38 2,283 19 2,354

Non-managers 53 96 2,650 75 2,874

Women 134 51 311 64 560

Men 108 50 1,618 63 1,839

Executives 242 101 1,929 127 2,399

Total 295 197 4,579 202 5,273

Econocom Digital Women (Femmes du Digital Econocom): an internal programme to encourage women in the IT sector

In June 2019, the Econocom Digital Womenprogramme was launched under the aegisof the Services activity.

Aware of the added value that genderdiversity gives to an organisation, Econocomwould like to encourage the presence ofwomen in its activities and make digitalsectors, where women are under-represented,more attractive. The Group would thus like totake on a major challenge: to make the ITsector more female.

This ambitious programme set three majorobjectives:

to attract and recruit more women in the•workforce through retraining;

to promote and showcase the skill and•expertise of employees;

to raise awareness among young girls•about digital careers.

To meet these challenges, the programmeoffers various actions and numerous eventstailored to each theme. To offer dedicatedand specific support, the programme is led byan ambassador at each Econocom site, thusresponding to the specificities of each region.

Attract and recruit through retrainingwith the Manifesto:

#ReconversionFemmesNumérique

The recruitment teams and the entireEconocom Management are already veryactive in finding women in the conventionalsectors. Accordingly, The Femmes du Digitalprogramme was focused on retraining.

By signing the Reconversion FemmesNumérique Manifesto launched by SyntecNumérique, Econocom made thecommitment to ensure access to digital jobsfor women.

We are committed to extending our•recruitment criteria – particularly technicalpositions – to take into account potential,cross-functional skills, the situation and thetraining path as a whole, whether initial orcontinuing, because we are convinced thattechnical skills can be acquired throughoutlife.



We are committed to promoting career•paths of all types in our recruitmentprocesses because they add value andexperience to our organizations.

We are committed to recruiting people of all•ages because what really matters to us ismotivation, appetite and the ability to adaptand learn.

We are committed to implementing•supporting actions and programmes toensure the onboarding of digital retrainingtalents within the Company because theyare assets for our success.

We are committed to supporting internal•mobility by putting in place the resourcesand training necessary to ensurecompelling individual career paths.

We are committed to training our•employees in practices that promoteinclusion and gender equality, a necessarycondition to change our ways of thinkingand working together.

Econocom, a founding member of the Femmes@Numérique foundation

To reverse the trend and encourage paritywithin digital channels, Econocom is one ofthe founding members of theFemmes@Numérique foundation createdin 2018. The purpose of this foundation is tofinance the actions undertaken by theFemmes@Numérique collective body toenable them to move to the necessaryscale throughout the country and tomassively raise awareness among thegeneral and private public organisations,public authorities, players in the area oftraining and education. Digital women alsowork with the foundation.

Econocom Italia, partner of the “Women & Technologies” association

The aim of the association (womentech.eu) isto associate the brand with institutionalinitiatives, to reflect internally and externallythe commitment to support diversity,inclusion and the development of womenleadership as well as social innovationthrough research and the spread of newtechnologies and therefore new professions.

Econocom UK, member of “100 Women in Finance”

To foster gender equality in the financeindustry, Econocom partners with “100Women in Finance”, a global network offinance professionals who work together toempower women at every stage of theircareers.

Anti-discrimination policy

Professional integration of young people

For its Services business in France,Econocom group clearly encourages hiringyoung graduates and final-year students.Econocom plays an important role in trainingby supporting young workers every year ininternships and work-study programmes.These undergraduate and master’s-leveltraining programmes are monitored bytutors in technical and functional jobs. AsEconocom’s Services business has thehighest recruitment needs, it has establishedspecial partnerships with more than40 schools.

As part of this commitment to opening thebusiness world to young people, severalyears ago Econocom formed a partnershipwith Journée Nationale des Jeunes (JNDJ).Once a year, the Group opens its doors tomiddle and/or secondary school studentsfrom underprivileged backgrounds so thatthey can learn more about the businessworld and the solutions the Group providesfor its customers.



The Group works to get its employeesinvolved in its diversity policy and stronglyencourages them to participate in localawareness and integration initiatives.Through the Group’s partnership with theorganisation “100 000 Entrepreneurs” andits network of partner establishments,several managers speak at secondaryschools all over France to give studentsgreater insight into entrepreneurship,intrapreneurship and the business world ingeneral. In 2020 these interventions tookplace in digital format, which was aninnovation, and made it possible to reachclasses throughout the country.

Taking its policy to support the professionalintegration a step further, Econocomsigned a generation contract for itsdifferent subsidiaries in France. Thiscontract has three main goals:

facilitate the long-term integration of•young people into the workforce byproviding access to a permanent workcontract;

encourage hiring senior workers and•keeping them in the workforce;

ensure the transfer of skills and expertise.•

This agreement also aims to createsynergies among the different generationsof employees that make up the organisationand bring their expertise, a source ofstrength and innovative force. For thisreason, the generation contract not onlysupports younger and older workers butalso the generations in between, by givingthem a key role in working with youngpeople, transferring skills and training.

Breakdown of work-study students andinterns in the Planet companies in 2020

Supporting employees aged over 45

Employees in France aged 45 and over canorganise a career development meeting todiscuss their situation and professionaldevelopment plans. They are also given theoption of having a skills assessmentperformed by an authorised independentorganisation. In addition, these employeesenjoy priority access to training programmesand support from the Human ResourcesDepartment to guide them through theirinternal mobility project.

Employees aged over 55 also benefit fromadditional measures. They are granted onepaid day of absence every two years to havea health check-up. They can also opt forflexible working time arrangements such aspart-time work, adjusted hours andteleworking. In addition, the Group givesthem the opportunity to pass on theirexpertise in a tutoring programme involvingyounger Econocom employees.



Encourage the hiring of those who have retrained

The POEI scheme (Operational Preparationfor Individual Employment) trains newemployees. The POEI scheme thus closesthe gap between the skills required for thejob and the skills the candidate has. Itfinances all or part of the costs of internal orexternal training. It allows the unemployedto retrain in IT skills.

In 2018 only 10 people (i.e. slightly less than1% of new recruits) were recruited using thismethod. In 2020 we significantly developedthis source of recruits, recruiting66 employees on permanent and temporarycontracts and on work/study placements viathe POEI scheme, representing 8% of the909 new staff hired in 2020 for the ServicesFrance entity.

For these 66 recruitments:

15 women, i.e. 23%;•

five engineers, i.e. 7.5%;•

three disabled people, i.e. 4.5%;•

average age 29.5;•

86% permanent contracts;•

the rate at the end of the trial period was•lower (7.5%) to that registered for all newrecruits (8.8%).

People with disabilities

Econocom has committed to a proactiveapproach to supporting people withdisabilities. After the partnershipagreement signed in 2014 with theAssociation pour la Gestion du Fonds pourl’Insertion Professionnelle des PersonnesHandicapées (AGEFIPH), Econocom hasreached a new level by signing anagreement in 2018 covering all of theGroup’s activities in France. With thisagreement, Econocom is committed toincreasing its employment rate for peoplewith disabilities, by implementing anemployment policy which aims to meetfour major objectives:

recruit, train and integrate people with•disabilities;

keep disabled employees engaged•through appropriate career managementand improvement in working conditions;

raise disability awareness among all internal•players and employees of Econocom;

develop subcontracting with institutions•in the protected environment.

The Mission Handicap is very committedinternally to raise awareness among allemployees to disability, especially during theEuropean Week for the Employment ofDisabled People (SEEPH) and in the context ofmanagement training and recruitment teams.It is also present at recruiting fairs and schoolforums and participates in the CommissionHandicap du Syntec Numérique. Additionally,Econocom has introduced several awarenessinitiatives aimed at all staff members, such ase-learning modules showing real-lifesituations of people with disabilities in theworkplace, and a special intranet site.



Conduct a demanding environmental policy1.2.Global warming is a major issue for humanity on which digital players have an increasinglysignificant impact and must play a role at their own level. Econocom chose to address thisunprecedented environmental challenge by implementing a structured and ambitiouspolicy. Indeed, aware of the challenges related to the environmental impact of digitaltechnology, the Econocom group was one of the first signatories of the Planet Tech’Caremanifesto. Through this manifesto, Econocom is committed to measuring and reducing itscarbon footprint, extending the lifespan of its digital products and services, anddisseminating and promoting these initiatives among its partners.

RETHINKING TRAVEL 1.2.1.TO REDUCE EMISSIONS

The vehicle fleet is the Group’s largestsource of CO2 emissions. The aim is tomaintain the average level of emissions of at110 g of CO2/km, under the NEDC standard,equivalent to 135 g of CO2/km under thelatest WLTP standard in force, for all types ofvehicles combined. Econocom has alsoincorporated electric vehicles into its fleet.Employees in the Paris region andVilleurbanne can reserve electric vehiclesthat they can use for short-distancebusiness travel, especially between sites.

With all these initiatives, the Group reducedthe CO2 emissions produced by its vehiclefleet for an average level of 99 g CO2/km in2019, which is equal to 3,600 tonnes of CO2

emissions for the entire fleet.

The Group favours low-emission transportmethods and encourages its employees touse the train when possible. For travel byplane, Econocom uses companies whichlook to reduce their environmentalfootprint.

ANALYSE AND REDUCE1.2.2.

In 2020, the Econocom Group confirmed itsmaturity on issues related to theenvironmental impact of its informationsystems. Today, the Group has a specificGreen IT governance.

Watt's Green, an essential tool to reducethe impact

The share of the digital sector representsalmost 60% of the electricity item of theEconocom group. To reduce this bill andimprove its energy efficiency, the Groupdecided in 2017 to analyse theenvironmental impact of its informationsystem with Watt’s Green, (see box). Thanksto this system, Econocom halved theenvironmental impact of its digitaltechnology between 2017 and 2020.

In 2020, Econocom continued its optimisationpolicy, thanks to the introduction of therecommendations from last year and theGreen IT good practices.

In this financial year, digital energyconsumption fell for the fourth consecutiveyear, down 18% compared to 2019. Thedigital environmental footprint was alsoreduced, with a significant reduction inCO2 emissions (approximately 90 CO2tsaved this year). These positive results aremainly due to the following actions:

rationalisation of equipment and energy•consumption in data centres;



constant increase in the acquisition of IT•equipment in the “green” energy class;

streamlining of equipment to better•reflect the number of active employeesand uses;

reuse of existing equipment rather than•new purchases.

Thanks to Watt's Green, Econocom alsomanaged to reduce all the families ofequipment under review:

employee (desktop, laptop, screen, mobile,•etc.) -8%;

collaborative (multi-function, meeting•room equipment, etc.) -9%;

infrastructure (server, network equipment,•etc.) -18%.

Watt's Green walkthrough

Watt's Green is a tool developed byEconocom to measure the energyconsumption of equipment (in KWh) and itsCO2 equivalence. To conduct the analyse onits information system, Econocom followedseveral steps:

Step 1: inventory of information related to•data centres, workstations, screens andmobile equipment, meeting rooms, printing,infrastructure (servers, network, etc.);

Step 2: calculation of key indicators after•integration of information. Four indicators aremonitored: annual electricity consumption,the weight of emissions in CO2 equivalent,the annual cost of electricity consumed, theWEEE (Waste Electrical and ElectronicEquipment) weight of the global fleet;

Step 3: the aim is to analyse areas for•improvement and to note the effectsresulting from the reduction of energy andenvironmental impacts.

A Life Cycle study assessment in additionto Watt's Green

In 2020, Econocom completed its Watt'sGreen analysis by applying a simplified LCAto the equipment in its digital scope. Thismethod makes it possible to assess theenvironmental impacts of digital equipmentduring the various stages of the life cycle(manufacturing, use and end of cycle). Theimpact indicators under review are asfollows:

GHG emissions;•

primary energy consumption;•

depletion of natural resources;•

water consumption.•

Ambitions for the future

For 2021, Econocom will continue its projectaround the following areas: continuingactions to reduce the environmental impactof its digital technology, integration of newscopes in the current study (other Groupbrands and international subsidiaries) andmeasurement of the impact of new ISenvironments (e.g. cloud, collaborative tool,website, etc.). The aim will be to startintroducing an ecodesign approach fordigital services.

REUSE OF EQUIPMENT 1.2.3.TO EXTEND THEIR USEFUL LIFE

As part of its Technology Management &Financing business (TMF), Econocommanages the return of its Waste Electricaland Electronic Equipment (WEEE). TheGroup records 430,000 product returns ayear, half of which are specifically in France.Econocom encourages the reuse of all itsproducts to limit the environmental impactcaused by scrapping or incinerating, as forexample, some components that containheavy metals.

Econocom supports the use of social andsolidarity economy, which reconciles circularand solidarity economies for thereconditioning of its WEEE.



WASTE PROCESSING 1.2.4.AND RECYCLING WITH SOCIALLY SUPPORTIVE STRUCTURES

In order to process and recycle 430,000 piecesof WEEE every year (computers, screens,servers, tablets, smartphones etc.), Econocomuses Ateliers sans Frontières (ASF) and twospecialist companies, ATF Gaia and Recyclea,which combine operations in circular andsupportive economies.

Partnership with ATF Gaia

ATF Gaia gives businesses the means to bepart of a more inclusive economy. On theone hand, by accompanying them in theircompliance for the management of WEEEand on the other hand by allowing them tocontribute more directly to the integrationof people with disabilities through work. Bysorting as closely as possible to thecollection points in its approved centres, ATFconsiderably limits unnecessary transport,optimising the carbon footprint as soon asthe equipment is taken over. After recovery,sorting and survey, the equipment items aredirected to the ATF repackaging centres orto the nearest dismantling and destructionsites. The Company also deletes data andpreserves the anonymity of the equipmentby performing a certified deletion, thusreducing the risks related to data securityand guaranteeing compliance with theGDPR. ATF also provides Econocom acomplete report, from the collection to theissue of the destruction certificate incompliance with the WEEE directive.

Partnership with Ateliers Sans Frontières

survey, audit, test, certified data erasure,mastering and dismantling task. Our goal isto give priority to a new usage cycle to thelargest possible number of products byreconditioning them. Today, 95% ofEconocom’s equipment sent to AteliersSans Frontières is given a second life.Ateliers Sans Frontières (ASF) is anintegration project, which welcomes over 110young and vulnerable young people a year, tohelp them build their life project, regain theirdignity and bring them to a stable personaland professional situation. ASF promotesintegration through solidarity activities with astrong social or environmental impact(recycling, circular economy, donation ofupgraded equipment) that give meaning tothe work done by employees and helpmotivate them. In 2017, ASF became one ofEconocom’s major partners, to whom weentrust approximately 30% of our Frenchvolumes to be processed. The association isalso recognised as an exemplary player bypublic authorities: in September 2019,Emmanuel Macon and Muriel Pénicaud, thenMinister of Labour, chose to present the PacteAmbition IAE (Inclusion through EconomicActivity) during a visit to an ASF workshop.

Since 2012, Econocom also collaborates withAteliers Sans Frontières, an entity of the Aresgroup specialising in the management ofWEEE (Waste Electrical and ElectronicEquipment) for reuse and recycling around

Since the start of the relationship betweenASF and Econocom, their activity hasregistered continuous growth in volume andregular improvement in expertise in aclimate of benevolent cooperation andmutual personal growth. As part of its CSRpolicy, Econocom has also extended itscollaboration with the association,entrusting it with the preparation ofcomputer donations. Econocom and ASFcurrently process 60,000 devices per yearwith a team of 15 people. Since the operationstarted, about a hundred of them havefound a job thanks to this activity.



A leading role in the refurbishmentmarket

This effective collaboration with ASF, andalso with ATF Gaia and Recyclea, enablesEconocom to play a leading role on thereconditioned digital equipment market.Over the last few years, this has becomeconsiderably more structured andprofessional, thanks to the introduction ofmore rigorous regulation, growth in largee-commerce platforms (FNAC, Cdiscount,Veepee etc.) and specialist players(Backmarket, Recommerce, etc.), andabove all the popularity with consumers. Itprovides the opportunity to accesstechnologies or brands which, new, wouldbe too expensive, it presents newpossibilities in terms of usage orequipment, and there are alsoenvironmental motivations. For all thesereasons, more and more French people areattracted to the possibility of buyingproducts from previous generations, oftenformerly owned by professionals and inperfect working order, for a fraction of theoriginal price. This is why demand isextremely high. Econocom and its partnersalso offer this know-how to businesses,which also have to manage the end of theirequipment assets’ lifespan. Thanks to theprocesses put in place and the socialcommitment of its partners, Econocomcontributes in this way to the CSR aims ofits clients, ensuring that they respectenvironmental and safety regulations, aswell as the complete traceability of theprocessing and final destination of theequipment.

Be an ethical 1.3.and responsible player

protection of the environment. Theaffirmation of these values, underpinned bythe Corporate Social Responsibility policy,shows how the Group wants to continue tobe a responsible, honest company,embodying and promoting these valueswithin its ecosystem.

Signatory since 2012 of the United NationsGlobal Compact, the Econocom groupcommits to respecting and promoting the10 fundamental values linked to humanrights, the fight against corruption and the

THE ETHICS COMMITTEE1.3.1.

In order to strengthen its ambition tooperate as a responsible and ethical playerin the economy, the Econocom groupappointed an Ethics Committee in 2019.This Committee is made up of four internalGroup stakeholders, chosen according totheir experience and additional expertise inethical issues. It meets several times a yearand oversees the Group’s anti-corruptioncompliance programme. The EthicsCommittee ensures, among other things,the mapping of corruption risks, theprocessing and monitoring of the reportsreceived under the whistleblowing systemand the proper appropriation of the ethicalprinciples by employees.

As part of its ethical commitment, theEconocom group is currently carrying outcompliance work, in particular with theSapin II law, and within a wider context, toincrease transparency in the conduct of itsbusiness.

In 2020 the Group published its Code ofBusiness Conduct, which addresses,among other things, the fight againstcorruption and influence peddling androlled out its ethics whistleblowing system.Training in the form of e-learning coursesfor all employees on compliance andanti-corruption has also been rolled out.These courses will be supplemented byspecific actions for the identified groups ofemployees. All these actions reinforce theGroup’s extensive set of procedures andcontrols, thereby ensuring transparencyand ethics.



THE CODE OF BUSINESS 1.3.2.CONDUCT

Econocom wished to federate all Groupemployees around a Code of BusinessConduct. This Code of Conduct, produced incollaboration with unions, is based on thecorruption risk map drawn up by Econocomaccording to the principles set out by theSapin II law on transparency, the fightagainst corruption and the modernisation ofthe economy. The principles enshrined in thisCode are intangible signposts set out toguide the actions of all Group employees.Employees must uphold its principles ofintegrity, respect, compliance, moralleadership, fairness and accountability.

WHISTLE BLOWING 1.3.3.MECHANISM

Econocom has rolled out, across the Group, amechanism for whistle blowing through anexternal provider, meeting the requirementsof the Sapin II law and other Europeanregulations. This mechanism is an externalinternet platform which any internal orexternal stakeholder has access to. Itguarantees the protection of whistle blowersand monitoring of how reports areprocessed.

RESPECT FOR HUMAN 1.3.4.RIGHTS

resources practices to meet particularly highstandards.

The Group operates for the most part inWestern European countries, where labourlaws and regulations are stricter thanrequired by human rights standards. TheGroup has defined its HR standards in linewith these regulations and applies them inall other countries where it is active.Econocom’s staff is essentially made up ofskilled personnel who expect human

For these reasons, the Group’s human rightsrisks for the most part involve its suppliersand sub-contractors. In keeping with itspurchasing practices, Econocom asks its tier-1suppliers to comply with its own ethical andlabour standards. The Group also requires itssuppliers to comply with internationalstandards such as the United Nations GlobalCompact and International LabourOrganization fundamental conventions.

Responsible purchasing

Lasting cooperation between a companyand its suppliers contributes to drivingperformance for all parties. In 2015,Econocom group decided to structure itsresponsible purchasing policy to establishtrust-based relationships with its suppliersby encouraging them to implement a CSRprogramme. The Group has thus establisheda Purchasing charter between its suppliersand Econocom based on the ten principlesof the United Nations Global Compact. It issent to all suppliers, who are required tosign and return it, thus confirming that ithas been taken into account and applied.

Calls for tenders or consultations withsuppliers include social or environmentalcriteria. The relevant purchasing segments are:

interim;•

intellectual services;•

land transport of goods;•

purchasing second-hand equipment;•

equipment recycling.•

In addition, the Purchasing Department alsorelies on the “GESAT” network.



Tender offers for the top two categories ofpurchases (mainly outsourced services) nowfactor in supplier selection criteria (socialand/or environmental). Econocom championsthe idea that CSR should above all be basedon dialogue with its stakeholders and onpooling strengths and resources. That is howthe Group and its stakeholders can makethe best contribution to sustainabledevelopment.

As such, Econocom subsequently renewedits CSR charter and strengthened thisapproach by sending a CSR self-assessmentquestionnaire to a few strategic suppliers.This form aims to quantify the results of itspartners from a social, environmental,market behaviour, regional and governanceperspective.

In addition, Econocom also uses work-basedassistance institutions and services (ESAT) tohelp people with disabilities in their socialand professional inclusion.

GENERAL DATA PROTECTION 1.3.5.REGULATION (GDPR)

European law on General Data ProtectionRegulation no. 2016/679 of 27 April 2016(GDPR), as well as all the national lawsenacted as a consequence, and which maybe applicable.

The Econocom group is keen to protect theprivate life and data of its employees, clientsand partners and in this respect ensures therespect of the applicable personal dataprotection law, and in particular the

In recent years, Econocom has implementedthe following measures:

appointment of a DPO (Data Protection•Officer) at the Group level;

drawing up of an internal Charter serving•as a framework for the processing of databy Group entities.;

informing co-workers of how their data is•used and raising their awareness aboutdata protection regulation;

updating the IT Charter in line with•regulations;

drawing up of a confidentiality policy for•the Econocom group corporate site;

strengthening of security measures at•the Group IT level.

These measures are consistent withthe steps to make Econocom group complywith applicable regulation, and they showthe daily commitment both by the Groupand by each Econocom group entity to aresponsible use of personal data.


03 corporate social responsibilitysupport the new responsible uses of our customers and users

Support the new responsible 2.uses of our customers and usersAware of the challenges related to the in digital transformation, the Group doesenvironmental impact of digital technology, not seek to promote digital technologiesthe Econocom group is innovating to just for the sake of digital technologies. Bystrengthen the green aspect of its offerings, proposing an approach aimed firstly ateven creating a specific business unit meeting the needs of users, it contributesdedicated to energy efficiency. As an expert to the fight against digital waste.

Develop our offer of green and responsible 2.1.products and servicesThe Econocom Group’s Green&Energy entityis divided into two complementary areas:the GreenIT offer and the Green& Energyoffer. Each area has its own specificities andoffers customers the opportunity togenerate savings by working on their CSR.

REINFORCE THE GREEN 2.1.1.AND RESPONSIBLE DIMENSION IN OUR NEW AND EXISTING OFFERS

Econocom wishes to natively boost theresponsible component in 100% of its newoffers as well as in its existing offers. The ideais to create new generation support offersfulfilling new uses (autonomy, userexperience, etc.) and the need for costcontrol requested by the DSI. Econocom istherefore trying to provide its clients withsolutions for transforming the workenvironment (physical and digital) andassociated infrastructure to increase usersatisfaction and productivity whilereconciling the responsible dimension in itsportfolio of offers.

DEVELOPMENT 2.1.2.OF THE GREEN&ENERGY OFFER

sustainably controlling their energyconsumption and securing their energypurchases and comply with the regulationapplicable to their industry.

Companies and local authorities faceidentical environmental challenges: limitingtheir carbon footprint, reducing and

Through its Green&Energy Department,Econocom meets these challenges byproviding a global solution ranging fromseeking out sources of energy savings tothe execution of projects and their funding.

The support provided by Econocom’sGreen&Energy entity aims to accelerate theenergy transition of its customers to ensurethey remain competitive and the growth ofgreen businesses.

Smart Lighting, one of the areasof intervention of Econocom’sGreen&Energy entity

As part of its financing activity, EconocomGreen&Energy offers its customers theopportunity to rethink their lighting systemto move towards a more energy-efficientand environmentally friendly technology.Following an on-site energy audit, the entityoffers a new fitting and carries out the work.The overall cost of the project will beincluded in a financing solution with animmediate return on investment and takinginto account the Energy Savings Certificates.


03corporate social responsibilitysupport the new responsible uses of our customers and users

Accordingly, customers have moreenvironmentally friendly installation,enabling them to reduce their electricityconsumption. The system also improvesvisual comfort and enhances the well-beingof building occupants.

Promote responsible 2.2.digital business and the circular economyEconocom wants to offer effective andresponsible solutions to generate positiveimpact for its customers and their users,without promoting digital for digital at anycost. As part of this approach of socialresponsibility, the fight against digital wasteis one of the stakes that Econocom has setfor itself.

A STRONG COMMITMENT 2.2.1.TO RESPONSIBLE IT

Since November 2019, Econocom has been amember of the “Digital and Environment”working party managed by SyntecNumérique and bringing together severalcompanies in the sector who want todevelop in responsible IT issues. The aim ofthis working party is to share good practicein relation to responsible IT initiatives inmember companies, in order to improvehow the entire sector deals with theseissues. This project is designed to unitedigital players around three commitments:

to recognise that climate change is a major•issue for humanity, that IT companies havean impact and must take action;

to mobilise in order to contribute, at their•level, to the COP21 target of limiting globalwarming to 2 degrees;

to offer training in responsible and•ecologically efficient digital business.

Watt's Green, to analyse and measurethe impact of digital technology

Watt’s Green, Responsible IT solutions andadvice, analyses energy consumption andsuggests concrete measures to optimiseenergy spending.

The objective of Watt’s Green is:

to estimate the energy consumption of•digital equipment;

to implement good practices plans;•

to measure the actions implemented to•reduce the environmental footprint.

Econocom developed Watt’s Green, a singlecentre of expertise and four packagedservices for managing responsible IT energyprojects:

Watt’s Green Flash: audit of the energy•consumption of Information Systemequipment;

Watt’s Green Dynamic: dynamic•management of users’ workstations;

Watt’s Green Datacentre: audit of the energy•consumption of datacenters;

Watt’s Green CSR: supporting•communication and CSR strategy inResponsible IT.

ECONOCOM SIGNATORY 2.2.2.TO THE PLANET TECH’CARE MANIFESTO

In October 2020, as part of its commitmentto responsible digital technology, Econocom,the leading general digital contractor inEurope, signed the Planet Tech’Caremanifesto, launched by Syntec Numériqueunder the leadership of Véronique Torner,co-founder of Alter Way, a subsidiary ofEconocom, which is also a signatory to themanifesto.



It is estimated that digital technologyemitted around 4% of global greenhousegases in 2019. Its energy consumption isgrowing by 9% per year, split at 55% ondigital use and 45% on equipmentproduction. Digital sobriety must now be apriority.

Unveiled at the Digital and Environmentconference, this initiative aims to supportcompanies involved in including digitaltechnology in their environmental strategyand support training players on digitalbusiness upskilling.

The Planet Tech’Care manifesto resonateswith actions already undertaken by theEconocom group for Responsible DigitalServices.

By signing the Planet Tech’Care manifesto,Econocom is committed to:

measuring and reducing the•environmental impacts of its digitalproducts and services and extend theirlifespan;

raising awareness among its stakeholders•so that all players in the digital ecosystemare able to contribute to reducing theirimpact on their areas of responsibility.

ECONOCOM TOOK PART 2.2.3.IN THE #DIGIWORLDCOMMISSIONS: DIGITAL AND ECOLOGICAL TRANSITION ORGANISED BY IDATE

As part of the commitments above,Econocom works alongside othercompanies and partners to assess theimpact of digital technology on theenvironment and raise awareness among itsecosystem on the solutions to beimplemented. This is how we participated inthe drafting of a white paper, under theaegis of the Idate think tank. This book,“Digital and ecological transition”, waspublished last December, on the occasion ofthe Digiworld Summit.

Of all the studies recently carried out on thesubject, it is one of the few to address theoverall issue. In other words, measuringboth the carbon footprint of digitaltechnology and its role in the ecologicaltransition.

This study was carried out by a commissionmade up of experts from companies such asEconocom, BNP Paribas, Engie and Orange.Here is a summary that you can downloadfrom the Idate website.

https://en.idate.org/product/digital-tech-and-the-green-transition/

MORE RESPONSIBLE 2.2.4.DIGITAL TECHNOLOGY THANKS TO ECODESIGN AND FINOPS

Since its creation in 2006, Alter Way,a member of the Econocom Galaxy hasbeen a committed company that combinesperformance and responsibility based onopen source and accessible solutions.

In 2020, Alter Way launched Chrysalide,a new strategic plan, and added anenvironmental dimension by proposingtwo new offers:

an ecodesign offer for application•services: web ecodesign consists inbuilding digital platforms by obtaining thebest arrangement between performanceand reducing the environmental impact.

At the heart of the concept of digitalsobriety, ecodesign aims to reduce theenvironmental impact of companies bytaking into account the environmentalconsequences of a product or service fromthe beginning of its development andthroughout all the stages of its life cycle.

Applied to the design of a digital platform,this approach consists in defining the rightneed to offer just what’s necessary for thevisitor.



Ecodesign is aimed at efficiency with asober approach: it banishes unnecessaryfrills, excessive images, resource-intensivedevelopments and other deploymentenvironments that do not take intoaccount the digital footprint. With thisoffer, Alter Way seeks to offer anenvironment friendly innovative service butalso raise awareness among companiesabout ecodesign challenges;

a FinOps offer for optimised•infrastructuremanagement: the FinOpsapproach aims to monitor and optimisethe costs of cloud computing services andthe opportunity to offset their carbonfootprint.

The main underlying challenge? Findingthe right balance between budget andexpenses allocated to cloud services onone hand and, on the other hand, therequired IT performance and innovation interms of business and environmentalissues. The objective is not only to generatesavings, but strive to find the rightarchitecture.

Ultimately, implementing a FinOpsapproach enables to save money andmanage the environmental footprint.

ECONOCOM PRODUCT CARE: 2.2.5.ECO-RESPONSIBLE EQUIPMENT MANAGEMENT

Product Care is a maintenance servicecentre, located in France, specialising in themanagement of mobility equipment:telephones, tablets and laptops.

Product Care is also a solution that enablesto manage IT equipment in aneco-responsible manner.

This offer enables to reduce the digitalenvironmental footprint by:

increasing the operating period of•terminals: repairs, warranty extension,claims coverage;

reducing equipment obsolescence by•guaranteeing software and hardwarecontinuity (management of updates,enrolments, image downloads);

limiting industrial waste: technical•diagnostic service for equipment, withrepair and reconditioning for reuse offunctional equipment or destruction ofdefective equipment, with organic andnon-organic waste processing andrecycling.

TO BECOME A LEADER 2.2.6.IN THE FINANCING OF THE CIRCULAR ECONOMY

Econocom is convinced that digital businesscan no longer be an end in and of itself, butis a means towards the common good. Itmust be ethical by design – i.e., guided byvalues of respect for people and theirenvironment, to provide, from conception,solutions to the problems posed. It must beresponsible and sustainable, appropriate toeveryone’s uses, designed for the long termwith a view to an entire value chain. That isthe purpose of “tech for good”, which putsinnovation behind the common good.

For Econocom, usages are the key totransformation. Usages are, specifically, howwe live, consume and work. Thinking ofdigital transformation in terms of usageprovides the client with long-term solutionswhich respect people, the environment andsociety.

For over 40 years, Econocom has beensupporting companies in their industrialchanges, in particular by financing digitaland technological solutions and assets.Thanks to this core-business and itstechnological surveys, Econocom providescompanies and organisations with bespokedigital solutions, with contemporaryconsumer finance. By virtue of its “as aservice” business positioning, Econocomparticipates and acts specifically to meetchallenges of the circular economy.



At present, 32 to 47% of companies havealready adopted the circular approach tothe purchase, design, production andrecycling of products. However, only 12% ofthem adopt a business model which alsooffers products as a service. This lowproportion of businesses that havesucceeded in offering the “as a service”model is a seam of unexploitedopportunities.

to actively contributing to this change ofmodel.

Specifically, Econocom has essentialexpertise in the financing of digital projectsand technological assets via “as a service”financing solutions. Taking this conceptfurther, the Group has specific technologicalofferings to enable companies to managetheir digital projects in real time and closelyadjusted to usages. The Group is committed

Use’n’pay is a payment by usage solution;•it is modular and capable of evolving,incorporating all components of digitalprojects according to the requirements ofthe Company (payment by subscription,usage or license);

Econocom Belux is a signatory of the•“Green Deal”, a government initiativewhich aims to accelerate the switch toa circular economy. Alongside 229 otherBelgian companies, for two years nowEconocom Belux has been making itsactive contribution to circular solutionprojects in the country.

Monitoring our consumption 2.3All energy consumption at our various sites is monitored. This monitoring enabled usto carry out our first greenhouse gas audit in 2012.

These calculations are based on the emission factor calculators under the Carbon Auditmethodology of the ADEME (French Environment and Energy Management Agency).

GHG emissions (in tonnes)

ECONOCOM France audit Change

SCOPE Category of emission

Source of emission

2018 emissions

report (Tonnes)

2019 emissions

report (Tonnes)

2019-2020change

SCOPE 1 (Regulatory)

Direct fugitive emissions

Refrigerant fluids leaks from cooling

and air-conditioning systems

144 163 13%


Direct emissions from stationary

combustionNatural gas 126 114 -9%


Indirect electricity consumption-related

emissionsElectricity 512 350 -32%

SCOPE 3 (Non-mandatory) Travel Travel (1,426) 715 -50%

SCOPE 3 (Non-mandatory) Vehicle fleet Vehicle fleet 5,943 5,675 -5%

SCOPE 3 (Non-mandatory) Freight Freight 359 416 16%

Total 8,510 7,434 -13%

TOTA /FTE 1.16 1.05 -10%



GHG emissions (in tonnes)

ECONOCOM audit Change

SCOPE Category of emission

Source of emission

2018 CO2 audit

(Tonnes)

2018 CO2 audit

(Tonnes)2019-2020

change


Direct fugitive emissions

Refrigerant fluids leaks from cooling

and air-conditioning systems

210 238 13%


Direct emissions from stationary

combustionNatural gas 204 274 34%


Indirect electricity consumption-related

emissionsElectricity 2,125 1,621 -24%

SCOPE 3 (Non-mandatory) Travel Travel 2,901 1,345 -54%

SCOPE 3 (Non-mandatory) Vehicle fleet Vehicle fleet 10,142 9,206 -9%

SCOPE 3 (Non-mandatory) Freight Freight 497 529 6%

SCOPE 3 (Non-mandatory) Business travel Hotel + Taxi nd nd nd

SCOPE 3 (Non-mandatory)

Customer datacentres

Consumption of customer data

centresnd 120 nd

SCOPE 3 (Non-mandatory) Investment

Sources related to projects or activities related to financial

investments

nd nd nd

Total 16,079 13,333 -17%

TOTA /FTE 1.49 1.29 -13%


03 corporate social responsibilityfederate an ecosystem to create shared value

Federate an ecosystem 3.to create shared valueThe Econocom group believes in thepositive impact of digital technology ontraining and education. With theseconvictions, the Group has made educationone of the key pillars of its CSR strategy, asmuch through its partnerships andphilanthropic actions. In 2020, while thehealth crisis demonstrated the urgency ofcombating the digital divide, the Groupmade a commitment to families andchildren, by donating equipment or byproviding financial support to its partnerassociations.

Partnerships 3.1.in the education and university sector

SUPPORT NEW USES LINKED 3.1.1.TO USEFUL DIGITAL BUSINESS IN THE EDUCATION SECTOR, AND GREEN IT

Econocom is committed to promotingdigital technology in school curricula inorder to fight the digital divide andimprove digital accessibility.

The French government has decided toencourage the use of digital technology inschools to make up for France’s lag in thearea. Econocom wants to take action in thismovement by providing schools withsolutions adapted to the needs of students,teachers, parents and public authorities.

Econocom’s goal through its commitmentto education is to play a role in thetransformation of learning, to ingrain a loveof learning in students. The aim is also toencourage new teaching practices and topromote parental involvement in theeducation of children.

Two priorities have been set to encouragethe integration of digital technology ineducation:

equipment: the world is changing and•giving digital technology an increasinglyimportant role in people’s professional andpersonal lives. Students must therefore beprepared to face the challenges oftomorrow. Digital technology must“physically” enter the classroom so that allstudents can develop skills in using thisequipment;

support for teachers: this is a key point, as•it will allow teachers to develop newrelationships with their students based onthe digital solutions available to them.Econocom regularly organises meetingswith teachers to identify their needs andexpectations in order to bring the rightresponses.

In 2018, Econocom’s investments ineducation were extended to highereducation, through several activities:

the development of a “Campus” offer,•which includes, in particular, the “Green”offers of the Econocom group, well adaptedespecially to a number of renovation andnew campus opening projects, in Franceand abroad;

Econocom established a partnership with•“Campus Managers”. Campus Managers isthe first French network of Frenchuniversities and colleges committed tosustainable development. Econocom andCampus Managers share commonobjectives: facilitate the dissemination andsharing of good sustainable developmentpractices, tools and resources for campuses;

Éducapital: finally, always with the aim of•supporting young innovative companiesthat aspire to reinvent education,Econocom was the first player to invest inEducapital, the leading European venturecapital fund dedicated to education andvocational training;


03corporate social responsibilityfederate an ecosystem to create shared value

Econocom member of Impact IA:•Econocom is a member of Impact ArtificialIntelligence. Impact IA is a collectivefocused on reflection and actions withplayers involved in the area of artificialintelligence. The members share two mainobjectives: addressing the ethical andsocietal challenges of AI and supportinginnovative and positive projects for theworld of tomorrow.

INVESTMENT 3.1.2.IN EDUCATIONAL START-UPS

Magic Makers, a start-up specialising indeveloping and leading coding andcreative programming workshops forchildren

Econocom has acquired a stake in the sharecapital of Magic Makers to work with expertsfrom the education and digital sectors. Itoffers three types of workshops: weeklyworkshops, holiday workshops and eventsworkshops. Magic Makers has developed itsown method, which allows children startingat age 6 to learn coding concepts withtrained facilitators and innovative tools.Today, more than 1,000 eager childrenattend Magic Makers coding classes and/orholiday workshops. Note that Magic Makersintroduced IA in its teaching in 2019 andswitched to digital courses in 2020. This newmodel opens up new developmentprospects for the company.

Magic Makers is also active in middleschools with initiatives designed to helpstruggling students. Coding courses foreducators are available, mainly through theClass’Code project supported by INRIA and anumber of partners, and backed by theFrench Investment for the Futureprogramme coordinated by the Caisse desDépôts et Consignations. Children ofEconocom employees are offered discountsfor Magic Makers courses through theGroup’s Share engagement programme.

Kartable, the first full, free learning andstudy platform

This start-up opened a platform allowingusers to consult programmes, courses andexercises spanning all years of secondaryschool, free of charge. Econocom employeescan also benefit from preferential conditionsfor their children.

SPONSORSHIP 3.1.3.PROGRAMMES IN EDUCATION

A solid partnership with PasserellesNumériques

Econocom has been a partner toPasserelles Numériques since 2007. Thisorganisation helps young people fromunderprivileged backgrounds in Cambodia,Vietnam and the Philippines to receivetraining and find skilled employment in theICT sector. Since 2007, 445 students havebeen supported by the Group on the basisof promotions consisting of 50 studentsand for a period of two years perpromotion. The partnership establishedwith Passerelles Numériques also works inskills sponsorship.

Combating the digital divide with the “emergency connection” community

The health crisis has been a tremendousindicator of the digital exclusion of the mostvulnerable, who are virtually cut-off from therest of the world. Thousands ofdisadvantaged young people have lost allcontact with school due to a lack of ITequipment and the support required tocontinue their education remotely. Indeed,the most vulnerable families haveexperienced a double penalty. Faced with aloss of income, their children often face thechallenge of continuing to learn, withoutaccess to a computer or the Internet, or thenecessary parental support.



To cope with this emergency, and enablethese young people to continue their studiesfrom home, the #ConnexiondUrgencecommunity worked actively to equip andsupport at least 10,000 disadvantaged youngpeople who have lost all contact with schoolsince the beginning of the nation-widelockdown in France, to enable them toconnect to school remotely.

It is in this context that the Econocom groupwas able to help the #ConnexiondUrgencecommunity, by donating 500 reconditionedlaptops in perfect state, which were preparedvery quickly by the Ateliers Sans Frontières(ASF) association, including an office softwaresuite.

Internationally, other actions to combat thedigital divide have been carried out. Inconjunction with the Engie Foundation,Econocom Lease Belux donated120 computers free of charge to theWallonia-Brussels federation, therebystrengthening or re-establishing aschool-student relationship. In England,around fifty iPads and laptops were donatedto schools in partnership withTechInclusionsUK and the Tower HamletsEducation Partnership. The equipmentprovided by Econocom Spain was donatedto the “Ningún Niño sin Merienda”association. It then provides the equipmentto families or children in need.

Joint action with Fondation CroissanceResponsable

Partnerships with Companies and Industries(CERPEP). This programme aims to supportthe professional integration of young peopleinto the job market by improving teachers’knowledge about the reality of working at acompany and what jobs entail. Thisworkshop also serves as the starting pointfor partnerships between the host company,the teacher and the school (e.g. a secondaryschool student does an internship, thecompany employee speaks to the class, thestudents visit the Company, etc.). As part ofthis programme, Econocom regularly opensits doors to teachers so that they can learnmore about what it is like to work at acompany. Discussions are organised withthe different Group functions so that theycan better understand the Company andhow it operates.

Econocom works with the FondationCroissance Responsable in support of theProf en Entreprise programme. Offered tomiddle and secondary school teachers ingeneral and technological education, as wellas guidance counsellors, the Prof enEntreprise programme is coordinated by theFondation Croissance Responsable inpartnership with the French Ministry ofNational Education through the FrenchCentre for Studies and Research into

Econocom, partner to Double Horizon

Since 2013, Econocom has been a partner ofthe Double Horizon association whichsupports the education of under-privilegedpeople in France and abroad. Since 1992Double Horizon has been offering otherhorizons:

to children from emerging countries who•often lack everything they need to learn,starting with a proper school, or, when thisexists, school supplies;

to children from France, who, in•under-privileged districts, do not alwayshave the resources, outside school, todiscover the town, culture, the world.

For over seven years now, Econocom hasbeen supporting the French activities of theassociation. Double Horizon works in twoschools in the 20th arrondissement (of thepriority education network). A surveycarried out a few years ago showed that themajority of children from these schools hadnever visited Paris, its sites or museums,even by the end of secondary school.



The project, which involves the cooperationof teachers in both schools, has four aims:

access to culture, getting about twenty•children to explore Paris and its heritage;

another kind of school, allowing children to•experience school and learning in generalas a pleasant and enriching activity and notas an obligation or a dead end;

access for parents, involving parents in•the trips in city of Paris;

open mindedness, starting mentoring with•students which will give them a positiveexperience of studying through discussion.

As part of this partnership, Econocominvites primary school children to its officesto introduce them to the business world andthe digital solutions it provides for itscustomers.

During the Covid-19 crisis, Econocomcontinued to support the “Double Horizon”association by providing additionalequipment and financial support. This hasmade it possible to combat theschool-family digital divide.

Espérances Banlieues

In September 2019, Econocom formed apartnership with Espérances Banlieues. TheGroup committed itself to supporting theactions of this organisation which createsnon-denominational schools in difficultdistricts.

France, welcoming about 700 pupils.Econocom’s support essentially involvesencouraging access and the training ofpupils in digital technologies, notablythanks to the joint action of Magic Makers.

Espérances Banlieues is special in that itcombines, with the school syllabus, thetransmission of cultural and humanisticreferences and the Codes of our country sothat children can find their place in society,and grow with confidence and the desire tosucceed. There are now 17 schools across

During the health crisis, the “EspéranceBanlieue” association received a financialdonation and additional equipment fromEconocom.

With the ambition to strengthen itspartnership with the association in 2021,Econocom employees will presentEconocom’s business lines as well as thoseof digital technology in schools.

“100 000 Entrepreneurs”

To build bridges between schools andbusinesses, and to pass on theentrepreneurial drive to young people,Econocom supports the action of theorganisation “100 000 Entrepreneurs”.

“100 000 Entrepreneurs” is a public-interestorganisation that arranges for entrepreneurvolunteers to speak at establishments, fromsecondary schools to university-levelinstitutions. Led in close collaboration withthe French Ministry of National Educationand its academic representatives, these talksaim to raise students’ awareness aboutentrepreneurship, provide them withconcrete knowledge about the businessworld and show them the importance ofsubjects in their curriculum.

Over the past school year, more than45,000 young people have met thesewomen and men who do business in manyways!

During the health crisis of 2020, Econocomprovided financial support to the“100 000 Entrepreneurs” association.



Become the partner 3.2.of choice for innovative companies and integrate them into our offersSupporting and growing start-ups is one ofthe major lines of the Econocom CSRpolicy. It is also one of the ways ofembodying and expressing the three groupvalues: audacity, responsiveness and goodfaith.

The start up spirit at the heart ofEconocom’s organisation, with its“Satellite” SMEs

Econocom group has put in place an originalintegration and governance model for someof these new acquisitions (called “Satellites”)so as to preserve their agility, boost theirperformance and competitiveness andgenerate synergies at Group level.

The founding shareholders of thesesatellites have retained a non-controllinginterest in the share capital and have a verybroad level of managerial autonomy.

The Prix des Technologies Numériques

For the past four years, Econocom haspartnered with Prix des TechnologiesNumériques, a digital technology organisation,driven by Télécom Paristech, made up of morethan 300 leaders and decision-makers. Forthe 2020 awards, the panel of the Prixdes Technologies Numériques, includingVéronique di Benedetto and other recognisedfigures from the digital industry, focused onthe energy transition, thus giving somelimelight to the entrepreneurs who have usedtheir talent and creativity to invent newimpact solutions in this area.

Tool Your Future

Tool Your Future is the Econocom Italiaproject born in June 2020 that takes theform of a three-day digital hackathon withthe aim of opening up the Company’sborders to positive external influences anddesigning new ideas and solutions for itscustomers. The Econocom Italia Group hasturned to the children of its employees,aged 13 to 23, to rethink the office spacesand working methods of the future andoffer these innovative ideas to its customersthrough special-purpose and customisedoffers. The winning solution, elected by ajury composed of partners and solutioncustomers (Le Village by CA, MR Digital,Fattor Comune, Digital360, Istituti DeAmicis) was SCAN-CAM, the webcam of thefuture capable of remotely projectingcustomisable holograms thanks to real-timescanning. To illustrate the potential of youngpeople, SCAN_CAM will be part of the valueproposition provided by Econocom and willbe available to all of the Group’s customers.

French entrepreneurship with Partech

Since joining the seed fund “PartechEntrepreneur” in October 2013, Econocom hasfurthered its collaboration with the fund tosupport the development of digitalentrepreneurship in France. Open innovationhas become a necessary component tosupport traditional R&D efforts of largecompanies, while start ups need to be incontact with large companies to acceleratetheir business. As a Corporate InnovationPartner for the fifth year running, among itsother roles in this capacity, Econocom leadsan annual calendar of business events oninnovation with other organisations involvedin Partech.



Paris-Saclay Fund

Econocom has also invested in theParis-Saclay Seed fund, which seeks tosupport and promote innovation andentrepreneurship within the IT, Internet,digital and life sciences, and MedTechsectors. This investment gives Econocom aninnovative edge in digital technology andchanges in society to continue offering itscustomers the best solutions. Nearly50 young, high-potential companies willbenefit from support over the next years.

Develop 3.3.our local rootsEconocom intends to make a positiveimpact on all of its ecosystem. One of thepriorities which the Group set itself is tobuild lasting relationships with theeconomic, social and community fabricclose to the sites where the Group is active.Every site and subsidiary is thereforeencouraged to get positively involved withits direct ecosystem in order to put downfirm local roots.

Overview of initiatives with positive impact in our subsidiaries:

Italy:

Econocom Italy chose to invest in multipleinitiatives to forge ever more links betweenthe Company and its environment. It is inthis context that Econocom Italy was able todevelop concrete actions during the Covidcrisis.

Participation with one of our client in the•donation to the Carlo Urbani hospital inJesi for the purchase of intensive careequipment to support the most vulnerable.

Digital Standing Ovation for people on the•front line during the first lockdown. The“flash mob” has attracted the attention ofmedia such as Forbes TV.

To show children the significant work of•their parents, which is now closely linked tofamily life, Econocom Italia has opened itsoffices virtually to children with the aim ofshowing and presenting their parents’different jobs and thus bringing themcloser and closer to the digital world.

Employees were able to support the ASST•Fatebenefratelli Sacco (very active in Milanboth in research and in the cure of thecoronavirus) or the Arca project (helpingthe most vulnerable) by making a financialcontribution.

For Christmas, Econocom Italia showcasedtwo innovative projects.

Employees were able to support the Panda•association - "Medici in Famiglia et PaneQuotidiano" by making a financialcontribution to provide free medical andpsychological care and guarantee firstnecessity food.

Econocom thought up a partnership with•the “Medici in Famiglia” medical centre inMilan which offers medical visits,check-ups and specialist therapies ataffordable prices.

The Group also created a special video for•its external stakeholders where employeesand their children were the actors, in orderto talk about digital innovation, through theeyes and voices of the Group’s families. Thisis the way we showed the strengths ofdigital technology in everyday use, bybridging the social gap betweentechnologies and their adoption.

Belux:

Billy Bike, a Brussels scale-up, offers an•all-in solution to meet the growing needfor green mobility in our cities. It innovatesby offering the first shared electric bicyclesas-a-service. The acquisition of the lastthree hundred connected e-bikes in thefleet was the successful achievement of ajointly-created project and a well-preparedco-financing with Econocom Belux.



In April 2020, Econocom Belux provided•technical support to Telenet, a telecomsoperator, when it provided 500 smartphoneswith a BASE sim card free of charge as wellas 500 additional BASE data sim cards topsychiatric hospitals and healthcareinstitutions in order to break the isolation ofcoronavirus patients and young peoplesuffering from mental health disorders andelderly people staying in medical centres;

in April 2019, as in September 2020,•Econocom Belux was a logistical partner ofthe 31st edition of the Télévie. The Télévie isa charitable event which raises funds forF.R.S.-FNRS and which has been takingplace in French-speaking Belgium andLuxembourg since 1989. It is organised byRTL-TVI. It raises funds for scientificresearch in the fight against cancer andleukaemia, in both children and adults.About ten employees volunteered andinstalled over 200 laptops, used to Code thedonations;

Econocom Belux also invested in the•installation of solar panels in 2011. In 2020,the solar panels covered 28.4% of theconsumption of its main building inZaventem. Since the installation of thesesolar panels, Econocom Belux reduced itscarbon footprint by 398.64 tonnes;

in addition, Econocom Belux also invested•in charging stations for electric cars;

schools in disadvantaged neighbourhoodsthat have set up online teaching platforms.This donation, in this period of Covid-19,helps to fight against the digital divide.

in May 2020, the ENGIE Foundation•together with Econocom Belux Leasedonated to Pierre-Yves Jeholet,Minister-President of the Wallonia-BrusselsFederation, a hundred laptop computers.These computers were given to public

United Kingdom:

Econocom UK suggested to its employees•to make donations to charities in the city ofBirmingham. Econocom UK thus supportedtwo of the charities of the Birmingham CityMission. One of them is a resource centrewhich distributes food, clothes and furnitureto the needy. The charitable organisationdistributes over 200 food parcels per monthto people in difficulty. The charity has alsogiven presents to about 3,000 children inthe city. Econocom employees thuscollected food, toys, household items andclothes from mid-November onwards inpreparation for the Christmas period.

With the appointment of Frances Weston,•member of “100 Women in Finance”(a global network of finance professionals),Econocom also becomes a member of thisnetwork.

At the end of 2020, Econocom UK•partnered with TechInclusionUK, a neworganisation fighting against digitalexclusion. A partnership was also signedwith the Tower Hamlets EducationPartnership, to recondition and distributedigital equipment, provided by Econocom,to young pupils attending primary school inTower Hamlets. In total, around fifty iPadsand laptops have been donated to severalschools, giving students access to theresources they need to learn despite thecoronavirus health crisis.



Spain

Econocom Spain took part in numerousraces to finance various projects.

The solidarity race to support the Dravet•Foundation and the Asperger Associationof Madrid, the IX edition of the PopularHortaleza Race known as the “La Carrera delos Valientes” (Race of the braves).

The “eco-run” solidarity race to support•International Environment Day.

The 3000-metre pair race in Valence to•support victims of brain aneurysm.

The VI Madrid Against Cancer Race•organised by the Spanish Associationagainst Cancer (AECC), to support researchand the fight against cancer.

Lastly, each year, Econocom Spain•supports the "Sesé Foundation", a publicnon-profit organisation for equality, in itsannual solidarity to support people withintellectual disabilities.


03 corporate social responsibilitykey performance indicators

Key performance indicators4.Area INDICATORS UNITS

ECONOCOM France

2018 2019 2020

Non-financial rating Ecovadis rating Notes 58/100 58/101 62/100

Human resources

Gender equality index Notes / 79/100 78/100

Percentage of women hired % / / 17.6%

Percentage of women % / / 21%

Percentage of people with disabilities % 2.6% 3.1% Pending

Digital inclusion

Recycling rate achieved with companies

in the social economy (ESS)

% 73.0% 85.0% 88.0%

EnvironmentThe energy footprint

of our digital technology

MWh/year6,565 6,252 5,388

/ -4,7% -14%

Area INDICATORS UNITSECONOCOM

2018 2019

Environment

CO2 emissions audit in France t CO2/year 8,510 7,434

FTE, tonne of CO2/employee in France t CO2/employee/year 1.16 1.05

Change % -9.60%

CO2 emissions audit, Group t CO2/year 16,079 13,333

FTE, tonne of CO2/Group employee t CO2/employee/year 1.49 1.29

Change % -13.10%


04risk factors

Operational risks1. 104

Risks associated with Services 1.1.contracts 104Risk of sub-contractor default1.2. 104Risks associated with price 1.3.fluctuations and hardware obsolescence 105Risks associated with competition1.4. 105Employee-related risks1.5. 105Environmental risks1.6. 105Insurance against risk1.7. 105Pledges, guarantees, collateral 1.8.provided and borrowings 106Risks related to external growth1.9. 106

Regulatory risk2. 106

Legal risks2.1. 106Risks associated with tax 2.2.inspections 106Risks associated with regulations 2.3.applicable to lessors’ leasing businesses 107Risks associated with regulations 2.4.applicable to Technology Management & Financing clients 107

Dependency risk3. 107

Dependence on refinancing 3.1.institutions 107Customer dependency risk3.2. 107Supplier dependency risk3.3. 108Technology dependency risk3.4. 108

Financial risk4. 108

Market risk4.1. 108Credit and counterparty risk4.2. 109Equity risk4.3. 110


04 risk factorsoperational risks

Operational risks1.Risks associated 1.1.

with Services contractsThe Group offers three types of Servicescontracts:

fixed-price contracts with a guaranteed•result, whereby the Group undertakes toprovide certain deliverables for a fixedprice, irrespective of the timeframe. Thistype of contract may include financialpenalties in the event of below-expectationperformance, calculated according to thevalue of the contract and usually capped ata certain percentage of the annual amountof the contract. Econocom manages thisrisk by carrying out technical and financialmonitoring of projects (measuring theachievement of contractual objectives,tracking the number of man-days used,estimating the remaining consultant timerequired, and measuring service qualityand lead-time indicators, etc.). Thismonitoring enables the Group to measureand oversee the achievement ofcontractual obligations and, whereapplicable, anticipate any provisions forlosses upon contract completion to berecognised in the financial statements.Contracts with a guaranteed resultaccount for almost one-half of the Servicesbusiness in terms of value;

fixed-price contracts with service level•agreements, whereby the Group undertakesto provide a given service, within a giventimeframe, for a fixed price per time unit(usually per month). Econocom managesthis risk by carrying out regular technicaland financial monitoring of the projects,particularly by tracking the number ofman-days spent;

time-and-materials contracts, whereby the•Group undertakes to provide technical skillsand charges the client for the number oflabour hours spent. Econocom managesthese contracts by paying particularattention to the fee schedule and itsconsultants’ fees.

Furthermore, Services contracts carry risksassociated with termination notice periods.The Group ensures that this period allowssufficient lead time to adjust the workforce,particularly on large contracts. The Groupplans in advance for contract terminationsso that it may redeploy its staff and uses ameasured level of sub-contracting to ensureflexibility.

Risk of 1.2.sub-contractor defaultFor certain contracts, Econocom hasperformance obligations and sometimescalls upon the services of sub-contractors.Econocom’s policy is to recover anypenalties charged from its sub-contractors.However, it is possible that Econocom mayincur a risk related to default by one of itssub-contractors. No single sub-contractor issufficiently important to account for asignificant portion of Econocom’s business.

Econocom assesses the financial andoperational capacities of its sub-contractorsas and when required, and in particularwhen it uses sub-contractors that are newmarket entrants.


04risk factorsoperational risks

Risks associated with 1.3.price fluctuations and hardware obsolescenceThe Group is exposed to the risk offluctuations in the future value of leasedequipment within the scope of itsTechnology Management & Financingbusiness. It deals with this risk by calculatingthe future value of equipment using thediminishing balance method. Thiscalculation method is described in note 4.1on accounting principles to the consolidatedfinancial statements. The method is regularlycompared with actual transactions, andannual statistics are compiled to validate thesuitable and prudent nature of the selectedmethod.

For non-standard equipment, the Groupensures that the future value of leasedequipment is estimated appropriately,namely by calling on independent experts.

For its Products & Solutions business,Econocom does not keep substantialsurplus stock and as such limits its exposureto the risk of obsolescence.

For its data centre maintenance andoutsourcing activity, the Group keepsdedicated stock. The components andlevels of stock are constantly monitored toensure that they are in line with the volumeand type of equipment under maintenance,which addresses the risk of obsolescence.

Risks associated with 1.4.competition

Financing and the international scope of itsactivities.

The ICT services market is competitive. Ineach country where it has operations and ineach of its businesses, the Group facescompetition from international, national orlocal players. However, Econocom standsout from the competition due to thediversity of its activities and, especially, itsexpertise in Technology Management &

Employee-related 1.5.risksAs far as Econocom group Management isaware, the Group is not exposed to anyemployee-related risks other than thosearising in the normal course of business forcompanies of a comparable size based inEurope. The majority of the workforce isemployed in the Group’s French, Belgian,Spanish, Italian, Moroccan and Braziliansubsidiaries.

Environmental risks1.6.Econocom group does not destroy themachines purchased from refinancinginstitutions at the term of the related leases.In accordance with the WEEE (WasteElectrical and Electronic Equipment)Directive, the Group collects all theequipment it owns from clients and arrangesfor all electrical and electronic waste to beprocessed and recycled. Since 2013,Econocom has been a client of Ecologic, anenvironmental organisation which collectsand processes WEEE from businesses all overFrance, in compliance with environmentallegislation.

Insurance against 1.7.riskThe Group is covered against liability claimsand property damage via insurance policiestaken out with first-rate insurers. It haselected not to take out businessinterruption insurance and insuranceagainst risk of fraud.

The Group reviews and evaluates its risks onan ongoing basis in conjunction with itsinsurers and experts so as to ensure optimalcoverage in both the insurance andreinsurance markets.


04 risk factorsregulatory risk

Pledges, guarantees, 1.8.collateral provided and borrowingsReal security interests provided as collateralfor borrowings or financial liabilities by theGroup chiefly consist of receivables offeredas collateral for its short-term funding. Theamount of pledged and mortgaged assets isdisclosed in note 20 to the consolidatedfinancial statements.

Risks related 1.9.to external growthAs part of its strategy, the Group continuesto develop its business by seeking targetedacquisition opportunities.

Acquiring and integrating companiesgives rise to certain risks, includinghigher-than-anticipated financial andoperating expenses, failure of the operationalintegration, which can lead to loss of majorclients or the departure of importantmembers of the acquiree’s staff and a declinein financial performance.

Integration of the acquired companies mayalso disrupt the Group’s existing businessesand lead to insufficient resources, particularlyin terms of management. The synergiesexpected from an acquisition may fall short offorecasts or take longer to achieve thaninitially announced, and the costs ofimplementing these synergies may exceedexpectations. The above-mentioned factorsmay also have a negative impact on thegoodwill recognised in the consolidatedfinancial statements (see also note 9 “Goodwilland impairment testing” to the consolidatedfinancial statements).

Several years ago, Econocom group put inplace an original integration and governancemodel for some of these new acquisitions(called “satellites”) so as to preserve their agility,boost their performance and competitivenessand generate synergies at Group level. Thefounding shareholders of these satellites haveretained a non-controlling interest in the sharecapital and have a very broad level ofmanagerial autonomy. The related integrationrisk is mitigated by the fact that takenindividually, these transactions are relativelysmall.

Regulatory risk2.Legal risks2.1.

The Group operates as a service provider invarious Western European countries and istherefore subject to numerous differentlaws as well as customs, tax and labourregulations. In order to limit its exposure tolegal risks, the Group has set up subsidiariesin each country run by managers who arefamiliar with the applicable local laws andregulations, who work alongside the Group’sLegal Counsels and external consultants.

Econocom monitors on an ongoing basis anylitigation and one-off situations that couldresult in a financial risk. Any pending litigationis covered by provisions for appropriateamounts calculated by Group Management.

Disclosures concerning litigation orarbitration likely to have a substantial impacton Econocom group’s financial position,assets, business or the results of its operationsat 31 December 2018, are presented in note 16to the consolidated financial statements.

Risks associated 2.2.with tax inspectionsThe Group undergoes regular tax inspectionsin the various countries in which it operates.Although the outcome of these inspections isuncertain, the Group has estimated asaccurately as possible the associated risksand has recognised the appropriateprovisions for those risks in its financialstatements. The outcome of theseinspections could have a negative impact on


04risk factorsdependency risk

the Group’s consolidated financialstatements. However, this impact is limitedon account of the provisions recognised.

Risks associated with 2.3.regulations applicable to lessors’ leasing businessesCertain countries have decided toimplement stricter legislation for leasingcompanies by aligning it with the legislationgoverning financial institutions. Theassociated risk, which is common to allcompanies in the industry, concerns theincrease in administrative costs.

Risks associated with 2.4.regulations applicable to Technology Management & Financing clients

under liabilities, with the exception of smallitems with an insignificant unit value.

The new IFRS standard applicable to leaseagreements, IFRS 16, published inJanuary 2016, entered into force on 1 January2019. Under this new accounting standard,“lease liabilities” are presented on theCompany’s statement of financial position

As anticipated, the impact of this newstandard for the Technology Management &Financing business was limited due to theadded value brought by the Group in itsleases:

upgrade management via leasing and in•particular the Group’s scalable offerings;

asset management and expense•management provided by Econocom’ssolutions (inventory tracking, telephoneusage management, IT outsourcing forsmall and medium businesses, etc.), whichgive our clients optimal visibility and moreeffective management of their assets;

better economic management of•end-of-life assets;

management of end-of-life assets in•greater compliance with sustainabledevelopment commitments;

smart and connected object (IoT)•management capabilities.

Dependency risk3.Dependence on 3.1.

refinancing institutionsIn the course of its business, Econocomassigns most of its finance lease contractsto refinancing institutions.

These institutions generally focus onclearly-defined geographical areas or typesof equipment. In addition, the Group strivesto maintain a balanced portfolio ofinstitutions in order to avoid beingoverdependent on one or more institutions.

In 2020, the proportion of the Group’s fivebiggest funders was accounted for 69% ofthe total value of refinanced rents. TheGroup’s main funder in 2020 represented29% of the total value of refinanced rents.

Customer 3.2.dependency riskThe Group continually strives to expandits client portfolio. This is a strategicdevelopment focus area aimed at gainingmarket shares. At 31 December 2020, nosingle client represented over 5% of theGroup’s consolidated revenue.


04 risk factorsfinancial risk

Supplier dependency 3.3.riskGiven the broad choice of potentialsuppliers and the fact that they are largelyinterchangeable, Econocom’s dependenceon suppliers is very limited.

For the Technology Management &Financing, Products & Solutions andServices activities, the choice of suppliers isultimately made by our clients. For theseactivities, in the event of a supplier default,an alternative supplier is chosen.

At 31 December 2020, no supplier accountedfor more than 15% of the Group’s totalpurchases.

Technology 3.4.dependency riskFor its Technology Management &Financing, Services and Products &Solutions activities, the Group developspartnerships with hardware manufacturers,telecoms operators, software vendors andsolutions providers. However, it strives toremain independent from these companiesin order to offer the best possible solution interms of architecture, hardware andsoftware.

Financial risk4.The Group’s activities are subject to certainfinancial risks: market risk (includingcurrency risk, interest rate risk and pricerisk), liquidity risk and credit risk.

The Group’s overall financial riskmanagement policy focuses on reducingexposure to credit risk and interest rate riskby transferring finance lease receivables torefinancing institutions and by usingfactoring solutions on a non-recourse basisin the Services and Products & Solutionsbusinesses.

Market risk4.1.Financial market risks (interest rate andcurrency risk) and liquidity risks arehandled by Group Management.

FOREIGN EXCHANGE RISK4.1.1.

on other currencies. The currenciesconcerned are the pound sterling, the USand Canadian dollars, the Moroccan dirham,the Czech crown, the Swiss franc, the newRomanian leu, the Polish zloty, the Brazilianreal and the Mexican peso. Since the largemajority of subsidiaries’ purchases and salesare denominated in the same currency, thisexposure is limited. Econocom group doesnot deem this risk to be material, but hasnevertheless signed a number of foreignexchange hedging agreements to hedgerisks on internal flows.

The Group operates chiefly in the eurozone;however, following the expansion ofoperations in non-eurozone countries inEurope, as well as North and South America,the Group may be exposed to currency risk

INTEREST RATE RISK4.1.2.

Econocom’s operating income and cashflows are substantially independent ofchanges in interest rates. Sales of leases torefinancing institutions are systematicallybased on fixed rates. Income arising onthese contracts is therefore set at the outsetand only varies if the contract is amended.

The Group uses a combination of fixed ratesand floating rates to hedge its interest rateexposure.


04risk factorsfinancial risk

At 31 December 2020, the Group’sfloating-rate debt comprises short-termborrowings (credit lines, commercial paperand bridge loans), and short-term factoringagreements. Partial hedges were in place asof 31 December 2020 on these floating-rateborrowings.

The Group’s long-term debt is at fixed andfloating rates and comprises a euro privateplacement (Euro PP) for €56 million and a€150 million Schuldschein bond and a€182 million bond investment. Rate hedgesare in place for the floating-rate portion.

LIQUIDITY RISK4.1.3.

The Finance Department is responsible forensuring that the Group has a constantflow of sufficient funding:

by analysing and updating cash flow•forecasts on a monthly basis for all of theGroup’s companies;

by negotiating and maintaining sufficient•outstanding lines of financing;

by optimising the Group’s cash pooling•system in order to offset cash surplusesand internal cash requirements.

In 2020, Econocom continued to optimise itsdiversified sources of financing with the aimof (i) reducing borrowing costs, (ii) extendingthe maturities of its borrowings and (iii) bankdisintermediation.

In order to meet its short-term financingrequirements, the Group now has new bankcredit facilities with longer maturities. TheGroup mainly uses its commercial paperprogramme, capped at €450 million and withmaturities of up to two years, of which€119 million was outstanding at 31 December2020.

At that date, Econocom had €292 million inbilateral bank credit facilities of which€196 million committed.

Econocom also has €76 million in bilateralbank loans to finance its leases at rates thatremain fixed for the duration of the loans.

To finance its development, Econocomissued:

in May 2015, a private placement on the•Alternext market for €101 million;

broken down into two tranches:•€45.5 million maturing at five years andpaying interest at 2.364%, and €55.5 millionmaturing at seven years and paying interestof 2.804%;

in December 2016, a Schuldschein bond•(German private placement) for a totalamount of €150 million, with tranchesmaturing at five and seven years andpaying interest at an average rate of 1.54%;

in March 2018, the Group issued bonds•convertible into new shares and/orexchangeable for existing shares (OCEANE).The issue was for a total of €200 million,maturing in 2023.

The Group intends to continue its policy ofdiversifying its sources of financing in orderto optimise its borrowing costs and furtherreinforce its financial independence.

In 2021, in addition to the repayments ofcommercial paper, Econocom will have torepay the first tranche of the Schuldscheinloan, in the amount of €137 million.

Credit and 4.2.counterparty riskThe Group has policies in place to ensure thatgoods and services are sold to clients whosecredit standing has been analysed in depth.The Group’s credit risk exposure is also limitedas it does not have any concentration of creditrisk and uses factoring solutions for theProducts & Solutions and Services businesses,as well as non-recourse refinancing with banksubsidiaries and credit insurance inthe Technology Management & Financingbusiness.


04 risk factorsfinancial risk

For its Technology Management & Financingbusiness, the Group nevertheless has theoption of retaining the credit risk on certainstrategic transactions. These relate primarilyto Econocom Digital Finance Limited (EDFL),the Group’s internal refinancing unit withexpertise in transaction security andnon-standard contract financing.

At 31 December 2020, contracts on whichEconocom bears the credit risk represented€186 million, or around 7% of totaloutstanding rentals for the TechnologyManagement & Financing business(€235 million at end-2019).

The Group only invests with investment-gradecounterparties, thus limiting its credit riskexposure.

Equity risk4.3.The Group does not hold any unlisted orlisted shares apart from treasury shares.

As the treasury shares held by Econocomgroup as of 31 December 2020 are deductedfrom shareholders’ equity in the consolidatedfinancial statements as of their acquisition, itis not necessary to compare their book valueto their actual market value.


05management report

Management Report of the Board of Directors on the financial statements 112

Group’s financial position 1.and highlights 112

Changes in the scope for the year1.1. 113Principal investments1.2. 113Financing transaction1.3. 113Research1.4. 114

Profit for the year2. 114

Income statement2.1. 114Statement of financial position2.2. 119Parent company 2020 financial 2.3.statements of Econocom group SE 123

Risk factors and disputes3. 127

Outlook for 2021 and 4.shareholders’ compensation 127

Corporate governance statement5. 128

Applicable Corporate Governance 5.1.Code 128Exemptions from the 2020 Code5.2. 128

Description of internal control 5.3.and risk management procedures in the context of the preparation of the financial information 129Ownership structure and limits 5.4.on shareholder rights 131The composition and functioning 5.5.of the administrative bodies and Committees 132Composition of advisory bodies5.6. 1382020 Compensation report5.7. 138Appropriation of profit and dividend 5.8.policy 144Relations with major shareholders5.9. 144Econocom group employee share 5.10.ownership 144Statutory Auditor’s fees5.11. 147Treasury shares5.12. 147

Subsequent events6. 148


05 management reportmanagement report of the board of directors on the financial statements

Management Report of the Board of Directors on the financial statementsFor the year ended 31 December 2020 presented to the General Meeting of 18 May 2021

In accordance with prevailing legislation and the Company’s Bylaws, we submit to you forapproval our report on the Company’s operations and the financial statements for the yearended 31 December 2020, as well as the compensation report.

The definitions of the performance indicators are provided as an appendix to this reportwhen they differ from the commonly accepted definitions.

The non-financial information required under articles 3 section 6 and 3 section 34 of theBelgian Companies and Charities Code is applicable (Code des sociétés et des associations -CSA) is reiterated in chapter 3, “Corporate Social Responsibility”.

Group’s financial position 1.and highlightsIn 2020, Econocom group posted revenuefrom continuing operations of €2,559 million,down yet limited compared to 2018 due tothe economic situation related to the healthand economic crisis. In terms of organicgrowth, there was a decline of 11.3%compared to the previous year. However,this downward trend slowed down at theend of the year with organic growth limitedto 8.4% in the fourth quarter of 2020.

Digital Services and Solutions (DSS) stood at€1,646 million, with a more limited organicdecrease of 5.9%. This decrease is due tolockdown periods in the various countries inwhich the Group operates and delays in theimplementation of certain projects. Thanksto the uptrend in Products & Solutions(growth of 8.3%) and almost stable activity inServices, DSS recorded organic growth of4.7% in the fourth quarter of 2020.

Revenue from the TMF business was€913 million, down 19.6%, mainly due to thehealth crisis and the wait-and-see state ofmind that it generated in thedecision-making process of companies.

In this particular context, Econocom alsodecided to reduce its volume of own bookedoperations.

In 2020, revenue from discontinuedoperations amounted to €97 million, asignificant decrease compared with theprevious year as a result of the disposalscarried out during the period.

Despite the decrease in revenue, currentOperating Profit(1) from continuing operationsamounted was €122.5 million. On alike-for-like basis, it was slightly up. To achievethis, in 2020 the Group finanlised its structuralcost-cutting plan of €97 million launched inearly 2019 benefited from, the continuousproductivity improvement in Services andfocused on projects with higher added value.

At the end of 2020; the group also achievedthe debt reduction that it had set a little overtwo years ago. Accordingly, at 31 December2020, the Group had a cash surplus of €20.2million, compared to net financial debt of€252.2 million at teh end of 2019. Both thesefigures include TMF self-supported contractsthat were financed with recourse for €185.9and €238.5 respectively.

Before amortisation of intangible assets from acquisitions. (1)


05management reportgroup’s financial position and highlights

On the one hand, this debt reduction of€272.4 million reflects sound operating cashflow generation, proceeds from thedivestiture of non-strategic assets for around€125 million, as well as the reduced volumeof own booked transactions. This debtreduction was achieved while paying, inNovember 2020, a divindend of €0.12 pershare, the same amount as that of therepayment of issue premiums in recentyears and continuing the buybask oftreasury shares.

Changes in the scope 1.1.for the year

DISPOSALS1.1.1.

In connection with the implementation ofits transformation and refocusing plan,Econocom carried out the followingdisposal transactions during the year:

Econocom Business Continuity: at the•end of June 2020, Econocom sold itssubsidiary, which covers maintenanceactivities in France, to the investmentcompany Checkers Capital;

Cineolia: at the end of July, Econocom•sold its entire stake in the subsidiaryCineolia;

Econocom Digital Security: at the end of•2020, Econocom sold its entire stake inEconocom Digital Security to Atos.

CHANGES IN OWNERSHIP 1.1.2.INTEREST

Altabox: Econocom group increased its•stake in the company through theacquisition of the shares from anon-controlling shareholder, thusincreasing its stake to 80%.

Bizmatica: Econocom exercised its•options, raising its interest in thissubsidiary to 100%.

Asystel Italia: Econocom group acquired•the shares of a minority shareholder,increasing its stake in the company to70%.

EnergyNet: at end-2020 the Group•exercised part of its options on theremainder of the company’s capital, raisingits interest to 100%.

VESTING1.1.3.

During the year, the Group completed anacquisition transaction.

Les Abeilles: in September 2020, Econocomacquired the entire share capital of theFrench company Les Abeilles, the Frenchspecialist in towing and rescuing in highseas. This company became part of theTechnology Management & Financingoperations.

Principal investments1.2.In addition of the equity interests acquiredas described above, the main investmentsmade by the Group in 2020 in order toconsolidate and transform its operationswere related to creating new offers,developing IT tools, recruiting for keypositions and renewing teams.

Financing transaction1.3.Share buybacks

Econocom also continued to buy back itsown shares in 2020. It acquired 10,871,023treasury shares. After taking into accountdisposals and transfers of shares tomanagers with share-ownership plans andthe cancellation of treasury shares decidedby the General Meeting of 19 May 2020, asat 31 December 2020, the Group held9,779,167 shares or 4.43% of the Company’sshare capital.

These transactions reflect the Group’scommitment to limiting dilution for itsshareholders and its confidence in itsgrowth outlook going forward.


05 management reportprofit for the year

Research1.4. efforts focused particularly on the areas ofdata visualisation (DATAVIZ), decision

In 2020, R&D efforts were continued, support, developing integrated solutions inconsistent with the areas developed in prior the area of IoT, image recognition in realyears with the aim of providing intensive time, 5G microservice billing and machinesupport and assistance for any innovative learning, applied to process automation.solutions produced by our customers. R&D

Profit for the year2.Income statement2.1.

in € millions 2020 2019restated(1) Change

Revenue 2,558.7 2,914.0 (12.2%)

Technology Management & Financing (TMF) 912.6 1,134.7 (19.6%)

Digital Services & Solutions (DSS) 1,646.1 1,779.3 (7.5%)

Profit (loss) from continuing operations(2) 122.5 127.6 (4.0%)

Profit (loss) from continuing operations 120.4 125.6 (4.2%)

Other non-recurring operating income and expenses (36.2) (24.5) 48.2%

Operating profit 84.1 101.2 (16.8%)

Other financial income and expenses (16.2) (18.6) (12.8%)

Profit before tax 67.9 82.6 (17.7%)

Income tax expense (18.5) (22.6) (17.9%)

Profit from continuing operations 49.4 60.0 (17.7%)

Share of profit (loss) of associates and joint ventures 0.1 - n/a

Profit (loss) from discontinued operations 0.7 (11.4) (106.5%)

Profit for the period 50.2 48.6 3.4%

Non-controlling interests 3.4 3.9 (12.7%)

Profit for the period attributable to owners of the parent 46.8 44.7 4.8%

Recurring net profit attributable to owners of the parent(2) 68.2 73.2 (6.8%)

In accordance with IFRS 5, 2019 income and expenses of activities discontinued in 2020 are reclassified to the(1)

income statements of 2019 under “Profit (loss) of discontinued operations”.To facilitate the monitoring and comparability of its operating and financial performances, Econocom group(2)

presents two key indicators, “recurring operating profit before amortisation of intangible assets from acquisitions”and “recurring profit attributable to owners of the parent”. Their definition is given in the notes to the financialstatements.


05management reportprofit for the year

Reconciliation of reported profit with recurring profit

in € millions 2020reported

Amort. ofintangible

assetsfrom

acqui-sitions

Othernon-

recurringitems

Profit(loss)from

discon-tinued

operations

2020recurring

2019recurring(1)

Revenue 2,558.7 - - - 2,558.7 2,914.0

Profit (loss) from continuing operations

120.4 2.1 - - 122.5 127.6

Other non-recurring operating income and expenses

(36.2) - 36.2 - - -

Operating profit 84.1 2.1 36.2 - 122.5 127.6

Other financial income and expenses (16.2) - (0.9) - (17.1) (18.6)

Profit before tax 67.9 2.1 35.3 - 105.3 109.0

Income tax expense (18.5) (0.7) (14.5) - (33.8) (31.4)

Share of profit (loss) of associates and joint ventures

0.1 - - - 0.1 -

Profit (loss) from discontinued operations

0.7 - - (0.7) - -

Profit for the period 50.2 1.4 20.8 (0.7) 71.7 77.6

Non-controlling interests 3.4 - 0.1 - 3.5 4.4

Profit for the period attributable to owners of the parent

46.8 1.4 20.7 (0.7) 68.2 73.2

In accordance with IFRS 5, 2019 income and expenses of operations considered discontinued in 2020 are(1)

reclassified to “Profit (loss) from discontinued operations” in the 2019 income statement.

Net earnings per share attributable to owners of the parent

in € 2020 2019 restated(1) Change

Basic earnings per share 0.22 0.20 10.1%

Basic earnings per share from continuing operations 0.21 0.25 (13.9%)

Basic earnings per share from discontinued operations 0.00 (0.05) (106.8%)

Diluted earnings per share 0.21 0.19 10.5%

Diluted earnings per share from continued operations 0.21 0.23 (12.1%)

Diluted earnings per share from discontinued operations 0.00 (0.05) (106.8%)

Recurring net earnings per share 0.31 0.32 (2.1%)





Number of shares outstanding

2020 2019

Average number of outstanding shares(1) 216,865,774 227,816,144

Total number of shares at year-end 220,880,430 245,380,430

Number of shares outstanding at year-end(1) 211,101,263 221,922,286

Econocom share price at 31 December (in €) 2.48 2.43

Market capitalisation at 31 December(in € millions) 547 597

Excl. treasury shares.(1)

Comments on the Group’s key figures

In 2020 the Econocom group postedconsolidated revenue of €2,559 millioncompared with €2,914 million in 2019. On alike-for-like basis, organic revenue fell by-11.3%.

Profit from continuing operations beforeamortisation of intangible assets fromacquisitions was €126.2 million, compared to€127.6 million in 2019, due in particular todisposals in 2019 and 2020 including that ofRayonnance concluded at the end ofDecember 2019. On a like-for-like basis, profitfrom continuing operations beforeamortisation of intangible assets fromacquisitions was up by around €2.5 million.

The Group’s operating profit was€84.1 million, compared to €101.2 million in2019. Non-recurring expenses amounted to€36.2 million, compared with €24.5 million in2019. These expenses correspond to measuresto adapt the organisation, the costs ofunoccupied resources in the context of theCovid-19 pandemic and include in particularthe capital gains from the disposal ofEconocom Digital Security in October 2020.

The net financial expense stood at€16.2 million compared to €18.6 million in2019. This sharp reduction is due in particularto the decrease in net financial debt and alower bond expenses, as a result of therepayment of part of the Euro PP bond andthe buyback transactions of convertiblebonds carried out during the last quarter.



KEY FIGURES BY BUSINESS2.1.1.

Revenue and profit (loss) from current operating activities* can be broken down by businessas follows:

Revenue

in € millions 2020 2019restated(1)

Changebased on

like-for-likestandards

Like-for-likechange

Technology Management & Financing 913 1,135 (19.6%) (19.6%)

Digital Services & Solutions 1,646 1,779 (7.5%) (5.9%)

Total revenue 2,559 2,914 (12.2%) (11.3%)In accordance with IFRS 5, 2019 income and expenses of operations considered discontinued in 2020 are(1)


Profit (loss) from continuing operations (2)

in € millions 2020 2019restated(1)

Totalchange

Profit (loss)from continuing

operations(as a% of 2019

revenue)

Profit(loss) fromcontinuingoperations(as a% of 2019

revenue)

Technology Management & Financing 37.0 44.0 (15.8%) 4.1% 3.9%

Digital Services & Solutions 85.5 83.6 2.1% 5.2% 4.7%

Profit (loss) from current operating activities(2) 122.5 127.6 (4.1%) 4.8% 4.4%


reclassified to “Profit (loss) from discontinued operations” in the 2019 income statement.Before amortisation of intangible assets from acquisitions.(2)

At 31 December 2020, TechnologyManagement & Financing posted revenue of€913 million, a decrease of 19.6% due mainlyto the effects of the health crisis. Despite thispandemic and its consequences on thebusiness climate and economic activity inEurope and the United States, some regionsproved more resilient, particularly France.Conversely, the Group’s American subsidiarysuffered from delays in the conclusion ofcertain significant contracts. Recurringoperating income from this activity was€37.0 million, compared with €44.0 million in2019. This change was due mainly to thereduced business, whereas the profitability ofthis activity improved slightly.

compared to €1,779 million in 2019. Net ofchanges in exchange rates and scope ofconsolidation, the organic decrease was -5.9%and is attributable to the health and economiccrisis which has been affecting the entireEuropean continent since the spring of 2020.However, the fourth quarter saw revenue growby 4.7% compared to the fourth quarter of2019. Business benefited from the need ofcompanies and public institutions forequipment, which supported the "Productsand Solutions" activity, thereby offsetting thedelivery delays for certain projects. Profit (loss)from continuing* operations was €85.5 millioncompared with €83.6 million the previous year,despite the disposals of Digital Security inOctober 2020 and Rayonnance in DecemberThe Digital Services & Solutions business line2019. This improvement is the result of costreported revenue of €1,646 million in 2020reduction measures implemented since 2019.

Before amortisation of intangible assets from acquisitions.*



KEY FIGURES BY GEOGRAPHICAL AREA2.1.2.

Revenue breaks down as follows:

in € millions 2020 2019 restated(1)

Change basedon like-for-like

standards

France 1,446 1,544 (6.4%)

Benelux 347 393 (11.8%)

Southern Europe 445 529 (15.9%)

Northern & Eastern Europe 226 261 (13.3%)

Americas 95 187 (49.2%)

Total revenue 2,559 2,914 (12.2%)In accordance with IFRS 5, 2019 income and expenses of operations considered discontinued in 2020 are(1)


In general, all of the Group’s geographicalareas were affected by the health crisis andits consequences on economic activity.

The France region is holding up better dueto a better balance between the Group’sdifferent business lines. The TMF businessalso enjoyed major contracts that helped tomitigate the downward trend and includes agreater proportion of DSS activities.

Contraction in revenue of the Benelux areawas driven mainly by TechnologyManagement & Financing in the Netherlands,despite strong performance by the DigitalServices & Solutions business.

The decrease in revenue in Southern Europewas due mainly to Technology Management& Financing activities, which represent asignificant portion of the business in thisregion.

Northern and Eastern Europe posted adecline in organic growth, due mainly to theUK Technology Management & Financingbusiness, while Digital Services & Solutions inGermany recorded revenue of growth.

The Americas region was down more sharplydue to delays in the delivery of major projectsin Digital Services & Solutions and delaysin contract signing in the TechnologyManagement & Financing business.



Statement of financial position2.2.

in € millions 31 December 2020 31 December 2019

Goodwill 499.5 512.9

Other long-term assets 167.9 182.7

Residual interest in leased assets 175.2 165.0

Other non-current assets 62.3 51.0

Trade and other receivables(1) 894.1 1,093.7

Other current assets 137.0 136.6

Cash and cash equivalents 649.3593.8

Assets held for sale 74.3 201.1

Total assets 2,659.8 2,936.8of which self-funded outstanding rentals: €185.9 million at 31 December 2020 versus €238.5 million at(1)

31 December 2019.


Equity attributable to owners of the parent 406.1 410.2

Non-controlling interests 66.9 73.7

Total equity 472.9 483.9

Bonds(1) 388.6 441.4

Financial liabilities(1) 240.5 404.6

Provisions 91.0 73.2

Gross liability for purchases of leased assets 103.7 101.5

Trade and other payables 992.1 980.6

Other liabilities 341.4 368.3

Liabilities held for sale 29.5 83.2

Total equity and liabilities 2,659.8 2,936.8Taking into account the cash and cash equivalents of €649.3 million as of 31 December 2020 (and €593.8 million as of(1)

31 December 2019) and bonds and financial debt, the balance sheet shows a cash surplus of €20.2 million at31 December 2020 (compared to net debt of €252.2 million at 31 December 2019); these financial liabilities include inparticular €185.9 million at 31 December 2020 (and €238.5 million at 31 December 2019) corresponding to own-bookedTMF contracts and the expected associated lease payments.



The statement of financial position below expresses this more concisely:

by posting the positive cash and cash equivalents from bond debt and other financial•liabilities in liabilities to show net book debt directly on this side of the balance sheet for theshare of TMF self-funded contracts;

by showing trade receivables on the asset side and net debt in liabilities for the share of TMF•self-funded contract.


ASSETS

Goodwill 499.5 512.9

Other non-current assets 230.2 233.7

Residual interest in leased assets 175.2 165.0

Trade and other receivables 894.1 1,093.7

of which outstanding on self-funded contracts 185.9 238.5

Other current assets 137.0 136.6


Total assets 2,010.5 2,343.0


LIABILITIES

Equity 472.9 483.9

Net financial debt (20.2) 252.2

of which net debt linked to self-funded contracts 185.9 238.5

of which net debt – other (206.1) 13.7

Gross liability for purchases of leased assets 103.7 101.5

Other non-current liabilities 155.2 131.0

Trade payables 992.1 980.6

Other current liabilities 277.3 310.5


Total equity and liabilities 2,010.5 2,343.0



Goodwill

Goodwill amounted to €499.5 million, down€13.4 million compared with the previousyear. This decrease is due mainly to thereclassification of the goodwill operationsheld for sale, recognition of goodwill as aresult of the acquisition of Les Abeilles in theamount of €2 million as well as the disposalscarried out during the year.

Equity

interests for approximately -€5.5 million. Netincome for the year nearly offsets theamount paid in dividends and the equitytransactions carried out during the year.

Total equity stood at €472.9 million, downslightly by €11.0 million compared withend-2019. This decrease is mainly attributableto the change in currency translationreserves for approximately -€4.2 million andto the transactions recognized in equity inrespect of transactions with non-controlling

At 31 December 2020, Econocom groupheld 9,779,167 treasury shares valued at€24.2 million not recorded in its balancesheet (at the share price on 31 December2020, i.e. €2.475).

The breakdown of equity attributable toowners of the parent and the shareattributable to non-controlling interestsfluctuated due to acquisitions: accordinglythe share non-controlling interests were€66.9 million versus €73.6 million at31 December 2019.

Net financial debt

At 31 December 2020, the Groups net cash surplus stood at -€20.2 million compared to netfinancial debt of €252.2 million at the end of 2019. This surplus broke down as follows:

in € millions 2020 2019

Cash and cash equivalents 649.3 593.8

Bank debt and commercial paper (156.7) (310.3)

Net cash at bank 492.7 283.6

Convertible bond debt (OCEANE) (182.2) (189.2)

Non-convertible bond debt (Euro PP) (56.3) (102.3)

Non-convertible bond debt(Schuldschein) (150.0) (149.9)

Other (83.8) (94.3)

Net financial debt - (252.2)

Net cash surplus 20.2 -

This cash surplus corresponds to the amount after financing of TMF self-funded contracts inthe amount of €185.9 (vs. €238.5 in 2019).



Appendix – Definition of key performance indicators

Performance indicators not defined byaccounting standards but used byEconocom group to assist the reader inassessing the Group’s economic andfinancial performance are as follows:

Profit (loss) from continuing operations

Profit (loss) from continuing operationsincludes all income and expenses directlyrelated to the Group’s operations, whetherrecurring or not. It excludes othernon-current income and expenses.

Profit (loss) from continuing operationsbefore amortisation of intangible assetsfrom acquisitions

Recurring operating profit beforeamortisation of intangible assets fromacquisitions measures the level of operatingperformance after the amortisation ofintangible assets acquired through businesscombinations. At 31 December 2018, themain acquisitions of intangible assets madeby the Group and whose amortisation is nottaken into account for the determination ofthis aggregate are primarily the ECScustomer portfolio and the Osiatis brand.

Econocom uses recurring operating profitbefore amortisation of intangible assetsfrom acquisitions as the main indicator tomonitor the operational performance of itsbusinesses.

Other non-recurring operating incomeand expenses

assets, the results of significant disposals offixed assets, restructuring expenses, costsrelating to workforce adjustment measures,costs of relocating premises, changes in thevalue of acquisition-related liabilities(earn-out payments), as well as costs relatedto the various external growth transactions.

“Other non-recurring operating income andexpenses” include items that, by theirfrequency, amount or nature, are liable toundermine the pertinence of the Group’soperating performance as a performanceindicator. “Other non-recurring operatingincome and expenses” include impairmentlosses on goodwill and other intangible

EBITDA (Earnings before Interest, Tax,Depreciation and Amortisation)

The Group also uses an intermediatemanagement balance known as “EBITDA”.This financial indicator corresponds torecurring operating profit adjusted fordepreciation and amortisation, additions toand reversals of provisions for assetimpairment and provisions for contingenciesand losses, and net impairment losses oncurrent and non-current assets recognisedin recurring operating profit.

Recurring profit attributable to owners ofthe parent

Since the first half of 2016, recurring netprofit attributable to owners of the parenthas been the key performance indicatorused by Econocom to assess its economicand financial performance. Recurringearnings for the year attributable to ownersof the parent corresponds to profit for theyear attributable to owners of the parent,before the following items:

amortisation of intangible assets from•acquisitions (in the year ended31 December 2018, mainly amortisation ofthe ECS customer portfolio), net of taxeffects;

other non-recurring operating income and•expenses, net of tax effects;

non-recurring financial income and•expense, net of tax effects;

profit (loss) from discontinued operations,•net of tax effects.



Net and gross debt

The definition of net debt used by the Group(see note 14.3 to the consolidated financialstatements) is gross debt (presented below)less gross cash and cash equivalents. It doesnot include the Group’s gross liability forpurchases of leased assets or its residualinterest in leased assets.

Gross debt includes all interest-bearing debtand debt incurred by receiving financialinstruments.

Parent company 2020 2.3.financial statements of Econocom group SEEconocom group SE, as the Group’s holdingcompany, manages a portfolio of securities,receives dividends from its subsidiaries andoversees the Group’s development.

It also provides services to the Group’ssubsidiaries in the areas of management, IT,cash, guarantees, provision of staff,consulting, communication and marketing.These services are billed according to normalmarket terms.

The revenue stated hereafter refers toEconocom group SE’s parent companyfinancial statements, prepared in accordancewith Belgian legislation.

INCOME STATEMENT 2.3.1.OF ECONOCOM GROUP SE

The cost of services rendered to the Group’ssubsidiaries during the year totalled€15.9 million, compared with €23.5 million inthe previous year.

Operating profit for the year amounted to-€9.6 million, compared with €2.6 million in2019. In 2020 it included non-recurringoperating expenses of €5.1 million.

Recurring financial income totalled€22.1 million, compared with €19.5 million in2019. It consists mainly of dividends receivedfrom subsidiaries in the amount of€25.0 million (compared to €18.7 million in2019), income net of interest and guaranteecommissions invoiced to the subsidiaries inthe amount of €7.5 million (compared with€12.8 million in 2019), and the cost of externaldebt in the amount of €10.3 million(compared with €11.7 million in 2019).

Non-recurring financial income totalled€1.2 million (compared to a net expense of€39.4 million in 2019). It mainly includes thecapital gains on the disposal of companiesand the gain resulting from the partialbuybacks of convertible bonds during theyear as well as a decrease in the value ofequity investments. Conversely, 2019 financialincome included capital and impairmentlosses on the disposal equity interests in theamount of €16.5 million and on treasuryshares.

Income tax expense came to €0.3 million.

Net profit totalled €13.3 million, comparedwith a loss of €19.1 million in the previousyear.

BALANCE SHEET 2.3.2.OF ECONOCOM GROUP SE

Econocom group SE’s equity stood at€276.9 million, compared with €349.0 millionin 2019. This change is attributable to thecancellation of treasury shares decided bythe General Meeting of 19 May 2020 for a netamount of €59.6 million, the dividend paid inNovember 2020 in the amount of 25.7 millionand the profit for the year (a positive amountof €13.3 million).



Financial liabilities (non-Group) totalling agross amount of €508.4 million correspondto the EURO PP of €56.4 million (issued inMay 2015 for which there is only one moreinstalment due to the repayment madeduring the year the Schuldschein note of€150.2 million (issued in November 2016with maturities of five and seven years), theOCEANEs worth €182.9 million issued inMay 2018 with maturities of five years andthe commercial paper programme worth€119.0 million (with short-term maturities ofbetween one and three months).

Receivables and equity investments inrelated parties increased by €19.4 million to€1,036.0 million due to new equityinvestments for the amount of €84.9 millionfor repayments of receivables carried outimpairments, and disposals (see below).

SHARE CAPITAL2.3.3.

At 31 December 2020, Econocom group’sshare capital totalled €23,512,749.67, dividedinto 220,880,430 shares with no nominalvalue.

Changes in share capital since 2011 haveconsisted of (i) share capital increases inconnection with the exercise of stock optionsby the Group’s managers and (ii) sharecapital increases either as part of externalgrowth transactions to fund a portion of theacquisition price or as a result of theconversion of bonds.

The only items that could have an influenceon Econocom group’s share capitalcorresponding to the 2014 and 2017 stockoption plans and the OCEANE convertiblebond issued on 1 March 2018.

In December 2014, the Board of Directorsapproved a stock option plan (“2014 StockOption Plan”) and decided to issue, withcancellation of shareholders’ pre-emptivesubscription rights, 2,500,000 stocksubscription rights entitling the holders tosubscribe, under certain conditions, to a newEconocom group share. The CompensationCommittee had two years to determine thebeneficiaries of the 2014 Stock Option Plan.

A total of 2,480,000 stock options weregranted to approximately 20 of the Group’smanagers under the 2014 Stock OptionPlan. At 31 December 2020, taking intoaccount the options lapsed due todepartures and failure to meet performanceconditions, a total of 2,041,420 of the2014 stock options were still exercisable,which correspond to the maximum issue of4,082,840 new shares, each option entitlingholders to two Econocom group sharesfollowing the two-for-one split that tookplace in June 2017.

In June 2017, the Board of Directors alsoapproved a stock option plan (“2017 StockOption Plan”) and decided to issue, withcancellation of shareholders’ pre-emptivesubscription rights, 2,000,000 stocksubscription rights entitling the holders tosubscribe, under certain conditions, to a newEconocom group share. The CompensationCommittee had until 31 December 2019 todetermine the beneficiaries of this plan. At31 December 2020, taking into account theoptions forfeited by beneficiaries, thenumber of 2017 stock options allocatedamounted to 90,000 corresponding to amaximum issue of 90,000 new shares.

On 1 March 2018, Econocom launched theissuance of convertible bonds and/orexchangeable for new and/or existing shares(OCEANE) with a par value of €200 million,maturing in 2023. The holders of Bonds willhave a right to the award of Shares that theymay exercise at any time from the Issue Date(i.e. 6 March 2018) and until the 8th businessday (inclusive) preceding the normal or earlyredemption date on the basis of a conversionor exchange ratio of one Econocom Shareper Bond and subject to any subsequentadjustments. In the event of request ofconversion of Bonds, the Bond holders willreceive, at Econocom’s discretion, newand/or existing shares of Econocom.Following the bond buybacks in 2020, thereare currently 22,874,865 bonds outstanding.If all the bonds were converted (if theconversion price of €8.26 was reached) intonew shares, according to the current



conversion ratio of 1 share for 1 bond,22,874,865 new shares would be issued.

Finally, the Extraordinary General Meeting of19 May 2020 renewed, for a five-year period,the authorisation given to the Board ofDirectors, in accordance with articles 7:198and 7:199 of the CSA to carry out one or morecapital increases of up to a maximum totalamount of €23,512,749.67 (excluding issuepremiums). At 31 December 2020, authorisedunissued share capital (excluding issuepremiums) stood at €23,512,749.67.

The Company’s ownership structure isdescribed in section 5, “Corporategovernance statement”.

Treasury shares

Econocom group has a share buybackprogramme, which allows it to:

deliver shares to avoid potential dilution of•shareholders’ interests due to the exercise ofoptions;

award to free share plan beneficiaries;•

pay for any external growth transactions;•

cancel shares acquired.•

The Extraordinary and Special GeneralMeeting of 19 May 2020 renewed for afive-year period the authorisation given tothe Board of Directors to buy back treasuryshares. The minimum unit purchase pricewas set at the equivalent of €1 and themaximum unit price at €10.

The maximum number of shares to bepurchased throughout the five-year period is44,176,086. Since the beginning of thebuyback programme, 7,998,561 shares havebeen acquired at 31 December 2020.

In 2020, the following treasury sharemovements took place:

Econocom group acquired 10,871,023•Econocom group shares, for an acquisitionprice of €25.6 million;

Econocom group cancelled 24,500,000•shares, in accordance with the decision ofthe Extraordinary General Meeting of 19 May2020;

Econocom group transferred 50,000•treasury shares to a Free Share Planbeneficiary.

As at 31 December 2020, Econocom groupheld 9,779,167 treasury shares acquiredunder its share buyback program. Thetreasury shares represent 4.43% of the totalnumber of shares issued.

The voting rights associated with the sharesheld by the Company have been suspended.The shares held by the Company do not giveentitlement to dividends.

Econocom group’s distributable reserves(statutory data) stood at €0.4 million, inaddition to retained earnings in the amountof €30.4 million.

Econocom group’s non-distributable reservesstood at €25.3 million in addition to restrictedissue premiums in the amount of €194.7million.



BUSINESS OVERVIEW2.3.4.

Acquisitions, disposals, equity investments and formations of 2.3.4.1.subsidiaries

In 2020, Econocom group acquired additionalequity investments in some of its satellitesthrough buybacks of non-controlling interestsand carried out disposals as part of theGroup’s transformation plan.

Thus, the Econocom group exercised itsoptions in order to strengthen its stake inAltabox.

It sold its stake in Digital Security.

Moreover, as part of the management of itssubsidiaries and the Group organisationchart:

Econocom group acquired from Econocom•International Italia, its equity investments inAsystel Italia and Bizmatica. In addition,Econocom group acquired from itssubsidiary Digital Dimension all the stock inthe Spanish company Econocom Nexica;

Econocom also subscribed to the capital•increases carried out by its subsidiariesEconocom International Italia andEconocom do Brasil.

Legal reorganisation2.3.4.2.

As is the case each year, Econocom groupimplemented measures to streamline andsimplify its legal organisation.

Measures performed in 2020 were aimed atcombining companies with similar activitiesin the same country. In France, Alter Waythus merged its two operating subsidiaries.

Moreover, in order to streamline and simplifyits organisation chart, the Group closeddown or liquidated certain subsidiaries inSpain, France and Belgium.

As a result of the reorganisations carried outin 2020, the number of legal entities withinthe Group was reduced thereby streamliningthe Company organisation.


05management reportrisk factors and disputes

Risk factors and disputes3.Risk factors did not change significantly in 2020. They are described in note 19.

Outlook for 2021 4.and shareholders’ compensationOver the last two years, Econocom hasfocused on a transformation plan for itseconomic tool in order to gain agility,flexibility and competitiveness. Thisconsolidation phase was a necessarycondition for preparing the Group’s futureunder the best possible conditions. Thetargets set for reducing structural costs,streamlining the business portfolio andreducing the Group’s substantial debt wereachieved in 2020.

In 2021, the Management of the Econocomgroup will continue to pay particularattention to generating cash and maintainingrigorous cost management.

As a result of the Group’s strong financialposition, the Board of Directors willrecommend to the General Meeting toproceed with a refund of the issue premium,considered as paid-in capital, in the amountof €0.12 per share.

This refund represents stability compared torecent years.

Moreover, the Group plans to continue sharebuybacks.

Given the persistence of a wait-and-seemarket and an economic environment stillimpacted by the health crisis, the first quarteris expected to follow the trend of the lastquarter of 2020. However, the Groupconfirms its objective of a return to growthfor 2021.


05 management reportcorporate governance statement

Corporate governance 5.statement

Applicable Corporate 5.1.Governance CodeThe Econocom group confirms its adherenceto the principles of the Belgian CorporateGovernance Code, which entered into forceon 1 January 2020 ("2020 Code"). This Code isavailable at:

www.corporategovernancecommittee.be

Econocom publishes the various InternalRules (in French only) that comprise itsCorporate Governance Charter on its website:

www.econocom.com under Investors/Governance/Board of Directors and ExecutiveCommittee.

The Board of Directors adheres to theCorporate Governance Code. Thetransformation of Econocom group into aEuropean company (societas europaea) on18 December 2015 prompted the Board ofDirectors to change the Internal Rules of theBoard of Directors and the ExecutiveCommittee on 19 May 2016. The ExecutiveCommittee’s Internal Rules again changed on7 September 2016, and the Committee wasrenamed the Executive Committee at thattime. In connection with the change in itscorporate governance, the Econocom groupon 23 January 2020 was required to amendthe Internal Rules of its Audit Committee andits Compensation Committee. The latter wasrenamed “Compensation and AppointmentsCommittee” on that occasion.

Exemptions from 5.2.the 2020 CodeEconocom group applies therecommendations of the 2020 Code, exceptfor those which the Board has deemedill-suited to Econocom group’s size, or that itintends to implement over the long term.The principles with which Econocom groupdoes not comply, in whole or in part, aredescribed below.

The Group currently only partially appliesthe recommendations of Principle 3 of the2020 Code.

Econocom International BV, represented byJean-Louis Bouchard, combines the roles ofChairman of the Board of Directors,managing Director and Chairperson of theExecutive Committee. In this respect, theGroup does not respect the segregationprinciple between the supervisory power ofthe Board of Directors and the executivepower. On 31 December 2020, EconocomInternational BV directly and indirectly held40.36% of the share capital of Econocomgroup. Such a system meets thecharacteristics of Econocom group’sshareholdings and is aimed at ensuringmanagement stability as Econocomimplements its long-term strategy.

Furthermore, the Board of Directors has notyet formally appointed a Secretary in chargeof advising it on governance matters.However, this role is partly performed byAntoinette Roche, Group Legal Director.


05management reportcorporate governance statement

Since 23 November 2017, one-third of themembers of Econocom group’s Board ofDirectors have been women, pursuant to theconditions set out in article 7, section 86 ofthe CSA. At 31 December 2020, the Board wasmade up of three women: Véronique diBenedetto, whose term was renewed at theOrdinary General Meeting of 16 May 2017,Adeline Challon-Kemoun, and Marie-ChristineLevet, whose terms were renewed at theOrdinary General Meeting of 19 May 2020.

Econocom Group only applies part of therecommendations in Principle 5 of the 2020Code, which state that "the Company mustuse a transparent procedure for appointingBoard members", because it deems that therecommendation of the 2020 code is ill-suitedto Econocom group's size. However, on23 January 2020, the Board of Directorschanged the Compensation Committee into aCompensation and Appointments Committee,in charge of suggesting appointments andformulate recommendations to the Boardof Directors on appointments andreappointments of corporate officers andcertain executive managers.

Econocom Group only partially complies withthe new recommendations of Principle 7 onthe compensation of Board membersand executive managers. The Group’scompensation policy is set out in thecompensation report.

The Chairman of the Board of Directors doesnot systematically attend General Meetings,contrary to the recommendations ofPrinciple 8 of the 2020 Code, but he ensuresthat the Board of Directors is alwaysrepresented by one Director.

Charter, but in the Management Report andupdated each year.

Information about the main shareholders ofEconocom group and their relationship witheach other and the Company, are notpublished in the Corporate Governance

Econocom Group has not formalised theprocedures for assessing the performance ofits governance, thereby departing fromPrinciple 9 of the 2020 Code, insofar as theassessment of the performance of itsexecutive management and Board ofDirectors is part of an ongoing process thatdoes not require any specific formalities.

Description 5.3.of internal control and risk management procedures in the context of the preparation of the financial informationThe financial information communicated bythe Group refers to its consolidated financialstatements and to the managementaccounting aspects of the financialstatements published in compliance withIFRS as adopted by the European Union andapproved by the Board of Directors.

This financial information is, at everyreporting date, presented to the Group’sAudit Committee, and explained to all theDirectors.

FINANCIAL ORGANISATION5.3.1.

The Group’s financial organisation is bothlocal and global. The Group is organised bybusiness line and country. Financialprocesses are implemented by financeteams, Finance Directors and financialcontrollers, all of whom report to the GroupChief Financial Officer. Business and countryFinancial Controllers ensure that thereporting rules and practices are appliedconsistently across the business lines,irrespective of the country.



COORDINATION OF 5.3.2.REPORTING AND CONSOLIDATION

The accounts are consolidated by adedicated team on a quarterly basis. Theconsolidated companies send their detailedfinancial statements via the consolidationtool for inclusion in the consolidatedfinancial statements.

Each entity (i.e., company or business unit)draws up a budget. Profit forecasts areadjusted several times during the year andare monitored on a monthly basis based onthe activity reports provided to GroupManagement. These reports are drawn upjointly by the Head of Operations and theFinancial Controller of the entity.

The Group’s Financial Controlling draws upschedules and specific instructions for thevarious budgets, reports and the itemsneeded for the purpose of consolidation.

ACCOUNTING STANDARDS 5.3.3.AND MONITORING

The Group’s accounting principles are setout in an accounting principles manualwhich is used as the basis for preparingfinancial information. This manual describesthe method for recording transactions andpresenting financial information.

The team in charge of consolidation is alsoresponsible for keeping abreast of changesto IFRSs.

IT SYSTEMS5.3.4.

The Information Systems Departmentoversees the various information systemsused by the Group. It ensures the gradualharmonisation of the solutions implementedand the continuity of operations. In thepreparation of financial information,information flows from IT tools specific to thevarious businesses are centralised in a singleaccounting management and reportingsolution.

Following the security attack suffered byEconocom in the autumn of 2020 on part ofits own infrastructures and despite the lowimpact of this attack on the Group’s business(see latest information note published on7 January 2021 on the Group’s website,News/Publications section), the InformationSystems Department took the necessarytechnical and legal measures to remedy theincident, mitigate the risks and protect theinterests of stakeholders by alerting thecompetent authorities. In addition, theInformation Systems Department constantlyendeavours to increase the security of theGroup’s IT infrastructures.

RISK FACTORS, 5.3.5.SURVEILLANCE AND MONITORING

The monthly reports enable the variousoperational and financial managers and theGroup’s Management to verify that theGroup’s results are accurate and consistentwith the targets set. At the end of eachmonth, they contain a comparison betweenthe management data and the Group’sconsolidated financial statements in order toensure that the financial information isreliable.

The Group’s Internal Audit Department(outsourced) completes the risk organisation,and is in charge inter alia of drawing up arisk map. It also reviews the subsidiaries’financial statements in order to ensure thatthey comply with Group rules, and verifiesthat the reports are accurate and that risksare adequately covered. The Group’s InternalAudit Department reports directly to theChairman and the Audit Committee.

When identifying risks that may impact theachievement of financial reporting objectives,Group Management takes into account thepossibility of misrepresentations and fraud,and undertakes the required actions tostrengthen internal control, if necessary. TheInternal Audit conducts specific audits, onthe basis of the assessment of potential fraudrisks, in order to avoid and prevent fraud. Anyfindings are systematically reported to theAudit Committee.



Risks associated 5.3.5.1.with accounting systems

Risks associated with accounting systemsare assessed on a regular basis with a viewto implementing improvement plans.

The accounting systems used within theGroup have now been harmonised, and areshared by all business lines and subsidiariesexcept the Satellite companies in which theGroup has acquired stakes, some of whichstill use software other than that usedelsewhere in the Group, more adapted totheir size.

The various business line IT systems areinterfaced with the accounting system inorder to ensure that information ontransactions is traceable, comprehensiveand reliable.

The consolidation system is a standard tool.

Risks associated 5.3.5.2.with accounting standards

organises training for finance staff whenevernecessary.

The Consolidation Department, inconjunction with the Group FinancialControlling Department and the Businessand Country Financial Controllers, monitorschanges in IFRSs and adapts the Group’saccounting principles accordingly. It also

Main transaction control 5.3.5.3.procedures

In order to ensure the reliability of thefinancial information on transactions, theGroup's Finance Department team verifieseach month that the revenue and costsreported are in line with the flows expected atthe time the transactions were approved.

The Group Financial Controlling draws upregular statistical analyses to ensure thatthe assumptions made when the leasecontracts were recorded are prudent andappropriate.

The subsidiaries’ Financial Controlling teamsalso carry out monthly verifications for eachbusiness line.

PERSONS RESPONSIBLE FOR 5.3.6.THE PREPARATION OF FINANCIAL INFORMATION

The financial information is prepared underthe supervision and responsibility of theBoard of Directors, which, since 2004, hashad an Audit Committee, the role of which isset out in section 5.5.3 below.

Ownership structure and limits on shareholder 5.4.rightsAt 31 December 2020, Econocom group’s share capital consisted of 220,880,430 shares,held as indicated below:

2020 2019

Companies controlled by Jean-Louis Bouchard 40.36% 36.44%

Public shareholders 55.21% 54.00%

Treasury shares 4.43% 9.56%

Total 100% 100%



Econocom group is informed that twoshareholders outside the companiescontrolled by Jean-Louis Bouchard, crossedthe 5% share-ownership threshold as at31 December 2020. They are Butler IndustriesBenelux (and indirectly WB Finance andWalter Butler) and the US company FMR LLC(FIAM LLC, FMR Co., Inc. and FidelityInstitutional Asset Management TrustCompany).

There are no shareholders with specialcontrolling rights.

The Extraordinary General Meeting of 19 May2020 decided to implement a double votingright for registered shares held for morethan two years. Accordingly, each Econocomgroup share gives its holder the right to casta vote or, where applicable two votes atGeneral Meetings.

Article 10 of the Company’s Bylaws providesthat the exercise of the voting rights andother rights attached to shares held inco-ownership or in which the usufruct andthe bare ownership have been separated, orwhich are pledged, shall be suspended untilsuch time as a sole representative has beenappointed to exercise the rights attached tothe shares in question. Treasury shares(4.43%) and shares held by the BelgianCaisse des Dépôts et Consignations (0.49%belonging to bearer shareholders who didnot come forward when the Belgian StockMarket converted to electronic shares) alsohave no voting rights. There are no otherparticular legal or statutory restrictions withrespect to voting rights.

Similarly, with the exception of theprovisions limiting purchases and sales byEconocom group of its treasury shares, theCompany’s Bylaws do not impose anyrestrictions on the transfer of its shares.

The composition 5.5.and functioning of the administrative bodies and Committees

COMPOSITION 5.5.1.OF THE BOARD OF DIRECTORS

At 31 December 2020, the Board of Directorshad nine members:


(term of office expires at the May 2024General Meeting)

Rond Point het Fort 36-40, 2429 MK Nieuwegein (Netherlands)

Chairman of the Board of Directors and Chief Executive Officer of Econocom group

Robert Bouchard


11 Boulevard Flandrin, 75116 Paris (France)

Vice-Chairman of the Board of Directors of Econocom group and non-executive Director of Econocom group

Bruno Grossi


13 Rue Molitor, 75016 Paris (France)

Non-executive Director of EconocomGroup



Véronique di Benedetto


86 Rue Miromesnil, 75008 Paris (France)

Non-executive Director of Econocom group

Gaspard Dürrleman


32 Avenue Rapp, 75007 Paris (France)


Jean-Philippe Roesch


21 Avenue de la Criolla, 92150 Suresnes (France)


Walter Butler


30 Cours Albert 1er, 75008 Paris (France)

Independent Director of Econocom group

Adeline Challon-Kemoun

(term of office expires at the May 2024 General Meeting)

32 Avenue Duquesne, 75007 Paris (France)


Marie-Christine Levet

(term of office expires at the May 2024 General Meeting)

91 Rue du Cherche-Midi, 75006 Paris (France)


At 31 December 2020, the Board of Directorsaccordingly comprised:

an Executive Chairman, Econocom•International BV (represented by Jean-LouisBouchard) appointed on 19 May 2020 toreplace Jean-Louis Bouchard. He is taskedwith managing the Board of Directors andensuring its efficient running, by monitoringits size and members and those ofits Committees, and ensuring goodcommunication with the ExecutiveCommittee to guarantee effectivedecision-making. The Committee appointsthe Chairman from among the Vice-Chairs;

a Vice-Chairman, Robert Bouchard. The•General Meeting of 19 May 2015 voted toestablish a mandate for the Vice-Chairmanof the Board, and on 21 May 2015 the Board ofDirectors appointed Robert BouchardVice-Chairman of the Board until the end ofhis term of office. The Board appoints one ormore Vice-Chairs from its members. In theevent that the Chairman is unable to attend,the Vice-Chair chairs the Board meetings;

a managing Director in charge of day-to-day•management of Econocom group,Econocom International BV (appointed on19 May 2020);

five non-executive Directors, Véronique•di Benedetto, Robert Bouchard, Jean-PhilippeRoesch, Bruno Grossi and Gaspard Dürrleman.Véronique di Benedetto exercised operationalfunctions within Econocom group companiesat 31 December 2020. However, she is notconsidered to be an executive Director, as thisstatus is reserved for Directors holdingexecutive positions at Econocom group itself,in accordance with a decision of the Board ofDirectors dated 24 November 2016;

three independent Directors within the•meaning of article 7:87 §1 and §2 of the CSA,Adeline Challon-Kemoun, Marie-ChristineLevet and Walter Butler.



The Bylaws do not contain any special rulesfor appointing Directors or for renewingtheir term of office. Nor do they impose anyage limit on the Board.

Pursuant to a decision of the Extraordinaryand Special General Meeting on 18 December2015, the term of office for Directors has beenreduced from six to four years in order tocomply with the recommendations of theCorporate Governance Code.

Other than their office on the Board ofDirectors of Econocom group, certainDirectors have other offices, as set out below.

Econocom International BV is controlledand represented by Jean-Louis Bouchard.He also has controlling interests in anumber of companies outside Econocomgroup and serves as Legal Manager orChairman within them. Jean-LouisBouchard is Chairman of ChâteauFontainebleau du Var, and Legal Managerof SCI Orphée, SCI de Dion Bouton, SARLÉcurie Jean Louis Bouchard, SCI JMB, SCILBB, SNC Fontainebleau International andSCI 1 Montmorency.

In addition to serving on the Board ofEconocom group and its subsidiaries, BrunoGrossi is Legal Manager of Vilnaranda II andRedwood Advisors, Chairman of Visiond’Entreprise and Director of Araxxe.

Robert Bouchard is the permanentrepresentative of GMPC, the legal entitythat chairs APL France. He also serves asChairman of Ecofinance SAS, LegalManager of GMPC and Co-manager of SCIMaillot Pergolèse.

Véronique di Benedetto is Chairwomanof SAS Numeya. She is also an independentDirector of Hexaôm, and serves on theBoards of a number of associations including“Syntec Numérique” (French professionalfederation of members of the digitalindustry) and “100,000 entrepreneurs”.

In addition to her corporate officer roles atEconocom group and its subsidiaries,

Gaspard Dürrleman is a director of SA DesFilatures & Tissages Jules Tournier & Fils.

Jean-Philippe Roesch is Legal Manager of LaCriolla and Chairman of Orionisa Consultingand member of the Supervisory Board ofLinkfluence SAS.

Walter Butler is Chairman and Chiefmanaging Director of Butler Industries,Butler Capital Partners and WB DebtPartners, Legal Manager of SCI 30 Albert 1er,Chairman of Amstar Entreprises and FBTDéveloppement, Nexis Fiber Holding, EdenInnovations and Doc, Chairman of the Boardof Directors of NXO Expansion, Chairman ofthe Supervisory Board of NXO France,member of the Supervisory Board of GroupePartouche and Corum Asset Management,Director of Butler Industries Benelux, NXOExperts and NXO Sécurité, and Director ofButler Investment Managers Limited, ButlerManagement Limited, Almas Industries Ltdand Almas Industries UK. Walter Butler isalso the permanent representative of ButlerCapital Partners in his capacity as memberof the Supervisory Boards of AccessIndustries and Colfilm, and as Director ofHolding Sports et Évènements.

Adeline Challon-Kemoun is a Director ofBourbon Corporation.

Marie-Christine Levet is a Director ofMaisons du Monde, SoLocal and AFP.



FUNCTIONING OF THE BOARD OF DIRECTORS5.5.2.

The Board of Directors meets as often as it deems necessary. It met nine times in 2020. Italso made an unanimous written decision.

The table below sets out the attendance of each Director at meetings of the Board and thevarious Committees in 2020:

Boardof Directors Audit Committee

Compensationand

AppointmentsCommittee

Econocom International BV 5 - -

Robert Bouchard 9 - 1

Bruno Grossi 9 - -

Véronique di Benedetto 8 - -

Gaspard Dürrleman 9 8 -

Jean-Philippe Roesch 9 7 -

Walter Butler 6 6 -

Adeline Challon-Kemoun 7 - 1

Marie-Christine Levet 9 8 1

Rafi Kouyoumdjian 1 1

Jean-Louis Bouchard 4 -

Total number of meetings 9 8 1

The Board of Directors is responsible forapproving the Company’s overall strategyproposed by the Chairman, authorisingsignificant projects and ensuring that thereare adequate resources to attain itsobjectives. It is entrusted withdecision-making outside the scope ofday-to-day management.

of the Executive Committee. It also entruststhe day-to-day management to the ChiefExecutive Officers or, if applicable, themanaging Directors.

The Board of Directors entrusts theCompany’s operational management to theExecutive Committee, within the limits ofthe powers stipulated in the Internal Rules

The Board appoints the members of theExecutive Committee, the Audit Committeeand the Compensation and AppointmentsCommittee as well as the Chief ExecutiveOfficer(s), and generally ensures that a clearand effective management structure isimplemented.



It also oversees the quality of themanagement duties performed and ensuresthat they are consistent with the Group’sstrategic objectives. To that end, it receivesinformation every quarter including thebudget and revisions thereto, a consolidatedsummary of the quarterly report and anyother information it deems useful.

The Board may only validly debate and takedecisions if at least half of its members arepresent or represented. Decisions areadopted on the basis of a majority of votes. Inthe event of a split decision, the personchairing the meeting has the deciding vote.In exceptional circumstances, when urgencyand the best interests of the Company sodictate, decisions may be adopted pursuantto the unanimous consent of the Directors,expressed in writing. However, this proceduremay not apply in relation to the approval ofseparate financial statements financialstatements and the issuance of authorisedcapital.

COMMITTEES CREATED 5.5.3.BY THE BOARD OF DIRECTORS

Pursuant to the Bylaws, the Board ofDirectors is authorised to set up specificCommittees and to determine their tasksand operating rules.

Executive Committee5.5.3.1.

The Board of Directors has set up anExecutive Committee, whose creation wasratified by shareholders at the ExtraordinaryGeneral Meeting of 18 May 2004.

Following the transformation of Econocomgroup into a European company, the Boardof Directors revised the Internal Rules ofthe Executive Committee on 19 May 2016and 7 September 2016.

The Board entrusted the ExecutiveCommittee with Econocom’s operationalmanagement, in accordance with article 15section 18 of the CSA and article 21 of theBylaws.

The role of the Executive Committee is torecommend strategic guidelines for theGroup, implement the strategy chosen bythe Chairman and approved by the Board ofDirectors, approve the budgets accordingly,manage the Group’s operationaldepartments (within the scope of the powersof their governing bodies) and monitor theirfinancial and operating performance.

The composition of the new ExecutiveCommittee appointed on 28 January 2019by the Board of Directors was modifiedduring the year. As of 31 December 2020,was composed of the following members:Econocom International BV, representedby Jean-Louis Bouchard, Éric Bazile, AngelBenguigui, Laurent Caparros, PhilippeGoullioud, Laurent Roudil and Chantal deVrieze.

The Executive Committee meets at leastten times a year.

Compensation and 5.5.3.2.Appointments Committee

On 31 August 2011, the Board of Directorsset up a Compensation Committee.

On 23 January 2020, the Board of Directorsextended the Compensation Committee’sresponsibilities to Appointments, therebylimiting its scope of action to corporateofficers and executives authorised in fact orin law to use the Group’s signature.Members of the Executive Committee whoare not involved in the Group’s SeniorManagement do not fall within the scope ofthe Committee’s activities.

The main role of the Compensation andAppointments Committee is to advise andassist the Board of Directors. It is also incharge of tasks assigned to it by the Board ofDirectors in the area of Compensation andAppointments. The Committee fulfills itsduties under the responsibility of the Boardof Directors. In this context, it ensures freeand open communication with the Chairmanof the Board and executive management.



The Committee has three membersappointed by the Board of Directors forthree-year terms that cannot exceed theirterm as Directors. As of 31 December 2020,it was composed of the followingmembers: Marie-Christine Levet, AdelineChallon-Kemoun and Robert Bouchard andwas chaired by Marie-Christine Levet.

The Committee met once in 2020.

Audit Committee5.5.3.3.

The Audit Committee was created by theBoard of Directors on 18 May 2004.

The term of office is three years, providedthat it does not exceed the holder’s term ofoffice as Director.

The Audit Committee meets as often asrequired. It met eight times in 2020, with allmembers in attendance (as stated insection 5.5.2 above), an executive Director,the Group Chief Finanial Officer, the GroupLegal Director and the Head of Risk andCompliance. The members of the AuditCommittee invite the Statutory Auditor andany other person deemed useful by theCommittee as required by the agenda.

The Audit Committee is responsible forhelping the Board of Directors perform itsduty of controlling Econocom group’soperations. In particular, it examines thequality and relevance of internal andexternal audit engagements, monitorsinternal control and risk managementprocedures, ensures that the accountingpolicies used are appropriate, and that theGroup’s financial data are complete andaccurate.

Article 3:6 of the CSA stipulates thatcompanies must be able to demonstrate theindependence and audit and accountingexpertise of at least one of the members ofthe Audit Committee. Econocom complieswith this requirement.

As of 31 December 2020, it was composed oftwo non-executive Directors (Jean-PhilippeRoesch and Gaspard Dürrleman) and twoindependent Directors (Marie-ChristineLevet and Walter Butler). It was chaired byJean-Philippe Roesch.

DAY-TO-DAY MANAGEMENT5.5.4.

The Board of Directors has entrusted theday-to-day management to a managingDirector and two Chief Executive Officers inaccordance with articles 15:18 and 7:121 of theCSA and article 22 of the Bylaws.

All major decisions regarding thesubsidiaries are made by the relevant body,with the assent of the Chief Executive Officerand/or managing Director in charge of theissue or activity in question. The subsidiariesgenerally do not have any majordecision-making powers other than thoseconcerning day-to-day management. Thepowers of Group subsidiaries’ managers andthe limits to these powers are set out in aninternal reference document.

The Executive Committee is in charge ofoperational management.

IMPLEMENTATION 5.5.5.OF PROVISIONS GOVERNING CONFLICTS OF INTEREST

Article 7:96 of the CSA provides for a specificprocedure within the Board of Directors toaddress conflicts of interest involving one ormore Directors when it makes decisions orconcludes transactions. This procedure wasused once in 2020 by the Board of Directors,at its meeting of 9 March 2020, concerningthe allocation of 50,000 free shares to aDirector as described in paragraph 5.10below.



At its meeting of 22 November 2012, theBoard of Directors also adopted a proceduregoverning transactions or other contractualrelationships between Econocom group andthe Directors and members of the ExecutiveCommittee when such transactions or othercontractual relationships are not covered bythe provisions of article 7:96 of the CSA.

Article 7:97 of the CSA were not applied in2020, nor was the Group’s conflict of interestprocedure.

IMPLEMENTATION 5.5.6.OF THE DIVERSITY PROJECT

Econocom’s commitments, objectives andactions in respect of diversity, as well as theresults of this policy, are described inparagraph 1.1.4 of chapter 3, “CorporateSocial Responsibility”. They mainly concerngender equality and support for people fromdisadvantaged backgrounds and peoplewith disabilities.

Since 23 November 2017, one-third of themembers of Econocom group’s Board ofDirectors have been women, pursuant to theconditions set out in article 7, section 86 ofthe CSA. At 31 December 2020, the Boardhad three women members: Véroniquedi Benedetto, Adeline Challon-Kemoun, andMarie-Christine Levet. Women also sit oneach of the various Committees created bythe Board of Directors, namely the ExecutiveCommittee (Chantal De Vrieze), the AuditCommittee (Marie-Christine Levet) and theCompensation Committee (Anne Lange andAdeline Challon Kemoun).

Econocom’s policy in favour of people fromdisadvantaged backgrounds is deemed* notto be designed for the Group’s senior staff.Despite having made particular efforts inthis regard, Econocom has not yet hired asenior manager with a disability.

Composition 5.6.of advisory bodiesEconocom group’s Statutory Auditoris PricewaterhouseCoopers Réviseursd’Entreprises SRL (Woluwe Garden,Woluwedal, 18 1932 Saint Stevens Woluwe[Belgium]). Its term was renewed at theMay 2019 General Meeting and expires atthe May 2021 General Meeting, earlier thanexpected due to the mandatory rulesapplicable to changes in audit firms.

Econocom group’s Statutory Auditor isrepresented by Alexis Van Bavel, Companyauditor.

2020 Compensation 5.7.reportThis report was drawn up in accordance witharticle 3:6, §3 of the CSA. Its purpose is todescribe and provide a complete overview ofthe compensation granted to the Directors(Executive and Non-Executive) and to themembers of the Executive Committee ofEconocom group during the financial yearcovered by said report.

Before amortisation of intangible acquisition assets.*



COMPENSATION POLICY 5.7.1.FOR DIRECTORS AND MEMBERS OF THE EXECUTIVE COMMITTEE

Procedure adopted 5.7.1.1.to define compensation for Directors and members of the Executive Committee and set their individual compensation

On 31 August 2011, the Board of Directors setup a Compensation Committee. TheCommittee is composed of threenon-executive Directors, two of whom areindependent as defined in article 7:87section 1 of the CSA.

On 23 January 2020, the Board of Directorsextended the Compensation Committee’sresponsibilities to Appointments, therebylimiting its scope of action to corporateofficers and executives authorised in fact or inlaw to use the Group’s signature. Members ofthe Executive Committee who are notinvolved in the Group’s Senior Managementdo not fall within the scope of theCommittee’s activities.

The Compensation and AppointmentsCommittee mainly advises and assists theBoard of Directors. The Committee alsoperforms the duties that may be assigned toit by the Board of Directors in regardingcompensation and appointments. It carriesout its duties under the supervision of theBoard. In this context, it ensures free andopen communication with the Chairman ofthe Board and executive management.

1.1 Compensation component

At the request of the Chairman of the Boardand with respect to persons within the scopedefined above, the Committee is responsiblefor formulating recommendations andgiving its opinion to the Board on:

a) the compensation policy;

b) individual compensation (in particularDirectors’ fees, fixed and variablecompensation, long-term incentives,including shares and stock options,termination benefits);

c) the contractual terms and conditions thatsupport this compensation;

d) the determination and assessment ofperformance targets linked to individualcompensation;

e) stock option or share plans (budget,beneficiaries, characteristics and conditions).

Based on the data provided by the Company’sSenior Management, the Committee preparesthe compensation report which issubsequently added to the corporategovernance statement. In particular, it reviewsthe change in the total amount paid to theten highest paid employees. It prepares andcomments on the compensation reportduring the Ordinary General Meeting.

1.2 Appointments component

At the request of the Chairman of the Board,the Committee is responsible for formulatingrecommendations and giving its opinion tothe Board on the appointment andreappointment of corporate officers and theappointment of executives with the authorisedin fact or in law to use the Group’s signature.

The Committee ensures the existence ofsuccession plans for the Company’s keypositions.

The Committee also ensures that appropriatetalent development programmes anddiversity promotion programmes are inplace.

1.3 Implementation of plans relating tothe granting of financial instruments

The Board of Directors may grant to theCommittee decision-making powers onbehalf of the Board of Directors with respectto stock option plans or any other plans forgranting financial instruments, includingwarrants, either under existing or futureplans (“the Plans”).

In this case, the Committee’s conducts itswork under the responsibility andsupervision of the Board to which it reports.Within the limits of the powers entrusted tothe Board and in accordance with its rules,



the Committee is subsequently responsiblefor allocating and distributing, following therecommendation of the Chairman of theBoard of Directors, the amount previouslyset by the Board of Directors.

The Compensation Committee met twicein 2020.

COMPENSATION PAID 5.7.2.IN 2020

The Board of Directors5.7.2.1.

The Bylaws provide for Directors’ fees forDirectors.

The Extraordinary General Meeting of18 December 2015 decided to increase thecompensation of non-executive Directorsfrom €3,000 to €5,000 per Board meetingfrom January 2016, subject to actualattendance at meetings.

Executive Directors do not receive anycompensation in respect of theirdirectorships for Econocom group. Theircompensation comes from contractualrelationships or their terms of office withone or more Group companies. At itsmeeting of 24 November 2016, the Board ofDirectors clarified the status of executiveDirector, excluding from the conceptDirectors having an operational functionwithin subsidiaries but not holdingexecutive positions at Econocom group.People in this position are considered to benon-executive Directors. However, they donot receive Directors’ fees.

Directors not exercising any operationalfunction do not receive any compensationother than the below-mentioned Directors’fees.

A summary of the nature of the compensation paid to Directors is as follows:

Terms of office at 31 Dec. 2020 Nature of compensation

Econocom International BV (EIBV)

Chairman and ChiefExecutive Officer –

represented byJean-Louis Bouchard

EIBV receives compensationunder a service contract

Robert BouchardVice-Chairman

non-executive DirectorDirectors’ fees

Bruno Grossi Non-executive DirectorCompensation received as anemployee until 11/12/2020 and

subsequently Directors’ fees

Jean-Philippe Roesch Non-executive Director Directors’ fees

Véronique di Benedetto Non-executive DirectorCompensation received as an

employee

Gaspard Dürrleman Non-executive Director Directors’ fees

Walter Butler Independent Director Directors’ fees

Adeline Challon-Kemoun Independent Director Directors’ fees

Marie-Christine Levet Independent Director Directors’ fees



The Committees5.7.2.2.

At the Extraordinary General Meeting of18 December 2015, the compensation ofChairs and members of the AuditCommittee and the Compensation andAppointments Committee was increasedfrom €2,000 to €3,000 per meeting fromJanuary 2016, subject to actual attendance.

Executive Directors, 5.7.2.3.non-executive Directors with operational functions and members of the Executive Committee

The compensation of executive Directorsand members of the Executive Committeeincludes a significant variable portion,which may reach 50% of the totalcompensation.

The Ordinary General Meeting of 19 May2020 authorized the Board of Directors todeviate from the rules provided for inarticle 7:91, paragraph 2 of the CSA in respectof the setting of variable compensation forexecutives and the granting of shares orstock options to current executive Directorsand other current executives of theCompany.

The variable portion of compensation paidto executive Directors and ExecutiveCommittee members was set in 2020 basedon annual performance criteria.

2020 variable compensation paid toexecutive Directors and members of theExecutive Committee was subject to theachievement of objectives, both qualitativeand quantitative.

A significant proportion of compensationpaid to members of the ExecutiveCommittee was subject to the achievementof a joint quantitative objectives relating tothe Group’s budget targets, and in particularrecurring profit, revenue and the net debt ofthe Group and/or areas of responsibilityspecific to each manager. The otherqualitative and quantitative objectives arespecific to each Executive Committeemember and executive Director, anddepend on the scope of their duties andresponsibilities.

As is the case with all Econocom groupemployees, the executive Directors andExecutive Committee members who areemployees of the Group, are assessed on acontinuous basis throughout the year bytheir managers and at the annual appraisal,which is held in the first quarter of thefollowing year.

The compensation of non-executiveDirectors with operational functions is set bythe Chairman or a member of the ExecutiveCommittee.

The Board of Directors believed, giventhe reliability of the Group’s financialinformation, by way of exemption from theprinciple laid down by the 2020 CorporateGovernance Code, that it was unnecessaryto implement a collection right for variablecompensation awarded on the basis ofincorrect financial information.

Non-executive Directors5.7.2.4.

This section sets out the individualcompensation and benefits paid directly orindirectly to non-executive Directors byEconocom group or any of the Group’s othercompanies in 2020.



Compensation paid in 2020, includingsocial costs

in €

Walter Butler 48,000

Rafi Kouyoumdjian 8,000

Adeline Challon-Kemoun 38,000

Gaspard Dürrleman 69,000

Marie-Christine Levet 72,000

Jean-Philippe Roesch 66,000

Robert Bouchard 48,000

Total 349,000

Compensation paid to the 5.7.2.5.Chairman of the Board of Directors

Until 19 May 2020, Jean-Louis Bouchardserved as Chairman of the Board of Directors,managing Director and Chairman of theGroup’s Executive Committee. He receivedno compensation whatsoever for theseduties, and did not benefit from any specialpension or insurance, or any other benefitspaid either directly or indirectly by eitherEconocom group or any companies in thescope of consolidation. As of 20 May 2020,Econocom International BV (EIBV), acompany incorporated under Dutch law,represented by Jean-Louis Bouchard, willassume all these roles. EIBV billed fees of€1.8 million to Econocom group and itssubsidiaries in 2020 for managing andcoordinating the Group. These feesamounted to €2.3 million in 2019.

remainder of chargebacks of costs incurredby EIBV on behalf of Econocom(management seminars, etc.).

Three-quarters of this amount is composedof employee benefits expenses and the

Compensation paid to the 5.7.2.6.executive Directors, non-executive Directors with operational functions and members of the Executive Committee in 2020

This section sets out the overallcompensation and benefits paid directly orindirectly to executive Directors of theBoard, non-executive Directors withoperational functions and members of theExecutive Committee by Econocom groupor any of the Group’s other companies in2020.

Total compensation paid in 2020,including social costs

in €

Fixed portion 2,236,802

Variable portion(1) 2,280,857

Pensions and other compensation, including benefits in kind(2)(3)

1,513,864

Social costs(4) 1,048,209

Directors’ fees -

Total 7,169,732Of which €1,841 thousand in respect of 2019 and(1)

prior years, and paid in 2020.Of which €335 thousand in respect of 2019 and prior(2)

years, and paid in 2020.Of which €468 thousand in respect of departure(3)

transactions paid in 2020.Of which €285 thousand for 2019 and prior years,(4)

and paid in 2020.



Total compensation for 2020, including social costs

in €

Fixed portion 2,236,802

Variable portion(1) 2,009,008

Pensions and other compensation, including benefits in kind(2)

1,285,660

Social costs(3) 1,146,860

Directors’ fees -

Total 6,768,330Of which €1,604 thousand yet to be paid in 2021. The(1)

non-finalised variable portions were recorded on theassumption that 100% of targets were met.Of which €129 thousand yet to be paid in 2021.(2)

Of which €87 thousand yet to be paid in 2021.(3)

This information refers to compensationincluding social costs paid to executiveDirectors and Executive Committee membersin office in 2020, as well as compensation paidto non-executive Directors with operationalfunctions.

Five of the managers with operationalfunctions were compensated under theiremployment contract as employees ofEconocom group’s companies. Four indirectlyreceived compensation through a companycontrolled by Econocom group, as acorporate officer of an Econocom groupcompany and/or as a service provider. Thislump-sum compensation is included in thesummary table above.

Three of the executive Directors, ExecutiveCommittee members and non-executiveDirectors with operational functions have acompany car.

Lastly, the compensation of theChairmanof the Board of Directors isdiscussed insection 5.7.2.5.

STOCK OPTIONS 5.7.3.AND FREE SHARES GRANTED

Some of the executive Directors, ExecutiveCommittee members and non-executiveDirectors with operational functions benefitfrom stock option and/or performanceshare plans.

The General Meeting of 19 May 2020approved the terms of a free share planincluding 2,200,000 shares.

On 27 July 2020, the Board of Directorsgranted two Group Executives performanceshares entitling them to a total of 1,600,000Econocom group shares, the vesting ofwhich will be spread over three years.

At 31 December 2020, the executiveDirectors, Executive Committee membersand non-executive Directors held702,250 stock options entitling them to1,404,500 Econocom group shares (after theshare split) at a total subscription price of€5.6 million, as well as 1,750,000 Econocomgroup performance shares.



TERMINATION BENEFITS 5.7.4.AND OTHER CONTRACTUAL OBLIGATIONS

The employment contracts of the executiveDirectors, Executive Committee membersand non-executive Directors with operationalfunctions in office at 31 December 2020contain standard clauses, in particular asregards notice period. They contain nospecific clause with respect to pensionbenefits. Two members of the ExecutiveCommittee receive a specific terminationbenefit (under certain conditions)

Appropriation of 5.8.profit and dividend policyFollowing the decisions made by GeneralMeeting of Econocom group SE on6 November 2020, a gross interim dividendof €0.12 per share was distributed toshareholders in respect of 2019.

This distribution represents stability in thegross shareholder compensation per shareover the last three years.

In addition, the Group will also continue itsshare buyback policy.

Relations with 5.9.major shareholdersOn 23 December 2020, Econocom groupreceived notification of a threshold crossingfrom Econocom International BV andEconocom group stating that they held56.24% of the Company’s voting rights. Thisupward crossing of the 55% threshold is theresult of the introduction of double votingrights following the General Meeting on19 May 2020.

do not carry voting rights, meaning that, at31 December 2020, Jean-Louis Bouchardheld 56.24% of the Company’s voting rights,directly and indirectly (excluding treasuryshares held under the liquidity agreement).

At 31 December 2020, the number of sharesissued by Econocom group totalled220,880,430, of which Jean-Louis Bouchardheld 40.36% via Econocom International BV.Shares held in treasury by Econocom group

Relations with the majority shareholder,Econocom International BV, correspond tothe provision of standard services onarm’s-length terms. In addition, theEconocom group signed lease agreementsin France with companies controlled byJean-Louis Bouchard: SCI Maillot Pergolèse,SCI of Dion Bouton and SCI JMB. Theseleases were signed on arm’s length terms.

Econocom group 5.10.employee share ownershipThe Group has set up several incentive plansfor its personnel, employees, managers andexecutives. Three stock option plans set upin 2013, 2014 and 2017 are still in progressand have given rise to awards each yearsince 2013 and two free share allocationplans approved by the General Meeting inMay 2016 has given rise to awards in 2016,2018 and 2020.

During the year, 50,000 free shares weredefinitely allocated by the Board of Directorsto a Director, in respct of the 2018 Free shareplan, thereby resulting in the transfer of thesame number of treasury shares. The Boardof Directors unanimoulsy approved thisaward, to the extent that the performanceconditions had been met, and although thiswas not the case for the condition regardingthe share price. During the voting process,the Director in question left the meetingafter mentioning an economic conflict ofinterest. In addition, 250,000 stock optionsand 560,000 free shares were lost due to thedeparture of beneficiaries or the failure tomeet individual or collective performancetargets.



An updated summary of the Group’s commitments in respect of these plans at31 December 2020 is provided below:

Plan Yeargranted

Numberof options

and freeshares

Number ofcorresponding

shares*Expiry

date

Exerciseprice

(in €per option)

Exerciseprice

(in €thousands)

2014 subscription options

2014 1,599,620 3,199,240 Dec. 2021 5.52 8,830

2015236,800 473,600 Dec. 2022 7.74 1,833

120,000 240,000 Dec. 2022 7.61 913

201640,000 80,000 Dec. 2023 9.57 383

45,000 90,000 Dec. 2023 13.60 612

2017 subscription options

2017 90,000 90,000 Dec. 2023 6.04 544

Free shares 2018

60,000 60,000 March 2021 - -

60,000 60,000 March 2022 - -

60,000 60,000 March 2023 - -

Free share 2020

300,000 600,000 July 2021 - -

600,000 600,000 July 2022 - -

300,000 400,000 Sept. 2022 - -

400,000 400,000 July 2023 - -

Total - - 5,952,840 - - 13,114Each one of the options granted prior to the two-for-one share split (in June 2017) entitles the holder to two*

Econocom group shares.



These plans cover Econocom group shareslisted on the Euronext Brussels stockexchange. They are granted with a viewto involving employees, managers andexecutives more closely in the Group’soperations and business development.

The granting of some of the stock optionsand free shares, comprising between 50%and 100% of the stock options and sharesallocated, is contingent on their beneficiariesachieving individual, collective, internaland/or external performance goals. Theexercise price is set in accordance withcurrent legislation.

The options may not be transferred andEconocom group does not hedge itsexposure to decreases in the share price.

The stock options granted in 2014, 2015 and2016 are part of a stock option planapproved by the Board of Directors on17 December 2014. If exercised, theseoptions will result in the issuance of newshares.

The free share plan issued in 2016 wasapproved by the General Meeting of 17 May2016. The different awards made as part ofthis plan were approved by the Board ofDirectors meetings dated 19 May 2016,26 February 2018 and 27 December 2018.

The vesting of free shares by the beneficiarywill result in delivery of existing shares.

The stock options granted in 2017 are part ofa stock option plan approved by the Boardof Directors on 22 June 2017. If exercised,these options will result in the issuance ofnew shares.

The free share plan issued in 2020 wasapproved by the General Meeting of 19 May2020. The awards made under this planwere approved by the Board of Directors on27 July 2020.

At 31 December 2020, unexercised freeshares and options entitling their holders toa total of 5,952,840 Econocom group shares,including 4,172,840 shares yet to be issuedand 1,780,000 existing shares. Theyrepresented 2.70% of the number of sharesoutstanding at the end of the year. Lastly, ofthe total number of shares corresponding tostock options and free shares granted andnot yet exercised, 19.8% were subject to theachievement of quantitative and/orqualitative, and individual and/or collectiveperformance conditions.

The exercise of all these options wouldresult in an equity increase of €13.1 million.



Statutory Auditor’s fees5.11.in € 31 Dec. 2020 31 Dec. 2019

Statutory Auditor’s fees for auditing the consolidated financial statements

358,718 357,648

Statutory Auditor fees or fees for similar assignments performed in the Group by individuals related to the Statutory Auditor

766,500 841,490

Fees for non audit-related engagements or specific assessments carried out by the Statutory Auditor for Econocom group

– –

Non-audit certification engagements 11,150 21,500

Tax advisory work – –

Other external audit-related assignments 86,000 73,000

Fees for one-off tasks or specific assessments carried out for Econocom group by persons related to the Statutory Auditor(s)

– –

Non-audit certification engagements - 33,150

Tax advisory work 106,993 198,991

Other external audit-related assignments - 356,500

Treasury shares5.12.See section 2.3.3 above.


05 management reportsubsequent events

Subsequent events6.Acquisition of Econocom Group shares by BIS BV

On 4 February 2021, BIS BV, a subsidiary ofEconocom Group, entered into anagreement under which it acquires the6.01% stake (i.e. 13,278,091 shares) held bytwo companies controlled by Walter Butler(namely Butler Industries Benelux SA andButler Industries) in the share capital ofEconocom Group SE.

The selling price agreed was €2.825 perEconocom Group SE share.

Following this transaction, Walter Butlerresigned as director of Econocom Group SE.


06consolidated financial statements

Consolidated income statement 1.and earning per share 150

Consolidated statement 2.of financial position 152

Consolidated statement 3.of changes in equity 154

Consolidated statement 4.of cash flows 156

Notes to the consolidated 5.financial statements 158


06 consolidated financial statementsconsolidated income statement and earning per share

Consolidated income statement 1.and earning per shareFor the years ended 31 December 2020 and 31 December 2019

in € millions Notes 2020 2019restated*

Revenue from continuing operations 4.1 2,558.7 2,914.0

Operating expenses (2,438.3) (2,788.3)

Cost of sales (1,807.1) (2,057.3)

Employee benefits expense 4.2 (469.5) (520.0)

External expenses 4.4 (127.7) (156.7)

Depreciation, amortisation and provisions 4.5 (41.1) (47.3)

Net impairment losses on current and non-current assets 4.6 5.4 (7.3)

Taxes (other than income taxes) (9.8) (9.1)

Other operating income and expenses 4.7 9.3 4.5

Financial income – operating activities 4.8 2.2 4.8

Profit (loss) from current operating activities before amortisation of intangible assets from acquisitions 122.5 127.6

Profit (loss) from current operating activities 120.4 125.6

Other non-recurring operating income and expenses 5 (36.2) (24.5)

Profit (loss) from operating activities 84.1 101.2

Other financial income and expenses 6 (16.2) (18.6)

Profit (loss) before tax 67.9 82.6

Income tax expense 7 (18.5) (22.6)

Profit (loss) from continuing operations 49.4 60.0

Share of profit (loss) of associates and joint ventures 0.1 -

Profit (loss) from discontinued operations 2.2.5 0.7 (11.4)

Profit for the period 50.2 48.6

Non-controlling interests 3.4 3.9

Profit for the period attributable to owners of the parent 46.8 44.7

Recurring profit attributable to owners of the parent(1) 68.2 73.2


06consolidated financial statementsconsolidated statement of comprehensive income

Earning per share attributable to owners of the parent (in €) Notes 2020 2019

restated*

Basic earning per share – continuing operations 0.21 0.25

Basic earning per share – discontinued operations 2.2.5 0.00 (0.05)

Basic earning per share 8 0.22 0.20

Diluted earning per share – continuing operations 0.21 0.23

Diluted earning per share – discontinued operations 2.2.5 0.00 (0.05)

Diluted earning per share 8 0.21 0.19

Recurring earning per share(1) 8 0.31 0.32

In accordance with IFRS 5 (see 2.2.5), 2019 income and expenses of operations considered discontinued in 2020*

are reclassified to “Profit (loss) from discontinued operations” in the 2019 income statement.

Recurring net profit attributable to owners of the parent has been the key performance indicator used by(1)

Econocom to assess its economic and financial performance. It does not include: amortisation of intangible assets from acquisitions, net of tax effects;• other non-recurring operating income and expenses, net of tax effects;• other non-recurring financial income and expense, net of tax effects;• profit from discontinued operations.•

A table showing the reconciliation of profit attributable to owners of the parent with recurring profit attributableto owners of the parent is included in section 2.1 of the Management Report.

Consolidated statement of comprehensive incomein € millions 2020 2019

Profit for the period 50,2 48.6

Items that will not be reclassified to profit or loss (1.1) 0.4

Remeasurements of the net liabilities (assets) under defined benefit plans (1.4) 0.8

Deferred income tax expense on the remeasurement of the liabilities (assets) for defined benefit plans 0.3 (0.3)

Items that may be reclassified to profit or loss (4.6) 0.4

Change in value of cash flow hedges (0.2) (0.2)

Deferred tax arising on change in value of cash flow hedges 0.1 -

Foreign currency translation adjustments (4.4) 0.6

Other comprehensive income (expense) (5.7) 0.8

Total comprehensive income for the period 44.5 49.4

Attributable to non-controlling interests 3.2 3.9

Attributable to owners of the parent 41.3 45.5


06 consolidated financial statementsconsolidated statement of financial position

Consolidated statement 2.of financial positionAsset

in € millions Notes 31 Dec. 2020 31 Dec. 2019

Non-current assets

Intangible assets 10.1 47.6 57.2

Goodwill 9 499.5 512.9

Property, plant and equipment 10.2 35.2 34.6

Rights of use 10.2 54.7 57.9

Non-current financial assets 10.3 30.5 32.9

Residual interest in leased assets 11.1 134.3 131.9

Other long-term receivables 10.4 24.5 13.6

Deferred tax assets 7.2 37.8 37.4

Total non-current assets 864.2 878.6

Current assets

Inventories 12.1 76.7 60.1

Trade and other receivables* 12.2 894.1 1,093.7

Residual interest in leased assets 11.1 40.9 33.0

Current tax assets 12.6 18.1

Contract assets 12.2 17.4 30.6

Other current assets 12.2 30.4 27.8

Cash and cash equivalents 14.1 649.3 593.8

Assets held for sale 2.2.5 74.3 201.1

Total current assets 1,795.7 2,058.2

Total assets 2,659.8 2,936.8

Of which self-funded outstanding rentals: €185.9 million at 31 December 2020 versus €238.5 million at 31 December 2019.*


06consolidated financial statementsconsolidated statement of financial position

Liabilities


Share capital 23.5 23.5

Additional paid-in capital and reserves 335.8 342.0

Profit for the period attributable to owners of the parent 46.8 44.7

Equity attributable to owners of the parent 15 406.1 410.2

Non-controlling interests 15.4 66.9 73.7

Total equity 472.9 483.9

Non-current liabilities

Bonds loans* 14.2 248.7 390.0

Financial liabilities* 14.2 75.9 61.6

Gross liability for purchases of leased assets 11.2 75.9 81.1

Long-term lease liabilities 35.0 37.7

Provisions 16 11.5 3.3

Provisions for pensions and other post-employment benefit obligations 17 41.8 37.4

Other non-current liabilities 12.5 55.1 42.4

Deferred tax liabilities 7.2 11.8 10.2

Total non-current liabilities 555.8 663.6

Current liabilities

Bonds loans* 14.2 139.9 51.5

Financial liabilities* 14.2 164.5 343.1

Gross liability for purchases of leased assets 11.2 27.8 20.4

Short-term lease liabilities 22.5 21.5

Provisions 16 37.7 32.6

Current tax liabilities 13.2 18.0

Trade and other payables 12.3 992.1 980.6

Contract liabilities 12.4 62.9 68.7

Other current liabilities 12.4 140.9 169.7

Liabilities held for sale 2.2.5 29.5 83.2

Total current liabilities 1,631.1 1,789.3

Total equity and liabilities 2,659.8 2,936.8

Taking into account the cash and cash equivalents of €649.3 million as of 31 December 2020 (and €593.8 million as*

of 31 December 2019) and bonds loans and financial liabilities, the balance sheet shows a cash surplus of€20.2 million at 31 December 2020 (compared to net debt of €252.2 million at 31 December 2019); these financialliabilities include in particular €185.9 million at 31 December 2020 (and €238.5 million at 31 December 2019)corresponding to self-funded TMF contracts and the expected associated lease payments.


06 consolidated financial statementsconsolidated statement of changes in equity

Consolidated statement 3.of changes in equity

in € millions Numberof shares

Sharecapital

Additionalpaid-incapital

Treasuryshares

Balance at 31 December 2018 245,140,430 23.5 240.3 (64.6)

IFRS 16 “Leases” (Lessee) impact - - - -

Balance at 1 January 2019 - 23.5 240.3 (64.6)

Profit for the year - - - -

Other comprehensive income (expense), net of tax - - - -

Total comprehensive income for 2019 - - - -

Share-based payments - - - -

Refund of issue premiums/Compensation of shareholders - - (27.4) -

Capital increase 240,000 - 0.7 -

Net treasury share transactions - - - (26.3)

Put and call options on non-controlling interests – Change in fair value - - - -

Put and call options on non-controlling interests – Initial recognition - - - -

Other transactions and transactions with an impact on non-controlling interests (see note 15) - - - -


in € millions Number ofshares

Sharecapital

Additionalpaid-incapital

Treasuryshares


Impact on changes in accounting standards or methods - - - -

Balance at 1 January 2020 - 23.5 213.6 (90.9)

Profit for the year - - - -

Other comprehensive income (expense), net of tax - - - -

Total comprehensive income for 2020 - - - -

Share-based payments - - - -

Refund of issue premiums/Compensation of shareholders - - - -

Capital increase - - - -

Net treasury share transactions (24,500,000) - - 67.9

Put and call options on non-controlling interests – Change in fair value - - - -

Put and call options on non-controlling interests – Initial recognition - - - -

Other transactions and transactions with an impact on non-controlling interests (see note 15) - - - -



06consolidated financial statementsconsolidated statement of changes in equity

Consolidatedreserves and

retained earning

Othercomprehensive

income (expense)

Equityattributable

to ownersof the parent

Equityattributable

to non-controllinginterests

Total equity

205.2 (8.0) 396.4 94.9 491.3

(3.0) - (3.0) - (3.0)

202.2 (8.0) 393.4 94.9 488.3

44.7 - 44.7 3.9 48.6

- 0.8 0.8 - 0.8

44.7 0.8 45.5 3.9 49.4

- 0.7 0.7 - 0.7

- - (27.4) - (27.4)

- - 0.7 - 0.7

- - (26.3) - (26.3)

3.2 - 3.2 - 3.2

- - - - -

20.5 - 20.5 (25.2) (4.7)

270.6 (6.5) 410.3 73.6 483.9

Consolidatedreserves and

retained earning

Othercomprehensive

income (expense)

Equityattributable

to ownersof the parent

Equityattributable

to non-controllinginterests

Total equity

270.6 (6.5) 410.3 73.6 483.9

- - - - -

270.6 (6.5) 410.3 73.6 483.9

46.8 - 46.8 3.4 50.2

- (5.5) (5.5) (0.2) (5.7)

46.8 (5.5) 41.3 3.2 44.5

- 1.3 1.3 - 1.3

(25.7) - (25.7) - (25.7)

- - - - -

(93.5) - (25.6) - (25.6)

- (0.2) (0.2) - (0.2)

- - - - -

- 4.8 4.8 (10.1) (5.3)

198.1 (6.1) 406.1 66.9 472.9


06 consolidated financial statementsconsolidated statement of cash flows

Consolidated statement 4.of cash flowsin € millions Notes 2020 2019

restated*

Profit from continuing operations 49.4 60.0

Elimination of share of profit (loss) of associates and joint ventures 18.1.1 - -

Provisions, depreciation, amortisation and impairment 18.1.1 47.4 70.0

Elimination of the impact of residual interest in leased assets 18.1.1 (3.1) 3.2

Other non-cash expenses (income) 18.1.1 (20.2) (24.8)

Cash flows from operating activities after cost of net debt and income tax 73.5 108.3

Income tax expense 7 18.5 18.0

Cost of net debt 18.1.2 15.2 15.0

Cash flows from operating activities before cost of net debt and income tax (a) 107.2 141.3

Change in working capital requirement (b), o/w: 18.1.3 139.5 14.4

Net investments in self-funded TMF contracts 52.6 7.7

Other changes in working capital requirement 86.9 6.5

Income tax paid before tax credits (c) (14.2) (29.6)

Net cash flows from (used in) operating activities (a + b + c = d) 18.1 232.6 126.2

Acquisition of property, plant and equipment and intangible assets (17.1) (22.8)

Disposal of property, plant and equipment and intangible assets 3.5 1.9

Acquisition of non current financial assets (2.7) (5.9)

Disposal of non current financial assets 1.4 0.7

Acquisition/disposal of companies and businesses, net of cash acquired/disposed 140.4 (0.7)

Net cash from (used in) investing activities (e) 18.2 125.5 (26.9)In accordance with IFRS 5, the restatement of the 2019 figures reflects the reclassification of operations considered*

discontinued in 2020 to Net change in cash and cash equivalents from discontinued operations.


06consolidated financial statementsconsolidated statement of cash flows

in € millions Notes 2020 2019

restated*

OCEANE buybacks (9.7) -

Capital increase - 0.7

Purchases of treasury shares (net of sales) (25.6) (26.0)

Compensation of shareholders during the period (25.7) (27.5)

Changes in refinancing liabilities on lease contracts and liabilities on self-funded contracts (14.0) (6.9)

Increase in financial liabilities 45.1 1.7

Refund of financial liabilities (57.7) (40.7)

Net change in commercial paper (159.5) 23.6

Main components of payments coming from leases (24.8) (26.8)

Interest paid (15.2) (15.9)

Net cash from (used in) financing activities (f) 18.3 (287.1) (117.8)Impact of exchange rates on cash and cash equivalents (g) (1.9) 0.6

Net change in cash and cash equivalents from discontinued operations (h) 2.2.5 3.9 (11.4)

Change in net cash and cash equivalents (d + e + f + g + h) 72.9 (29.3)

Net cash and cash equivalents at beginning of period(1) 14.1/18 575.6 604.8

Change in cash and cash equivalents 72.9 (29.3)

Net cash and cash equivalents at end of period(1) 14.1/18 648.5 575.6In accordance with IFRS 5, the restatement of the 2019 figures reflects the reclassification of operations considered*


Net of bank overdrafts: €0.8 million at 31 December 2020 and €18.2 million at 31 December 2019.(1)

Key movements in the consolidated statement of cash flows are explained in note 18.


06 consolidated financial statementsnotes to the consolidated financial statements

Notes to the consolidated 5.financial statements

Basis of preparation1. 159Basis and scope of consolidation2. 163Segment information3. 174Profit (loss) from current operating activities4. 177Other non-recurring operating income and expenses5. 186Net finance income (expense)6. 187Income taxes7. 188Basic earning per share8. 191Goodwill and impairment testing9. 193Intangible assets, property, plant and equipment and non-current financial 10.assets 197Residual interest in leased assets and gross liability commitments for purchases 11.of leased assets 208Operating assets and liabilities12. 210Financial instruments13. 214Cash, gross debt, net debt14. 219Equity15. 225Provisions16. 233Provisions for pensions and other post-employment benefit obligations.17. 235Notes to the consolidated statement of cash flows18. 240Risk management19. 244Off-balance sheet commitments20. 249Information on the transfer of financial assets and liabilities21. 250Related-party information22. 254Subsequent events23. 257


06consolidated financial statementsnotes to the consolidated financial statements

Basis of preparation1.The consolidated financial statements ofEconocom group (“the Group”) for the yearended 31 December 2020 include:

the financial statements of Econocom•group SE;

the financial statements of its subsidiaries;•

the share of the net assets and profit (loss)•of associates and joint ventures.

Econocom is an independent group thatdesigns, finances and oversees companies’digital transformation.

Econocom group SE, the Group’s parentcompany, is a European company (societasEuropaea) with its registered office at Placedu Champ de Mars, 5, 1050 Brussels.

The Company is registered with theBrussels companies registry undernumber 0422 646 816 and is listed onEuronext Brussels.

The Board of Directors Meeting of 24 March2021 adopted and authorised thepublication of the consolidated financialstatements for the year ended 31 December2020. These financial statements will onlybe deemed final once they have beenapproved by the shareholders at the AnnualGeneral Meeting on 18 May 2021.

Guidelines applied1.1.As required by European CommissionRegulation No. 1606/2002 dated 19 July 2002,Econocom’s consolidated financialstatements for the 2020 financial year havebeen prepared in accordance with theInternational Financial reporting Standards(IFRS) as published by the InternationalAccounting Standards Board (IASB) andadopted by the European Union.

The accounting principles applied at31 December 2020 are the same as thoseused for the year ended 31 December 2019,except for the new standards andinterpretations applicable as of 1 January2020 (see 1.1.1.).

These financial statements do not take intoaccount any draft standards or interpretationswhich, at the end of the reporting date, werebeing developed as exposure drafts by theIASB (International Accounting StandardsBoard) or IFRIC (International Financialreporting Interpretations Committee).

All the standards adopted by the EuropeanUnion are available on the EuropeanCommission website at the followingaddress:

https://ec.europa.eu/info/business-economy-euro/company-reporting-and-auditing/company-reporting/financial-reporting_en

https://ec.europa.eu/info/business-economy-euro/company-reporting-and-auditing/company-reporting/financial-reporting_fr







STANDARDS, AMENDMENTS 1.1.1.AND INTERPRETATIONS ADOPTED BY THE EUROPEAN UNION AND APPLICABLE AT 1 JANUARY 2020

The standards, amendments to standardsand interpretations, published by the IASBand presented below are mandatory since1 January 2020.

The following standards did not havea material impact on the Group’s financialstatements:

amendment “Modifications of references•in the Conceptual Framework in IFRS”;

amendments IAS 1 and IAS 8 “Definition of•materiality”;

amendments of IFRS 3 “Definition of•a business”;

amendments to IFRS 9, IAS 39 and IFRS 7,•IFRS 4 and IFRS 16 as part of the reformbenchmark rates; and

amendments to IFRS 4 “Extension of the•temporary exemption from applying IFRS 9‘Financial instruments’”.

STANDARDS, AMENDMENTS 1.1.2.AND INTERPRETATIONS NOT YET ADOPTED BY THE EUROPEAN UNION

Pending their definitive adoption by theEuropean Union, the Group has notanticipated the application of the followingstandards and interpretations:

amendments to IFRS 3 “Reference to the•conceptual framework”, mandatory from1 January 2022;

amendments to IAS 37 “Onerous Contracts –•Cost of fulfilling a contract”, mandatory from1 January 2022;

amendments to IAS 16 “Property, plant and•equipment – Proceeds before intendeduse”, mandatory from 1 January 2022;

annual improvements for 2018-2020,•mandatory from 1 January 2022;

IFRS 17 “Insurance contracts”, the•application of which is mandatory from1 January 2023;

amendments to IAS 1 “Classification of•liabilities as current or non-current”,mandatory from 1 January 2023; and

amendment IFRS 10 and IAS 28 “Sale or•contribution of assets between an investorand its associate or joint venture”.

The Group is currently in the process ofassessing any impacts of the first applicationof these texts.

Basis for preparation 1.2.and presentation of the consolidated financial statementsAll amounts in the Consolidated financialstatements are presented in € millions.The fact that figures have been rounded offto the nearest decimal point may, in certaincases, result in minor discrepancies in thetotals and sub-totals in the tables and/orin the calculation of percentage changes.

BASIS FOR REPORTING1.2.1.

These accounting policies set out belowhave been consistently applied to all theyears presented in the financial statements.

The financial statements were prepared ona historical cost basis, with the exception of:

certain financial assets and liabilities•which are measured at fair value;

non-current assets held for sale, which are•recognised and measured at the lower ofnet book value and fair value less costs tosell as soon as their sale is deemed highlyprobable. They are no longer amortisedonce they are classified as assets(or a group of assets) held for sale.



CHANGES IN PRESENTATION 1.2.2.AND ACCOUNTING POLICIES

Outside the standards, amendments,interpretations adopted by the EuropeanUnion and applicable on 1 January 2020, theGroup has not made any changes inaccounting policies.

USE OF ESTIMATES 1.2.3.AND JUDGEMENTS

The preparation of Econocom group’sconsolidated financial statements requiresthe use of estimates and assumptions byManagement which may affect the bookvalue of certain items in assets andliabilities, income and expenses, andthe information disclosed in the notes tothe consolidated financial statements.

Estimates and assumptions are made onthe basis of past experience and otherelements considered realistic or reasonable,and are a basis for the exercise of judgmentin determining the book value of assets andliabilities.

The Group uses discount rate assumptions(based on market data) to estimate assetsand liabilities.

Group Management regularly reviews itsestimates and assumptions in order toensure that they accurately reflect bothpast experience and the current economicsituation.

Depending on changes in theseassumptions, the items in its financialstatements could differ significantly, whichwould affect the value of assets, liabilities,equity or the income statement. The impactof changes in accounting estimates isrecognised in the period in which the changeoccurred and all future affected periods.

sections in the notes to the financialstatements and cover:

The main estimates and assumptions usedby the Group are set out in the relevant

the valuation and useful lives of operating•assets, property, plant and equipment,intangible assets and goodwill and anycounterparties thereof;

the amount of provisions for risks and other•provisions related to the activity as well as;

the assumptions used to calculate employee•benefit obligations and sharebased payments;

the valuation of the Group’s residual•interests in leased assets;

the amounts of deferred tax assets and•liabilities as well as the current tax expense;

the valuation methods for identifiable•assets and liabilities acquired as part ofbusiness combinations;

determining the fair value of financial•instruments.

For these estimates, the Group appliesthe following accounting policies:

impairment of goodwill (note 9.3): each•year, the Group reviews the value of thegoodwill in its consolidated financialstatements. These impairment tests areparticularly sensitive to medium-termfinancial projections and to the discountrates used to estimate the value in use ofCGUs;

provisions (note 16): provisions are•recognised to cover probable outflows ofresources to a third party with noequivalent consideration for the Group.They include provisions for litigation of anynature which are estimated on the basisof the most probable, conservativesettlement assumptions. To determinethese assumptions, Group Managementrelies, where necessary, on assessmentsmade by external consultants;



measurement of provisions for pensions•(see note 17): an actuary calculatesthe provision for retirement benefits usingthe projected unit credit method. Thiscalculation is particularly sensitive toassumptions regarding the discount rate,salary increase rate and employee turnoverrate;

valuation of the stock options and free•shares granted since November 2002: theactuarial formulae used are sensitiveto assumptions concerning employeeturnover, changes in and volatility of theshare price of Econocom group SE, aswell as the probability of Managementachieving its objectives (see note 15.3.1);

assessments of the probability of•recovering the tax loss carry forwards andtax credits of the Group’s subsidiaries(see note 7 on tax loss carry forwards);

valuation of the Group’s residual interest in•leased assets: this valuation is performedusing the method described in note 11.1and verified each year using statisticalmethods.

In addition, the Group is required toexercise critical judgment to determine:

the valuation of the Group’s residual•interests in leased assets;

the qualification of dealer-lessor in sale &•lease-back contracts;

the distinction between “agent” and•“principal” for revenue recognition;

the derecognition of financial assets and•liabilities;

identification of an asset or group of assets•as held for sale, and discontinuedoperations.



Basis and scope of consolidation2.

Accounting principles 2.1.related to the scope of consolidation

BASIS OF CONSOLIDATION2.1.1.

These consolidated financial statementsinclude the financial statements of Econocomgroup SE and all the subsidiaries it controls.

According to IFRS 10, an investor controlsan investee if and only if the investor has allof the following:

power over the investee, i.e., the ability to•direct the activities that significantly affectthe investee’s returns;

exposure to the investee’s variable returns,•which may be positive, in the form of adividend or any other economic ornegative benefit; and

the ability to use its power over the•investee to affect the amount of theinvestor’s returns

The assets, liabilities, income and expensesof subsidiaries are fully consolidated inthe consolidated financial statements andthe share of equity and profit attributableto non-controlling interests is presentedseparately under non-controlling interestsin the consolidated statement of financialposition and income statement.

transactions between entities within theGroup are fully eliminated on consolidation.

All intragroup assets, liabilities, equity,income, expenses and cash flows arising from

Investments in associates and jointventures are consolidated using the equitymethod. Under this method, theinvestment is initially recognised at costand adjusted to recognise the Group’s shareof the post-acquisition profits or losses andmovements in other comprehensiveincome. If the Group’s share in anassociate’s losses is greater than itsinvestment in that associate, the Groupceases to recognise its share in futurelosses. Additional losses are only recognisedif the Group is under a legal or constructiveobligation to do so or if it has madepayments on behalf of the associate.

BUSINESS COMBINATIONS 2.1.2.(AND GOODWILL)

Acquisitions of businesses are accountedfor using the acquisition method, inaccordance with IFRS 3. The cost ofa business combination (or “considerationtransferred”) is calculated as the aggregateof the acquisition-date fair values of:

the assets transferred by the Group;•

the liabilities acquired by the Group from•the former owners of the acquiree; and

the equity interests issued by the Group•in exchange for control of the acquiree.



The Group may choose whether to measurenon-controlling interests at fair value or atthe non-controlling interest’s proportionateshare of the acquiree’s net identifiableassets.

Acquisition-related expenses are expensedas incurred.

Measuring business combinations (or goodwill)

The difference between the considerationtransferred and the acquirer’s share inthe fair value of the identifiable assets andliabilities and contingent liabilities atthe acquisition date is recognised ingoodwill on a separate line in the financialstatements. These items may be adjustedwithin 12 months of the acquisition date(measurement period). Any contingentconsideration due is recognised atits acquisition-date fair value and includedin the cost of the combination. Subsequentchanges in the fair value of contingentconsideration are taken to profit or loss.

Acquisitions carried out on favourable terms

If, after remeasurement, the net of theacquisition-date amounts of the identifiableassets acquired and the financial liabilitiesassumed in a business combination exceedsthe aggregate of the considerationtransferred, the amount of any non-controlling interests in the acquiree, and thefair value of the Group’s previously heldinterest in the acquiree (if any), the excess isrecognised immediately in profit or loss asa bargain purchase gain.

Measuring non-controlling (minority) interests

Non-controlling interests entitle the holders toa proportionate share of the entity’s net assetsin the event of liquidation. Consequently, foreach business combination, non-controllinginterests can be initially measured:

at fair value, resulting in the recognition of•additional goodwill (the “full goodwill”method); or

at the non-controlling interest’s propor-•tionate share in the recognised amountsof the acquiree’s net identifiable assets(the “partial goodwill” method).

Changes in ownership interest

The recognition of subsequent changes inownership interest (through acquisitions ofadditional interests or disposals) dependson the definition of the impact on thecontrol of the entity in question.

If control is not affected by the change inownership interest, the transaction isregarded as between shareholders. Thedifference between the purchase (or sale)value and the book value of the interestacquired (or sold) is recognised in equity.

If control is affected (as is the case, forexample, for business combinationsachieved in stages), the interest held by theGroup in the acquiree before the businesscombination is remeasured at fair valuethrough profit or loss.



Impairment of goodwill

Following initial recognition, goodwill ismeasured at cost less any accumulatedimpairment losses, determined in accordancewith the method described in note 9.3.

Goodwill impairment losses are recordedunder “Non-recurring operating incomeand expenses” within profit (loss) fromoperating activities in the consolidatedincome statement.

TRANSLATION OF FOREIGN 2.1.3.CURRENCIES

Functional currency 2.1.3.1.and presentation currency

The items in the financial statements ofeach Group entity are measured using thecurrency of the primary economicenvironment (or “functional currency”)inwhich the entity operates.

The consolidated financial statementspresented in this report were prepared ineuros, which is the Group’s presentationcurrency.

Recognition of foreign 2.1.3.2.currency transactions

For the purpose of preparing the financialstatements of each entity, foreign currencytransactions of subsidiaries (i.e., currenciesother than the entity’s functional currency)are recorded using the exchange ratesprevailing at the transaction date.

Foreign exchange gains and lossesresulting from this translation at year-endexchange rates, or arising on the settlementof these monetary items, are recognised inthe income statement for the period inwhich they occur.

Monetary items denominated in foreigncurrencies are translated at the end of eachreporting period at the year-end rate.

Non-monetary items denominated in foreigncurrencies and recognised at fair value aretranslated using the exchange rate prevailingat the date the fair value was determined.Non-monetary items denominated in foreigncurrencies and measured at historical costare not remeasured.

When a gain or loss on a non-monetaryitem is recognised directly in equity,the “currency” component of this gain orloss is also recognised in equity. Otherwise,this component is recognised in profit orloss for the period.

Translation of the financial 2.1.3.3.statements of foreign entities

The results and financial positions of theGroup’s entities with functional currenciesother than the presentation currency aretranslated into euros as follows:

balance sheet items other than equity are•translated at the year-end exchange rate;

income statement and statement of cash•flow items are translated at the averageexchange rate for the year;

all resulting exchange differences are•recognised under “Foreign currencytranslation adjustments” within othercomprehensive income.



LIABILITIES UNDER PUT 2.1.4.AND CALL OPTIONS

The Group may grant put options tonon-controlling shareholders of some of itssubsidiaries. The exercise price of theseoptions is generally measured based onfuture performance and profitability. Theseoptions may be exercised at any time or ona specific date.

The Group initially recognises a liabilitycorresponding to the exercise price of putoptions granted to non-controlling share-holders of the entities concerned. Theoffsetting entry for this liability is deductedfrom equity.

The difference between the Group’s liabilityunder put options and the book value ofthe non-controlling interests is recognisedas a deduction from equity attributable toowners of the parent. Put options areremeasured each year; any subsequentchanges in the option relating to changesin estimates or to the unwinding of thediscount on the option are also recognisedin equity. Changes in the liability under putoptions on non-controlling interests areaccounted for in line with the treatmentapplied upon the acquisition of non-controlling interests.

If the option expires without beingexercised, the book value of the financialliability is reclassified to equity.

ASSETS AND LIABILITIES 2.1.5.HELD FOR SALE AND DISCONTINUED OPERATIONS

accounting treatment and presentation ofassets held for sale and discontinuedoperations (corresponding to operationsthat have been disposed of or classified asheld for sale).

IFRS 5 “Non-current Assets Held for Sale andDiscontinued Operations” requires a specific

A non-current asset or group of directlyrelated assets and liabilities, is classified as“held for sale” if its book value will berecovered principally through a saletransaction rather than through continuinguse. For this to be the case, the asset(or asset group) must be available forimmediate sale in its present condition andits sale must be highly probable.Management must be committed to thesale and the sale should be expected toqualify for recognition as a completed salewithin one year of the date of classification.

These assets (or disposal group) aremeasured at the lower of their book valueand estimated sale price less costs to sell.These assets cease to be amortised fromthe moment they qualify as “assets(or group of assets) held for sale”. They arepresented on a separate line on the Groupbalance sheet, without restatement ofprevious periods.

An operation discontinued, sold, or held forsale is defined as a component of an entitywith cash flows that can be clearlydistinguished from the rest of the entity andwhich represents a major, separate line ofbusiness or area of operations. For allpublished periods, income and expenserelating to discontinued operations arepresented separately in the incomestatement under “Profit (loss) fromdiscontinued operations” and are restated inthe statement of cash flows.



Profit from discontinued operations

A discontinued operation is a componentwhich the Group has either disposed of orhas classified as held for sale, and which:

represents a separate major line of•business or geographical area ofoperations;

is part of a single, coordinated plan to•dispose of a separate major line of businessor geographical area of operations; or

is a subsidiary acquired exclusively with•a view to resale.

Profit from discontinued operationsincludes:

the post-tax profit or loss of discontinued•operations generated up until the disposaldate, or until the end of the reportingperiod if the business was not disposed ofby the year-end;

the post-tax gain or loss recognised on•the disposal of continued operations thathave been disposed of by the year-end.

2.2. Changes in the scope of consolidationEconocom group’s scope of consolidation ispresented in note 2.3 “Main consolidatedcompanies”.

ACQUISITIONS DURING 2.2.1.THE YEAR

During the second half of 2020, Econocomgroup signed with the Bourbon group thetakeover of Les Abeilles, a French specialistin towing and rescue on the high seas.

CHANGES IN OWNERSHIP 2.2.2.INTEREST

Exaprobe and its subsidiaries

In the first half of 2020, the Group exerciseda purchase option regarding a non-controlling interest, increasing its stakefrom 90% to 95%.

During the second half of the year,the Group exercised another purchaseoption, increasing its stake to 100%.

interest is therefore stood at 80% as of31 December 2020.

In the last quarter of 2020, the Group thensold 20% of its shares; the percentage of

Altabox

In the second half of the year, the Groupacquired an additional 5% stake followingthe exercise of a put option; increasingthe stake from 75.03% to 80.01%.

Asystel Italia

In the second half of 2020, the Groupexercised its purchase option regardingcertain non-controlling interests; increasingits stake from 51% to 70%.

Bizmatica group

The Group has exercised its call optionvis-à-vis the minority shareholders;the percentage of interest has increasedfrom 70% to 100%.

Energy Net

At the end of the year, the Group acquiredthe remaining 20% of the shares byexercising its purchase options, increasingits stake to 100% as of 31 December 2020.



CREATION OF COMPANIES2.2.3.

There was no significant company creationin 2020.

ASSETS/LIABILITIES 2.2.4.CLASSIFIED AS HELD FOR SALE, DISCONTINUED OPERATIONS

these entities as “Net income fromdiscontinued operations” in accordancewith IFRS 5.

In 2020, the Board of Directors updated thelist with some non-strategic activities andentities intended to be discontinued ordisposed of. Consequently, the financialstatements at December 2019 have beenrestated in order to ensure comparability ofperiods, reclassifying the 2019 Profit (loss) of

Impacts on the income statementand statement of cash flows

The net income from these activities ispresented on a distinct line of the incomestatement, under “Net income fromdiscontinued operations”. In accordancewith IFRS 5, comparative figures arerestated. The application of IFRS 5 impactsthe 2020 and 2019 consolidated incomestatements as follows:


Revenue from continuing operations (97.2) (173.8)

Operating expenses* 95.8 177.4

Profit (loss) from current operating activities (1.4) 3.6

Other non-recurring operating income and expenses (3.0) 6.4

Profit (loss) from operating activities (4.4) 10.0

Other financial income and expenses 0.4 4.1

Profit (loss) before tax (4.0) 14.1

Income tax expense 3.3 (2.7)

Profit (loss) from discontinued operations 0.7 (11.4)

In accordance with IFRS 5, property, plant and equipment was not amortised, amortisations which would have*

represented €8.8 million in 2020, versus €7.2 million in 2019.

Cash flows from discontinued operations restated. The application of IFRS 5 impactsare also presented on a separate line of the 2020 and 2019 consolidated cash flowthe statement of cash flows. In accordance tables as follows:with IFRS 5, comparative figures are


Net cash flows from (used in) operating activities 4.3 10.1

Net cash from (used in) investing activities (7.7) 1.2

Net cash from (used in) financing activities (0.6) 0.2

Impact of change in exchange rate 0.1 (0.2)

Net cash from (used in) discontinued operations 3.9 (11.4)



Assets and liabilities held for sale

The assets and liabilities of these activities are presented on separate lines of the statementof financial position. At 31 December 2020, the application of IFRS 5 impactedthe consolidated statement of financial position as follows:

in € millions 31 Dec. 2020 31 Dec. 2019

Non-current assets 33.1 124.6

Current assets 34.6 73.1



Non-current liabilities 5.6 9.0

Current liabilities 23.8 74.3


ADJUSTMENTS 2.2.6.TO ACQUISITIONS MADE IN THE PREVIOUS FINANCIAL YEAR

No material adjustments were made toacquisitions made in the previous financialyear.

DISPOSALS FOR 2.2.7.THE FINANCIAL YEAR

Econocom Business Continuity

On 30 June 2020, the Group sold all theshares in Econocom Business Continuity tothe investment company Chequers Capital,resulting in a capital gain, that impacted the“Profit (loss) from discontinued operations”line on the income statement.

Cineolia

On 28 July 2020, the Group sold itssubsidiary. The transaction generateda capital gain for the Group, that impactedthe “Profit (loss) from discontinuedoperations” line on the income statement.

Econocom Digital Security

On 30 September 2020, the Group soldits shares in Econocom Digital Security toAtos group. The capital gain is recognisedin the income statement under “Other non-recurring operating income and expenses”.



Main consolidated companies2.3.The Group’s main fully consolidated subsidiaries were as follows:

Country Company 2020 2019

% interest % control % interest % control

Holding companies

Belgium Econocom Finance SNC 100.00% 100.00% 100.00% 100.00%

France Econocom SAS 100.00% 00.00% 100.00% 100.00%


Germany Econocom Deutschland GmbH 100.00% 100.00% 100.00% 100.00%

Belgium Atlance SA/NV 100.00% 100.00% 100.00% 100.00%

Belgium Econocom Lease SA/NV 100.00% 100.00% 100.00% 100.00%

Spain Econocom SA (Spain)(1) 100.00% 100.00% 100.00% 100.00%

US Econocom Corporation 100.00% 100.00% 100.00% 100.00%

France Atlance SAS 100.00% 100.00% 100.00% 100.00%

France Cineolia SAS - - 60.00% 60.00%

France Econocom France SAS 100.00% 100.00% 100.00% 100.00%

France Les Abeilles 100.00% 100.00% - -

Ireland

Italy Econocom International Italia SpA(1) 100.00% 100.00% 100.00% 100.00%

The Netherlands Econocom Nederland BV 100.00% 100.00% 100.00% 100.00%

The Netherlands

Poland Econocom Polska SP z.o.o 100.00% 100.00% 100.00% 100.00%

UK Econocom Ltd 100.00% 100.00% 100.00% 100.00%


Germany Energy Net 100.00% 100.00% 80.00% 80.00%

AustriaEconocom Austria GmbH (formerly Osiatis Compute Services)

100.00% 100.00% 100.00% 100.00%

Belgium Econocom Managed Services SA/NV 100.00% 100.00% 100.00% 100.00%

Belgium Econocom Products & Solutions Belux SA/NV 100.00% 100.00% 100.00% 100.00%

Brazil Econocom Brazil group 100.00% 100.00% 100.00% 100.00%

Spain Com 2002 SL Nexica 100.00% 100.00% 100.00% 100.00%

SpainEconocom Servicios (formerly Econocom Osiatis SA)

100.00% 100.00% 96.51% 96.51%

Spain Altabox(2) 80.01% 80.01% 75.03% 75.03%

Spain Caverin 100.00% 100.00% 100.00% 100.00%

Spain, Brazil, Mexico Gigigo group 100.00% 100.00% 100.00% 100.00%

France/US/Canada Exaprobe/Aciernet group(2) 80.00% 80.00% 90.00% 100.00%

France Alter Way group 64.45% 64.45% 64.45% 64.45%

France Aragon eRH 100.00% 100.00% 100.00% 100.00%

France ASP Serveur SAS 100.00% 100.00% 100.00% 100.00%



Country Company 2020 2019

% interest % control % interest % control

France Digital Dimension SAS 100.00% 100.00% 100.00% 100.00%

France Econocom Digital Security SAS - - 65.50% 65.50%

France Econocom Products & Solutions SAS 100.00% 100.00% 100.00% 100.00%

France ESR SAS 100.00% 100.00% 100.00% 100.00%

France Helis SAS 63.02% 63.02% 63.02% 63.02%

France Infeeny group 93.77% 93.77% 95.68% 95.68%

France Econocom Business Continuity - - 100.00% 100.00%

France Econocom Infogérance Systèmes 100.00% 100.00% 100.00% 100.00%

France Econocom-Osiatis Ingénierie SAS 100.00% 100.00% 100.00% 100.00%

Italy/Poland Bizmatica group(2) 100.00% 100.00% 70.00% 70.00%

Italy Asystel Italia(2) 70.00% 70.00% 51.00% 51.00%

Italy BDF 100.00% 100.00% 100.00% 100.00%

Luxembourg Econocom PSF SA 100.00% 100.00% 100.00% 100.00%

Luxembourg, France, Germany, Romania, USA/Ita./Spain

SynerTrade group 100.00% 100.00% 100.00% 100.00%

Netherlands, Belgium BIS group 100.00% 100.00% 100.00% 100.00%

UK JTRS(3) 45.00% 45.00% 45.00% 45.00%

Econocom International Italia SpA was also involved in the Digital Services & Solutions business in 2019.(1)

Change in interest and control rates: see section 2.2.3.(2)

JTRS was consolidated under the equity method as of 31 December 2020.(3)



Contingent acquisition-related liabilities2.4.The contingent acquisition-related liabilitiesinclude options to commit to buy backnon-controlling interests, contingentconsideration and deferred payments, mostof which have been granted subject toattainment of future financial targets. Theyare thus dependent on the estimated futureperformance of the entities concerned (e.g.EBIT multiples, expected future cash flows,etc.).

have put options) on the remaining shares itdoes not already own, allowing it to acquireall or part of the share capital of thefollowing entities: Altabox, Alter Way, AsystelItalia, Bizmatica, Exaprobe, Helis, andInfeeny. Under these options, Econocomagreed to acquire the shares and also hasthe right to be sold the shares by thenon-controlling shareholders.

At the end of 2020, the Group has calloptions (and non-controlling shareholders

The table below shows changes incontingent acquisition-related liabilities overthe year:

in € millions

Put and calloptions on

non-controlling

interests

Contingentconsideration

Deferredpayments

Totalcontingent

acquisition-related

liabilities

Currentportion

Non-currentportion

31 Dec. 2019 59.1 3.8 3.0 66.0 28.0 38.0

Disposals and IFRS 5 (7.9) - - (7.9)

Increases against equity or goodwill

- 2.0 - 2.0

Disbursements (9.6) (0.4) (2.7) (12.7)

Change in fair value through equity

14.1 - - 14.1

Reclassification (5.2) - 5.2 -

Change in fair value through profit (loss) from non-current operating activities

- (0.7) 0.8 0.1

Change in fair value through profit (loss) from current operating activities

0.3 - - 0.3

31 Dec. 2020 50.9 4.8 6.3 61.9 13.5 48.5

Put options on non-controlling interestsare classified in “Other liabilities”, withchanges in fair value recognised in equity.

Contingent consideration and deferredpayments are classified within financialliabilities (see note 13.3).



Main impacts of the Covid-19 pandemic2.5.As covered in chapter 1 of the ManagementReport, the Econocom group managed tolimit the fall in its revenue to 12.2% (11.3%organic). The Digital Services & Solutionsbusiness line even managed to contain thedecline in revenue to 5.9%, recording growthof 4.7% in the fourth quarter of 2020.

Group costs in 2020 were €5.6 million, ofwhich €2.5 million in additional costs(purchases of masks, hand gel etc.) and€2.7 million from idle human resources (netof subsidies granted by governments ofcountries where we are active). In addition,losses on receivables that have becomeirrecoverable due to the crisis linked to theCovid-19 pandemic represented aninsignificant amount at the end ofDecember 2020.

All these costs are presented under “Othernon-current operating expenses” as referredto in note 5. “Other non-current operatingincome and expenses”.

The impairment tests on goodwill and otherlong term assets (using methods andassumptions described in 9.3.) had noimpact on the other non-current operatingexpenses.

In terms of net cash at bank and net bookdebt, the measures taken to reducethe working capital requirement as well asthe disposal of non-strategic assets enabledthe Group:

do without states’ guaranteed loans; and,•finally

achieve its debt reduction target by•31 December 2020, despite the crisis.



Segment information3.The segment information presented inaccordance with IFRS 8 has been preparedon the basis of internal management datadisclosed to the Executive Committee, theGroup’s primary operating decision-makerwith respect to allocating resources andassessing performance.

Services and Products & Solutionssegments. Over time, the distinctionbetween these businesses had lostits relevance given the Group’s positioningas an integrator of digital solutions thatcombine products, software and services.

On 1 January 2019, the Group created a newreporting segment, Digital Services &Solutions (DSS), which combines the former

Consequently, the Group’s business is nowbroken down into two operating businesssegments:

Combined strategic operating business segments

Description Countries


Innovative, tailored financingsolutions to ensure more effective

administrative and financialmanagement of the ICT and digital

assets of the businesses.

Germany, Belgium, Canada, Spain,United States, France, Great

Britain, Ireland, Italy, Luxembourg,Netherlands, Poland.


Using our expertise to supportthe transformation to the new

digital world (in consulting,infrastructure management,development of applications

and integration of digital solutions)and with services ranging from

the design to roll-out of solutions,and from the sale of hardware

and software (PCs, tablets, servers,printers, licences, digital devices,

etc.) to systems integration.

Germany, Austria, Belgium,Canada, Spain, United States,

France, Italy, Luxembourg,Morocco, Netherlands.

Each segment has a specific profitabilityprofile and has its own characteristics;segments are managed depending on thetype of products and services sold in theireconomic and geographical environments.

Sales and transfers between segments arecarried out on arm’s-length terms andare eliminated according to standardconsolidation principles.



Information by operating business segment3.1.The following table presents the contribution of each operating business segment tothe Group’s results:

in € millionsTechnology

Management &Financing

Digital Services& Solutions Total

2020 revenue

Revenue from external customers 912.6 1,646.1 2,558.7

Internal operating revenue 4.9 210.0 214.9

Total – Revenue from operating segments 917.5 1,856.1 2,773.6

Profit (loss) from current operating activities(1) 37.0 85.5 122.5

Amortisation of intangible assets from acquisitions (2.1) - (2.1)

Profit (loss) from continuing Profit (loss) from current operating activities

34.9 85.5 120.4


in € millions, restated*Technology


Digital Services& Solutions Total

2019 revenue

Revenue from external customers 1,134,7 1,779.3 2,914,0

Internal operating revenue 2.9 267.2 270.0

Total – Revenue from operating segments 1,137.6 2,046.5 3,184.0

Profit (loss) from current operating activities(1) 44.0 83.6 127.6

Amortisation of intangible assets from acquisitions (2.0) - (2.0)

Profit (loss) from current operating activities 42.0 83.6 125.6

In accordance with IFRS 5 (see 2.2.5), 2019 income and expenses of operations considered discontinued in 2020 are*

reclassified to “Profit (loss) from discontinued operations” in the 2019 income statement.Before amortisation of intangible assets from acquisitions.(1)



Internal transactions include:

sales of goods and services: the Group•ensures that these transactions areperformed at arm’s length and that it doesnot carry any significant internal margins;

cross-charging of overheads and employee•benefits expense.

The Group’s segment profit corresponds to“Profit (loss) from current operatingactivities”. This corresponds to profit (loss)from operating activities beforenon-recurring operating income andexpenses and amortisation of intangibleassets from acquisitions.

Breakdown of revenue by geographical area3.2.

in € millions Revenue by geographical area(origin)

2020 2019 restated*

France 1,446.0 1,544.2

Benelux 347.0 393.4

Southern Europe 444.5 528.6

Northern & Eastern Europe 226.3 261.1

Americas 94,9 186.7

Total 2,558.7 2,914





Profit (loss) from current 4.operating activitiesProfit (loss) from current operating activitiesincludes all income and expenses that arisedirectly from the Group’s business, bothrecurring items and items resulting fromone-off decisions or transactions.

Profit (loss) from current operating activities,representing profit (loss) from operatingactivities restated for other non-recurringincome and expenses, is an analytical lineitem intended to facilitate the understandingof the Group’s operating performance.

Income from contracts with customers4.1.Revenue from contracts with customers by business line breaks down as follows:

in € millions 2020 2019 restated*

Technology Management & Financing 912.6 1,134.7

Digital Services & Solutions 1,646.1 1,779.3

Total revenue from continuing operations 2,558.7 2,914.0



REVENUE RECOGNITION: 4.1.1.ACCOUNTING PRINCIPLES

Revenue recognition

The revenue recognition method variesdepending on the nature of theperformance obligations of the contractbinding Group entities and their respectivecustomers. Performance obligations are thegoods or services promised in the contract.

The performance obligation is the unit ofaccount for revenue recognition: the priceof the contract is allocated to eachindividual performance obligation, anda pattern of revenue recognition isdetermined for each such obligation.

obligation by providing the customer withthe promised good or service.

Econocom recognises revenue when it hassatisfied (or as it satisfies) a performance

A performance obligation is satisfied whencontrol of the good or service is transferredto the customer. This transfer may takeplace at a point in time or over time.Revenue is recognised:

over time when one of the following•conditions is fulfilled:

the customer receives the benefits of▶the service as the entity performssuch services,

the customer obtains control of the▶asset as the asset is created,

the final asset has no alternative use▶for the entity and the entity has anenforceable right to payment forperformance completed to date;



in full at a point in time, namely at•completion, in all other cases.

Application to the Group’s various businesses

Sale of assets

Revenue is recognised when the goods aredelivered and ownership is transferred,when the following conditions are met:

the Group has transferred to the buyer•the significant risks and rewards ofownership of the goods;

the Group retains neither continuing•managerial involvement to the degreeusually associated with ownership noreffective control over the goods sold.

Finance lease sales

In accordance with IFRS 16, the revenuerecognition rules differ depending onthe type of contract (see 4.1.2).

Sales of services

The following types of contracts andactivities are covered:

capitalised if they create a resource thatwill be used for the future delivery ofservices;

outsourcing contracts: these contracts•are split into a “build” phase and a “run”phase when the deliverables are distinct;revenue from the two phases isrecognised as and when control istransferred. For the “build” phase to bedeemed distinct, it must be representativeof a service from which the customer canbenefit distinctly from the delivery ofthe “run” phase. If this is not the case,the revenue may only be recognised asthe recurring services are performed, andthe costs of the “Build” phase must be

maintenance activities operated by•Econocom: revenue is recognised ona percentage-of-completion basis;

activities involving the loan of employees•under time-and-materials contracts:revenue is recognised on a time-spentbasis;

development of applications under fixed-•price contracts: revenue is recognised ona percentage of completion basis ascontrol is transferred;

infrastructure installation projects: the•percentage-of-completion method stillapplies insofar as the transfer of controltakes place over time.

For certain fixed-price contracts providingfor a number of different serviceobligations, the transaction price maysometimes be reallocated to the variousperformance obligations on a case-by-casebasis in order to reflect the economic valueof the services rendered (which may differfrom their contractual value).

For contracts separated into stages,revenue and margin are recogniseddepending on the stage of completion inaccordance with the method that bestreflects the transfer of goods and services tothe customer. This results in the recognitionof revenue accruals or deferred incomewhen invoicing does not reflect the stage ofcompletion of the work. A contingencyprovision for the expected loss on a projectis recognised if the cost of the project isgreater than the expected revenue.



“Principal” versus “agent” considerations

In the course of its business, the Group maybe required to resell equipment, softwareand services purchased from third parties.For the supply of these goods and services,Econocom may act as either principal oragent.

Econocom is a principal if its “performanceobligation” requires it to provide goodsand/or underlying services to the customer.This means that Econocom thereforecontrols the good or service before it istransferred to the customer.

Econocom also records direct deliveries onthe principal basis. By direct deliveries, weunderstand the sale of materials stored inthe warehouses of Econocom’s suppliersand shipped directly to the end customer.

These flows are recognised on the principalbasis because the Econocom group:

contractually sets the prices paid by•the end customer;

has the capacity to choose, up until•the last moment, whether to go aheadwith a direct delivery;

is responsible to the end customer for•acceptance of equipment;

is responsible for the management of•equipment returns if necessary.

The Econocom group is an agent if its“performance obligation” requires it toarrange for a third party to provide goodsor underlying services, without being ableto direct use and obtain key economicbenefits. In this case, Econocom does notcontrol the goods and services before theyare transferred to the customer.

Management has made a significantjudgement related to principal versusagent considerations. The impact on thepresentation of reported revenue is asfollows:

on a gross basis when Econocom is•a principal;

net of the cost of sales when Econocom is•an agent.

Presentation in the balance sheet

Services in progress at the end of thereporting period are recognised in revenueaccruals and are estimated based on thesale price. If accrued revenue constitutes anunconditional right to a consideration, i.e.,if the passage of time is sufficient forpayment of the consideration to fall due,the accrued revenue will constitutea receivable. In all other cases, it constitutesthe contract assets. Revenue accruals areclassified in “Trade and other receivables”.

Advance payments received fromcustomers and prepaid income are thecontract liabilities. They are classified in“Other current liabilities”.

Contract performance costs are costs thatare directly assigned to a customercontract and have not yet been rebilled. Forexample, they may include dedicatedinventories in transit, costs allocated toservice obligations, transition fees inoutsourcing contracts or marginal costsfrom obtaining contracts (i.e., costs thatEconocom would not have incurred ifit had not won the contract). These costsare capitalised if Econocom expects torecover them. They are then classified in“Other current assets”.



LEASE ACCOUNTING4.1.2.

Virtually all leases entered into by theTechnology Management & Financingbusiness as lessor are finance leases, andEconocom acts as a dealer-lessor, althoughoperating leases may also occasionally becontracted.

Finance leases4.1.2.1.

The Group identifies finance leasecontracts, as opposed to the operatingleases, using the criteria set out in IFRS 16.A lease is classified as a finance lease(rather than an operating lease) if ittransfers substantially all the risks andrewards incidental to ownership. Whendetermining whether a lease transferssubstantially all the risks and rewardsincidental to ownership and shouldtherefore be classified as a finance lease,the Group generally uses (i) the fair valuecriterion (i.e., the lease is a finance lease if,at inception, the present value of theminimum lease payments amounts to atleast substantially all of the fair value of theleased asset), and then (ii) the economic lifecriterion (i.e., the lease is a finance leaseif the lease term is for the major part of theeconomic life of the asset even if title is nottransferred). At the beginning of the lease,the discounted value of the minimum leasepayments must be equal to almost theentire fair value of the leased asset.The thresholds applied are based on thoseof ASC 840 under US GAAP, i.e., 85%, of thefair value of the leased asset and 75% of theasset’s economic life. In practice, as it is theGroup’s policy not to use its equity to fundleases and to limit its risk on residual value,operating leases are fairly rare.

Finance leases where the Group is lessorare mainly refinanced contracts in which:

all-inclusive price representing thepresent value of future minimum leasepayments receivable and the residualfinancial value of the equipment;

the lease contracts and equipment are•sold to refinancing institutions at an

residual financial value represents the•amount for which the Group undertakesto repurchase the equipment upon expiryof the lease;

lease payments due by lessees are paid•directly to the refinancing institutions ona non-recourse basis, which means that theGroup transfers the risk of payment default.

From a legal standpoint, the Grouprelinquishes ownership of the equipmenton the date of sale to the refinancinginstitution and recovers ownership at theend of the lease term by repurchasing theequipment. In some cases, the Group asksthe refinancing institutions to grantit invoicing and payment agency on theirbehalf. This does not alter the transfer ofthe risk of payment default fromthe lessees to the refinancing institutions.

Econocom acts as a dealer lessor andtherefore recognises a margin as from theinception of the lease. Revenue, cost ofsales and the residual interest in leasedassets are recognised progressively asassets are delivered, pro rata tothe amount of each delivery.

IFRS 16 states that initial recognition ofa lease must take place at thecommencement of the lease term, i.e.,the date from which the lessee is entitledto exercise its right to use the leased asset.The provisions of the Group’s General LeaseConditions define this date as the date onwhich the leased asset is delivered, which isofficially confirmed when the Statement ofAcceptance is signed.

Certain sales and lease-backs in the eventthat Econocom is not considereda dealer-lessor the following are recorded:



in accordance with IFRS 9 (to which•IFRS 16 refers) when the conditions forrecognising a sale within the meaning ofIFRS 15 between the lessee and Econocomare not met;

in accordance with IFRS 16 (direct finance•lease) if the transfer of the asset toEconocom by the lessee meets the criteriaset out in IFRS 15.

In both cases, Econocom recognisesa financial asset. Revenue is not recognisedat the transaction date and financialincome relating to operating activities isrecognised over the entire lease term basedon the interest rate implicit in the lease.

In the case of a sale without recourse toa refinancing institution of a sale andleaseback agreement, only the correspondingmargin is recognised at the date of sale.

Regardless if they are sale & lease-backcontracts or not, Finance leases arerecognised as follows:

Balance sheet

For each lease, the Group’s residual interestin the leased assets (see note 11.1) isrecognised in assets and the gross liabilityfor purchases of leased assets (defined innote 11.2) is recognised in liabilities.

Income statement

Revenue on these contracts corresponds tothe present value of future minimum leasepayments (corresponding to the paymentsthat the lessee is required to makethroughout the realisation period and thelease term).

Financial income not yet acquired fromlease payments is recognised in theincome statement when the contracts arerefinanced.

assets” (see note 11.2) and the “Residualinterest in leased assets” (see note 11.1) items.

The impacts of discounting only concern the“Gross liability for purchases of leased

The cost of sales represents the purchasecost of the asset.

The Group’s residual interest in the leasedassets is deducted from the cost of salesbased on its present value.

Operating leases4.1.2.2.

When the Econocom group retains all therisks associated with the lease and there isno transfer of the main risks and benefitsassociated with the ownership of the asset,operating leases are recognised as follows:

Balance sheet

The leased equipment is recorded asan asset in the balance sheet anddepreciated on a straight-line basis overthe duration of the contract to write itdown to its residual value, which representsthe Company’s residual interest in the assetat the end of the lease term.

Income statement

Income statement entries are made ona periodic basis with the invoiced leasepayments recorded as revenue andthe depreciation described above recordedas an expense.

Lease extensions4.1.2.3.

Revenue is recognised on lease extensionsin line with the initial classification ofthe lease, i.e.:

if the initial contract was classified as•an operating lease, revenue from theextension of the lease will be deferred overthe period of the lease extension;

if the initial contract was classified as•a finance lease, revenue from the extensionof the lease will be recognised in full on thelast day of the initial contract.



Employee benefits expense4.2.The following table presents a breakdown of employee benefits expense:


Wages and salaries (335.2) (371.8)

Social costs (115.6) (130.3)

Other (18.8) (17.8)

Total (469.5) (520.0)



Expenses relating to defined benefit Group’s subsidiaries in France, Italy andpension plans and included in other Belgium. The characteristics of these plansemployee benefits expense concern the are set out in note 17.



Government grants4.3.

Government grants are recognised asa deduction from costs (e.g. wages andsalaries), or within other operating incomeand expenses, as appropriate.

Government grants are only recognisedwhen the Group is certain to collect them.In accordance with IAS 20, the Groupapplies different accounting treatment forgrants related to assets (or investmentsubsidies) and grants related to income.

Grants related to assets are recognised inprofit or loss over the periods in which theGroup expenses the costs that the grants areintended to compensate. In practice, theyare recognised over the periods and in theproportions in which depreciation expense isrecognised on the depreciable asset coveredby the grant, with the deferred incomerecognised in liabilities. Grants related toincome are recognised to offset the coststhat they are intended to cover.

its unoccupied resources due to the Covid-19crisis. The net cost of these subsidies isrecognised as indicated in section 2.5.

In 2020, the Group benefited from varioussubsidies aimed at limiting the cost of

Tax credits equivalent to subsidies

Tax credits are accounted for depending onthe tax treatment applicable in eachcountry:

if the tax credit is only calculated based on•specific expenses, does not adjust thecalculation of the subsidiary’s taxableprofit, is not limited by the tax liability ofthe subsidiary, and may be refunded incash, it is treated as a grant within themeaning of IAS 20 – Accounting forGovernment Grants and Disclosure ofGovernment Assistance and includedwithin profit (loss) from operating activities;

in all other cases it is recognised within•income tax.

French tax credits known as the Créditd’Impôt Recherche (CIR) are recognised asgovernment grants.

External expenses4.4.The following table presents a breakdown of external expenses:


Fees paid to intermediaries and other professionals (48.4) (65.3)

Agents’ commissions (31.3) (34.3)

External services (rent, maintenance, insurance, etc.) (10.0) (11.3)

Other external expenses (subcontracting, public relations, transport, etc.) (37.9) (45.8)

Total (127.7) (156.7)In accordance with IFRS 5 (see 2.2.5), 2019 income and expenses of operations considered discontinued in 2020*




Additions to and reversals of depreciation, 4.5.amortisation and provisionsAdditions to and reversals of depreciation, amortisation and provisions break down as follows:


Intangible assets: franchises, patents, licences and similar rights, business assets (33.1) (39.0)

Property, plant and equipment (leased assets) - (0.5)

Other property, plant and equipment (9.3) (11.0)

Depreciation and amortisation (42.4) (50.5)Additions to and reversals of provisions for operating contingencies and expenses 1.4 3.2



Net impairment losses on current 4.6.and non-current assetsin € millions 2020 2019 restated*

Impairment of inventories (1.4) (2.1)

Reversals of impairment of inventories 1.5 2.4

Net impairment losses/gains – inventories 0.1 0.3

Impairment of doubtful receivables (23.3) (16.9)

Reversals of impairment of doubtful receivables 37.8 10.5

Gains and losses on receivables (3.4) -

Net impairment losses/gains – trade receivables 11.1 (6.4)

Losses/gains on other asset realisations (5.8) (1.2)

Total 5.4 (7.3)In accordance with IFRS 5 (see 2.2.5), 2019 income and expenses of operations considered discontinued in 2020*




Other recurring operating income and expenses4.7.Other recurring operating income and expenses break down as follows:


Cross-charging and indemnities received 15.8 7.9

Capital losses on sales of property, plant and equipment and intangible assets – recurring operating activities 0.1 (0.9)

Cross-charging and indemnities paid (6.6) (2.5)

Total 9.3 4.5In accordance with IFRS 5 (see 2.2.5), 2019 income and expenses of operations considered discontinued in 2020*


Net finance income (expense) from operations4.8.The following table breaks down financial income and expenses relating to operatingactivities by type of income/expenses:


Financial income related to Technology Management & Financing operations 23.7 22.6

Miscellaneous financial income from operating activities 1.1 1.7

Total financial income – operating activities 24.9 24.3

Financial expenses related to Technology Management & Financing operations (19.1) (17.9)

Miscellaneous financial expenses from operating activities (1.7) (1.4)

Exchange losses (1.9) (0.1)

Total financial expenses – operating activities (22.7) (19.4)

Total 2.2 4.8



Financial income and expenses relating to Technology Management & Financing operationsreflect the unwinding of the discount during the year on the gross liability for purchases ofleased assets, the Group’s residual interest in leased assets and lease payments outstanding.

Net exchange losses result mainly from fluctuations in the pound sterling and US dollar.



Other non-recurring operating 5.income and expensesNon-recurring operating income andexpenses mainly include:

restructuring costs and costs associated•with downsizing plans;

the costs of relocating premises;•

costs relating to acquisitions (acquisition•fees);

options to buy out non-controlling interestsare recognised directly in equity;

changes in the fair value of acquisition-•related liabilities (contingent consideration);changes in the fair value of put and call

material gains and losses on disposals of•property, plant and equipment andintangible assets, or of operating assetsand continuing operations;

goodwill impairment losses;•

and, more generally, income and expenses•that are deemed unusual in terms of theirfrequency, nature or amount.


Restructuring costs (13.6) (27.9)

Cost of vacant space and impairment of fixed assets (8.6) (9.9)

Costs linked to the Covid-19 pandemic (5.6) -

Other (8.4) 13.3

Other non-recurring operating income and expenses (36.2) (24.5)



Costs linked to reorganisations are due tothe transformation plan launched in 2019and the continuation during the financialyear of the performance improvementplans. In 2020, these costs linked tore-organisation, net of provision writebacks,amounted to €13.6 million; they relate to allof the Group’s activities.

The presentation under the heading “Otheroperating income and expenses” is relevantto the understanding of the Group’sfinancial performance. They are mainly costsdirectly and specifically incurred to enablethe continuation of activity (purchase ofmasks, gels, signs, computer licenses andequipment, spending on the refurbishmentof premises etc.). In addition, still on theOther non-recurring operating expensesbasis of the definition above, “Otheralso include costs related to the Covid-19non-recurring operating income andpandemic. The size of this crisis wasexpenses” include the net costs of resourcesexceptional. It was not linked to thewhich are vacant as a result of the healthCompany’s activity, and was a one-off.crisis (expenses which the Group is stillIn accordance with its definition of “Otherresponsible for, for staff on sick leave ornon-recurring operating income andshort-time work, net of the supportexpenses” noted above, the Group has putmeasures put in place by the variouscertain additional significant costs, whichgovernments, compensation paid towould not have been incurred withoutsub-contractors etc.). Once the health crisisthe health crisis, in this category.is over and as soon as these resources cease



to be vacant, their costs will once again beclassified under profit (loss) from currentoperating activities.

Finally, other non-recurring income andexpenses includes the gains on disposalsand net amounts allocated in 2020, notablyin connection with the events of June 2019in Italy and with other unusual eventselsewhere.

Net finance income (expense)6.in € millions 2020 2019 restated*

OCEANE buybacks 0.9 -

Other financial income 0.1 0.1

Financial income 1.0 0.1

Financial expenses on bonds (9.7) (10.3)

Expenses on non-current liabilities - (0.1)

Interest cost of retirement benefits and other post-employment benefits (0.3) (0.6)

Interest on short-term financing (2.6) (2.4)

Financial expenses on factoring (2.9) (2.5)

Interest expense on lease liabilities (IFRS 16) (1.5) (1.6)

Other financial expenses (0.2) (1.2)

Financial expenses (17.2) (18.7)

Net finance income (expense) (16.2) (18.6)In accordance with IFRS 5 (see 2.2.5), 2019 income and expenses of operations considered discontinued in 2020*




Income taxes7.Income tax expense for the year includescurrent taxes and deferred taxes.

Current tax is (i) the estimated amount oftax due in respect of taxable profit fora given period, as determined using taxrates that have been enacted orsubstantively enacted at the end of thereporting period, (ii) any adjustments to theamount of current tax in previous periods,and (iii) any other tax calculated on a netamount of income and expenses.

Deferred taxes are determined based onthe way in which the Group expects torecover or pay the book value of the assetsand liabilities using the tax rates that havebeen enacted or substantially enacted atthe reporting date.

Deferred taxes are accounted for usingthe liability method for all temporarydifferences between the book valuerecorded in the consolidated balance sheetand the tax bases of assets and liabilities,except for non-tax deductible goodwill.

Deferred tax assets and liabilities are notdiscounted and are offset when they relateto the same tax entity. They are classified inthe balance sheet as non-current assetsand liabilities.

Deferred tax assets are only recognised tothe extent that it is probable that futuretaxable profit will be available againstwhich deductible temporary differences ortax losses and tax credit carry forwards canbe utilised.

7.1. Recognition of current and deferred taxesin € millions Notes 2020 2019 restated*

Current tax (15.2) (19.6)

Movements in tax provisions 16 0.4 1.1

Deferred tax 7.2 (3.7) (4.1)



Effective tax rate


Profit (loss) before tax on continuing operations 67.9 82,6

Income tax on the profit of continuing operations (18.5) (22.6)

Effective tax rate as a percentage of profit (loss) before tax 27.3% 27.3%

Effective income tax rate on the restated profit 20.4% 20.9%





The income tax expense amounted to€13.6 million, plus €4.9 million from tax onvalue added in France (CVAE) and from theIRAP tax (Imposta Regionale sulle AttivitàProduttive) in Italy, for a total of€18.5 million.

Given the profit (loss) before tax ofcontinuing operations of €67.9 million, theeffective tax rate reported reached 27.3%(same as adjusted at end 2019); restated foramortisation of intangible assets and theCVAE/IRAP, the restated effective tax ratewas 20.4% in 2020 (20.9% adjusted in 2019).

Reconciliation between theoretical tax expense and effective tax expense


Profit (loss) before tax on continuing operations 67.9 82.6

Theoretical tax expense at current Belgian rate (25.00% in 2020 and 29.58% in 2019) (17.0) (24.4)



Reconciliation


Unrecognised tax losses arising in the year (1.8) (3.3)

Previously unrecognised tax losses used in the year 1.0 1.9

De-recognition of previously recognised tax losses (2.3) (0.2)

Adjustment to current and deferred tax 0.3 4.1

Effect of taxes other than on income(1) (4.9) (5.6)

Effect of foreign income tax rates and changes in foreign income tax rates 0.7 (2.3)

Tax credits and other 0.7 0.7

Other permanent differences 4.8 6.5

Total differences (1.5) 1.8

Effective income tax expense (18.5) (22.6)In accordance with IFRS 5 (see 2.2.5), 2019 income and expenses of operations considered discontinued in 2020*

are reclassified to “Profit (loss) from discontinued operations” in the 2019 income statement.Taxes other than on income relate to taxes assessed on value added that meet the requirements of IAS 12.(1)

For Econocom, this relates to the tax on value added in France (net of income tax) and to the IRAP tax (ImpostaRegionale sulle Attività Produttive) in Italy.



Deferred tax assets and liabilities7.2.Analysis of deferred tax assets and liabilities

in € millions

31 Dec.2019

Income/expense

for theyear

(incomestatement)

Othercompre-hensiveincome(equity)

Reclassif-ications

Reclassi-fied asassets/

liabilitiesheld for

sale

Changesin scope ofconsolida-

tion andother

31 Dec.2020

Pension obligations 8.2 0.1 0.3 (0.3) - (0.2) 8.1

Temporary differences arising on provisions

4.8 0.4 - (1.1) 3.6 (0.1) 7.6

Other assets and liabilities*

25.6 (0.5) (0.2) (1.7) - (0.2) 23.1

Tax loss carry forwards

15.6 2.2 - 1.3 - (0.6) 18.7

Impact of netting DTA/DTL

(16.7) - - (2.8) - (0.1) (19.7)

Total deferred tax assets

37.4 2.3 0.1 (4.6) 3.6 (1.2) 37.8

Includes the deferred tax asset linked to the Italian additional depreciation.*

Deferred tax on TMF business

(20.4) (5.0) - 0.2 - 0.1 (25.1)

Amortisable intangible assets

(7.6) - - 0.4 - - (7.2)

Other assets and liabilities

1.1 (1.2) - 1.0 - - 0.8

Impact of netting DTA/DTL

16.7 - - 2.9 - - 19.6

Total deferred tax liabilities

(10.2) (6.1) - 4.6 - 0.1 (11.8)

Net deferred tax assets (liabilities)

27.2 (3.8) 0.1 - 3.6 (1.1) 26.0


Recoverable within 12 months, before netting DTA/DTL, by tax jurisdiction (1.9) (4.1)

Recoverable after 12 months, before netting DTA/DTL, by tax jurisdiction 27.9 31.3

Net deferred tax assets (liabilities) 26.0 27.2



Tax loss carry forwards

At 31 December 2020, the Group’s tax losscarry forwards amounted to €170.4 million,versus €127.1 million at 31 December 2019.

The increase in tax loss carry forwardsmainly concerns entities in Italy, Germanyand Benelux.

Unrecognised deferred tax assets on tax losscarry forwards totalled €25.7 million versus€19.9 million at 31 December 2019.

Basic earning per share8.Basic earning per share is calculated bydividing profit for the period attributable toowners of the parent by the weightedaverage number of shares outstandingduring the year, excluding treasury shareson a pro rata basis.

carrying deferred rights to the parentcompany’s share capital, issued either bythe parent company itself or by any one ofits subsidiaries. Dilution is calculatedseparately for each instrument, based onthe conditions prevailing at the end of thereporting period and excluding non-dilutiveDiluted earning per share is calculated byinstruments.taking into account all financial instruments

Basic earning per share attributable to owners of the parent

in € millions, except for per share data and number of shares 2020 2019 restated*

Consolidated profit (loss) for the period attributable to owners of the parent 46.8 44.7

Consolidated profit (loss) for the period attributable to owners of the parent, continuing operations 46.0 56.1

Consolidated profit (loss) for the period attributable to owners of the parent, discontinued operations 0,7 (11.4)

Recurring consolidated profit (loss) attributable to owners of the parent(1) 68.2 73.2

Average number of shares outstanding 216,865,774 227,816,144

Consolidated profit (loss) for the period per share (in €) 0.216 0.196

Earning per share from continuing operations (in €) 0.212 0.246

Earning per share from discontinued operations (in €) 0.003 (0.050)

Recurring earning per share attributable to owners of the parent(1) (in €) 0.314 0.321



Recurring earning for the year attributable to owners of the parent corresponds to profit for the year attributable(1)

to owners of the parent, before the following items:amortisation of intangible assets from acquisitions, net of tax effects;•other non-recurring operating income and expenses, net of tax effects;•other non-recurring financial income and expenses, net of tax effects;•profit from discontinued operations.•



Diluted earning attributable to owners of the parent, per share

in € millions, except for per share data and number of shares 2020 2019 restated*

Diluted earning 50.3 47.9

Diluted earning from continuing operations 49.6 59.4

Diluted earning from discontinued operations 0.7 (11.4)

Average number of shares outstanding 216,865,774 227,816,144

Impact of stock options 198,436 584,776

Impact of free shares 1,219,027 1,301,240

Impact of OCEANE convertible bonds 22,874,865 24,213,075

Diluted average number of shares outstanding 241,158,102 253,915,235

Diluted earning per share (in €) 0.209 0.189

Diluted earning per share from continuing operations (in €) 0.205 0.234

Diluted earning per share from discontinued operations (in €) 0.003 (0.045)

Diluted earning per share attributable to owners of the parent (in €) 0.297 0.301



In accordance with IFRS standards, the stock option expense recognised in the incomestatement was not restated.



Goodwill and impairment 9.testing

Definition of cash-generating units9.1.The growing proportion of internationalcustomers and the pooling of resourcesamong business lines have led the Group toredefine the scope of its cash-generatingunits (CGUs) as representing its two businesssegments: Technology Management &Financing, and Digital Services & Solutions.

that are largely independent of the cashinflows from other assets or groups of assets.Each CGU or group of CGUs to whichgoodwill is allocated represents the lowestlevel within the Group at which goodwillis monitored for internal managementpurposes.

A CGU is defined as the smallest identifiablegroup of assets that generates cash inflows

Goodwill allocation9.2.For the purposes of the impairment tests carried out at 31 December each year, goodwillwas allocated to the following cash generating units.



DigitalServices &Solutions

Total

2020

Goodwill at 31 December 2019 113.8 399.1 512.9

Reclassification to assets held for sale - 4.2 4.2

Acquisitions 2.0 - 2.0

Disposals - (19.5) (19.5)

Foreign currency translation adjustments - - -

Impairment - - -


of which gross amount 115.7 388.1 503.8

of which accumulated impairment - (4.3) (4.3)

In 2020, goodwill from companies disposed of concerned Econocom Digital Securityand Les Abeilles respectively.





DigitalServices &Solutions

Total

2019


Reclassification to assets held for sale (0.8) (85.9) (86.7)

Acquisitions - - -

Disposals - (31.5) (31.5)

Foreign currency translation adjustments - - -

Impairment - - -


of which gross amount 113.8 403.1 516.9

of which accumulated impairment - (4.0) (4.0)

In 2019, goodwill from companies disposed of concerned Jade and Rayonnance.

Impairment tests and impairment of goodwill9.3.

Impairment testing involves determiningwhether the recoverable amount of anasset, CGU or group of CGUs is lower thanits net book value.

The recoverable amount is the higher of fairvalue less the costs of disposal and valuein use.

Value in use is determined based onestimated future cash flows and a terminalvalue, taking into account the time value ofmoney and the risks associated with thebusiness and the specific environment inwhich the CGU or group of CGUs operates.

Cash flow projections are based on thebudgets and on business plans coveringa period of no more than five years. Theterminal value is calculated by discountingnormalised annual cash flows to perpetuity.

Fair value is the amount that could beobtained from the sale of the tested assetsin an arm’s length transaction betweenknowledgeable, willing parties, afterdeducting the estimated costs of disposal.These amounts are calculated based onmarket information.

When the recoverable value of the assets ofa CGU or group of CGUs is lower than itsnet book value, an impairment loss isrecognised.

Impairment losses are recorded first asa reduction of the book value of goodwillallocated to a CGU and then chargedagainst the assets of the CGU, pro rata tothe book value of each of the componentsof the CGU. Impairment losses are recordedunder “Non-recurring operating incomeand expenses” in the income statement.



Impairment losses recognised for property,plant and equipment and intangible assetsother than goodwill may be reversedin subsequent periods if the asset’srecoverable amount becomes greater thanits net book value.

Impairment losses recognised for goodwillmay not be reversed.

When a relevant CGU is disposed of,the resulting goodwill is taken into accountfor the determination of the net proceedsof the disposal.

Results of impairment tests

Based on the impairment tests conducted,goodwill does not need to be impaired.

To reach a risk of impairment, the mainassumptions should be as follows:

for the DSS CGU: a deterioration of•the business plan of more than 16% ora discount rate of more than 12.90%;

for the TMF CGU: a deterioration of•the business plan of more than 13% ora discount rate of more than 13.30%.

Key assumptions

The value in use of the Group’s CGUs issensitive to the following assumptions:

discount rate applied to future cash flows;•

growth rate of cash flows beyond•the forecast period;

business plan (revenue and margin).•

2020 2019

Discountrate

Perpetualgrowth

rateDiscount

ratePerpetual

growthrate

Technology Management & Financing 8.50% 1.00% 8.50% 1.00%

Digital Services & Solutions 8.50% 1.50% 8.50% 1.50%

The growth rate and weighted average costof share capital assumptions were reviewedin light of global market data. The growthrate reflects our best estimate giventhe current economic environment.

The after-tax discount rate used correspondsto the weighted average cost of capital(“WACC”). The perpetuity growth rateapplied by the Group does not exceed thegrowth rate for the industry. Applyinga pre-tax discount rate to pre-tax cash flowswould have resulted in a similar value for theCGUs.



The 4-year business plan was determined preceding the start of the budget period.based on the expected growth of markets These margins also take account of expectedfor the CGU concerned, taking account of efficiency gains as well as events known togrowth levers identified by Management. management and that could impact theMargins are determined based on the profitability of the activity.historical margins observed in the years

Sensitivity to changes in assumptions

The table below shows the sensitivity of enterprise values to the assumptions used:

in € millions

Sensitivity to ratesSensitivity

to cash flowsDiscount rate Perpetual growth rate

+1.0% (1.0%) +0.5% (0.5%) (5%)

Technology Management & Financing (19.5) 34.7 16.5 (14.4) (42.2)

Digital Services & Solutions (86.7) 116.0 40.2 (34.8) (120.4)

The sensitivity of impairment tests toadverse but feasible changes in assump-tions is set out below:

reasonable sensitivity to changes in the•discount rate: a simulated increase of upto one percentage point in the discountrate used would not change the findingsof the Group’s analysis;

value in use of each CGU would stillexceed its book value;

reasonable sensitivity to the long-term•growth rate: in a pessimistic scenariowhere the long-term growth rate isreduced by 0.5 percentage points, the

reasonable sensitivity to the business plan:•a 5% reduction in the revenue forecastcontained in the business plan, with variablecosts adjusted accordingly, would notchange the conclusions of the Group’sanalysis.

Consequently, none of the sensitivity testsreduced the value in use of any of the CGUsto below their book value.



Intangible assets, property, 10.plant and equipment and non-current financial assets

Intangible assets10.1.

Separately acquired intangible assets

Separately acquired intangible assets areinitially measured at cost, whichcorresponds to their acquisition cost or theiracquisition-date fair value for intangibleassets acquired in a business combination.

After initial recognition, they are carried atcost less any accumulated amortisationand impairment losses.

Intangible assets with finite useful lives areamortised over their economic useful life.The useful life of concessions, patents andlicences is estimated at between three andseven years.

Intangible assets with indefinite useful livesare not amortised.

Internally generated intangible assets

The Group carries out IT developmentprojects. Expenses incurred in relation tothese operations can be included in thecost of intangible assets. An internallygenerated intangible asset resulting fromdevelopment (or from the developmentphase of an internal IT project) is onlyrecognised if the Group can demonstrateall of the following:

the technical feasibility of completing the•intangible asset so that it will be availablefor use or sale;

its intention to complete the intangible•asset and use or sell it;

its ability to use or sell the intangible asset;•

how the intangible asset will generate•probable future economic benefits;

the availability of adequate technical,•financial and other resources to completethe development and to use or sellthe intangible asset;

its ability to reliably measure the•expenditure attributable to the intangibleasset during its development. The initialcost of an internally generated intangibleasset is equal to the sum of expenditureincurred from the date on which theintangible asset first meets theabove-mentioned recognition criteria.

If no internally generated intangible assetcan be recognised, development costs arerecognised in profit or loss for the year inwhich they are incurred.

After initial recognition, internallygenerated intangible assets are carried atcost less any accumulated amortisationand impairment losses, in accordance withthe same method as that used forseparately acquired intangible assets.

The useful life of information systems isestimated at between three and seven years.



Intangible assets acquired in businesscombinations

Intangible assets acquired by the Group inbusiness combinations are measured attheir acquisition cost less any accumulatedamortisation and impairment losses. Theyessentially include operating licences andcomputer software. They are depreciated ona straight line basis over their useful lives.

The customer portfolio acquired fromthe ECS group was valued using the MEEMmethod (Multi-period Excess EarningsMethod) at €40 million and is beingamortised over 20 years.

Useful life In years

Amortisable business assets 3 – 5

ECS customer portfolio 20

Franchises, patents, licences 3 – 7

IT systems 3 – 7

The Group has no intangible assets with indefinite useful lives except for the goodwillpresented in note 9.



2020 Intangible assets

in € millions

Customerportfolio

andbusiness

assets

Franchises,patents,licences,

etc.

IT systemsand otherinternally

generatedassets

Other Total

Acquisition cost

Gross value at 31 December 2019 54.1 34.1 70.5 6.4 165.1

Acquisitions 0.7 1.0 7.1 0.2 8.9

Disposals/Retirements - (0.6) (13.0) (0.2) (13.7)

Changes in scope of consolidation 0.2 (1.6) - (0.1) (1.5)

Transfers and other movements - 0.1 - (2.9) (2.7)

Reclassification to assets held for sale - (0.2) (0.1) - (0.3)


Depreciation and impairment

Accumulated depreciation at 31 December 2019 (32.4) (26.5) (43.4) (5.6) (107.8)

Additions (2.1) (2.9) (7.1) (0.3) (12.3)

Disposals/Retirements - 1.5 7.8 0.1 9.4

Changes in scope of consolidation - 1.1 - 0.1 1.2

Transfers and other movements - - - 2.9 2.8

Reclassification to assets held for sale - (1.2) - - (1.2)


Net book value at 31 December 2019 21.7 7.7 27.1 0.8 57.2




Customer portfolios, brands and businessassets are intangible assets which arerecognised in connection with businesscombinations, amortised over the usefullives shown above.

Franchises, patents, licences, etc. consistmainly of licences acquired and amortisedover their useful lives.

IT systems are mainly the result ofdevelopments made by the Group and areamortised over the periods set out above.

2019 intangible assets

in € millions

Customerportfolio

andbusiness

assets

Franchises,patents,licences,

etc.

IT systemsand otherinternally

generatedassets

Other Total

Acquisition cost


Acquisitions - 1.9 8.8 0.1 10.8

Disposals/Retirements - (3.5) (3.2) (0.8) (7.5)

Changes in scope of consolidation - (0.1) (0.3) - (0.3)

Transfers and other movements - 1.3 (1.4) 0.2 0.1

Reclassification to assets held for sale (0.1) (4.3) (34.2) (0.2) (38.8)




Additions (2.0) (3.4) (12.8) (0.3) (18.5)

Disposals/Retirements - 1.7 2.3 - 4.0

Changes in scope of consolidation - 0.1 0.1 - 0.1

Transfers and other movements - 0.4 (0.4) - -

Reclassification to assets held for sale - 2.2 21.4 0.2 23.8






Property, plant and equipment10.2.

Property, plant and equipment ownedoutright

Property, plant and equipment are carriedat acquisition cost less any accumulateddepreciation and impairment losses.

Depreciation is recognised on a straight-linebasis over the estimated useful life of theassets taking into account any residual value.

Useful life In years

Land Indefinite

Buildings 20 – 50

Fixtures 5 – 10

IT equipment 3 – 7

Vehicles 4 – 7

Furniture 5 – 10

Land is not depreciated.

When an item of property, plant andequipment comprises components withdifferent useful lives, such components arerecognised and depreciated separately.

Gains or losses on the sale of an item ofproperty, plant and equipment aredetermined as the difference between theproceeds from the sale and the net bookvalue of the asset sold. They are included ineither “Other operating income andexpenses” or “Revenue from continuingoperations” if the sale took place inthe ordinary course of the Group’s business.

No borrowing costs were included in thecost of any of the Group’s property, plantand equipment in the absence of any assetsrequiring a substantial period of time beforethey are ready for their intended use or sale.

Leases

Leases, as defined by IFRS 16, are entered inthe statement of the consolidated financialposition as an asset representing the rightof use of the leased asset during the termof the contract.

On the date that the lease takes effect,the right of use is valued at its cost, including:

the initial amount of the liability, with•the advance payments made to the lessor,net of the benefits received from the lessor;

initial direct costs incurred by the lessee•for the conclusion of the contract; and

the costs of dismantling or restoring•the leased asset according to the terms ofthe contract.

The right of use is depreciated overthe useful life of the assets, which leads toa depreciation charge being entered onthe income statement.

On the date that the lease takes effect,the rental liability is entered for an amountequal to the discounted value of rents overthe duration of the contract, as defined bythe Econocom group. The valuation ofthe rental liability includes:

fixed rents (including rentals considered•to be fixed in substance);

variable rents based on a rate or index•using the rate or index on the datethe contract comes into effect;

any residual value guarantees awarded to•the lessor;

the exercise price of a purchase option•if the exercise of the option is reasonablycertain; and

penalties for cancellation or non-renewal•of the contract.



The rental liability is recognised at thedepreciated cost, using the effectiveinterest rate method, and leads to therecognition, on the income statement, ofan interest charge for the period andvariable payments (not taken into accountin the initial valuation).

The liability may be revalued to offsetthe right of use in the following cases:

revision of the term of the contract;•

modification linked to the valuation of•the reasonably certain nature (or not) ofthe exercise of a purchase option;

change in the amount of payment•expected under the residual valueguarantee awarded to the lessor;

adjustment of rates or indices on which•variable rents are based, when the latterare modified.

Leases mainly relate to property assetsand the vehicle fleet. The accountingexemptions set out in the standard for theshort-term contracts (term below or equal to12 months), and leases on low value assets,have been applied.

the firm period of the commitment, takinginto account optional periods that arereasonably certain to be exercised, exceptfor vehicles for which Econocom will retainthe portfolio approach, throughsimplification, given that the contracts aresomewhat similar irrespective of thecountry and that this simplification doesnot give rise to material differences withregard to the recommended method setforth in IFRS 16.

The rental term is determined ona lease-by-lease basis and corresponds to

For vehicles, the assumptions andmeasurement methods of this “portfolio”approach are as follows: a measurement isdone at each period end, making it possibleto update the lease liability and right of use;amortisations and financial expenses arethen determined on a flat-rate basis basedon an average term of use of the vehicles(amortisation) and on the rental paymentsactually paid for the difference.

The Econocom group applied IFRS 16according to the simplified retrospectiveapproach, which means the impacts arerecorded in the opening balance sheet at1 January 2019.

The discount rate applied on the date oftransition is based on the Group’sincremental borrowing rate.



2020 property, plant and equipment

in € millionsLand

andbuildings

Fixtures,fittingsand ITequip-

ment

Furnitureand

vehicles

Otherproperty,

plantand

equip-ment

Property,plant and

equipmentheld under

financeleases

Rightsof use Total

Acquisition cost

Gross value at 31 December 2019 25.0 61.2 11.9 15.9 1.1 74.3 189.3

Acquisitions 0.6 2.7 0.3 4.6 - 34.5 42.8

Disposals/Retirements (1.7) (8.0) (1.4) (0.7) - - (11.8)

Changes in scope of consolidation 3.1 (2.5) (0.2) 0.3 - (3.2) (2.5)

Transfers and other movements 4.3 0.2 4.7 (0.5) (0.1) 12.6 21.2

Reclassification to assets held for sale (0.2) (0.6) - - - (0.2) (1.0)

Gross value at 31 Dec. 2020 31.2 53.1 15.3 19.6 1.0 118.0 238.1


Accumulated depreciation at 31 December 2019

(12.2) (46.5) (9.5) (11.3) (1.0) (16.3) (96.8)

Additions (2.5) (5.7) (1.0) (0.7) - (21.9) (31.8)

Disposals/Retirements 1.2 6.7 1.1 0.3 - - 9.2

Changes in scope of consolidation (1.3) 2.3 0.2 (0.1) - 2.3 3.3

Reversals of impairment - - - - - - -

Transfers and other movements (3.4) 0.2 (1.9) - 0.1 (27.4) (32.5)

Reclassification to assets held for sale 0.1 - - - - 0.1 0.2


(18.1) (43.1) (11.1) (11.8) (0.9) (63.4) (148.3)

Net book value at 31 December 2019 12.8 14.7 2.4 4.6 0.1 57.9 92.5

Net book value at 31 December 2020 13.0 10.0 4.3 7.8 - 54.7 89.9

Other property, plant and equipment relate to assets in progress.



2019 Property, plant and equipment

in € millionsLand

andbuildings

Fixtures,fittingsand ITequip-

ment

Furnitureand

vehicles

Otherproperty,

plantand

equip-ment

Property,plant and

equipmentheld under

financeleases

Rightsof use Total

Acquisition cost

Gross value at 31 December 2018 19.9 84.8 18.0 12.7 4.2 - 139.5

Application of IFRS 16 - - - - - 45.9 45.9

Acquisitions 1.4 7.1 0.5 2.2 0.1 19.9 31.2

Disposals/Retirements (3.4) (3.6) (0.5) (0.4) - - (7.9)

Transfers and other movements 7.2 (10.4) (5.5) 1.6 (3.2) 8.5 (1.7)

Reclassification to assets held for sale - (16.7) (0.7) (0.2) - - (17.6)

Gross value at 31 December 2019 25.0 61.2 11.9 15.9 1.1 74.3 189.3



(9.3) (59.5) (11.3) (6.7) (4.2) - (90.9)

Additions (3.6) (7.3) (0.9) (1.1) (0.1) (25.4) (38.3)

Disposals/Retirements 3.0 3.1 0.5 0.4 - - 6.9

Changes in scope of consolidation - - 1.6 - - (1.6) -

Reversals of impairment - - - - - - -

Transfers and other movements (2.3) 6.8 0.2 (3.9) 3.2 10.6 14.6

Reclassification to assets held for sale - 10.4 0.4 0.1 - - 10.9


(12.2) (46.5) (9.5) (11.3) (1.0) (16.3) (96.8)

Net book value at 31 Dec. 2018 10.6 25.2 6.8 6.0 - - 48.6

Net book value at 31 Dec. 2019 12.8 14.7 2.4 4.6 0.1 57.9 92.5



Non-current financial assets10.3.

Investments in non-consolidated companies are recorded at fair value. Changes in fairvalue are recognised under Income.

in € millions

Investmentsin non-

consolidatedcompanies(1)

Investmentsin associates

and jointventures(2)

Othernon-current

financialassets(3)

Total

Balance at 31 December 2018 2.6 0.4 24.7 27.7

Increases 2.4 - 3.0 5.5

Repayments/Disposals (0.2) - - (0.2)

Other cash changes(4) - - 1.4 1.4

Changes in scope of consolidation - - - -

Transfers and other movements 0.4 - (0.5) (0.1)

Share of profit (loss) of associates and joint ventures - - (1.3) (1.3)


Increases - - 2.7 2.7

Repayments/Disposals (0.3) - (1.1) (1.4)

Other cash changes(4) - - (3.4) (3.4)

Changes in scope of consolidation - - (0.4) (0.4)

Transfers and other movements - - - -

Share of profit (loss) of associates and joint ventures - 0.1 - 0.1


This relates to the Group’s interest in non-controlled entities for €4.9 million, primarily including shares in Hélios(1)

(€2.4million), Histovery (€0.8 million), Kartable (€0.5 million), Magic Makers (€0.9 million) and Neuradom(€0.2 million).At 31 December 2020, Econocom had only one equity-accounted associate (JTRS).(2)

Other non-current financial assets chiefly correspond to guarantees and deposits.(3)

Other cash variations correspond to net disbursements for factoring guarantees, classified as changes in working(4)

capital requirements in the consolidated statement of cash flow.



Maturity of non-current financial assets

2020 in € millions 1 to 5 years Beyond5 years Indefinite Total

Investments in non-consolidated companies - - 4.9 4.9

Investments in associates and joint ventures - - 0.5 0.5

Guarantees given to factors 9.7 - - 9.7

Other investments - - 8.5 8.5

Other guarantees and deposits 6.2 0.7 6.9

Total 15.9 0.7 13.9 30.5

2019 in € millions 1 to 5 years Beyond5 years Indefinite Total

Investments in non-consolidated companies - - 5.3 5.3

Investments in associates and joint ventures - - 0.5 0.5

Guarantees given to factors 13.0 - - 13.0

Other investments - - 8.5 8.5

Other guarantees and deposits 3.9 1.8 - 5.7

Total 16.9 1.8 14.2 32.9



Other long-term receivables10.4.in € millions 31 Dec. 2020 31 Dec. 2019

Government grants 4.8 4.6

Other long-term receivables 19.7 9.0

Other receivables 24.5 13.6

“Government grants” relate to amountsreceivable under government grants(including at 31 December 2020: €3.7 millionin respect of CIR and €0.5 million in respectof CICE). Other receivables relates to loansgranted to employees or associates.

The book values of other nonfinancial assetssuch as other long-term receivables, arereviewed for impairment at the end of eachreporting date. If the book value of theseassets exceeds their estimated recoverableamount, an impairment loss is recognisedwithin profit (loss) from operating activities.

By maturity


1 to 5 years 12.0 13.2

Beyond 5 years 12.5 0.5

Total 24.5 13.6



Residual interest in leased 11.assets and gross liability commitments for purchases of leased assets

Residual interest in leased assets11.1.

The Group’s residual interest in leasedassets sold to refinancing institutionscorresponds to an estimated market value.Management issues an estimate thatrequires critical judgement.

This residual interest is calculated asfollows:

The residual interest therefore represents along-term asset which is discounted usingthe same method as for the related lease.This method does not apply tononstandard cases, which are rare;

for all fixed-term contracts, the estimated•market value is calculated using anaccelerated diminishing balance method,based on the amortisation of the originalpurchase cost of each item of equipment.

for renewable asset management•contracts, the accelerated diminishingbalance method of depreciation is notapplicable. The estimated market value forthese contracts is calculated by usinga fixed percentage of the original purchasecost of the equipment.


Residual interest in leased assets non-current portion (between 1 and 5 years) 134.3 131.9

Residual interest in leased assets current portion (less than 1 year) 40.9 33.0

Total 175.2 165.0

The Group regularly revises estimates of itsresidual interest in leased assets usinga statistical method based on its experienceof second-hand markets.

For more recent assets, for which there isinadequate market data to establish anaccurate valuation, the Group usesa prudent approach which may be adjustedwhen it has access to adequate historicalinformation.

€5.9 billion (purchase price of the assets oninception of the lease). The Group’s residualinterest in leased assets therefore stood at3.0% of the purchase price of the assets in itsportfolio (versus 2.7% at 31 December 2019).

The residual interest recognised at31 December 2020 was €175.2 million fora portfolio of leased assets representing

The impact of discounting on the totalamount of the residual interest was€10.5 million at 31 December 2020, thepre-discounted values were €185.7 million at31 December 2020.

Residual interest in leased assets concerns ITassets and industrial assets amounting to€150.7 million and €24.5 million, respectively.



Gross liability commitments for purchases 11.2.of leased assets

The Group repurchases leased equipment long-term liabilities which are discountedfrom refinancing institutions at the end of using the same method as for the relatedthe lease term. These purchase obligations leases. They are classified as financialare classified within “gross commitments liabilities but are not included in net debton residual financial value” and recognised (see 14.3).in balance sheet. They are generally


Total gross liability commitments for purchases of leased assets – non-current portion (between 1 and 5 years) 75.9 81.1

Total gross liability commitments for purchases of leased assets – current portion (less than 1 year) 27.8 20.4

Total 103.7 101.5

The present value of items recorded in impact of discounting was €7.3 million in“Gross liability for purchases of leased 2020. The pre-discounted value wasassets” (current and non-current portions) €111.0 million at 31 December 2020.stands at €103.7 million. The cumulative



Operating assets and liabilities12.Inventories12.1.

For the Group, inventories are:

assets held for sale in the ordinary course•of business and measured at the lower ofcost (weighted average cost) and netrealisable value; or

materials or supplies to be used in•the rendering of services, measured at costand impaired in line with the useful life ofthe infrastructure to which they relate.

in € millions31 Dec. 2020 31 Dec. 2019

Gross Impairment Net Gross Impairment Net

Equipment in the process of being refinanced

21.7 (2.4) 19.3 21.3 (2.5) 18.8

Other inventories 64.2 (6.8) 57.4 47.9 (6.6) 41.3IT equipment and telecoms 56.3 (3.3) 52.9 35.0 (3.0) 32.0

Spare parts 8.0 (3.5) 4.5 12.9 (3.6) 9.3

Total 85.9 (9.2) 76.7 69.2 (9.1) 60.1

Gross value

in € millions 31 Dec.2019

Changesin inven-

tories

Changesin scope

of consoli-dation

Reclassifi-cationunderassets

heldfor sale

Otherchanges

31 Dec.2020


21.3 0.4 - - - 21.7

Other inventories 47.9 16.6 - 0.2 (0.4) 64.2IT equipment and telecoms 35.0 (2.1) - - 23.4 56.3

Spare parts 12.9 18.6 - 0.2 (23.8) 8.0

Total 69.2 16.9 - 0.2 (0.5) 85.9



Impairment

in € millions 31 Dec.2019 Additions Reversals

Reclassifi-cation

to assetsheld

for sale

Otherchanges

31 Dec.2020


(2.5) - 0.1 - - 2.4

Other inventories (6.6) (1.4) 1.2 0.1 - (6.8)

IT equipment and telecoms (3.0) (0.4) 1.0 - (1.0) (3.3)

Spare parts (3.6) (1.0) 0.2 (0.1) 1.0 (3.5)

Total (9.1) (1.4) 1.4 (0.1) - (9.2)

The Covid-19 crisis did not require a further impairment of these inventories.

Trade and other receivables and other current 12.2.assets

in € millions31 Dec. 2020 31 Dec. 2019

Gross Impairment Net Gross Impairment Net

Trade receivables 884.0 (70.8) 813.2 1,064.3 (63.9) 1,000.4

Other receivables 86.6 (5.6) 81.0 103.4 (10.1) 93.3

Trade and other receivables 970.6 (76.4) 894.1 1,167.7 (74.0) 1,093,7

Costs of performance and obtention of contract recognised as an asset

17.4 - 17.4 30.6 - 30.6

Other current assets 30.4 - 30.4 27.8 - 27.8



Trade receivables items are broken down below by business, net of impairment.

in € millions

31 Dec. 2020 31 Dec. 2019

Recei-vables

invoiced,net of

impair-ment

Revenueaccruals

Out-standing

rentalsTotal

Recei-vables

invoiced,net of

impair-ment

Revenueaccruals

Out-standing

rentalsTotal


254.1 2.1 356.0 612.2 354.4 6.8 389.6 750.8


132.6 68.3 - 200.9 155.8 93.8 - 249.6

Total 386.7 70.4 356.0 813.2 510.2 100.6 389.6 1,000.4

At end-2020, the €356.0 million in portion of the €356.0 million includes notoutstanding rentals includes a portion that is only self-funded outstanding rentals but alsoself-funded or refinanced with recourse for a portion that will be refinanced (whena gross amount of €185.9 million, of which a refinancing agreement exists)€143.9 million is non-current. The current

Impairment of receivables

Initially, receivables are impaired taking intoaccount expected credit losses, if material:

short-term receivables (mainly for the DSS•business) are impaired on the basis of anaverage observed risk of default. Thisapproach is based on the default ratesobserved individually by each of the Group’ssubsidiaries;

long-term receivables (mainly for the TMF•business) are impaired by taking intoaccount the customer’s risk profile, the valueof the underlying assets and a probability ofoccurrence.

Subsequently, if there is serious doubt as toits recoverability, a loss allowance isrecognised for the amount that is notrecoverable.

Following the Covid-19 pandemic,the methods for determining provisions forimpairment in accordance with IFRS 9 havenot been modified, but risk analyses havebeen carried out on each case that sorequired.

in € millions 31 Dec.2019 Additions Reversals Other

changes

Reclassifi-cationunder

assets heldfor sale

31 Dec.2020

Impairment of doubtful receivables

(63.9) (23.7) 18.3 (0.9) (0.6) (70.8)



Other receivables

Other receivables represent amounts receivable from the French State and miscellaneousamounts due from third parties (suppliers, factor, etc.):


Tax receivables (excl. income tax) 18.3 38.9

Factoring receivables 35.8 36.1

Government grants receivable 0.1 4.1

Due from suppliers 17.9 9.4

Other 8.9 4.7

Other receivables 81.0 93.3

Other current assets

Other current assets correspond mainly to prepaid expenses of €30.4 million comparedto €27.8 million at 31 December 2019.

Trade and other payables12.3.in € millions 31 Dec. 2020 31 Dec. 2019

Trade payables 775.2 756.9

Other payables 216.8 223.7

Tax and social liabilities 204.2 212.5

Dividends payable 1.3 1.2

Customer prepayments and other payables 11.4 10.0

Trade and other payables 992.1 980.6



Other current liabilities12.4.Other current liabilities break down as follows:


Contract liabilities 62.9 68.7Contingent acquisition-related liabilities – current portion 2.4 13.4 28.0

Deferred income 122.0 134.3

Other liabilities 5.5 7.4

Other current liabilities 140.9 169.7

Other non-current liabilities12.5.in € millions Notes 31 Dec. 2020 31 Dec. 2019

Acquisition-related liabilities – non-current portion 2.4 48.5 38.0

Other non-current liabilities(1) 6.6 4.4

Other non-current liabilities 55.1 42.4Including €2.3 million in miscellaneous cash deposits received at 31 December 2020 (€2.3 million at(1)

31 December 2019).

Financial instruments13.Financial instruments comprise:

financial assets, which include non-current•financial assets (except investments inequity-accounted companies), otherlong-term receivables, trade and otherreceivables, other current assets, and cashand cash equivalents;

financial liabilities, which include current•and non-current financial liabilities andbank overdrafts, operating payables andother current and non-current liabilities;and

derivative instruments.•



Classification and measurement 13.1.of financial instruments

Financial instruments (assets and liabilities)are recorded in the consolidated statementof financial position at their fair value oninitial recognition, plus in the case ofan asset that is not subsequentlyrecognised at fair value through profit orloss, transaction costs directly attributableto the acquisition of that asset.

They are subsequently measured at eitherfair value (through profit or loss, or throughother comprehensive income) or amortisedcost, depending on their nature.

The classification of a financial asset in eachof these categories depends on themanagement model applied to it by theCompany and the characteristics of itscontractual cash flows.

In practice, trade receivables are measuredaccording to the amortised cost method,even though they may be subject toan assignment of receivables, for example,in the context of factoring.

The Group applies the concept of fair valueset out in IFRS 13 “Fair Value Measurement”,whereby fair value is “the price that wouldbe received to sell an asset or paid totransfer a liability in an orderly transactionbetween market participants at themeasurement date (exit price)”.

the effective interest rate and less cashoutflows (coupons, principal repaymentsand, where applicable, redemptionpremiums). Accrued interest (income andexpenses) is not recorded at the nominalinterest rate of the financial instrument, butbased on the instrument’s effective interestrate. Financial assets at amortised cost aretested for impairment whenever there areindications that they may be impaired.

Amortised cost represents the fair value oninitial recognition (net of transaction costs),plus interest calculated based on

Any loss of value is recognised in the incomestatement.

The initial recognition of financialinstruments in the consolidated statementof financial position along with theirsubsequent measurement as describedabove apply the following interest ratedefinitions:

the coupon rate (coupon), which is•the nominal interest rate on the instrument;

the effective interest rate;•

the market interest rate, which is the•effective interest rate as recalculated at themeasurement date in line with ordinarymarket inputs.

Financial instruments carried in both assetsand liabilities are derecognised wheneverthe related risks and rewards are sold andthe Group ceases to have control overthose financial instruments (see note 21).



Derivative financial instruments13.2.

The Group uses the financial markets onlyfor hedging exposure related to its businessactivities and not for speculative purposes.

Given the low exchange rate risk, forwardpurchases and sales of foreign currency arerecognised as instruments measured at fairvalue through profit or loss.

This financial instrument is designated asa cash flow hedge and is eligible for hedgeaccounting under IFRS 9.

The Group uses an interest rate swap tohedge its interest rate risk on a floating-ratetranche of its new Schuldschein notes.

Gains or losses on the hedging instrumentare recognised directly in othercomprehensive income until the hedgeditem is itself recognised in the incomestatement. Hedging reserves are thentransferred to the income statement.

31 Dec. 2019Changethrough

profit or loss

Othercomprehensive

income(expense)(1)

31 Dec. 2020

Derivative instruments (positive fair value) - -

Derivative instruments (negative fair value) 0.9 - 0.2 1.1

Total (0.2)

Classification of financial instruments 13.3.and fair value hierarchy

IFRS 7 “Financial Instruments: Disclosures”sets out a fair value hierarchy, as follows:

level 1: fair value based on quoted prices in•active markets;

level 2: fair value measured using•observable market inputs (other than thequoted market prices included in Level 1);

level 3: fair value measured using•unobservable market inputs.

market price is available, fair value ismeasured using other valuation methodssuch as discounted future cash flows.

The fair value of financial instruments isdetermined using market prices resultingfrom trades on a national stock exchangeor over-the-counter markets. When no

In any event, estimates of market value arebased on certain interpretations requiredwhen measuring financial assets.

As such, these estimates do not necessarilyreflect the amounts that the Group wouldactually receive or pay if the instruments weretraded on the market. The use of differentestimates, methods and assumptions mayhave a material impact on estimated fairvalues.



In view of their short-term nature, the bookvalue of trade and other receivables, andcash and cash equivalents approximatestheir fair value.

Derivative financial instruments aremeasured using Level 2 fair values.

Cash equivalents are recognised at fairvalue (Level 1).

FINANCIAL ASSETS13.3.1.

The Group’s financial assets at 31 December 2020 can be analysed as follows:

in € millions Book value Level in the fair value hierarchy

Balance sheet headings Notes Amortised

cost

Fair valuerecognised

throughother

compre-hensiveincome

Fair valuethrough

profitor loss

Level 1 Level 2 Level 3

Non-current financial assets 10.3 25.1 - 5.4 - 30.5 -

Long-term receivables 10.4 24.5 - - - 24.5 -

Trade receivables 12.2 813.2 - - - 813.2 -

Other receivables 12.2 81.0 - - - 81.0 -

Cash and cash equivalents 14.1 - - 649.3 649.3 - -

Financial assets 943.8 - 654.7 649.3 949.2 -

FINANCIAL LIABILITIES AND OTHER LIABILITIES13.3.2.

In view of their short-term nature, the bookvalue of trade and other payablesapproximates fair value.

The market value of derivative instrumentsis measured based on valuations providedby bank counterparties or models widelyused in financial markets, on the basis ofdata available at the reporting date.



in € millions Book value Level in the fair value hierarchy

Balance sheet headings Notes Amortised

cost

Fair valuethroughprofit or

loss

Fair valuethrough

equityLevel 1 Level 2 Level 3

Gross debt 14.2 628.3 0.8 - 0.8 628.3 -

Non convertible bonds 206.3 - - - 206.3 -

Convertible bonds 182.2 - - - 182.2 -

Bank debt, commercial paper and other

156.0 0.8 - 0.8 156.0 -

Liabilities relating to contracts refinanced with recourse

83.7 - - - 83.7 -

Lease liabilities 57.5 - - - 57.5 -

Non-current non-interest bearing liabilities

12.5 6.6 3.5 45.0 - 6.6 48.5

Gross liability for purchases of leased assets

11.2 103.7 - - - 103.7 -

Trade payables 12.3 775.2 - - - 775.2 -

Other payables (excluding derivative instruments)

12.3 215.7 215.7

Other current (financial) liabilities 12.4 5.5 1.3 12.1 5.5 13.4

Financial liabilities 1,792.5 5.6 57.1 0.8 1,792.5 61.9

Non-current non-interest-bearing liabilitiesand other current liabilities estimated at fairvalue through profit or loss (Level 3)correspond to contingent considerationliabilities arising on acquisitions ofcompanies for €4.8 million (see note 2.4).

non-controlling interests for €61.9 million(see note 2.4).

Non-current non-interest-bearing liabilitiesand other current liabilities estimated at fairvalue through equity (Level 3) correspond toliabilities under put and call options on

Contingent consideration liabilities aremeasured based on the estimated futureperformance of the entities concerned (e.g.EBIT multiples, expected future cash flows,etc.).

Based on the information held by the Group,the fair value of financial liabilitiesapproximates their book value.



Cash, gross debt, net debt14.Cash and cash equivalents14.1.

These include cash on hand and demanddeposits, other highly-liquid investmentswith maturities of three months or less, andbank overdrafts. Bank overdrafts areincluded in “Financial liabilities” withincurrent liabilities in the balance sheet.

Changes in fair value are recognisedthrough profit or loss under “Financialincome – operating activities”.

Cash as presented in the statement of cash cash equivalents can be broken down asflows includes cash and cash equivalents, follows at end-2020 and end-2019:presented net of bank overdrafts. Cash and


Cash in hand 633.5 588.3

Demand deposits - 0.1

Sight deposits 633.5 588.2

Cash equivalents 15.8 5.5

Term accounts 10.6 2.1

Marketable securities 5.2 3.4


Bank overdrafts (0.8) (18.2)

Cash and cash equivalents net of bank overdrafts 648.5 575.6

The cash and cash equivalent balances but €56.2 million at 31 December 2020 versusnot wholly owned by the Group totalled partners in companies fully consolidatedcorresponding to the share of Econocom’s €85.5 million at 31 December 2019.



Gross debt14.2.in € millions 31 Dec. 2020 31 Dec. 2019

Convertible bond (OCEANE) 181.2 188.2

Non-convertible bond debt (Euro PP) 54.7 54.7

Non-convertible bond debt (Schuldschein) 12.7 147.1

Bonds loans – non-current 248.7 390.0

Other debt 25.6 2.8

Finance lease liabilities(1) 50.3 58.8

Financial liabilities – non-current 75.9 61.6

Non-current interest-bearing liabilities 324.6 451.5

Convertible bond debt (OCEANE) – current portion 1.0 1.0

Non-convertible bond debt (Euro PP) – current portion 1.6 47.6

Non-convertible bond debt (Schuldschein bond) – current portion 137.3 2.8

Bonds loans – current portion 139.9 51.5

Commercial paper and other bank borrowings 119.0 289.2

Factoring payables(2) 7.5 4.0

Other current borrowings and debt with recourse 11.4 -

Finance lease liabilities(1) 25.9 31.6

Financial liabilities – current portion(3) 163.8 324.8

Current interest-bearing liabilities 303.7 376.3

Gross debt total(3) 628.3 827.8Primarily liabilities relating to contracts refinanced with recourse. This debt is backed by customers’ rental(1)

payments in which the Group retains a portion of the credit risk. The Group has therefore added back a similaramount of unassigned receivables in accordance with IAS 32 – Financial Instruments: Presentation.Factoring liabilities consist of residual risks arising from factoring agreements.(2)

Excluding bank overdrafts.(3)



Convertible bonds

In March 2018, Econocom group issuedOCEANE bonds in the amount of€200 million (€198.4 million after allocationof issue costs). Their main characteristicsare detailed below:

maturity: five years;•

annual coupon: 0.5%;•

issue price: €8.26.•

If these bonds are not converted, they willbe redeemed in cash on 6 March 2023 ata price of €8.26.

OCEANE bonds are compound instrumentswithin the meaning of IAS 32. Thecharacteristics of the OCEANE bonds providefor the possibility of conversion into a fixednumber of shares for a fixed amount of cash.An equity component has been calculatedby subtracting the debt component of theOCEANE, measured at the rate of the debtwithout a conversion option, in application ofsections 29–30 of IAS 32, which define the“equity” component as residual. On initialrecognition, and net of issue costs, the equitycomponent amounted to €16.7 million andthe debt component to €181.7 million.

In November 2020, the Econocom groupbought back convertible bonds (OCEANEs)for a total amount of €9.7 million. As a result,the “debt” component was derecognisedagainst the cash paid for repayment, thedifference being recognised in the statementof financial position for an amount of€0.9 million. The “Equity” component initiallyrecognised and representing the premiumsold attaching to the conversion option, isvested by the issuer and remains recognisedin equity.

Non-convertible bonds

Euro PP

In May 2015, Econocom group SE took partin a €101 million bond issue (Euro PP) witheight institutional investors. The issue wasin two tranches of €45.5 and €55.5 million,with respective maturities of five and sevenyears. They pay fixed-rate interest (2.364%in five years and 2.804% in seven years) andare redeemable upon maturity (in fine).

In June 2020, the Group repaid the firstinstalment.

Schuldschein

In late November 2016, Econocom group SEissued €150 million in Schuldschein noteson the Frankfurt market.

These notes, redeemable at maturity,comprise three tranches: €13 million atseven years, and €22 million and €115 millionat five years. Notes belonging to the first twotranches pay fixed-rate interest (2.088% atseven years and 1.611% at five years). Theinterest on the third tranche includes afixed-rate portion of 1.5% and a floating-rateportion indexed to six-month EURIBOR. Aninterest rate swap was put in place inrespect of these notes to protect the Groupagainst the interest rate risk on thefloating-rate portion. The swap hedges therisk of a rise in interest rates; however,it provides that if EURIBOR is negative,Econocom bears the interest rate risk.



Commercial paper

In October 2015, Econocom diversified its support its growth. This programmefinancing and set up a commercial paper complements the Group’s bank financingprogramme (Econocom group Société and gives it access to short-term liquidityEuropéenne Billets de Trésorerie). Through under favourable and transparentthis programme, capped at €200 million, conditions, since it borrows from thethe Group optimises and diversifies in the negotiable debt securities market.short term the financial resources to

Analysis of non-current interest-bearing liabilities by maturity

2020 in € millions Total 1 to 5 years Beyond5 years

Lease payables relating to contracts refinanced with recourse (non-current portion) 50.3 50.3 -

Bonds loans 248.7 248.7 -

Other debt 25.6 25.6 -

Total 324.6 324.6

2019 in € millions Total 1 to 5 years Beyond5 years

Lease payables relating to contracts refinanced with recourse (non-current portion) 58.8 58.8 -

Bonds loans 390.0 390.0 -

Other debt 2.8 2.8 -

Total 451.5 451.5 -

Net financial debt14.3.

The concept of net debt as used by theGroup represents gross debt (see note 14.2)less gross cash (see note 14.1 – cash and cashequivalents). Gross debt includes allinterest-bearing debt and debt incurredthrough the receipt of financial instruments.

It does not include:

the gross purchase commitments of leased•assets (liability) and residual interests inleased assets;

the derivative instrument hedging•Schuldschein notes; and

lease liabilities.•



Net debt 2020


Cashflows

Non-cash flows

31 Dec.2020

Amortisedcost of

the loan

Changesin scope

ofconsoli-

dation

Conversion Other

Cash and cash equivalents* 593.8 31.3 - 25.6 (2.4) 0.9 649.3

Bank overdrafts** (18.2) 18.1 - - - (0.7) (0.8)

Cash and cash equivalents net of bank overdrafts(1)

575.6 49.5 - 25.6 (2.4) 0.2 648.5

Commercial paper and bank debt (292.0) 130.3 - 3.4 - 2.4 (155.9)

Net cash at bank 283.6 179.8 - 29.0 (2.4) 2.7 492.7Convertible bond (OCEANE) (189.2) 11.6 (4.7) - - - (182.2)

Bond debt (Euro PP) (102.3) 48.1 (2.1) - - - (56.3)

Bond debt (Schuldschein) (149.9) 2.8 (2.9) - - - (150.0)

Leases refinanced with recourse (90.3) 14.0 - - 0.1 - (76.2)

Factoring liabilities with recourse (4.0) (3.5) - - - - (7.5)

Other non-current liabilities - (0.1) - - - - (0.1)

Sub-total (535.8) 72.9 (9.7) - 0.1 - (472.5)

(Net debt)/Cash surplus (252.2) 252.6 (9.7) 29.0 (2.2) 2.7 20.2

Positive gross cash and cash equivalents.*

Including current bank overdrafts totalling €0.8 million at 31 December 2020 and €18.2 million at 31 December 2019.**

The €72.9 million change in net cash and cash equivalents as shown in the statement of cash flows is equal(1)

to the sum of monetary outflows (€49.5 million), cash acquired (€28.6 million) less translation adjustments(-€2.4 million) and translation losses (€2.8 million).

This cash surplus corresponds to the amount after financing of TMF self-fundedcontracts in the amount of €185.9 million.



Net debt 2019


Cashflows

Non-cash flows

31 Dec.2019

Amortisedcost of

the loanConversion

Reclass.Reclassifi-

cation toliabilities

heldfor sale

Other

Cash and cash equivalents* 608.4 (4.9) - 0.8 (10.5) - 593.8

Bank overdrafts** (3.6) (14.7) - - - - (18.2)

Cash and cash equivalents net of bank overdrafts(1)

604.8 (19.5) - 0.8 (10.5) - 575.6

Commercial paper and bank debt (287.1) (5.0) - - 0.1 - (292.0)

Net cash at bank 317.7 (24.6) - 0.8 (10.4) - 283.6Convertible bond (OCEANE) (185.5) 1.0 (4.7) - - - (189.2)

Bond debt (Euro PP) (102.2) 2.6 (2.7) - - - (102.3)

Bond debt (Schuldschein) (149.8) 2.8 (2.9) - - - (149.9)

Leases refinanced with recourse (97.2) 6.9 - - - - (90.3)

Factoring liabilities with recourse (28.5) 20.3 - - 4.3 - (4.0)

Other non-current liabilities (6.1) - - - - 6.1 -

Sub-total (569.4) 33.6 (10.3) - 4.3 6.1 (535.8)

Net financial debt (251.7) 9.0 (10.3) 0.8 (6.1) 6.1 (252.2)Positive gross cash and cash equivalents.*

Including current bank overdrafts totalling €18.2 million at 31 December 2019 and €3.6 million at 31 December 2018.**

The -€29.3 million change in net cash and cash equivalents as shown in the statement of cash flows is equal(1)

to the sum of monetary outflows (-€19.5 million), translation adjustments (€0.8 million), and reclassification underliabilities held for sale (-€10.5 million).



Equity15.Share capital15.1.

The General Meeting of 19 May 2020 decided to destroy 24,500,000 treasury shares.

The total number of shares with voting rights attached was thus increased to 220,880,430.

Number of shares Value in € millions

Total Treasuryshares(1) Outstanding Share

capitalIssue

premiumsTreasury

shares

At 1 January 2019 245,140,430 13,978,631 231,161,799 23.5 240.3 (64.6)Purchases of treasury shares, net of sales

- 9,564,513 (9,564,513) - - (26.3)

Exercise of options and award of free shares

- (85,000) 85,000 - - 0.0

OCEANE equity component 240,000 - - - 0.7 -

Refund of issue premium - - - - (27.4) -

At 31 December 2019 245,380,430 23,458,144 221,922,286 23.5 213.6 (90.9)

Purchases of treasury shares, net of sales

- 10,871,023 (10,871,023) - - (25.6)

Exercise of options and award of free shares

- (50,000) 50,000 - - -

Capital increase - - - - - -

Destruction of treasury shares (24,500,000) (24,500,000) - - - 93.5

Refund of issue premium - - - - - -

At 31 December 2020 220,880,430 9,779,167 211,101,263 23.5 213.6 (23.0)

At 31 December 2020, all of the shares are in their own account.(1)

The number of dematerialised shares stands at 158,716,396.

The number of registered shares is 62,164,034, a total of 220,880,430.



Bearer shares

During the 2018 financial year, only oneshareholder claimed its shares (1,688 sharesafter the split) from Caisse des Dépôts etConsignations. The number of Econocomgroup shares registered in the nameof Caisse des Dépôts et Consignations inour register therefore amounts to1,092,156 shares.

the number of Econocom group sharesregistered in the name of Caisse des Dépôtset Consignations in our register amounts to1,085,668 shares.

In 2019, following claims from twoshareholders (for a total of 6,488 shares)from Caisse des Dépôts et Consignations,

In 2020, one shareholder claimed his shares,representing 7,424 Econocom shares. At31 December 2020, the number of Econocomgroup shares registered in the name ofCaisse des Dépôts et Consignations in theregister of shares therefore amounted to1,078,244 shares.

Changes in equity attributable to owners 15.2.of the parentAt 31 December 2020, equity attributable to owners of the parent amounted to €406.1 million(€410.2 million at 31 December 2019). The table below shows changes in this item:

in € millions Attributable to ownersof the parent

At 31 December 2019 410.2

Comprehensive income 41.3

Share-based payments, net of tax 1.3

Refund of issue premiums/Payments to shareholders (25.7)

Capital increase

Treasury share transactions (25.6)

Transactions on stock options -

Change in fair value of liabilities under put options (0.2)

Impact of put options granted to non-controlling shareholders -

Reclassifications between equity attributable to owners of the parent and non-controlling interests following acquisitions of additional shares -

Miscellaneous (transactions impacting non-controlling interests and other transactions)* 4.8




Changes in equity not recognised in profit or loss15.3.

ECONOCOM GROUP SHARE-BASED PAYMENTS15.3.1.

The Group regularly awards stock purchaseand subscription options, as well as freeshares, to Management, certain corporateofficers and select employees. Thesetransactions are recognised at fair value atthe grant date using the Black-Scholes-Merton mathematical option pricing model.

vesting period. An offsetting entry isrecorded to equity. Subsequent changes inthe fair value of the options do not impactthe initial measurement.

Fair value, corresponding to the estimatedcost of the services provided by thebeneficiaries, is recognised on a straight-line basis in “Personnel costs” over the

At the end of each reporting period, theGroup revises the assumptions used tocalculate the number of equityinstruments. The impact of this revisedestimate, if any, is taken to profit or loss andthe expenses accrued adjusted accordingly.The offsetting entry is recorded in equity.

Stock subscription 15.3.1.1.and purchase option plans

granted is expensed over the vesting period.When the options are exercised, equity isincreased by the proceeds received.

Stock subscription and purchase optionplans have been granted to some of theGroup’s employees and corporate officers foran agreed unit price. Stock subscription andpurchase option plans are equity-settledshare-based payment transactions. Inaccordance with the number of optionsexpected to vest, the fair value of the options

The characteristics of these plans aredetailed below. It should be noted that thenumber of options granted remainsunchanged but that owing to the sharesplit, the number of rights attached to eachoption has doubled.



Stock option plans 2013 Options 2014 Options(1) 2017

Options (2)Total

Year granted 2013 2014 2015 2016 2017

Options outstanding at 31 December 2019

250,000 1,599,620 356,800 85,000 90,000 2,381,420

Options granted during the period - - - - - -

Options exercised during the period - - - - - -

Options lapsed, forfeited or cancelled (250,000) - - - - (250,000)

Options outstanding at 31 December 2020

- 1,599,620 356,800 85,000 90,000 2,131,420

Rights granted in number of shares (comparable) at 31 December 2019

500,000 3,199,240 713,600 170,000 90,000 4,672,840

Rights granted in number of shares (comparable) at 31 December 2020

- 3,199,240 713,600 170,000 90,000 4,172,840

Option exercise price (in €) 5.96 5.52 7.70 11.48 6.04

Share purchase price (in €) 2.98 2.76 3.85 5.85 6.04

Average share price at the exercise date - 5.52 - - -

Expiry date Dec. 2020 Dec. 2021 Dec. 2022 Dec. 2023 Dec. 2023 -In December 2014, the Board of Directors approved a plan to issue 2,500,000 stock subscription rights. These(1)

options were issued by the Compensation Committee in 2014 (2,075,000 options), 2015 (360,000 options) and 2016(105,000 options). The formula adopted will allow Econocom group to issue new shares upon exercise of theseoptions.In May 2017, the Board of Directors approved a plan to issue 2,000,000 stock subscription rights, 1,950,000(2)

of which were issued in December 2017 by the Compensation Committee. These options will also give rise tothe issue of new shares.



The fair values of the options were measured at the grant date using theBlack-Scholes-Merton mathematical option pricing model. The table below shows themeasurements along with the main assumptions used:

General information Initial measurement assumptions (IFRS 2)

Plan Year granted

Optionsoutstanding Fair value Volatility Vesting

period

Estimatedfuture

dividend in %RFIR(1)

2014

2014 1,599,620 0.73 28% 4 years 2% 0.32%

2015 356,800 1.00 28% 4 years 2% 0.35%

2016 85,000 1.65 30% 4 years 2% 0.02%

2017 2017 90,000 1.08 29% 4 years 2% 0.13%

TISR: risk-free interest rate.(1)

Options are measured at fair value atthe grant date in accordance with IFRS 2.

Volatility is calculated by an actuary basedon a four-year record of daily pricespreceding the option grant date, in line withthe maturity of the options.

A detailed description of these stock optionplans can be found in section 5.10 ofthe Management Report.

Free share plan15.3.1.2.

In July 2020, the Board of Directors ofEconocom implemented a new free shareallocation plan for a total of allocation of1,600,000 shares.

Vesting may be subject to the achievementof individual and/or collective objectives,that may be internal and/or external tothe Econocom group.

As at 31 December 2020, 1,780,000 freeshares had not been exercised.



2018 2020 Total

Tranches 2 3 4 5 1 2 3

Free shares outstanding at 31 Dec. 2019

197,500 197,500 197,500 197,500 - - - 790,000

Award - - - - 300,000 900,000 400,000 1,600,000

Vesting - - - - - - - -

Exercise (50,000) - - - - - - (50,000)

Loss or cancellation (147,500) (137,500) (137,500) (137,500) - - - (560,000)

Free shares outstanding at 31 Dec. 2020

- 60,000 60,000 60,000 300,000 900,000 400,000 1,780,000

Expiry date March 2020

March 2021

March 2022

March 2023

July2021

July 2022

July2023 -

Each tranche is contingent on the employeebeing present in the Group throughout thevesting period, and on a series of conditionsrelating to performance and share price.

Econocom group 15.3.1.3.share-based payment expense in the income statement

The total expense taken to profit or loss in2020 in respect of share-based paymentsamounted to €0.8 million, and was recordedin personnel costs within profit (loss) fromcurrent operating activities. A tax effect wasrecognised for an amount that was notmaterial.

current operating activities. A tax effect wasrecognised for an amount that was notmaterial.

The total expense taken to profit or loss in2019 in respect of share-based paymentsamounted to €0.7 million, and was recordedin personnel costs within profit (loss) from

PROVISIONS FOR PENSIONS 15.3.2.AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS

The impact of provisions for pensionsand other post-employment benefits onconsolidated equity is set out in note 17.

TREASURY SHARES15.3.3.

Treasury shares and the related transactioncosts are recorded as a deduction fromequity. When they are sold, the considerationreceived in exchange for the shares net ofthe transaction costs is recorded in equity.



At 31 December 2020, the Group held9,779,167 treasury shares (i.e., 4.4% ofthe total number of shares) throughthe parent company Econocom group SE.

introduction of double voting rights forregistered shares held for more than twoyears.

At the General Meeting of 19 May 2020,it was decided to cancel 24,500,000 treasuryshares held by Econocom group and the

The net acquisition cost of shares acquiredand the proceeds from the sale of sharessold were respectively deducted from oradded to equity.

DIVIDEND15.3.4.

The Board of Directors recommends that at the General Meeting shareholders vote to refundthe issue premium considered as paid-in capital, in an amount of €0.12 per share. The tablebelow also shows the dividend per share paid by the Group in respect of previous years.

Issue premium

refund proposedin 2021

Dividend paidin 2020

Issue premiumrefunded

in 2019

Total dividend in € millions(1) 25.3 25.7 29.4

Dividend per share in € (after the share split) 0.12 0.12 0.12

Calculated based on the total number of shares outstanding at 31 December of each year.(1)

As this refund of the issue premium issubject to the approval of the GeneralMeeting, it is not recognised as a liability inthe consolidated financial statements forthe year ended 31 December 2020.

CURRENCY TRANSLATION 15.3.5.RESERVES

subsidiaries with functional currencies otherthan the euro. Foreign exchange gains andlosses recorded in equity attributable toowners of the parent and non-controllinginterests represented a decrease of€10.0 million versus a decrease of €5.7 millionat 31 December 2019. At 31 December 2020,changes in this item result chiefly fromfluctuations in the value of the Brazilian real,Currency translation reserves correspond toUS dollar, pound sterling and Polish zloty.the cumulative effect of the consolidation of



Change in non-controlling interests15.4.At 31 December 2020, non-controlling interests amounted to €66.8 million (€73.7 million at31 December 2019). The table below shows changes in this item:

in € millions Non-controllinginterests


Share of comprehensive income attributable to non-controlling interests 3.2

Impact of put options granted to non-controlling shareholders -

Reclassifications between equity attributable to owners of the parent and non-controlling interests following acquisitions of additional shares -

Miscellaneous transactions impacting reserves of non-controlling interests (10.1)


The share of profit recognised in the income statement for non-controlling interestsrepresents +€3.4 million for 2020 (compared with +€3.9 million in 2019).

Information regarding non-controlling interests15.5.At 31 December 2020, non-controllinginterests primarily concerned Econocom’s“Satellites” in the Digital Services &Solutions activity: Altabox, Alter Way,Asystel Italia, Exaprobe, Helis and Infeeny.

Econocom group’s total assets orconsolidated equity.

Together these companies accounted for9.8% of total assets and 21.2% of consolidatedequity at 31 December 2020. Takenindividually, none of these entitiesrepresents a significant percentage of

Current accounts granted to these companiesby Econocom Finance SNC amounted to-€4.0 million at 31 December 2020.

After eliminating items between thesecompanies and other Group companies,these entities contributed €396.3 million torevenue in 2020.



Provisions16.The Group recognises provisions whenit has a legal or constructive obligationtowards a third party as a result of pastevents which is likely to result in an outflowof resources that can be measured reliably.

The amount recognised represents the bestestimate of the expenditure expected to berequired to settle the present obligation,taking into account the risks anduncertainties known at the reporting date.

Long-term provisions

Long-term provisions cover risks which arenot reasonably expected to materialise forseveral years, and concern social risks.They are discounted if required.

Short-term provisions

Short-term provisions primarily correspondto provisions for claims related to theGroup’s normal operating cycle and whichare expected to be settled within 12 months.

They mainly include:

provisions for social risks (including risks•arising from reorganisation measures);

tax and legal risks (disputes in progress•with customers, suppliers, agents or taxauthorities);

deferred commissions, (calculated contract-•by-contract based on the residual value ofleased assets, less any residual commercialvalue of the contracts concerned);

other provisions.•

Contingent liabilities

Other than the general risks described innote 19, the Group did not identify anymaterial risks not provisioned in its financialstatements.

Provisions for restructuring and socialrisks

Provisions for restructuring and social risksin the amount of €4.9 million cover futurecosts related particularly to the ongoingtransformation of the Digital Services &Solutions business line, on the one hand,and litigation with former employees, onthe other.

Provisions for tax, legal and commercialrisks

This item includes provisions for legal andcommercial risks in the amount of€18.6 million, which mainly cover the risksrelated to ongoing litigation with customers.

Provisions for other risks

Provisions for other risks (€20.0 million)cover a wide variety of risks.



Change in 2020 provisions


Changesin scope

ofconsoli-

dation

Addi-tions

Rever-sals(not

used)

Rever-sals

used

Otherand

exchangediffe

rences

31 Dec.2020

Restructuring and social risks 6.7 - 2.4 (0.4) (4.0) 0.3 4.9

Tax, legal and commercial risks

19.2 - 12.3 (3.7) (3.8) (1.0) 23.0

Deferred commissions 1.5 - - (0.1) (0.1) - 1.4

Other risks 8.5 3.7 12.7 (4.6) (0.3) - 20.0

Total 35.8 3.7 27.4 (8.7) (8.1) (0.7) 49.2

Long-term 3.3 - 9.7 (0.7) (0.6) - 11.5

Short-term 32.6 3.7 17.7 (8.0) (7.5) (0.7) 37.7

Profit (loss) impact of movements in provisions

Profit (loss) from current operating activities 11.6 (8.4) (4.5)

Profit (loss) from discontinued operating activities 8.8 (0.3) (3.2)

Income tax expense (0.4)

Profit (loss) from discontinued operations 7.0

Change in 2019 provisions

in € millions31

Dec.2018

Addi-tions

Rever-sals (not

used)

Rever-sals

usedIFRS 5

Other andexchange

diffe-rences

31 Dec.2019

Restructuring and social risks 7.3 3.2 (0.9) (2.4) (0.5) - 6.7

Tax, legal and commercial risks

17.4 11.2 (2.6) (5.2) (1.7) - 19.2

Deferred commissions 1.7 0.1 (0.3) - - - 1.5

Other risks 17.2 4.3 (4.0) (0.2) (5.1) (3.8) 8.5

Total 43.7 18.9 (7.8) (7.8) (7.4) (3.8) 35.8

Long-term 2.1 1.6 (0.1) (0.3) - - 3.3

Short-term 41.6 17.3 (7.7) (7.5) (7.4) (3.8) 32.6

Profit (loss) impact of movements in provisions

Profit (loss) from current operating activities 7.1 (6.5) (3.8)

Profit (loss) from discontinued operating activities 11.8 (1.2) (3.0)

Income tax expense (0.1) (1.0)



Provisions for pensions 17.and other post-employment benefit obligations.

Description of pension plans17.1.

Post-employment benefits are grantedunder defined contribution plans ordefined benefit plans.

DEFINED CONTRIBUTION 17.1.1.PLANS

A defined contribution plan is a plan underwhich the Group pays fixed contributionsto an external entity that is responsible forthe plan’s administrative and financialmanagement. The employer is thereforefree of any subsequent obligation as theagency is in charge of paying employeesthe amounts to which they are entitled(basic Social Security pension plan,supplementary pension plans).

Special case: Pensions plans in Belgium

The Belgian “Vandenbroucke Law” statesthat employers must guarantee a minimumreturn on employee contributions. AllBelgian defined contribution plans aretherefore treated as defined benefit plans inaccordance with IFRS.

As from 1 January 2016, the Group has beenrequired to guarantee a minimum returnfor contributions paid in. The returndepends on the yield on Belgian 10-yeargovernment bonds but should be between1.75% and 3.25%. There will be no distinctionmade between employer and employeecontributions.

Employers are exposed to a financial risk asa result of this guaranteed minimum returnfor defined contribution plans in Belgium,since they have a legal obligation to payadditional contributions if the plan doesnot have sufficient assets to pay all benefitsrelating to past service costs.

These plans are classified and accountedfor as IAS 19 defined benefit plans.

DEFINED BENEFIT PLANS17.1.2.

Defined benefit plans are characterised bythe employer’s obligation to its employees.Provisions are therefore accrued to meetthis obligation.

The defined benefit obligation is calculatedusing the projected unit credit method,which uses actuarial assumptions asregards salary increases, retirement age,mortality, employee turnover andthe discount rate.

Changes in actuarial assumptions, or thedifference between these assumptions andactual experience, result in actuarial gainsor losses. These are recognised in othercomprehensive income for the period inwhich they occur, in accordance withthe Group’s accounting principles.

For the Group, defined benefit post-employment plans primarily concernthe benefits described below:

severance pay in France:•

lump-sum benefits calculated▶according to the employee’s years ofservice and his/her averagecompensation over the last 12 monthsprior to his/her departure,

the calculation is based on inputs▶defined by the Human ResourcesDepartment in France in Novembereach year,

the calculated amount is set aside▶under provisions in the balance sheet;



termination benefits in Italy:•

rights vested by employees for each▶year of service pro rata to their grossannual compensation, revised everyyear and paid in advance or uponretirement, voluntary departure ortermination,

the calculated amount is set aside▶under provisions in the balance sheet;

At Econocom International Italia and AsystelItalia, all rights arising after 1 January 2007have been transferred to an external entityand provisions therefore only concern rightsvested at 31 December 2006 for which theGroup was still liable at 31 December 2020.

Since Italy requires rights to be transferredto a third party or treasury fund as froma certain threshold only, certain rightsrelating to Bizmatica were kept onthe Group’s books.

“Group” insurance in Belgium:•

the employee, payable as eithera lump-sum benefit or equivalentannuity, or compensation in the eventof death during employment. As thepayment guaranteed by the insurancecompany is uncertain, the Grouppresents these plans as defined benefitplans, even though the amount of suchplans in the balance sheet is subject toonly minimal changes;

defined contribution plans, which▶provide a guaranteed return onpayments made by the employer and

company pension plans in Austria: these•are paid on the basis of employees’ years ofservice and also cover the risk of death anddisability. The benefits are also paid over tothe surviving spouse in the event of deathof the employee.

The Group has plan assets in France,Belgium and Austria. The expected rate ofreturn on plan assets has been set atthe same level as the rate used to discountthe obligation.

Provisions for pensions and otherpost-employment benefit obligations foractivities held for sale are recognised under“Liabilities held for sale”.

The amounts which Econocom expects to pay directly in 2021 in respect of its employercontribution to the bodies in charge of collecting contributions, will represent around€1 million.



Actuarial assumptions and experience 17.2.adjustmentsActuarial valuations depend on a certain number of long-term variables. These variables arereviewed every year.

France Other countries(1)

2020 2019 2020 2019

Retirement age 63-65 years old 63-65 years old 60-65 years old 60-65 years old

Salary increase rate and rights vested

2.20% 2.20% 2.00% – 2.84% 1.00% – 2.20%

Inflation rate 1.70% 1.70% 1.70% 1.70%

Discount rate 0.35% 0.70% 0.35% 0.70%

Mortality table INSEE 2014-2016 INSEE 2013-2015 - -

Individually, the “Other countries” had an immaterial impact.(1)

The employee turnover rate was determinedbased on statistics for each country andbusiness. The employee turnover rate isapplied depending on the age band of eachemployee and, for certain countries,depending on the employee’s status(managerial-grade/non-managerial-grade).

increase in the provision of approximately€1.7 million. A 0.25 percentage pointincrease in the discount rate would lead toa €1.3 million decrease in the provision.

A decrease of around 0.25 percentagepoints in the discount rate would lead to an

In accordance with IAS 19, the discount ratesapplied to determine the amount of theobligation are based on the yield onlong-term private-sector bonds over a termmatching that of the Group’s obligations.


Present value of obligation (a) 70.7 72.2

Present value of plan assets (b) 27.4 27.3

Impact of discontinued activities and disposals (c) 1.7 7.8

Provision for pension obligations (a) – (b) – (c) 41.5 37.1

Long-service awards 0.2 0.3

Provisions for pension and other post-employment benefit obligations 41.8 37.4



Income and expenses recognised in profit or loss17.3.Items of pension cost

in € millions 31 Dec. 2020 31 Dec. 2019restated*

Service cost (3.6) (3.9)

Curtailment/termination 2.2 1.7

Interest expense (0.3) (0.6)

Expected return on plan assets 0.2 0.3

Total costs recognised in profit or loss (1.4) (2.5)

Total costs recognised in other items of comprehensive income 1.4 (0.9)



Service cost is shown within “Employee benefits expense” in the income statement. Interestexpense, corresponding to the cost of discounting the obligation, is included in “Financialexpenses”. Curtailments and terminations are mainly included in profit (loss) fromdiscontinued operating activities.

Changes in provisions recorded in the balance 17.4.sheetChanges in the 2020 provision


Changesin scope of

consolidation

Incomestatement

Benefitspaid

directly

Actuarialgains and

losses(1)

31 Dec.2020

France 30.5 2.7 0.9 (0.4) 0.5 34.2

Other countries 6.6 - 0.5 (0.6) 0.8 7.3

Provisions for pensions 37.1 2.7 1.4 (1.0) 1.4 41.5

Long-service awards (France) 0.3 - - - - 0.2

Total 37.4 2.7 1.4 (1.0) 1.4 41.8Cumulative revaluation gains and losses carried in other comprehensive income represented a net negative(1)

amount of €5.1 million in 2020 and €4.3 million in 2019, i.e., a change of €0.8 million between the two periods,resulting primarily from the change in actuarial assumptions and from changes in scope of consolidation.



Changes in the 2019 provision


Changesin scope

of consoli-dation

Incomestatement

Benefitspaid

directly

Reclassif-ication ofliabilities

heldfor sale

Actuarialgains and

losses

31 Dec.2019

France 37.8 (0.3) 2.0 (0.8) (5.9) (2.3) 30.5

Other countries 6.8 - 0.5 (0.9) (1.3) 1.4 6.6

Provisions for pensions 44.6 (0.3) 2.5 (1.6) (7.2) (0.9) 37.1

Long-service awards (France) 0.5 - (0.2) - (0.1) - 0.3

Total 45.1 (0.3) 2.3 (1.6) (7.3) (0.9) 37.4

Changes in plan assets17.5.Changes in 2020 plan assets


Effectsfrom

changesin scope

ofconsoli-

dation

Expectedreturn

Benefitspaid by

employer

Benefitspaid by

fund

Curtailment/termination

Actuarialgains

andlosses

31 Dec.2020

France 3.1 (0.8) 0.1 - (0.4) - - 2.0

Other countries(1) 24.1 - 0.2 1.0 (0.6) 0.2 0.5 25.4

Total 27.3 (0.8) 0.2 1.0 (1.0) 0.2 0.5 27.4Including €24.8 million at 31 December 2020 relating to Belgian entities.(1)

These plan assets are mainly invested in financial investments with banks and insurancecompanies.

Changes in 2019 plan assets


Valuationof termi-nation ofemploy-

ment

Expectedreturn

Benefitspaid by

employer

Benefitspaid by

fund

Curtailment/-termination

Actuarialgains

andlosses

31 Dec.2019

France 3.8 - 0.1 - (0.8) - - 3.1

Other countries(1) 14.7 8.7 0.2 1.1 (0.9) 0.2 0.1 24.1

Total 18.5 8.7 0.3 1.1 (1.6) 0.2 0.1 27.3Including €23.6 million at 31 December 2019 relating to Belgian entities.(1)



Estimated payments under defined benefit plans 17.6.(no discounting) over a ten-year periodTiming of estimated payments to be made to employees under the main defined benefitplans, either by the plan (plan assets) or directly by Econocom if there are no plan assets:

in € millions Due in lessthan 1 year 1-2 years 2-3 years 3-4 years 4-10 years Total

Estimated payments 2.0 1.2 1.8 2.4 29.2 36.6

Notes to the consolidated 18.statement of cash flowsDefinition of cash flows

Cash flows are presented in the statementof cash flows, which analyses changes incash flows from all activities, includingcontinuing and discontinued operations aswell as activities held for sale.

Cash as presented in the statement of cashflows includes cash and cash equivalents,presented net of bank overdrafts.

Year-on-year changes in cash and cash equivalents can be broken down as follows in 2020and 2019:


Net cash and cash equivalents at 1 January 575.6 604.8

Change in net cash and cash equivalents 72.9 (29.3)

Net cash and cash equivalents at 31 December 648.5 575.6

Comments on the net cash from (used in) 18.1.operating activitiesNet cash used in operating activities totalled€232.6 million in 2020 compared to€126.2 million in 2019, reflecting:

cash flow from operating activities•totalling €107.2 million in 2020 versus€141.3 million in 2019;

€52.6 million in 2020 (down by €7.7 millionin 2019);

a reduction in outstandings related to•self-funded contracts in the TechnologyManagement & Financing activity for

other drops in working capital•requirement (down €86.9 million in 2020compared with a drop of 6.5 million in2019); this decline reflects the constantattention paid to the reduction of the cashrequirements of each entity.



NON-CASH EXPENSES (INCOME)18.1.1.

in € millions Notes 2020 2019restated*

Elimination of share of profit (loss) of associates and joint ventures - -

Depreciation/amortisation of property, plant and equipment and intangible assets 10.1/10.2 43.9 57.6

Net additions to (reversals from) provisions for contingencies and expenses 4.3 3.6

Change in provisions for pensions and other post-employment benefit obligation 0.1 1.1

Impairment of non-current financial assets - 1.0

Impairment of trade receivables, inventories and other current assets (1.0) 6.7

Total provisions, depreciation, amortisation and impairment 47.4 70.0

Change in residual interest in leased assets(1) (3.1) 3.2Cost of discounting residual interest in leased assets and gross commitments on residual financial assets (2.7) (1.5)

Losses (gains) on disposals of property, plant and equipment and intangible assets 4.4 2.6

Gains and losses on fair value remeasurement 2.4 0.4 (0.3)

Expenses calculated for share-based payments 1.3 0.7

Impact of sold operations and changes in consolidation methods and other income/expenses with no effect on cash and cash equivalents

(23.6) (26.2)

Other non-cash expenses (income) (20.2) (24.8)

Non-cash expenses (income) 24.1 48.3Changes in the Group’s residual interest in leased assets compare the undiscounted value of the residual interest(1)

from year to year, adjusted for currency impacts. The impact for the period of discounting is eliminated inthe “Other non-cash expenses (income)” item.

In accordance with IFRS 5, the restatement of the 2019 figures reflects the reclassification of operations considered*




COST OF NET DEBT18.1.2.

The reconciliation of financial expense booked in the income statement with financialexpense relating to the cost of debt as presented in the statement of cash flows can bepresented as follows:

in € millions

2020consolidated

incomestatement

Discountingand change in

fair value

Currencyimpact and

otherCost of net

debt in 2020

Net financial expense – operating activities 2.2 (2.7) 1.1 0.6

Other financial income and expenses (16.2) - 0.5 (15.8)

Total (14.0) (2.7) 1.6 (15.2)

CHANGE IN WORKING CAPITAL REQUIREMENT18.1.3.

Changes in working capital requirement can be analysed as follows:

in € millions Notes 31 Dec.2019

Change inworking

capitalrequire-ment in

2020

Reclassif.of assets/Liabilities

held forsale

Otherchanges(1)

31 Dec.2020

Other long-term receivables, gross 10.4 13.6 7.5 - 3.4 24.5

Inventories, gross 12.1 69.2 16.9 0.2 (0.4) 85.9

Trade receivables, gross 12.2 1,064.3 (132.4) 10.9 (58.7) 884.0

Other receivables, gross 12.2 103.4 (23.3) (0.4) 7.0 86.6

Residual interest in leased assets(2) 11.1 165.0 - 10.3 175.2

Current tax assets 18.1 - (0.1) (5.4) 12.6

Other current assets 12.2 58.4 (12.2) 0.4 1.1 47.7

Trade receivables and other operating assets

1,492.0 (143.5) 11.0 (42.8) 1,316.7

Other non-current liabilities 12.5 (42.4) 8.6 - (21.3) (55.1)

Trade payables 12.3 (756.9) (20.3) (7.3) 9.3 (775.2)

Other payables 12.3 (223.7) 6.6 (0.3) 0.6 (216.8)

Current tax liabilities (18.0) 1.3 (0.3) 3.8 (13.2)

Other current liabilities 12.4 (238.4) 7.4 (1.2) 28.4 (203.8)

Gross commitments on residual financial assets(3)

11.2 (101.5) 0.4 - (2.6) (103.7)



in € millions Notes 31 Dec.2019

Change inworking

capitalrequire-ment in

2020

Reclassif.of assets/Liabilities

held forsale

Otherchanges(1)

31 Dec.2020

Trade and other operating payables (1,381.0) 4.0 (9.1) 18.1 (1,367.9)

Total change in working capital requirements

- (139.5)

Mainly corresponding to changes in the scope of consolidation, in fair value and translation adjustments.(1)

Changes in the residual interest in leased assets are shown in cash flows from operating activities.(2)

Corresponding to changes in residual financial assets excluding the currency effect and discounting in the period.(3)

Breakdown of net cash from (used in) in investing 18.2.activitiesNet cash from investing activities totalled€125.5 million, primarily reflecting:

contingent consideration and deferreddebt;

net cash inflows of +€140.4 million mainly•related to the disposals of “EconocomBusiness Continuity” and “EconocomDigital Security”, the acquisition of thecash of “Les Abeilles”, less the payment of

cash outflows of -€14.9 million resulting•from investments in property, plant andequipment and intangible assets relatingto the Group’s IT infrastructure andapplications (see note 10).

Breakdown of net cash from (used in) in financing 18.3.activitiesNet cash from financing activitiesamounted to -€287.1 million, mainlyreflecting:

cash outflows of €25.6 million relating to•net treasury share buybacks;

cash outflows of €27.5 million relating to•compensation of shareholders duringthe year (dividend payments);

the decrease in lease refinancing liabilities•of €14.0 million;

outflows of €12,5 million in repayments of•financial debts;

the repayment of commercial paper in•the amount of €159.5 million;

lease payments in the amount of•€24.8 million related to leases whereEconocom is the lessee (buildings andvehicles) and presented here inaccordance with IFRS 16;

disbursements in the amount of•€9.7 million related to the buybacks ofpart of the OCEANE bonds (see note 14);

interest payments totalling €15.2 million•in the year (including coupon paymentson loans bonds).



Risk management19.Capital adequacy 19.1.

frameworkThe Group seeks a level of gearing thatmaximises value for shareholders whilemaintaining the financial flexibility that isrequired to implement its strategic projects.

Treasury shares are detailed in Note 15.3.3.

The only potentially dilutive instruments arefree shares granted under performanceshare plans, stock options (see note 15) andconvertible bonds (see note 14).

Risk management 19.2.policyThe Group’s activities are subject to certainfinancial risks: market risk (includingcurrency risk, interest rate risk and price risk),liquidity risk and credit risk.

The Group’s overall financial riskmanagement policy focuses on reducingexposure to credit risk and interest rate riskby transferring finance lease receivables torefinancing institutions and by usingfactoring solutions on a non-recourse basis inthe Digital Services & Solutions businesses.Financial market risks (interest rate andcurrency risk) and liquidity risks are handledby Group Management.

MARKET RISK19.2.1.

At the end of the year, Group Managementfixes all of the rates to be applied inthe following year’s budgeting process.

The Group manages its exposure to interestrate and currency risks by using hedginginstruments such as swaps and foreignexchange forward contracts. These derivativefinancial instruments are used purely forhedging and never for speculative purposes.

Currency risk19.2.1.1.

The Group operates chiefly in the eurozone;however, following the expansion ofoperations in non-eurozone countries inEurope, as well as North and South America,the Group may be exposed to currency riskon other currencies. The table belowsummarises the sensitivity of certainconsolidated income statement lines toan increase or decrease of 10% in exchangerates against the euro, linked tothe translation of the subsidiaries’ foreigncurrency accounts.



Sensitivity of income statement

in € millionsContribution to the consolidated financial

statementsSensitivity

to a change of:

EUR GBP USD PLN Other Total +10% (10%)

Revenue from continuing operations

2,407.2 41.4 86.9 14.5 8.7 2,558.7 (13.8) 16.8

Profit (loss) from current operating activities

109.7 0.7 4.8 3.4 1.8 120.4 (1.0) 1.2

Profit 48.3 (0.1) 2.5 2.4 (2.9) 50.2 (0.2) 0.2

Since the subsidiaries’ purchases and salesare mainly denominated in the samecurrency, this exposure is limited. Econocomgroup does not deem this risk to bematerial, but has nevertheless signed anumber of foreign exchange hedgingagreements to hedge risks on internal flows.

agreements work. Regardless ofmovements in the dollar, the impact onprofit or loss is not material.

The Group also manages finance leaseagreements denominated in US dollars in itsTechnology Management & Financingbusiness. Currency risk is hedged naturallydue to the specific way in which these

INTEREST RATE RISK19.2.2.

Econocom’s operating income and cashflows are substantially independent ofchanges in interest rates. Sales of leases torefinancing institutions are systematicallybased on fixed rates. Income arising onthese contracts is therefore set at the outsetand only varies if the contract is amended.

The table below presents a breakdown of fixed-rate and floating-rate debt:

in € millions

At 31 December 2020 At 31 December 2019

Outstanding % totaldebt Outstanding % total

debt

Fixed rate(1) 464.9 74% 531.8 64%

Floating rate(2) 163.5 26% 296.0 36%

Gross debt(2) (see note 14.2) 628.3 100% 827.8 100%Of which the OCEANE convertible bond (issued in March 2018) and all Schuldschein notes: one tranche of(1)

the notes (€115 million) bears interest at floating rates; however, an interest rate swap was set up at the outsetto convert this floating rate to a fixed rate.Excluding bank overdrafts.(2)



At 31 December 2020, some of the Group’sdebt is at floating rates and comprisesshort-term borrowings (credit lines andcommercial paper), and short-termfactoring agreements.

The interest rate sensitivity analysis showsthat a 1% (100 basis point) rise in short-terminterest rates would result in a €1.8 millionimpact on in profit (loss) before tax.

PRICE RISK19.2.3.

The Group is exposed to the risk offluctuations in the residual interests ofleased equipment within the scope of itsTechnology Management & Financingbusiness. It deals with this risk by calculatingthe future value of equipment using thediminishing balance method, therebyguarding against the risk of obsolescence.This method is described in note 11.1.

The method is regularly compared withactual transactions, and annual statistics arecompiled to validate the suitable andprudent nature of the selected method.

LIQUIDITY RISK19.2.4.

The Financing Department is responsible forensuring that the Group has a constant flowof sufficient funding:

by analysing and updating cash flow•forecasts on a monthly basis for the Group’s15 main companies;

by negotiating and maintaining sufficient•outstanding lines of financing;

by optimising the Group’s cash pooling•system in order to offset cash surplusesand internal cash requirements.

The credit lines negotiated in place at 31 December 2020 are shown below:

2020 in € millions Total amountavailable

Total amountdrawn down

Unconfirmed credit lines(1) 96.0 -

Confirmed credit lines 165.1 31.2

Total credit lines 261.1 31.2Repayment schedule not defined.(1)

The credit lines ensure that the Group has theliquidity needed to fund its assets, short-termcash requirements and development at thelowest possible cost.

In October 2015, Econocom set up acommercial paper programme on theFrench market. At 31 December 2020, theamount outstanding under this programme(capped at €450 million) was €119.0 million.

The characteristics of bond debt are set outin note 14.2.

Based on its current financial forecasts, anddespite the Covid-19 crisis, EconocomManagement believes it has sufficientresources to ensure the continuity anddevelopment of its activities.



Maturity analysis for financial liabilities (excluding derivative instruments) and otherliabilities (including liabilities under put and call options on non-controlling interests)

The following maturity analysis for financial liabilities (principal and interest) showsremaining contractual maturities on an undiscounted basis:

2020 in € millions Totalcommitment

Less than1 year 1 to 5 years Beyond

5 years

Lease liabilities 57.5 22.5 35.0 -

Gross commitments on residual financial assets 111.0 29.8 81.2 -

Liabilities relating to contracts refinanced with recourse 83.8 33.5 50.4 -

Bank debt, commercial paper and other 155.9 130.4 25.5 -

Convertible loans bonds (OCEANE) 206.6 5.7 201.0 -

Non-convertible loans bonds (Euro PP/Schuldschein) 212.0 141.5 70.6 -

Trade payables 775.2 775.2 - -

Other payables (excluding derivative instruments) 215.7 215.7 - -

Other current (financial) liabilities 18.9 18.9 - -

Non-current non interest-bearing liabilities 55.1 6.6 48.5 -

Total 1,891.8 1,379.7 512.2 -

2019 in € millions Totalcommitment

Less than1 year 1 to 5 years Beyond

5 years

Lease liabilities 59.2 21.5 37.7 -

Gross commitments on residual financial assets 108.7 21.8 86.9 -

Liabilities relating to contracts refinanced with recourse 94.3 35.6 58.8 -

Bank debt, commercial paper and other 292.0 289.2 2.8 -

Convertible loans bonds (OCEANE) 222.8 5.6 217.3 -

Non-convertible loans bonds (Euro PP/Schuldschein) 262.2 50.6 211.6 -

Trade payables 756.9 756.9 - -

Other payables (excluding derivative instruments) 222.8 222.8 - -

Other current (financial) liabilities 35.6 35.6 - -

Non-current non interest-bearing liabilities 42.4 3.3 39.1 -

Total 2,097.1 1,443.0 654.1 -



CREDIT AND COUNTERPARTY RISK19.2.5.

The Group has no significant exposure to outstanding rentals in the TMF business.credit risk. It has policies in place to ensure The Group decided to concentrate itsthat sales of goods and services are made to strategic transactions bearing credit riskcustomers with an appropriate credit history. within its subsidiary Econocom DigitalThe Group’s exposure is also limited as it Finance Limited to ensure a consistent riskdoes not have any concentration of credit management approach.risk and uses factoring solutions for theDistribution and Services businesses, as wellas non-recourse refinancing with banksubsidiaries and credit insurance in theTechnology Management & Financingbusiness. For its Technology Management &Financing business, the Group neverthelesshas the option of retaining the credit risk oncertain strategic transactions; leasecontracts on which Econocom bears thecounterparty risk represent less than 10% of

The Group only invests with investmentgrade counterparties, thus limiting its creditrisk exposure.

Maximum credit risk exposure

As the Group has no credit derivatives orcontinuing significant involvement in thetransferred assets, its maximum exposure inthis respect is equal to the book value of itsfinancial assets (see note 13.1).

Aged balance of past due receivables

2020 in € millions

Book value

Receivables not past

dueBreakdown by maturity

Total Less than60 days

Between60 and

90 daysOver

90 days

Trade receivables – refinancing institutions, gross

53.9 41.4 12.5 8.3 0.7 3.5

Other receivables, gross 830.1 660.2 169.9 59.8 6.0 104.1

Impairment of doubtful receivables

(70.8) (16.9) (53.9) (0.5) (0.2) (53.2)

Trade and other receivables, net 813.2 684.7 128.5 67.6 6.4 54.4

EQUITY RISK19.2.6.

The Group does not hold any unlisted orlisted shares apart from treasury shares.

As the treasury shares held by Econocomgroup at 31 December 2020 are deductedfrom shareholders’ equity in the consolidatedfinancial statements as of their acquisition, itis not necessary to compare their book valueto their actual market value.



Off-balance sheet commitments20.Commitments 20.1.

received as a result of acquisitionsVendors warranties in connection withacquisitions carried out in prior years werenon-significant.

Commitments given 20.2.in respect of disposalsFor the disposals which took place in 2019and 2020, the vendor warranties granted bythe group were not material.

Bank covenant20.3.Only one covenant exists for the Euro PPprivate placement loan bond and theSchuldschein notes (private placementunder German law). A breach would notresult in early redemption; rather, it wouldforce the Group to pay a higher interest rateuntil the ratio is brought back within therelevant bounds. It is calculated as of31 December of each year, and correspondsto the ratio of net debt to proforma EBITDA.It may not exceed 3 over two consecutiveyears. At 31 December 2020, this covenantwas respected.

Guarantee commitments20.4.

in € millions Total guarantees given –2020

Guarantees given by Econocom to banks for securing credit lines and borrowings(1) 351.1

Guarantees given by Econocom to refinancing institutions to cover certain operational risks, residual financial values, and invoice and payment mandates granted to Econocom(2)

291.3

Guarantees given to customers for the Group’s sales activities and guarantees given to suppliers 121.8

Total guarantees given 764.2Including €55.5 million recognised in financial liabilities. The guarantees relating to financing lines not yet drawn(1)

at 31 December 2020 totalled €295.7 million and €293.5 million at 31 December 2019.Including €226.7 million refinanced at 31 December 2020, including €76.2 million in the balance sheet relating to(2)

liabilities under finance leases with recourse. The amount of guarantees given to refinancers and not refinancedat 31 December 2020 was €64.6 million compared with €62.7 million at 31 December 2019.



The Group’s off-balance sheet commitments can be analysed as follows by maturityand type of commitment:

in € millions Less than1 year 1-5 years Beyond

5 yearsAt

31 December2020

At31 December

2019

Commitments given 62.9 473.5 227.8 764.2 745.0Commitments given to banks 30.0 321.1 - 351.1 350.0

Commitments given to refinancers - 63.5 227.8 291.3 273.7

Commitments given to customers and suppliers 32.9 88.9 - 121.8 120.1

Other guarantees - - - - 1.2

Commitments received - 1.9 - 2.0 1.6

Guarantees and pledges - 1.9 - 2.0 1.6

Information on the transfer 21.of financial assets and liabilities

Derecognition 21.1.of financial assets and liabilitiesThe Group derecognises all or part ofa financial asset (or group of similar assets)when the contractual rights to the cashflows on the asset expire or when theGroup has transferred the contractualrights to receive the cash flows of thefinancial asset and substantially all the risksand rewards of owning the asset.

The Group only derecognises all or part ofa financial liability when it is extinguished,i.e., when the obligation specified in thecontract is discharged, cancelled or expires.

Transfer of cash flows only

any rights and obligations created orretained in the transfer.

When the Group has transferred the cashflows of a financial asset but has neithertransferred nor retained substantially allthe risks and rewards of its ownership andhas not retained control of the financialasset, the Group derecognises it andrecognises separately as assets or liabilities

Retaining substantially all the risks andrewards of ownership of a divestedfinancial asset

If the Group has retained substantially allthe risks and rewards of ownership ofa divested financial asset, it continues torecognise the financial asset in its entiretyin addition to recognising the considerationreceived as a secured borrowing.

Retaining control of a financial asset

If the Group has retained control ofa financial asset, it continues to recognise iton the balance sheet to the extent ofits continuing involvement in that asset.

If the Group neither transfers nor retainssubstantially all the risks and rewards ofownership and continues to control thedivested asset, it recognises the part it hasretained in the asset and an associatedliability for the amounts it is required to pay.



Full derecognition

When a financial asset is derecognised infull, a gain or loss on disposal is recorded inthe income statement for the differencebetween the book value of the asset and theconsideration received or receivable,adjusted where necessary for any gains orlosses recognised in other comprehensiveincome and accumulated in equity.

Partial derecognition

When a financial asset is partiallyderecognised, the Group allocates theprevious book value of the financial assetbetween the part that continues to berecognised in connection with the Group’scontinuing involvement and the part that isderecognised, based on the relative fairvalues of those parts on the date of thetransfer. The difference between the bookvalue allocated to the part derecognised andthe sum of the consideration received for thepart derecognised and any cumulative gainor loss allocated to it that had beenrecognised in other comprehensive income,is recognised in profit or loss. A cumulativegain or loss carried in other comprehensiveincome is allocated between the part thatcontinues to be recognised and the part thatis derecognised, based on the relative fairvalues of those parts.

Factoring liabilities

ownership of trade receivables and allassociated rights to the factor. This meanstransfer of the right to receive cash flows.

Certain subsidiaries of Econocom group usefactoring to diversify financing sources andreduce credit risk. Factoring with contractualsubrogation involves the transfer of

As required under IFRS 9 “Financialinstruments: Recognition and Measurement”,these receivables are derecognised whensubstantially all the risks and rewards ofownership are transferred to the factor.Where this is not the case they aremaintained in the balance sheet after thetransfer and a financial liability is recorded asan offsetting entry for the cash received.

Reverse factoring

Reverse factoring is a transaction for the saleof trade receivables to a factor, organised bythe debtor company of the receivables.Reverse factoring agreements involve threeparties who sign two contracts: a contract forthe assignment of receivables between thesupplier and the factor and an agreementbetween the factor and the customer whoundertakes to pay the invoices assigned bythe supplier to the factor.

Under IFRS 9, the debt is not extinguished ifit is not legally extinguished and its termsand conditions are not substantiallymodified. In this case, the debt remainsclassified as trade payables.

In light of these provisions of the standardand the characteristics of the contracts, theGroup analyses and makes a judgment onthe accounting process for reverse factoringtransactions.



Information on 21.2.the transfer of assets – Assets not derecognised in fullAssignment of trade receivables

a portion of its trade receivables throughoutthe year to factoring companies.At 31 December 2020, the Company had anamount of €275.3 million with factoringcompanies, resulting in non-recoursefinancing of €222.3 million. The unfinancedamount of €45.5 million is recognised in

For the purpose of optimising its cash non-current financial assets and othermanagement for its Digital, Services & receivables, and corresponds to unassignableSolutions businesses, the Group assigns receivables (security guarantees).


Receivables assigned to factoring companies 275.3 299.9

Payables 7.5 4.0

Non-factored receivables 45.5 49.2

Receivables sold with no recourse* 222.3 246.7Receivables sold do not include the portion of receivables financed with recourse, classified in liabilities.*

The overall factoring cost amounted to€2.9 million in 2020 compared with€2.5 million in 2019.

It should be noted that at the end ofDecember 2020, Econocom used reversefactoring for an amount of €96.2 million(compared to €25 million end-2019). Giventhat there is no legal novation of the debtand that the terms and conditions have notbeen substantially modified, the debtremains recognised in trade payables.

Refinancing with recourse

on its factored receivables. In this case, theGroup transfers title to the equipmentunder the lease to the refinancinginstitution for the duration of the lease, ascollateral for the transaction.

In certain very limited cases, Econocomgroup retains its exposure to the credit risk

However, for the purposes of simplification,the Group recognised a financial liabilityequal to the total amount factored withrecourse and recorded a gross asset(representing its “continuing involvement”as defined by IFRS 9) in trade receivables foran amount of €76.2 million at 31 December2020 (€90.3 million at 31 December 2019).



Information 21.3.on transfers of assets associated with refinancing – Derecognised assets

NATURE OF CONTINUING 21.3.1.INVOLVEMENT

Residual financial value

Outstanding amounts under the Group’slease agreements with customers arerefinanced on a non-recourse basis exceptin very rare cases.

The Group’s active risk management policyis aimed at limiting both credit risk and anyother continuing involvement. Accordingly,the Group derecognises outstandingamounts under leases refinanced ona non-recourse basis.

However, the Group frequently sells, andcommits to repurchase, the leasedequipment at the same time as theoutstandings under leases. These purchaseobligations are classified within “grosscommitments on residual financial assets”and recognised in balance sheet liabilities.

Other continuing involvement

The main legal forms of refinancingcontracts for lease outstandings aredescribed below:

outstandings assigned in full: Econocom•considers that it has no other involvementwithin the meaning of IFRS 7;

outstandings assigned as sales of•receivables: Econocom has continuinginvolvement since it retains a portion ofthe risk associated with the contractualrelationship and ownership of the assets;

outstandings assigned under finance•leases: Econocom has continuinginvolvement since it retains a portion ofthe risk associated with the contractualrelationship.

Risk from continuing involvement dependsabove all on Econocom’s relationship withits customers, and as such is considered,managed and, where appropriate, coveredby provisions as an operational risk and nota financial risk.

RECOGNITION IN INCOME 21.3.2.STATEMENT

For Econocom group, the cost oftransferring outstandings is an operatingexpense included in the economic analysisof each transaction, and is included in profit(loss) from current operating activitiesaccordingly. In contrast, costs relating tothe factoring of trade receivables are ofa financial nature and are classified withinnet financial expense. Gains and costsrelating to unwinding the discount on theresidual interest in leased assets and togross commitments on residual financialassets are considered as operating costsand are included in “Financial income –operating activities”.

BREAKDOWN OF TRANSFERS 21.3.3.FOR THE YEAR

Refinancing is part of the operating salescycle and its seasonal nature is thus linkedto that of its business and not tothe presentation of the balance sheet.

A significant part of this business takesplace in December, which is traditionallyan important month for companies whereICT investments and digital investmentsmore generally are concerned.



Related-party information22.This note presents material transactions between the Group and its related parties.

Management compensation22.1.The Group’s key management personnelare the Chairman, the Vice-Chairman, themanaging Directors and the members ofthe Executive Committee.

Directors following a recommendation ofthe Compensation and AppointmentsCommittee. The Board has given itsChairman a mandate to determine thecompensation of the other senior managersThe compensation conditions for theof the Group upon the recommendations ofChairman, the Vice-Chairman and thethe Appointments and Compensationpersons delegated to day-to-dayCommittee.management are set by the Board of


Short-term benefits (including social costs) (3.7) (4.8)

Retirement benefits and other post-employment benefits - -

Other long-term benefits - -

Termination benefits (0.7) (2.2)

Share-based payments (0.8) (0.2)

Attendance fees(1) - -

Total (5.2) (7.2)The table only shows compensation paid to key management personnel and excludes attendance fees paid(1)

to non-executive Directors.

The table above shows the amountsexpensed for the members of the ExecutiveCommittee and the managing Directors.This table does not show fees billed toEconocom group entities by management,which are disclosed in note 22.2 below.

The compensation policy for Directors andmembers of the Executive Committee is setout in further detail in the Board ofDirectors’ Management Report insection 5.7.1.



Related-party 22.2.transactionsTransactions between the parent companyand its subsidiaries, which are relatedparties, are eliminated on consolidation andare not presented in this note.

transactions carried out with the Chairmanof the Board of Directors, its Vice-Chairman,the managing Directors and the executiveDirectors, or with companies controlled bythe Group or over which it exercisessignificant influence. These transactionsexclude the components of compensationpresented above.The related-party transactions outlined

below primarily concern the main

Transactions between related parties are carried out on an arm’s length basis.

in € millions Income Expenses Receivables Payables

2020 2019 2020 2019 2020 2019 2020 2019

Econocom International BV (EIBV)

0.4 0.3 (2.0) (2.4) 0.1 - - 0.1

SCI Dion-Bouton 1.6 0.6 (2.1) (2.5) 2.3 2.7 - -

SCI Maillot Pergolèse - - (1.2) (1.3) 0.1 0.2 - -

SCI JMB - - (1.2) (1.1) 0.3 0.3 - -

APL - - (0.1) (0.2) - - 0.1 -

Bay Consulting SPRL - - - (0.5) - - -

Orionisa consulting - - (0.3) (1.2) - - - -

Métis - - (1.2) (1.0) - - 0.7 0.6

Total 2.0 0.9 (8.5) (10.2) 2.7 3.2 0.8 0.7

Relations with companies controlledby Jean-Louis Bouchard

SCI Dion-Bouton, of which Jean-LouisBouchard is Managing Partner, owns thebuilding in Puteaux, and it received€2.1 million in rent in 2020 (€2.5 million in2019). A credit note to be received in theamount of €1.6 million was then collectedcorresponding to the non-occupancy of thepremises over the first three quarters of2020. In addition, the Econocom groupbooked receivables of €2.3 millionrepresenting the deposits paid by EconocomFrance SAS to SCI Dion-Bouton.

Econocom International BV (EIBV) – of whichJean-Louis Bouchard is a Partner – is a non-listed company that directly holds 40.4% ofthe share capital of Econocom group SEat 31 December 2020. EconocomInternational BV billed fees of €2.0 million toEconocom group SE and its subsidiaries in2020 for managing and coordinating theGroup. These fees amounted to €2.4 millionin 2019. It was also rebilled an amount of€0.4 million by Econocom group entities.



Transactions with SCI Maillot Pergolèse,which owns the premises in Clichy and ofwhich Jean-Louis Bouchard is Partner andRobert Bouchard Manager, consist of rentfor 2020 amounting to €1.2 million.Receivables in the amount of €0.1 millioncorrespond to guarantees issued byEconocom SAS.

SCI JMB, which owns the premises inVilleurbanne and of which Jean-LouisBouchard is Managing Partner, billed theGroup a total amount of €1.2 million forrent in both 2020 and 2019. Econocom SASpaid €0.3 million in guarantees to SCI JMB.

Other relations with related parties

The Group recognised liabilities in 2015 forcommitments to one of the managingDirectors to purchase non-controllinginterests in Alter Way for €0.4 million.

Econocom group committed to invest€3 million in investment fund Educapital IFCPI, which is managed by a managementcompany (Educapital SAS), of whichMarie-Christine Levet, an independentDirector on the Econocom group Board ofDirectors, is chairwoman and shareholder.

Orionisa Consulting, which is controlled byJean-Philippe Roesch, invoiced consultingservices in the amount of €0.3 million.



Subsequent events23.Acquisition of Econocom group sharesby BIS BV

Butler Industries) in the share capital ofEconocom group SE.

On 4 February 2021, BIS BV, a subsidiary ofEconocom group, entered into anagreement under which it acquires the6.01% stake (i.e. 13,278,091 shares) held bytwo companies controlled by Walter Butler(namely Butler Industries Benelux SA and

The selling price agreed was €2.825 perEconocom group SE share.

Following this transaction, Walter Butlerresigned as Director of Econocom group SE.

06 consolidated financial statements



07shareholders

Share performance 1.and shareholders 260

Econocom group SE share 1.1.performance 260Name, registered office and legal 1.2.form 262Corporate Purpose 1.3.(article 3 of the Bylaws) 262

Share capital1.4. 263Rights attached to shares1.5. 266General Meetings1.6. 270Provisions that could delay, defer 1.7.or prevent a change in control of the Company 273Notifications of major shareholdings1.8. 274Econocom’s largest shareholder1.9. 275


07 shareholdersshare performance and shareholders

Share performance 1.and shareholders

Econocom group SE share performance1.1. Price (in €) Volume

2018 Highest(in €)

Lowest(in €)

Last(in €)

Price(in €)

Numberof shares

traded

Value(in €

thousands)

January 7.30 5.92 6.72 6.50 8,023,061 52,141

February 7.07 6.36 6.66 6.68 7,786,606 52,032

March 6.62 5.78 5.95 6.14 12,527,051 76,882

April 6.03 5.14 5.35 5.51 11,874,357 65,486

May 5.49 5.20 5.29 5.35 9,719,694 51,999

June 5.71 4.71 4.72 5.29 8,994,421 47,575

July 4.68 2.52 3.02 2.94 65,405,115 192,218

August 3.18 2.84 3.05 2.97 24,411,283 72,530

September 3.12 2.28 2.80 2.71 26,733,717 72,383

October 2.89 2.35 2.76 2.63 16,259,853 42,768

November 3.25 2.67 3.22 2.94 13,105,122 38,487

December 3.27 2.69 2.91 2.92 8,423,123 24,613

Total 2018 7.30 2.28 2.91 3.70 213,263,403 789,114


07shareholdersshare performance and shareholders

Price (in €) Volume


Lowest(in €)

Last(in €)

Price(in €)

Numberof shares

traded

Value(in €

thousands)

January 3.23 2.79 3.09 3.03 6,359,334 19,300

February 3.72 2.98 3.55 3.40 8,183,178 27,805

March 3.80 3.36 3.55 3.59 6,010,681 21,567

April 4.01 3.45 3.62 3.68 3,878,115 14,262

May 3.62 2.94 3.11 3.14 3,863,691 12,116

June 3.40 2.93 3.07 3.11 2,996,948 9,331

July 3.24 2.88 3.01 3.05 3,320,357 10,120

August 3.24 2.68 2.71 2.87 2,878,893 8,258

September 2.95 2.28 2.30 2.55 3,728,108 9,490

October 2.48 2.00 2.34 2.32 6,831,355 15,821

November 2.62 2.30 2.35 2.43 3,205,255 7,782

December 2.44 2.22 2.43 2.28 2,375,624 5,427

Total 2019 4.01 2.00 2.43 3.01 53,631,539 161,281

Price (in €) Volume


Lowest(in €)

Last(in €)

Price(in €)

Numberof shares

traded

Value(in €

thousands)

January 2.64 2.18 2.57 2.43 5,218,108 12,657

February 2.88 2.42 2.53 2.67 4,586,770 12,246

March 1.37 2.62 1.45 1.79 9,268,272 16,632

April 1.98 1.43 1.76 1.80 4,544,070 8,166

May 1.98 1.60 1.98 1.77 3,774,087 6,688

June 2.20 1.77 1.80 1.98 3,556,799 7,042

July 2.39 1.68 2.35 2.06 5,729,737 11,825

August 2.53 2.22 2.53 2.41 3,212,973 7,731

September 2.80 2.18 2.58 2.53 8,349,002 21,107

October 2.65 1.76 1.89 2.13 7,045,390 15,034

November 2.49 1.87 2.37 2.22 5,763,940 12,778

December 2.56 2.36 2.46 2.47 3,577,779 8,840

Total 2020 2.88 1.37 2.46 2.18 64,626,927 140,745



Name, registered 1.2.office and legal formCompany name: Econocom group SE

Registered office: Place du Champ deMars 5, 1050 Brussels (Tel. +32 2 790 81 11).

Legal form, incorporation, publisheddocuments:

Econocom was incorporated as a limitedcompany (société anonyme) under Belgianlaw on 2 April 1982, under a deed held byJacques Possoz, notary, and published in theBelgian Official Gazette (Moniteur belge) of22 April 1982 (no. 820–11). It was transformedinto a European company (Societaseuropaea) by decision of the GeneralMeeting of 18 December 2015 under a deedof the same date held by Tim Carnewal,notary, published in the Belgian OfficialGazette of 31 December 2015.

Econocom is a European Company(Societas europaea) governed by theprovisions of regulation (EC) No. 2157/2001 of8 October 2001 on the Statute for aEuropean Company (the “SE Regulation”)and Directive No. 2001/86/EC of 8 October2001 supplementing the Statute for aEuropean Company with regard to theinvolvement of employees and theprovisions of Belgian law in respect ofEuropean Companies, as well as, for all othermatters not yet covered or only partiallycovered by the SE Regulation, Belgian lawapplicable to public limited companiesinsofar as they are not contrary to specificprovisions applicable to EuropeanCompanies. Econocom is a listed companywithin the meaning of article 1:11 of theBelgian Companies Code (Code dessociétés).

It is registered with the Brussels register ofcompanies of under number 0422.646.816.

Term: indefinite.

Financial year: 1 January to 31 December.

Corporate Purpose 1.3.(article 3 of the Bylaws)The Company’s purpose is, in all countries:

the design, construction, operational and•administrative management, and financingof computer, digital and technological,information and data processing, andtelecommunication systems and solutions,or such systems and solutions as they relateto the Internet of Things (IoT);

the purchase, sale, leasing and trading of all•types of hardware, software and computer,technological, digital or telecommunicationssolutions, for businesses and individualsalike, and more broadly any accessoryconnected with such solutions, as well asany advice, services and related financialtransactions.

To this end, the Company may acquire,manage, operate and sell patents,trademarks, and technical, industrial andfinancial knowledge.

It may establish branch offices orsubsidiaries in all countries.

It may acquire interests in any companywith similar or complementary activities inany country by means of asset transfers,acquisitions, partial or total mergers,subscriptions to initial capital or capitalincreases, financial investments, disposals,loans or any other means.

It may perform, in all countries, all industrial,commercial, financial, securities andproperty transactions related in whole or inpart, directly or indirectly, to one or otherbranch of its purpose, or one that is liable toexpand its purpose or facilitate itsachievement.

It may provide guarantees or grant real orother personal guarantees in favour ofcompanies or individuals, in the broadestsense.



It may conduct its activities in its own nameor on behalf of third parties, for its ownaccount or for the account of others.

Share capital1.4.SHARE CAPITAL 1.4.1.

(ARTICLE 5 OF THE BYLAWS)

At 31 December 2019, the Company’s sharecapital stood at €23,512,749.67 and wascomposed of 245,380,430 ordinary shareswith no stated par value, held in registered,or dematerialised form. The capital is fullypaid-up.

CHANGES IN SHARE CAPITAL 1.4.2.BY THE GENERAL MEETING (ARTICLE 6 OF THE BYLAWS)

The share capital may be increased orreduced by a decision of the GeneralMeeting in accordance with the conditionsrequired for amending the Bylaws.

For capital increases approved by theGeneral Meeting, the price and conditionsfor issuing new shares are set at the samemeeting based on recommendations fromthe Board of Directors.

Existing shareholders have a pre-emptiveright to subscribe for the new shares incash, in proportion to the number of sharesthey hold, within a time limit set at theGeneral Meeting and in accordance withconditions determined by the Board ofDirectors.

Shares with no stated par value below thecarrying amount of the par value of existingshares may only be issued in compliancewith legal requirements.

conditions required for amending theBylaws or by the Board of Directors, withinthe authorised capital, in favour of one ormore designated persons who are notemployees of the Company or itssubsidiaries, all in accordance with legalprovisions.

Pre-emptive rights may, however, in theCompany’s best interests, be limited orcancelled by decision of the GeneralMeeting ruling in accordance with the

The Board of Directors may signagreements, containing the clauses andconditions it deems appropriate, with anythird party in order to ensure that all or partof the shares to be issued are subscribed.

The share capital may be redeemedwithout being reduced by repaying aportion of the distributable profits tosecurities representing this share capital, inaccordance with the law.

CHANGES IN SHARE CAPITAL1.4.3.

At 31 December 2019, the Company’s sharecapital stood at €23,512,749.67 and wascomposed of 220,880,430 ordinary shareswith no stated par value, held in registered,or dematerialised form. The capital is fullypaid-up.

At 31 December 2020, authorised unissuedcapital (excluding issue premiums) stood at€23,512,749.67.

The changes in share capital over the lastthree financial years are described below.

No changes were made to the sharecapital in 2018.

The following changes to the sharecapital occurred in 2019:

in connection with the exercise of•subscription options by a beneficiary of the2014 Stock Option Plan, on 21 June 2019Econocom issued 240,000 new shares afterwhich the share capital of Econocomgroup stood at €23,512,749.67, representedby 245,380,430 shares.



The following changes to the sharecapital occurred in 2020:

The Extraordinary General Meeting of 19 May2020 decided to cancel 24,500,000 treasuryshares, with no change in the share capital ofEconocom group.

In addition, the same General Meetingintroduced a double voting right forshareholders included in the registered listfor more than two years.

At 31 December 2020, the capital was made upof 220,880,430 shares and 280,656,613 votingrights.

Changes in the Company’s share capital and number of shares since 1 January 2011 aresummarised in the table below:

Transa-ction date

Type of issueChange

innumber

of shares

Changein share

capital(in €)

Issuepremiums

(in €)

Totalamount

of thetransaction

(in €)

Numberof shares

Paid-incapital

(in €)

1 Jan. 2011 26,172,897 17,076,677.70

14 Sept. 2012

Cancellation oftreasury shares (2,000,000) - - - 24,172,897 17,076,677.70

14 Sept. 2012

Four-for-oneshare split 72,518,691 - - - 96,691,588 17,076,677.70

12 Sept. 2013

Capital increaseas payment

for an acquisition9,527,460 1,682,642.38 50,734,212.37 52,416,854.75 106,219,048 18,759,320.08

18 Nov. 2013

Capital increaseas payment for a

takeover bid6,313,158 1,114,965.29 36,763,982.71 37,878,948.00 112,532,206 19,874,285.37

31 Dec. 2013


24 Jan. 2014

Capital increasethrough

convertible bonds(OCEANE)

20,000 3,732.00 101,268.00 105,000.00 106,537,314 19,878,017.37

25 Feb. 2014



266,028 49,640.82 1,347,006.18 1,396,647.00 106,803,342 19,927,658.19

26 Mar. 2014



210,592 39,296.47 1,066,311.53 1,105,608.00 107,013,934 19,966,954.66

28 May 2014


convertiblebonds (OCEANE)

708,428 132,192.66 3,587,054.34 3,719,247.00 107,722,362 20,099,147.32

18 June 2014


convertiblebonds (OCEANE)

7,850,228 1,464,852.54 39,748,844.46 41,213,697.00 115,572,590 21,563,999.86

29 Dec. 2014




Transa-ction date

Typeof issue

Change inthe

numberof shares

Changein capital

(in €)

Issuepremium

(in €)

Totaltransaction

(in €)

Numberof shares

Paid-incapital (in

€)

17 Feb. 2017


redeemablebonds (ORNANE)

400,000 76,640.00 4,299,240.00 4,375,880.00 112,919,287 21,640,639.86

3 Mar. 2017



1,198,194 229,573.97 12,883,101.71 13,112,675.68 114,117,481 21,870,213.83

16 Mar. 2017


redeemablebonds

(ORNANE)

800,000 153,280.00 8,603,440.00 8,756,720.00 114,917,481 22,023,493.83

21 Mar. 2017



1,144,500 219,286.20 12,311,386.50 12,530,672.70 116,061,981 22,242,780.03

24 Mar. 2017



657,418 125,961.29 7,072,897.29 7,198,858.58 116,719,399 22,368,741.32

31 Mar. 2017


redeemablebonds

(ORNANE)

1,961,518 375,826.85 21,106,537.80 21,482,364.65 118,680,917 22,744,568.17

6 Apr. 2017


redeemablebonds

(ORNANE)

3,889,298 189.50 41,855,117.90 42,600,307.40 122,570,215 23,489,757.66

2 June 2017

Two-for-oneshare split 122,570,215 - - - 245,140,430 23,489,757.66

21 June 2019

Capital increaseby the exerciseof subscription

option

240,000 22,992 639,408 662,400 245,380,430 23,512,749.67

19 May 2020


The Extraordinary General Meeting of 21 May2019 renewed for five years from the decisionof the General Meeting the authorisationgranted to the Board of Directors to buyback treasury shares in the proportion of upto 20% of share capital, in accordance witharticle 7:215 of the CSA. The minimumpurchase price was set at €1 per share andthe maximum price at €10 per share.

Directors to increase the share capital, inaccordance with articles 7:198 and 7:199 of theBelgian Companies Code, on one or severaloccasions, under conditions it deems fit, inthe maximum amount of €23,512,749.67.

On 19 May 2020, the Extraordinary GeneralMeeting granted to the Board of Directors, fora five-year period as from the publication ofthe revised Bylaws, i.e. 9 June 2015, theauthorisation granted to the Board of

At the end of this Extraordinary GeneralMeeting, the Board of Directors was grantedan authorisation to sell Company shares, incases provided for by the CSA, including toone or more identified persons. If necessary,this authorisation may be extended to thedisposal of treasury shares of the Companyby its subsidiaries.



At 31 December 2020, Econocom groupheld 9,779,167 treasury shares representing4.43% of the total number of sharesoutstanding.

Rights attached 1.5.to shares

PARTICIPATION IN GENERAL 1.5.1.MEETINGS AND VOTING RIGHTS

Participation in General 1.5.1.1.Meetings

Right to participate in General 1.5.1.1.1.Meetings

All shareholders are entitled to attendEconocom group’s General Meetings,regardless of the number of shares theyhold, provided that they meet the admissionrequirements set out in the “GeneralMeetings” section of this chapter.

Holders of bonds, subscription rights andcertificates issued in connection with theCompany may attend the General Meetingin a non-voting capacity only, provided thatthey meet the admission requirementsapplicable to shareholders.

Right to call General Meetings1.5.1.1.2.

Shareholders who, alone or jointly, hold atleast 10% of Econocom’s share capital areentitled to ask the Board of Directors orStatutory Auditor to call a General Meeting.

Right to add matters to the 1.5.1.1.3.agenda and to table draft resolutions

Shareholders who, alone or jointly, hold atleast 3% of Econocom group’s share capitalmay ask for items to be added to the agendaof General Meetings and file resolutionproposals concerning agenda items.

This right does not apply to Meetings calledfollowing a first Meeting that could notvalidly make decisions due to a failure tomeet quorum requirements.

Shareholders wishing to exercise this rightmust:

prove that they actually hold at least 3%(i)of the Econocom group’s share capital onthe date of filing of their request; and

ensure that their shares representing at(ii)least 3% of the share capital are dulyregistered at the record date.

Ownership is established either by acertificate stating that the correspondingshares are recorded in the Company’s shareregister or by a certificate issued by anauthorised account holder or clearinginstitution certifying that the correspondingnumber of shares is registered in the accountheld by the account holder or clearing agent.

Shareholders may send their requests to theCompany by post or email. Whereappropriate, these requests must alsoinclude the items to be added to the agendatogether with the related resolutionproposals and/or the text of the newlyproposed resolutions concerning itemsalready on the agenda. Requests must alsoindicate the postal or email address to whichEconocom should send confirmation ofreceipt. Requests must reach the Companyno later than the 22nd day preceding the dateof the relevant General Meeting.



Econocom will confirm receipt of anyrequests within 48 hours, and will publish arevised agenda no later than 15 days beforethe General Meeting. Proxy forms and postalvoting forms are also published on theCompany’s website (www.econocom.com).However, all proxies and postal voting formspreviously submitted to Econocom remainvalid for the agenda items they cover. Theproxy holder may deviate from the votinginstructions given by the shareholder foritems on the agenda for which alternativeresolution proposals have been made if theexecution of these instructions is liable tocompromise the interests of the shareholderhe/she represents. The proxy holder must inany event inform the shareholder of anysuch votes. The proxy must also indicatewhether the proxy holder is entitled to voteon new items added to the agenda byshareholders or whether he/she shouldabstain.

Right to ask questions1.5.1.1.4.

After the Notice of Meeting has beenpublished, all shareholders are entitled toput questions to Econocom’s Directors orStatutory Auditor concerning their reports.After the Notice of Meeting has beenpublished, all shareholders are also entitledto put questions to Econocom’s Directorsregarding items on the agenda of theGeneral Meeting. The Directors andStatutory Auditor are required to answerthese questions, provided they do not harmthe Company’s commercial interests or anyconfidentiality undertakings made by theCompany, its Directors or its StatutoryAuditor. Questions relating to the samesubject may be grouped and answeredtogether.

Questions submitted by post or by electronicmeans must reach Econocom group no laterthan the sixth calendar day before theMeeting. They will only be answered if theshareholder meets the admissionrequirements for the relevant GeneralMeeting.

Questions may be submitted before theGeneral Meeting (by post or by electronicmeans, to the address shown in the Notice ofMeeting) or during the Meeting (verbally).

Other rights to information1.5.1.1.5.

All Econocom group shareholders havespecific rights to information under thenew Belgian Companies Code.

Most rights to information concern GeneralMeetings. They include, among otherthings, the right to consult or to obtain acopy at no cost of:

the text of the meeting notices and, if(i)available, of the amended agenda;

the total number of shares and voting(ii)rights;

the documents to be presented to the(iii)General Meeting (annual financialstatements, reports and other documentsdescribed in article 7:148 of the BelgianCompanies Code);

for every subject to addressed on the(iv)agenda, any decision proposed or, whenthe subject does not require the adoptionof a decision, a comment by the Board ofDirectors;

if available, any proposed decision(v)introduced by shareholders, as soon aspossible after receipt by the Company and(vi) proxy forms and forms for voting by mail.These documents/items may be consulted onEconocom’s website (www.econocom.com)and during normal office hours on workingdays at Econocom group’s registered officelocated at Place du Champ de Mars 5, 1050Brussels, from the date of publication of theNotice of Meeting. Holders of registeredshares will receive a copy of these documentstogether with the Notice of Meeting.



Right to vote at General 1.5.1.2.Meetings

Principle1.5.1.1.1.

Each share entitles its holder to one vote,subject to any restrictions provided by law.

As a general rule, the General Meetingalone is responsible for:

approving the annual statutory financial•statements (no such approval is requiredfor the consolidated financial statementsprepared in accordance with IFRS);

appointing and removing Directors and•the Statutory Auditor;

granting discharge to the Directors and•Statutory Auditor;

setting the amount of compensation for•the Directors and Statutory Auditor for theperformance of their duties;

distributing profits;•

filing claims against Directors;•

authorising certain actions by the Board•of Directors;

approving the compensation report;•

authorising the acquisition of treasury•shares;

taking decisions that involve the•liquidation, merger or restructuring of theCompany; and

approving any amendments to the Bylaws.•

Shareholders’ meetings cannot vote onitems that are not on the agenda.

Quorum and voting requirements1.5.1.2.2.

Except as provided by law, decisions aretaken by a majority vote regardless of thenumber of shares represented at theMeeting.

General Meetings can only validlydeliberate and decide to amend the Bylawsif those attending the meeting represent atleast one-half of the share capital. To beadopted, resolutions must be approved bya majority of three-quarters of votes cast.

If the amendments to the Bylaws concern theCompany’s corporate purpose, the GeneralMeeting can only validly deliberate and decideon said amendments if those in attendancerepresent one-half of the share capital andone-half of any profit shares if any. To beadopted, amendments must be approved bya majority of at least four-fifths of votes cast.The quorum and voting requirements alsoapply when the General Meeting votes toauthorise the acquisition or disposal oftreasury shares, or to authorise such anacquisition without the authorisation of theGeneral Meeting to protect the Companyfrom serious and imminent harm.

An attendance list indicating the names ofshareholders and the number of sharesregistered for voting purposes is signed byeach shareholder or by their proxy prior toentering the meeting.

Proxy voting1.5.1.1.3.

All shareholders can choose to berepresented at the General Meeting by aproxy, who may or may not be ashareholder of the Company, in accordancewith articles 7:142 to 7:145 of the BelgianCompanies Code.

The Board of Directors may decide on theform of proxy. Proxies must reach theCompany no later than the sixth daypreceding the date of the Meeting. All proxyvoting forms that reach the Company beforethe revised agenda is published, pursuant toarticle 7:130 of the Belgian Companies Code,remain valid for the agenda items covered.

Distance voting1.5.1.1.4.

Shareholders who satisfy the attendancerequirements specified below may vote at allGeneral Meetings either by post or, wherepermitted in the Notice of Meeting, byelectronic means. Shares will be taken intoconsideration for the purposes of voting andquorum requirements only if the formprovided by the Company has been dulycompleted and reaches Econocom at thelatest on the sixth day before the date of theGeneral Meeting. If the Notice of Meeting



allows shareholders to opt for distancevoting through electronic means, it mustprovide a description of the means used bythe Company to identify shareholders thatchoose to do so.

DISTRIBUTION OF PROFITS1.5.2.

All shares carry the same rights toparticipate in Econocom’s profits.

The Company’s profit for the year iscalculated in accordance with applicablelegal regulations. A total of 5% of profits isallocated to the legal reserve. This allocationis no longer required when the legal reserveequals 10% of the share capital.

Acting on a recommendation of the Boardof Directors, every year the General Meetingindependently determines how the residualprofit balance will be used and allocated bysimple majority vote of members present,within the limits set by articles 7:212 and7:214 of the Belgian Companies Code. Noprofits are distributed when, at the end ofthe last reporting period, net assets asshown in the annual financial statementstotal less than paid-up capital or would totalless than paid-up capital if profits weredistributed or if net assets exceed called-upcapital plus any reserves not available fordistribution pursuant to the law or to theCompany’s Bylaws.

such interim dividend and the dividendpayment date.

In accordance with the Belgian CompaniesCode, the Board of Directors may distributean interim dividend deducted from profit forthe year. The Board sets the amount of any

LIQUIDATION1.5.3.

In the event that Econocom is dissolved forany reason and at any time, the liquidationprocess will be managed by one or moreliquidators appointed by the GeneralMeeting, or, if no such liquidators areappointed, by the Board of Directors in officeat that time, acting as a liquidationCommittee.

For this purpose they will have the broadestpowers conferred by articles 2:87 et seq. ofthe Belgian Companies Code. The GeneralMeeting determines the fees payable to theliquidators. The liquidators can only assumetheir duties after their appointment by theGeneral Meeting has been approved by theCommercial Court pursuant to articles 2:83et seq. of the Belgian Companies Code.

Once all liabilities, expenses and liquidationfees have been settled, the net assets will beused first to refund the outstanding paid-upshare capital in cash or in securities.

If the shares are not all paid up in equalproportions, before making any allocations,the liquidators ensure that all shares are on awholly equal footing, either by additionalcalls for funds charged against shares notfully paid up or by prior cashreimbursements for shares paid up in excessof the requisite amount.

The remaining balance is allocated equallyamong all shares.



PRE-EMPTIVE RIGHTS IN THE 1.5.4.EVENT OF A CAPITAL INCREASE

In the event of a capital increase in cashinvolving the issuance of new shares, or ifthe Company were to issue convertiblebonds or stock warrants exercisable in cash,existing shareholders have, in principle, apre-emptive right to subscribe for the newshares, convertible bonds or stock warrantsin proportion to the percentage of sharecapital they already own at the issuancedate.

The Company’s General Meeting may,however, limit or cancel such pre-emptiverights under specific conditions uponpresentation of a report of the Board ofDirectors. Any such decision is subject tothe same quorum and voting requirementsas a decision to increase the Company’sshare capital. Shareholders may also allowthe Board of Directors to limit or cancelsaid pre-emptive rights in the event of acapital increase within the authorisedcapital limits.

CHANGES IN RIGHTS 1.5.5.ATTACHED TO SHARES

Rights attached to shares issued byEconocom group may be modified by theExtraordinary General Meeting, voting inaccordance with the conditions required foramending the Bylaws. Any changesapproved apply to all shareholders.

General Meetings1.6.Ordinary General Meetings

annual consolidated financial statementsprepared in accordance with IFRS, and thereports of the Board of Directors andStatutory Auditor on the statutory andconsolidated financial statements. TheMeeting decides whether to approve thestatutory financial statements, theappropriation of income, the discharge ofDirectors and the Statutory Auditor and,where applicable, the appointment, removalor re-election of the Statutory Auditor and/orcertain Directors.

The Ordinary General Meeting is held everyyear on the third Tuesday in May, at 11.00amor on the first working day following thisdate if the Tuesday is a holiday. At OrdinaryGeneral Meetings, the Board of Directorssubmits to shareholders the annual statutoryfinancial statements prepared in accordancewith applicable accounting standards, the

Extraordinary General Meetings and Special General Meetings

A Special General Meeting, or, whereappropriate, an Extraordinary GeneralMeeting, may be called by the Board ofDirectors or by the Statutory Auditor as oftenas is required in the Company’s interest. Anysuch Meeting must be called at the request ofthe Chairman of the Board of Directors, aChief Executive Officer (AdministrateurDélégué), a Statutory Auditor (Commissaire),or one or more shareholders representing atleast one-tenth of the Company’s sharecapital (article 27 of the Bylaws).

Content of General Meeting convening notices

General Meeting notices must contain atleast the following information:

the date, time and place of the General•Meeting;

the agenda, indicating the items to be•discussed as well as resolution proposals;

a clear and accurate description of the•formalities to be completed by shareholdersin order to attend the General Meeting andexercise their voting rights, including thedeadline by which shareholders shouldindicate their intention to attend theMeeting:



the right of shareholders to add items▶to the agenda, file resolution proposals,and ask questions, as well as the periodin which these rights may be exercisedand the email address to whichshareholders should send theirrequests. Where applicable, the Noticeof Meeting also indicates the deadlinefor publishing the revised agenda. TheNotice may contain only the details ofthese periods and the email address tobe used, provided that more detailedinformation on shareholder rights isposted on the Company’s website,

the procedure to follow in order to vote▶by proxy, and in particular the proxyvoting form, the conditions in whichthe Company will accept notificationsof the appointment of proxies sent byelectronic means, along with thetimeframe within which the proxyvoting rights may be exercised,

where appropriate, the procedure and▶timeframe set by or pursuant to theBylaws allowing shareholders toparticipate in the General Meetingremotely and opt for distance votingprior to the Meeting (articles 28 and 34of the Bylaws);

the record date, along with a statement•indicating that only people who areshareholders at that date are entitled toattend and vote at the General Meeting;

the address where shareholders can•obtain, for example, the full text of thedocuments and resolution proposalsdescribed, along with the procedure tofollow in order to obtain such documents;

the exact website address on which the•information mentioned below will beavailable.

Availability of documents on Econocom’s website

As from the date of publication of theGeneral Meeting convening notice and upto the date of the General Meeting, thefollowing information is posted forshareholders on the Company’s website(www.econocom.com):

the Notice of Meeting, along with the•revised agenda reflecting itemssubsequently added thereto and the relatedresolution proposals where applicable,and/or the resolution proposals formulatedwithin the timeframe given;

the total number of shares and voting•rights at the date of the Notice of Meeting,including separate totals for each class ofshares, when the Company’s share capital isdivided into two or more share classes;

the documents to be submitted to the•General Meeting;

for each item placed on the General•Meeting agenda, a resolution proposal or,when the matter to be discussed does notrequire any resolution to be adopted, theBoard of Directors’ comments thereon. Theresolution proposals formulated byshareholders pursuant to article 7:130 of theBelgian Companies Code are posted onlineas early as practicably possible after theyhave reached the Company;

the proxy voting form and, where•applicable, the postal voting form, unlessthese forms are sent directly to eachshareholder.

When the forms mentioned above cannotbe posted online due to technical reasons,the Company must explain on its websitehow to obtain a hard copy of them. In thiscase, Econocom is required to send theforms promptly and free of charge to thepostal or email address indicated by anyshareholder that so requests them.



The information mentioned in this sectionwill be available on Econocom’s website(www.econocom.com) for five years as fromthe date of the General Meeting to whichthey relate.

Formalities and notice periods

Notification of all General Meetings mustbe made by announcements placed atleast 30 days before said Meeting in:

the Belgian Official Gazette;•

a newspaper with national circulation,•unless the notice concerns an OrdinaryGeneral Meeting held in the place and atthe time and date indicated in the Bylaws,and whose agenda is confined to thereview of annual financial statements, theannual report, the Statutory Auditor’sreport and the vote to grant discharge toDirectors and the Statutory Auditor;

any media as may reasonably be relied on•to efficiently disseminate information tothe public throughout the EuropeanEconomic Area and which is readilyaccessible in a non-discriminatory manner.

Holders of registered shares as mentioned inthe Belgian Companies Code, along withCompany Directors and the StatutoryAuditor must be notified of the GeneralMeetings 30 days before they are due to takeplace. This notification is sent by ordinaryletter unless the recipients have individuallyand expressly agreed in writing to receivenotification by another means, although noproof of compliance with this formality isrequired. Notices of Meetings are alsoavailable on Econocom’s website(www.econocom.com).

If another Meeting has to be called becausea first meeting did not meet the quorum,and provided that the date of any secondMeeting was indicated in the paragraphabove in the first Notice of Meeting andthat no items have since been added to theagenda, the 30-day period specified aboveis reduced to at least 17 days before theMeeting.

Formalities to be completed in order to attend General Meetings

Shareholders may only attend and vote atGeneral Meetings if their shares areregistered in their name at the record date,i.e., by midnight (CET) on the fourteenth daypreceding the Meeting, either in theCompany’s share register or in the books ofan authorised account holder or clearinginstitution, regardless of the number ofshares held by the shareholder at the dateof the General Meeting.

The shareholders shall inform the Company(or the person designated for this purpose)of their intention to attend the GeneralMeeting no later than the sixth daypreceding the date of said Meeting, inaccordance with the formalities provided inthe Notice of Meeting, and provided thatshareholders present the share certificatedelivered by the authorised account holderor clearing institution.

Holders of bonds or subscription rightsissued in connection with the Companymay attend the General Meeting in anon-voting capacity only, provided thatthey meet the admission requirementsapplicable to shareholders.



Provisions that could 1.7.delay, defer or prevent a change in control of the Company

GENERAL INFORMATION1.7.1.

Laws relating to takeover and squeeze-outbids and their implementing orders, as wellas the Belgian Companies Code and otherapplicable laws, contain various provisions(such as the requirement to disclose majorshareholdings – see section 8 of this chapter– and competition provisions) that may beapplicable to the Company, and which placecertain restrictions on hostile takeover bids orother changes of control. These provisionscould discourage potential takeover bids thatother shareholders may consider to be intheir interests and/or prevent shareholdersfrom selling their shares at a premium.

In certain conditions, the Board of Directorsmay defer or prevent the issuance of sharesthat could have a dilutive impact on existingshareholdings.

AUTHORISED SHARE CAPITAL 1.7.2.(ARTICLE 7 OF THE BYLAWS)

Pursuant to a decision of Econocom’sExtraordinary General Meeting of 19 May 2015,the Board of Directors was grantedauthorisation to increase the share capital, onone or more occasions, under conditionsit deems fit, by an amount of up to€23,512,749.67. At 31 December 2019,authorised unissued share capital stood at€23,512,749.67 (excluding issue premiums).

The Board of Directors may use thisauthorisation to issue shares with or withoutvoting rights, convertible bonds, equity notes,subscription rights payable in cash or in kind,and other share equivalents or equityinstruments issued by the Company.

Any capital increase effected under thisauthorisation may be carried out:

either by means of contributions in cash or•in kind, including any restricted issuepremium, whose amount is fixed by theBoard of Directors, or by creating newshares carrying rights that will bedetermined by the Board;

or by converting reserves – including•restricted reserves – or the issue premiuminto capital, with or without creating newshares.

This authorisation is granted to the Boardof Directors for a period of five years fromthe date of publication of the decision ofthe Extraordinary General Meeting of19 May 2015 in the annexes of the BelgianOfficial Gazette, i.e., 9 June 2015. It may berenewed on one or more occasions, inaccordance with applicable provisions.

In the event that a capital increase is carriedout within the authorised capital, the Boardof Directors will allocate any issue premiumto a restricted account. This account willform part of shareholders’ equity in thesame way as the share capital, and, providedit is converted into capital by the Board ofDirectors, may only be reduced or cancelledby the General Meeting under theconditions required by article 7:208 of theBelgian Companies Code.

The Board of Directors may limit or cancelpre-emptive subscription rights of existingshareholders in accordance with theconditions set forth in articles 7:190 et seq.of the Belgian Companies Code if it is in theCompany’s interests. It may even do so forone or more specific parties other thanemployees of the Company or of itssubsidiaries, except as provided inarticle 7:201 of said Companies Code.



The Board of Directors may decide, withthe right of substitution, to amend theBylaws to reflect the Company’s newcapital and shares each time the sharecapital is increased within the limit of theauthorised capital.

ACQUISITION AND DISPOSAL 1.7.3.OF TREASURY SHARES (ARTICLE 12 OF THE BYLAWS)

The Company may only acquire its ownshares or (if applicable) profit shares bymeans of a purchase or exchange, directlyor by a person or entity acting in their ownname but on the Company’s behalffollowing a decision of an General Meetingvoting pursuant to the quorum and majorityrequirements set forth in article 7:154 of theBelgian Companies Code, which sets themaximum number of shares or profit sharesthat can be acquired, the period for whichthe authorisation is granted, within the limitprovided in article 7:215 of the BelgianCompanies Code, and the minimum andmaximum consideration.

Such an authorisation was given to the Boardof Directors by the Extraordinary GeneralMeeting of 19 May 2020, or a period of fiveyears from the date of the General Meeting,for up to 20% of the shares issued at aminimum price of €1 and a maximum unitprice of €10 per share.

The authorisation of the General Meeting isnot required in the event the purchase oftreasury shares or non-equity shares isnecessary to avoid the Company experiencingserious or immediate damage. In such event,the Board of Directors is authorised topurchase, in accordance with the legalprovisions in force, the Company's sharesthrough acquisition or exchange. Thisauthorisation is granted for a period of threeyears as from the publication of the decisionof the Extraordinary General Meeting of19 May 2020 in the appendix to the BelgianOfficial Gazette (Moniteur belge).

shares of the Company, in accordance witharticle 7:226 of the CSA, within the limit of20% of the share capital. This authorisation isgranted for a period of five years as from thedate on which the decision of the GeneralMeeting is published.

Pursuant to the decision of the ExtraordinaryGeneral Meeting of 19 May 2020, the Board ofDirectors was authorised to pledge treasury

The Board of Directors may sell Companyshares in the cases laid down by the CSA,including to one or more identified persons. Ifnecessary, this authorisation may beextended to the disposal of treasury shares ofthe Company by its subsidiaries.

The Board of Directors may otherwisedispose of shares of the new Company in theconditions provided by the BelgianCompanies Code, as well as to spare theCompany serious and imminent harm,provided, in such cases, that the securitiesare sold on the market or as a public offeringmade on the same conditions to allshareholders.

Notifications of major 1.8.shareholdingsDirective 2004/109/EC of the EuropeanParliament and of the Council of15 December 2004 on the harmonisation oftransparency requirements in relation toinformation about issuers whose securitiesare admitted to trading on a regulatedmarket, amending Directive 2001/34/EC, wastransposed into Belgian law by the Act of2 May 2007 on the publication of majorshareholdings in issuers whose shares areadmitted to trading on a regulated market(“Transparency Act”) and by the Royal Decreeof 14 February 2008 on the publication ofmajor shareholdings (“Royal Decree onTransparency”). This legislation came intoforce on 1 September 2008.

Pursuant to these provisions, any natural orlegal person who acquires, directly orindirectly, securities carrying voting rights ofthe Company must notify it and the FSMA(Belgian Financial Services and MarketsAuthority) of the number and percentage ofvoting rights held subsequent to thisacquisition when the voting rights attached



to securities carrying voting rights reach aproportion of 5% or more of total existingvoting rights. Shareholders must also notifythe Company in the event that they directlyor indirectly acquire securities carryingvoting rights when, as a result of theiracquisition, the number of voting rightsreaches or exceeds 10%, 15%, 20%, and everyfive-percentage point threshold thereafter,of total existing voting rights. Notification isalso required in the event that shareholdersdirectly or indirectly sell securities carryingvoting rights when, as a result of this sale,the voting rights fall below one of thethresholds stated above.

In accordance with article 6 of theTransparency Act, the disclosure requirementsmentioned above apply whenever thenumber of voting rights rises above or fallsbelow the specified thresholds as a result of,among others:

the acquisition or sale of securities1.carrying voting rights, regardless of how thesecurities were acquired or sold, forexample, by means of a purchase, sale,exchange, contribution, merger, spin-off orsuccession;

unintentionally crossing the specified2.thresholds (due to an event altering theallocation of voting rights); or

the conclusion, modification or3.termination of an agreement to act inconcert.

working days of the date on which the eventtook place.

The FSMA and the Company must beinformed of any such event as soon aspossible, and at the latest within four

The Company is required to publish all of theinformation contained in such notificationsno later than three business days afterreceipt. It must also disclose its ownershipstructure in the notes to its annual financialstatements, based on the notificationsreceived.

The Company is also required to publish thetotal amount of share capital, the totalnumber of securities carrying voting rightsand the total number of voting rights, aswell as a breakdown by class (whereappropriate) of the number of securitiescarrying voting rights and the total numberof voting rights, at the end of each calendarmonth during which changes occurred inthese amounts. Where appropriate, theCompany is also required to publish thetotal number of bonds convertible intosecurities carrying voting rights and rightsto subscribe for securities not yet issuedcarrying voting rights, the total number ofvoting rights that would result fromexercising these conversion or subscriptionrights, and the total number of shares withno voting rights.

Econocom’s largest 1.9.shareholderJean-Louis Bouchard, Chairman of Econocomgroup, remains Econocom’s largestshareholder, with approximately 40.4% ofthe share capital at 31 December 2020.

07 shareholders



08statutory auditor’s report on the consolidated financial statements

Statutory auditor’s report to the general shareholders’ meeting on the consolidated accounts 278

Report on the consolidated accounts 278Other legal and regulatory requirements 283


08 statutory auditor’s report on the consolidated financial statementsstatutory auditor’s report to the general shareholders’ meeting on the consolidated accounts

Statutory auditor’s report to the general shareholders’ meeting on the consolidated accounts For the year ended 31 Decelber 2020

We present to you our statutory auditor’s report in the context of our statutory audit of theconsolidated accounts of Econocom Group SE (the “Company”) and its subsidiaries (jointly“the Group”). This report includes our report on the consolidated accounts, as well as the otherlegal and regulatory requirements. This forms part of an integrated whole and is indivisible.

We have been appointed as statutory auditor by the general meeting d.d. 21 May 2019,following the proposal formulated by the board of directors and followingthe recommendation by the audit committee and the proposal formulated by the works’council. Our mandate will expire on the date of the general meeting which will deliberateon the annual accounts for the year ended 31 December 2020. We started the statutory auditof the Consolidated Financial Statements of Econocom Group SE before 1990.

Report on the consolidated accounts

Unqualified opinion

We have performed the statutory audit of the Group’s consolidated accounts, which comprisethe consolidated statement of financial position as at 31 December 2020, the consolidatedincome statement and earnings per share, the consolidated statement of comprehensiveincome, the consolidated statement of changes in equity and the consolidated statement ofcash flows for the year then ended, as well as notes, comprising a summary of significantaccounting policies and other explanatory information. The total of the consolidatedstatement of financial position amounts to EUR 2,658.8 million and the consolidated incomestatement shows a profit for the year attributable to owners of the parent of EUR 46.8 million.

In our opinion, the consolidated accounts give a true and fair view of the Group’s net equityand consolidated financial position as at 31 December 2020, and of its consolidated financialperformance and its consolidated cash flows for the year then ended, in accordancewith International Financial Reporting Standards as adopted by the European Union and withthe legal and regulatory requirements applicable in Belgium.


08statutory auditor’s report on the consolidated financial statementsstatutory auditor’s report to the general shareholders’ meeting on the consolidated accounts

Basis for unqualified opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) asapplicable in Belgium. Furthermore, we have applied the International Standards on Auditingas approved by the IAASB which are applicable to the year-end and which are not yetapproved at the national level. Our responsibilities under those standards are furtherdescribed in the “Statutory auditor’s responsibilities for the audit of the consolidatedaccounts” section of our report. We have fulfilled our ethical responsibilities in accordancewith the ethical requirements that are relevant to our audit of the consolidated accountsin Belgium, including the requirements related to independence.

We have obtained from the board of directors and Company officials the explanations andinformation necessary for performing our audit.

We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of mostsignificance in our audit of the consolidated accounts of the current period. These matterswere addressed in the context of our audit of the consolidated accounts as a whole, andin forming our opinion thereon, and we do not provide a separate opinion on these matters.

Annual goodwill impairment test

Description of the Key Audit Matter

The assets side of the consolidated financial statements of EconocomGroup as at 31 December 2020 show an amount of EUR 499.5 millionfor goodwill to be tested annually for impairment as requiredby International Financial Reporting Standards (see note 9 ofthe consolidated accounts).

We considered these impairment tests as a key audit matter becausegoodwill accounts for 19% of total assets as at 31 December 2020 andbecause its recoverable amount as determined by the Board of Directorsis based on assumptions related to, among other elements, the businessplan (sales, profit margin, working capital needs), the cash flow growthratio beyond the forecast period, and the cash flow discount rate.



How our Audit addressed the Key Audit Matter

We received the goodwill impairment tests from Econocom Group and wechallenged the reasonableness of the method and key assumptions used.

In the performance of the above procedures, we relied on our in-houseexperts of the Valuation practice group. We compared the assumptionswith market assumptions and with economic forecasts includingthe COVID-19 impact (among other things). We also reviewed EconocomGroup’s strategic plan development procedure. In addition, we receivedand reviewed the sensitivity analyses to determine the impact of possiblechanges in key assumptions, and we performed our own independentsensitivity analysis to quantify the negative impact on management’smodels that would result in depreciation. We particularly focused on thereclassifications of goodwill related to the assets held-for-sale fordiscontinued operations. We also analysed the reasonableness of thediscounted future cash flow forecasts by comparing them with theGroup’s market capitalisation.

Residual interest in leased assets

Description of the Key Audit Matter

The residual interest in leased assets as at 31 December 2020 (see note 11 ofthe consolidated accounts) amount to EUR 175.2 million, i.e.EUR 40.9 million in current assets and EUR 134.3 million in non-currentassets. Overall, residual interests as at 31 December 2019 account for 3% ofthe historic acquisition value of the portfolio of assets leased outby Econocom Group.

These residual interests agree with the start-of-lease forecast ofthe end-of-lease market value of the assets. The carrying amount of theseassets depends on various calculation methods and on whetherit concerns fixed-term contracts or renewable contracts ("TRO"). In eithercase, the carrying amount of the assets depends on assumptions basedon historic statistics on the end-of-lease realisation value of the assetsdisposed of, but also on discount rate assumptions as regards thefixed-term contracts. The Group regularly updates these assumptions onthe basis of its experience with resale or sublease markets forsecond-hand materials. We considered the residual interest in leasedassets as a key audit matter because these estimates impact the timingof recognition of such contracts, on the one hand, and there is a risk ofdepreciation if the forecast figures would prove to exceed fair marketvalues.



How our Audit addressed the Key Audit Matter

We obtained the key estimates of the residual interest in leased assets aswell as of the year-over-year changes in hypotheses.

We critically evaluated the procedure put in place by Econocom Groupmanagement for proper application to the above estimates andwe checked, on a sample basis, the system for correct contract datainput. Subsequently, using management’s assumptions, we recalculatedfor a selected sample the value of the residual interest in leased assets.Finally, we ascertained that the margins realised on the end-of-leasedisposal of the assets were positive. We found these assumptions to beconsistent and in line with our expectations.

Responsibilities of the board of directors for the preparation of the consolidatedaccounts

The board of directors is responsible for the preparation of consolidated accounts that give atrue and fair view in accordance with International Financial Reporting Standards asadopted by the European Union and with the legal and regulatory requirements applicablein Belgium, and for such internal control as the board of directors determines as necessaryto enable the preparation of consolidated accounts that are free from materialmisstatement, whether due to fraud or error.

In preparing the consolidated accounts, the board of directors is responsible for assessingthe Group’s ability to continue as a going concern, disclosing, as applicable, matters relatedto going concern and using the going concern basis of accounting unless the boardof directors either intends to liquidate the Group or to cease operations, or has no realisticalternative but to do so.

Statutory auditor’s responsibilities for the audit of the consolidated accounts

Our objectives are to obtain reasonable assurance about whether the consolidated accountsas a whole are free from material misstatement, whether due to fraud or error, and to issuean auditor’s report that includes our opinion. Reasonable assurance is a high level ofassurance but is not a guarantee that an audit conducted in accordance with ISAs will alwaysdetect a material misstatement when it exists. Misstatements can arise from fraud or errorand are considered material if, individually or in the aggregate, they could reasonably beexpected to influence the economic decisions of users taken on the basis of theseconsolidated accounts.

In performing our audit, we comply with the legal, regulatory and normative frameworkapplicable to the audit of the consolidated accounts in Belgium. A statutory audit does notprovide any assurance as to the Group’s future viability nor as to the efficiency oreffectiveness of the board of directors’ current or future business management at Grouplevel. Our responsibilities in respect of the use of the going concern basis of accounting bythe board of directors are described below.



As part of an audit in accordance with ISAs, we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

identify and assess the risks of material misstatement of the consolidated accounts,•whether due to fraud or error, design and perform audit procedures responsive to thoserisks, and obtain audit evidence that is sufficient and appropriate to provide a basis for ouropinion. The risk of not detecting a material misstatement resulting from fraud is higherthan for one resulting from error, as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override of internal control;

obtain an understanding of internal control relevant to the audit in order to design audit•procedures that are appropriate in the circumstances, but not for the purpose of expressingan opinion on the effectiveness of the Group’s internal control;

evaluate the appropriateness of accounting policies used and the reasonableness•of accounting estimates and related disclosures made by the board of directors;

conclude on the appropriateness of the board of directors’ use of the going concern basis of•accounting and, based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the Group’s ability to continueas a going concern. If we conclude that a material uncertainty exists, we are required to drawattention in our statutory auditor’s report to the related disclosures in the consolidated accountsor, if such disclosures are inadequate, to modify our opinion. Our conclusions are based onthe audit evidence obtained up to the date of our report. However, future events or conditionsmay cause the Group to cease to continue as a going concern;

evaluate the overall presentation, structure and content of the consolidated accounts,•including the disclosures, and whether the consolidated accounts represent the underlyingtransactions and events in a manner that achieves fair presentation;

obtain sufficient and appropriate audit evidence regarding the financial information of the•entities or business activities within the Group to express an opinion on the consolidatedfinancial statements. We are responsible for the direction, supervision and performance ofthe Group audit. We remain solely responsible for our audit opinion.

We communicate with the Audit Committee regarding, among other matters, the plannedscope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with relevantethical requirements regarding independence, and to communicate with them all relationshipsand other matters that may reasonably be thought to bear on our independence, and whereapplicable, related safeguards.

From the matters communicated with the Audit Committee, we determine those mattersthat were of most significance in the audit of the consolidated accounts of the current periodand are therefore the key audit matters. We describe these matters in our auditor’s reportunless law or regulation precludes public disclosure about the matter.



Other legal and regulatory requirements

Responsibilities of the board of directors

The Board of Directors is responsible for the preparation and the content of the directors’report on the consolidated accounts, of the separate report on non-financial information andthe other information included in the annual report on the consolidated accounts.

Statutory auditor’s responsibilities

In the context of our mission and in accordance with the Belgian standard which iscomplementary to the International Standards on Auditing (ISAs) as applicable in Belgium,our responsibility is to verify, in all material respects, the directors’ report on the consolidatedaccounts, the separate report on non-financial information, and the other informationincluded in the annual report on the consolidated accounts, and to report on these matters.

Aspects related to the directors’ report on the consolidated accounts and to the otherinformation included in the annual report on the consolidated accounts

In our opinion, after having performed specific procedures in relation to the directors’ report onthe consolidated accounts, this directors’ report is consistent with the consolidated accountsfor the year under audit and is prepared in accordance with article 3:32 of the Companies’ andAssociations’ Code.

In the context of our audit of the consolidated accounts, we are also responsible for considering,in particular based on the knowledge acquired resulting from the audit, whether the directors’report on the consolidated accounts and the other information contained in the annual reporton the consolidated accounts, namely chapters 1 to 4, 7 and 9 to 11, is materially misstatedor contains information which is inadequately disclosed or otherwise misleading. In light of theprocedures we have performed, there are no material misstatements we have to report to you.

The non-financial information is included in a separate report of the directors’ report which ispart of section 3 of the annual report. The report of non-financial information containsthe information required by virtue of article 3:32, §2 of the Companies’ and Associations’ Code,and agrees with the consolidated accounts for the same year. The Company has prepared thenon-financial information, based on the principles of the United Nations Global Compact.However, in accordance with article 3:80, §1, 5° of the Companies’ and Associations’ Code,we do not express an opinion as to whether the non-financial information has been prepared inaccordance with the principles of the United Nations Global Compact as disclosedin the separate report of the directors’ report.



Statements related to independence

Our registered audit firm and our network did not provide services which are incompatible•with the statutory audit of the consolidated accounts and our registered audit firm remainedindependent of the Group in the course of our mandate.

The fees for additional services which are compatible with the statutory audit of•the consolidated accounts referred to in article 3:65 of the Companies’ and Associations’ Codeare correctly disclosed and itemized in the notes to the consolidated accounts.

Other statement

This report is consistent with the additional report to the Audit Committee referred to•in article 11 of the Regulation (EU) N° 537/2014.

Sint-Stevens-Woluwe, 26 March 2021

The statutory auditor

PwC Réviseurs d’Entreprises SRL / Bedrijfsrevisoren BV

Represented by

Alexis Van Bavel

Réviseur d’Entreprises / Bedrijfsrevisor


09chairman’s statement


09 chairman’s statementchairman’s statement

chairman’s statement

We hereby declare that, to the best of our knowledge, the consolidated financial statements forthe year ended 31 December 2020, prepared in accordance with the International Financialreporting Standards (IFRS) as adopted in the European Union, and with the legal requirementsapplicable in Belgium, give a true and fair view of the assets, financial position and profit or lossof the Company and the undertakings in the consolidation taken as a whole, and that theManagement Report includes a fair review of the performance of the business and the profit orloss and financial position of the Company and the undertakings in the consolidation taken asa whole, together with a description of the main risks and uncertainties.

24 February 2021

On behalf of the Board of Directors

Jean-Louis Bouchard

Chairman of the Board


10condensed parent company financial statements*

Parent company statement 1.of financial position 288

Parent company income 2.statement 290

Parent company statement 3.of cash flows 292

ECONOCOM GROUP SE PARENT STATUTORY FINANCIAL STATEMENTSIn accordance with article 3:17 of the Belgian Companies Code, Econocom Group SE hereby states thatthe following financial statements are an abridged version of the full annual financial statements that can beobtained from the Company and which will be filed with the Banque Nationale de Belgique.

* The parent company financial statements are prepared in accordance with Belgian GAAP.


10 états financiers non consolidés simplifiésparent company statement of financial position

Parent company statement 1.of financial positionAsset

in € thousands 31 Dec. 2020 31 Dec. 2019

Start-up costs 805 1,348

Fixed assets 1,041,600 1,022,008

Intangible assets - -

Property, plant and equipment 1 5

Plant and equipment, fixtures and fittings 1 5

Long-term financial assets 1,041,599 1,022,004

Related parties 1,025,998 1,006,571

Equity interests 841,198 756,271

Receivables 194,800 250,300

Entities with which there are capital links 485 485

Equity interests 485 485

Receivables -

Other long-term financial assets 15,116 14,948

Shares 11,408 11,130

Receivables and cash guarantees 3,708 3,818

Current assets 32,058 70,386

Non-current receivables - -

Trade receivables

Other receivables

Inventories and work-in-progress - -

Current receivables 7,007 12,612

Trade receivables 4,854 6,548

Other receivables 2,153 6,064

Cash investments 22,966 57,050

Treasury shares 22,966 57,050

Other investments

Cash and cash equivalents 1,853 435

Accrual accounts 232 288

Total assets 1,074,463 1,093,743


10états financiers non consolidés simplifiésparent company statement of financial position

Liabilities


Equity 276,923 348,966

Share capital 23,513 23,513

Paid-in capital 23,513 23,513

Uncalled capital

Issue premiums 194,708 194,708

Revaluation gain 2,520 2,520

Reserves 25,735 59,819

Statutory reserve 2,351 2,351

Unavailable reserves 22,966 57,050

For treasury shares 22,966 57,050

Available reserves 418 418

Retained earnings (+)/(-) 17,137 87,552

Profit for the year 13,310 (19,146)

Provisions and deferred taxes 5,501 1,921

Provisions for contingencies and losses 5,501 1,921

Other contingencies and losses 5,501 1,921

Deferred taxes

Payables 792,039 742,856

Non-current liabilities 250,388 394,630

Financial liabilities 250,388 394,630

Unsubordinated bonds 250,388 394,630

Trade payables

Prepayments received on orders

Other non-current liabilities

Current liabilities 541,651 348,226

Current portion of non-current liabilities 139,034 48,146

Financial liabilities 119,000 278,500

Bank loans and borrowings 119,000 278,500

Trade payables 5,439 2,890

Trade payables 5,439 2,890

Accrued taxes and personnel costs (1,023) 1,254

Income tax expense 411 661

Compensation including payroll costs 611 593

Other non-current liabilities 277,155 17,436

Accrual accounts

Total equity and liabilities 1,074,463 1,093,742


10 états financiers non consolidés simplifiésparent company income statement

Parent company income 2.statementin € thousands 31 Dec. 2020 31 Dec. 2019

Sales and Services 17,990 27,098

Revenue 15,869 23,461

Changes in inventories of finished goods and work in progress: increase (decrease) (+)/(-)

In-house production of fixed assets

Other operating income 2,121 3,637

Non-recurring operating income - -

Cost of sales and Services 27,573 24,497

Materials and goods for resale

Services and miscellaneous goods 18,506 25,506

Personnel costs (including payroll costs) and pensions (+)/(-) 1,393 1,597

Amortisation/depreciation and impairment of start-up costs, property, plant and equipment and intangible assets 5 5

Additions to (reversals of) impairment of inventories, work-in-progress and trade receivables (+)(-) - -

Additions to (reversals of) provisions for contingencies and losses (+)(-) 2,484 (2,691)

Other operating expenses 27 80

Capitalised restructuring costs (-)

Non-recurring operating expenses 5,129

Operating income (9,620) 2,601

Financial income 49,042 38,884

Recurring financial income 35,649 32,245

Income from long-term financial assets 30,848 25,165

Income from current assets 103 1,922

Other financial income 4,698 5,158

Non-recurring financial income 13,393 6,639

Financial expenses 15,765 58,756

Recurring financial expenses 13,576 12,746

Cost of debt 13,094 12,157

Additions to (reversals of) impairment of current assets other than inventories, work-in-progress and trade receivables (+)/(-) - 150

Other financial expenses 482 439

Non-recurring financial expenses 12,189 46,010


10états financiers non consolidés simplifiésparent company income statement


Profit for the year before tax (+)/(-) 13,657 (17,271)

Withdrawal from deferred taxes

Transfer to deferred taxes

Income tax (+)/(-) 347 1,875

Income tax expense 347 2,231

Tax adjustments and reversals of tax-related provisions - (356)

Profit for the year 13,310 (19,146)

Deductions from tax-free reserves

Transfers to tax-free reserves

Profit for the year available for distribution (+)/(-) 13,310 (19,146)


Profit available for distribution (+)/(-) 81,716 82,766

Profit for the year available for distribution (+)/(-) 13,310 (19,146)

Retained earnings (+)/(-) 68,406 101,850

Deductions from equity - 9,593

from equity and issue premiums

from reserves - 9,593

Appropriations to equity 51,268 23,891

to equity and issue premiums

to the statutory reserve - 2

to other reserves 51,268 23,889

Appropriation to retained earnings (+)/(-) 30,448 68,406

Share of associates in losses

Profit available for distribution

Dividends

Directors or Managers

Employees

Other beneficiaries


10 états financiers non consolidés simplifiésparent company statement of cash flows

Parent company statement 3.of cash flowsin € thousands 31 Dec. 2020 31 Dec. 2019

Profit 13,310 (19,146)

Income tax expense - 633

Depreciation, amortisation and impairment 10,004 26,101

Impact of changes in provisions for other contingencies and losses 3,580 (2,691)

Gains/losses on disposal of long-term financial assets    

Dividends received from equity interests (25,000) (18,570)

Interest received on non-current financial receivables (5,813) (6,515)

Gains/losses on disposal of treasury shares 123 180

Cash flow from operating activities (a) (3,796) (20,008)

Change in current receivables 5,605 109,645

Change in other current assets 57 272

Change in trade payables 2,549 (3,054)

Change in accrued taxes and personnel costs (current portion) (232) (279)

Change in other current liabilities 269,719 14,140

Change in working capital requirements (b) 277,698 120,724

Income tax expense (c) - (633)

Net cash from (used in) operating activities (a + b + c) 273,902 100,083

Start-up costs    

Acquisition of property, plant and equipment and intangible assets for internal use - (2)

Disposal of property, plant and equipment and intangible assets for internal use    

Acquisition of equity interests (90,123) (101,824)

Disposal of equity interests 5,196 6,402

Acquisition of non-current financial receivables

Repayment of non-current financial receivables 45,500

Acquisition of other long-term financial assets (1,912) (7,636)

Disposal of other long-term financial assets 1,744 479

Dividends received from equity interests 25,000 18,570

Interest received on non-current financial receivables 5,813 6,515


10états financiers non consolidés simplifiésparent company statement of cash flows


Net cash from (used in) investing activities (d) (8,782) (77,496)

Euro Private Placement – issue costs 74 106

Euro Private Placement – financial expenses 2,028 2,632

Euro Private Placement – interest (2,632) (2,632)

Euro Private Placement – repayment (45,500) -

Schuldschein loans – issue costs 126 126

Schuldschein loans – financial expenses 2,781 2,781

Schuldschein – coupons (2,797) (2,797)

OCEANE – buyback (10,616)

OCEANE – issue costs 344 298

OCEANE – financial expenses 4,374 4,364

OCEANE – coupons (1,000) (1,000)

Commercial paper (159,500) 23,600

Acquisition of treasury shares (25,675) (28,371)

Disposal of treasury shares - 2,226

Dividends paid during the year/refund of additional paid-in capital (25,717) (27,265)

Change in other liabilities

Net cash from (used in) financing operations (e) (263,702) (25,932)

Change in cash and cash equivalents (a + b + c + d + e) 1,418 (3,345)

10 états financiers non consolidés simplifiés



11key consolidated figures


11 key consolidated figureskey consolidated figures

key consolidated figures

2013

Publishedin 2014

AR

2014Restated 2015

2016Adjusted

Publishedin 2017AR****

2018 2019 2020

Number of shares (at 31 December)

Ordinary 213,034,628 225,038,574 225,038,574 225,038,574 245,140,430 245,380,430 220,880,430

Total 213,034,628 225,038,574 225,038,574 225,038,574 245,140,430 245,380,430 220,880,430

Free float 48.44% 57.67% 53.82% 54.20% 57.86% 57.90% 53.6%

Average number of sharesoutstanding

191,880,800 219,876,782 217,017,790 215,443,595 232,763,830 227,816,144 216,865,774

Per share data (in €)

Net dividend (on ordinary shares)* 0.05 0.08 0.09 0.1 0.12 0.12 0.12

Gross dividend (on ordinary shares)* 0.06 0.08 0.09 0.1 0.12 0.12 0.12

Profit (loss) from continuing ordinary operations**

0.48 0.42 0.53 0.63 0.46 0.55 0.56

Pay-out(1) 0.15 0.26 0.17 0.67 0.71 0.61 0.55

Operating profit** 0.41 0.31 0.50 0.57 0.37 0.44 0.39

Profit before tax** 0.36 0.26 0.42 0.32 0.31 0.35 0.31

Profit for the period (attributable to owners of the parent)**

0.23 0.14 0.27 0.15 0.17 0.20 0.22

Cash flow from operating activities**

0.41 0.39 0.46 0.56 0.45 0.61 0.46

Equity attributable to owners of the parent***

1.22 1.16 1.02 0.89 2.0 1.97 2.14

Price/earnings(2) 18 23 16 45 17 12 11

Price/cash flow from operating activities(3)

10 8 9 12 6 4 5

Net yield(4) 1.08% 2.29% 2.05% 1.43% 4.1% 4.9% 4.9%

Gross yield(4) 1.44% 2.29% 2.05% 1.43% 4.1% 4.9% 4.9%


11key consolidated figureskey consolidated figures

2013

Publishedin 2014

AR

2014Restated 2015

2016Adjusted

Publishedin 2017AR****

2018 2019 2020

Stock market data (in €)

Average 3.10 3.55 3.85 5.69 3.70 3.01 2.18

At 31 December 4.16 3.28 4.275 6.97 2.91 2.43 2.46

High 4.18 4.58 4.49 7.17 7.3 4.01 2.88

Low 2.49 2.42 3.01 3.69 2.28 2.00 1.37

Annual yield at 31 December(5) 41% (19%) 33% 65% (49%) (12.3%) 6.0%

Annual volume (in units) 42,978,376 58,190,840 49,761,106 54,198,704 213,263,403 53,631,539 64,626,927

Average daily trading volume 169,876 228,200 194,380 210,888 836,327 210,320 254,437

Annual volume (value) (in € millions)

281 201 383 308 789 161 141

Market capitalization (31 Dec.) (in € millions)(6)

886 738 962 1,569 713 597 547

Listing market(7) TC TC TC TC TC TC TC

Salaried employees 8,195 8,587 9,134 10,008 10,813 10,323 9,240

Refund of issue premiums.*

Expressed as a ratio of the average number of shares outstanding.**

Expressed as a ratio of total shares.***

In the 2017 table, the number of shares is shown after the share split approved by the Extraordinary General****

Meeting of 16 May 2017.Payout rate: gross return/profit for the year attributable to owners of the parent before amortisation or reduction of(1)

goodwill.Share price at 31 December/profit for the year.(2)

Share price at 31 December/cash flows from operating activities before cost of net debt and income tax.(3)

Net (gross) yield/share price at 31 December.(4)

Annual yield = change in share price at 31 December relative to 31 December of the previous year plus net(5)

return/share price at 31 December of the previous year.Market capitalisation = total number of shares at 31 December x share price at 31 December.(6)

Listing market = Brussels from 9 June 1988. The share has been listed on the Marché à terme continu (TC) since(7)

16 March 2000.


11 KEY CONSOLIDATED FIGURES

Econocom group addressesThe Econocom BrandAustriaFranzosengraben 12A – 1030 ViennaTel.: +43 1 79520 [email protected]

BelgiumEconocom (registered office)Place du Champ de Mars, 5/ B141050 Brussels

Parc HorizonChaussee de Louvain 510/B801930 ZaventemTel.: +32 2 790 81 [email protected]

CanadaDemers Beaulne, LLP1800 McGill College Av.Suite 600Montreal Quebec H3A 3J6Tel. : +1 438 522 6079

Czech RepublicAnděl ParcRadlická 14 / 3201 – Smíchov150 00 Prague 5Tel.: +420 225 100 [email protected]

France11 square Léon Blum92800 PuteauxTel.: +33 1 41 67 30 [email protected]

21 Avenue DescartesImmeuble Astrale92350 Le Plessis-RobinsonTel.: +33 1 73 23 87 [email protected]

GermanyHerriotstr. 860528 Frankfurt am MainTel.: +49 69 [email protected]

Ireland3rd Floor IFSC HouseCustom House QuayDublin 1Tel.: +353 1 [email protected]

Italyc/o Econocom VillageVia Varesina 16220156 MilanTel.: +39 02 33 62 [email protected]

Luxembourg4 rue d’ArlonL-8399 WindhofTel.: +352 39 55 [email protected]

MoroccoTechnopolisBatiment B111100 Sala Al JadiaTel.: +212 5 38 04 33 [email protected]

1st floor, Residence Boissy322 Bd Zerktoun20270 CasablancaTel.: +212 (0) 522 789 [email protected]

PolandUlica Twarda 1800-105 WarsawTel.: +48 22 202 67 [email protected]

SpainC/ Cardenal Marcelo Spinola28016 MadridTel.: +34 91 411 91 [email protected]

C/ Pallars, 9908018, BarcelonaTel.: +34 93 470 30 [email protected]

SwitzerlandRoute de Crassier 71262 EysinsTel.: +41 22 363 79 [email protected]

The NetherlandsComputerweg 22NL-3542 DR UtrechtTel.: +31 30 63 58 [email protected]

UKEton House18/24 Paradise RoadRichmond-upon-ThamesSurrey TW9 1SETel.: +44 20 8940 [email protected]

US10 Rockefeller PlazaSuite 1001New York, NY, 10020Tel. : +1 438 522 [email protected]


11KEY CONSOLIDATED FIGURES

The Group’s other brandsBrasilEconocom BrasilAv. Sagitário, 138 - 24º andarTorre City – Alpha SquareOfficesAlphaville – SPCep : 06473-073Tel.: +55 11 [email protected]

FranceAlter Way1 Rue Royale, Batiment D227, Les Bureaux de la Colline92210 Saint-CloudTel.: +33 1 41 16 34 [email protected]

ASP Serveur785 Voie Antiope13600 La CiotatTel.: 0 805 360 [email protected]

DMS11 square Léon Blum92800 PuteauxTel.: +33 1 41 67 36 [email protected]

Exaprobe13 B Avenue Albert EinsteinCS9021769623 Villeurbanne CedexTel.: +33 4 72 69 99 [email protected]

Infeeny11 square Léon Blum92800 PuteauxTel.: +33 1 49 70 81 [email protected]

Synertrade66 Avenue Charles de Gaulle92200 Neuilly-sur-SeineTel.: +33 1 56 98 29 [email protected]

GermanyEnergy Net GmbHGutleutstraße 165-17160327 Francfort-sur-le-MainTel.: +49 69 [email protected]

ItalyAsystel Italiac/o Econocom Village, Via Varesina 162, 20156 MilanTel.: +39 02 38 084 [email protected]

BDFvia Bernardino Verro 9020141 MilanTel.: + 39 02 5220 061

Bizmaticac/o Econocom VillageVia Varesina 16220156 MilanTel.: +39 02 8312 [email protected]

LuxembourgSynertrade12 Rue Guillaume Schneider2522 LuxembourgTel.: +352 09 29 27 [email protected]

SpainAltaboxC/Arquimedes, 65533211 Gijón, AsturiasTel.: +34 902 43 00 [email protected]

GigigoC / Cardenal Marcelo Spínola 28016 MadridTel.: +34 91 411 91 20 [email protected]

NexicaC/ Acer, 30-32, 1r 4a08038 BarcelonaTel.: + 34 902 202 [email protected]

UKJTRS LtdSuite 1B Eden Point Three Acres Lane Cheadle Hulme Cheshire SK8 6RLTel.: 0330 223 0500 [email protected]

Helis6 Rue Royale75008 ParisTel.: +33 1 53 20 05 [email protected]

See the complete list of our regional addresses on www.econocom.com

11 key consolidated figures


Econocom Communications Department

11 Square Léon Blum 92800 PUTEAUX

FRANCE

email: [email protected]

March 2021

econocom rapport annuel 2020

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