Elis

Adjustment of certain elements of the Management Board’s compensation - Seite 3

• The quantitative targets (accounting for 70% of variable compensation) based on financial indicators would be set, no longer on the basis of the budget preapproved by the Supervisory Board, but on the basis of new financial projections established on June 30, 2020 by the Board, taking into account the impact of the health crisis (in terms of client business volumes and changes in the main exchange rates) on the Group’s theoretical trajectory
• The nature (i.e., revenue, EBIT and operating cash flow) of the quantitative performance criteria would remain unchanged
• On the other hand, the weighting of these criteria would be significantly reduced to take into account the context of the health crisis: no variable portion would be paid for the first half of the year and, for the second half of the year, the rate of achievement of the revenue and EBIT criteria would be capped at 100%. Consequently, the maximum amount allocated would be divided by three compared to 2019

In the end, the Supervisory Board, at its meeting on March 8, 2021, considered that the Group’s performance during the crisis proved to be of very high quality, well above the expectations discussed on June 30, and above the benchmark for European service companies:

Revenue totaled €2,806 million, down 13,3%, strongly impacted by negative customer activity (down approx. 16%). Over the whole year, Hore customers’ activity (irrespective of price, business development and exchange rate effects) is down 55% due to health restrictions. ICS customers’ activity is down 5%, while that of Healthcare customers is slightly negative.

The Board acknowledged the excellent work carried out by the teams on the part that depended on them:

• highly responsive development of new offers adapted to the context, whether in professional clothing for the ICS, blockwear or waterproof over-blouses for Healthcare, hand-hygiene offers, disinfection… permanently or temporarily (temporary hospitals in the UK, waterproof over-blouses in Brazil…)
• quality of service maintained during the crisis, which improved customer retention and led to some commercial successes

The same applies to cost control, where the Board noted: