Esker : Annual Report

UNIVERSAL REGISTRATION DOCUMENT

2021

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The original French version of this Universal Registration Document was filed on May 19, 2022 with the AMF (Autorité des Marché Financiers), the French financial market regulator, as the competent authority under regulation (UE) 2017/1129, without prior approval pursuant to Article 9 of said regulation.

The original French version of Universal Registration Document may be used for the purposes of an offer to the public of securities or admission of financial securities to trading on a regulated market if it is supplemented by a securities note and, if applicable, a summary together with any amendments to the Universal Registration Document.

The whole has been approved by the AMF in accordance with Regulation (EU) 2017/1129.

Copies of the original French language version of the universal registration document filed with the AMF are available to all persons submitting a request to the Company's registered office.

It can also be consulted at Esker's website along with the English translation of this document: https://www.esker.com investors

In accordance with Article 19 of European Regulation (EU) 2017/1129, the following information shall be incorporated by reference in this universal registration document:

• The Group's consolidated financial statements and the auditors' report thereon for the period ended December 31, 2020 as presented on pages 100 to 120 and the separate parent company financial statements of the Company and the Auditors' report on the annual financial statements for the fiscal year ended December 31, 2020 as presented on pages 123 to 138 of the original French language version of the universal registration document filed with the AMF on
  May 12, 2021 (No. D.20-0457)
• The Group's consolidated financial statements and the auditors' report thereon for the period ended December 31, "2019" as presented on pages 71 to 87 and the separate parent company financial statements of the Company and the Auditors' report on the annual financial statements for the fiscal year ended
  December 31, 2019 as presented on pages 91 to 104 of the original French language version of the universal registration document filed with the AMF on
  May 26, 2020 (No. D.20-0497)

The information included in these two universal registration documents other than the items mentioned above has been, as applicable, replaced and/or updated by the information included in this universal registration document.

The two universal registration documents referred to above may also be consulted at the Company's website: https://www.esker.com/investors

This document is a free translation of selected sections of the original French version of the Universal Registration Document (Document d'Enregistrement Universel) filed on May 16, 2022 with the AMF (Autorité des Marché Financiers), the French financial market regulator, as the competent authority under regulation (EU) 2017/1129.

The English version of this document has not been audited by our Statutory Auditors and the English translations of their reports included herein are provided for information only.

In the event of any ambiguity or conflict between corresponding statements or other items contained in these documents and the original French version, the relevant statement or item of the French version shall prevail and only the original version of the document in French is legally binding. As such, this translation may not be relied upon to sustain any legal claim, nor be used as the basis of any legal opinion and Esker SA expressly disclaims all liability for any inaccuracy herein.

4	1. PRESENTATION OF THE GROUP AND ITS BUSINESS

TABLE OF CONTENTS

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	PRESENTATION OF THE GROUP AND ITS BUSINESS.....................................................	6
	1.1. Financial highlights.......................................................................................................................	7
	1.2. History and milestones................................................................................................................	8
1	 1.2.1. Statutory information on Esker S.A.............................................................................	8
	 1.2.2. History of the Group.......................................................................................................	8
	 1.2.3. Organizational structure..............................................................................................	10
	1.3. Analysis of the Group's financial position and business.....................................................	11
	 1.3.1. Analysis of Group revenue...........................................................................................	11
	 1.3.2. Research and development, patents and licenses.................................................	13
	 1.3.3. Investments....................................................................................................................	14
	 1.3.4. Property, plants and equipment.................................................................................	15
	1.4. Management discussion and analysis....................................................................................	16
	 1.4.1. Overview of the Company's activities.......................................................................	16
	 1.4.2. Material contracts.........................................................................................................	23
	 1.4.3. Financial position of the Group..................................................................................	23
	 1.4.4. Business trends, outlook and significant post-closing events.............................	24
	 1.4.5. Capital resources..........................................................................................................	24
	 1.4.6. Proposal for the appropriation of net profit to the Shareholder Meeting...........	25
	 1.4.7. Information on dividends.............................................................................................	25

	CORPORATE GOVERNANCE........................................................................................	26
	2.1. Corporate governance bodies...................................................................................................	27
	 2.1.1. Presentation of the supervisory bodies....................................................................	27
2	 2.1.2. Practices of corporate governance bodies and conflicts of interest..................	28
	 2.1.3. Management team.......................................................................................................	29
	2.2. Composition, conditions of preparation and organization of
	the work of the Supervisory Board...........................................................................................	31
	 2.2.1. General organization and constitution of the administrative and
	supervisory bodies.....................................................................................................................	31
	 2.2.2. Information on the members of the Supervisory Board whose
	appointment is proposed by the Combined Shareholder Meeting of June 15, 2022....	32
	 2.2.3. Preparation and organization of work......................................................................	32
	 2.2.4. Adoption of the Middlenext Corporate Governance Code....................................	33
	2.3. Compensation of corporate officers.......................................................................................	34
	2.4. Statutory Auditors' special report on regulated agreements..............................................	38
	2.5. Five-year summary of changes in the share capital.............................................................	39
	2.6. Major shareholders.....................................................................................................................	40
	2.7. Memorandum of Incorporation and Articles of Association..............................................	40
	2.8. Information about any capital which is under option...........................................................	41

1. PRESENTATION OF THE GROUP AND ITS BUSINESS

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3	NON-FINANCIAL STATEMENT (NFS)........................................................................	44
1.	Ethical and responsible conduct..................................................................................................	66
2.	Building customer trust.................................................................................................................	74
3.	Recognizing the value of human capital....................................................................................	78
	4.	Supporting the transition to a low-carbon economy...............................................................	88
	Report details.......................................................................................................................................	95
	NFS statement..................................................................................................................................	115

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RISKS MANAGEMENT.............................................................................................	118
4.1. Technological risks..................................................................................................................	119
 4.1.1. Risks relating to a malfunction of the production platform..............................	119
 4.1.2. Risk relating to the malicious penetration of our servers..................................	119
4.2. Risks relating to the market in which the Group operates...............................................	120
 4.2.1. Loss of competitiveness..........................................................................................	120
 4.2.2. Dependency on third parties....................................................................................	120
4.3. Legal and regulatory risks ......................................................................................................	120
4.4. Human resources risks...........................................................................................................	120
4.5. Financial risks...........................................................................................................................	121
4.6. Insurance and risk management..........................................................................................	122
CONSOLIDATED FINANCIAL STATEMENTS ...........................................................	124
5.1. Consolidated financial statements for the year ended December 31, 2021................	125
5.2. Statutory auditors' report on the consolidated financial statements............................	144

SEPARATE FINANCIAL STATEMENTS....................................................................	148
6.1. Separate financial statements for the period ended December 31, 2021....................	149
6.2 Auditors' report on the separate parent Company financial statements.......................	162

ADDITIONAL INFORMATION...................................................................................	166
7.1. Responsibility for the French version of the universal registration document.............	167
7.2. Statutory auditors.....................................................................................................................	167
7.3. Documents on display.............................................................................................................	168
7.4. Information on holdings..........................................................................................................	168
7.5. Table of concordance with the Commission Delegated Regulation
(EU) 2019/980 of March 14, 2019.........................................................................................	168
7.6. Table of concordance of the management report.............................................................	171
7.7. Table of concordance with the report on corporate governance....................................	171
7.8. Table and concordancewith the information required in the
Non-Financial Statement (NFS).............................................................................................	172
Appendix 1. Calendar of publications and other financial events of
Esker Group in 2021........................................................................................................................	174
Appendix 2. Glossary.......................................................................................................................	174