Econocom - 2019 Universal registration document

04 risk factors financial risk

LIQUIDITY RISK 4.1.3. The Finance Department is responsible for ensuring that the Group has a constant flow of sufficient funding: by analysing and updating cash flow • forecasts on a monthly basis for all of the Group's companies; by negotiating and maintaining sufficient • outstanding lines of financing; by optimising the Group’s cash pooling • system in order to offset cash surpluses and internal cash requirements. In 2019, Econocom continued to optimise its diversified sources of financing with the aim of (i) reducing borrowing costs, (ii) extending the maturities of its borrowings and (iii) bank disintermediation. In order to meet its short-term financing requirements, the Group now has new bank credit facilities with longer maturities. The Group mainly uses its commercial paper programme, capped at €450 ژ million and with maturities of up to two years, of which €279 ژ million was outstanding at 31 ژ December 2019. At that date, Econocom had €263 ژ million in bilateral bank credit facilities of which €150 ژ million committed. Econocom also has €110 ژ million in bilateral bank loans to finance its leases at rates that remain fixed for the duration of the loans. To finance its development, Econocom issued: in May ژ 2015, a private placement on the • Alternext market for €101 ژ million, broken

down into two tranches: €45.5 ژ million maturing at five years and paying interest at 2.364%, and €55.5 ژ million maturing at seven years and paying interest of 2.804%; in December ژ 2016, a Schuldschein bond • (German private placement) for a total amount of €150 ژ million, with tranches maturing at five and seven years and paying interest at an average rate of 1.54%; in March ژ 2018, the Group issued bonds • convertible into new shares and/or exchangeable for existing shares (OCEANE). The issue was for a total of €200 ژ million, maturing in 2023. The Group intends to continue its policy of diversifying its sources of financing in order to optimise its borrowing costs and further reinforce its financial independence. In addition to redeeming/renewing commercial paper, €45.5 million for the EuroPP will mature in 2020. Credit and 4.2. counterparty risk The Group has policies in place to ensure that goods and services are sold to clients whose credit standing has been analysed in depth. The Group’s credit risk exposure is also limited as it does not have any concentration of credit risk and uses factoring solutions for the Products & Solutions and Services businesses, as well as non-recourse refinancing with bank subsidiaries and credit insurance in the Technology Management & Financing business.

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2019 annual report