Econocom - 2019 Universal registration document

06 consolidated financial statements

notes to the consolidated financial statements

Sensitivity to changes in assumptions The table below shows the sensitivity of enterprise values to the assumptions used:

Sensitivity to rates

Sensitivity to cash flows

in € ڳ millions

Discount rate Perpetual growth rate

+1.0% (1.0%)

+0.5% (0.5%)

(5%)

Technology Management & Financing

(33)

59

28

(25)

(22)

Digital Services & Solutions

(80)

107

37

32

(81)

The sensitivity of impairment tests to adverse but feasible changes in assumptions is set out below: reasonable sensitivity to changes in the • discount rate: a simulated increase of up to one percentage point in the discount rate used would not change the findings of the Group’s analysis; reasonable sensitivity to changes in the • long-term growth rate: in a pessimistic scenario where the long-term growth rate is reduced by 0.5 percentage points, the

value in use of each CGU would still exceed its carrying amount; reasonable sensitivity to changes in the • business plan: a 5% reduction in the revenue forecast contained in the business plan, with variable costs adjusted accordingly, would not change the conclusions of the Group’s analysis. Consequently, none of the sensitivity tests reduced the value in use of any of the CGUs to below their carrying amount.

194

2019 annual report