Econocom - 2019 Universal registration document

06 consolidated financial statements

notes to the consolidated financial statements

CREDIT AND COUNTERPARTY 19.2.5. RISK The Group has no significant exposure to credit risk. It has policies in place to ensure that sales of goods and services are made to clients with an appropriate credit history. The Group’s exposure is also limited as it does not have any concentration of credit risk and uses factoring solutions for the Distribution and Services businesses, as well as non-recourse refinancing with bank subsidiaries and credit insurance in the Technology Management & Financing business. For its Technology Management & Financing business, the Group nevertheless has the option of retaining the credit risk on certain strategic transactions; lease contracts on which Econocom bears

the counterparty risk represent less than 10% of outstanding rentals in the TMF business. The Group decided to concentrate its strategic transactions bearing credit risk within its subsidiary Econocom Digital Finance Limited to ensure a consistent risk management with investment-grade counterparties, thus limiting its credit risk exposure. Maximum credit risk exposure As the Group has no credit derivatives or continuing significant involvement in the transferred assets, its maximum exposure in this respect is equal to the carrying amount of its financial assets (see note ژ 13.1). approach. The Group only invests

Aged balance of receivables past due but not impaired

Receivables not past due

Carrying amount

Breakdown by maturity

2019 in € millions

Between 60 and 90 days

Less than 60 days

Over 90 days

Total

Trade receivables – refinancing institutions, gross

98.3

46.9

51.4

31.5

13.4

6.5

966.0

744.0 222.3

78.5

23.3 120.4

Other receivables, gross

Impairment of doubtful receivables

(63.9)

(12.9)

(51.1)

(0.1)

(0,1)

(51,0)

Trade and other receivables, net

1,000,4

778.1

222.5 110.0 36.6 75.9

EQUITY RISK 19.2.6. The Group does not hold any unlisted or listed shares apart from treasury shares.

As the treasury shares held by Econocom Group at 31 ژ December 2019 are deducted from shareholders’ equity in the consolidated financial statements as of their acquisition, it is not necessary to compare their carrying amount to their actual market value.

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2019 annual report