Econocom - 2019 Universal registration document

06 consolidated financial statements

notes to the consolidated financial statements

Off-balance sheet commitments 20. Commitments 20.1. received as a result of acquisitions 20.3. Bank covenant Only one covenant exists for the Euro PP private placement bond and the

Schuldschein notes (private placement under German law). A breach would not result in early redemption; rather, it would force the Group to pay a higher interest rate until the ratio is brought back within the relevant bounds. It is calculated as of 31 ژ December of each ژ year, and corresponds to the ratio of net debt to proforma EBITDA. It may not exceed 3x over two consecutive ژ years. At 31 ژ December 2019, this covenant was respected.

Vendors warranties in connection with acquisitions carried out in prior years were non-significant. 20.2. Commitments given in respect of disposals For the disposals which took place in 2019 the vendor warranties granted by the group were not material.

20.4. Garantee commitments

Total guarantees given – 2019

in € ڳ millions

Guarantees given by Econocom to banks for securing credit lines and borrowings (1)

350.0

Guarantees given by Econocom to refinancing institutions to cover certain operational risks, residual financial values, and invoice and payment mandates granted to Econocom (2)

273.7

Guarantees given to clients for the Group’s sales activities and guarantees given to suppliers

121.3

Total guarantees given

ژ 745.0

Including €56.5 million recognised in financial liabilities. The guarantees relating to financing lines not yet drawn (1) at 31 ژ December 2019 totalled €293.5 million and €227.2 million at 31 ژ December 2018. Including €211.0 million refinanced at 31 ژ December 2019, including €90.3 million in the statement of financial (2) position relating to liabilities under finance leases with recourse. The amount of guarantees given to refinancers and not refinanced at 31 ژ December 2019 was €62.7 million compared with €24.2 million at 31 ژ December 2018.

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2019 annual report