Econocom - 2020 annual report

04 risk factors

dependency risk

the financial statements. However, this impact is limited on account ofthe provisionsrecognised. Risks associated with 2.3. regulations applicable to lessors’ leasing businesses Certain countries have decided to implement stricter legislation for leasing companies by aligning it with the legislation governing financial institutions. The associated risk, which is common to all companies in the industry, concerns the increase in administrative costs. Risks associated with 2.4. regulations applicable to Technology Management & Financing clients The new IFRS standard applicable to lease agreements, IFRS 16, published in January 2016,entered into force on 1 January 2019. Under this new accounting standard, “lease liabilities” are presented on the Company’s statement of financial position Dependency risk 3. Dependence on 3.1. refinancing institutions In the course of its business, Econocom assigns most of its finance lease contracts to refinancing institutions. These institutions generally focus on clearly-defined geographical areas or types of equipment. In addition, the Group strives to maintain a balanced portfolio of institutions in order to avoid being overdependent onone or more institutions. Group’s consolidated

under liabilities, with the exception of small items with an insignificantunit value. As anticipated, the impact of this new standard for the TechnologyManagement & Financing business was limited due to the added value brought by the Group in its leases: upgrade management via leasing and in • particular the Group’s scalableofferings; asset management and expense • management provided by Econocom’s solutions (inventory tracking, telephone usage management, IT outsourcing for small and medium businesses, etc.), which give our clients optimal visibility and more effective management of their assets; better economic management of • end-of-life assets; management of end-of-life assets in • greater compliance with sustainable development commitments; smart and connected object (IoT) • management capabilities. In 2020, the proportion of the Group’s five biggest funders was accounted for 69% of the total value of refinanced rents. The Group’s main funder in 2020 represented 29% of the total value of refinanced rents. Customer 3.2. dependency risk The Group continually strives to expand its client portfolio. This is a strategic development focus area aimed at gaining market shares. At 31 December 2020, no single client represented over 5% of the Group’s consolidatedrevenue.

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2020 annual report

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