Econocom - 2020 annual report

06 consolidated financial statements

notes to the consolidated financial statements

The 4-year business plan was determined preceding the start of the budget period. based on the expected growth of markets Thesemargins also take account of expected for the CGU concerned, taking account of efficiency gains as well as events known to growth levers identified by Management. management and that could impact the Margins are determined based on the profitability ofthe activity. historical margins observed in the years 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 € millions

Discount rate Perpetual growth rate +1.0% (1.0%) +0.5% (0.5%)

(5%)

Technology Management & Financing

(19.5)

34.7

16.5 (14.4)

(42.2)

(86.7)

116.0 40.2 (34.8)

(120.4)

Digital Services & Solutions

The sensitivity of impairment tests to adverse but feasible changes in assump- tions 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 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 book value; reasonable sensitivity to the business plan: • a 5% reduction in the revenue forecast containedin the businessplan, 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 book value.

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2020 annual report