Econocom - 2020 annual report

06 consolidated financial statements

notes to the consolidated financial statements

CREDIT AND COUNTERPARTY RISK 19.2.5. The Group has no significant exposure to outstanding rentals in the TMF business. credit risk. It has policies in place to ensure The Group decided to concentrate its that sales of goods and services are made to strategic transactions bearing credit risk customerswith an appropriatecredit history. within its subsidiary Econocom Digital The Group’s exposure is also limited as it Finance Limited to ensure a consistent risk does not have any concentration of credit managementapproach.

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

The Group only invests 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 maximumexposure in this respect is equal to the book value of its financial assets (see note 13.1).

Aged balance of past due receivables

Receivables not past due

Book value

Breakdown by maturity

2020 in € millions

Between 60 and 90 days

Over 90 days

Total Less than 60 days

Trade receivables – refinancing institutions, gross

53.9

41.4

12.5

8.3

0.7

3.5

Other receivables, gross

830.1

660.2

169.9

59.8

6.0 104.1

Impairment of doubtful receivables

(70.8)

(16.9)

(53.9)

(0.5)

(0.2)

(53.2)

Trade and other receivables, net

813.2

684.7 128.5

67.6

6.4 54.4

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

As the treasury shares held by Econocom group at 31 December 2020 are deducted from shareholders’equity in the consolidated financial statementsas of their acquisition, it is not necessaryto compare their book value to their actualmarket value.

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2020 annual report