Econocom - 2020 annual report

06 consolidated financial statements

notes to the consolidated financial statements

Off-balance sheet commitments 20. Commitments 20.1. received as a result of acquisitions

Bank covenant 20.3. Only one covenant exists for the Euro PP private placement loan 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 December of each year, and corresponds to the ratio of net debt to proforma EBITDA. It may not exceed 3 over two consecutive years. At 31 December 2020, this covenant was respected.

Vendors warranties in connection with acquisitions carried out in prior years were non-significant. Commitments given 20.2. in respect of disposals For the disposals which took place in 2019 and 2020, the vendor warranties granted by the group were not material.

Guarantee commitments 20.4.

Total guarantees given – 2020

in € millions

Guarantees given by Econocom to banks for securing credit lines and borrowings (1) Guarantees given by Econocom to refinancing institutions to cover certain operational risks, residual financial values, and invoice and payment mandates granted to Econocom (2) Guarantees given to customers for the Group’s sales activities and guarantees given to suppliers

351.1

291.3

121.8

Total guarantees given 764.2 Including €55.5 million recognised in financial liabilities. The guarantees relating to financing lines not yet drawn (1) at 31 December 2020 totalled €295.7 million and €293.5 million at 31 December 2019. Including €226.7 million refinanced at 31 December 2020, including €76.2 million in the balance sheet relating to (2) liabilities under finance leases with recourse. The amount of guarantees given to refinancers and not refinanced at 31 December 2020 was €64.6 million compared with €62.7 million at 31 December 2019.

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2020 annual report