Econocom - 2020 annual report

06 consolidated financial statements

notes to the consolidated financial statements

Information on 21.2. the transfer of assets – Assets not derecognised in full Assignment of trade receivables

a portion of its trade receivables throughout the year to factoring companies. At 31 December 2020, the Company had an amount of €275.3 million with factoring companies, resulting in non-recourse financing of €222.3 million. The unfinanced amount of €45.5 million is recognised in

For the purpose of optimising its cash non-current financial assets and other management for its Digital, Services & receivables,and correspondsto unassignable Solutions businesses, the Group assigns receivables (security guarantees).

2020

2019

in € millions

275.3

299.9

Receivables assigned to factoring companies

7.5

4.0

Payables

45.5

49.2

Non-factored receivables

Receivables sold with no recourse* 246.7 Receivables sold do not include the portion of receivables financed with recourse, classified in liabilities. * 222.3

The overall factoring cost amounted to €2.9 million in 2020 compared with €2.5 million in 2019. It should be noted that at the end of December 2020, Econocom used reverse factoring for an amount of €96.2 million (compared to €25 million end-2019). Given that there is no legal novation of the debt and that the terms and conditions have not been substantially modified, the debt remains recognisedin trade payables. Refinancing with recourse In certain very limited cases, Econocom group retains its exposure to the credit risk

on its factored receivables. In this case, the Group transfers title to the equipment under the lease to the refinancing institution for the duration of the lease, as collateral for the transaction. However, for the purposes of simplification, the Group recognised a financial liability equal to the total amount factored with recourse and recorded a gross asset (representing its “continuing involvement” as defined by IFRS 9) in trade receivables for an amount of €76.2 million at 31 December 2020 (€90.3 millionat 31 December 2019).

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2020 annual report