Econocom - 2019 Universal registration document

245 2019 annual report 06 consolidated financial statements notes to the consolidated financial statements CREDIT AND COUNTERPARTY 19.2.5. RISK the counterparty risk represent less than 10% of outstanding rentals in the TMF business. The Group decided to The Group has no significant exposure to concentrate its strategic transactions credit risk. It has policies in place to ensure bearing credit risk within its subsidiary that sales of goods and services are made Econocom Digital Finance Limited to to clients with an appropriate credit history. ensure a consistent risk management The Group’s exposure is also limited as it approach. does not have any concentration of credit 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 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 maximum exposure in this respect is equal to the carrying amount of its financial assets (see note ژ 13.1). Aged balance of receivables past due but not impaired 2019 in € millions Carrying amount Receivables not past due Breakdown by maturity Total Less than 60 days Between 60 and 90 days Over 90 days Trade receivables – refinancing institutions, gross 98.3 46.9 51.4 31.5 13.4 6.5 Other receivables, gross 966.0 744.0 222.3 78.5 23.3 120.4 Impairment of doubtful receivables (63.9) (12.9) (51.1) (0.1) (0,1) (51,0) Trade and other receivables, net 1,000,4 778.1 222.5 110.0 36.6 75.9 EQUITY RISK 19.2.6. The Group does not hold any unlisted or listed shares apart from treasury shares. As the treasury shares held by Econocom Group at 31 ژ December 2019 are deducted from shareholders’ equity in the consolidated financial statements as of their acquisition, it is not necessary to compare their carrying amount to their actual market value.