Econocom - 2019 Universal registration document

06 consolidated financial statements

notes to the consolidated financial statements

Sensitivity of income statement

ژ Sensitivity to a change of: EUR GBP USD BRL PLN Other Total +10% -10% Contribution to the consolidated financial statements

in € ڳ millions

Revenue from continuing operations Profit (loss) from continuing operations

2,646.5 65.1 175.1

15.9 14.3 9.7 2,926.6 (25.5)

31.1

109.6 3.4 7.0 2.3

1.2 0.7 124.2 (1.3)

1.6

Profit

41.3 2.6 5.2

1.3 0.2 (2.0)

48.6 (0.7) (0.8)

Since the subsidiaries’ purchases and sales are mainly denominated in the same currency, this exposure is limited. Econocom Group does not deem this risk to be material, but has nevertheless signed a number of foreign exchange hedging agreements to hedge risks on internal flows. The Group also manages finance lease agreements denominated in US dollars in its Technology Management & Financing business. Currency risk is hedged naturally due to the specific way in which these

agreements of movements in the dollar, the impact on profit or loss is not material. INTEREST RATE RISK 19.2.2. Econocom’s operating income and cash flows are substantially independent of changes in interest rates. Sales of leases to refinancing institutions are systematically based on fixed rates. Income arising on these contracts is therefore set at the outset and only varies if the contract is amended. work. Regardless

The table below presents a breakdown of fixed-rate and floating-rate debt:

At 31 ژ December 2019

At 31 ژ December 2018

in € ڳ millions

% total

% total debt

Outstanding

debt Outstanding

ژ 531.8

ژ 64% 534.8

62%

Fixed rate (1)

ژ 296.0

ژ 36%

321.7

38%

Floating rate (2)

Gross debt (2) (see note ژ 14.2) 100% Of which the OCEANE convertible bond (issued in March ژ 2018) and all “Schuldschein” notes: one tranche of the (1) notes (€115 million) bears interest at floating rates; however, an interest rate swap was set up at the outset to convert this floating rate to a fixed rate. Excluding current bank overdrafts. (2) ژ 827.8 ژ 100% 856.5

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2019 annual report