Page 47 - Financial report 2011

LISI 2011 — 47 — financial report
Consolidated financial statements
As at December 31, 2011, the net value of goodwill broke down as follows:
In €m
LISI AEROSPACE
Europe
B.U.
Europe Engines
and critical
parts B.U.
USA
B.U.
Europe Engines
and critical
parts B.U.
Specialty
fasteners B.U.
Structural
Components
B.U.
Total
Net goodwill 0.9 3.0 20.4 7.6 36.5 68.4
Intangible fixed assets
with an undetermined useful life None None None None None None
Result of the impairment test NA –
no sign of
impairment
NA –
no sign of
impairment
No
impairment
NA –
no sign of
impairment
NA –
no sign of
impairment
No
impairment
Key assumptions
Cash flow within one year Forecasts Forecasts
Cash flow within four years Year strategic
plan
Year strategic
plan
Discount rate after tax 7.50% 7.50%
Growth rate of flows not
covered by the assumptions
and strategic
2.50% 2.50%
In €m
LISI AUTOMOTIVE
B.U Fixations vissées B.U Composants
mécaniques
B.U Solutions clippées Total
Net goodwill 22.4 1.3 43.7 67.4
Intangible fixed assets
with an undetermined useful life None None None
Trademarks None None 5.3 5.3
Result of the impairment test No impairment NA – no sign
of impairment
No impairment
Key assumptions
Cash flow within one year Forecasts Forecasts
Cash flow within four years Year strategic plan Year strategic plan
Discount rate after tax 8.50% 8.50%
Growth rate of flows not
covered by the assumptions
and strategic
2.50% 2.50%
In €m LISI MEDICAL
Net goodwill 46.8
Intangible fixed assets
with an undetermined useful life None
Result of the impairment test No impairment
Key assumptions
Cash flow within one year Forecasts
Cash flow within four years Year strategic plan
Discount rate after tax 7.50%
Growth rate of flows not
covered by the assumptions
and strategic
2.50%
The impairment tests relative to financial 2011 were materialized
upon the closing of accounts: they have not resulted in the recording
of an impairment. These tests, in accordance with Note 2.2.8.5, were
conducted for each CGU on the basis of:
– the values in use determined on the basis of future cash flows
resulting from the budget construction and the four-year strategic
plans approved by the Board of Directors,
– a growth rate of 2.50% to extrapolate the cash flow projections,
and taking into account benchmark elements implemented within
certain references, particularly in the automotive industry,
– an after-tax discount rate of 8.50%on the CGUs of LISI AUTOMOTIVE
and LISI COSMETICS and 7.50% on the CGUs of LISI AEROSPACE and
LISI MEDICAL, thus reflecting the appreciation of the specific risks to
which these activities are exposed.
The Management bases its projections on budget assumptions for
the first year, and on data from the four-year strategic plan reviewed
by the Board of Directors each year; the key assumptions relate in
particular to the evolution of sales based on the order book and the