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LISI 2011 —
48
— financial report
Consolidated financial statements
master contracts signed by the Group, if applicable, the operating
profit rate, the renewal capex rate, and the determination of factors
that may affect the working capital. The assumptions are in particular
established on the basis of observations made during previous activity
cycles in the various lines of business, as well as in external market
surveys and the observation of the sensitivity of the contractual
data for the environment of each division. It is specified that these
assumptions are the best estimate possible of the market situation at
the time they were prepared, and that they take into consideration the
degradation of markets for 2011 to 2015.
Sensitivity tests for the assumptions retained were undertaken
and related to the major indicators factoring into these value tests:
discount rates, elements contributing to cash flows (variation in
working capital and investments). These sensitivity tests showed that
the limit between the value in use and the net asset is attained for the
variation in these calculation parameters:
LISI AUTOMOTIVE
B.U. Threaded fasteners:
Discount rate: + 2.6%
Decrease in cash flows: - 32%
Infinite growth rate: NA
B.U. Clipped Solutions:
Discount rate: + 0.5%
Decrease in cash flows: - 8%
Infinite growth rate: - 0.6%
LISI MEDICAL
B.U. Medical:
Discount rate: + 1.1%
Decrease in cash flows: - 20%
Infinite growth rate: - 1.5%
b) Other intangible assets
(In €’000)
Concessions, patents
and similar copyrights*
Other intangible assets
TOTAL
Gross values at December 31, 2010
34,481
11,548
46,029
Acquisitions
2,176
879
3,055
Disposals
(245)
(2,151)
(2,396)
Scope changes
1,624
3,024
4,648
Exchange rate spreads
22
22
44
Gross values at December 31, 2011
38,058
13,322
51,380
Depreciation at December 31, 2010
24,855
4,120
28,975
Depreciation allowance
4,420
2,560
6,980
Depreciation reversals
(305)
(2,873)
(3,178)
Scope changes
1,537
1,670
3,207
Exchange rate spreads
1
13
14
Depreciation at December 31, 2011
30,508
5,490
35,998
Net values at December 31, 2011
7,550
7,832
15,382
* Including the Rapid brand.
The RAPID brand was valued when the company was acquired in
August 2000 at its fair value of €8.3m, based on an independent
valuation. Since 2003, it has been decided to amortize it over a period
of 15 years, given the commercial usage period envisaged to date.
Most of the increases in “Other intangible assets” result from
the consolidation of the companies that belong to the CREUZET
AERONAUTIQUE arm.