LISI 2012 FINANCIAL REPORT
47
3
Consolidated financial statements
In €m
LISI MEDICAL
Net goodwill
46.1
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
2.50%
The impairment tests relative to financial 2012 were
materialized upon the closing of accounts: they have led to
the recognition and the recording of an impairment loss of
€3.4 million on the "Clipped Solutions B.U." CGU reflecting the
impact of the difficult and potentially sustainable situation of
the European automotive market.
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 7% on the CGUs of LISI AEROSPACE
and 7.5% on the CGUs of 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 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 2012 to 2016.
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 inworking 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 AEROSPACE
B.U. USA
Discount rate: + 11%
Decrease in cash flows: - 72%
Infinite growth rate: NA
B.U. Special Products
Discount rate: +38%
Decrease in cash flows: - 90%
Infinite growth rate: NA
B.U. Structural Components
Discount rate: +1.8%
Decrease in cash flows: -31%
Infinite growth rate: -2.1%
LISI AUTOMOTIVE
B.U. Threaded fasteners:
Discount rate: +2%
Decrease in cash flows: -28%
Infinite growth rate: NA
B.U. Clipped Solutions:
Discount rate NA
Decrease in cash flows: NA
Infinite growth rate: NA
LISI MEDICAL Division
B.U. Medical:
Discount rate: +2.2%
Decrease in cash flows: - 32%
Infinite growth rate: NA
