Consolidated financial statements
1
3
LISI 2014FINANCIALREPORT
I
49
LISI AUTOMOTIVEDivision
(In€M)
Threaded fasteners
B.U.
Mechanical Safety
Components B.U.
Clipped solutions
B.U.
Total
Netgoodwill
19.6
1.2
40.8
61.6
Intangiblefixedassets
withanundetermineduseful life
None
None
None
Trademarks
None
None
3.1
3.1
Resultofthe impairmenttest
Nosignof impairment
Nosignof impairment
Nosignof impairment
Keyassumptions
Cash flowwithinoneyear
Forecasts
Forecasts
Forecasts
Cash flowwithin fouryears
4-year strategicplan
4-year strategicplan
4-year strategicplan
Discount rateafter tax
8.72%
8.72%
8.72%
Growth rateof flowsnot covered
by thebudgetandstrategic
assumptions
1.90%
1.90%
1.90%
(In€M)
LISI MEDICALDivision
Netgoodwill
47.7
Intangiblefixedassets
withanundetermineduseful life
None
Resultofthe impairmenttest
Nosignof impairment
Keyassumptions
Cash flowwithinoneyear
Forecasts
Cash flowwithin fouryears
4-year strategicplan
Discount rateafter tax
7.51%
Growth rateof flowsnot covered
by thebudgetandstrategicassumptions
2.00%
Inaccordancewith IAS36 "ImpairmentofAssets",goodwillwastestedfor
impairmentonDecember31,2014.
These tests, in accordancewithNote 2.2.8.5, were conducted for each
CGU.Thecashgeneratingunits(CGU)aredetermined inaccordancewith
theoperationalreportingandtheirrecoverablevaluesaredeterminedon
thebasis of a calculationof utility value. Eachutility value is calculated
basedon thediscounting, at the ratesmentionedbelow, of the forecast
operating cash flows after taxes. The projections of cash flow are
determined based on budget data and the four-year strategic plans
approvedbytheBoardofDirectors.
Beyond the fifth year, the terminal value is calculatedon thebasis of a
capitalization to infinity of the cash flows. The key assumptions relate
inparticular to the evolutionof sales basedon the order book and the
master contracts signedby theGroup, if applicable, theoperatingprofit
rate, the renewal capex rate, and thedeterminationof factors thatmay
affect theworkingcapital.Theassumptionsare inparticularestablished
on thebasisof observationsmadeduringprevious activity cycles in the
various lines of business, aswell as in externalmarket surveys and the
observationofthesensitivityofthecontractualdatafortheenvironment
of each division. It is specified that these assumptions are the best
estimatepossibleofthemarketsituationatthetimetheywereprepared,
andthattheytake intoconsiderationthemarkettrendsfortheyears2015
to2018.
Thedeterminationofthegrowthratetoinfinityandthediscountingrates
usedontheCGUsoftheLISIAUTOMOTIVEDivisionwascarriedoutbyan
independentexpert.
