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CONSOLIDATED FINANCIAL STATEMENTS
54
LISI 2015 FINANCIAL REPORT
LISI AUTOMOTIVE
(in millions of euros)
Threaded fasteners B.U.
Mechanical Safety
Components B.U.
Clipped solutions B.U.
Total
Net goodwill
19.6
1.3
40.8
61.6
Intangible fixed assets
with an indefinite useful life
None
None
None
None
Trademarks
None
None
2.4
2.4
Result of the impairment test
No sign of impairment
No sign of impairment
No sign of impairment
Key assumptions
Cash flow within one year
Forecasts
Forecasts
Forecasts
Cash flow within four years
4-year strategic plan 4-year strategic plan 4-year strategic plan
Discount rate after tax
7.92%
7.92%
7.92%
Growth rate of flows not
covered by the budget and
strategic assumptions
1.80%
1.80%
1.80%
(in millions of euros)
LISI MEDICAL
Net goodwill
48.8
Intangible fixed assets
with an indefinite useful life
None
Result of the impairment test
No sign of impairment
Key assumptions
Cash flow within one year
Forecasts
Cash flow within four years
4-year strategic plan
Discount rate after tax
6.66%
Growth rate of flows not covered
by the budget and strategic
assumptions
1.90%
In accordance with IAS 36 "Impairment of Assets", goodwill
was tested for impairment on December 31, 2015.
These tests, in accordance with Note 2.2.8.5, were conducted
for each CGU. The cash generating units (CGU) are determined
in accordance with the operational reporting and their
recoverable values are determined on the basis of a calculation
of utility value. Each utility value is calculated based on the
discounting, at the rates mentioned below, 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 approved by the Board of Directors.
Beyond the fifth year, the terminal value is calculated on
the basis of a capitalization to infinity of the cash flows. 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 themarket situation at the time they were prepared, and that
they take into consideration the market trends for the years
2016 to 2019.
The determination of the infinite growth rate and the
discounting rates used on the different CGUs was carried out by
an independent expert.