EXEL industries - 2019 Universal Registration Document

Separate fi nancial statements

Notes to the parent company fi nancial statements

Total fi xed assets

Opening gross value

Reclassi fi cation from line to line

Closing gross value

Separate fi nancial statements (in € thousands)

Increases Decreases

Intangible assets

27,611

12

27,623

Property, plant and equipment

2,795

2

2,797

Financial assets: Equity interests

176,327

10,000

-

186,327

Receivables on interests

124,276

66,000

(14,321)

175,955

Other equity securities

319

162

481

Others

948

2

950

TOTAL

332,276

76,178

(14,321)

-

394,133

Amortization and depreciation

Accumulated depreciation

Accumulated depreciation at closing

Separate fi nancial statements (in € thousands)

at opening Allowances

Reversals

5

Amortization of intangible fi xed assets

4,333

1,167

-

5,500

Depreciation of tangible fi xed assets

2,354

256

2,610

TOTAL

6,687

1,423

-

8,110

Changes a ff ecting provisions for accelerated tax depreciations

Accumulated depreciation

Accumulated depreciation at closing

Separate fi nancial statements (in € thousands)

at opening Allowances

Reversals

For intangible and tangible fi xed assets

32

-

(23)

9

For acquisition costs for securities

1,681

101

-

1,782

REVERSAL OF TAX-DRIVEN PROVISIONS (ACCELERATED c TAX c DEPRECIATIONS)

1,713

101

(23)

1,791

5.3 Financial assets The gross value of equity interests and receivables on interests is the acquisition cost. The net book value of the equity interests is compared to the share of shareholders’ equity of the companies held. When there is inadequate shareholders’ equity, the value in use is determined on the basis of the discounted cash fl ows (DCF) forecasts. A provision for impairment is recognized when the calculated value in use is below the net carrying value. All the testswere carried out using the following principal assumptions for fi scal year 2019: „ the perpetual rate of growth (from the 6 th c year) is 1.7% depending on the IMF’s long-term in fl ation forecasts; „ the discount rate is 8.3% (8% in 2018).

The discount rate used for the impairment tests corresponds to the weighted average cost of capital (WACC) estimated on a date close to the closing date. The WACC is calculated on the basis of a target indebtedness of 25% of equity and a risk-free interest rate of 0.3% (ten-year French government bond rate). The valuation is made in the functional currency of the entity and converted at the year-end closing exchange rate. On September c 30, 2019 the Group performed a sensitivity analysis on the perpetual growth assumptions and the discount rate by applying an increase of 100 c bps to the discount rate or a reduction of 50 c bps to the perpetual growth rate. This analysis shows a risk of additional impairment of no more than €74 c million. Expenditures related to the purchase of equity interests are capitalized and amortized over fi ve years as accelerated tax depreciation.

EXEL Industries Group I 2019 Universal Registration Document

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