EXEL Industries // 2020 Universal registration document

Separate fi nancial statements

Notes to the parent company fi nancial statements

Total fi xed assets

Opening gross value

Transfer item to item

Gross value at closing

Separate fi nancial statements (in € thousands)

Increases Decreases

Intangible assets

27,623

3,556

(46)

31,133

Property, plant and equipment

2,797

19

2,816

Financial assets: Equity interests

186,327

43,250

(10,206)

219,371

Receivables on interests

175,955

12,000

(31,832)

156,123

Other equity securities

481

458

(59)

881

Others

950

2

952

TOTAL

394,133

59,285

(42,142)

-

411,276

Amortization and depreciation

Depreciation at opening

Depreciation at closing

Separate fi nancial statements (in € thousands)

Allowance

Reversals

Amortization of intangible fi xed assets

5,500

1,448

(46)

6,903

Depreciation of tangible fi xed assets

2,610

12

2,622

TOTAL

8,110

1,460

(46)

9,525

Changes a ff ecting provisions for accelerated tax depreciations

6

Depreciation at opening

Depreciation at closing

Separate fi nancial statements (in € thousands)

Allowance

Reversals

For intangible and tangible fi xed assets

9

-

(9)

0

For acquisition expenditures for securities

1,782

123

-

1,904

TOTAL ACCELERATED TAX DEPRECIATION

1,791

123

(9)

1,904

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 ow (DCF) forecasts. A provision for impairment is recognized when the calculated value in use is below the net carrying value. All the tests were carried out using the following principal assumptions for fi scal year 2020:  the perpetual growth rate used from the sixth year is 1.7% (1.7% in 2019);  the discount rate is 9.0% (8.3% in 2019).

The valuation is made in the functional currency of the entity and converted at the year-end closing exchange rate. On September 30, 2020 the Group performed a sensitivity analysis on the perpetual growth assumptions and the discount rate by applying an increase of 100 bps to the discount rate or a reduction of 50 bps to the perpetual growth rate. This analysis shows a risk of additional impairment of no more than €27 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 2020 Universal Registration Document

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