QUADIENT // 2021 Universal Registration Document
6
FINANCIAL STATEMENTS Consolidated financial statements
4-5-2: GOODWILL IMPAIRMENT TEST
Goodwill is tested for impairment based on value in use as of 31 January 2022. For the main cash-generating units or group of CGUs, the following assumptions were used:
EBITDA average growth rate over 5 years
Sales average growth rate over 5 years
Average growth rate to perpetuity
Discount rate
10.0 (4.3) 14.8
4.3 1.0 13.3 5.2
(0.4)
7.5 6.8 6.8 6.3 8.5 6.3 6.3
North America
0.3 0.9 0.5 2.0 2.0
France-Benelux
UK – Ireland
4.4
DACH-IT
YayPay
n/a
n/a
(2.1) - 17.3
7.3 - 11.7
International
6.6
5.0
(2.0)
Additional Operations
Impairment test of the goodwill Goodwill depreciation amounts to 86,4 million euros as of 31 January 2022 compared with 86.6 million euros as of 31 January 2021 and concerns the Nordic countries and shipping software business in France. No impairment has been recorded in 2021, the variation is related to translation differences.
Sensitivity Sensitivity tests have been performed on the different assumptions used for the goodwill impairment test: (i) the EBITDA average growth rate over 5 years (ii) the infinite growth rate and (iii) the weighted average cost of capital to determine at which rates the valuation of goodwill becomes equal to the value of the discounted cash flow.
The results of these tests are presented in the table below for the main CGU or groups of CGUs:
Breaking point
EBITDA average growth rate over 5 years
Infinite average growth rate
Discount rate
(6.0) (15.2) 12.6 (2.7)
(24.7) (17.8) (0.3)
16.7 14.9 7.7 9.0 9.2
North America
France-Benelux
UK – Ireland
(3.7)
DACH-IT
1.2
YayPay
n/a
(15.3) - 6.1
< (20.0) - 0.9
7.2 - 28.7
International
In key assumptions, any reasonably possible change of one parameter at a time cannot lead to a recoverable value of CGU or group of CGUs becoming equal to its carrying amount, except for the CGU UK-Ireland.
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UNIVERSAL REGISTRATION DOCUMENT 2021
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