87.
Impairment loss and subsequent reversal
Impairment tests for cash-generating units containing Goodwill
Goodwill relates to the following Operating Companies:
In millions of EUR
2005
2004
Brau Union (acquisition 2003)
1,115
1,097
Russia
448
55
Compania Cervecerias Unidas (CCU)
320
286
1,883
1,438
Various other operating companies
255
189
2,138
1,627
Goodwill has been tested for impairment at 31 December 2005. The recoverable amounts significantly
e ceed the carrying amount of the operations including goodwill. We have impaired goodwill,
e cept for three operations where an impairment loss of €14 million was charged to the results.
T ie recoverable amounts of the cash-generating units are based on value-in-use calculations.
Tiose calculations use cash-flow projections based on actual operating results and our three-year
business plan extrapolated for the first five-year period. Cash flows for periods after 2010 are
e trapolated using inflation plus a low growth rate. The growth rate is consistent with our long-term
e pected growth rate for the industry per region.
A per cash-generating unit-specific Weighted Average Cost of Capital (WACC) has been used
discounting the projected cash flows.
3 Investment in associates
I- ineken has the following investments in associates, direct or indirect through subsidiaries or joint
v ntures:
Ownership
2005
Ownership
2004
rvecerias Costa Rica S.A.
Costa Rica
25.0%
25.0%
asserie Nationale d'Haïti
Haïti
23.3%
23.3%
ïnness Ghana Breweries Ltd.
Ghana
20.0%
20.0%
:rra Leone Brewery
Sierra Leone
42.5%
42.5%
Jinness Anchor Berhad*
Malaysia
10.7%
10.7%
ai Asia Pacific Brewery Co. Ltd.*
Thailand
14.7%
14.8%
ngsu DaFuHao Breweries Co. Ltd.*
China
18.4%
direct through joint ventures.
t :ineken's share in the profit of associates for the year ended 31 December 2005 was €34 million
004: €21 million).
Heineken N.V. - Annual Report 2005