15. Intangible assets Contents Overview Report of the Executive Board Report of the Supervisory Board Financial statements Other information Throughout the year total goodwill mainly decreased due to the disposal of Hartwall, an impairment loss recognised in our CGU Russia and net foreign currency differences. The recoverable amounts of theCGUsare based on value-in-use calculations. Value in use was determined by discounting the future cash flows generated from the continuing use of the unit using a pre-tax discount rate. The key assumptions used for the value-in-use calculations are as follows: Cash flows were projected based on actual operating results and the three-year business plan. Cash flows for a further seven-year period were extrapolated using expected annual per country volume growth rates, which are based on external sources. Management believes that this forecast period is justified due to the long-term nature of the beer business and past experiences. The beer price growth per year after the first three-year period is assumed to be at specific per country expected annual long-term inflation, based on external sources. Cash flows after the first ten-year period were extrapolated using a perpetual growth rate equal to the expected annual long-term inflation, in order to calculate the terminal recoverable amount. A per CGU-specific pre-tax Weighted Average Cost of Capital (WACC) was applied in determining the recoverable amount of the units. The values assigned to the key assumptions used for the value-in- -use calculations are as follows: In per cent Pre-tax WACC Expected annual long-term inflation 2017-2023 Expected volume growth rates 2017-2023 Western Europe 9.6 2.0 (0.5) Central and Eastern Europe (excluding Russia) 11.7 2.3 0.5 Russia 14.1 4.1 1.0 The Americas (excluding Brazil) 12.0 3.2 1.7 Brazil 15.5 4.5 0.9 Africa Middle East 14.8-22.7 3.2-10.7 CO I Asia Pacific 13.3 4.9 3.9 Head Office and other 11.2-13.0 2.1 -3.8 2.2-2.6 The impact of excise duty increases and other recent adverse regulatory changes has resulted in the deterioration of the beer market outlook in Russia, whilst also limiting HEINEKEN's commercial freedom in the country. Consequently, a goodwill impairment ofEUR94 million before tax has been recognised in 2013. The recoverable amount is based on the value in use. Sensitivity to changes in assumptions The outcome of a sensitivity analysis of a 100 basis points adverse change in key assumptions (lower growth rates or higher discount rates respectively) did not result in a materially different outcome of the impairment test. Heineken N.V. Annual Report 2013

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2013 | | pagina 93