Notes to the Consolidated Financial Statements continued
Reportofthe Reportofthe Financial Other
Contents Overview Executive Board Supervisory Board Statements Information
15. Intangible assets continued
Brands, customer-related and contract-based intangibles
The main brands capitalised are the brands acquired in various acquisitions such as Fosters, Strongbow, Dos Equis, Tiger and Bintang. The main customer-
related and contract-based intangibles relate to customer relationships with retailers in Mexico and Asia Pacific (constituted either by way of a contractual
agreement or by way of non-contractual relations) and reacquired rights.
Impairment tests for cash-generating units containing goodwill
For the purpose of impairment testing, goodwill in respect of Europe, the Americas (excluding Brazil) and Asia Pacific is allocated and monitored on a
regional basis. For Brazil and subsidiaries within Africa, Middle East and Eastern Europe and Head Office, goodwill is allocated and monitored on an
individual country basis.
The carrying amounts of goodwill allocated to each (group of) CGU(s) are as follows:
In millions of EUR
2015
Europe
5,060
4,876
The Americas (excluding Brazil)
2,124
1,862
Brazil
62
83
Africa, Middle East and Eastern Europe (aggregated)
508
491
Asia Pacific
3,090
2,604
Head Office
480
480
11,324
10,396
2014 numbers have been revised to reflect the new regional segmentation.
Throughout the year, goodwill increased mainly due to acquisitions and net foreign currency differences.
The recoverable amounts of the (group of) CGUsare 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 10-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
Expected
annual
long-term
inflation
Expected
volume
growth rates
Europe
9.4
1.8
0.6
The Americas (excluding Brazil)
13.5
3.1
2.0
Brazil
14.1
4.8
2.0
Africa, Middle East and Eastern Europe
12.4-24.7
3.0-8.9
\l
I
CO
Ln
Asia Pacific
14.1
4.5
3.3
Head Office 9.4 1.8 0.6
96 Helneken N.V. Annual Report 2015
