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Financial statements

10. Property, plant, and equipment

 

Land

Buildings

Machinery and equipment

Other fixed assets

Under construction

Total

1 January 2018

      

Acquisition prices

17.4

159.8

570.6

51.1

26.2

825.1

Cumulative depreciation/impairments

 

-74.2

-435.0

-35.9

 

-545.1

Book value

17.4

85.6

135.6

15.2

26.2

280.0

       

Movements

      

Capital expenditure

  

0.7

6.4

39.2

46.3

Divestments

-0.2

-0.9

   

-1.1

Exchange rate differences

0.6

2.8

1.9

-0.1

0.6

5.8

Acquisition of group companies

0.2

23.1

29.0

20.5

0.5

73.3

Depreciation

 

-6.8

-23.1

-5.9

 

-35.8

Impairment reversal

 

0.4

   

0.4

Other

0.1

4.9

22.1

2.8

-29.9

 

Net movement in book value

0.7

23.5

30.6

23.7

10.4

88.9

       

31 December 2018

      

Acquisition prices

18.1

181.3

621.2

69.9

36.6

927.1

Cumulative depreciation/impairments

 

-72.2

-455.0

-31.0

 

-558.2

Book value

18.1

109.1

166.2

38.9

36.6

368.9

       

Movements

      

Capital expenditure

  

1.2

0.8

65.2

67.2

Divestments

    

-0.2

-0.2

Exchange rate differences

1.1

3.6

2.1

 

1.6

8.4

Acquisition of group companies

1.0

5.4

1.9

0.1

 

8.4

Depreciation

 

-7.3

-27.3

-7.8

 

-42.4

Impairment

  

-35.4

-5.6

 

-41.0

Other

-0.2

2.8

35.9

4.8

-44.4

-1.1

Net movement in book value

1.9

4.5

-21.6

-7.7

22.2

-0.7

       

31 December 2019

      

Acquisition prices

20.0

195.2

669.0

71.6

58.8

1,014.6

Cumulative depreciation/impairments

 

-81.6

-524.4

-40.4

 

-646.4

Book value

20.0

113.6

144.6

31.2

58.8

368.2

Depreciation rates

 

2.5 - 4%

6.7-12.5%

20-50%

  

In 2019 the following impairment was recorded:

A partial impairment of € 41.0 million (recorded partly in the Machinery and equipment category and partly in the other fixed assets category) related to our Algae business (part of the Innovation platforms segment) on our Brazil and US based tangible fixed assets based on a reassessment of volume development and timing due to slower than expected Algae ingredients market. The impairment has been recorded on the income statement line items 'Production' (€ 35.0 million) and 'Research and development costs' (€ 6.0 million).
The pre-tax discount rate used for the Brazil based assets is 16.3% (post-tax 12.6%). A terminal growth rate of 1.8% has been applied. The recoverable amount estimate (based on value in use) of the projected cash flows underlying the impairment calculation amounts to € 46.4 million and is sensitive to various assumptions, especially the volume and price development. The recoverable amount of the US based assets was valued on market data and fair value less cost of disposal reports from external valuators and amounts to € 9.0 million.

In 2018, no impairment was recorded. An impairment reversal of € 0.4 million was recorded related to the sale of the Kansas Avenue powder blending plant.

The Other category relates to transfer of leased assets from Property, plant and equipment to right-of-use assets as a result of the implemenation of IFRS 16. It also relates to transfers from Under construction to other categories within Property, plant, and equipment.