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10. Property, plant, and equipment

 

Land

Buildings

Machinery and equipment

Other fixed assets

Under construction

Total

1 January 2019

      

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

       

Movements

      

Capital expenditure

  

0.9

0.5

71.9

73.3

Divestments

   

-0.1

 

-0.1

Exchange rate differences

-1.8

-13.8

-10.1

-5.2

-7.4

-38.3

Depreciation

 

-6.4

-26.9

-4.4

 

-37.7

Impairment

 

-1.3

   

-1.3

Assets classified as held for sale

-3.9

-1.9

-2.9

  

-8.7

Other

 

1.2

61.4

-3.5

-59.1

 

Net movement in book value

-5.7

-22.2

22.4

-12.7

5.4

-12.8

       

31 December 2020

      

Acquisition prices

14.3

178.6

653.3

65.9

64.2

976.3

Cumulative depreciation/impairments

 

-87.2

-486.3

-47.4

 

-620.9

Book value

14.3

91.4

167.0

18.5

64.2

355.4

Depreciation rates

 

2.5 - 4%

6.7-12.5%

20-50%

  

In 2020 an impairment was recorded for assets related to the preparation of the new lactic acid plant in Thailand. For the Algae Ingredients business, management has identified triggers to reassess the valuation of tangible fixed assets because of developments in the WACC and the depreciation of the Brazilian real. In 2020 no additional impairment loss or a reversal of an impairment was recognized.

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 Ingredients business (part of the Incubator 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.

The Other line item relates to the transfer of leased assets from Property, plant, and equipment to right-of-use assets as a result of the implementation of IFRS 16 in 2019. It also relates to transfers from Under construction to other categories within Property, plant, and equipment.