Skip to website navigation Skip to article navigation Skip to content

12. Intangible fixed assets

 

Goodwill

Customer base

Brands and licenses

Development costs

Other intangible fixed assets

Total

1 January 2019

      

Acquisition prices

64.4

18.0

33.9

54.1

45.4

215.8

Cumulative amortization/impairments

-3.1

-14.3

-8.2

-22.5

-28.5

-76.6

Book value

61.3

3.7

25.7

31.6

16.9

139.2

       

Movements

      

Capital expenditure

   

2.4

12.9

15.3

Acquisition of group companies

18.4

8.0

   

26.4

Exchange rate differences

0.7

-0.2

  

0.1

0.6

Amortization

 

-2.7

-0.5

-2.1

-2.9

-8.2

Impairment

   

-0.4

 

-0.4

Net movement in book value

19.1

5.1

-0.5

-0.1

10.1

33.7

       

31 December 2019

      

Acquisition prices

83.8

26.0

34.1

56.5

52.3

252.7

Cumulative amortization/impairments

-3.4

-17.2

-8.9

-25.0

-25.3

-79.8

Book value

80.4

8.8

25.2

31.5

27.0

172.9

       

Movements

      

Capital expenditure

   

2.6

13.7

16.3

Exchange rate differences

-10.3

-2.2

-0.2

-0.3

-0.3

-13.3

Amortization

 

-1.8

-0.5

-2.4

-5.5

-10.2

Net movement in book value

-10.3

-4.0

-0.7

-0.1

7.9

-7.2

       

31 December 2020

      

Acquisition prices

73.2

22.6

33.2

41.6

64.9

235.5

Cumulative amortization/impairments

-3.1

-17.8

-8.7

-10.2

-30.0

-69.8

Book value

70.1

4.8

24.5

31.4

34.9

165.7

Amortization rates

 

7 - 20%

5 - 10%

5 - 33.3%

33.3%

 

Goodwill impairment test

Goodwill is allocated to Corbion's cash-generating units identified as the operating segments. The operating segments Sustainable Food Solutions and Lactic Acid & Specialties represent the levels to which company goodwill is allocated for the purposes of impairment testing. Incubator does not contain any goodwill.

Key reasons for this approach are:

  • It represents a non-arbitrary, reasonable, and consistent basis for the allocation of goodwill.

  • The allocation is in line with the expected synergies at the time of an acquisition with benefits for more than one entity.

  • The allocation represents the lowest level where goodwill is monitored by the Board of Management, while not being larger than the operating segments.

Breakdown of the book value of the goodwill by segment

 

As at 31-12-2020

As at 31-12-2019

Sustainable Food Solutions

67.9

78.2

Lactic Acid & Specialties

2.2

2.2

Total operations

70.1

80.4

The recoverable amount of both segments is determined using a value-in-use method. The main assumptions used are derived from the financial and business plans for 2021 which have been approved by the Board of Management. From 2022 onwards a stable growth of 1% is taken into account in combination with a relatively constant cost structure.

The future cash flows are discounted on the basis of the WACC before tax.

Overview of the WACC used

 

As at 31-12-2020

As at 31-12-2019

 

pre-tax

post-tax

pre-tax

post-tax

Sustainable Food Solutions

8.2%

6.7%

8.2%

6.6%

Lactic Acid & Specialties

8.5%

6.7%

8.5%

6.9%

In addition, sensitivity analyses have been carried out in respect of the assumptions using:

  • A terminal value growth of 0%.

  • A discount rate of +1%.

Both assumptions applicable at the same time would not lead to any impairment.

Given the above assumptions and the outcome of analyses, the Board of Management has concluded that the value in use of both segments is not lower than the book value of the segments including goodwill.

The majority of the brands and licenses consist of assets not yet available for use.