13. Intangible fixed assets

Goodwill

Goodwill impairment test

In line with the management responsibilities and internal management reporting for its strategic decision-making process Corbion distinguishes between the segments Functional Ingredients & Solutions and Health & Nutrition (together "Continued"), and Discontinued.

Goodwill is allocated to Corbion's cash-generating units identified as the operating segments. The operating segments Functional Ingredients & Solutions and Health & Nutrition represent the levels to which company goodwill is monitored for the purposes of impairment testing.

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 Executive Committee, while not being larger than the operating segments.

Breakdown of the book value of the goodwill by segment

The recoverable amount of the Functional Ingredients & Solutions and Health & Nutrition segments is determined using a value-in-use method. The main assumptions used (market growth for the CGUs and the related revenue projections, EBITDA developments, and the rates used for discounting cash flows) are derived from the financial and business plans for 2026 which have been approved by the Board of Management. From 2027 onwards a stable growth of 2% 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

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

• A decrease in terminal value growth of 1%;

• An increase in the 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.