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36
financial statements 2011
16. Interests in associates
eur 1000
2011
2010
Carrying amount, January 1
2 720
2 337
Share in result
81
232
Decreases
0
-94
Dividend distribution from associates
-168
-112
Translation differences
17
357
Total carrying amount, December 31
2 651
2 720
The carrying amount of associates on December 31, 2011 includedgoodwill of EUR 883,000. (878,000 on Dec 31,
2010)
Impairment testing of goodwill, Dec. 31, 2011
In impairment testing, the recoverable amounts from the business areas have been defined on the basis of value
in use. Cash flow forecasts are based on forecasts approved by the management and which cover a period
of three years. The cash flow after the management-approved forecast period has been extrapolated using a
discount rate and zero growth percentage.
The key assumptions when calculating the value in use are as follows:
1. Net revenue – Defined based on the budget for the following year and estimated forecasts for the coming
years.
2. EBITDA – Defined based on the budget for the following year and on forecasts for the coming years. The
prices based on the overhead cost index are also taken into account.
3. Discount rate – Defined by means of the weighted average cost of capital (WACC), which describes the total
cost of equities and liabilities, taking into account the special risks associated with assets. Discounting rates are
defined before taxes, and in 2011 they were between 9-11% (2010: 8-10%) depending on the cash-generating unit.
In the financial statements of the comparison year, the Group recognized EUR 85,000 in impairment losses
for acquisition of Kampanjfabriken AB during the financial year. Impairment has been allocated to the Print &
Distribution business area.
Sensitivity analysis in impairment testing
The assumptions used in sensitivity analyses are related to net revenue, profitability and the applied discount rate.
In assessing the results of the sensitivity analyses, attention has been paid to the effect of changes in net revenue
to profitability (gross margin).
On the basis of sensitivity analyses, the Marketing Services business area will be exposed to an impairment risk if
long-term profitability does not improve from the 2011 level.
When evaluating the recoverable amounts for other operations, no change that could be reasonably expected
to occur in any of the key factors used would lead to a situation where the units’ recoverable amounts fell below
their respective carrying amounts.