We build business networks and relationships ... - skupina kd group

KD Holding Group
Notes to Consolidated Financial Statements as at and for the year ended 31 December 2007
qualified expert using the following key assumptions
in 2007:
- present value of future cash-flows without
indebteness;
- estimation was based on analysis of past operations
and estimation of future business opportunities;
- cash return was discounted with the appropriate
weighted arithmetic average of the return rate of
debt and equity securities;
- the CAMP model was used, modified for each
country;
- assumptions: 5% cost growth rate per employee,
4% expected rate of return on non-risk
investments, 7% premium for capital risk, 1.05
The goodwill of the financial segment was assessed
by an independent qualified expert using the
following key assumptions 2006:
- the value of the investment is based on the present
value of future cash-flows;
- the strategic and operational projections of the future
cash flows prepared by the Management. The period
over which the Management has projected cash flows
is 5 years. The growth rate used to extrapolate cash
flow projections is 1%;
- the required rate of return on the investment is
11.10%, the required rate of return on the total
investment is 10.4%,
- 10% discount for lack of liquidity.
systematic risk, 1% premium for particular risk,
10% discount for illiquidity;
- return on equity from 13.2% to 17.1%
- return on capital from 12.3% to 16.0%.
Goodwill has been assessed with the internal
method of evaluation. Goodwill does not need to be
impaired.
287
Based on the result of the assessment the Group
assessed that the goodwill in 2007 does not need to
be impaired.