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23 December 2008 following the acquisition of the Altair Group, which held the other 50% interest) that manages the
facility management contract covering the offices in Italy of the Telecom Italia Group. Also in 2004, the acquisition
by MP Facility of a line of business resulted in the recognition of goodwill totalling Euro 4,590 thousand (until 23
December 2008, the Group's interest was 50%, equal to Euro 2,295 thousand, while the other 50% was recognised
on acquisition of the Altair Group, see para. 4.7).
The above goodwill, also attributable to a medium-small CGU that manages the facility management contract with
the Telecom Italia Group, was subjected to impairment testing using the following assumptions:
• Discounting of the cash flows contained in the financial plan approved by senior management, covering a time
period equal to the residual duration of the contract with the Telecom Italia Group (which expires in 2013), without
assuming further renewals;
• Application of a discounting rate to the forecast cash flows of 7.4% (2007: 7.8%), equal to that applied to the facility
management CGU and to the goodwill allocated to MCB S.p.A.
Goodwill of the MCB CGU
During 2008, the Group acquired the remaining 25% interest in MCB S.p.A., thus obtaining full control over the
company. MCB is a medium-small company which provides facility management services for the properties of
companies with a network structure (banks, insurance companies etc.). The acquisition of the company, which took
place in successive steps between 2003 and 2008, resulted in the recognition of consolidated goodwill totalling Euro
11,200 thousand.
The goodwill relating to MCB S.p.A., which is attributable to medium-small CGU operating in the facility management
sector, was subjected to impairment testing on the basis of the assumptions listed below:
• Discounting of the cash flows contained in the financial plan approved by senior management, covering a time
period of three years,
• Extrapolation of the cash flows beyond the third year using a constant growth rate of 2%,
• Application of a discounting rate to the forecast cash flows of 7.4% (7.8% in 2007).
Goodwill of the Simagest 3 CGU
During 2006, the Group raised its holding in Simagest 3 Soc. Cons. a r.l. by acquiring a further 34.99% interest, thus
increasing its investment to 89.99%.
The Group recognised goodwill of Euro 217 thousand to the seller, which was written down by Euro 212 thousand
as of 31 December 2007. A further impairment test was performed as of 31 December 2008, using the following
assumptions:
• Discounting of the cash flows expected from the Consip lot 3 contract, which the consortium was formed to manage,
over its residual duration,
• Application of a discounting rate to the forecast cash flows equal to that applied to the facility management CGU.
This identified a loss in value of Euro 5 thousand.
Consistent with the fact that this contract will soon expire, the residual goodwill as of 31 December 2008 has been
written off.
Goodwill of the Servizi Ospedalieri/Omasa CGU (Laundering/sterilisation)
During 2007, the Group acquired from Manutencoop Società Cooperativa the entire equity interest in Servizi
Ospedalieri S.p.A. ("SO"), a company operating in the Laundering/Sterilisation segment whose main activities are (i)
the rental and laundering of sheets, other linen and towels, and bed accessories, (ii) the sterilisation of linen and (iii)
the sterilisation of surgical instruments. These services are mainly supplied to public entities and private clinics.
Since this was a business combination of entities under common control, the consistency principle was applied and,
accordingly, no goodwill was recognised on allocation of the purchase price.
The company's financial statements do however report purchased goodwill deriving from previous business
combinations (acquisition of two lines of business) with third parties, totalling Euro 5,685 thousand.
On 14 September 2007, the MFM Group acquired the entire equity interest in Omasa, one of Italy's leading providers
of specialist sanitary services for the management of hospital-related technologies (especially sterilisation).
Omasa specialises in the on- and off-site sterilisation of surgical instruments, enjoying a leadership position in
the management of sterilisation processes for the surgical instruments of healthcare operators. Given its extensive