Download PDF version English (3237KB) - Hamon

86
Hamon Annual Report 2012
The following table includes on the one hand, the goodwill and on the other hand, the method used in order to perform
impairment tests:
in EUR ‘000’
Cooling Systems
PHE
ACS
Process Heat Exchangers
Air Pollution Control EMEA/Brazil
Air Pollution Control & Heat Recovery NAFTA
Chimneys
Total
2012 Value in use Fair value less costs
to sell
6 650 x
851 x
892 x
1 743
32 842 x
11 615 x
369 x
53 219
In the absence of signed transactions or data coming
from an organized market, fair value less costs to sell is
estimated based on the best information available to
reflect the amount that an entity could obtain from the
sale of an asset from a transaction in the conditions of
normal competition. Hamon estimates those values on
the basis of statistics of M&A transactions concerning
comparable companies, derived from multiples on
EBITDA, multiples most generally used by investors or
strategic acquirers.
Fitch Ratings has published a report (U.S. Leveraged
Finance Multiple EV-aluator) on 9 September 2011
providing those EBITDA multiples on the 12 last months
per industry. Taking into account size and liquidity
criteria, Hamon has retained for its activities a range
of multiples between 4,5 and 6, that is in the lower part
of the presented ranges. This multiple is applied to
actual EBITDAs as they are derived from management
accounts of the Group, reviewed by the Board of Directors.
Those values are thereafter compared to CGU values in
consolidation, eventually corrected to take into account
values of non-operational assets or liabilities that are
not reflected in the EBITDAs. The entire tests that
are performed using this method show an absence of
impairment risk on the targeted CGUs. A fluctuation
of a factor of 0,5 reduces the coverage but not below
1,25 for any concerned CGU.
The value in use has been obtained by applying the DCF
method to 3-year business plans prepared together with
the budgets during the 3rd quarter 2012. Those business
plans are mainly based on the backlogs of the CGU and
the lists of the expected bookings for the following years
based on pending offers and projects in preparation with
our regular customers. The expected order bookings have
been comforted by the actual bookings that occurred
between 01/10/2012 and 21/02/2013. After the
projection period, Hamon uses a growth rate of 1,5%,
being the half of the rate retained by the IEA for its
investment perspectives in the energy sector. The WACC
retained is 10,5%, based on the analyst reports that
follow Hamon. Sensitivity analysis are performed on
booking levels (-15%), growth rate (-1%) and the WACC
(+ 1%). In every case, the tests performed showed that
impairment risks were unlikely.
In 2010, based on the tests performed according
to the value-in-use method, it was judged prudent to
account for an impairment loss (EUR 892 thousand)
on ACS goodwill.