2013-vinci-annual-report

For the other CGUs, forecast cash flows are generally determined on the basis of the latest three-year forecasts available. For periods beyond
the three-year period, cash flows are extrapolated until the fifth year, generally using a growth rate based on management’s assessment of
the outlook for the entity under consideration.
Beyond the fifth year, the terminal value is determined by capitalising the final year’s cash flow to infinity.
240 VINCI 2013 ANNUAL REPORT
13.1 Impairment tests on goodwill
Goodwill was tested for impairment using the following assumptions:
Parameters of the model applied to
cash flow forecasts
Impairment losses recognised in
the period
Carrying
amount of
Discount rates
(in € millions)
goodwill
31/12/2013
Growth rate
(years n+1 to n+5)
Growth rate
(terminal value) 31/12/2013 31/12/2012
2013 2012
ASF group 1,935
(*) (*)
8.8% 9.1% – –
Energies France 1,781 1.9% 1.0% 11.4% 12.1% – –
VINCI Facilities 563 0.7% 1.0% 10.7% 11.7% – –
Energies Germany 346 2.0% 1.0% 8.9% 10.0% – –
VINCI Park 343
(*) (*)
8.8% 9.0% – –
Entrepose Contracting 201 3.1% 1.0% 10.7% 11.2% – –
Soletanche Bachy 171 3.4% 1.5% 9.3% 10.6% – –
Other goodwill (**) 1,660 –3% to 7% 1% to 5% 7.6% to 17.7% 8.5% to 16.7% (28) (8)
Total 7,000 (28) (8)
(*) For concessions, cash flow projections are determined over the length of concession contracts. The average revenue growth rate for the ASF group is 0.8%. The average growth rate for the
period that is common to the ASF group concessions is 2.0%. The average revenue growth of VINCI Park varies overall between 2% and 3% depending on the country and type of contract.
(**) Including provisional ANA goodwill allocated to the VINCI Airports operating segment.
The tests performed at 31 December 2013 led to the recognition of impairment losses of €28 million (€8 million at 31 December 2012).
Sensitivity of the value in use of cash-generating units to the assumptions made
The following table shows the sensitivity of enterprise value to the assumptions made for the main goodwill items:
Sensitivity to discount and perpetual growth rates
Discount rate for cash flows
Perpetual growth rate for cash flows
(in € millions) 0.5% -0.5% 0.5% -0.5%
ASF group (860) 916
(*) (*)
Energies France (144) 159 113 (103)
VINCI Facilities (24) 27 20 (18)
Energies Germany (66) 75 58 (51)
VINCI Park (167) 210
(*) (*)
Entrepose Contracting (23) 25 18 (17)
Soletanche Bachy (134) 153 117 (103)
(*) Forecasts of cash flows are determined over the periods of the concession contracts.
A change of 50 basis points in the assumptions adopted would not have a material impact on the results of impairment tests or, therefore,
on the Group’s consolidated financial statements at 31 December 2013.
Sensitivity to cash flows
Change in forecast operating cash flows (before tax)
(in € millions) 5% -5%
ASF group 997 (997)
Energies France 163 (163)
VINCI Facilities 25 (25)
Energies Germany 57 (57)
VINCI Park 109 (109)
Entrepose Contracting 24 (24)
Soletanche Bachy 115 (115)
A 5% increase or decrease in forecast operating cash flows would not have a material impact on the results of impairment tests or, therefore,
on the Group’s consolidated financial statements at 31 December 2013.
13.2 Impairment of other non-financial assets
In 2013, net impairment losses on other non-financial assets amounted to €14 million (€15 million in 2012).