Annual Report 2010 (PDF, 5.2MB) - Panalpina Annual Report 2012

Consolidated and Annual Financial Statements 2010
112
A summary of the goodwill allocation per CGU is presented below:
in thousand CHF 2010 2009
Air freight division (CGU Airfreight) 31,151 31,151
Grampian International Freight Aberdeen & Beverwijk (CGU Grampian) 6,388 7,307
Panalpina World Transport (Singapore) Pte. Ltd. (CGU Janco) 4,008 4,034
Panalpina World Transport (Pty) Ltd. (CGU Australia) 1,404 0
Total goodwill 42,951 42,492
The following key assumptions have been used for the value-in-use calculations of each CGU:
2010 CGU Australia CGU Airfreight CGU Grampian CGU Janco
Growth rate 1 4.50 % 2.25 % 4.63 % 3.13 %
Operating expenses in % of forwarding revenues 2 96.87 % 98.37 % 98.62 % 97.74 %
WACC 3 15.53 % 10.44 % 12.60 % 10.51 %
2009 CGU Airfreight CGU Grampian CGU Janco
Growth rate 1 2.25 % 3.13 % 3.13 %
Operating expenses in % of forwarding revenues 2 98.90 % 98.71 % 95.84 %
WACC 3 9.32 % 12.25 % 9.41 %
1 Weighted average growth rate used to extrapolate cash flows beyond the budget period
2 Budgeted operating expenses in % of forwarding revenues
3 Pre-tax discount rate applied to the cash flow projections
The management determined budgeted growth rates based on past performance and its expectations of market development. The operating
expenses as a percentage of forwarding revenues are consistent with the forecasts and past experience. The weighted average
cost of capital (WACC) used are pre-tax and reflect specific risks relating to the relevant CGUs. For the impairment testing procedure the
planning assumptions of prior years were critically reviewed. The impairment testing procedure assumes that the CGU would achieve
sales growth at market growth for the planning period. It was also assumed that the percentage of operating expenses as a percentage of
forwarding revenue will remain stable.
The CGU Grampian is still critical. A minimal change in the assumptions of the growth rate of the gross profit (1.25 percentage points) or the
WACC (0.2 percentage points) would cause the carrying value of goodwill to exceed the recoverable amount.
For other CGUs the carrying value of goodwill would only exceed the recoverable amount if following changes in the key assumptions gross
profit growth or WACC would occur:
CGU Airfreight
Gross profit growth rate
WACC
CGU Janco
Gross profit growth rate
WACC
CGU Australia
Gross profit growth rate
WACC
– 61.9 percentage points
+ 31.8 percentage points
– 37.9 percentage points
+ 19.8 percentage points
< – 100.0 percentage points
+ 418.1 percentage points
Panalpina Annual Report 2010