23. Impairment test for intangible assets and items of property, plant and equipment

Impairment tests for intangible assets and items of property, plant and equipment are mainly performed on the basis of the values in use for cash-generating units. The cash-generating units have been determined according to the business activities of the Nordzucker Group and taking regional aspects into account.

An impairment test was carried out for the goodwill of the Nordic Sugar Group recognised in the consolidated balance sheet. The recoverable amount is based on the value in use. The cash flows for this cash-generating unit were calculated for the next five years based on financial forecasts. The pre-tax interest rate used to discount the cash flows for this cash-generating unit was around 8.48 per cent (previous year: 8.96 per cent). A growth rate of 0 per cent (previous year: 0 per cent) was assumed for the long-term earnings component of the discounted cash flow calculation. Price falls and the end of the sugar market regime in 2017 have considerably lowered expectations for the future of the Nordic Sugar Group. As such, the financial years after 2017 are expected to see significantly lower earnings than previously projected. This change in market outlook required an impairment of this goodwill to the amount of EUR 89,007 thousand.