260
Annual Report -
2013
-
Vivendi
4
Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements |
Consolidated
Financial Statements
| Statutory Auditors’ Report on the Financial Statements | Statutory Financial Statements
Note 10. Goodwill
to the table below). As a result, considering primarily the expected
impact on revenues in Metropolitan France of the increase in the
VAT rate from 7% to 10% as of January 1, 2014 and, to a lesser
extent, the adverse changes in the macro-economic and competitive
environment since the second half of 2012, Vivendi Management
concluded that Canal+ France’s recoverable amount was below its
carrying value as of December 31, 2012, and consequently recorded
an impairment loss of €665 million.
■
■
Presentation of key assumptions used for
the determination of recoverable amounts
The value in use of each CGU or groups of CGU is determined as the
discounted value of future cash flows by using cash flow projections
consistent with the 2014 budget and the most recent forecasts prepared
by the operating segments. These forecasts are prepared for each
operating segment on the basis of the financial targets as well as the
following main key assumptions: discount rate, perpetual growth rate,
and EBITA as defined in Note 1.2.3, capital expenditures, competitive
environment, regulatory environment, technological development and
level of commercial expenses. The recoverable amount for each CGU or
groups of CGU was determined based on its value in use in accordance
with the main key assumptions presented below.
Operating segments
CGU or groups
of CGU tested
Valuation method
Discount
rate
(a)
Perpetual growth rate
2013
2012
2013
2012
2013
2012
Canal+ Group
Canal+ France DCF & comparables model
DCF
8.30% 9.00% 1.50% 1.50%
Free-to-air TV
DCF
na 9.50% na 2.00% na
Studiocanal
DCF
DCF
9.00% 9.00% 0.00% 0.00%
Universal Music Group Universal Music Group DCF & comparables model
DCF & comparables model
9.15% 9.25% 1.00% 1.00%
GVT
(b)
GVT
DCF
DCF 11.24% 10.91% 4.00% 4.00%
SFR
SFR DCF & comparables model
DCF & comparables model
7.30% 7.30% 0.50% 0.50%
Activision Blizzard
Activision
(c)
DCF, stock market price
& comparables model
(c)
10.50%
(c)
4.00%
Blizzard
DCF, stock market price
& comparables model
10.50%
4.00%
Distribution
DCF & comparables model
13.50%
-4.00%
Maroc Telecom Group
Maroc Telecom
(d)
Stock market price
(d)
na
(d)
na
Onatel
DCF
14.40%
3.00%
Gabon Telecom
DCF
12.70%
3.00%
Mauritel
DCF
17.40%
3.00%
Sotelma
DCF
14.60%
3.00%
na: not applicable.
DCF: Discounted Cash Flows.
(a)
The determination of recoverable amounts using a post-tax discount rate applied to post-tax cash flows provides recoverable amounts consistent
with the ones that would have been obtained using a pre-tax discount rate applied to pre-tax cash flows.
(b)
In 2012, the annual goodwill impairment test on GVT was performed during the second quarter.
(c)
Interest in Activision Blizzard was sold on October 11, 2013 (please refer to Note 7).
(d)
Considering the current plan to sell Maroc Telecom Group, and in accordance with IFRS 5, Maroc Telecom Group has been considered as an asset
held for sale since the second quarter of 2013.
