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Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements |
Consolidated
Financial Statements
| Statutory Auditors’ Report on the Financial Statements | Statutory Financial Statements
Note 9. Goodwill
■
■
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 2015 budget and the most recent forecasts prepared by the operating segments. These forecasts are prepared for each operating segment, on the
basis of 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, the competitive and regulatory environments, technological developments 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 set out below.
Operating segments
CGU or groups
of CGU tested
Valuation method
Discount rate
(a)
Perpetual growth rate
2014
2013
2014
2013
2014
2013
Canal+ Group
Pay-TV and
free-to-air TV in France,
Africa and Vietnam
DCF &
comparables model
(b)
(c)
(d)
(e)
(f)
nc+
DCF
(g)
9.75%
(g)
3.00%
(g)
Studiocanal
DCF
DCF
9.75% 9.00% 1.00% 0.00%
Universal Music Group
Universal Music Group
DCF &
comparables model
DCF &
comparables model
8.90% 9.15% 1.00% 1.00%
Vivendi Village
See Tickets
DCF
DCF
11.50% 11.50% 2.00% 2.00%
Digitick
DCF
DCF
11.50% 11.50% 2.00% 2.00%
Wengo
DCF
DCF
13.20% 15.00% 2.00%
(h)
GVT
GVT
(i)
DCF
(i)
11.24%
(i)
4.00%
SFR
SFR
(j)
DCF &
comparables model
(j)
7.30%
(j)
0.50%
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)
Pay-TV in Mainland France and Canal+ Overseas: DCF & comparables model.
Free-to-air TV: DCF.
(c)
Pay-TV – Mainland France: 8.04%; France overseas: 9.04%; Africa: 10.04%; Vietnam: 10.88%.
Free-to-air TV: 9.5%.
(d)
Pay-TV – Mainland France: 8.3%; France overseas: 9.3%; Africa: 10.3%.
Free-to-air TV: 9.5%.
(e)
Pay-TV – Mainland France: 1.5%; France overseas: 1.5%; Africa: 3.14%; Vietnam: 4.5%.
Free-to-air TV: 2%.
(f)
Pay-TV – Mainland France: 1.5%; France overseas: 2.2%; Africa: 3.17%.
Free-to-air TV: 2%.
(g)
As of December 31, 2013, no goodwill impairment test in respect of nc+ (pay-TV in Poland) was undertaken given that the completion date of the
goodwill of “n”, acquired on November 30, 2012 was close to the closing date, and considering that no triggering event had occurred between those
dates.
(h)
As of December 31, 2013, the terminal value was determined by using an EBITDA multiple.
(i)
Considering the current plan to sell GVT, and in accordance with IFRS 5, GVT has been classified as a discontinued operation since the third quarter
of 2014.
(j)
SFR was sold on November 27, 2014 (please refer to Note 3.1).
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