Note 13 – Goodwill
Cash-generating units with goodwill
| Goodwill | Sweden | Finland | Group total | |
| Goodwill | Sverige | Finland | Koncernen totalt | |
| Opening balance, January 1, 2023 | Ingående balans 2023-01-01 | 314 | 269 | 583 |
| Exchange differences | Valutakursdifferens | – | -1 | -1 |
| Closing balance, December 31, 2023 | Utgående balans 2023-12-31 | 314 | 268 | 582 |
| Opening balance, January 1, 2024 | Ingående balans 2024-01-01 | 314 | 268 | 582 |
| Exchange differences | Valutakursdifferens | – | 10 | 10 |
| Closing balance, December 31, 2024 | Utgående balans 2024-12-31 | 314 | 278 | 592 |
Impairment testing
Cash generating units
The cash generating unit Sweden consists of the company BE Group Sverige AB, which is part of business area Sweden & Poland. The Finland cash generating unit consists of the company BE Group Oy Ab, which is a part of business area Finland & Baltics.
Recoverable amounts
Goodwill with an indefinite useful life is allocated to the Group’s cash-generating units identified per operating segment. The recoverable amount for a cash generating unit has been determined based on calculations of value in use. These calculations are based on estimated future cash flows before tax based on financial budgets and strategic plans approved by Group management covering a five-year period. The strategic plan assumes an average growth rate of approximately 8 percent (5) per year for all operating segments. Cash flows beyond the five-year period are extrapolated using estimated growth rates, which is estimated to be about 2 percent (2) for all operating segments. Assumptions have also been made regarding steel price development, operating margins, overheads, working capital needs and investment needs. The pre-tax discount rate applied amounts to 13.2 percent (15.7) for all operating segments.
The calculation as per December 31, 2024 shows that the right of use value exceeds the carrying amount of all cash generating units and therefore there is no impairment need. Nor was there any impairment need for the calculation as per December 31, 2023.
Sensitivity analysis
A number of sensitivity analyses have been done where the variables included in the value-in-use model were changed and the effect on the recoverable amount was analyzed. Sensitivity analyses show that the remaining goodwill for all cash generating units would continue to be justifiable if the discount rate were to be raised by 1 percentage point or the growth rate, terminal growth or operating margin would be reduced by 1 percentage point. The table above shows how goodwill is distributed per cash generating unit.