Note 13 – Goodwill

Impairment testing

Cash generating units

Goodwill is attributable to the Group’s cash generating units, identified by operating segment. The Swedish cash generating unit consists of BE Group Sverige AB within business area Sweden & Poland, where the Polish unit was liquidated during the year. The Finnish cash generating unit consists of BE Group Oy Ab within business area Finland & Baltics, where the Baltic units were discontinued at the end of 2024.

Impairment testing of goodwill

Goodwill with an indefinite useful life is tested annually for impairment, as well as when indications of a decline in value exist. The recoverable amount for each cash generating unit has been determined based on value-in-use calculations by discounting estimated future cash flows before tax. The cash flow forecasts are based on financial projections approved by Group Management covering a five-year period and corresponds to an average annual growth rate of approximately 9 percent (10). The parameters for the Swedish unit correspond to an average growth rate of 9 percent (12) and approximately 10 percent (7) for the Finnish unit. The pre-tax discount rate applied amounts to 15 percent (13) for all operating segments. Cash flows beyond the forecast period have been extrapolated using a long-term growth rate of 2 percent (2). Furthermore, assumptions regarding steel price development, operating margin, cost structure, working capital requirements, and investments have been determined based on historical outcomes and current assessments. The long-term earnings capacity for both the Swedish and the Finnish units has been assessed with increased caution to reflect the prevailing market situation.

Impairment tests performed

As of June 30 2025, an impairment test was carried out due to the external environment and continued high return requirements from the market, which had a negative impact on the valuation of assets. The test resulted in an impairment of goodwill amounting to SEK 409 M, allocated as SEK 219 M to the Swedish unit and SEK 190 M to the Finnish unit. As of December 31 2025, a new impairment test was conducted. The test shows that the value-in-use exceeds the carrying amount for all cash‑generating units, and therefore no further impairment requirement exists.

Sensitivity analysis

Sensitivity analyses have been performed to assess the effect of reasonably possible changes in key assumptions underlying the value-in-use calculations for each cash generating unit. Given that goodwill was written down to the recoverable amount for each cash generating unit as of June 2025, the headroom between value-in-use and carrying amount was limited at year-end. For the Swedish cash‑generating unit, the carrying amount of goodwill can be maintained with an increase in the discount rate of 1 percentage point and with a reduction in the long-term growth rate. A decrease in the operating margin by 1 percentage point across the entire forecast period would reduce the recoverable amount to zero. For the Finnish cash‑generating unit, the carrying amount of goodwill can be maintained with a reduction in the long-term growth rate. An increase in the discount rate by 1 percentage point or a decrease in the operating margin by 1 percentage point across the entire forecast period would reduce the recoverable amount to zero.