Arla Foods Consolidated Annual Report 2021

83 Arla Foods Consolidated Annual Report 2021 / Consolidated Financial Statements / Notes Capital employed 3.1 INTANGIBLE ASSETS Contents III Table 3.1.a Intangible assets and goodwill (EURM) Goodwill Licence and trademarks IT and other development projects Total 667 43 163 513 1,343 3 2 48 45 45 -2 -2 710 166 558 1,434 Amortisation and impairment at 1 January -82 -330 -412 Exchange rate adjustments -1 -3 -4 Amortisation and impairment for the year -7 -67 -74 Amortisation on disposals 2 2 Amortisation and impairment at 31 December Carrying amount at 31 December -90 -398 -488 710 76 160 946 STABLE LEVEL OF INTANGIBLE ASSETS AND GOODWILL Intangible assets and goodwill amounted to EUR 946 million, representing an increase of EUR 15 million compared to last year. Goodwill The carrying value of goodwill amounted to EUR 710 million, compared to EUR 667 million last year. This increase was due to exchange rate movements. Of the total carrying value of goodwill, EUR 498 million related to activities in the UK, compared to EUR 462 million last year. Refer to Note 3.1.1 for more details. Licences and trademarks The carrying value of licences and trademarks amounted to EUR 76 million, compared to EUR 81 million last year. The carrying amount primarily relates to the recognition of trademarks in connection with business combinations and includes brands such as Yeo Valley®, AnchorⓇ and HansanoⓇ. The decrease in value compared to last year was due to amortisation. The strategic brands, Arla®, Lurpak®, CastelloⓇ and PuckⓇ, are internally generated trademarks and consequently no carrying amounts are recognised for these. Arla has the licence to manufacture, distribute and market StarbucksTM premium ready-to-drink coffee beverages under a long-term strategic licence agreement. Additionally, Arla holds a long-term licence agreement to manufacture, distribute and market KraftTM branded cheese products in the MENA region. No values are recognised due to these licence agreements. IT and other development projects The carrying amount of IT and other development projects was EUR 160 million, compared to EUR 183 million last year. The group continued to invest in the development of IT. In 2021, IT investments related to Focus Trade Investment, a freight cost management solution and a new milk settlement system. Other capitalised development costs included innovation activities and the development of new products. 2021 Cost at 1 January Exchange rate adjustments Additions Disposals Cost at 31 December 2020 Cost at 1 January Intangible assets and goodwill, 2021 Intangible assets and goodwill, 2020 946 MILLION EUR 931 MILLION EUR Goodwill 75% Licences and trademarks 8% IT and other development projects 17% Goodwill 72% Licences and trademarks 8% IT and other development projects 20% 700 173 472 1,345 Exchange rate adjustments -33 -2 1 -34 Additions 53 53 Disposals -8 -13 -21 Cost at 31 December 667 163 513 1,343 Amortisation and impairment at 1 January -83 -280 -363 Exchange rate adjustments 1 -1 Amortisation and impairment for the year -8 -62 -70 Amortisation on disposals 8 13 21 Amortisation and impairment at 31 December Carrying amount at 31 December -82 -330 -412 667 81 183 931

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