DSV Annual Report 2022
58
DSV Annual Report 2022 Consolidated financial statements 2022
= III
3.1 Impairment testing - continued
The expected future net cash flow is based on budgets and business
plans approved by Management for the year 2023 and projections for
subsequent years up to and including 2026. From 2026 onwards, DSV
expects the growth rate to remain in line with the expected long-term
average growth rate for the industry.
Impairment test
Goodwill was tested for impairment at 31 December 2022. The tests did
not result in any impairment of carrying amounts.
The assumptions used, including a sensitivity analysis, are stated in the
following paragraph. The pre-tax discount rate is calculated in accordance
with IAS 36.
The sensitivity analysis assesses the impact of changes in cash flows and
discount rates on the impairment test results. The analysis concluded that
even negative changes, which are unlikely to occur, will not result in im-
pairment of goodwill in any of the three cash-generating units.
Sensitivity analysis
The sensitivity analysis shows the lowest possible growth rate or highest
possible discount rate in percentage points by which the assumptions
used can change before goodwill becomes impaired.
Other non-current intangible assets, property, plant and equipment
Other non-current assets were also tested for impairment indications to-
gether with goodwill at 31 December 2022. No indication of impairment
was identified in connection with these tests.
Goodwill impairment test at 31 December 2022 (DKKm)
Carrying amount of goodwill
Budget period
Annual revenue growth
Operating margin
Terminal period
Growth
Pre-tax discount rate
2022
2021
Air & Sea
Road
58,877
7,964
Solutions
9,452
Air & Sea
57,893
Road
7,901
Solutions
9,269
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
9.1%
5.6%
11.0%
9.1%
5.6%
11.0%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
11.0%
9.7%
11.1%
7.2%
6.0%
7.3%
Sensitivity analysis
Growth in budget period - allowed decline (percentage points)
23.1%
28.2%
9.0%
28.3%
40.0%
18.4%
Discount rate allowed increase (percentage points)
9.9%
11.0%
2.5%
8.7%
13.2%
4.1%View entire presentation