Investor Presentaiton
CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | ACQUISTIONS AND CAPITAL EXPENDITURE
operations in Russia was impaired during 2022 when the
business was reclassified as held for sale.
The impairment testing process includes a sensitivity
analysis in which the CGU specific cash flow estimates were
reduced by 10-40 percent and the discount rates were
increased by 1-4 percentage points. Based on the sensitivity
analysis, the probability for material impairment losses was
very low in all other CGUs, except for the second brand CGU
in China where the value in use with the base scenario
approximates the value of assets employed by the CGU. Even
small deterioration in future cashflows or adverse change in
calculation assumptions would result in recognition of
impairment charge for the China second brand CGU. Due to
this sensitivity, fair value less cost to sell analysis has further
been prepared for the CGU to validate the outcome from
value in use analysis. This analysis supports the recoverable
value provided by the base scenario. On December 31, 2022
goodwill carried by respective CGU amounts to EUR 190.9
million.
Under the basic scenario for other CGUs, the value-in-use
calculations were on average 7.5 times higher than the value
of CGUs' assets employed. The respective ratio for the five
largest CGUS was 6.3; for the five smallest 12.2 and
respectively for the other CGUS 9.7.
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KONE ANNUAL REVIEW 2022View entire presentation