Note G14 Tangible non-current assets
For the fiscal year 2022, the Group estimated that SEK 13.7 million meets the criteria for capitalization of development costs, see Note G1 for accounting principles. Goodwill is attributable to the acquisition of Hemnet Sverige AB Group in 2017. The useful life is deemed to be indefinite with impairment testing done annu - ally. Customer relationships, platform and trademarks, like goodwill, are mainly att - ributable to the acquisition of Hemnet Sverige AB Group in 2017. Customer relationships are attributable to acquired customer relationships to real estate agents and advertising. The useful life of customer relationships attributable to real estate agents has been estimated to be 20 years and customer relationships attributable to advertising has been estimated to be 10 years. The remaining amortisation period amounts to 14 and 4 years respectively.
Equipment
31/12/2022 31/12/2021
Opening acquisition value Acquisitions for the year Disposals for the year Closing acquisition value
11.0
10.5
1.8
0.5
-0.7 12.0 -9.7 -1.1
-0.0 11.0 -8.7 -1.0
G1 G2 G3 G4 G5 G6 G7 G8 G9
Opening accumulated depreciation
Depreciation for the year Disposals for the year
0.7
0.0
Closing accumulated depreciation
-10.1
-9.7
Closing carrying amount
2.0
1.3
Note G15 Leases The company's leasing liability consists mainly of the head office's contract for premises in Stockholm. The lease for the headquarters premises has been extended by two months until November 2022. The company has entered into an agreement for a new premises for the head office in Stockholm from 1 Januari, 2023. This increases the right-to-use assets and leasing liabilities by SEK 56.5m as per 1 January, 2023. The table below shows the value of right of use assets and leasing liabilities and the change during the period: Right of use assets
Platform refers to intangible assets attributable to websites and apps. The useful life was 5 years and the assets is now fully amortised.
G10 G11 G12 G13 G14 G15 G16 G17 G18 G19 G20 G21 G22 G23 G24 G25 G26 G27 G28
Trademarks is attributable to the value in Hemnet as a brand which is held with ownership rights. The Company does not see any limitation in the useful life of the Hemnet trademark and the useful life is therefore considered indeterminable. Impairment testing of goodwill and trademarks Management assesses the company's performance based on the Group's overall results. This means management has determined that there is only one cash-generating unit. Goodwill and trademarks are thus monitored by management at the Group level. The recoverable amount for goodwill and trademarks with an indefinite useful life 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 forecasts approved by company management and covering a five-year period. Cash flows beyond the five-year period are extrapolated using the estimated growth rate as stated below. The growth rate is considered reasonable given the company's historical growth and market conditions. Material assumptions that have been used when calculating value in use: Discount rate before tax 1) , % 14.7 Long-term growth rate 2) , % 2.0 1) Pre-tax discount rate used in the present value calculation of estimated future cash flows. 2) Growth rate used to extrapolate cash flows beyond the budget period. The discount rate used is stated before tax and reflects the specific risks that exist for the Group. The most significant assumptions during the five-year forecast period are sales growth and profitability development, where the operating margin is ass - umed to increase as a result of sales growth. No impairment needs for goodwill and/or trademarks have been identified for the fiscal year. Sensitivity analysis The recoverable amount exceeds the carrying amount of operating capital by a good margin. This also applies to each individual assumption that: – the discount rate before tax had been 1 percentage point higher, – the estimated growth rate to extrapolate cash flows beyond the five-year period was 0 percent, – a decrease in the assumption of sales growth of 2 percentage points in the forecast period and an assumption of unchanged operating margins. Nothing of the above would result in any impairment.
Leasing liabilities
Offices
Total
As of January 1, 2022 Additional contracts Depreciation for the year
6.8 1.3 -7.5
6.9 1.3 -7.5
5.2 1.3
Interest expenses
0.1
Payments
-6.5 0.0
As of December 31, 2022
0.6
0.6
Right of use assets
Office equipment
Leasing liabilities
Offices
Total 12.7
As of January 1, 2021 Additional contracts Depreciation for the year
12.6
0.1
11.3
1.4
1.4
1.4
-7.2
-0.1
-7.3
Interest expenses
0.2
Payments
-7.7
P1 P2 P3 P4 P5 P6 P7 P8 P9
As of December 31, 2021
6.8
0.0
6.9
5.2
The table below shows the amounts reported in the income statement: Right of use assets 2022
2021
Depreciation of right of use assets Interest expenses for leasing liabilities
7.5 0.1 0.1 7.7
7.3 0.1 0.1 7.5
Short-term leasing
Total amount reported in year-end results
Future leasing fees are shown in the table below: Maturity analysis (undiscounted flows)
31/12/2022 31/12/2021
Year 1 Year 2 Year 3 Year 4 Year 5
- - - - -
5.2 0.0
- - -
Total
-
5.2
Financial statements
Hemnet Group | Annual and sustainability report 2022 · 59
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