Note G13 Intangible assets
Customer relationships
Capitalised development costs
2021
Goodwill
Platform Trademarks
Total
Opening acquisition value Acquisitions for the year Closing acquisition value
902.8
1,090.4
40.5
241.7
21.1
2,296.6
-
-
-
-
6.5
6.5
902.8
1,090.4 -220.4 -55.4 -275.8
40.5
241.7
27.6 -8.2 -6.8 -15.0
2,303.1 -260.8 -70.7 -331.5 2,303.1 -331.5 1,971.6
G1 G2 G3 G4 G5 G6 G7 G8 G9
Opening accumulated amortisation
-
-32.1
-0.3 -0.3 -0.6
Amortisation for the year
-
-8.2
Closing accumulated amortisation
-
-40.3
As of December 31, 2021 Acquisition value Accumulated amortisation Closing carrying amount
902.8
1,090.4 -275.8
40.5
241.7
27.6
-
-40.3
-0.6
-15.0
902.8
814.7
0.2
241.2
12.7
Customer relationships
Capitalised development costs
G10 G11 G12 G13 G14 G15 G16 G17 G18 G19 G20 G21 G22 G23 G24 G25 G26 G27 G28 G29
2020
Goodwill
Platform Trademarks
Total
Opening acquisition value Acquisitions for the year Closing acquisition value
902.8
1,090.4
40.5
241.7
15.1
2,290.5
-
-
-
-
6.0
6.0
902.8
1,090.4 -165.0 -55.4 -220.4
40.5
241.7
21.1 -2.7 -5.5 -8.2 21.1 -8.2 13.0
2,296.6 -191.6 -69.2 -260.8 2,296.6 -260.8 2,035.8
Opening accumulated amortisation
-
-23.9
-0.1 -0.2 -0.3
Amortisation for the year
-
-8.2
Closing accumulated amortisation
-
-32.1
As of December 31, 2020 Acquisition value Accumulated amortisation Closing carrying amount
902.8
1,090.4 -220.4
40.5
241.7
-
-32.1
-0.3
902.8
870.1
8.4
241.5
For the fiscal year 2021, the Group estimated that SEK 6.5 million meets the criteria for capitalisation 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 annually. Customer relationships, platform and trademarks, like goodwill, are mainly attributable 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 15 and 5 years respectively. Platform refers to intangible assets attributable to websites and apps. The useful life has been estimated at 5 years and the remaining amortisation period is less than 1 year. 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. The TryggaBud brand, which has an acquisition value of SEK 0.6 million, has been fully amortised in 2021. 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) , % 14.3 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 assumed 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.
P1 P2 P3 P4 P5 P6 P7 P8 P9
54 · HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021
Financial statements
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