2025 in EUR m | Goodwill | Intellectual property | Customer relationships | Capitalized software | Other | Total |
Net book value | ||||||
Balance at January 1, 2025 | 712.3 | 158.9 | 148.1 | 3.1 | 2.0 | 1,024.4 |
Additions | - | - | - | 1.3 | 0.1 | 1.4 |
Reclassifications | - | - | - | 0.1 | (0.1) | - |
Disposal of subsidiaries (Note 7.1) | (3.5) | - | - | - | (0.7) | (4.2) |
Disposals | - | - | - | (0.1) | - | (0.1) |
Amortization charge for the year | - | (2.8) | (14.7) | (1.4) | (0.1) | (19.0) |
Exchange differences | (10.9) | 1.1 | - | - | - | (9.8) |
Balance at December 31, 2025 | 697.9 | 157.2 | 133.4 | 3.0 | 1.2 | 992.7 |
Net book value | ||||||
Cost | 989.4 | 224.4 | 314.2 | 104.7 | 7.4 | 1,640.1 |
Accumulated amortization and impairment | (291.5) | (67.2) | (180.8) | (101.7) | (6.2) | (647.4) |
Balance at December 31, 2025 | 697.9 | 157.2 | 133.4 | 3.0 | 1.2 | 992.7 |
2024 in EUR m | ||||||
Net book value | ||||||
Balance at January 1, 2024 | 709.5 | 161.8 | 160.7 | 3.9 | 1.5 | 1,037.4 |
Additions | - | - | - | 1.2 | 0.7 | 1.9 |
Acquisition of subsidiaries (Note 7.1) | - | 1.2 | 2.2 | - | - | 3.4 |
Disposal of subsidiaries (Note 7.1) | (1.9) | - | - | - | (0.1) | (2.0) |
Amortization charge for the year | - | (2.8) | (14.8) | (2.0) | (0.1) | (19.7) |
Exchange differences | 4.7 | (1.3) | - | - | - | 3.4 |
Balance at December 31, 2024 | 712.3 | 158.9 | 148.1 | 3.1 | 2.0 | 1,024.4 |
Net book value | ||||||
Cost | 1,017.3 | 223.0 | 313.3 | 108.8 | 8.3 | 1,670.7 |
Accumulated amortization and impairment | (305.0) | (64.1) | (165.2) | (105.7) | (6.3) | (646.3) |
Balance at December 31, 2024 | 712.3 | 158.9 | 148.1 | 3.1 | 2.0 | 1,024.4 |
2023 in EUR m | ||||||
Net book value | ||||||
Balance at January 1, 2023 | 712.0 | 157.9 | 176.1 | 16.0 | 2.5 | 1,064.5 |
Additions | - | - | - | 1.9 | - | 1.9 |
Reclassifications | - | - | - | 0.8 | (0.8) | - |
Disposals | - | - | - | (8.1) | - | (8.1) |
Amortization charge for the year | - | (2.8) | (15.3) | (7.0) | (0.2) | (25.3) |
Exchange differences | (2.5) | 6.7 | (0.1) | 0.3 | - | 4.4 |
Balance at December 31, 2023 | 709.5 | 161.8 | 160.7 | 3.9 | 1.5 | 1,037.4 |
Net book value | ||||||
Cost | 1,008.7 | 223.5 | 312.6 | 105.4 | 8.2 | 1,658.4 |
Accumulated amortization and impairment | (299.2) | (61.7) | (151.9) | (101.5) | (6.7) | (621.0) |
Balance at December 31, 2023 | 709.5 | 161.8 | 160.7 | 3.9 | 1.5 | 1,037.4 |
Within capitalized software, the carrying value of internally developed software is EUR 2.7m (2024: EUR 3.0m; 2023: EUR 3.6m). The 2025 additions to the carrying value of internally developed software amount to EUR 1.0m (2024: EUR 1.1m; 2023: EUR 1.9m).
In 2025, the composition of the Group’s Cash Generating Units (“CGUs”) remained unchanged following the restructuring implemented at the end of 2024 for the purpose of impairment testing on goodwill and intellectual property with indefinite useful lives. Goodwill and intellectual property with indefinite useful lives had been allocated to CGUs aligned with the Group’s former operating segments until December 31, 2023. Effective December 2024, the Group revised its segment and CGU structure as part of its strategic realignment, resulting in the establishment of the following CGU groups: Europe, SEA, NA, LATAM, APME and gatesolutions. This updated structure was first reported to the Chief Operating Decision Maker (“CODM”) at the end of 2024, and goodwill was reallocated to the newly formed CGUs based on relative values. An analysis performed at that time, including simulations using the former allocation, confirmed that no impairment existed in accordance with IAS 36 Impairment of Assets. The reportable segments (Note 2.1) correspond to the CGUs.
The recoverable amounts of the CGUs are based on value in use calculations. The value in use of the CGUs is calculated using the discounted cash flow method. These calculations use the expected future cash flows based on the four-year business plan approved by the Board (in 2024 five-year business plan; in 2023 four-year business plan), applying a discount rate which is based on the Weighted Average Cost of Capital (“WACC”).
The carrying values of indefinite life intangibles are allocated to the following CGUs (including key assumptions):
2025 in EUR m | Goodwill | Intellectual property | Revenue growth rate | Discount rate pre-tax | Terminal growth rate |
Europe | 242.5 | 45.0 | 2.3% - 4.9% | 9.6% | 2.4% |
SEA | 150.1 | - | 1.7% - 4.5% | 11.6% | 2.7% |
NA | 63.2 | 34.0 | -0.5% - 3.8% | 10.6% | 4.2% |
LATAM | 18.4 | 7.6 | 3.6% - 10.2% | 20.6% | 8.2% |
APME | 44.2 | 11.4 | 1.5% - 2.7% | 9.8% | 2.7% |
gatesolutions | 179.5 | 12.8 | 7.5% - 11.0% | 9.6% | 2.6% |
Balance at December 31, 2025 | 697.9 | 110.8 | |||
2024 in EUR m | |||||
Europe | 237.4 | 42.8 | 1.9% - 6.2% | 8.8% | 2.3% |
SEA | 154.4 | - | -0.1% - 5.0% | 11.2% | 2.8% |
NA | 72.8 | 35.3 | 2.3% - 5.5% | 9.8% | 4.2% |
LATAM | 18.2 | 7.5 | 2.1% - 23.1% | 29.7% | 19.2% |
APME | 48.8 | 11.2 | 2.7% - 7.0% | 9.2% | 2.8% |
gatesolutions | 180.7 | 13.0 | 5.6% - 13.9% | 9.0% | 2.5% |
Balance at December 31, 2024 | 712.3 | 109.8 | |||
2023(I) in EUR m | |||||
CEE(II) | 182.0 | 27.9 | 5.0% -14.4% | 9.6% | 2.1% |
NWE(II) | 107.8 | 18.8 | 6.6% -21.6% | 9.7% | 2.6% |
SEA | 166.8 | - | 4.0% - 8.9% | 11.9% | 3.1% |
NA | 75.1 | 37.6 | 3.2% - 9.2% | 10.5% | 4.1% |
Emerging Markets - Latin America | 19.5 | 6.8 | 6.0% - 20.5% | 38.0% | 26.9% |
Emerging Markets - Asia Pacific | 47.8 | 9.7 | 5.4% - 16.4% | 10.4% | 2.9% |
deSter | 110.5 | 10.2 | 0.8% - 24.7% | 9.9% | 2.6% |
Balance at December 31, 2023 | 709.5 | 111.0 |
(I)Disclosure based on the Group's former CGUs
(II)Central Europe, Eastern Europe and Middle East ("CEE"); Northern and Western Europe ("NWE")
The terminal value beyond the business plan period was calculated by extrapolating the year four cash flows at constant exchange rates (year five cash flows for 2024 and year four cash flows for 2023) using an eternal growth rate, which does not exceed the long-term average growth rate for the respective markets in which the CGUs operate. Revenue growth rates are based on industry research with respect to volume growth, adjusted for impacts from inflation and market-related price changes expected by management. Management determined projected margins based on past performance and its expectations of market developments. The discount rates reflect specific risk and market characteristics relating to the relevant CGUs.
For all CGUs in 2025 there was no impairment of goodwill or intellectual property with indefinite life. The recoverable amounts exceed the carrying values. The key sensitivities in the impairment test are the discount rate, revenue growth, as well as the terminal growth rate. The Group has carried out a sensitivity analysis, which takes into account changes in one assumption at a time, with the other assumptions remaining unchanged from the original calculation. Based on the sensitivity analysis, neither a 1.0% increase in the discount rate nor a 1.0% reduction in the terminal growth rate would give rise to an impairment for any CGU in 2025. The same conclusion applied in 2024.
In 2023, a 1.0% increase in discount rate had given an impairment indication of around EUR 1.1m in the CEE CGU. However, a 1.0% decrease in the terminal growth rate had not given an impairment indication in 2023, neither in CEE nor in any other CGU.
Goodwill arising on the acquisition of subsidiaries is included in intangible assets. Separately recognized goodwill is tested at least annually for impairment or whenever there are indications of potential impairment, and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. On disposal of a CGU or an operation forming part of a CGU, the related goodwill is included in the determination of profit or loss on disposal. Goodwill disposed of is measured on the basis of the relative values of the operation disposed of and the portion of the CGU retained. Goodwill is allocated to the Group’s operating segments (groups of CGU’s), being the lowest level at which the goodwill is monitored for internal management purposes.
Other intangible assets comprise intellectual property, customer relationship assets from acquisitions and capitalized software. Intellectual property comprises trademarks acquired in business combinations. Acquired intangible assets arising from business combinations are capitalized at fair value at the acquisition date. Intangible assets acquired separately are measured initially at cost. For capitalized software, capitalized costs can include purchase consideration, employee and consultant costs, and an appropriate portion of relevant overheads. Only costs that are directly associated with the purchase or internal development of identifiable software products controlled by the Group and that are designed to generate economic benefits exceeding costs beyond a one year time horizon, are recognized as capitalized software.
The useful lives of intangibles are assessed to be either finite or indefinite. Trademarks are considered to have an indefinite life if they arise from contractual or other legal rights that can be renewed without significant cost, are subject to continuous marketing support, and have no foreseeable limit to their useful economic life. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful life, as follows:
Intangible assets other than trademarks with indefinite useful lives are assessed for impairment when events or changes in circumstances indicate that the carrying value may not be fully recoverable. The useful life is reviewed annually and changes are made on a prospective basis.
Trademarks with indefinite useful lives are tested for impairment at least annually or whenever there is an indicator of potential impairment. The useful life of a trademark with indefinite useful life is reviewed annually to determine whether an indefinite life assessment continues to be supportable. If not, any changes are made on a prospective basis.
Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested at least annually for impairment or whenever there are impairment indicators. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying value exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs of disposal and its value in use. For the purpose of assessing impairment, assets are grouped at the lowest level for which cash inflows are separately identifiable, or in the case of goodwill and intellectual property, at the level of the reportable segments. Non-financial assets other than goodwill that previously suffered impairment are reviewed for possible reversal of the impairment at each reporting date.
At least once a year goodwill and intangible assets with indefinite useful life are tested for impairment. The impairment testing is based on value in use calculations requiring estimation of future sales and appropriate discount rates.