Note 16 Intangible assets
| Intangible assets, external purchase | Intangible assets, internally developed | |||||||||
| Group 2022‚ MSEK | Goodwill | Brands | Customer relations and customer contracts | Tenancies gravel and rock quarries | Other intangible assets | Balanced development costs | Total | |||
| Immateriella tillgångar, externt förvärvade | Immateriella tillgångar, internt utvecklade | |||||||||
| Koncernen 2022. Mkr | Goodwill | Varumärken | Kundrelationer och kundkontrakt | Nyttjanderätter grus- och bergtäkter | Övriga immateriella tillgångar | Balanserade utvecklingsutgifter | Totalt | |||
| Opening acquisition value | Ingående anskaffningsvärde | 3,156 | 222 | 159 | 328 | 309 | 150 | 4,324 | ||
| Purchases | Inköp | 8 | 59 | 67 | ||||||
| Purchases through acquired companies | Inköp via förvärvade företag | 77 | 19 | 1 | 97 | |||||
| Sales/disposals | Försäljningar och utrangeringar | -20 | -5 | -5 | -4 | -34 | ||||
| Reclassifications | Omklassificering | 1 | -1 | 3 | 3 | |||||
| Exchange rate differences | Valutakursdifferens | 121 | 3 | 12 | 8 | 1 | 145 | |||
| Closing accumulated acquisition value | Utgående ackumulerade anskaffningsvärden | 3,334 | 240 | 166 | 335 | 318 | 209 | 4,602 | ||
| Opening depreciation | Ingående avskrivningar | – | -141 | -149 | -121 | -73 | -27 | -511 | ||
| Sales/disposals | Försäljningar och utrangeringar | 5 | 5 | 4 | 14 | |||||
| Depreciation 1) | Avskrivningar 1) | -14 | -4 | -19 | -32 | -18 | -87 | |||
| Exchange rate differences | Valutakursdifferens | -2 | -12 | -1 | -2 | -17 | ||||
| Closing accumulated depreciation | Utgående ackumulerade avskrivningar | – | -152 | -160 | -141 | -103 | -45 | -601 | ||
| Opening write-downs | Ingående nedskrivningar | -44 | – | – | – | – | – | -44 | ||
| Sales and disposals | Försäljningar och utrangeringar | 20 | 20 | |||||||
| Write-downs 2) | Årets nedskrivningar 2) | -1 | -1 | |||||||
| Closing accumulated write-downs | Utgående ackumulerade nedskrivningar | -25 | – | – | – | – | – | -25 | ||
| Closing recognized value | Utgående redovisat värde | 3,309 | 88 | 6 | 194 | 215 | 164 | 3,976 | ||
| Intangible assets, external purchase | Intangible assets, internally developed | |||||||||
| Group 2021‚ MSEK | Goodwill | Brands | Customer relations and customer contracts | Tenancies gravel and rock quarries | Other intangible assets | Balanced development costs | Total | |||
| Immateriella tillgångar, externt förvärvade | Immateriella tillgångar, internt utvecklade | |||||||||
| Koncernen 2021. Mkr | Goodwill | Varumärken | Kundrelationer och kundkontrakt | Nyttjanderätter grus- och bergtäkter | Övriga immateriella tillgångar | Balanserade utvecklingsutgifter | Totalt | |||
| Opening acquisition value | Ingående anskaffningsvärde | 3,092 | 280 | 145 | 271 | 289 | 147 | 4,224 | ||
| Purchases | Inköp | 26 | 27 | 53 | ||||||
| Purchases through acquired companies | Inköp via förvärvade företag | 28 | 7 | 10 | 44 | 89 | ||||
| Sales/disposals | Försäljningar och utrangeringar | -72 | -11 | -22 | -105 | |||||
| Reclassifications | Omklassificering | 10 | 3 | -2 | 11 | |||||
| Exchange rate differences | Valutakursdifferens | 36 | 7 | 4 | 3 | 2 | 52 | |||
| Closing accumulated acquisition value | Utgående ackumulerade anskaffningsvärden | 3,156 | 222 | 159 | 328 | 309 | 150 | 4,324 | ||
| Opening depreciation | Ingående avskrivningar | – | -192 | -131 | -102 | -59 | -31 | -515 | ||
| Depreciation through acquired companies | Avskrivningar via förvärvade bolag | -2 | -2 | |||||||
| Sales/disposals | Försäljningar och utrangeringar | 70 | 11 | 16 | 97 | |||||
| Depreciation 1) | Avskrivningar 1) | -15 | -15 | -17 | -23 | -13 | -83 | |||
| Reclassifications | Omklassificering | -1 | 1 | – | ||||||
| Exchange rate differences | Valutakursdifferens | -4 | -3 | -1 | -8 | |||||
| Closing accumulated depreciation | Utgående ackumulerade avskrivningar | – | -141 | -149 | -121 | -73 | -27 | -511 | ||
| Opening write-downs | Ingående nedskrivningar | -24 | – | – | – | – | -6 | -30 | ||
| Sales and disposals | Försäljningar och utrangeringar | 2 | 6 | 8 | ||||||
| Write-downs 2) | Årets nedskrivningar 2) | -20 | -2 | -22 | ||||||
| Closing accumulated write-downs | Utgående ackumulerade nedskrivningar | -44 | – | – | – | – | – | -44 | ||
| Closing recognized value | Utgående redovisat värde | 3,112 | 81 | 10 | 207 | 236 | 123 | 3,769 | ||
1) Depreciation is recognized in the following lines of the income statement:
| MSEK | 2022 | 2021 | |
| Mkr | 2022 | 2021 | |
| Production costs | Kostnader för produktion | -41 | -49 |
| Sales and administrative expenses | Försäljnings- och administrationskostnader | -46 | -34 |
| Total | Summa | -87 | -83 |
2) Write-downs are recognized in the following line of the income statement:
| MSEK | 2022 | 2021 | |
| Mkr | 2022 | 2021 | |
| Production costs | Kostnader för produktion | -1 | -22 |
| Total | Summa | -1 | -22 |
Goodwill impairment testing in cash generating units
The Peab Group balance sheet 2022-12-31 included total goodwill of SEK 3,309 million (3,112). The table below shows goodwill per group of cash generating units for which goodwill is tested for impairment.
| MSEK | 2022 | 2021 | |
| Mkr | 2022 | 2021 | |
| Construction | Bygg | ||
| Construction Sweden | Bygg Sverige | 76 | 76 |
| Construction Finland | Bygg Finland | 72 | 66 |
| Construction Norway | Bygg Norge | 160 | 155 |
| Civil Engineering | Anläggning | ||
| Civil Engineering Sweden | Anläggning Sverige | 124 | 125 |
| Civil Engineering Norway | Anläggning Norge | 80 | 18 |
| Industry | Industri | ||
| Industry Sweden | Industri Sverige | 1,416 | 1,416 |
| Industry Finland | Industri Finland | 1,324 | 1,201 |
| Industry Norway | Industri Norge | 12 | 12 |
| Industry Denmark | Industri Danmark | 24 | 22 |
| Project Development | Projektutveckling | ||
| Housing Development Sweden | Bostadsutveckling Sverige | 14 | 14 |
| Housing Development Norway | Bostadsutveckling Norge | 7 | 7 |
| Total | Summa | 3,309 | 3,112 |
Goodwill write-downs
The Group has written down goodwill in 2022 by SEK 1 million (20). Write-downs for the year refer to business area Civil Engineering and are due to low profitability in existing operations. For the cash generating units where a calculation of the recovery value was made and no write-down need was identified, it is executive management’s assessment that there is no impending risk of a material write-down of goodwill in the coming financial year.
Method for calculating recovery value
The recovery value for all goodwill values has been derived by calculating the useful value for the cash generating units. The calculation model is based on a discount of forecasted future cash flows compared to the unit’s reported values. These future cash flows are based on five year forecasts produced by the management of the respective group of cash generating units. Goodwill impairment tests have an infinite time horizon and extrapolation of cash flow for the years after the forecast was calculated based on a growth rate from year six onwards of approximately two percent.
Important variables when calculating useful value
The following variables are material and common to all cash generating units in calculation of useful value:
Net sales: The business’ historical development, expected changes in the construction and civil engineering business cycle as well as the real estate sector, general socioeconomic developments, investment plans of public and municipal customers, interest rate levels and local market conditions.
Operating margin: Historic profitability levels and operative efficiency, access to key personnel and qualified manpower, access to internal resources and hikes in salary, material and subcontractor costs.
Working capital requirements: Individual case assessment of whether the working capital reflects the company’s needs or whether it should be adjusted for the forecast period. A reasonable or cautious assumption for future development is that it parallels net sales growth. A high level of internally developed projects may entail a greater need for working capital.
Investment needs: The company’s investment needs are assessed on the investments required to achieve the initially forecasted cash flow, i.e. not including expansion investments.
Tax burden: The tax rate in forecasts is based on Peab’s expected tax situation in Sweden, Norway, Finland and Denmark with regards to tax rates, loss carry-forwards etc.
Discount rate: Forecasted cash flows and residual values are discounted to current value applying a weighted average cost of capital (WACC). Interest rates on borrowed capital have been market adjusted to each country. The required return on equity is based on the Capital Asset Pricing Model. A weighted discount rate after tax has been used in calculating useful values. The discount rate after tax used on cash generating units in Sweden is on average 8.6 percent (7.8), in Norway 8.4 percent (7.8), in Finland 8.6 percent (7.8) and in Denmark 8.3 percent (7.8). The corresponding pre-tax discount in Sweden was on average 8.7 percent (7.9), in Norway 8.5 percent (7.9), in Finland 8.7 percent (7.8) and in Denmark 8.4 percent (7.8).
| Intangible assets, external purchase | ||
| Parent company 2022‚ MSEK | Other intangible assets | |
| Immateriella tillgångar, externt förvärvade | ||
| Moderbolaget 2022. Mkr | Övriga immateriella tillgångar | |
| Opening acquisition value | Ingående anskaffningsvärde | 6 |
| Closing accumulated acquisition value | Utgående ackumulerade anskaffningsvärden | 6 |
| Opening depreciation | Ingående avskrivningar | -2 |
| Depreciation 1) | Avskrivningar 1) | -1 |
| Closing accumulated depreciation | Utgående ackumulerade avskrivningar | -3 |
| Closing recognized value | Utgående redovisat värde | 3 |
| Intangible assets, external purchase | Intangible assets, internally developed | ||||||
| Parent company 2021‚ MSEK | Other intangible assets | Balanced development costs | Total | ||||
| Immateriella tillgångar, externt förvärvade | Immateriella tillgångar, internt utvecklade | ||||||
| Moderbolaget 2021. Mkr | Övriga immateriella tillgångar | Balanserade utvecklingsutgifter | Totalt | ||||
| Opening acquisition value | Ingående anskaffningsvärde | 34 | 25 | 59 | |||
| Sales | Försäljningar | -28 | -25 | -53 | |||
| Closing accumulated acquisition value | Utgående ackumulerade anskaffningsvärden | 6 | – | 6 | |||
| Opening depreciation | Ingående avskrivningar | -5 | -11 | -16 | |||
| Sales | Försäljningar | 4 | 11 | 15 | |||
| Depreciation 1) | Avskrivningar 1) | -1 | – | -1 | |||
| Closing accumulated depreciation | Utgående ackumulerade avskrivningar | -2 | – | -2 | |||
| Closing recognized value | Utgående redovisat värde | 4 | – | 4 |
1) Depreciation is recognized in the following line of the income statement:
| MSEK | 2022 | 2021 | |
| Mkr | 2022 | 2021 | |
| Administration expenses | Administrationskostnader | -1 | -1 |
| Total | Summa | -1 | -1 |