2010 REGISTRATION DOCUMENT (3.4 Mo) - Groupe Casino

3CONSOLIDATED FINANCIAL STATEMENTSNotes to the consolidated fi nancial statementsBased on the 2010 goodwill impairment test, which was completed atthe year-end, no impairment losses were recognised at 31 December2010.In view of the positive difference between value in use and carryingamount, the Group believes that on the basis of reasonably foreseeableevents, any changes in the key assumptions set out above wouldnot lead to the recognition of an impairment loss, with the exceptionof the Geimex CGU. For example, a 100-basis point increase in thediscount rate or a 0.5-point decrease in the EBITDA multiple used tocalculate terminal value, or a 50-basis point decrease in the EBITDAmargin in the final year of the projections used to calculate the terminalvalue, would not have led to the recognition of an impairment loss.As regards the Geimex CGU, the 2010 test resulted in a value inuse very close to the carrying amount. A 100-basis point increasein the discount rate or a 0.5-point decrease in the EBITDA multipleused to calculate terminal value or a 50-basis point decrease in theEBITDA margin in the final year of the projections used to calculatethe terminal value would have led to the recognition of an impairmentloss of between €2 million and €6 million for the Group.An independent valuation was carried out for GPA duringDecember 2010 and January 2011, which did not lead to therecognition of any impairment at 31 December 2010.The main assumptions underlying this independent valuation were:GPA’s value in use was estimated on the basis of discounted futurecash flows supported by a multi-criteria analysis based on shareprices and comparable transaction multiples. The discounted cashflows method was considered to be fundamental for GPA. It wasbased on three-year projected cash flows approved by management,plus a further two years of estimated cash flows and a terminal value.The discount rate used was 10.7%. The key assumptions includea revenue growth rate, discount rate and EBITDA multiple (10.7x)used to calculate the terminal value. At 31 December 2010, a 1,300basis-point increase in the discount rate or a 5.8-point decrease inthe EBITDA multiple would have been required to reduce value in useto the carrying amount.NOTE 17. INVESTMENTS IN ASSOCIATESNote 17.1. Movements for the period€ millionsMovements in 2009 adjustedOpeningbalanceImpairmentNet profit forthe periodRetailingChangesin scope ofconsolidationandtranslationadjustmentsClosingbalanceGPA Group associates 10 - 3 - 15 28Franprix and Leader Price associates 75 - 5 (5) 12 87Easy Holland BV 2 - - - (2) -AEW Immocommercial 25 - 2 (4) - 23Property mutual funds (OPCI) – storepremises - - - - 41 41Cdiscount Group associates 2 - (3) - 2 -Easy Colombia 9 - (1) - (9) -TOTAL 122 - 6 (9) 57 178Movements in 2010GPA Group associates 28 - 7 - 4 39Franprix and Leader Price associates 87 - 1 (6) 18 100AEW Immocommercial 23 - 2 (4) - 22Property mutual funds (OPCI) – storepremises 41 - 2 (1) (42) -Poland - - - - - 1TOTAL 178 - 13 (11) (19) 161Movements during the year were mainly due to the derecognition ofOPCI Vivéris and SPF1 as the Group does not exercise significantinfluence over either of these entities.These associates are privately-held companies for which no quotedmarket prices are available on which to estimate their fair value.Transactions with associates are disclosed in note 34.1.Note 17.2. Group share of contingent liabilitiesof associatesAt 31 December 2010 and 2009, there were no contingent liabilitiesin associates.90 Casino Group | Registration Document 2010