Management believes that the assumptions used in the VIU c alculations represent the best estimates of future development and
is of the opinion that no reasonable possible change in any of the key assumptions mentioned above would cause the carrying
value of the cash generating units to exceed their recoverable amounts. The G roup estimated that a decrease in growth rate by
50 basis points, keeping all other constant, would decrease the 2012 VIU for Belgium, Greece and Romania by €201 million, €60
million and €15 million respectively. An increase of the discount rate by 100 basis points, keeping all other constant, would
decrease the 2012 VIU for Belgium, Greece and Romania by €444 million, €104 million and €40 million, respectively. A
simultaneous increase in discount rate and decrease in growth rates by the before mentioned amounts would not result in the
carrying amount of Belgium, Greece or Romania exceeding the VIU. Alter natively, a reduction in the total projected future cash
flows by 10%, keeping all other constant, would decrease the 2012 VIU for Belgium, Greece and Romania by €258 million, €96
million and €37 million, respectively and would not result in the carrying amount of Belgium, Greece or Romania exceeding the
VIU.
Considering the expected growth of the relatively young operations in the Maxi countries, the recoverable amount of these
countries has been determined based on FVLCTS calculations. Delhaize Group impaired 100% of the goodwill related to
Bulgaria, Bosnia H erzegovina and Montenegro and recognized a €85 million impairment loss with respect to the Serbian
goodwill. The G roup believes that this brings the value of the operations in line with its revised current expectations and reflects
market conditions in the various countries, resulting from less optimistic expectations on gro wth rates, due to lower sales square
meters assumptions, and higher competitive environment compared to the initial assumptions applied, having a negative impact
on revenue growth, despite maintaining profitability. The key assumptions used and the recognized impairment losses were as
fo llows
Perpetual Pre-tax Loss
Growth Rate discount rate (in millions)
Se
Bu
Bo
The G roup estimated that a decrease in growth rate by 50 basis points, keeping all other constant, would further decrease the
FVLCTS fo r Serbia by €16 million. An increase of the discount rate by 100 basis points, keeping all other constant, would
decrease the FVLCTS by €72 million. A simultaneous increase in discount rate and decrease in gro wth rates by the before
mentioned amounts would result in the carrying amount of Serbia exceeding the FVLCTS by an additional €84 million.
Alte rnatively, a reduction in the total projected future cash flows by 10%, keeping all other constant, would result in the carrying
amount of Serbia exceeding the FVLCTS by an additional €68 million.
Impairment losses are recognized in profit or loss in "Other operating expenses" (Note 28).
As a result of the decision to dispose the Group's Albanian operations (see Note 5.2), relating goodwill has been fully impaired to
reflect the measurement of Al b ania at FVLCTS, as required by IFRS 5. The remeasurement loss has been included in Result
from discontinued operations (net of tax) (Note 5.3).
3.7%
14.6%
RSD
9 616
ulgari a
2.7%
10.7%
BGN
30
osnia Herzegovina
2.3%
16.1%
BAM
50
lontenegro
3.4%
14.1%
EUR
10
ota l
EUR
136
98 DELHAIZE GROUP FINANCIAL STATEMENTS'12
