NWG // FINANCIAL INFORMATION // THE GROUP
Corporate
Sales occur in all regions . The assumptions made are that growth will occur on existing markets through an increased market share and also through establishments on new markets . The operating margin and inventory turnover rate are expected to be on current levels . Sales mainly occur in the promo sales channel ( 99 %), which means that a properly balanced inventory is an important component for reaching a good service level .
A sensitivity analysis shows that the value can be maintained even if the annual growth rate decreases by 4 ( 1 ) percentage points , the operating margin decreases by 6 ( 2 ) percentage points or if the WACC increases by 8 ( 2 ) percentage points .
Sports & Leisure
The operating segment ' s sales mainly occur in the retail sales channel . All regions have sales of the segment ' s products . The forecasts include a growth on existing markets through an increased market share . The sales growth is expected to lead to an improved operating margin . The inventory turnover is expected to improve slightly during the forecast period ( 2021-2025 ).
A sensitivity analysis shows that the value can be maintained even if the annual growth rate decreases by 1 ( 1 ) percentage point , the operating margin decreases by 2 ( 1 ) percentage points or if the WACC increases by 2 ( 1 ) percentage points .
Gifts & Home Furnishings
Most of the sales occur on the Swedish market and in the retail sales channel . The assumptions made are that sales are expected to increase on existing markets and that the operating margin will continue to improve . The inventory turnover is expected to increase during the forecast period ( 2021-2025 ).
A sensitivity analysis shows that the value can be maintained even if the annual growth rate decreases by half a ( half a ) percentage point , the operating margin decreases by 1 ( 1 ) percentage point or if the WACC increases by 1 ( 1 ) percentage point .
Note 9 - Tangible fixed assets
Summary owned and leased assets SEK million |
2020 |
2019 |
Buildings and land - owned assets |
316.2 |
349.1 |
Equipment , tools and installations - owned assets |
237.1 |
281.4 |
Buildings and land - leased assets |
691.4 |
758.9 |
Equipment , tools and installations - leased assets |
44.9 |
47.1 |
Closing book value |
1 289.5 |
1 436.5 |
Owned assets
Accounting policies
Tangible fixed assets are recorded at cost less accumulated depreciation and , where applicable , impairment losses . Depreciation is allocated on a straight-line basis over the asset ’ s expected useful life . Depreciation starts when an asset is made available for use . Land is not depreciated . To the extent assets consist of components that differ significantly in respect of useful life , each component is depreciated separately . In determining the depreciable amount for an individual asset account is taken of any residual value of the asset . Cost includes expenses directly attributable to the acquisition of the asset . Cost of tangible fixed assets produced by the Group includes direct manufacturing expenses and shares of attributable indirect expenses . Expenditures on maintenance and repairs are expensed as incurred , but expenditures on significant
084 // ANNUAL REPORT