Note 9 - Tangible fixed assets
NWG // FINANCIAL INFORMATION //
THE GROUP
are based on the five year forecast adopted by the Board ( 2024- 2028 ) and thereafter a terminal growth of 2 ( 2 )%. Based on the tests and analyzes that have been carried out , there is currently no need for impairment . While management believes that estimates of future cash flows and assumptions are reasonable , there are uncertainties which could affect the valuations . Sensitivity analyzes per operating segment are described below .
Corporate 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 ( 2024-2028 ).
A sensitivity analysis shows that the value can be maintained even if the annual growth rate decreases by 3 ( 4 ) percentage point , the operating margin decreases by 5 ( 9 ) percentage points or if the WACC increases by 4 ( 7 ) percentage points .
Gifts & Home Furnishings
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 8 ( 7 ) percentage points , the operating margin decreases by 12 ( 12 ) percentage points or if the WACC increases by 16 ( 14 ) percentage points .
Sports & Leisure
Most of the sales occur on the Swedish market and in the retail sales channel . The segment has two cash-generating units and monitoring of the value in use has been carried out on the cash-generating unit Gifts . Destination Kosta has no intangible assets , therefore no sensitivity analysis has been performed on this cash-generating unit . 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 ( 2024-2028 ).
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 1 ( 1 ) percentage point or if the WACC increases by 2 ( 1 ) percentage point .
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
Note 9 - Tangible fixed assets
Summary owned and leased assets SEK million |
2023 |
2022 |
Buildings and land - owned assets |
373.1 |
343.2 |
Equipment , tools and installations - owned assets |
442.8 |
296.5 |
Buildings and land - leased assets |
499.0 |
628.5 |
Equipment , tools and installations - leased assets |
42.9 |
51.4 |
Closing book value |
1 357.8 |
1 319.6 |
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
090 // ANNUAL REPORT