Note 9- Tangible fixed assets
NWG // FINANCIAL INFORMATION //
THE GROUP
could affect the valuations. Sensitivity analyzes per operating segment are described below.
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 5( 8) percentage points, the operating margin decreases by 10( 12) percentage points or if the WACC increases by 10( 16) 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( 2025-2029).
A sensitivity analysis shows that the value can be maintained even if the annual growth rate decreases by 3( 3) percentage point, the operating margin decreases by 2( 5) percentage points or if the WACC increases by 3( 4) percentage points.
Gifts & Home Furnishings
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( 2025-2029).
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 1( 2) percentage point.
Note 9- Tangible fixed assets
Summary owned and leased assets SEK million |
2024 |
2023 |
Buildings and land- owned assets |
511.9 |
373.1 |
Equipment, tools and installations- owned assets |
477.7 |
442.8 |
Buildings and land- leased assets |
639.0 |
499.0 |
Equipment, tools and installations- leased assets |
57.2 |
42.9 |
Closing book value |
1,685.7 |
1,357.8 |
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
108 // ANNUAL REPORT