Page 133 - KELAG Annual Report 2019
P. 133

of-the-river power plants (Decan CGU and Belaje CGU) in Kosovo of EUR 3.8m. The recoverable
           amount determined based on the value in use came to EUR 30.1m. A WACC after taxes of 9.15%
           was used as the discount rate, which corresponds to an iterative WACC before taxes of 9.80%–
           9.83%. All else being equal, an increase (decrease) in the WACC of 0.5% would decrease (increase)
           the recoverable amount by EUR 1.3m (EUR 1.7m). All else being equal, an increase (decrease) in
           the electricity price assumptions used of 5% would increase (decrease) the recoverable amount
           by EUR 1.0m (EUR 0.9m).

           On  the  back  of  improved  production  volumes  in  connection  with  slightly  better  economic
           framework conditions, there was a reversal of impairment losses of EUR 3.9m at two Romanian
           wind farms (Dudesti CGU and Pogoanele CGU). The recoverable amount determined based on the
           value in use came to 10.6m. A WACC after taxes of 6.05% was used as the discount rate, which
           corresponds to an iterative WACC before taxes of 7.78–8.11%. All else being equal, an increase
           (decrease) in the WACC of 0.5% would decrease (increase) the recoverable amount by EUR 0.3m
           (EUR 0.3m). All else being equal, an increase (decrease) in the electricity price assumptions used
           of 5% would increase (decrease) the recoverable amount by EUR 0.8m (EUR 0.8m). An impairment
           loss of  EUR 1.2m has to be recognised on the Mihai Viteazu CGU in Romania as a result of a
           deterioration in production volumes. The recoverable amount determined based on the value in
           use  came  to  EUR 3.5m.  A  WACC  after  taxes  of  6.05%  was  used  as  the  discount  rate,  which
           corresponds to an iterative WACC before taxes of 5.93%.

           Due  to  the  worsened  long-term  electricity  price  forecasts  and  deteriorated  hydrological
           framework conditions, it was also necessary to recognise an impairment loss at run-of-the-river
           power plants in Bosnia (EHE CGU) of EUR 1.7m). The recoverable amount determined based on
           the value in use came to EUR 13.5m. A WACC after taxes of 9.10% was used as the discount rate,
           which corresponds to an iterative WACC before taxes of 9.83%. All else being equal, an increase
           (decrease) in the WACC of 0.5% would decrease (increase) the recoverable amount by EUR 0.6m
           (EUR 0.6m). All else being equal, an increase (decrease) in the electricity price assumptions used
           of 5% would increase (decrease) the recoverable amount by EUR 0.4m (EUR 0.4m).

           The effects from the impairment tests on the Group’s property, plant and equipment can be
           broken down as follows:
   128   129   130   131   132   133   134   135   136   137   138