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ENAV Group Consolidated Financial Statements

Impairment losses totalling € 530 thousand refer to certain parts of projects that
were no longer usable and thus charged to the Income Statement.
The total amortisation for the financial period is € 12,367 thousand (€ 16,884
thousand at 31 December 2014).
Goodwill refers to the excess of price paid to acquire the subsidiary Techno Sky
S.r.l. over the fair value of its net assets, which represents future economic benefits.
This balance, amounting in total to € 66,486 thousand, has been allocated to the
Maintenance Services CGU which coincides with the legal entity Techno Sky S.r.l.
At 31 December 2015, in applying the methodology required by IAS 36 Impairment
of assets, goodwill was subject to an impairment test, which was carried out by
comparing the recoverable amount of the CGU with the carrying amount of the net
assets related to this unit, in accordance with IAS 36. Reference was made to the
value in use in calculating the recoverable value. The discount rate used is the WACC
at 7.2%, with a growth rate of the operational cash flows in nominal terms of 1.5%,
in line with current reference macro-economic prospects.
In this regard, we note that management conducted a comparative analysis on the
margin levels identified for a panel of listed and unlisted companies comparable
to Techno Sky. The study showed that the EBITDA margin assumed in the plan
for Techno Sky currently tends towards the average sector margins. Based on this
consideration, management decided to use as an estimate for the recoverable value,
the value in use estimated on the basis of the cash flows deriving from the new
economic-financial plan 2016–2019 prepared by the subsidiary, without conducting
any additional normalisations on the expected margin levels.
The test produced a recoverable value that was higher than the CGU’s book value,
and consequently, no impairments were recognised. The recoverable value for the
purposes of the impairment test reflects a surplus (headroom) compared to the
corresponding book value of approximately € 22.6 million.
For the sensitivity analysis, an increase of 0.5% was assumed for the WACC, and by
maintaining the growth rate at 1.5%, the recoverable value continues to be higher
to the net assets’ book value relating to the CGU for an amount of € 13.3 million.
Assuming a 0.5% increase in the WACC and a growth rate of 1%, the recoverable
value would continue to be higher than the CGU’s net asset carrying value for € 6.4
million.
There are no plausible changes envisaged to the key parameters for the impairment
test, to the extent that such would reduce the excess of the value in use over the
carrying value of the CGU’s asset to zero.

104 ENAV - Annual financial report 2015