EBITDA levels: EBITDA level represent the operating profit before depreciation and amortization. Ref. APM definition. Key assumptions used in estimating value in use and determining the recoverable amount, are sales prices, development in commodity prices, and other relevant information. A forecast is developed for a period of 5 years with projections thereafter. Capital expenditure: A normalized capital expenditure is assumed on a long run. Estimated capital expenditure do not include capital expenditure that significantly enhance the current performance, as such effects generally are not included in the cash flow projections. Discount rates: The rate of return is calculated using the Weighted Average Cost of Capital (WACC) method. The cost of Equity and debt are weighted to reflect the company’s optimal capital structure. Growth WACC Selected key assumptions used 2021 2020 2021 2020 Fiven Norge 1.7% 1.8% 11.8% 20.1% Fiven Brazil 1.7% 1.8% 11.9% 20.1% Fiven Belgium 1.7% 1.8% 11.8% 20.1% Impairment - test results and conclusion The impairment testing was conducted in Q2 2021. In addition, the Group has assessed if there are any indications of impairment as of 31 December 2021. No indications of impairment were detected. None of the assets were assessed to be impaired, as the recoverable amount exceeded the carrying amount for all CGUs. Sensitivity of estimated cash flows An increase of 9 percent in WACC will not result in an impairment for Fiven. A change of long-term growth rate from 1.67 percent to 0 percent, and 20 percent reduction in EBITDA level will not result in an impairment for Fiven. Fiven Annual Report 2021 Financial statements 59
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