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9. Exceptional impairments

x € 1,000
  2011   2010

Plant and equipment   -   16,356
Trade receivables   1,351   208
Covered exceptional impairments   -533   -196
    818   16,368

On each reporting date Roto Smeets Group determines whether there are any indications that any asset should be affected by an extraordinary depreciation. Should such be indicated, then the asset's realisable value has to be estimated. At the end of 2011, the book value of the net assets was higher than Roto Smeets Group's market capitalisation and so it was concluded that there was an indication that assets might possibly be due for extraordinary depreciation. Based on this indication, Roto Smeets Group conducted at the end of 2011 an impairment test on the cash-flow generating operating units Print Productions Nederland, Print Productions foreign (Antok) and Marketing Communications.

The realisable value of the cash-flow generating units is determined based on the indirect or direct market value, whichever is the greater, less the sale costs. The indirect market value is determined based on the cash value of the estimated future cash flows ascribed to the unit. The indirect market value calculation allows for a residual value after the projected period. De after-tax discount rate used in determining the indirect yield is 9% (2010: 9%).

While IAS 36 states that the pre-tax discount rate should be used, and no account may be taken of corporation tax inflow or outflow, in practice the after-tax cash flows are discounted at the after-tax discount rate. Using an after-tax discount rate provides a more practical approach to value determination, while producing the same outcome.

For Print Productions Netherlands, the indirect market value is derived from the 2012 budget forecast and the Medium Term Plan up to and including 2016. The 1% change to expected EBITDA results in a € 2 mln change of the value in use. Changing the discount rate by 0.25% changes the value in use by € 3 mln. For Print Productions Foreign, the direct market value is determined inter alia on the basis of valuations of buildings and machinery.

The results of the conducted impairment analysis on 31 December 2011 has not led to a necessary adjustment of net assets.

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