Danone // 2020 Universal Registration Document

DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 94 4.1 Consolidated financial statements and notes to the consolidated financial statements Note 10. Intangible assets Impairment tests carried out as of December 31, 2020 Combination of the Early Life Nutrition Asia, Early Life Nutrition Rest of the World and Advanced Medical Nutrition CGUs Following the integration of the early life nutrition and advancedme- dical nutrition activities, which was finalized in 2020, the Specialized Nutrition Reporting Entity was reorganized with management of the Early Life Nutrition Asia, Early Life Nutrition Rest of the World and Advanced Medical Nutrition CGUs now carried out on a centralized and global basis. Consequently, Danone combined these CGUs within a single Global Specialized Nutrition CGU, the Group having previously ensured that no impairment provision should have been recognized in respect of the CGUs before they were combined. Assumptions used In its business plans, the Group has projected the effects of the Covid-19 pandemic crisis on its various businesses over the entire duration of the plans to reflect the uncertainty as to its magnitude and duration (see below) Carrying amount and assumptions concerning long-term growth rate and discount rate in respect of the CGUs or groups of CGUs As of December 31 Carrying amount of goodwill and brands with indefinite useful lives Long-term growth rate (g) Discount rate (g) (in € millions) 2019 2020 2019 2020 2019 2020 EDP Noram 8,634 7,805 1 to 2.5% 1 to 2.5% 6.5% 6.6% Centrale Danone 229 189 2.0% 2.0% 8.0% 8.8% Danone CIS (a) 314 240 3.0% 3.0% 7 to 13% 7 to 13% Europe 2,612 2,593 0 to 2.5% 0 to 2.5% 7 to 10% 7 to 9% Other CGUs (b) 292 238 0 to 3% 0 to 3% 7 to 19% 7 to 19% Total EDP 12,081 11,064 • Of which goodwill 8,811 8,129 • Of which brands with indefinite useful lives (c) 3,269 2,935 Waters Danone Waters France 428 428 1% 1% 6.5% 6.6% Other CGUs (d) 277 288 0 to 3% 0 to 3% 7 to 19% 7 to 24% Total Waters 704 716 • Of which goodwill 518 536 • Of which brands with indefinite useful lives (e) 186 180 Specialized Nutrition Global Specialized Nutrition 11,388 10,664 2.5% 2.5% 7 to 9% 6.8% Happy Family 181 166 2.5% 2.5% 6.6% 6.8% Total Specialized Nutrition 11,569 10,830 • Of which goodwill 8,796 8,351 • Of which brands with indefinite useful lives (f) 2,772 2,478 Total 24,354 22,610 • Of which goodwill 18,125 17,016 • Of which brands with indefinite useful lives 6,227 5,594 (a) Consists mainly of Russia and Ukraine. (b) More than 10 CGUs. (c) Consists of several brands, the most material of which are International Delight , Alpro and Silk . (d) Consists mainly of the Waters Asia CGU and other CGUs, none of which exceeded €150 million as of December 31, 2020 or December 31, 2019. (e) Consists of several brands, the largest of which is Volvic . (f) Consists of several brands, the largest of which are Nutricia and Milupa . (g) Rates applied to goodwill.