12. Intangible assets
€ million |
|
Brand names |
|
Goodwill |
|
Capitalized development costs for products under development |
|
Capitalized development costs for products currently in use |
|
Other intangible assets |
|
Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost Balance at Jan. 1, 2023 |
|
17,633 |
|
26,211 |
|
17,595 |
|
44,949 |
|
15,464 |
|
121,853 |
Foreign exchange differences |
|
−27 |
|
−114 |
|
−8 |
|
23 |
|
−105 |
|
−231 |
Changes in consolidated Group |
|
– |
|
210 |
|
−137 |
|
– |
|
31 |
|
104 |
Additions |
|
– |
|
– |
|
9,275 |
|
1,868 |
|
1,302 |
|
12,445 |
Transfers |
|
– |
|
– |
|
−4,763 |
|
4,763 |
|
219 |
|
219 |
Disposals |
|
10 |
|
2 |
|
35 |
|
966 |
|
323 |
|
1,336 |
Balance at Dec. 31, 2023 |
|
17,596 |
|
26,305 |
|
21,927 |
|
50,638 |
|
16,587 |
|
133,053 |
Amortization and impairment Balance at Jan. 1, 2023 |
|
105 |
|
9 |
|
93 |
|
29,021 |
|
9,385 |
|
38,612 |
Foreign exchange differences |
|
3 |
|
0 |
|
0 |
|
13 |
|
−23 |
|
−7 |
Changes in consolidated Group |
|
– |
|
– |
|
– |
|
– |
|
−40 |
|
−40 |
Additions to cumulative amortization |
|
– |
|
– |
|
– |
|
5,120 |
|
1,298 |
|
6,418 |
Additions to cumulative impairment losses |
|
– |
|
6 |
|
23 |
|
45 |
|
71 |
|
145 |
Transfers |
|
– |
|
– |
|
– |
|
0 |
|
−2 |
|
−2 |
Disposals |
|
10 |
|
2 |
|
0 |
|
954 |
|
212 |
|
1,179 |
Reversal of impairment losses |
|
– |
|
– |
|
– |
|
3 |
|
– |
|
3 |
Balance at Dec. 31, 2023 |
|
98 |
|
13 |
|
116 |
|
33,240 |
|
10,476 |
|
43,944 |
Carrying amount at Dec. 31, 2023 |
|
17,498 |
|
26,292 |
|
21,811 |
|
17,398 |
|
6,111 |
|
89,109 |
€ million |
|
Brand names |
|
Goodwill |
|
Capitalized development costs for products under development |
|
Capitalized development costs for products currently in use |
|
Other intangible assets |
|
Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost Balance at Jan. 1, 2022 |
|
17,661 |
|
26,203 |
|
10,287 |
|
44,806 |
|
13,789 |
|
112,745 |
Foreign exchange differences |
|
−22 |
|
−17 |
|
16 |
|
−125 |
|
155 |
|
7 |
Changes in consolidated Group |
|
5 |
|
75 |
|
1 |
|
40 |
|
110 |
|
232 |
Additions |
|
– |
|
– |
|
9,057 |
|
666 |
|
1,945 |
|
11,668 |
Transfers |
|
0 |
|
– |
|
−1,728 |
|
1,738 |
|
55 |
|
65 |
Classified as held for sale |
|
0 |
|
– |
|
4 |
|
65 |
|
30 |
|
99 |
Disposals |
|
11 |
|
50 |
|
33 |
|
2,111 |
|
560 |
|
2,764 |
Balance at Dec. 31, 2022 |
|
17,633 |
|
26,211 |
|
17,595 |
|
44,949 |
|
15,464 |
|
121,853 |
Amortization and impairment Balance at Jan. 1, 2022 |
|
89 |
|
29 |
|
88 |
|
26,120 |
|
8,731 |
|
35,056 |
Foreign exchange differences |
|
0 |
|
0 |
|
0 |
|
−118 |
|
29 |
|
−89 |
Changes in consolidated Group |
|
– |
|
– |
|
– |
|
7 |
|
9 |
|
16 |
Additions to cumulative amortization |
|
2 |
|
– |
|
– |
|
5,058 |
|
1,111 |
|
6,171 |
Additions to cumulative impairment losses |
|
16 |
|
30 |
|
21 |
|
65 |
|
15 |
|
147 |
Transfers |
|
– |
|
– |
|
0 |
|
1 |
|
−5 |
|
−4 |
Classified as held for sale |
|
– |
|
– |
|
0 |
|
18 |
|
25 |
|
43 |
Disposals |
|
2 |
|
50 |
|
15 |
|
2,095 |
|
481 |
|
2,642 |
Reversal of impairment losses |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
Balance at Dec. 31, 2022 |
|
105 |
|
9 |
|
93 |
|
29,021 |
|
9,385 |
|
38,612 |
Carrying amount at Dec. 31, 2022 |
|
17,528 |
|
26,202 |
|
17,502 |
|
15,929 |
|
6,079 |
|
83,241 |
Other intangible assets comprise in particular concessions, purchased customer lists and dealer relationships, industrial and similar rights, and licenses in such rights and assets.
The allocation of the brand names and goodwill to the operating segments is shown in the following table:
€ million |
|
2023 |
|
2022 |
|---|---|---|---|---|
|
|
|
|
|
Brand names by operating segment |
|
|
|
|
Porsche |
|
13,823 |
|
13,823 |
Scania Vehicles and Services |
|
878 |
|
878 |
MAN Truck & Bus |
|
1,127 |
|
1,127 |
MAN Energy Solutions |
|
415 |
|
415 |
Navistar |
|
784 |
|
813 |
Ducati |
|
404 |
|
404 |
Other |
|
68 |
|
68 |
|
|
17,498 |
|
17,528 |
Goodwill by operating segment |
|
|
|
|
Porsche |
|
18,825 |
|
18,825 |
Scania Vehicles and Services |
|
2,546 |
|
2,548 |
MAN Truck & Bus |
|
587 |
|
587 |
MAN Energy Solutions |
|
263 |
|
263 |
Navistar |
|
2,989 |
|
3,101 |
Ducati |
|
290 |
|
290 |
Škoda |
|
168 |
|
168 |
Porsche Holding Salzburg |
|
125 |
|
126 |
Other |
|
498 |
|
294 |
|
|
26,292 |
|
26,202 |
The impairment test for recognized goodwill and brand names is always based on value in use, which has been determined at the level of the respective brand. In this process, the WACC rates, based on the risk-free rate of interest, a market risk premium and the cost of debt, are applied. For more information on the general approach and key assumptions, please refer to the details provided on intangible assets in the “Accounting policies” section. Moreover, the following aspects were of significance for the brands with material recognized brand names and goodwill:
The Porsche cash-generating unit is based on the assumption that Porsche’s current position as a profitable manufacturer of exclusive sports cars is to be expanded further. Under the “Road to 20” program, the Porsche AG Group has a long-term profitability target of achieving an operating return on sales of more than 20% for the Group.
For MAN Truck & Bus, the year 2023 marked a turnaround, after the positive effects from the realignment program had not been fully leveraged because of the negative impacts of the war in Ukraine in the previous year. After a period of stabilization in 2024, the transformation towards e-mobility will have an increasing effect on cash from fiscal year 2025 onwards.
Moreover, Navistar Sales & Services is to be taken to new levels of strength. The measures applied to this end range from using the powerful component and technology organization within the TRATON GROUP through expanding the financial services business down to making even more effective use of one of the largest independent dealer and service networks in the North American market which Navistar has already access to.
At Scania Vehicles & Services, a rise in sales volume and the expansion of the vehicle services business are additionally having a positive impact on the planned cash flows.
For all cash-generating units, recoverability is not affected by a variation in the growth forecast of – 0.5 percentage points with respect to the perpetual annuity or of + 0.5 percentage point with respect to the discount rate. Due to market volatility in recent years, the planned cash flows were also tested for their sensitivity to reasonably possible changes and their recoverability was established.
Research and development costs developed as follows:
€ million |
|
2023 |
|
2022 |
|
% |
|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
Total research and development costs |
|
21,779 |
|
18,908 |
|
15.2 |
of which: capitalized development costs |
|
11,142 |
|
9,723 |
|
14.6 |
Capitalization ratio in % |
|
51.2 |
|
51.4 |
|
|
Amortization of capitalized development costs |
|
5,187 |
|
5,144 |
|
0.8 |
Research and development costs recognized in profit or loss |
|
15,824 |
|
14,329 |
|
10.4 |