Page 102 - Restamax Plc Annual Report 2017

The assumptions used in calculating utility value, by testing date:

31/12/2017 31/12/2016
Restaurants Labour hire Restaurants Labour hire
Turnover growth, first year 17.9% 40.7% -0.9% -9.8%
Turnover growth, other years 0.0% 0.0% 0.0% 0.0%
EBITDA 15.1% 11.5% 15.0% 10.4%
Terminal growth assumption 0.0% 0.0% 0.0% 0.0%
Discount rate before taxes 9.4% 9.5% 6.8% 6.8%
Change in net working capital 0.0% 0.0% 0.0% 0.0%

Based on the sensitivity analysis, the following changes in the key items of the calculations may occur at testing time
without creating a need to impair the existing goodwill or non-competition agreements (assuming that no changes
occur in the other key assumptions of the calculations):

31/12/2017 31/12/2016
Restaurants Labour hire Restaurants Labour hire
Annual turnover reduction 1.5% 1.8% 1.3% 1.9%
Annual increase in operating costs 1.6% 2.2% 1.4% 2.0%
EBITDA 7.8% 2.8% 7.8% 1.7%

The company’s utility value is not particularly sensitive to changes in the discount rates used in the calculations.
According to the assessment of the management, when estimated conservatively, no reasonably possible change in
any of the assumptions of the Restaurants and Labour Hire segment will lead to a situation where the recoverable
amount might fall below the book value of the cash-flow generating units.
However, maintaining the levels of utility value calculated requires that, in accordance with the company strategy,
turnover and EBITDA are kept at an acceptable level, competitiveness is retained, new restaurant concepts are
developed, the customer base of labour hire operations is expanded and competitive pricing and reasonable cost
management are maintained through constant supervision.

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