XML 155 R19.htm IDEA: XBRL DOCUMENT
v3.22.1

C1 Intangible assets | 12 Months Ended
--- | ---
Dec. 31, 2021
Disclosure of detailed information about intangible assets [abstract] |
C1 Intangible assets |
|  | Intangible assets
Intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2021 |  |  |  |  | 2020 |
|  | Capitalized development expenses |  |  | Goodwill |  |  | IPR 1) , brands and other intangible assets |  |  |  |  | Capitalized development expenses |  |  | Goodwill |  |  | IPR 1) , brands and other intangible assets |
Cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Opening balance |  |  | 18,049 |  |  |  | 41,592 |  |  |  | 53,913 |  |  |  |  |  | 18,681 |  |  |  | 37,847 |  |  |  | 52,912 |
Acquisitions/capitalization |  |  | 962 |  |  |  | — |  |  |  | 131 |  |  |  |  |  | 817 |  |  |  | — |  |  |  | 396 |
Balances regarding acquired/divested business 2) |  |  | — |  |  |  | 725 |  |  |  | (95) |  |  |  |  |  | — |  |  |  | 7,104 |  |  |  | 3,500 |
Sales/disposals |  |  | — |  |  |  | — |  |  |  | (18) |  |  |  |  |  | (1,256) |  |  |  | — |  |  |  | (48) |
Translation differences |  |  | 147 |  |  |  | 2,646 |  |  |  | 2,005 |  |  |  |  |  | (193) |  |  |  | (3,359) |  |  |  | (2,847) |
Closing balance |  |  | 19,158 |  |  |  | 44,963 |  |  |  | 55,936 |  |  |  |  |  | 18,049 |  |  |  | 41,592 |  |  |  | 53,913 |
Accumulated amortizations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Opening balance |  |  | (10,447) |  |  |  | — |  |  |  | (41,721) |  |  |  |  |  | (10,896) |  |  |  | — |  |  |  | (43,018) |
Amortizations |  |  | (1,343) |  |  |  | — |  |  |  | (1,164) |  |  |  |  |  | (906) |  |  |  | — |  |  |  | (1,083) |
Balances regarding divested business 2) |  |  | — |  |  |  | — |  |  |  | — |  |  |  |  |  | — |  |  |  | — |  |  |  | 35 |
Sales/disposals |  |  | — |  |  |  | — |  |  |  | 18 |  |  |  |  |  | 1,256 |  |  |  | — |  |  |  | 48 |
Translation differences |  |  | (95) |  |  |  | — |  |  |  | (1,589) |  |  |  |  |  | 99 |  |  |  | — |  |  |  | 2,297 |
Closing balance |  |  | (11,885) |  |  |  | — |  |  |  | (44,456) |  |  |  |  |  | (10,447) |  |  |  | — |  |  |  | (41,721) |
Accumulated impairment losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Opening balance |  |  | (3,745) |  |  |  | (6,647) |  |  |  | (7,387) |  |  |  |  |  | (3,745) |  |  |  | (6,647) |  |  |  | (7,403) |
Impairment losses |  |  | — |  |  |  | (112) |  |  |  | (201) |  |  |  |  |  | — |  |  |  | — |  |  |  | (137) |
Translation differences |  |  | — |  |  |  | — |  |  |  | (62) |  |  |  |  |  | — |  |  |  | — |  |  |  | 153 |
Closing balance |  |  | (3,745) |  |  |  | (6,759) |  |  |  | (7,650) |  |  |  |  |  | (3,745) |  |  |  | (6,647) |  |  |  | (7,387) |
Net carrying value |  |  | 3,528 |  |  |  | 38,204 |  |  |  | 3,830 |  |  |  |  |  | 3,857 |  |  |  | 34,945 |  |  |  | 4,805 |
1) | Intellectual property rights.
2) | For more information on acquired/divested businesses, see note E2 “Business combinations.”
The total goodwill for the Company is SEK 38.2 (34.9) billion and is allocated to the operating segments Networks, with SEK 25.8 (24.1) billion, Digital Services, with SEK 3.2 (3.0) billion and segment Emerging Business and Other, with SEK 9.2 (7.8) billion, of which Cradlepoint SEK 7.9 (6.5) billion. Segment Managed Services does not carry goodwill. More information is disclosed in note B1 “Segment information.” Impairment losses In Segment Emerging Business and Other within the CGU iconectiv there was an impairment loss of SEK 176 million during 2021 due to a strategic decision to discontinue a business operation. Intangibles of SEK 64 million is mainly reported on line item Selling and administrative expenses and goodwill of SEK 112 million reported on line item Other operating expenses in the income statement. In Digital Services there was an impairment loss of intangibles of SEK 137 million during 2021 due to product strategy changes, reported on line item Research and development expenses. The impairment losses for 2019 and 2020 is considered immaterial. Goodwill allocation The goodwill allocation has not changed since last year. Goodwill from acquisitions during the year has been allocated to segments Emerging Business and Other in CGUs Cradlepoint and Emodo. Impairment tests Each operating segment is a CGU, except for segment Emerging Business and Other which consists of several CGUs. The value in use method has been used for goodwill impairment testing , which means that the recoverable amounts for CGUs are established as the present value of expected future cash flows based on business plans approved by management. Estimation of future cash flows includes assumptions mainly for the following key financial parameters:
– | Sales growth
– | Development of EBIT (based on EBIT margin or cost of goods sold and operating expenses relative to sales)
– | Related development of working capital and capital expenditure requirements.
The assumptions regarding industry-specific market drivers and market growth are based on industry sources as input to the projections made within the Company for the development 2022–2026 for key industry parameters:
– | By 2026, about 35 years after the introduction of digital mobile technology, it is predicted that there will be 8.8 billion mobile subscriptions (excl. Cellular IoT).
– | The number of mobile subscriptions is estimated to grow from around 8.3 billion by the end of 2022 to around 8.8 billion by the end of 2026. Out of all mobile subscriptions, 7.7 billion will be associated with a smartphone.
– | The number of 5G subscriptions is forecasted to reach 3.7 billion (excl. Cellular IoT) by the end of 2026.
– | By 2026, about 39 billion connected devices are forecasted, of which over 27 billion will be related to Internet of Things, IoT. Connected IoT devices including connected cars, machines, meters, sensors, point-of-sale terminals, consumer electronics and wearables.
– | Cellular IoT is predicted to grow from 2.4 billion devices in 2022 to 4.8 billion devices in 2026.
– | Mobile data traffic volume is estimated to increase by around three times in the period 2022–2026. The mobile traffic is driven by smartphone users and video traffic. Smartphone traffic will grow by around three times, and mobile video traffic is forecasted to grow by around 30% annually through 2026 to account for approximately 75% of all mobile data traffic.
The assumptions are also based upon information gathered in the Company’s long-term strategy process, including assessments of new technology, the Company’s competitive position and new types of business and customers, driven by the continued integration of telecom and data. The business plans for all CGUs, except Cradlepoint and Emodo are based on specific estimates for the five-year forecast period, 2022-2026. The CGUs Cradlepoint and Emodo use a ten-year forecast period 2022-2031. Cradlepoint is operating in a rapidly expanding market with forecasted growth above 25% per year for the next five years. Market maturity and market growth at long-term sustainable levels is not expected to be reached until well beyond 2025, with Cradlepoint forecasting top-line growth above 10% beyond 2030. Emodo applies a 10-year time horizon, taking into consideration the fast-growing AdTech sector and the rapid growth of Emodo within that sector. All CGUs use a nominal annual growth rate of 1.5% (1.0%) per year after the forecast period An after-tax discount rate has been applied for the discounting of projected after-tax cash flows. Rate per CGU:
Post-tax discount rates (%) |  |  |  |  |  |
CGU |  | 2021 |  |  | 2020 |
Networks |  |  | 7.5 |  |  |  | 8.0 |
Digital Services |  |  | 8.0 |  |  |  | 8.0 |
Managed Services |  |  | 8.0 |  |  |  | 8.0 |
Cradlepoint |  |  | 10.0 |  |  |  | N/A |
iconectiv |  |  | 9.0 |  |  |  | 8.0 |
Emodo |  |  | 12.0 |  |  |  | 12.0 |
Red Bee Media |  |  | 9.5 |  |  |  | 8.0 |
There are no reasonable possible change in key assumptions from our sensitivity analysis that would lead to an impairment. The Company’s discounting is based on after-tax future cash flows and after-tax discount rates. This discounting is not materially different from a discounting based on before-tax future cash flows and before-tax discount rates, as required by IFRS. In note A1 “Significant accounting policies,” and note A2 “Critical accounting estimates and judgments,” further disclosures are given regarding goodwill impairment testing. The assumptions for 2020 are disclosed in note C1 “Intangible assets” in the Annual Report of 2020. The Company has considered the effect of the COVID-19 pandemic in the impairment tests and currently expect no material changes to expected future cash flows which could impact recoverability of intangible assets. Risk assessment on the business plans is carried out on a regular basis and an impairment review will be performed if conditions suggest that such assets may be impaired.

X
- References No definition available. + Details
Name: | ifrs-full_DisclosureOfIntangibleAssetsAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 38 -IssueDate 2021-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=38&code=ifrs-tx-2021-en-r&doctype=Standard&dita_xref=IAS38_g118-128_TI -URIDate 2021-03-24 + Details
Name: | ifrs-full_DisclosureOfIntangibleAssetsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration