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Financial statements

CONSOLIDATED FINANCIAL STATEMENTS

(in million of euros) 2011* 2011 published Goodwill (21) (11) (21) Intangible assets (5) (24) (5) Property, plant and equipment (36) (83) (85) Financial assets (2) (1) (2) IMPAIRMENT LOSSES (64) (119) (113) 2011* 2011 published (17) (11) (17) (15) (10) (15) (2) (1) (2) ---(4) -(4) (21) (11) (21)

Note 13.2. Impairment losses recognized during the period, net of reversals

Impairment losses recognized in 2011 and 2012 can be analyzed as follows:

* In accordance with IFRS 5, impairment losses of the US Economy Hotels and Onboard Train Services businesses have been reported in profit or loss from discontinued operations (see note 17).

The main assets and cash generating units for which impairment losses were recognized in 2011 and 2012 were as follows:

A. Impairment of goodwill

(in million of euros)

HOTELS

Upscale and Midscale Hotels Economy Hotels Economy Hotels US

OTHER BUSINESSES

TOTAL

* In accordance with IFRS 5, impairment losses on the goodwill of US Economy Hotels and Onboard Train Services businesses have been reported in profit or loss

from discontinued operations (see note 17).

At December 31, 2012, impairment losses resulted mainly from revised estimates of the recoverable amount of goodwill related to the French hotel business (€4 million impairment loss) and to the German hotel business (€7 million impairment loss).

At December 31, 2011, impairment losses resulted mainly from revised estimates of the recoverable amount of goodwill related to the Portuguese hotel business (€8 million impairment loss), the French hotel business (€5 million impairment loss) and the Egyptian hotel business (€4 million impairment loss).

Sensitivity analysis:

The CGU’s value in use is estimated by the discounted cash flows method. The discount rate and the growth rate are the main key assumptions used by the Group to determine the CGU’s recoverable amount.

At December 31, 2011 and December 31, 2012, an increase in the discount rate of 25, 50 or 100 basis points would not have had any impact on recognized impairment losses.

At December 31, 2012, an decrease in the growth rate of 25, 50 or 100 basis points would not have had any impact on recognized impairment losses.

2012 2012

In both 2011 and 2012, analyses showed that, in the case of CGUs for which no impairment was recorded during the year, only a substantial, improbable change in the discount rate in the next twelve months would have caused their net carrying amount to exceed their recoverable amount. For example, the discount rate would have to increase by 1,700 basis points or the growth rate to perpetuity would have to be reduced by 1,000 basis points for their carrying amount to exceed their recoverable amount.

B. Impairment of intangible assets

At December 31, 2012, following a decision by the Group to discontinue certain Mirvac brands and to rebrand certain Mirvac hotels, €13 million in impairment losses were recorded as follows:

a partial write-down of the Sebel brand for €7 million following the rebranding of certain hotels;