Note 4 Intangible assets

Reclassification and other movements include a reclassification of software with a value of €47 million from property, plant and equipment as at 1 January 2025.

Goodwill allocation by segment

Of the goodwill allocated to Liander as at year-end 2025, €209 million (2024: €209 million) relates to electricity and gas networks and dates from the contribution of the networks when N.V. Nuon was created in 1999. Of the remainder, amounting to €77 million (2024: €77 million), €61 million relates to the purchase of Endinet in 2010, €7 million to Stam and €9 million to the purchase of AEF B.V. in 2016. The goodwill item in the ‘other’ line concerns the investment relating to TReNT.

At year-end 2025, impairment tests were performed on the carrying amounts of the Liander networks and the TReNT telecommunications networks, including the associated goodwill recognised. The value in use was taken as the basis for these tests and was measured on the basis of the most recent business plans.

In 2025, Liander used a different discount rate for tax, varying from 4.6% in 2026 to 5.7% for the terminal value (2024: 5.9%). The main assumptions on which the business plans are based are the number of connections, the most recent tariff estimates and estimates of operating expenses and other costs. To a large extent, these assumptions are based on past experience, coupled with the latest information on tariff regulation, including the effects of the new regulatory framework from 2027 onwards. The business plans cover a period of five years and the terminal value is calculated using the projected cash flows at the end of that period. A zero growth rate has been applied. The terminal value for the regulated activities is based on achieving the ‘reasonable return’ that a network operator can expect to achieve on its standardised asset value. Where appropriate, account will also be taken in 2026 of temporary or structural synergy effects or other departures from the reasonable return. The individual cost plus framework will apply from 2027 onwards. There is such a margin between the value in use and the carrying amount of the Liander networks that the sensitivity to changes in the estimates and assumptions used is limited.

A pre-tax discount rate of 10.1% was applied for the telecom networks (2024: 8.8%). From the impairment test it emerged that the margin between the value in use and the carrying amount, including goodwill, is such that the sensitivity to changes in the estimates and assumptions used is limited.