3.7 Goodwill and Intangible Assets with
Indefinite Useful Lives

The Group identifies its cash-generating units (CGUs) by evaluating the composition and monitoring of cash inflows within its business units. Goodwill that arises from business combinations is allocated to the CGU or group of CGUs that is expected to benefit from the synergies of the combination, whereas intangible assets with indefinite useful lives are allocated to the CGU that represents the lowest level of largely independent cash inflows.

Operating under an integrated business model, the Group focuses on developing interconnected ecosystems within its business units. Cash inflows within each business unit are highly interdependent due to cross-platform and cross-brand offerings. The Executive Leadership Team (ELT) monitors and manages performance at the level of the business units, consistent with the Group’s operating and reporting structure.

Accordingly, the Group defines one CGU per business unit, except for the Finance & Insurance business unit, which comprises a group of CGUs due to independent cash inflows.

The following CGUs maintain carrying amounts of goodwill as presented below:

The following CGUs maintain carrying amounts of intangible assets with indefinite useful lives as presented below:

The change in intangible assets with indefinite useful lives within Real Estate relates to the acquisition of the domain immoverkauf24.ch (CHF 524 thousand) and the amortisation of the Publimmo trademark following the 2025 decision to sunset the trademark (CHF 615 thousand). In Finance & Insurance, the change results from the acquisition of the trademark rights for FinanceScout24 (CHF 797 thousand). Further details on these transactions are provided in Note 3.6.

Impairment Testing

Impairment testing for CGUs with goodwill and intangible assets with indefinite useful lives is conducted annually, or more frequently if there are indications of potential impairments. The recoverable amount of a CGU is based on its value in use, calculated using the discounted cash flow (DCF) method.

Free cash flow projections are derived from the business plans approved by the ELT, which cover a five-year period. For free cash flows beyond the detailed planning period, a terminal value is computed by capitalising the normalised cash flows. The cash flow projection entails various assumptions. The key assumptions include:

• Sales growth over the projection period;
• EBITDA margins;
• Long-term growth rates used to capitalise the normalised cash flows; and
• Discount rates applied in the DCF valuation.

Sales growth projections are derived from past experience for existing products, while assumptions for new businesses or products consider market potential, the competitive landscape, and strategic expansion initiatives. EBITDA margins are extrapolated from historical trends, operational efficiency gains, and adjustments for planned business expansions. The long-term growth rates are derived from country-specific inflation expectations and the applied risk-free interest rate, which is based on the implied yield of a ten-year Swiss government bond in local currency. Discount rates are determined using the capital asset pricing model (CAPM) methodology, incorporating current and historical market data, and reflect the total cost of capital on a pre-tax basis.

As in the previous year, impairment testing as at 31 December 2025 did not indicate a need for impairment for any cash-generating unit. In both years, the recoverable amount for all CGUs exceeded the carrying amount relevant for the impairment test.

The cash flow projections beyond the five-year period are based on a long-term growth rate of 0.25% (previous year: 0.45%) for all material CGUs that carry substantial goodwill and intangible assets with indefinite useful lives. The table below shows the pre-tax discount rates applied, based on the pre-tax weighted average cost of capital (WACC).

Sensitivity Analysis

Future impairments of goodwill or intangible assets with indefinite useful lives may arise due to changes in key assumptions used for impairment testing. The potential impact of such changes was assessed by conducting a sensitivity analysis for each CGU to which a significant amount of goodwill or intangible assets with indefinite useful lives are allocated. The analysis is based on changes in key assumptions that are considered to be reasonably possible:

• Reduction in the terminal value in the EBITDA margin by 3.0 percentage points (pp); or
• Increase in discount rate by 1.0 pp; or
• Reduction in the terminal growth rate by 0.3 pp.

The sensitivity analyses conducted as at 31 December 2025 indicate that no reasonably possible change to the key assumptions, as described above, would reduce the recoverable amount to the level of the corresponding carrying amount.

Significant Judgements and Estimates

The calculation of the recoverable amount of each CGU involves management judgement. This includes estimating future expectations for the business units, such as projected cash flows, and determining the discount rate and growth rate derived from historical data and current forecasts.