FGV Audited Financial Statements 2020

23 INTANGIBLE ASSETS (CONTINUED) (a) Impairment test for goodwill (continued) (i) Sugar business operations in Malaysia (continued) The key assumptions used for the CGU’s VIU calculation are: 2020 2019 Selling price, RM per metric tonne (“MT”) 1,866 - 2,690 1,607 - 2,600 Raw sugar price, US cents per pound 13.2 - 14.5 13.5 - 14.0 Sales volume, MT’000 1,121 - 1,308 1,156 - 1,268 Terminal value growth rate 2% 2% Discount rate 9.0% - 10% 9.0% - 11.4% Exchange rate (RM – USD) RM4.40/USD RM4.20/USD (a) Selling price Selling price is assumed based on ceiling price set by Government for domestic market on 1 September 2018. Industry and export selling prices is estimated based on raw sugar futures price and expected margins from refining of raw sugar. (b) Raw sugar price Raw sugar price is projected in line with New York #11 raw sugar future contracts. (c) Sales volume The sales volume is projected based on expected production volume and current market demand. (d) Terminal value growth rate The terminal value growth rate used is based on long term sustainable growth rates of 2% in the sugar industry in Malaysia. (e) Discount rate The pre-tax discount rate used, reflects specific industry risks relating to the sugar business. (f) Exchange rate The exchange rate is projected based on forward rates as at 31 December 2020. 99 Notes to the Financial Statements For The Financial Year Ended 31 December 2020 Audited Financial Statements 2020