FGV Audited Financial Statements 2020

23 INTANGIBLE ASSETS (CONTINUED) (a) Impairment test for goodwill (continued) (i) Sugar business operations in Malaysia (continued) Other than as disclosed below, there is no reasonably possible change in any of the above key assumptions, which would cause the carrying value of the CGU to exceed its recoverable amount. 2020 Key assumptions Sensitivity VIU Higher/(Lower) by RM’000 Exchange rate Reduce by RM0.13/USD 202,700 Raw sugar price ** 154,800 Domestic and industry sales volume and discount rate Domestic reduce by 28mt - 88mt; industry reduce by 33mt -131mt; 71,200 Discount rate reduce by 1% Capital expenditure Increase by RM79m (87,100) Selling Premium Reduce in Selling premium by USD50/mt (11,000) ** Increasing raw sugar price by RM0.50/USD in FY2021, reducing by RM0.75/USD in FY2022, reducing by RM2.90/ USD in FY2023 and constantly reducing by RM0.30/USD in FY2024 to FY2028. 2019 Key assumptions Sensitivity VIU lower by RM’000 Domestic selling price Reduce by RM50 per metric tonne 262,359 Raw sugar price Increase by 0.5 cent per pound 340,519 Domestic sales volume Reduce by 5% 197,322 Terminal value growth rate Reduce by 1% 222,855 Discount rate Increase by 1% 308,443 Exchange rate Increase by RM0.20 per USD 532,854 A reduction in domestic selling price of RM36/MT and increase in raw sugar price by 0.2 cents per pound, reduce in terminal value growth rate by 0.6%, increase in discount rate by 0.4%, decrease in domestic sales volume by 3.8% and increase in exchange rate by RM0.06 per USD would, all changes taken in isolation, result in the recoverable amount being equal to the carrying amount. The above sensitivity analysis is based on the movement of individual key assumptions while holding all other assumptions constant. 100 Notes to the Financial Statements For The Financial Year Ended 31 December 2020 FGV HOLDINGS BERHAD Audited Financial Statement 2020