Page 197 - MSM_AR2020

SUSTAINABILITY EFFECTIVE CORPORATE FINANCIAL ADDITIONAL DETAILS OF THE ANNUAL
REPORT LEADERSHIP GOVERNANCE STATEMENTS INFORMATION GENERAL MEETING

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

19 INTANGIBLE ASSETS (CONTINUED)

Goodwill (continued)
2020
VIU
Key assumptions Sensitivity Higher/(Lower) by
RM’000
Exchange rate Reduce by RM0.13/USD 202,700
Raw sugar price * 154,800
Domestic and industry sales volume Domestic reduce by 28mt - 88mt; 195
Industry reduce by 33mt - 131mt; (321,700)
Discount rate Discount rate reduce by 1% 417,400
Capital expenditure Increase by RM79m (87,100)
Selling premium Reduce in selling premium by
USD50/mt (11,000)
* Raw sugar price increase by RM0.50/USD in FY2021, reduce by RM0.75/USD in FY2022, reduce by RM2.90/USD in FY2023
and constantly reduce by RM0.30/USD in FY2024 to FY2028.

2019
VIU MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020
Key assumptions Sensitivity lower by
RM’000
Domestic selling price Reduce RM50/MT 262,359
Raw sugar price Increase by 0.5 cents/lbs 340,519
Terminal value growth rate Reduce by 1% 222,855
Domestic sales volume Reduce by 5% 197,322
Discount rate Increase by 1% 308,443
Exchange rate Increase by RM0.20/USD 532,854

A reduction in domestic selling price by RM36/MT, increase in raw sugar price by 0.2 cents/lbs, reduction 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/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.