Group Overview Operation and Financial Review Financials Other Information Sustainability and Governance Indofood Agri Resources Ltd. 110 Notes to the financial statements For the financial year ended 31 December 2025 16. Goodwill (cont’d) The following assumptions were used to estimate the recoverable amounts: Pre-tax discount rate Growth rate after forecast year Cash generating units Carrying amount of goodwill 31 October 2025 31 October 2024 31 October 2025 31 October 2024 Recoverable amount assessment based on value-in-use Integrated plantation estates of Lonsum 2,909,757 11.52% 12.46% 4.97% 4.95% Plantation estates of PT GS 8,055 11.52% 12.36% 4.97% 4.95% Plantation estates of PT MPI 2,395 11.44% 12.30% 4.97% 4.95% Integrated plantation estates of PT MISP 34,087 11.52% 12.11% 4.97% 4.95% Sub-total 2,954,294 Recoverable amount assessment based on FVLCD Plantation estates of PT LPI 37,230 8.16% 9.49% 4.97% 4.95% Plantation estates of PT SAL 86,996 7.83% 10.36% 4.97% 4.95% Sub-total 124,226 Grand total 3,078,520 The primary selling prices used in the discounted cash flow model are projected prices of CPO, rubber, sugar and logs. • CPO The projected prices are based on the extrapolation of average market prices from reputable independent forecasting service firm for the projection period. • Rubber The projected prices (RSS1 and other rubber products of the Group) over the projection period are based on the extrapolation of actual selling prices and the forecasted price trend from the World Bank. • Sugar The sugar prices used in the projection are based on the extrapolation of actual selling prices during the year, but not exceeding the highest retail price imposed by the Ministry of Trade of Indonesia. • Logs The projected prices of logs are based on the average selling prices of the produce which are extrapolated based on changes of market prices of plywood log. The cash flows beyond the projected periods are extrapolated using the estimated terminal growth rate indicated above. The terminal growth rate used does not exceed the long-term average growth rate in Indonesia. The discount rate applied to the cash flow projections is derived from the weighted average cost of capital of the respective CGUs. Changes to the assumptions used by the management to determine the recoverable amounts, in particular the discount rate, prices, and terminal growth rates, can have significant impact on the results of the assessment. Management is of the opinion that no reasonably possible change in any of the key assumptions stated above would cause the carrying amount of the goodwill for each of the CGU to materially exceed their respective recoverable amounts.
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