Registration No. 200301030845 (633265-K) - 96 - 8. Intangible Assets (Cont’d) (b) Impairment of goodwill (Cont’d) The carrying amount of goodwill allocated to the CGU is as follows: 2026 2025 RM RM Rail service 1,047,854 1,099,390 Group The goodwill is assessed at each reporting date regardless of any indication of impairment by comparing the carrying amount with the recoverable amount of the CGU. Following the deconsolidation of Trovon (Australia) Pty. Ltd. on 7 October 2025, the Directors reassessed the CGU to which the goodwill is allocated and the recoverable amount of that CGU, and concluded that no impairment is required. The recoverable amount of the CGU has been determined based on value-in-use calculations using cash flow projections derived from the financial budgets and forecasts approved by management covering a five-year period. Based on the sensitivity analysis performed, management believes that there is no reasonably possible change in key assumptions that would cause the carrying value of the CGU to exceed its recoverable amount. The estimated recoverable amount of the Rail Services CGU significantly exceeds the carrying amount of the CGU. As a result of the analysis, management did not identify an impairment for this CGU. Key assumptions applied in value-in-use calculation: Discount rate: 9.77% (2025: 15.81%), being the Group’s weighted average cost of capital (“WACC”) adjusted for risks specific to the CGU; Revenue growth rate: 3.28% per annum over the five-year forecast period, benchmarked to the projected compound annual growth rate of the global rolling stock market for 2026 to 2031; and Terminal growth rate: 3.28% per annum, applied to cash flows beyond the five-year forecast period, which does not exceed the long-term growth rate of the rail industry in which the CGU operates. These assumptions reflect management’s best estimates of future performance based on internal and external information available at the reporting date. Sensitivity to changes in assumptions The management believes that a reasonably possible change in the key assumptions on which management has based its determination of the CGU’s recoverable amount would not cause the CGU’s carrying amount to exceed its recoverable amount. DESTINI BERHAD 209 ANNUAL REPORT 2026
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