Financial Statements Notes to the Financial Statements 6. GOODWILL ON CONSOLIDATION AND INTANGIBLE ASSETS (continued) Impairment testing for cash-generating units containing goodwill, brand names and hospital licences (continued) (a) Healthcare services and Labs services CGUs (continued) Key assumptions used in determining recoverable amount (continued) (ii) EBITDA margins assumptions: 2024 2023 Singapore healthcare services 28% – 29% 28% – 29% Malaysia healthcare services 26% – 28% 26% – 28% India healthcare services 21% – 26% 20% – 25% China clinics healthcare services <0% – 10% 1% – 23% Türkiye and Europe healthcare services 21% – 26% 23% – 24% Labs services − India 15% – 28% 18% – 23% − Singapore 25% – 28% 27% – 32% (iii) Terminal value was estimated using the perpetuity growth model: 2024 2023 Singapore healthcare services 1.0% 1.0% Malaysia healthcare services 3.0% 3.0% India healthcare services 4.6% 4.6% China clinics healthcare services 3.0% 3.0% Türkiye and Europe healthcare services 7.0% 7.0% Labs services − India 4.6% 4.6% − Singapore 1.0% 1.0% The terminal values were applied to steady-state estimated earnings at the end of the projected period. (iv) Pre-tax discount rates for the respective CGUs at date of assessment: 2024 2023 Singapore healthcare services 6.6% 7.3% Malaysia healthcare services 7.3% 7.9% India healthcare services 15.5% 8.0% China clinics healthcare services 21.2% 15.9% Türkiye and Europe healthcare services 21.1% – 41.1% 11.2% – 38.4% Labs services − India 15.9% 9.1% − Singapore 6.8% 7.4% (v) There will be no significant changes in government policies and regulations which will directly affect the CGUs’ businesses. With the exception of Türkiye healthcare services, inflation for operating expenses is in line with estimated gross domestic product growth rates for the respective countries based on past trends. IHH Healthcare Berhad | Annual Report 2024 154
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