Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 210

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 19
Chunk 210
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 projections are based on forecasts over a five-year period,
which have been approved by senior management.

The key estimates used for the value
in use calculations and sensitivity to changes in assumptions are as follows:

                                                                                                                               As of February 28/29                  
  Key estimates applied in value in use calculation                                                    CGU                                     2025                  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Revenue growth rate                                                                                                                                                
  This is the average annual compound growth rate in revenue that is derived from                      Mozambique                                         3       -  
  management’s forecast and is based on external available information, such as GDP and                Portugal                                          19      16  
  industry growth rate within the region.                                                              Spain                                             23      19  
                                                                                                       Karooooo Logistics                                 4      27  
  The growth rate applied for revenue is considered to be the main driver of profitability                                                                           
  Terminal growth rate                                                                                                                                               
  The estimated rate of growth after the five-year forecast period. This rate is informed              Mozambique                                         6       -  
  primarily by external forecasts about economic activity by region. Changes in these rates            Portugal                                           2       2  
  are reflective of changes in market views on the economic growth in those regions.                   Spain                                              2       2  
                                                                                                       Karooooo Logistics                                 5       5  
  Discount rate                                                                                                                                                      
  . The rate reflects the specific risks relating to the country and industry in which the entity      Mozambique                                        36       -  
  operates. These rates were determined using externally available information. The rates              Portugal                                          16      16  
  were determined using the Weighted Average Cost of Capital model. The rate is a pre-tax rate.        Spain                                             16      16  
                                                                                                       Karooooo Logistics                                39      35  

For Spain, Portugal and Karooooo Logistics,
the Group has applied a 50 basis point (2024: 50 basis point) increase and decrease to the revenue growth rates, terminal growth rates
and discount rates used in the impairment testing. The sensitivity test does not result in impairment.

During the year ended February 28, 2025, the operating environment
in Mozambique is impacted by ongoing political and economic instability, which has introduced significant uncertainty regarding the near-to
medium-term outlook for the country. The continued country-specific uncertainty has made the operating environment challenging. As a result,
the Group recognized goodwill impairment