216 | CapitaLand Limited Annual Report 2014
Appendix
Notes to the Financial Statements
Year ended 31 December 2014
38 OPERATING SEGMENTS
Management determines the operating segments based on the reports reviewed and used by the Executive
Management Council for strategic decisions making and resources allocation. For management purposes, the
Group is organised into strategic business units based on their products, services and geography.
The Group has four main businesses – CapitaLand Singapore, CapitaLand China, CapitaMalls Asia (CMA) and
The Ascott Limited (Ascott). The Group’s businesses in Singapore and China exclude that of CMA and Ascott,
are under CapitaLand Singapore and CapitaLand China respectively. CMA and Ascott are the other two main
business units and they operate across geographies that CapitaLand is in.
The Group’s reportable operating segments are as follows
(i) CapitaLand Singapore – owner/manager of commercial and industrial properties and develops residential
properties in Singapore and Malaysia for sale.
(ii) CapitaLand China – involves in the residential, commercial and integrated property development in China.
(iii) CapitaMalls Asia – shopping mall owner/manager with portfolio in Singapore, China, India, Japan and
Malaysia.
(iv) Ascott – an international serviced residence owner-operator with operations in key cities of Asia Pacimc,
Europe and the Gulf region. It operates three brands, namely Ascott, Somerset and Citadines.
(v) Others – includes Corporate Ofmce, Group Treasury, Surbana (Consultancy), StorHub, Financial Services,
other businesses in Vietnam, Japan and Gulf Cooperation Council countries.
Following the divestment of the Group’s entire interest in Australand, its results are presented as Adiscontinued
operation’ (note 39). Accordingly, Australand ceased to be a reportable operating segment of the Group.
Information regarding the operations of each reportable segment is included below. Management monitors the
operating results of each of its business units for the purpose of making decisions on resource allocation and
performance assessment. Performance is measured based on segment earnings before interest and tax (EBIT).
EBIT is used to measure performance as management believes that such information is the most relevant in
evaluating the results of certain segments relative to other entities that operate within these industries. Group
mnancing (including mnance costs) and income taxes are managed on a group basis and are not allocated to
operating segments. Segment assets and liabilities are presented net of inter- segment balances. Inter-segment
pricing is determined on arm’s length basis.
Geographically, management reviews the performance of the businesses in Singapore, China, Other Asia, Europe
and Others. In presenting information on the basis of geographical segments, segment revenue is based on the
geographical location of customers. Non-current assets and total assets are based on the geographical location
of the assets.
