Positioning for the Future | 221
Appendix
Economic Value Added Statement
Note
2014
S$ million
2013
S$ million
Restated*
Continuing and Discontinued Operations
1HW 2SHUDWLQJ 3URÀW %HIRUH 7D[
1,046.6
885.7
Adjust for
Share of results of associates and joint ventures
986.2
925.0
Interest expense
446.1
545.4
Others
61.0
85.8
$GMXVWHG 3URÀW %HIRUH ,QWHUHVW DQG 7D[
2,539.9
2,441.9
Cash operating taxes
1
(319.4)
(385.2)
1HW 2SHUDWLQJ 3URÀW $IWHU 7D[ 123$7
2,220.5
2,056.7
Average capital employed
2
35,573.6
39,443.5
Weighted average cost of capital (%)
3
6.50
6.00
Capital Charge (CC)
2,312.3
2,366.6
Economic Value Added (EVA) [NOPAT - CC]
(91.8)
(309.9)
Non-controlling interests
55.7
(9.6)
Group EVA attributable to owners of the Company
(36.1)
(319.5)
1 The reported current tax is adjusted for the statutory tax impact of interest expense.
2 Monthly average capital employed included equity, interest-bearing liabilities, timing provision, cumulative goodwill and present value of
operating leases.
Major Capital Components:
S$ million
Borrowings
16,033.4
Equity
19,069.8
Others
470.4
Total
35,573.6
3 The weighted average cost of capital is calculated as follows
i) Cost of Equity using Capital Asset Pricing Model with market risk premium at 5.75% (2013 6.00%) per annum;
ii) Risk-free rate of 2.40% (2013 1.32%) per annum based on yield-to-maturity of Singapore Government 10-year Bonds;
iii) Ungeared beta ranging from 0.57 to 1.00 (2013 0.62 to 0.97) based on the risk categorisation of CapitaLand’s strategic business
units; and
iv) Cost of Debt rate at 3.00% (2013 2.89%) per annum using 5-year Singapore Dollar Swap Offer rate plus 150 basis points (2013 200
basis points).
* Comparatives for 2013 have been restated to take into account the retrospective adjustments relating to FRS 110 Consolidated Financial
Statements.
