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CapitaLand Limited
Annual Report 2015
Overview
Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
Financials &
Additional
Information
Notes to the Financial Statements
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, CapitaLand Mall 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) CapitaLand Mall Asia – owner/manager of shopping malls in Singapore, China, India, Japan and Malaysia.
(iv) Ascott – an international serviced residence owner-operator with operations in key cities of Asia Pacific, Europe,
United States of America and the Gulf region. It operates three brands, namely Ascott, Somerset and Citadines.
(v) Others – includes Corporate Office, Group Treasury, StorHub, Financial Services, other businesses in Vietnam,
Indonesia, Japan and Gulf Cooperation Council countries.
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 financing (including finance 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 and EBIT are based on the
geographical location of customers. Non-current assets and total assets are based on the geographical location of the
assets.
