ESR Interim Report 2020 (EN)

Management Discussion and Analysis The Group continues to closely monitor the interest and exchange rates movements and evaluate such impact to its portfolio. The Group will consider using financial derivatives as additional tools when appropriate to manage foreign currency and interest rate exposures. CHARGE OF ASSETS As at 30 June 2020, certain of the Group’s assets were pledged to secure bank and other borrowings granted to the Group. The details of charged assets are disclosed in Note 15 to the unaudited condensed consolidated financial information. Except for the aforementioned charges, all the Group’s assets are free from any encumbrances. CONTINGENT LIABILITIES As at 30 June 2020, neither the Group nor the Company had any significant contingent liabilities. The Group has exposures to foreign exchange rates fluctuations from subsidiaries and joint ventures from China, Japan, South Korea, Australia, Singapore and India. The Group manages its foreign currency exposure via natural hedges at both projects and corporate levels. Operating and development activities of each countries are funded through project level debts and operating income that are in their respective local currencies. At corporate level, the Group currently fund some of its investments through corporate borrowings in the currency of the country in which the investment is located. The Group has not used foreign currency derivatives to hedge its underlying net investments, but will explore doing so in the future if needed. As at 30 June 2020, currency profile of the Group’s cash and bank balances; and bank and other borrowings are as below: • United States dollars 35% • Singapore dollars 19% • Renminbi 16% • Japanese Yen 15% • Australian dollars 10% • South Korean Won 3% • Hong Kong dollars 1% • Others 1% Cash and Bank Balances As at 30 June 2020 • United States dollars 44% • Renminbi 15% • Japanese Yen 21% • Singapore dollars 18% • Australian dollars 2% Bank and Other Borrowings As at 30 June 2020 16