ESR Interim Report 2020 (EN)

Notes to Condensed Consolidated Financial Information 30 June 2020 42 3. OPERATING SEGMENT INFORMATION (continued) Management monitors the results of the Group’s operating segments separately for the purpose of making decisions about resources allocation and performance assessment. Segment performance is evaluated based on reportable segment profit/loss, which is a measure of adjusted profit/loss before tax from continuing operations. The adjusted profit/loss before tax from continuing operations is measured consistently with the Group’s profit before tax from continuing operations except that interest income, finance costs, exchange differences, depreciation and amortisation, equity-settled share option expense, as well as corporate expenses are excluded from such measurement. Intersegment sales and transfers are transacted with reference to the selling prices used for sales made to third parties at the then prevailing market prices. Six months ended 30 June 2020 Investment Fund management Development Total (Unaudited) (Unaudited) (Unaudited) (Unaudited) US$’000 US$’000 US$’000 US$’000 Segment revenue 58,839 83,578 55,224 197,641 – Intersegment sales – 95 – 95 58,839 83,673 55,224 197,736 Reconciliation: Elimination of intersegment sales – (95) – (95) Revenue from continuing operations 58,839 83,578 55,224 197,641 Operating expenses (19,577) (19,222) (68,642) (107,441) Fair value gains on investment properties 26,063 – 99,708 125,771 Changes in fair value of financial assets and liabilities at fair value through profit or loss (10,211) – 11,189 978 Share of profits and losses of joint ventures, net 17,605 – 26,171 43,776 Gain on disposal of subsidiaries – – 5,494 5,494 Dilution of interests in investment in a joint venture – – (2,320) (2,320) Dividend income 35,839 – – 35,839 Segment result 108,558 64,356 126,824 299,738 Reconciliation: Depreciation and amortisation (7,133) Exchange gain 726 Interest income 1,769 Other unallocated gains 537 Corporate and other unallocated expenses (23,497) Finance costs (71,659) Equity-settled share option expense (8,078) Profit before tax from continuing operations 192,403 Other segment information: Depreciation and amortisation (7,133) Capital expenditure* 312,075 Investments in joint ventures 910,505