CapitaLand Investment Limited - Annual Report 2021

261 CapitaLand Investment Limited 260 Annual Report 2021 Notes to the Financial Statements Notes to the Financial Statements 36 SIGNIFICANT RELATED PARTY TRANSACTIONS (continued) The Group 2021 2020 $’M $’M Fellow subsidiaries under the immediate holding company Management fee income 29 32 IT support services income 22 31 Rental income 6 9 Administrative support services income 4 7 Management fee expenses (42) (47) Rental expense (3) (6) Purchase consideration for the acquisition of investment – 2,616 Capital contribution in joint venture 332 – Others * (3) Associates and joint ventures Management fee income 427 387 Construction and project management income 8 4 Rental expense (3) (3) Fees from acquisition and divestment fees, accounting service fee, marketing income and others 188 104 Proceeds from sale of investment properties 298 – Proceeds from sale of investments 553 66 Remuneration of key management personnel Salary, bonus and other benefits 8 2 Employer’s contributions to defined contribution plans * * Equity compensation benefits 5 1 13 3 * Less than $1 million 37 OPERATING SEGMENTS Management determines the operating segment based on the reports reviewed and used for strategic decision making and resources allocation. The Group organises its reporting structure into segments by business activities to more accurately reflect the way the Group manage its businesses. For segment reporting purpose, the Group’s primary segment is based on business activities. The Group’s secondary segment is reported by geographical locations. The Group’s reportable operating segments are as follows: (i) Fee Income-related Business involves investment and asset management of listed and unlisted funds, lodging management and project management. (ii) Real Estate Investments Business involves investments in real estate assets and related financial products. (iii) Corporate and Others. Information regarding the operations of each reportable segment is included below. Management monitors the operating results of each of its primary segments for the purpose of making decisions on resource allocation and performance assessment. Performance is measured based on segment earnings before interest, tax, depreciation and amortisation (EBITDA). EBITDA 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. In term of secondary segment, the Group presents its businesses based on geographical locations based on Singapore, China, other emerging markets and other developed markets.