Page 175 - Annual Report 2014

Notes to the Financial Statements

Year ended 31 December 2014

28 Capital Management
The Group regularly reviews its financial position, capital structure and use of capital, with the objective of achieving long-term

capital efficiency, optimum shareholders’ total returns, including the level of dividends, and proper strategic positioning.

From time to time, the Group may purchase its own shares on the market; the timing of these purchases depends on market
prices. Such share purchases are intended to be used for issuing shares under the StarHub Share Option Plan, StarHub
Performance Share Plan and StarHub Restricted Stock Plan programmes. Other than for such specific purposes, the Group does
not have a defined share buy-back plan.

The Group manages the use of capital centrally and all borrowings to fund the operations of the subsidiaries are managed by
the Company. The capital employed by the Company consists of equity attributable to shareholders, bank borrowings from
financial institutions and medium term note issued.

The Group is not subject to any externally imposed capital requirement.

There were no changes in the Group’s approach to capital management during the year.

29 Commitments
(a) Capital and other financial commitments

Group Company

2014 2013 2014 2013

$m $m $m $m

Contracted and not provided for in the 438.9 376.1 107.6 153.8
financial statements: 378.2 431.5 – –
817.1 807.6
– Capital expenditures 107.6 153.8
– Other operating expenditures

Included in the capital expenditures contracted by the Company is an amount of approximately $4.7 million (2013: $3.9 million)
which has been entered into on behalf of its subsidiaries.

A s at 31 December 2014, the Group has outstanding capital and other financial commitments with related companies
amounting to $15.2 million (2013: $18.9 million).

(b) Operating leases

Future minimum lease payments under non-cancellable operating leases are as follows:

Group Company

2014 2013 2014 2013

$m $m $m $m

Payable: 99.4 100.0 57.2 60.9
– Within 1 year 134.1 156.8 84.0 78.5
– Within 2 to 5 years 60.0
– After 5 years 60.3 4.2 201.2 3.3
293.8 261.0 142.7

Included in the operating lease commitment of the Company is $7.1 million (2013: $7.4 million) which is contracted on
behalf of a subsidiary.

The operating leases include lease of premises and network infrastructure. The leases have varying terms and renewal rights.

As at 31 December 2014, the Group has outstanding operating lease commitments with related companies amounting
172 to $139.8 million (2013: $202.4 million).

many lives of hubbing