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StarHub Ltd Annual Report 2015

27 Related Party Transactions

The Company has entered into contractual agreements on behalf of its subsidiaries, and recharges its subsidiaries based on
terms agreed between the parties involved.

In the normal course of business, the Group purchases and sells info-communications services to related companies. The related Overview
party transactions are carried out on terms negotiated between the parties which are intended to reflect competitive terms.

Other than disclosed above and elsewhere in the financial statements, significant transactions of the Group and the Company
with related parties during the financial year were as follows:

Group Company
2015
2015 2014 2014
$m $m $m $m

Ultimate holding company 0.5 0.7 0.5 0.7 Strategy
Sales

Subsidiaries – – 534.7 523.4
Sales
Purchase of services – – 57.6 48.1

Related corporations 70.0 77.6 34.7 33.1 Performance
Sales 19.5 18.1 11.8 13.8
Purchase of property, plant and equipment 81.7 85.1 33.6 37.1
Rental expenses 183.7 151.8 30.2 36.8
Purchase of services 166.1 167.2 165.9 166.8
Purchase of inventories

28 Segment Reporting Governance & Sustainability

Segment information is presented based on the information reviewed by the chief operating decision maker (“CODM”) for
performance assessment and resource allocation.

The CODM assess the Group’s financial performance using performance indicators which include revenue, EBITDA, capital
expenditure and cash flow of the Group.

The Group operates primarily in Singapore in one segment. The Group delivers its Mobile, Pay TV, Broadband, Fixed networks
services and equipment sales on a fully integrated network, customer service, sales, marketing and administration support.

The Group has a large and diversified customer base which consists of individuals and corporations. There was no single
customer that contributed to 10% or more of the Group’s revenue.

Financials