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190

NOTES TO THE
FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2015

30 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.

31 Commitments Group Company
(a) Capital and other financial commitments
2015 2014 2015 2014
Contracted and not provided for in the financial statements: $m $m $m $m
– Capital expenditures
– Other operating expenditures 285.4 438.9 103.5 107.6
279.0 378.2 – –

564.4 817.1 103.5 107.6

Included in the capital expenditures contracted by the Company is an amount of approximately $2.7 million (2014: $4.7 million)
which has been entered into on behalf of its subsidiaries.

As at 31 December 2015, the Group has outstanding capital and other financial commitments with related companies amounting
to $10.2 million (2014: $15.2 million).

(b) Operating leases
Future minimum lease payments under non-cancellable operating leases are as follows:

Group Company

2015 2014 2015 2014
$m $m
$m $m

Payable: 98.8 99.4 54.0 57.2
– Within 1 year 106.1 134.1 83.1 84.0
– Within 2 to 5 years 210.5 60.3 210.3 60.0
– After 5 years
415.4 293.8 347.4 201.2

Included in the operating lease commitment of the Company is $7.0 million (2014: $7.1 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 2015, the Group has outstanding operating lease commitments with related companies amounting to
$277.6 million (2014: $139.8 million).

32 Subsequent Event

The directors have proposed a final dividend of $0.05 (2014: $0.05) per share, tax exempt (one tier), totalling $86.5 million
(2014: $86.3 million) in respect of the financial year ended 31 December 2015. This proposed final tax exempt dividend has not
been recognised as at year end and will be submitted for shareholders’ approval at the forthcoming Annual General Meeting of
the Company in 2016.