FORWARD TOGETHER 36 Financial Review The Group has delivered solid earnings growth and a strong set of operational results for the year ended 31 December 2022, against a challenging market environment and continued macroeconomic challenges. ESR’s performance demonstrates the Group’s remarkable resilience in its business fundamentals, and unmatched scale as APAC’s leading real assets manager, following the acquisition and integration of ARA Asset Management (“ARA”) and LOGOS. As of 31 December 2022, the Group had a robust and well-capitalised balance sheet with US$1.8 billion in cash and net debt over total assets of 22.8%. Key Financial Highlights: • Revenue increased by 103.0% from US$404.4 million in FY2021 to US$821.2 million in FY2022; • Profit for the year increased by 64.9% from US$382.7 million in FY2021 to US$631.1 million in FY2022; • EBITDA1 increased by 60.9% from US$664.2 million in FY2021 to US$1,068.5 million in FY2022; • Adjusted EBITDA1 increased by 63.0% from US$706.8 million in FY2021 to US$1,151.9 million in FY2022; • Adjusted PATMI1 increased by 73.5% from US$377.3 million in FY2021 to US$654.6 million in FY2022; • Profit for the year increased by 64.9% from US$382.7 million in FY2021 to US$631.1 million in FY2022; and • Full year dividend of HK$25 cents per share (approximately 3.2 US cents per share), implying a 1.9%2 dividend yield. Notes: 1. EBITDA, Adjusted EBITDA and Adjusted PATMI are non-IFRS measures. EBITDA is calculated as profit before tax, adding back depreciation and amortisation and finance costs (net). Refer to non-IFRS measure on page 241 for calculations of Adjusted EBITDA and Adjusted PATMI. 2. Based on closing share price of HK$13.26 on 21 March 2023. REVENUE FY2022 Revenue by region 12% Japan 25% Greater China 18% South Korea 22% Australia and New Zealand 1% India 16% Southeast Asia 3% Europe 1% Others FY2022 Revenue by Segment 87% Fund Management 12% Investment 1% New Economy Development The Group’s revenue grew 103.0% from US$404.4 million in FY2021 to US$821.2 million in FY2022. Total group revenue (ex-CIP construction revenue) increased by 127.7% from US$360.6 million in FY2021 to US$821.2 million in FY2022, driven by higher management fee. Management fee increased by 192.3% from US$244.0 million in FY2021 to US$713.3 million in FY2022. The increase was driven by high fee revenue from higher AUM as well as benefitting from ARA’s recurring and stable fee revenue. Overall construction revenue decreased by 75.5% from US$43.8 million in FY2021 to US$10.7 million in FY2022. Higher construction revenue in FY2021 contributed by outstanding projects executed after the disposal of construction arm by ESR Australia in September 2020. In line with decrease in overall construction revenue, cost of sales also dropped correspondingly from US$54.0 million in FY2021 to US$29.2 million in FY2022.
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