UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE ENLARGED GROUP Unaudited Pro Forma Consolidated statement of Profit or Loss and Other Comprehensive Income (continued) Notes for Unaudited Pro Forma Consolidated Statement of Profit or Loss and Other Comprehensive Income of the Enlarged Group (1) The balances have been extracted from the audited consolidated statement of profit or loss and other comprehensive income of the Group for the year ended 31 December 2021. (2) The balances have been extracted from the audited consolidated statement of profit or loss and other comprehensive income of the ARA Group. (3) Reclassifications are to change presentation of consolidated statement of profit or loss and other comprehensive income of ARA Group to be “by function” in accordance with IAS 1 Presentation of Financial Statements. This is to align with the Group’s presentation of consolidated statement of profit or loss and other comprehensive income. (4) ARA Group’s accrued distribution of perpetual capital securities is reclassified to “Owners of the Company” to align with the Group’s presentation. ARA Group recognised perpetual capital securities as equity as it is able to defer making a distribution (subject to the terms and conditions of the securities issue) on the perpetual capital securities, and is not subject to any limits as to the number of times a distribution can be deferred. (5) The adjustment represents the estimated transaction costs of approximately US$25.3 million relating to the ARA acquisition. (6) Upon Completion, the ARA Group holds 86.4% of LOGOS. The non-controlling interests (“NCI”) share in LOGOS’ reduced from 47.8% to 13.6% accordingly. This resulted in lower total comprehensive income attributable to NCI, and higher total comprehensive income attributable to ARA Group. The financial impact was computed based on LOGOS’ total comprehensive income for the year ended 31 December 2021 as disclosed in ARA’s audited consolidated financial statements. (7) To retain the services of the ARA Group employees whose work is vital to the growth and continued success of the ARA Group and to incentivise and reward such employees, the Company will grant awards or other rights under the Share Incentive Plans to certain ARA Group employees following Completion. The aggregate value of all such grants (calculated by reference to the net value of such grants as at their date of grant, being the Share price at the relevant time net of any strike price or other exercise payment or threshold) is expected to be approximately US$27.7 million (when fully vested) and will be made in compliance with the terms of the Share Incentive Plans and the Listing Rules (8) Enlarged Group Segmental Information for the year ended 31 December 2021 is prepared for illustrative purposes only and because of its hypothetical nature, it may not purport to present the true picture of the financial effects on the segmental financial performance of the Enlarged Group that would have been attained had ARA Acquisition been completed on the dates as set out in the introductory paragraphs. ARA Group reclassified its current private market, public market and corporate segments presentation into ESR’s segmental information view based on segmentation split below: (a) Investments segment of ARA Group comprises seed capital investments into various co-investment funds and public listed real estate investment trusts (“REITs”) that derive dividend income; as well as projects that are held as seed investments. (b) Fund Management segment of ARA Group comprises its segment results from its current private markets segment that primarily engaged in the provision of fund and property management services to (i) private real estate funds, (ii) new economy funds, (iii) credit funds and (iv) infrastructure funds. It also consists of associates that are involved in the provision of fund management businesses which include Cromwell Property Group and Kenedix Inc. (c) Development segment of ARA Group comprises share of profit of associates and joint ventures holding the development projects. R E A C H I N G N E W H E I G H T S 248
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