FINANCIAL REVIEW ESR has continued its strong momentum and delivered outstanding performance during 1H2022 as below: • Revenue increased by 111.2% from US$204.4 million in 1H2021 to US$431.7 million in 1H2022; • EBITDA increased by 70.6% from US$373.4 million in 1H2021 to US$637.1 million in 1H2022; • Adjusted EBITDA increased by 136.6% from US$214.8 million in 1H2021 to US$508.2 million in 1H2022; and • PATMI (adjusted)7 increased by 92.6% from US$213.9 million in 1H2021 to US$412.0 million in 1H2022. As of 30 June 2022, the Group had a robust and wellcapitalised balance sheet with US$2.0 billion in cash and net debt over total assets of 17.9%. REVENUE The Group’s revenue grew 111.2% from US$204.4 million in 1H2021 to US$431.7 million in 1H2022. Total group revenue (ex-construction) increased by 142.9% from US$177.7 million in 1H2021 to US$431.6 million in 1H2022, mainly from higher management fee. Management fee increased by 199.5% from US$123.9 million in 1H2021 to US$371.0 million in 1H2022. This is driven by AUM growth and contribution from the ARA acquisition. Construction revenue were from outstanding projects executed after the disposal of construction arm by ESR Australia in September 2020. Overall construction revenue decreased by 99.4% from US$26.7 million in 1H2021 to US$0.1 million in 1H2022. Accordingly, cost of sales also dropped correspondingly from US$30.9 million in 1H2021 to US$9.3 million in 1H2022. Geographically, the Group’s top markets in Greater China, Japan, South Korea, Southeast Asia and Australia and New Zealand accounted for 94.7% of the Group’s revenue for 1H2022. The other markets, including India, made up the remaining 5.3% of revenue for 1H2022. INVESTMENT 14% FUND 86% MANAGEMENT GREATER CHINA 28% JAPAN 13% SOUTH KOREA 17% AUSTRALIA / 22% NEW ZEALAND SOUTHEAST ASIA 15% INDIA 1% OTHERS 4% 1H2022 Revenue Contribution By Region* 1H2022 Revenue Contribution By Segment PATMI AND EBITDA EBITDA increased by 70.6% from US$373.4 million in 1H2021 to US$637.1 million in 1H2022. PATMI (adjusted)7 grew 92.6% from US$213.9 million in 1H2021 to US$412.0 million in 1H2022. Higher PATMI (adjusted)7 and EBITDA were driven by the growth in the Group’s fund management AUM as well as co-investments in associates and joint ventures. The Group recorded fair value gain on investment properties of US$162.9 million for 1H2022 (1H2021: US$165.9 million), contributed from the Group’s assets in China and Japan. Note: 7. Excluding costs related to ARA acquisition of US$23,091,000 and amortisation relating to intangible assets arising from acquisition of ARA (net of tax effects) of US$8,329,000. PATMI (adjusted) is non-IFRS measures * Excludes construction revenue E S R G R O U P L I M I T E D I N T E R I M R E P O R T 2 0 2 2 13
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