> DKSH Holdings (Malaysia) Berhad: Annual Report 2017

Notes to the financial statements

December 31, 2017 (continued)

27. Segmental information

The Group is organized into three main business segments:

• Marketing and distribution services
• Logistics services
• Others - Famous Amos chocolate chip cookie business and central overheads

All the major operations of the Group are carried out in Malaysia. Accordingly, the segment reports as presented below had been
reviewed by the chief operating decision maker.

(a) Primary reporting format - business segments

Marketing and
distribution Logistics
services services Others Eliminations Group
RM‘000 RM‘000 RM‘000 RM‘000 RM‘000
At December 31, 2017
Revenue
Segment revenue 2,627,976 2,825,396 56,166 – 5,509,538
Intersegment revenue 829 – – (829) –
Revenue 2,628,805 2,825,396 56,166 (829) 5,509,538

Results
Segment results 45,668 32,790 (882) 77,576
Finance costs (6,855)
Income tax expense (18,640)
Profit for the financial year 52,081

Net assets
Segment assets 968,133 784,354 24,460 – 1,776,947
Unallocated assets 97,558
Total assets 1,874,505
Segment liabilities (460,866) (693,387) (2,905) – (1,157,158)
Unallocated liabilities (149,193)
Total liabilities (1,306,351)

Other information
Capital expenditure 1,661 1,620 1,511 – 4,792
Depreciation of property, plant and equipment 1,808 2,483 4,820 – 9,111
Amortization of trademarks 435 – – – 435
Net allowance for doubtful debts 712 370 14 – 1,096
Inventories written off 8,498 1,161 1,053 – 10,712

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 > DKSH Holdings (Malaysia) Berhad: Annual Report 2017

Notes to the financial statements

December 31, 2017 (continued)

27. Segmental information (continued)

(a) Primary reporting format - business segments (continued)

Marketing and
distribution Logistics
services services Others Eliminations Group
RM‘000 RM‘000 RM‘000 RM‘000 RM‘000
At December 31, 2016
Revenue
Segment revenue 2,657,659 2,560,178 53,210 – 5,271,047
Intersegment revenue 866 – – (866) –
Revenue 2,658,525 2,560,178 53,210 (866) 5,271,047

Results
Segment results 55,207 22,810 (2,784) – 75,233
Finance costs (6,336)
Income tax expense (18,430)
Profit for the financial year 50,467

Net assets
Segment assets 869,018 807,011 25,366 – 1,701,395
Unallocated assets 161,949
Total assets 1,863,344
Segment liabilities (420,650) (719,379) (1,598) – (1,141,627)
Unallocated liabilities (190,630)
Total liabilities (1,332,257)

Other information
Capital expenditure 1,538 2,470 3,093 – 7,101
Depreciation of property, plant and equipment 1,736 2,484 5,311 – 9,531
Amortization of trademarks 1,004 – – – 1,004
Net allowance for doubtful debts 331 14,588 37 – 14,956
Inventories written off 9,070 537 – – 9,607

Segment assets consist primarily of property, plant and equipment, inventories and trade receivables. Segment liabilities comprise only
trade payables. Capital expenditure comprises additions to property, plant and equipment (Note 11).

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