Page 457 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

Central Retail Corporation Public Company Limited and its Subsidiaries
Notes to the financial statements
For the year ended 31 December 2021

25 Legal reserves

Section 116 of the Public Companies Act B.E. 2535 requires that a public company shall allocate not
less than 5% of its annual net profit, less any accumulated losses brought forward, to a reserve account
(“legal reserve”), until this account reaches an amount not less than 10% of the registered authorised
capital. The legal reserve is not available for dividend distribution.

26 Segment information and disaggregation of revenue

(a) Segment information
Management determined that the Group has three reportable segments which are the Group’s strategic
divisions offer different products and services and cater to different and various needs of customers, but
together offer a complete retail experience to consumers. For each of the strategic divisions, the chief
operating decision maker (CODM) reviews internal management reports on at least a quarterly basis.
The Group’s reportable segment which has changed during 2021 as a result of the acquisition of COL
Public Company Limited and its Subsidiaries is disclosed in segment hardline. The following summary
describes the operations in each of the Group’s reportable segments.

Segment 1 Fashion Operating fashion business mostly under department store format in
Thailand and overseas.
Segment 2 Food Products Operating food retailing such as supermarket and convenience store.
Segment 3 Hardline Operating hardline retailing including consumer electronic, construction
material, home products, stationery supplies, books and office
equipment.

Each segment's performance is measured based on segment earnings before interest, taxes, depreciation
and amortisation “EBITDA”, as included in the internal management reports that are reviewed by the
Group’s CODM. Segment EBITDA is used to measure performance as management believes that such
information is the most relevant in evaluating the results of certain segments relative to other entities
that operate within these industries. Inter-segment pricing is determined on an arm’s length basis.

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