Chemical Company of Malaysia Berhad Annual Report 2019

24. Operating segments The Group has two reportable segments, as described below, which are the Group’s strategic business units. The strategic business units offer different products and are managed separately because they require different technology andmarketing strategies. For each of the strategic business units, the Group’s Managing Director (the chief operating decision maker) reviews internal management reports at least on a quarterly basis. The following summary describes the operations in each of the Group’s reportable segments: Chemicals - Manufacturing andmarketing of chlor-alkali and coagulant products, industrial and specialty chemicals. Polymers - Manufacturing and selling of industrial cleaner and hydrogel coating products. Other non-reportable segments comprise operations related to the investment holding company and rental of investment property. None of these segments met the quantitative thresholds for reporting segments in 2019 and 2018. Performance is measured based on segment profit after tax, finance costs, finance income, depreciation and amortisation, as included in the internal management reports that are reviewed by the Group’s Managing Director. Segment profit 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. Segment assets The total of segment assets is measured based on all assets (including goodwill) of a segment, as included in the internal management reports that are reviewed by the Group’s Managing Director. Segment total assets is used to measure the return on assets of each segment. Segment liabilities Segment liabilities information is neither included in the internal management reports nor provided regularly to the Group’s Managing Director. Hence, no disclosure is made on segment liabilities. Segment capital expenditure Segment capital expenditure is the total cost incurred during the financial year to acquire property, plant and equipment, and intangible assets other than goodwill. BUSINESS OVERVIEW OTHER INFORMATION GOVERNANCE STRUCTURE 183 ANNUAL REPORT 2019 FINANCIAL STATEMENTS