i)	Financial risk management

The Group has exposure to the following risks from its use of financial instruments:

•

credit risk;

•

liquidity risk; and

•

market risk

This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes for measuring and managing risk, and the Group’s management of capital.

Risk management framework

The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. Group management establishes policies and procedures around risk identification, measurement and management; and setting and monitoring risk limits and controls, in accordance with the objectives and underlying principles in the risk management framework approved by the Board of Directors. Risk management policies and procedures are reviewed regularly to reflect changes in market conditions and the Group’s activities.

Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s trade receivables, loans and advances, payment cycle receivables, deposits and cash and cash equivalents. The Group does not have significant credit exposure to a single counterparty.

Impairment losses on financial assets recognized in profit or loss were as follows:


	2021			2020			2019
(in $ millions)	$			$			$

Trade receivables		8			33			35
Loans and advances at amortized cost		11			10			15
Payment cycle receivables		5			3			12
Other receivables		3			11			(5	)
Time deposits		(8	)		8			*
Cash and cash equivalents		—			(2	)		(1	)

		19			63			56

Amount less than $1 million

Trade receivables

Credit risk mainly relates to current trade receivables from driver-partners and merchant-partners under the Deliveries, Mobility and Enterprise and new initiatives segments. There is no significant concentration of customer credit risk. In monitoring customer credit risk, customers are grouped according to their credit characteristics which includes geographic location and operating segment. In response to the

Covid-19

pandemic, the Group has been performing more frequent reviews of receivable collection and the number of days past due in order to more closely monitor credit behavior and when necessary to respond with swift commercial action.

The Group does not have collateral in respect of outstanding trade receivables. The Group does not have trade receivables for which no loss allowance is recognized because of collateral.

The exposure to credit risk for trade receivables at the reporting date by geographic region was as follows:


	Net carrying amount
	2021		2020
(in $ millions)	$		$

Indonesia		36		39
Singapore		25		20
Philippines		5		7
Malaysia		13		6
Vietnam		7		7
Other countries		9		5

		95		84

Expected credit loss measurement

The Group uses an allowance matrix to measure ECLs of trade receivables which comprise a large number of small balances.

Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable progressing through successive stages of delinquency to

write-off.

Roll rates are calculated separately for exposures in different segments based on the common credit risk characteristics of geographic region and type of services purchased. Loss rates are based on actual payment and credit loss experience over the preceding 12 to 18 months. These rates are multiplied by scalar factors to reflect differences between economic conditions during the period over which the historical data has been collected, current conditions and the Group’s view of economic conditions over the expected lives of the receivables, which include a reflection of the actual and expected impact of the

COVID-19

pandemic in each geographic region.

The following table provides information about the exposure to credit risk and ECLs for trade receivables as at December 31:


	Weighted average loss rate		Gross carrying amount		Loss allowance			Credit impaired
(in $ millions)	%		$		$
2021
Current (not past due)		2.94		70		(2	)		No
1 – 30 days past due		10.08		17		(2	)		No
31 – 60 days past due		20.46		10		(2	)		No
61 – 90 days past due		50.14		5		(2	)		No
91 – 120 days past due		55.76		4		(3	)		No
More than 121 days		98.54		11		(11	)		Yes

				117		(22	)


	Weighted average loss rate		Gross carrying amount		Loss allowance			Credit impaired
(in $ millions)	%		$		$
2020
Current (not past due)		7.48		68		(5	)		No
1 – 30 days past due		16.65		17		(3	)		No
31 – 60 days past due		45.85		4		(2	)		No
61 – 90 days past due		49.32		4		(2	)		No
91 – 120 days past due		76.74		3		(2	)		No
More than 121 days		94.57		28		(26	)		Yes

				124		(40	)

Movements in allowance for impairment in respect of trade receivables

The movement in the allowance for impairment in respect of trade receivables during the year was as follows:


	2021			2020
(in $ millions)	$			$
At January 1		40			26
Impairment loss recognized		8			33
Amounts written off		(24	)		(20	)
Exchange translation differences		(2	)		1
At December 31		22			40

Loans and advances

Credit risk mainly pertains to term loans provided to merchant-partners, driver-partners and consumers. The Group closely monitors credit quality for the loans and advances to manage and evaluate the Group’s related exposure to credit risk. Credit risk management begins with initial underwriting and continues through to full repayment of a loan or advance. To assess a borrower who requests a loan or advance, the Group, among other indicators, internally developed risk models using detailed information from internal historical experience including the borrower’s prior repayment history with the Group as well as other measures. The Group uses delinquency status and trends to assist in making new and ongoing credit decisions, adjust models, plan collection practices and strategies.

Exposure to credit risk

The exposure to credit risk for loans and advances at the reporting date by geographic region was as follows:


	Carrying amount
	2021		2020
(in $ millions)	$		$
Malaysia		14		2
Singapore		40		9
Thailand		33		11
Philippines		13		7
Indonesia		2		*
Vietnam		5		2

		107		31

Amount less than $1 million

There is no concentration of credit risk for loans and advances.

Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable progressing through successive stages of delinquency to

write-off.

Roll rates are calculated separately for exposures in different segments based on the following common credit risk characteristics – geographic region, nature of counterparty and age of relationship.

The following table provides information about the exposure to credit risk and ECLs for loans and advances to customers.


	Weighted average loss rate		Gross carrying amount		Loss allowance			Credit- impaired
(in $ millions)	%		$		$
2021
Current (not past due)		5.37		97		(5	)		No
1 – 30 days past due		12.84		16		(2	)		No
31 – 60 days past due		46.53		2		(1	)		No
61 – 90 days past due		56.23		1		(1	)		No
91 – 120 days past due		87.43		1		(1	)		Yes
More than 121 days		91.12		1		(1	)		Yes

				118		(11	)


	Weighted average loss rate		Gross carrying amount		Loss allowance			Credit- impaired
(in $ millions)	%		$		$
2020
Current (not past due)		7.19		29		(2	)		No
1 – 30 days past due		42.85		5		(2	)		No
31 – 60 days past due		79.55		3		(2	)		No
61 – 90 days past due		80.80		1		(1	)		No
91 – 120 days past due		100.00		1		(1	)		Yes
More than 121 days		100.00		1		(1	)		Yes

				40		(9	)

Movements in allowance for impairment in respect of loans and advances

The movement in the allowance for impairment in respect of loans and advances during the year was as follows:


	2021			2020
(in $ millions)	$			$

At January 1		9			13
Impairment loss recognized		11			10
Amounts written off		(9	)		(14	)
Exchange translation differences		*			*

At December 31		11			9

Amount less than $1 million

Deposits with banks and financial institutions and cash and cash equivalents

At December 31, 2021, the Group held deposits with banks and financial institutions and cash and cash equivalents of $3,178 million (2020: $1,282 million) and $4,991 million (2020: $2,173 million) respectively. These amounts are held with reputable bank and financial institution counterparties.

Impairment on deposits with a maturity of 12 months or less from reporting date and cash and cash equivalents has been measured on the

12-month

expected loss basis and reflects the short maturities of the exposures. Impairment on deposits with a maturity of more than 12 months from reporting date has been measured on an expected loss basis that reflects the longer maturities of the exposures. The Group considers that these amounts have low credit risk based on the external credit ratings of the counterparties and therefore have insignificant provision for expected credit losses.

Liquidity risks

Risk management policy

‘Liquidity risk’ is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s objective when managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

Management monitors rolling forecasts of the Group’s cash and cash equivalents on the basis of expected cash flows. This is generally carried out by operating companies of the Group in accordance with practice and limits set by the Group. These limits vary by location to take into account the liquidity of the market in which the entity operates. In addition, the Group’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these.

The Group monitors its liquidity risk and maintains a level of cash and bank balances deemed adequate by management to finance the Group’s operations and to mitigate the effects of fluctuation in cash flows.

As part of their overall liquidity management, the Group maintains sufficient levels of funds to meet its working capital requirements. While the Group’s operations were previously financed mainly through the issuance of convertible redeemable preference shares (see Note 11), after the effectuation of the Reverse

Recapitalization

(see Notes 11 and 28), longer term funding requirements are now primarily financed through term loan arrangements (see Note 14).

The following are the contractual maturities of financial liabilities considered in the context of the Group’s liquidity risk management strategy. The amounts are gross and undiscounted and include contractual interest payments.


			Contractual cash flows
	Carrying amount		Total			Less than 1 year			1 to 5 years			More than 5 years
(in $ millions)	$		$			$			$			$
2021
Financial liabilities
Bank loans		138		(150	)		(74	)		(76	)		—
Term loan		1,914		(2,422	)		(131	)		(2,291	)		—
Trade and other payables		780		(780	)		(770	)		(10	)		—
Lease liabilities		123		(197	)		(23	)		(58	)		(116	)
		2,955		(3,549	)		(998	)		(2,435	)		(116	)
2020
Financial liabilities
Bank loans		212		(233	)		(136	)		(97	)		—
Trade and other payables		586		(586	)		(585	)		(1	)		—
Lease liabilities		39		(40	)		(19	)		(21	)		*
Convertible redeemable preference shares		10,767		(15,535	)		—			(15,535	)		—

		11,604		(16,394	)		(740	)		(15,654	)		*

Amount less than $1 million

Market risks

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s income. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

Currency risk

The Group is exposed to transactional foreign currency risk to the extent that there is a mismatch between the currencies in which sales, purchases, receivables, cash and cash equivalents and borrowings that are denominated in a currency other than the respective functional currencies of Group entities. The functional currencies of Group entities are primarily the currency of the country in which the entity operates. The currencies in which these transactions primarily are denominated are also in the currency in which the entity operates. The currencies in which these transactions are primarily denominated are the Singapore Dollar (“SGD”) and Indonesian Rupiah (“IDR”).

Interest on external borrowings is denominated in the currency of the borrowing. With the exception of the term loan financing obtained at a Group level (see Note 14), Group entities’ external borrowings are generally denominated in currencies that match the cash flows generated by the underlying operations of the Group, which is also the currency of the country in which the entity operates.

In respect of other monetary assets and liabilities denominated in foreign currencies, the Group’s policy is to ensure that its net exposure is kept at a reasonable level by buying or selling foreign currencies at spot rates when necessary to address short term imbalances.

Based on the above approach to currency risk management, the Group’s net exposure to currencies that are denominated in a currency other than the respective functional currencies of Group entities is insignificant.

Interest rate risks

Exposure to interest rate risk

The Group’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. During 2021 and 2020 the Group’s borrowings at variable rate were mainly denominated in United States Dollars, Singapore Dollars, Indonesian Rupiah and Thai Baht. The borrowings are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates. The Group monitors reform of benchmark interest rates by reviewing the total amounts of contracts that have yet to transition to an alternative benchmark rate. As at 31 December 2021, the term loan financing, which is a significant portion of the Group’s variable rate instruments, has not yet transitioned to an alternative benchmark rate although it does contractually contain fallback provisions to address such transition in the future.

The interest rate profile of the Group’s interest-bearing financial instruments as reported to the management of the Group is as follows:


	Carrying amount
	2021			2020
(in $ millions)	$			$
Fixed-rate instruments
Other investments		3,178			1,282
Cash and cash equivalents		4,991			2,173
CRPS (liability component)		—			(10,767	)
Bank loans		(100	)		(162	)
Variable-rate instruments
Bank loans		(38	)		(50	)
Term loan		(1,914	)		—

Fair value sensitivity analysis for fixed-rate instruments

Most fixed-rate financial assets and financial liabilities of the Group are not accounted for at FVTPL. Therefore, a change in interest rates at the reporting dates would not materially affect profit or loss.

Cash flow sensitivity analysis for variable rate instruments

For the bank loans, a change of 100 basis points in interest rates at the reporting date would have had an insignificant impact on profit or loss and equity. For the term loan, a 100 basis point increase in LIBOR (the applied benchmark rate), over and above the set 1.00% floor, would increase interest expense by approximately $20 million.

ii)

Capital management

The Group’s objectives in managing capital are to ensure that the Group will be able to continue as a going concern and to maintain an optimal capital structure so as to enable it to execute business plans and to maximize shareholder value. The Group defines “capital” as including all components of equity and external borrowings.

The capital management strategy translates into the need to ensure that at all times the Group has the liquidity and cash to meet its obligations as they fall due while maintaining a careful balance between equity and debt to finance its assets,

day-to-day

operations and future growth. Having access to flexible and cost-effective financing allows the Group to respond quickly to opportunities.

The Group’s capital structure is reviewed on an ongoing basis with adjustments made in light of changes in economic conditions, regulatory requirements and business strategies affecting the Group. The Group balances its overall capital structure by considering the costs of capital and the risks associated with each class of capital. In order to maintain or achieve an optimal capital structure, the Group may issue new shares from time to time, retire or obtain new borrowings or adjust the asset portfolio.

iii)	Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.


			Carrying amount									Fair value
	Note		Fair value			Amortized cost			Total			Level 1			Level 2		Level 3			Total
			$			$			$			$			$		$			$
(in $ millions)
December 31, 2021
Financial assets
Debt investments				685			—			685			594			91		—			685
Equity investments		7		618			—			618			457			—		161			618
Time deposits		7		—			3,178			3,178			—			—		—			—
Trade and other receivables		8		—			255			255			—			—		—			—
Other assets		9		—			172			172			—			—		—			—
Cash and cash equivalents		10		—			4,991			4,991			—			—		—			—
Total				1,303			8,596			9,899			1,051			91		161			1,303
Financial liabilities
Term loan				—			(1,914	)		(1,914	)		—			—		—			—
Warrant liabilities		13		(54	)		—			(54	)		(21	)		—		(33	)		(54	)
Bank loans		14		—			(138	)		(138	)		—			—		—			—
Trade and other payables		16		(9	)		(771	)		(780	)		—			—		(9	)		(9	)
Total				(63	)		(2,823	)		(2,886	)		(21	)		—		(42	)		(63	)


			Carrying amount								Fair value
	Note		Fair value		Amortized cost			Total			Level 1		Level 2		Level 3		Total
			$		$			$			$		$		$		$
(in $ millions)
December 31, 2020
Financial assets
Debt investments				250		—			250			228		22		—		250
Equity investments		7		143		—			143			—		—		143		143
Time deposits		7		—		1,282			1,282			—		—		—		—
Trade and other receivables		8		—		172			172			—		—		—		—
Other assets		9		—		42			42			—		—		—		—
Cash and cash equivalents		10		—		2,173			2,173			—		—		—		—
Total				393		3,669			4,062			228		22		143		393
Financial liabilities
Convertible redeemable preference shares – liability component				—		(10,767	)		(10,767	)		—		—		—		—
Bank loans		14		—		(212	)		(212	)		—		—		—		—
Trade and other payables		16		—		(586	)		(586	)		—		—		—		—
Total				—		(11,565	)		(11,565	)		—		—		—		—

iv)	Measurement of fair values

Valuation techniques and significant unobservable inputs

The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values for financial instruments in the statement of financial position, as well as the significant unobservable inputs used.

The movement in fair value arising from reasonably possible changes to the significant unobservable inputs was assessed as not significant.


	Valuation technique	Significant unobservable inputs	Inter-relationship between significant unobservable inputs
Assets
Debt investments	Quoted broker prices	Not applicable	Not applicable

Equity investment	Market comparison technique	Adjusted market multiple	The estimated fair value would increase (decrease) if the adjusted market multiple were higher (lower).

Warrants	Quoted market prices	Discount for lack of marketability	The estimated fair value would decrease (increase) if the discount for a lack of marketability were higher (lower).

Level 3 fair values

The following table shows a reconciliation from the opening balances to the ending balances for Level 3 fair values:


	$
(in $ millions)
At January 1, 2020		132
Net change in fair value (unrealized)		(42	)
Net purchases/ (issuances)		53
At December 31, 2020		143
At January 1, 2021		143
Net change in fair value (unrealized)		35
Net purchases/ (issuances)		(59	)
At December 31, 2021		119