CapitaLand Limited Creating Asia’s Leading Diversified Real Estate Company 22 March 2019 1
Disclaimer This presentation may contain forward-looking statements that involve risks and uncertainties. Any actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Under no circumstances should the inclusion of such information herein be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions by CapitaLand or any other person or that these results will be achieved or are likely to be achieved. You are cautioned not to place undue reliance on these forward- looking statements, which are based on CapitaLand’s current view of future events. CapitaLand neither guarantees any future performance or event nor assumes any obligation to update publicly or revise any forward-looking statement. Unless otherwise stated or the context otherwise requires, definitions set out in the Glossary of the Circular to shareholders dated 22 March 2019 (the "Circular") shall apply throughout this presentation. Figures provided throughout this presentation (e.g. market capitalisation, AUM and GFA) are provided on the same bases as in the Circular. 2
Contents CapitaLand 3.0 And What It Means • Strategic Rationale For Ascendas-Singbridge Combination • Creating Shareholder Value From The Combination • 3
I. CapitaLand 3.0 And What It Means Raffles City Chongqing, China 4
“Creating Long -Term Shareholder Value By Targeting Sustainable Return On Equity Above The Cost Of Equity” Capital Tower, Singapore 5 CapitaLand Presentation May 2013
CapitaLand 3.0 What It Means Scaling Up Responsibly China Singapore 35% 30% Capital Allocation Enhanced Developing Priority Competitiveness New Capabilities Developed Emerging Markets Markets (50%) (50%) Other India Developed Markets 10% 20% Vietnam 5% Harnessing An Asset Fund Developer Owner Operator Manager Manager Integrated Value Chain 6
CapitaLand 3.0 Business Structure To Take CapitaLand Forward Organised To Optimise Integration & Drive Synergies Singapore & CapitaLand Centres Of India China Lodging International 1 Financial Excellence Residential & Urban Business Parks/ Residential The Ascott Limited Urban Strategy Development 2 Logistics/Industrial Managers of 8 REITs/Business Trusts and 23 private funds Business Communities Retail & Commercial Retail & Commercial Development Business Parks/ Business Parks/ Retail Innovation Logistics/Industrial Logistics/Industrial Customer Services & Solutions Sustainability 1 REIT and 4 REITs and 1 Business Trust and 2 REITs and Digital & 12 Private Funds 6 Private Funds 3 Private Funds 2 Private Funds Technology Fully integrated real estate platforms in High growth, Global Highly scalable Holistic approach core markets new economy standalone standalone to key Group exposure platform 3 management priorities Recurring income, balanced exposure in platform developed markets 1 Includes Vietnam, Malaysia, Indonesia, Europe, USA, Australia, Japan and South Korea 2 Urban Development refers to the Sustainable Urban Development (SUD) business 7 3 Present in more than 30 countries
CapitaLand 3.0 Core Drivers Efficient Capital Allocation Into 1 8 Employer Of Choice Core And Growth Markets Investing Into Growth Sectors Sustainable Growth For 7 2 And Platforms Future Generations Sustainable Return On Equity Above Cost Of Equity Maintain Balance Between Emerging 6 Future Proofing Our 3 And Developed Markets Real Estate Platforms 4 5 Maintain High Quality Income Disciplined Capital Management 8
II. Strategic Rationale For Ascendas-Singbridge Transaction Ascent, Singapore 9
1 Efficient Capital Allocation Into Core And Growth Markets Singapore AUM + China AUM Deepening Presence In Core Markets = S$93bn 75% Scalable Presence Enhances Value Creation Potential Across Cycles of Total AUM 1 Complementary Footprint In Singapore Focused Within China’s 5 City Clusters Numbers in circles indicate CapitaLand’s presence GFA 2 (mm sqft) North ASB’s presence CapitaLand GFA Shenyang ASB GFA 100% Beijing 4 Dalian Tianjin East West Central 5% 16% 92% Xian 20 18 Nanjing 7 Suzhou Chengdu Wuhan Shanghai Hangzhou 84% Ningbo 8% Chongqing CBD 95% Guangzhou 4 100% Shenzhen AUM AUM Enlarged S$42bn S$51bn Group What ASB Adds +41% +6% Note: AUM and GFA as at 31 Dec 18 1 Based on Enlarged Group total AUM of S$123.4bn; total Enlarged Group’s AUM adjusted for CapitaLand and ASB’s joint development of Raffles City Chongqing 2 GFA based on completed and operating properties (excluding hospitality assets) on a 100% basis 10
Efficient Capital Allocation Into Core And Growth Markets 1 India AUM India: Key Contributor Of Growth Market Strategy = S$3bn 2% Early Mover Advantage In Localised Market With High Barriers Of Entry of Total AUM 1 Strong and proven track record established over 25 years Significant development / re-development potential Developable GFA 2 spans ~5 mm sqm, with historical yield-on-cost at mid- to high- teens ― Underpenetrated market in the growing logistics sector ― Establishment of JV with FirstSpace to enhance AUM growth Full value chain with development and fund management capabilities backed by deep localised expertise ― Private funds and capital partnerships for strategic developments (AUM: S$0.8bn) ― Investment properties platform (a-iTrust) supports capital recycling activities (AUM: S$1.7bn) ASB India Track Record AUM 3 (S$bn) EBIT 4 (S$mm) 95.5 82.2 2.6 2.6 2.2 36.7 FY 2017 FY 2018 LTM Sep 18 Mar 2017 Mar 2018 Dec 2018 1 Based on Enlarged Group total AUM of S$123.4bn as at 31 Dec 2018 2 Developable GFA as at 31 Dec 2018; Includes actual or planned GFA and/or land area of landbanks and properties under development, but excludes hospitality assets 11 3 Includes value of a-iTrust assets on a 100% basis 4 Includes share of results from a-iTrust, which is equity accounted as an associate; growth in EBIT from FY 2017 to FY 2018 due largely to revaluation gains and writeback of provision in FY 2018
Australia / USA / Vietnam AUM 1 Efficient Capital Allocation Into Core And Growth Markets Europe + AU/USA/EU AUM Building Scale And Capabilities In Our Growth Markets = S$15bn 13% Strong Development Potential And Recurring Income Generation of Total AUM 1 Vietnam Australia / USA / Europe Bolt-on Capabilities To Our Established Platform Achieves Immediate Economies Of Scale Balances global portfolio Recurring, stable income Residential Commercial Commercial Deep, mature real estate Lodging Logistics / Business Parks markets USA has two monetisable Lodging Logistics / Retail Business Parks portfolios at >S$2bn CapitaLand ASB AUM AUM Enlarged S$2bn S$13bn Group Note: AUM as at 31 Dec 2018 1 Based on Enlarged Group's AUM of S$123.4bn 12
Efficient Capital Allocation Into Core And Growth Markets 1 Potential to Accelerate Significant And Diversified Development Pipeline Future Profitability And Monetisation 104% Increase In Enlarged Group’s Developable GFA 1 That Is Diversified Across The Portfolio Developable GFA 1 Breakdown by type Breakdown by geography Breakdown by sector Singapore Retail 9% 6% Projects under SEA Residential Commercial development 11% 83% 8% 50% Landbank 50% 6.8mm sqm 6.8mm sqm 6.8mm sqm China 83% Singapore Others³ Retail 4% 3% Others² 4% Projects under Commercial 10% development 5% Residential 44% 104% 43% China Business parks / 51% Landbank Enlarged logistics 56% 13.9mm sqm 13.9mm sqm 13.9mm sqm Group 4 17% India 35% Industrial 28% Note: GFA as at 31 Dec 2018; “SEA” stands for Southeast Asia (excluding Singapore) 1 Developable GFA includes actual or planned GFA and/or land area of landbank and projects under development, but excludes hospitality assets 2 Others include Southeast Asia (excluding Singapore) and South Korea 3 Others include land for sale and data centres 13 4 The Enlarged Group’s total estimated developable GFA is based on the aggregate estimated developable GFA for CapitaLand and A SB (on a 100% basis), adjusted for joint development of Raffles City Chongqing by CapitaLand and ASB
Efficient Capital Allocation Into Core And Growth Markets 1 Significant Development Pipeline Contributions From ASB’s Investment and Trading Projects In The Coming Years Clear timeframe to Phase 1 ~434,000 1 sqm ~57,000 sqm income contribution Developable GFA Developable GFA ~S$109mm Expected Quality portfolio with FY 2018 PATMI Completion visible monetisation in 1H 2020 Phase 2 potential China-Singapore Guangzhou Knowledge 79 Robinson Road, MOU Signed 2 City, China Singapore ITPG-SEZ1 (Phase 2) Phase 4 ~210,000 sqm Developable GFA ~19,000 sqm Expected Completion Developable GFA in 1H 2021 Expected Completion ITPG-SEZ2 in 1H 2020 ~96,200 sqm International Tech International Tech Park Gurgaon, India Developable GFA Park Pune, India Note: All images of development projects featured are artist impressions 14 1 Includes land plots of CSGKC Phase 1 that are owned by ASB, excludes assets that have been contracted for sale but pending completion in 1H 2019 2 Based on ASB press release dated 12 Nov 2018
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