SIAS-CapitaLand Limited Dialogue Session Creating Asia’s Leading Diversified Real Estate Company 8 April 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 FY2018 Recap • ❖ Financial Scorecard For 2018 ❖ FY 2018 At A Glance ❖ Building A Sustainable Future Proposed Ascendas-Singbridge Transaction • ❖ Introduction To The Proposed Transaction ❖ What The Proposed Transaction Offers ❖ Things You May Be Concerned With ❖ Next Steps 3
Financial Scorecard For 2018 4
Financial Scorecard For 2018 Strong Earnings From Operations OPERATING PATMI TOTAL PATMI REVENUE S$1,762.5 S$872.2 S$5,602.4 million million million 21% YoY 12% YoY 6% YoY Note: FY 2017 results restated to take into account the retrospective adjustments relating to SFRS(I)15 Revenue from Contracts with Customers. 1. Proposed dividend subject to final shareholders’ approval at the Annual General Meeting. 2. Based on total FY 2018 cash PATMI. 5
Financial Scorecard For 2018 Consistent Improvement In Return On Equity ROE (%) 9.3 10 8.6 8 2.9 1.8 Operating PATMI (1) 6.6 6 1.2 1.7 1.8 Portfolio gains (2) 0.5 4 Revaluations and 4.9 5.1 4.6 Impairments 2 0 FY 2016 FY 2017 (Restated) FY 2018 Aim To Consistently Achieve Returns Above CapitaLand’s Cost Of Equity Year Over Year Note: 1. Include corporate and unallocated cost. 2. Include realised revaluation gain/ (loss) of investment properties. 3. Comparatives have been restated due to adoption of SFRS (I) 15 Revenue from Contracts with Customers. 6
Financial Scorecard For 2018 Robust Balance Sheet 8.3 74% 0.56 INTEREST COVERAGE RATIO 1 % FIXED RATE DEBT NET DEBT / EQUITY 0.31 3.6 4.4 AVG DEBT MATURITY 3 (YR) NET DEBT / TOTAL ASSETS 2 INTEREST SERVICE RATIO 2 Note: (1) Interest Coverage Ratio = EBITDA / Net Interest Expense; Interest Service Ratio = Operating Cashflow / Net Interest Paid. EBITDA includes revaluation gain. (2) Total assets excludes cash. 7 (3) Based on put dates of Convertible Bond holders
Financial Scorecard For 2018 Delivered Sustainable Returns To Shareholders Dividends Paid To Shareholders 1 Total Capital Returned To Shareholders 2 Dividends Share Purchase 14 843 12 12 Dividend Per Share (cents) 12 10 10 342 S$ million 504 0 8 482 6 4 504 501 425 2 0 FY 2016 FY 2017 FY 2018 FY 2016 FY 2017 FY 2018 FY2018 Proposed Dividend Is Approximately 40% Of FY2018 Cash PATMI 3 Note: 1. Proposed FY2018 dividend subject to final shareholders’ approval at the Annual General Meeting. 2. Includes dividend payout and share buybacks. 3. Barring unforeseen circumstances, the Company’s policy is to declare a dividend of at least 30% of the annual profit after ta x and non-controlling interests excluding unrealized revaluation gains or losses as well as impairment charges or write backs. 8
FY2018 At A Glance 9
FY2018 At A Glance Active And Disciplined Portfolio Reconstitution S$4 billion DIVESTED VALUE Gallileo, Frankfurt Sembawang Shopping Centre, Singapore Pearl Bank Apartment, Singapore S$6 billion CAPITAL REDEPLOYED Heronfield in Seattle, USA S$348.8 million 3 rd Raffles City In Shanghai PORTFOLIO GAINS Twenty Anson, Singapore Artist’s Impression of landed residential development in Ho Chi Minh City, Vietnam Note: 10 1. Figures includes assets divested to unrelated parties and CapitaLand REITs/ Funds and acquired by CapitaLand / CapitaLand REITs/Funds from unrelated parties
FY2018 At A Glance Future Proofing Our Businesses Retail Experience “Office -Of-The- Future” App-Enabling Our Redefined Ecosystem Lodging Services • Follow our customers • Create a community • Mobile Key Community Using Mobile Message Board key Leveraging In-house Smart Technologies CapitaStar lyf by CapitaStar 11 app Ascott App @Work
FY2018 At A Glance ESG: Building A Sustainable Future Corporate Constituent Of Global Social Sustainability Sustainability Responsibility Indices Secured first and largest • S$300 million sustainability- link bilateral loan in Asia’s Real Estate Sector Dow Jones Sustainability World and Asia Pacific Indexes 2018 5-year term loan and • Launched S$2 million CapitaLand Silver revolving facility linked to Empowerment Fund CapitaLand’s listing on Dow A constituent of Jones Sustainability World FTSE4Good Index Series Index (DSI) A constituent of MSCI ESG Leaders Indexes and MSCI SRI Indexes 2018 Mickey “Go Local” Campaign 12
FY2018 At A Glance Transforming CapitaLand For Next Phase Of Growth Deepens Presence In Core Markets Achieves Immediate Scale In New Economy Sectors Builds Scale And Capabilities In Growth Markets Secures Sizeable Development Pipeline Enhances Fund Management Capabilities Strengthens Digital Capabilities For Business Innovation Attracts Talent To Strengthen Real Estate Expertise And Capabilities 13
Building A Sustainable Future 14
Building A Sustainable Future Looking Ahead Jewel Changi Airport 17 April Funan 2Q 2019 Jewel Changi Airport, Singapore lyf Funan A side profile of Raffles City Chongqing, China 4Q 2019 Raffles City Chongqing 2H 2019 lyf Funan, a coliving serviced residence Funan, Singapore component within Funan, Singapore 15
Building A Sustainable Future Next Step Forward Balance, Focus, Scale Execution Is Key! Positioning For The Future Asset Fund Developer Owner Operator Manager Manager 3.0 16
Introduction To The Proposed Transaction Of Ascendas-Singbridge Ascent, Singapore 17
Introduction To The Proposed Transaction Transaction At A Glance S$6,035.9mm To Buy 100% 1 To Sell 100% 1 100% of Ascendas Pte Ltd 100% of Singbridge Pte Ltd 1. Excludes the following office buildings in the Ascendas- Singbridge Group’s Sydney portfolio, namely 100 Arthur Street and 66 Goulburn Str eet, which are not part of 18 the Proposed Transaction
Introduction To The Proposed Transaction Purchase Consideration S$6,035.9 million Adjusted Net Asset Value Of Target Companies 1 50% + Stakes In Listed Trusts At Market Value 2, 3 + Paid in new shares Fund Management Business At Agreed Fair Value 50% ($3,017.93 million) Paid in cash ($3,017.93 million) By issuing 862,264,714 shares at S$3.50 per share to the vendor To be financed by debt and other financing options 1. Adjustment was made for, inter alia , the carrying values of each of the following office buildings in the Ascendas- Singbridge Group’s Sydney portfolio, namely 100 Arthur Street and 66 Goulburn Street, which are not Part of the Proposed Transaction 2. Based on the volume weighted average price for the one-month period ending on the Last Trading Day of the units in the Ascendas Listed Trusts multiplied by the number of units which are owned by the Target Companies as at 31 Mar 2018 19 3. Based on CapitaLand’s and ASB’s effective stake in REITs as at the Latest Practicable Date; based on 1M VWAP
What The Proposed Transaction Offers Galaxis, Singapore 20
What The Proposed Transaction Offers Key Businesses To Drive CapitaLand Forward Focus On Four Core Markets And Two Standalone Platforms Fully integrated Highly scalable Global standalone real estate platforms standalone management platform 1 in core markets platform Lodging CapitaLand Financial China Singapore Managers of The Ascott Limited 8 REITs/Business Trusts and 23 private funds India Vietnam Core Developed Markets 21 1. Present in more than 30 countries
What The Proposed Transaction Offers Singapore 75% Scale Of Enlarged Group Makes It Critical To Singapore’s Next Phase Of Redevelopment of Total AUM 1 Complementary Footprint Expands Numbers in circles indicate GFA 1 CapitaLand’s Presence (mm sqft) North CapitaLand GFA ASB GFA 100% 4 A leading landlord in Singapore Key participant in the continued East West Central 5% evolution of Singapore’s urban 16% 92% landscape 20 18 7 84% 8% 95% Assets Under Management Enlarged CBD (AUM) Group S$42bn 4 100% ~34% of Total AUM 2 What ASB Adds +41% Note: AUM and GFA as at 31 Dec 18 1. GFA based on completed and operating properties (excluding hospitality assets) on a 100% basis. 22 2. Based on Enlarged Group total AUM of S$123.4bn.
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