CapitaLand Investment Limited - Annual Report 2021

153 CapitaLand Investment Limited 152 Annual Report 2021 Notes to the Financial Statements Note 2021 2020 $’M $’M Cash flows from investing activities Acquisition/Development expenditure of investment properties (1,241) (236) Acquisition of subsidiaries, net of cash acquired 30(b) (1,390) (213) Deposits placed for acquisition of investment property (1) – Deposits (returned)/received for disposal of investment property/ subsidiaries (9) 21 Disposal of subsidiaries, net of cash disposed of 30(d) 573 192 Dividends received from associates and joint ventures 1,980 502 Interest income received 31 39 (Investments in)/Return of investments from associates, joint ventures and other investments (261) 301 Proceeds from disposal of investment properties 1,354 364 Proceeds from disposal of assets held for sale 49 155 Proceeds from disposal of other financial assets 226 – Purchase of intangible assets and property, plant and equipment (42) (44) Settlement of hedging instruments (1) (13) Net cash generated from investing activities 1,268 1,068 Cash flows from financing activities Contributions from non-controlling interests 218 73 Dividends paid to non-controlling interests (103) (113) Distributions to perpetual securities holders (13) (16) Dividends paid to shareholders (1) (720) Interest expense paid (342) (365) Loans from/(Repayment of loans from) associates and joint ventures 1,260 (5) Payment for acquisition of ownership interests in subsidiaries with no change in control (40) (3) Payment for issue expenses for issuance of share capital (38) – Proceeds from bank borrowings 5,979 989 Proceeds from issuance of debt securities 139 – Purchase of treasury shares (208) – Repayments of lease liabilities (64) (56) Repayments of bank borrowings (1,807) (792) Repayments of debt securities (220) (166) (Repayment of)/Loans from related companies (4,537) 194 Decrease in bank deposits pledged for bank facilities – 8 Net cash generated from/(used in) financing activities 223 (972) Net increase in cash and cash equivalents 2,158 279 Cash and cash equivalents at beginning of the year 1,678 1,354 Effect of exchange rate changes on cash balances held in foreign currencies (21) 42 Changes in cash and cash equivalents reclassified to assets held for sale – 3 Cash and cash equivalents at end of the year 15 3,815 1,678 The accompanying notes form an integral part of the financial statements. Consolidated Statement of Cash Flows YEAR ENDED 31 DECEMBER 2021 These notes form an integral part of the financial statements. The financial statements were authorised for issue by the Board of Directors on 15 March 2022. 1 DOMICILE AND ACTIVITIES CapitaLand Investment Limited (the Company) is incorporated in the Republic of Singapore and has its registered office at 168 Robinson Road, #30-01, Capital Tower, Singapore 068912. The Company’s immediate and ultimate holding companies are CapitaLand Group Pte. Ltd. and Temasek Holdings (Private) Limited respectively. Both companies are incorporated in the Republic of Singapore. The principal activities of the Company are those relating to investment holding and provision of consultancy services as well as being the corporate headquarters which gives direction, provides management support services and integrates the activities of its subsidiaries. The principal activities of the significant entities included in these consolidated financial statements are investment advisory and management, lodging management, property management, and investment holding including investment in real estate assets and related financial products. The consolidated financial statements relate to the Company and its subsidiaries (the Group) and the Group’s interests in associates and joint ventures. 2 INTERNAL RESTRUCTURING AND BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS On 15 September 2021, CapitaLand Limited (CL), the immediate holding company of the Company, together with CLA Real Estate Holdings Pte. Ltd. (CLA), the immediate holding company of CL, completed a scheme of arrangement pursuant to Section 210 of the Companies Act (Scheme) to: • effect a restructuring of the business of CL and its subsidiaries (CapitaLand Group) business so as to consolidate CapitaLand Group’s investment management platform and operating platforms for office, retail malls, business park properties and data centres, its lodging business, certain assets and certain corporate office entities (together known as the “Combining Entities”) into the Group under the internal restructuring (Internal Restructuring); and • retain the real estate development business of the CapitaLand Group under private ownership, to be fully held by CLA through the privatisation of CL on completion of the Scheme. The Scheme involved the following: • Distribution-in-specie of the shares in the Company CL undertook the distribution of approximately 48.24% of the issued ordinary shares in the capital of the Company to eligible shareholders of CL on a pro-rata basis; • Distribution-in-specie of the units in CapitaLand Integrated Commercial Trust (CICT) CL undertook the distribution of 388,242,247 issued units in CICT to eligible shareholders of CL on a pro-rata basis. • Acquisition of shares of CL Upon the above distribution-in-specie taking effect, CLA acquired all the shares of CL (excluding the treasury shares) from the shareholders of CL (excluding CLA).