CapitaLand Investment Limited - Annual Report 2021

An integrated investment approach to create sustainable value for our shareholders Two key business platforms supported by three synergistic growth drivers. FEE-INCOME RELATED BUSINESS (FRB) comprises Fund Management and Lodging Management businesses, provides a steadily growing, recurring fee-based revenue stream. REAL ESTATE INVESTMENT BUSINESS (REIB) generates a stable flow of rental income from our global portfolio of commercial and lodging assets and is also a source of assets for CapitaLand Investment’s (CLI) managed investment vehicles. Our Business Model SUSTAINABLE VALUE CREATION AND RETURNS S$100 billion FUM by 2024 160K units by 2023 S$3 billion Annual Recycling Target FUND MANAGEMENT • Grow fund under management (FUM) • Maintain organic REITs and business trusts growth momentum • Deepen and diversify private funds strategies and expand fund raising channels KEY COMPETITIVE ADVANTAGE • Leading Asia-centric platform • Six listed REITs and business trusts • >20 private funds • Track record of diversification across real estate sectors • Access to multiple opportunities through our global platform LODGING MANAGEMENT • Continue expansion through recovery cycle • Scale serviced residence units via asset-light management and franchise contracts • Expand into adjacent longer-stay segments KEY COMPETITIVE ADVANTAGE • Global business with strong branding • Extension into adjacent sectors such as student accommodation and multifamily asset classes • Scalable business underpinned by extensive owner network CAPITAL MANAGEMENT • Strict financial discipline and well-calibrated capital structure • Disciplined capital recycling across CLI and CLI managed investment vehicles KEY COMPETITIVE ADVANTAGE • Best-in-class operating platforms support value creation of real estate investments through proactive asset management • Target attractive investment returns above carrying value • ~S$10 billion of on-balance sheet pipeline assets FY 2021 Performance Review CapitaLand Investment (CLI) achieved a creditable first set of financial results for FY 2021, delivering an 8.7% ROE with PATMI of S$1,349 million, reversing a net loss of S$559 million in FY 2020. The turnaround was driven by the improved operating performance fromboth the Group’s fee income-related business (FRB) and real estate investment business (REIB), as well as recognition of revaluation gains from the Group’s investment properties, absence of impairment loss and higher portfolio gains under REIB. TOTAL REVENUE BY BUSINESS SEGMENTS TOTAL REVENUE BY GEOGRAPHY FRB 39% REIB 66% Singapore 27% Other Developed Countries (excludes Singapore and Hong Kong) 43% China (includes Hong Kong) 19% Other Emerging Countries (excludes China) 11% S$2,293M 1 1 Includes Corporate and Others of -S$118 million or -5% not reflected in the chart. Amount mainly relates to intercompany eliminations. Excluding the unrealised revaluation and impairment, Cash PATMI for FY 2021 doubled to S$1,113 million on the back of record asset recycling in 2021, which yielded portfolio gains of S$616 million. Operating PATMI for FY 2021 was S$497 million, an increase of 12% year-on-year, underpinned by higher fee income from its fund management and lodging management businesses as well as improved performance fromour investment properties portfolio. S$2,293M 1 Portfolio gains comprise gains/losses arising from divestments, gains from bargain purchase or re-measurement on acquisitions and realised fair value gains/losses arising from revaluation of investment properties to agreed selling prices of properties. FY 2020 Operating PATMI 12% Portfolio Gains1 535% Cash PATMI 106% Revaluation Gains/(Losses)/ Impairment NM Total PATMI NM FY 2020 FY 2020 FY 2020 FY 2020 FY 2021 FY 2021 FY 2021 FY 2021 FY 2021 443 97 540 1,113 (559) (1,099) 497 616 236 1,349 GROUP’S PATMI BREAKDOWN (S$ million) Financial Performance Annual Report 2021 29