CapitaLand Investment Limited - Annual Report 2021

REVENUE Revenue for FY 2021 rose 16% year-on-year to S$2,293 million, with higher contributions from both FRB and REIB on account of higher fund management and lodging management fees as well as improved operating performance from investment properties and contributions from newly acquired assets. Geographically, approximately S$1,605 million or 70% of the Group’s revenue was derived from developed markets and S$688 million or 30%was contributed by emerging markets. Collectively, the Group’s two core markets, Singapore and China, accounted for 27% and 19% of the Group’s revenue for FY 2021 respectively. EBITDA EBITDA for FY 2021 was S$2,469 million, a significant positive turnaround compared to a loss of S$33 million in FY 2020 on the back of improved operating performance from both FRB and REIB, recognition of gains from the revaluation of the Group’s investment properties as compared to a loss in 2020, absence of impairments and higher portfolio gains. TOTAL EBITDA BY BUSINESS SEGMENTS TOTAL EBITDA BY GEOGRAPHY Singapore 33% Other Developed Countries (excludes Singapore and Hong Kong) 36% China (includes Hong Kong) 28% Other Emerging Countries (excludes China) 3% FRB – Operating 13% REIB – Operating 44% REIB – Non-Operating (includes portfolio gains, revaluation and impairment) 46% 1 Includes Corporate and Others of -S$76 million or -3% not reflected in the chart. Amount mainly relates to transaction costs incurred for the listing and restructuring of the Group and intercompany eliminations. S$2,469M 1 In FY 2021, the Group recorded net fair value gains from investment properties of S$392 million. The revaluation gains arose mainly from our portfolio of lodging properties in the United States of America, Europe and United Kingdom, new economy properties in Australia as well as office and malls in Singapore. The Group achieved record asset recycling of S$13.6 billion in FY 2021 and recognised portfolio gains of S$699 million (FY2020: S$163 million) at the EBITDA level. The gains mainly came from the divestments of two shopping malls and three office buildings in Japan, an office building and a business park property in Singapore, a lodging property, two business park properties and the sale of partial stakes in six Raffles City properties in China, partially offset by the transaction costs for the restructuring and listing of the Group. Geographically, approximately S$1,699 million or 69% of the Group’s EBITDA was derived from developed markets and S$770 million or 31%was contributed by emerging markets. Collectively, the Group’s two core markets, Singapore and China, accounted for 33% and 28% of the Group’s EBITDA for FY 2021 respectively. S$2,469M REVENUE & EBITDA – BY BUSINESS SEGMENTS Fee Income-Related Business (FRB) CLI’s focused efforts on driving fund and lodging management growth saw revenue from FRB increase 15% year-on-year to S$905 million. The increase was mainly contributed by fund management fee-related earnings (FM FRE) due to higher transactional fees from listed funds and private funds as well as higher base management fees on the back of 10% growth in funds under management (FUM) to S$86 billion. This led to a 10 bps year-on-year improvement in the FM FRE/FUM ratio to 50 bps for FY 2021. In addition, lodgingmanagement fees also improved on the back of better performance of the underlying properties across geographies with the easing of COVID-19 measures and travel restrictions. FRB’s EBITDA for FY 2021 increased 81% to S$315 million (FY 2020 : S$174 million) due to higher revenue and absence of impairment of goodwill for lodging platforms in Australia and Indonesia in 2020. Excluding the goodwill impairment, EDITDA increased by S$30million or 10%for FY 2021, in linewith the increase in revenue. The EBITDAmargin for FMbusiness, which is the single largest contributor to FRB, remained stable at 54% for FY 2021. Real Estate Investment Business (REIB) Revenue from REIB rose 15% year-on-year to S$1,506 million (FY 2020: S$1,314 million). The higher revenue mainly came from new acquisitions in China, Australia and USA, higher occupancy from 79 Robinson Road¹, Singapore and improved performance from lodging assets as global travel restrictions eased in 2021. FY 2020 Listed Fund Management Fund Management Private Fund Management Lodging Management Property Management Total 15% FY 2020 FY 2020 FY 2020 FY 2020 FY 2020 FY 2020 FY 2021 FY 2021 FY 2021 FY 2021 FY 2021 FY 2021 FY 2021 222 Private Funds 84M Private Funds 8% Listed Funds 12% Listed Funds 295M 33% Listed Funds 222M 84 150 330 786 295 114 190 306 905 409M 306M 26B 28B 78B 86B 23M 2M 91M 82M 52M 19M 243M 203M 52B 58B FRB REVENUE (S$ million) FUM AND FUND MANAGEMENT REVENUE (S$) Private Funds Listed Funds Private Funds - Event driven Private Funds - Recurring Listed Funds - Event driven Listed Funds - Recurring 34% 10% Private Funds 114M 36% 1 FM FRE/FUM ratio is computed based on average FUM for the year. 2 FM FRE comprises recurring FRE of S$334 million (FY 2020: S$285 million) and event driven FRE of S$75 million (FY 2020: S$21 million). FM FRE2 FUM FY2020 FY2021 FM EBITDA Margin 56% 54% FM FRE/FUM Ratio 1 40 bps 50 bps FY 2021 Performance Review FY 2021 Performance Review FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE 1 CLI announced divestment of 79 Robinson Road to CICT and COREF on 25 March 2022. Annual Report 2021 31 CapitaLand Investment Limited 30