#1CapitaLand CapitaLand In China Sept 2008#21 Disclaimer This presentation may contain forward-looking statements that involve risks and uncertainties. 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. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, availability of real estate properties, competition from other companies and venues for the sale/distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of management on future events. CapitaLand Presentation *Sept 2008* Cap/taLand#3CapitaLand Group 2 CapitaLand Presentation *Sept 2008* CapitaLand#4CapitaLand Group • One of Asia's largest listed real estate company • Presence spanning more than 120 cities in over 20 countries • Our Business Focus: Real Estate • Real Estate Investment & Development Projects • Real Estate Services Hospitality ⚫ Serviced Residences Financial Services • Real Estate Financial Services REITS Real Estate Investment Trusts CapitaLand#54 Australia Residential S'pore Real Estate China CapitaLand Retail 100% 100% 59.3% 100% AUSTRALAND CapitaLand CapitaLand Residential ·制德置地 Commercial 100% CapitaLand CapitaLand Retail Commercial 29.5% 30.6% CapitaMall Capita Commercial Trust Trust 20.5% 19.9% 30.0% Cap/taRetail Quill Capita China Trust Trust Hospitality Financial Svcs Financial 100%** 100% ILEC 100% CapitaLand Serviced Residences THE ILEC ASCOTT * GROUP 46.8% ASCOTT RESIDENCE TRUST CapitaLand Financial REIT & Fund Management CapitaLand Group comprises 7 listed Companies with total Market Capitalisation of S$21.2 billion (12 Sept 08) Other Listed Entities ** * Integrated, Leisure, Entertainment & Conventions CL completed compulsory acquisition of The Ascott Group on 28 April 2008 CapitaLand#6✓ Our Strengths • Strong Financials • Business Model: Focus on Capital Productivity • Balance: Multi-Geography, Multi-Sector • Good Access to Capital Markets • Stable Income Stream • Disciplined Risk Management CapitaLand Presentation *Sept 2008* Cap/taLand 5#76 1 Strong Financials Balance Sheet Strength Financial Position 1H 2008 Equity (S$ billion) 12.0 Cash (S$ billion) 3.4* Net Debt (S$ billion) 8.2 Net Debt/Equity 0.68* % Fixed Rate Debt 76% Avg Debt Maturity (Yr) 4.35 * Presented figures above exclude the following recent recycled capital of S$2.9 billion (1George Street, Raffles City projects, Capital Tower Beijing, Citibank Menara and Somerset Orchard). On a proforma basis, assuming these were completed on 30 June 2008 and all things being equal, the Group's Net Debt/Equity ratio would have been 0.43. CapitaLand Presentation *Sept 2008* CapitaLand#8Business Model: Focus on Capital Productivity Don't Land Bank Land Purch. Approvals Construction Leasing Operating Investment Market Market Market Market Risk Market Risk Market Risk Liquidity Liquidity Liquidity Liquidity Risk Liquidity Risk Liquidity Stabilized Assets Completion Compl Risk runding Fundin Desi & Aprova HIGHER VALUE ADDED REAL ESTATE ASSET VALUE#98 ¡ Capital Efficient Structure 5 REITS: S$16 B (76% of AUM) CAPITALAND Residential Development Self Liquidating Assets CMT Commercial Assets CCT Development, CRCT Warehousing, Incubation, Ascott Underwriting. APG (Value Creation) Private For Retail, Office, Funds Integrated Devts. CMT CCT Purchaser of Stabilized Assets CRCT ART QCT PE Funds: S$5 B (24% of AUM) Sharing Risks CapitaLand Presentation *Sept 2008* 17 Private Equity Funds CapitaLand#109 ¡ Balance: Multi-Geography Total Assets 1H'08 - S$27.1 billion Asia/GCC** $2.1B, 8% EBIT 1H'08 - S$1,286 million Asia/GCC** $50M, 4% Europe $1.3B, 5% China* $7.4B, 27% Australia & NZ $78M, 6% Europe $35M. 3% China* $533M, 41% Australia & NZ $5.3B, 20% * Singapore $10.9B, 40% Singapore $591M, 46% China including Macau & Hong Kong ** Excludes Singapore & China CapitaLand Presentation *Sept 2008* Cap/taLand#111 Balance: Multi-Sector 110 Total Assets 1H'08 - S$27.1 billion Others^ $7.9B, 29% S'pore Residential EBIT 1H'08 - S$1,286 million Others^ Financial Svcs $89M, 7% S'pore Residential $100M, 8% Financial Svcs $0.3B, 1% $1.9B, 7% $42M, 3% Ascott CapitaLand China* $$4.5B, 17% $57M, 5% Retail $241M, 19% Commercial $4B, 15% Ascott $3.4B, 13% Retail $5B, 19% Commercial $318M, 25% ^ Includes Cash, Australand and Corporate Office * China including Macau & Hong Kong CapitaLand China* $439M, 34% CapitaLand Presentation *Sept 2008* Cap/taLand#1211 ; Good Access to Capital Markets Debt Market CapitaLand Development Loan (Farrer Court) S$1,996 mil Convertible Bond S$1,300 mil Capita Mall Trust Medium Term Notes S$150 mil Convertible Bond S$650 mil Raised Capita Commercial Trust Convertible Bond S$370 mil >S$5 billion 2-Yr Committed Secured Loan S$650 mil YTD Medium Term Notes S$85 mil Medium Term Notes S$250 mil Capita Retail China Trust Share Placement S$182 mil Term Loan S$100 mil CapitaLand Presentation *Sept 2008* Cap/taLand#1312 Private Equity and REITS AUM of S$21.1b at 1H'08 GCC (1) • Raffles City Bahrain Fund Pan-Asian (3) Ascott Reit •IP Property Fund CapitaLand AIF India (1) Capita Retail India Devt Fund Japan (2) • Capita Retail Japan Fund Arc-CapitaLand Residences Japan Malaysia (3) • QCT • Mezzo Capital . Malaysia Commercial Development Fund CapitaLand Presentation *Sept 2008* Singapore (2) CMT CCT China (10) - created 3 new funds • • • • CITIC CapitaLand Business Park Fund Raffles City China Fund • CapitaLand China Development Fund II CRCT • Capita Retail China Development Fund • Capita Retail China Devt Fund II Capita Retail China Incubator Fund CapitaLand China Development Fund • CapitaLand China Residential Fund Ascott China Fund CapitaLand#1413 Stable Income Stream Strong Development Profits + Stable Fee Income Development Fund Manager Fund Mgmt/ Acquisition Fee Financial Advisor Advisory Fee Investor DPU Property Mgmt Fee Operator Profits Developer Project Mgmt Fee Asset Mgmt Fee Manager Cap/taLand#1514 1 Disciplined Risk Management Corporate Governance CL Board Audit Board Committee Risk Board Committee President & CEO Council of CEOs CFO Internal Audit Independent reporting line Risk Assessment Group (RAG) CapitaLand CapitaLand CapitaLand CapitaLand CapitaLand CapitaLand Residential 凱德置地 Commercial Retail Financial CapitaLand Presentation *Sept 2008* ILEC THE ASCOTT CROUP CapitaLand#16✓ Disciplined Risk Management Matrix of over 70 target returns across all property sectors and countries Proprietary Risk Model Target Return = WACC + Risk Premiums Other Project Specific Risks Legal & Regulatory Risk Operational Risk Physical Real Estate Risk Liquidity Risk Risks included in Risk Premiums Weighted Average Cost of Capital WACC (WACC) CapitaLand Presentation *Sept 2008* Cap/taLand#1716 1 Disciplined Risk Management Risk Adjusted Capital Allocation 100% 6% 7% 7% 12% Europe 7% 6% 5% 5% 90% 9% 11% 19% 16% 80% 21% 21% 20% 19% Australia & New Zealand 70% 60% 50% 72% 66% 44% 40% 42% 45% 61% 51% 40% 30% Singapore 8% 9% 6% 20% .9% Other Asia* 27% 10% 7% 9% 9% 8% 23% 25% 18% 6% 7% 7% 9% China 0% 2001 2002 2003 2004 2005 2006 2007 1H2008 * Before 1H2007, includes HK, India, Vietnam, Malaysia, Thailand and Japan From 1H2007, includes Vietnam, Thailand, Malaysia, GCC, Japan, The Philippines, and Indonesia (HK is part of China from 1H2007) CapitaLand Presentation *Sept 2008* CapitaLand#1817 Much Stronger Company Than Before 2000 1 H2008 EBIT (1st Half Results) S$364m S$1,287m Overseas EBIT Contribution 23% 54% (S$173m) (S$696m) No. of Cities 33 >120 Listed REITS & RE Funds 1 20 Assets Under Management S$265m S$21b No. of Retail Malls 7 115 Units of Serviced Residences 6,000 22,000 ROE 1.5% 15.0% Cash S$879m S$3.4b Net Debt/Equity 0.92x 0.68x Interest Cover Ratio 1.8 3.2 CapitaLand Presentation *Sept 2008* Cap/taLand#19CapitaLand China Market Overview Healthy Fundamentals CapitaLand Research September 2008#20Real GDP Growth (%) 19 1 China - The Economic Champion Real GDP Growth (2003 - 2011) 14 12 10 ∞ 11.9% China Asia 4 2008 Growth Outlook World - Weaker export demand US 2 - Investment still strong Europe - Robust consumption demand. Forecast 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: EIU & CapitaLand Research Cap/taLand#21In PPP* terms, China will be the Largest Economy Top 10 Largest World's Economy (At PPP) Rank 2007 2020 1 U.S. (USD 14 trillion) China 2 China (USD 7 trillion) U.S. I I 3 Japan (USD 4 trillion) India 4 5 6 7 8 9 I India (USD 3 trillion) Germany United Kingdom Japan Germany United Kingdom 10 I Russia France I Italy Brazil Russia France Brazil Italy I Source: CIA, EIU & CapitaLand Research * PPP (Purchasing Power Parity) Cap/taLand 20 20#2221 22 ✓ Healthy Private Consumption 12 J RMB trillions 0) 00 €10 2 Retail sales to grow at 13.5% p.a. (2006 – 2012) CAGR: 13.5% 10.2 9.2 8.2 7.2 64 5.5 4.8 4.2 3.4 2.9 2003 (a) 2004 (a) 2005 (a) 2006 (a) 2007 (a) 2008 (f) 2009 (f) 2010 (f) 2011 (f) 2012 (f) Source: EIU & CapitaLand Research Cap/taLand#23EIU Forecast Average 2008-12: US$92.4b 1 China - Strong FDI Destination Actural FDI inflow, US$ billion (2007) China's FDI Inflow U.S. UK China 120 199.3 186.1 100 85.4 Russia 55.0 Singapore 25.0 Australia 20.0 India 18.9 UAE 10.5 80 50 60 60 FDI Inflow (US$ billion) 40 40 20 20 0 0.0 50.0 100.0 150.0 200.0 250.0 Source: EIU & CapitaLand Research Cap/taLand Malaysia 8.6 Thailand 8.2 22 22#24Fast Forward to the Future - China's Urbanization in 2025 350 million will be added to China's urban population by 2025- more than the population of today's United States 221 1. billion people who will live in China's cities by 2030 Chinese cities will have one million + people living in them- Europe has 35 today 23 Source: McKinsey & CapitaLand Research 23 Cap/taLand#25Six New Megacities will Emerge by 2020 (> 10 million population) 2005 Megacities Beijing ➤ Shanghai Source: McKinsey & CapitaLand Research 2025 Megacities ➤ Beijing ➤ Shanghai ➤ Tianjin Shenzhen ➤ Wuhan ➤ Chongqing ➤ Chengdu ➤ Guangzhou 24 24 CapitaLand#26The Emergence of a Middle Class 2008: 40% Middle Class (200 million) 2015: 70% Middle Class ( 360 million) Share of urban households by income class, % 25 • 100 90 80 70 60 50 40 30 8 9 8 8 20 10 Actual Forecast Emergence of lower- middle-class segment Emergence of upper- middle-class segment Upper middle class (40,001-100,000 renminbi) Lower middle class (25,001-40,000 renminbi) Poor (<25,000 renminbi) Mass affluent (100,001-200,000 renminbi) Global affluent 0 1985 1990 1995 2000 2005 2010 2015 2020 2025 (>200,000 renminbi) Source: National Bureau of Statistics of China, McKinsey & Capita Land Research Two distinct growth waves. The first wave, in 2010, will be the lower middle class. . The second wave would be the upper middle class Cap/taLand#2726 26 Income Outgrows Housing Prices Index Indices 300 280 Average Selling Price/sqm-GDP per Capita Income per Capita 260 240 220 200 180 160 140 120 100 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: JLL Improving Housing Affordability 110 100 90 80 70 00 50 T 1007 1998 Relative affordab ty (Housing price relative to household income, 1507=100| 1999 Source: CEIC, Morgan Stanley Research 2002 2003 More affordable 1 1H 2008 Cap/taLand#28i Nation-wide Demand & Supply - Equilibrium Figure 15: Private residential housing-supply, demand and price MM sqm Rmb/sqm 3,788 800 3,665 700 3,132 3,500 2,937 600 2,608 3,000 500 400 300 1,509 1,509 1.605 1,790 1,854 1,8571,9482,0172,0922, 197 2,500 2,000 200 1,500 100 0 1,000 500 95 96 97 98 99 00 01 02 03 04 05 06 07 08YTD GFA completion (L) GFA Sold (L) Average price Source: CEIC & JP Morgan 27 27 Cap/taLand#2928 1 Government's Recent Positive Measures Government policies shift towards growth over inflation - - - 27bp cut in PBOC interest rate CPF loan rate for home buyers cut by 18bp Reserve Requirement Ratio of smaller banks reduced by 1% to 16.5% • Intention to allow Insurance funds to invest in real estate Cap/taLand#30CapitaLand CapitaLand China Holdings#31CapitaLand's presence Started in 1994, we now have over 4,300 staff over 40 Chinese cities. (as at 28 May, 2008) ➡ Total project development expenditures >S$ 9 billion (as of 28 May, 2008) Central China South Western China Chengdu Bohai Economic Rim Beijing 27% of CL assets in China as at 2Q, 2008 Yangtze River Delta Zhengzhou Shanghai Pearl Guangzhou River Delta CAPITALAND RESIDENTIAL CAPITALAND COMMERCIAL CAPITALAND RETAIL CAPITALAND FINANCIAL • THE ASCOTT GROUP CAPITALAND INTEGRATED LEISURE, ENTERTAINMENT & CONVENTIONS#3231 ✓ Residential Balanced portfolio across regions Others* GFA 0.26m unsold Yangtze River Delta (Shanghai) Total GFA 0.72m Unsold GFA 0.23m Bohai Economic Rim (Beijing) GFA 0.56m unsold Central China (Henan) GFA 2.18m unsold Pearl River Delta (Guangzhou) GFA 0.66m unsold Southwest China (Chengdu) GFA 1.25m unsold *Others: Lai Fung Holdings (20%) CapitaLand Presentation *Sept 2008* Cap/taLand#3332 32 1 Residential Our Position • Just in time approach business model - No land banking Sufficient pipeline for next two years -Current inventory: ~5m sqm GFA - Inventory net of sold units in coastal region ~1.44m sqm • Opportunity to replenish land bank - Opportunities emerging at coastal cities. CapitaLand Presentation *Aug 2008* Cap/taLand#34建業地產 Central China Real Estate 33 Central China Real Estate Strong 1H2008 Performance Revenue (locked-in 59% of target sales) RMB MM 2,000 1,821.7 1,800 1,600 1,400 1,261.3 1,200 1,096.0 1,000 800 600 400 200 0 ul.i 571.9 2005 2006 2007 1H2007 1 H2008 ASP (up 21.6% y-o-y) RMB per sq.m. Net Profit (forecast on track) RMB MM 700 650.0 600 1,208.3 500 400 300 236.2 165.0 200 141.0 55.2 100 37.7 0 2005 2006 2007 1H 2007 1H 2008 2008 Gross Profit Ratio 40% 37.7% 4,000 3,703 35% 3,359 28.2% 3,500 3,089 3,173 3,045 30% 26.1% 25.5% 3,000 25% 20.3% 2,500 20% 2,000 15% 1,500 10% 1,000 5% 500 0 0% 2005 2006 1 H2007 2007 1 H 2008 2005 2006 1H 2007 2007 1H 2008 -ASP GP Ratio CapitaLand Presentation *Sept 2008* CapitaLand#35A 建業地產 Central China Real Estate Central China Real Estate • Leading residential property developer in Henan Province 16 year track record of developing mid- to high- end residential homes • Focused Provincial Strategy • Strategic Investor: CapitaLand holds 27.1% • Plan GFA: GFA 7.8m sqm - - 1.3m sqm under development 4.7m sqm for future development 1.8m sqm land use rights pending Net debt to equity: 5.9% as at June 30th, 2008 Successful Product Series: The "Forest Peninsula" and "Green Garden" 34 CapitaLand Presentation *Sept 2008* Cap/taLand#361 Retail Footprint in China to expand to >70 malls Forged Strategic Partnerships with: SZITIC Jointly develop and manage Wal-Mart anchored malls; ROFR to acquire 70% of these malls up to the Year 2010ang Gansu Beijing Hualian Group ROFR to acquire BHG anchored malls Vanke Group Jointly develop and CRTL to acquire retail assets located in Vanke's townships Xizang (Tibet) Information as at 30 June 2008 Heilongjiang Ha'er'bin Jilin Inner Mongolia Huhehaote Liaoning Shenyang Beijing Dalian Tianjin Number of operational malls : 25 Ningxia Shanxi Hebei Anyang Zibo Weifang Qinghai Parano Laiwu Rizhao Target opening in 2008 : 7 Lanzhou Xinxiang Target opening in 2009 17 Shaanxi Zhengzhou Henan Xi'an Sichuan Mianyang Yangzhou Gangsu Anhui Hefei Shanghai Kunshan Ma'an'shan anghai Chengdu Deyang Wuhan ei Wuhu Chongqing Zhejiang Changsha Yibin Chongqing Guizhou Yiyang Zhuzhou Jiangxi Hengyang Nanchang Hunan Fujian Quanzhou Yunnan GuZhaoqing Guangdong Foshan Guangzhou Huizhou Zhanjiang Dongguan Maoming Jiangmen Shenzhen Hainan Zhangzhou Cap/taLand#37Retail - Structure Capita Retail China Development Fund I & II (~US$1.2 bil of committed equity raised) Capita Retail China Incubator Fund (US$425mil of committed equity raised) CapitaLand Retail Limited CRCT Status Asset Value (S$) Funds Exposure (S$) Gross Rentable Area (sqm) Total No. of Malls Approval obtained from 4.1 billion 3.4 billion 2.5 million 45 Chinese Authorities Pending approval from 3.9 billion 2.5 billion 1.0 million 10 Chinese Authorities Total Committed Under MOUS 8.0 billion 5.9 billion 3.5 million 55 18 Total 8.0 billion 5.9 billion 3.5 million 73 Information as at 22 February 2008 CRCT enjoys rights of first refusal to a proprietary and secured pipeline of assets held by CapitaLand-sponsored funds and CapitaLand Retail As at 30 June 2008 - Number of operational malls : 25 Target opening in 2008 Target opening in 2009 : 7 : 17 Cap/taLand#3837 40 ✓ Commercial Locking in Values Capital Tower Beijing • Divestment profit of S$163m • Net cash inflow of S$498m 4 Raffles City Projects • Divestment profit of S$183m • Net cash inflow of S$1,149m CapitaLand Presentation *Sept 2008* CapitaLand#3938 1 Commercial Pipeline of more than 1,220,000 sqm Projects Location Completion Time GFA (sqm) Raffles City Shanghai* Huangpu District, SH Dec 2003 133,000 Raffles City Beijing Raffles City Chengdu Dongcheng District, BJ 2008 97,665 South Renmin Road, CD 2010 195,431 Raffles City Hangzhou Qianjiang New Town, HZ 2011 283,568 Capital Plaza Daning Project Jiangbei District, NB 2010 97,941 Zhabei District, SH 2009 71,086 Wenjiang 110 Wenjiang District, CD TBC 73,647 Floraland Phase II Wenjiang District, CD 2014 402,103 Total projects 1,354,441 * Completed project CapitaLand#40Funds - 3 Residential China Funds Committed Equity of S$966m • CapitaLand China Residential Fund • CapitaLand China Development Fund • CapitaLand China Development Fund II : S$83m : S$547m :S$336m Diversified Presence South Western Central China China Beijing Bohai Economic Rim Yangtze River Delta Zhengzhou Shanghai Chengdu Guangzhou 39 CapitaLand Presentation *Sept 2008* Pearl River Delta Cap/taLand#41Funds - 4 Retail China Funds 3 Retail Funds & 1 REIT: S$3.5 Billion • CapitaRetail China Trust • CapitaRetail China Development Fund • Capita Retail China Development Fund II • Capita Retail Incubator Fund : S$1,156m : S$821m : S$900m : S$581m 40 40 Changsha, Hunan Jiangbin Mall, Quanzhou CapitaLand Presentation *Sept 2008* Danshui Mall, Huizhou CapitaLand#421 Funds - Raffles City China Fund 4 Raffles City Projects in Gateway Cities • CapitaLand's first integrated development private equity fund in China - Invest in prime mixed-use commercial properties in key gateway cities • Successfully raised US$1.0 billion • Largest fund originated and managed by CapitaLand • 4 seed assets from CapitaLand (total consideration: US$841 million) Raffles City Shanghai Raffles City Beijing Raffles City Chengdu Raffles City Hangzhou CapitaLand 41 41#43Funds - 1st RMB Commercial Fund Tap On Domestic Liquidity CITIC CapitaLand Business Park Fund (CCBPF): RMB500m - Seed asset: CapitaLand's IBM China Centre, Beijing 442 42 CapitaLand Presentation *Sept 2008* CapitaLand#44✓ Ascott - Ascott – Major Player in China Largest international serviced residence owner- operator • Operate 25 properties with more than 4,400 units. in China Portfolio spans 12 cities across China 2010 Target 10,000 units in China ASCOTT THE RESIDENCE SOMERSET SERVICED RESIDENCES Central/ West China Citadines APART HOTEL Shenyang Bohai Economic Rim Beijing Dalian Tianjin Qingdao Ascott Guangzhou Xi'an Yangtze Nanjing Wuxi River Delta Chengdu Wuhan Szhou Shanghai Hangzhou Ningbo Chongging Pearl River Guangzhou Shenzhen Delta Macau Hong Kong Cities with an Ascott presence New cities Ascott expects to expand into#45Going Forward 44 CapitaLand Presentation *Sept 2008* CapitaLand#4645 1 Going Forward • China's fundamentals remain strong High GDP growth and strong FDI -High urbanization -Growing middle class and healthy housing affordability • Positioned to tap on market dislocation Strong financial standing of the Group Limited unsold GFA - To seek opportunities at coastal cities • Strong on-the-ground execution capability ― Management bench strength -Track record of delivering quality product on time and within budget CapitaLand Presentation *Sept 2008* Cap/taLand#47Thank You 46 CapitaLand Presentation *Sept 2008* CapitaLand