#1116 E CapitaLand CapitaLand Limited Presentation For Debt Investor Tokyo Non-Deal Roadshow 9 April 2015#22 ✓ 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#33 i Financial And Key Credit Highlights Well-Diversified Portfolio Strong And Consistent Operating Track Record Prudent Capital Management Diversified Funding Sources Multiple Platforms To Recycle Assets And Tap Capital CapitaLand#4Well-diversified Portfolio ION Orchard, Singapore#5• • Deepening Presence In Core Markets, While Building A Pan-Asia Portfolio TAL Total RE AUM Of S$70.6 Billion' And Total Assets Of S$43.3 billion² As Of FY2014 83% Of Total Assets Are In Core Markets Of Singapore & China Corporate & Others** S$6.6bil, 15% S$1.4bil, 3% Europe & Others# S$2.5bil, 6% CLC S$10.5bil, 24% Other Asia** S$4.7bil, 11% CMA S$13.0bil, 30% Note: By SBU CLS S$11.8bil, 28% By Geography Singapore S$17.8bil, 41% 1. Refers to total value of all real estate managed by CL Group entities stated at 100% of property carrying value 2. Defined as total assets owned by CL Group at book value and excludes treasury cash held by CL and its treasury vehicles China including Hong Kong * ** Excludes Singapore & China and includes projects in GCC *** Includes Surbana, StorHub, Financial Services and other businesses in Vietnam, Japan, and GCC 5 # Includes Australia China* S$18.3bil, 42% CapitaLand#6✓ Well-Diversified Portfolio In Core Markets Singapore Assets - S$17.8 billion (41% of Group's Total Assets¹) Serviced Others Residences 1% 6% China Assets - S$18.3 billion (42% of Group's Total Assets¹) Residential 21% Retail 21% Serviced Residences 8% Others 1% Residential 32% Retail 27% 6 Note: Commercial & Integrated Development 45% Well-balanced To Ride Through Cycles 1. Excluding treasury cash held by CapitaLand and its treasury vehicles. Commercial & Integrated Development 38% CapitaLand#71 Optimal Portfolio Mix 2012 2013 (Restated) 2014 Others Serviced Residence 12% Others 2% Residential 32% Serviced Residence 15% 2% Residential 30% Others 2% Serviced Residence 13% Residential 26%(3) Retail 25% 7 Commercial & Retail 25% Integrated Developments(2) 29% Total Assets By Effective Stake: S$26.8B Retail 29% Commercial & Integrated | Developments(2) 28% Total Assets By Effective Stake: S$28.9B Commercial & Integrated Developments(2) 30% Total Assets By Effective Stake: S$33.1B(1) Majority or ~3/4 Of Total Assets Contribute To Recurring Income; ~1/4 Of Total Assets Are Trading Income Refers to total asset by effective stake, excluding Treasury Cash. Note: 1. 2. Excluding residential component. 3. Includes strata office CapitaLand#8Strong And Consistent Operating Track Record Capital Tower, Singapore#99 Well-Balanced Operating EBIT (1) Contribution By Various Asset Classes Serviced Residence 9% Others 7% Residential 27% Investment Properties Operating EBIT: Retail 26% S$1.8 billion² One-off office strata sale (Westgate Tower) 11% Trading Properties Commercial & Integrated Developments 20% For FY 2014, ~61% Of Operating EBIT Contribution Comes From Investment Properties Which Is Recurring By Nature Note: 1. As of 31 December 2014. Refers to Total EBIT from continuing operations excluding portfolio gain, revaluation gains and impairments 2. Excludes corporate/unallocated costs (S$68 million) CapitaLand#10✓ FY 2014 PATMI¹ Composition Analysis S$' million 1,400 1,200 620.7 53% 75.52 (161.3) (14%) 1,000 800 600 705.3 400 61% 200 (3.9) 0% 545.2 1,160.8 100% 0 Operating Profit Portfolio Gains/ (Losses) Revaluation Gains Impairment PATMI Total PATMI Realised Revaluation Gains Total PATMI comprises PATMI from continuing operations and discontinued operations of S$29.1 million Realised revaluation gains relate to divestments of serviced residences. Note: 1. 2. 10 CapitaLand#11Strong And Consistent Operating Track Record "Cash" PATMI Vs "Non-Cash" PATMI 90 4082 100 60 80 39% 46% 70 70 33% 39% 50 50 40 40 67% 30 30 61% 61% 54% 20 20 60 60 10 0 FY2011 FY2012 FY2013 (Restated) ☐ "Cash" PATMI "Non-Cash" PATMI 2 Operating PATMI Is A Key PATMI Driver 11 Notes: 1) Cash PATMI comprises operating PATMI, realised revaluation gain and divestment gains/losses. 2) Non-cash PATMI comprises unrealised revaluation gains/losses and impairment FY2014 CapitaLand#12Prudent Capital Management Raffles City Beijing, China#1313 Prudent Credit Ratios FY 2011 FY 2012 FY 2013 FY 2014 (Restated) Cash (S$ billion) 6.3 5.5 6.3 2.7 Net Debt/Equity 0.31 0.45 0.39 0.57 Net Debt/EBITDA¹ 2.6 3.9 3.7 4.8 Interest Coverage Ratio¹ 5.7 5.5 5.7 7.2 Interest Service Ratio 2.7 3.3 4.6 4.6 % Fixed Rate Debt 66% 77% 70% 75% Ave Debt Maturity(Yr)² 3.8 3.7 3.6 3.3 NTA per share ($) 3.40 3.44 3.68 3.83 Balance Sheet Has Remained Robust Over The Years; Demonstrates CapitaLand's Ability To Grow Prudently Notes 1. EBITDA includes revaluation gain. 2. Based on put dates of Convertible Bond holders. Interest Coverage Ratio = EBITDA/ Net Interest Expenses Interest Service Ratio = Operating Cashflow/ Net Interest Paid CapitaLand#1414 ; Streamlined Cashflow From REITS Before After Legend CapitaLand CMA REITS Dividend Distribution ← Ownership CapifaLand REITS FY 2014 REIT Distributions of S$269.5 million • 3 tiers of 9 listed entities¹ reduced to 2 tiers of 6 listed entities . • Enables cash to flow more efficiently and for CapitaLand to make strategic capital allocation decisions CapitaLand now have access to all REIT distributions Streamlined Organisational Structure Crucial For Capital Management Note: 1) Include listed REITs: CapitaCommercial Trust, Quill Capita Trust, CapitaMall Trust, Capita Retail China Trust, Capita Malls Malaysia Trust, Ascott Residence Trust CapitaLand#1515 5 Well-Managed Maturity Profile (As at 31 December 2014) 76% Of The Group Debt Maturing In 2015 Relates To REIT Level Debt And Project Debt To Be Repaid With Sales Proceeds/Refinanced S$' billion 6.0 5.0 I Refinancing plans on track for debt ! due in 2015 4.0 3.5 0.6 2.9 3.0 2.6 2.2 2.0 2.1 Total Group cash balances and available undrawn facilities by CL's treasury vehicles = ~S$5.7bil 1.5 1.1 1.0 1.2 0.7 0.5 0.8 0.0 2015 2016 2017 2018 2019 2020 2021 2022 2023+ ■Project debt to be repaid with sales proceeds or refinanced as planned ■REIT level debt (Existing, separate funding platforms) 1 Note: 1. Ascott Residence Trust, Capita Commercial Trust and CapitaMalls Malaysia Trust 2. Based on the put dates of the convertible bonds CapitaLand#1616 Well Matched Assets & Liabilities (As at 31 December 2014) S$'billion 45 Cash & Equiv. Trade & Other Rec. 40 Pties Under Dvt/ Dvt Pties For Sale/ 35 Assets Held For Sale 30 Other LT Assets 25 Investment Properties 20 15 Interest in Assoc/JVs 10 5 Interest in REITS/ Funds/Trusts $44.1 billion Short Term $44.1 billion Other ST Liabilities Debt due within 4 years Debt due after 4 years Other LT Liabilities Equity & NCI Assets Long Term Equity & Liabilities CapitaLand#17Good Mix Of Fixed And Floating Interest Rates % of total debt S$' billion 18.0 $10.3b $10.4b $12.2b $14.2b $15.9b $16.0b 16.0 14.0 12.0 10.0 4.2 34% 2.9 3.5 28% 8.0 34% 100% 90% 25% 80% 4.1 4.8 3.3 30% 70% 23% 60% 50% 75% 70% 40% 77% 6.0 11.9 10.9 11.1 30% 66% 4.0 8.0 7.5 20% 6.8 72% 2.0 66% 10% 0.0 0% 2009 2010 2011 2012 2013 2014 Fixed Floating Note: Well-Mitigated Against Any Interest Rate Increase 1) Restated balance to take into account the retrospective adjustments arising from FRS 110. 17 CapitaLand#18✓ Disciplined Cost Management 18 % 60 6.0 5.0 4.0 3.0 5.6% 2.0 FY 2011 5.0% 3.7% 3.4% FY 2012 FY 2013 (Restated) (1) FY 2014 Implied Interest Rates² Have Decreased Despite Higher Debt, Translated To S$42 Million Decrease In Interest Costs In FY2014 Note: 1. Implied interest rate before restatement was 4.2% 2. Implied interest rate = Finance costs before capitalisation/Average debt CapitaLand#19Splaza Singapu WORLEY Diversified Funding Sources FM-Jewin EAS PAK Plaza Singapura, Singapore#20CTL SGD200m bank facility ✓ Successfully Tapped Capital From Multiple Sources¹ Bank Loans² . • CTL SGD800m bank facilities • CTL: HKD770m bank facility Equity/ Equity Linked ⚫ ART: SGD150m equity placement • • ART: SGD254m equity placement • CL: SGD650m 7-year convertible bonds due 2020 CL: SGD800m 10-year convertible bonds due 2023 • CRCT: SGD59m preferential offering Bonds . • CTL: SGD150m bank facility CTL SGD100m bank facility CTL: SGD150m bank facility CTL: SGD200m bank facility ⚫ CTL : SGD95m bank facility . • ART: JPY5b 5-year bond due 2018 ART JPY7b 6-year bond due 2020 ⚫ ART: SGD150m perpetual securities • • • ART: EUR80m 10-year bond due 2024 CCT: SGD50m 7-year bond due 2021 CCT JPY6.3b 7-year bond due 2021 CCT: JPY8.6b 8-year bond due 2023 CMMT: MYR200m 3-year bond due 2017 • • • • • . . CMT: SGD300m 10-year bond due 2024 CMT JPY5b 7-year bond due 2021 CMT SGD350m 7-year bond due 2021 CMT JPY10b 7-year bond due 2020 CMT: SGD100m 7-year bond due 2020 CMT: HKD650m 10.5-year bond due 2025 CMT: HKD1,104m 12-year bond due 2027 CMT JPY8.6b 8-year bond due 2023 CTL: SGD500m 10-year bond due 2024 20 20 Note: 1) Tables include major financing/loans raised within the Group between 2013 - February 2015. 2) Major bank loans at CL corporate level, excluding bank loans obtained by strategic business units. CapitaLand#2152 52 Strong Ability To Access Capital Markets¹ % of total debt 100% 90% 32 80% 70% 60% 50% 58 58 47 47 48 40% 29 30% 20% 27 27 10% 13 0% 2007 21 26 26 20 20 32 32 23 23 54 54 45 45 18 23 2008 2009 2010 ■Bank Loans Note: 1) As at December 2014 28 28 54 54 25 25 51 28 24 24 22 22 21 CapitaLand 2011 2012 2013 (Restated) 2014 ■CBs ■Capital Markets#22Strong Support From Our Principal Bankers Available Lines By Nationality Of Banks 22 22 7% 15% 9% 41% Singapore Japan China Europe Others 28% As Of FY 2014, ~ S$3 Billion Available Undrawn Facilities By CL And Its Treasury Vehicles; With An Active Relationship With > 30 Banks CapitaLand#23Multiple Platforms To Recycle Assets & Tap Capital One George Street, Singapore#24✓ Proven Capital Recycling Model Through REITS • · CapitaMall Trust First & Largest REIT by Market Capitalisation & Asset Size in Singapore Market cap: S$7.5b 16 shopping malls Asset size of S$9.9b NLA: 5.6m sq ft • First and Only China Cap/taRetail Shopping Mall China Trust S-REIT Market cap: S$1.4b ⚫ 10 shopping malls . Asset size of S$2.4b GRA: >600,000 sq m Cap/taMalls Malaysia's "pure- play" Shopping Mall Malaysia Trust REIT Market cap: RM$2.7b • 4 shopping malls. Asset size of S$1.3b NLA: >2.7m sq ft Cap/taCommercial First and Largest Trust Listed Commercial REIT in Singapore ASCOTT RESIDENCE TRUST Cand Premier Serviced Residence REIT with quality assets • Market cap: S$5.3b 10 properties in the CBD Asset size of S$6.5b NLA: ~3m sq ft Market cap: S$2.0b • 90 properties world wide Asset size of S$4.1b • >10,500 units 24 Notes: 1) All market caps are as at 4 March 2015 2) All asset sizes are as at 31 December 2014 CapitaLand#2525 ✓ Robust REIT Corporate Governance Practices Board • • REIT Boards comprise an independent chairman and at least half independent directors Minority unit holders' approval required for interested person transactions (IPT) when value is equal to or exceeds 5% of the REIT NAV/capitalisation CapitaLand nominees' abstinence from voting in IPT Treasury • Treasury guidelines on interest rate management, liquidity management, capital management and FX management Risk • Enterprise Risk Management framework consists of several risk management practices including risk & control self-assessment, investment risk evaluation, whistle-blowing and internal audit CapitaLand#2626 Our Real Estate Private Equity Funds* Residential/Rental Apartments/Mixed Developments CapitaLand China Development Fund China • Fund Size: US$400million • Closed in Oct 2005 · CapitaLand Township Development Fund I China Fund Size: US$250million Closed in Dec 2008 Raffles City China Fund China • Fund Size: US$1.18billion Closed in Jul 2008 CapitaLand China Development Fund II China • Fund Size: US$239.8million Closed in Jul 2008 CapitaLand Township Development Fund II China • Fund Size: US$200million Closed in Mar 2013 Raffles City Changning JV China • Fund Size: S$1.03billion Closed in Dec 2010 *Fund size as at respective fund closing date. • Vietnam Joint Venture Fund Hanoi & Ho Chi Minh City Fund Size: US$200million Closed in Nov 2010 ARC CapitaLand Residences Japan Fund Key Cities in Japan Fund Size: JPY12.6 billion . Closed in Sep 2005 CTM Property Trust Chongqing, China · Fund Size: S$1.12billion Closed in Nov 2011 CapitaLand#2727 ✓ Our Real Estate Private Equity Funds* (Con't) Shopping Malls/Serviced Residences CapitaMalls China Development Fund III China • Fund Size: US$1 billion • Closed in Jun 2012 CapitaMalls China Income Fund¹ China · • Fund Size: US$900million Closed in May 2011 Ascott Serviced Residence (China) Fund China • Fund Size: US$500 million ⚫ Closed in Jun 2007 CapitaMalls India Development Fund India Fund Size: S$880 million Closed in Nov 2007 CapitaMalls China Income Fund II2 China • Fund Size: US$425million Closed in Jun 2006 Notes: H CapitaMalls Japan Fund Key Cities in Japan • Fund Size: JYP$44.1 billion Closed in Apr 2005 CapitaMalls China Income Fund III³ China • Fund Size: S$900million Closed in Sep 2007 1. CapitaMalls China Income Fund was converted from Capita Retail China Development Fund closed in Jun 2006 and was upsized by US$300 million in May 2011 2. CapitaMalls China Incubator Fund was renamed Capita Malls China Income Fund II with effect from 6 June 2013 3. China Development Fund II was renamed CapitaMalls China Income Fund III with effect from 31 July 2013 *Fund size as at respective fund closing date. CapitaLand#2828 Established Track Record In Private Equity S$ Billion 20 18 16 14 12 10 7.6 8 a 4 2 15.3 12.8 12.8 11.2 0 2009 Note: 2010 2011 2012 2013 AUM¹ By Funds/Trusts (Excluding REITs) Has Doubled Since Five Years Ago 1) Stated at 100% of the property carrying value. 2014 18.4 CapitaLand#29Conclusion Six Battery Road, Singapore#3030 ✓ Conclusion • • Well-balanced portfolio enables the Group to ride through property cycles Prudent capital management ensures sustainable future. growth Able to tap on diversified sources for funds help to preserve financial flexibility Able to access multiple platforms to recycle assets CapitaLand#31116 E Thank You CapitaLand