FY 2022 Full-Year Financial Results Briefing

Morning ladies and gentlemen A very warm welcome to capital and investments financial results for the full year 2022 My name is Grace. I'm the head of investor relations and you're MC for today It's amazing to think that another year has just flown by and we're delighted to share with you How CLI has performed in our first full year of operations since listing in September 2021 I'd like to extend a very warm welcome to our analysts members of the media as well as our finances who are joining us in person and For those who are watching via zoom. Thank you for joining us virtually We're broadcasting live from we was flagship asset at 21 call year key Which is an office building owned by capital and integrated commercial trust in Singapore

We have Tony Tan zero of CICD here reverse as well And this is we work the largest office in Asia Pacific spending more than 200,000 square feet So for our guests here, you're welcome to explore this amazing space after this meeting Now please allow me to give you a quick rundown of today's program We'll begin with a presentation by our newly appointed group CFO Mr. Paul Tom Paul joined CLI as deputy CFO in 2021 and this will be his first time presenting the results And after that we will have Chiku and our group CEO to share his thoughts and outlook before we proceed to Q&A So without further ado, let's welcome Paul to share some good news with us Thanks Grace. I think I'm gonna stay here because I'm a little scared. I'll fall off

Well, good morning everyone. Thank you all very much for joining us here This is actually I have to say is a lovely office and it's really nice to see all of you in person So as Grace mentioned, I'm gonna share a little bit more on our FY 2022 numbers give you an outlook of Sense of how the year went for us both from an operating and financial perspective and then I'll pass over to Chiku And who will really give you our outlook for 2023 So please save your tough questions for him So 2022 was a challenging year for real estate markets and particularly some of this really impacted us as well I think there were two main things that really did Have an impact on us. The first was really around inflation and interest rates Inflation interest rates in the second half of the year

We saw significant uplift force or hikes by a lot of central banks globally And that put a lot of pressure on us particularly in terms of transactions You know, we have a large red platform and the increasing interest rates put a lot of uncertainty and a slowdown on our transaction Volume if you look at the first half of last year think five out of six of our roots were active second half of the year That slowed down quite a fair bit So our view is that this year things will settle a little bit We may see a little bit more in terms of hikes, but as long as that little bit more stability We like to believe that that transaction activity will start to recover The second big thing that impacted us was really around China geopolitical tensions Russia Ukraine US China that had a distinct impact on our ability to raise

Global capital going into China which was always one of the thrust we had going forward Fortunately, if you've seen the news yesterday and today we've announced a couple of new funds Which is really foreign capital going into China and we think that's a very positive sign for us for the year going forward But last year certainly a challenging environment together with that COVID zero policy In China obviously with the long downs that meant direct impact to us in our lodging business in terms of rental relief And that did have a drag effect on our financials But I believe there's obviously this year with the reopening up and no pressure on Sis Yang and his team But we expect that there will be an uplift and improvement on the China side So a lot of macro factors last year that had a challenging impact on us

Some that continues into this year, but overall I think we're much more positive on how the environment would be Some very key highlights won't go through all of this. We're going to detail with the slides But one is operating performance for us was actually pretty good FUM (Funds Under Management) grew to 88 billion if you actually if it wasn't for a currency impact that would actually be closer to 92 billion But obviously sing dollars strengthened against almost every currency by the US dollar and so that brought that down to 88 In terms of embedded FUM (Funds Under Management) and this is for us is capital that has been already committed or deals that are in progress for our roots We're actually up another eight billion so currently sitting at 96 billion well on track for our organic hundred B target Logging had a great year

Ask our best year. We've had we expect that will continue, but it helped us a fair bit last year and then on divestments We hit 3.1 billion exceeding our three billion target But obviously looks a little bit more challenging given we had an exceptional year before in 21 where we Divested gross asset of 13 billion so a little bit of a drop there How the improved operating performance translated was better operating patney? We're up 22 percent However total patney comes down because of the slowdown in fair value gains and also the slower recycling So hopefully in this year we start to see a little bit more of a pick up And then in terms of dividend given the strong operating cash flow Operating cash flow for us this year was actually stronger than the year before so we're maintaining our core dividend at 12 cents

and also Distributing in species an additional six cents or approximately six cents of capital land as got trust units as a capital management two also To let shareholders and CLI also join in part of the recovery and lodging That's the quick overview Going into some of the details a little bit Patney for 2021 2022 as mentioned operating patney up 23 percent And part of that was Off-set actually so actually operating performance would have been better We had a little bit of an offset from forex losses Given the strong sing dollar versus most other currencies and also had rental rebates in China off about 30 million And so that actually offset the uplift we had but we expect that operating patney trajectory will continue

Obviously the big swing for us were the two columns in the middle portfolio gains and Evaluation and impairment or revalu- or lack of revaluation gains You can see the big drop off and if you look at the portfolio gains 616 to 2 2 That was really the big difference there for us also again was China the year before we had the raffle city Divestments last year, you know a lot of these gains actually came out of other markets So hopefully this year we get a little bit more momentum going back on the portfolio gains through more capital recycling Evaluation largely flat versus uplift the year before so we won't go into all the breakdown on our e-beda But we break down our e-beda and our financial results by business

By geography and by asset class. Maybe just highlight two things One is if you look at the middle chart The inner circle shows you the 2021 numbers the outer circle gives you the 2022 if you look at our breakdown by geography China has historically been about one third of the business Middlely before we could before restructuring it was closer to 50 percent But we should be at about one third of the business if you look at the chart what you'll notice is 2021 versus 2022 move from 28% contribution to 11% contribution So that really for us was a lot of the difference a lot of the other markets actually outperformed the year before including Singapore Which became quite significantly much larger as a contributor But overall we saw improvements in most markets and hopefully that 11% and larger this year

The other thing to highlight on this slide is asset class generally you look and you can see a pretty well balanced portfolio Obviously one distinct change is the increase in lodging lodging contribution has become much more significant for us This is great from a fee income perspective because this is good steady Recluring income from our lodging management and we're actually very very pleased by the contribution that we've seen over the last year and Given the trajectory of the market look forward to that continuing to increase This is a breakdown of our financials by business segment. I won't go through This it's just a different cut the only thing maybe to focus on is on the right-hand side of the slide You can see how operating pat me numbers and how that breaks down We break it into two components of the business our fee related business which is the FRB and our real estate investment business our real estate