Proposed Strategic Restructuring & Demerger Briefing

Good afternoon, everyone. How was everybody? It's good to see you guys again. It's been a while I'm grace head of investor relations of capital land limited Today marks another milestone for capital land since we announced or since we started our strategic transformation in 2019 I'm sure all of you and including our viewers online are very excited to hear what we have for you and I hope you have the whole afternoon because our group CEO has prepared one of his longest presentation since helping Capital Land. Chikun will share about the rationale of this restructuring with this you know the news this morning we hope to move faster sharpen our

focus and our group CFO will also take over and join him to talk about this new entity that we are So with that, sit tight, I'll invite our group CEO, Mr Lee Chikun to take the mic. Hi afternoon, thank you for making time despite a very short notice. I hope you had some time to digest the materials that we had circulated this morning. I'll take the time to run through some of the details and hopefully give some clarifications as well. So today is the 22nd of March.

I was reminded by my colleagues exactly two years ago. This was the same day when we dispatched out the circular to get essentially to all shareholders to get them to approve the merger between the Sander-Sim Bridge and Capital N. So thank you for coming again. This is a The last, ever since the merger with Asender Sync Bridge, I think what we have done is we have articulated a very clear strategy of what we wanted to be. We wanted to be a globally competitive real estate developer and asset manager. And throughout the entire two years, I mean, you have seen us very focused in terms of our

and asset manager. And throughout the entire two years, I mean, you have seen us very focused in terms of our execution. I mentioned number of times before, our business model was a very simple one where it's all around, revolves around this concept of value, how we find value, how we add value, how we unlock value. And we stayed very disciplined in the way we, in terms of our capital management, and very, very disciplined in the way we execute our strategies. I think all of you are familiar in terms of the various things that we have done, whether it's on the REITs, on the fund side, and also on the development side.

I think the team has worked extremely hard to deliver on the businesses and the outcomes. So today, actually the restructuring actually involves the creation or rather the restructuring involves putting capital line into two distinct entities. One is known as Capital and Investment Management. One will be known as the Capital and Development. Capital and Investment Management will be listed. It is an entity that's going to be focusing on AUM growth, it's asset like capital efficient, focusing on driving fee income. The development side will be taken

private by CLA, there is a parent holding on to capital land, it will be taken private, and the reason why it is taken, we believe that it should be a private business because The business itself is long gestation. It requires patient capital. We believe that by organizing in these two different ways, you'll get the right level of capital to support the growth of the two different businesses. And of course, as part of the transaction itself, we are also taking the chance to distribute 6% of the CICT units to all shareholders. So that's the transaction as a whole.

The reason why we are doing this is first and foremost, it fits in terms of the longer-term strategic objective. We say we wanted to be a developer asset manager. That doesn't change. One is going to be done in a privately held entity. One is going to be done in a listed entity. The second reason is that it helps to sharpen the focus. On the listed side, we can be very, very disciplined in terms of deploying capital on buying asset management platform in creation of a fee income. Otherwise, when you are sitting on the listed platform trying to do capital allocation decisions where you have to look at a big master plan township type development, it becomes very

challenging because you can be deploying capital and the returns will take a bit longer time to come true. So by having distinct entities will give us that level of flexibility and being able, like I mentioned earlier, to match the right level of capital to the business objectives. Thirdly, if you look at this chart here, I think it's in the slides that you have, if you look on the left-hand side, traditional developer typically trades at about 0.6 to 2.8 times book. I mean, capital land for the last 10, 20 years, typically we have been trading at about 20 to 30% discount to book value. And if you look at some of the investment

managers, whether it is Charter Hall, the Blackstone, the Brookview or the Goodmans of the world, the kind of trading multiple that they can have, I mean, it's evident on the green graph that you can see on the left hand side of the chart. On the right hand side, if you look on a forward PE basis, I think it indicates the same thing. So fundamentally we believe that if we can list the investment management business separately, holding on to the REITs, the private equity funds and into the investment properties that can be recycled within a short period of time. I think that that should allow us to trade better than what we are trading today.

So post the transaction, we're going to organise the business into two different entities. Okay, CLIM and Capital and Development. So the Capital and Investment Management will have the fund management business, the lodging business, okay, and you will include all the REIT units, the private equity funds, to read managers and also investment properties investment properties that can be recycled within the next two years and maximum three years. Giving it the ammunition to recycle and to provide the capital for further growth. Okay, as a asset manager scheme. On the capital and development side,

what you will have will be all the big township projects the residential development projects in Singapore, the development projects in Vietnam, in India, and in China, at the same time, it also includes investment properties, investment properties that it's going to take more than three years before it can be recycled. Okay, because some of the properties will take a longer time to reach the level of maturity before it can be recycled. So if you take the step back, okay, there are two different businesses, one on the right hand side, the capital investment management business, through this restructuring all existing

shareholders of capital and will continue to own this part of the business. So we can continue to hopefully enjoy the growth and the upside through the listing of the the CIRM. At the same time, the development of the business is the one where it will be taken private. We have negotiated with CLA to take private this business as 0.95 times NAV. 0.95 times NAV. In our view, we think it's a fair price to be able to get for the business because it is a development business. And the second point is that it is also taking over some of the projects that is going to