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

take longer time to reach a level of maturity for recycling. And again, the big picture, big picture, this part that's taken private, we negotiated 0.95 the cost of the business, the cost of the business, the consideration for this part of the going to be paid in cash, which is for every share that you own in Capital N, you'll be

payed 95 cents of cash and also CICT units that CLA do not wish to So if I can bring you to this chart here to give you a better explanation. So for one capital N share, an existing CL shareholder will get one claim share, about 95 cents in terms of cash consideration. There will be two parts of the CICT units. One part of the CICT units is the one that's distributed to all shareholders. That means everyone is entitled to it and the other part is the consideration That CLA has decided not to participate okay, so the consideration for the privatization is two parts one is the 95 cents of cash and

17 cents of the offer us entitlement Okay, so that's for the taking private side of the consideration I the I'm going to take a look at the I hope that's clear, because it's thought I wanted to take a bit of time to go through this details review. In terms of the entire consideration, our view, if you take a look at this slide here, assuming, okay, the CLIM trades at one time book, okay, you include the units. If you look at whether it's comparing against the last close, the five year Vwap or the ten year Vwap, it is a good 24 to 28 per cent upside for the capital land shareholders.

There is immediate unlocking of value for existing shareholders and shareholders will also get to participate in the growth of the capital and investment management that will be separately listed by way of introduction on the Singapore stock exchange. So I think it is a pretty exciting transaction from our point of view. So that's the big transaction construct. And the final point I want to highlight is that even though we're going to create two different distinct entities, one listed and one unlisted. We want to be able to preserve the ecosystem that Capitaland currently enjoys, so that

the Capitaland investment management will be able to enjoy development pipeline of assets that are stabilised and can continue to feed the growth of the AUM business, whether it's on the REITs or the private equity fund. We think this will be a unique and distinct advantage for this particular CLIM that is quite different and unique compared to most other investment managers that you can see around the world. Okay, so that is something that we want to be able to preserve. Of course, because one is going to be listed, one is going to be unlisted, we want to make sure that there is proper governance structure, proper shared services agreement that's going

to be signed between the two entities, but making sure that we do not want to simply because we do a restructuring, we do not want to preserve the advantage that the existing capital end system has to drive the growth of the investment management business. Okay, so that's the, even though Grace has given you expectation I was going to do a long presentation, it's never my style. If I can explain in fewer words to you, that's always been my preference. I hope that my short explanation has given you a clear idea. Two things, one is a strategic rationale why we are doing this deal and what is in it for

the shareholders to support this particular transaction. And I leave Andrew, you know, who speaks very good, Queen's English, to be able to share with you more details about the growth prospects of the investment management business. Thank you. So, thank you, everyone, for doing the hard part of the presentation. It remains for me to introduce Klim to all of you, something that we fully believe in 100%. So maybe you want to take 30 seconds to digest what just went on. I know it's a lot to take in. We will have a full Q&A session to answer your questions. So the second half of the presentation, I'll

introduce Klim, the listed part of the Capital N listed part of the Capitalized Group going forward. We believe that CLIM will be a leading global real estate investment manager. Here's why. Try to think about CLIM the way we have set it up. We believe that there are two parts to CLIM. On the left-hand side is what I like to call the income side of the business. These comprise two groups. One, stakes in our REITs and our private funds. These you know well. give us recurring income through a share of distributions. Two, we have put in about 10 billion of, as Chikun mentioned, highly visible near-term recycling candidates into the balance

sheet of CLIMP. So this will give us, again, income in the near term, but what it importantly gives us is the ability to recycle. And you guys know how committed we are to recycling. This is the income part of the business. But really the exciting part is growth and that's on the right-hand side. As you again, you have been pestering us to focus on and we've been listening. The growth part of the business also comprises two parts. One is our funds management platform. This is where we get our FUM. It's essentially our stakes and rather our read managers and our fund managers. We've been growing our FUM at 11% Kegge, focused on growth over the last five years.

We are the largest SREET BT platform on SGX, of 77 billion in FUM. Second part of the growth platform is our lodging business. And this is an area that hopefully from now on will get the recognition that the market will give it, because we think this is prime to be a key part of the growth story for Klim. It's a global SR manager. We are arguably the leading long-stay service residence operator in O'Neill Noble. 122,000 keys under management with a target to hit 160,000 by 2023. We have been growing our keys, as you will see, by about 19% kega. And this brings with it very, very ROE-accretive fee income,

very, very asset-like, very capital efficient. So that's why it belongs on the growth side of this chart. Total AUM, 115 billion of CLIMP, over 100 billion is on the right-hand side, already earning fee income, or soon to be earning fee income. The left-hand side is the remaining AUM that hopefully will be turned into FUM before too long. I hope that gives you a picture of how we are organizing CLIMP. Income on the left, growth on the right. Now, for those of you who follow REI-IMs, real estate investment managers, each of these investment managers possess a mix of income and growth. There's a spectrum of how much the business is in income, how much of the business is in

growth. I want to leave with you today that we are not the finished article on day one. We will have a mix of income, we will have a mix of growth. We want to grow that right-hand side as quickly as possible so that that becomes the major contributor to CLIM's profitability and earnings growth going forward, but it will not be the case on day one. But we want to set the stage to have the vehicle to allow us with the capital base, with the asset pipeline, with a stable recurring income base with which to fuel our growth of FUM on the right hand side. CLIM will have a full stack of investment and

and operating capabilities. So here we've organized it again by FUM. So we follow through the 78 billion of FUM on the rightmost column. We split that up into a listed platform, which you know very well. We have three global REAP platforms. We have three country-focused REAP platforms. We're going to go forward and grow three streams, core streams of fee-related earnings, commercial and integrated. new economy thanks to the combination with the senders two years ago and finally lodging. So there will be key three core income streams that we will focus on and we'll have a fourth column for alternative assets such as credit and perhaps new businesses that we will incubate

and grow fee income going forward. So the listed platform takes up 52 billion of FUM. The unlisted platform, we've got 25, 26 PE funds with new funds coming on stream, currently representing 26 billion. This is again another high growth area for us. I think today it's probably fair for us to acknowledge that this has been slightly slow in taking off the ground. But by again sharpening our focus on growth, we think we will allow us to really focus on growing the PE side of the business going forward. Different strategies that currently exist, again, very widespread across Core, Core Plus. We now have a credit fund and we have value

and opportunistic capabilities across our multi-sectors. Last but not least, and I think this is a key differentiation point with other investment managers, we have a best in class in-house operating capability across all of these sectors in our core markets. And I think this allows us to value add very, very effectively on our ability to grow the asset and add value to the value of the underlying IP. This we have in our core markets. We will outsource this to our partners in our growth and secondary markets, and particularly new businesses. So when you combine all of this together, I think you start to see that Klim comes together

very, very effectively in a very compelling way, where you've got the asset platforms, you've got the operating businesses, and you've got this coming together in a very synergistic, efficient, and scalable platform. So those two slides, I just want to give you a heads up, a big overview of what Klim is designed to do. Five key takeaways if you were to write your headlines as to why we think Klim can be a leading global real estate investment manager. We are a global leader in global RIM, but we're also Asia centric. We have a proven fund management track record. It's a highly scalable pipeline. We have a world class, very distinctive,

lodging management platform, and finally an experienced investment and asset management team. So let's look at scale. So here we have the top 15, I believe, REIMs. The red dotted boxes are the listed platforms. So right off the bat, there is scarcity value in investing in a listed REIM. There are only three on the top 15. And if you look at the flags, there's actually only one that is dormant South in Asia, and that will be CLIMP. So we think that this positions CLIMP very, very well in profile, in being investable, and being part of this very, very select group of highly valued

investment managers. This slide gives you a sense of the breakdown in REAUM as well as FUM. Focus on the right-hand side, where you look at the red box, you see that 80% of our FUM are actually in Asia. That's why we say that while we are a global manager, we are actually very much anchored in Asia. A lot of the FUM is sitting in our core markets. So you see Singapore, China, India, where we have very strong growth, other Asia, including Australia, and then we've got our international business. We also break out REAUM and FUM to give you an indication that the REAUM is hopefully future FUM

as we convert that on balance sheet investment property portfolio into assets that sit in our funds and our REITs and allow us to earn FRE. And of course, if you look at the lodging column, you see a very, very large REAUM. That's our Esker business where we are managing current units as well as future keys under construction that will then be part of our FRE. Let's look at track record and for these slides, I want to focus on FUM. This is the part of the business that is under our reach and our funds. Five years ago, we were 46 billion FUM. I would say retail heavy, 53% of FUM was in retail.

After five years of 11% KEGG in FUM, we are now 78 billion. And if you look at the pie, much more balanced, much more diversified, 25% in new economy FUM. So I think this speaks to the track record of the group in not only delivering a nice growth kegger in FUM, which earns fees, but also achieving much better balance, much better diversity across the investment portfolio. Together with FUM, on the left-hand side, for which we have been earning an average about 40 basis points on each dollar of FUM. We have been growing our fee income at a clip of about 12%,

over the last three years, and earning an average EBITDA margin of 56%. This again, flows down to the profitability, the future profitability of CLIMP. Capital recycling, key part of the group, for those of you who have been following us for the last three years, we have really upped our game, staying committed, disciplined, focused on making sure we are recycling capital when the time is right. So on the left-hand side, you see our gross value capital recycling over the last three years. I've separated the capital that we recycled from sponsor in blue and the capital that we recycled through our REITs in dark blue to show you that the light blue part is what's important,

the ability of sponsor to recycle that capital. And more than five billion of that capital has been recycled into capital and REITs and BTs. So think about what we were talked about just now, the ability to take the income side of CLIM, convert it into the growth side of CLIM, earning FUM, part of FUM, and turning it into FRE, right? This is the track record that we want to put in front of investors. We've been committed to doing this. We've done more than five billion in the last five years and achieved a premium of more than 11% over fair value in the process of doing so.

On the other side, our off-take vehicles, our REITs, BTs, private funds have successfully raised coincidentally about 5 billion in third party equity. So this very virtuous cycle that all our IAMs must possess, again, we have the ability to show investors that we can do this. The off-take vehicles are able to raise third party capital when they buy our assets from us as a sponsor. And this is something we will do out of the gate for Klim or hope to do, continue to do it with Klim. In terms of being an investment manager on the PE side, on this side here, so you see the breakdown by type of PE client and also the geography, again focusing on the diversity

and the breadth of our PE clientele. Many repeat investors across our fund vintages. You've look at our fund names, you've got one, two, three. These are continuing iterations of the same investment theme often with the same set of LPs coming on board, because they see value in sticking along for the right. We have this ability to continue to pull highest quality pension funds, SWFs, into our private equity business. We still have about a billion dollars of third party capital ready for deployment. That again is FRE that is embedded and FRE that will be built into the program. And again, I also admit to you that this is something that we want to really, really focus

on with the formation of CLIMP. On the capital side, a lot of this capital is actually long-term slash permanent in the form of equity at our read level. So this is FUM and FRE that's not going anywhere anytime soon. In fact, it's quasi-permanent. Third point, pipeline. So this part speaks to the balance sheet assets that we will have on CLIMP, about 10 billion of highly visible, stable, ready to be monetised within the short term. We wanted to arm CLIM with ability to recycle capital and build FRE, FUM and hopefully portfolio gains in the process. So again, a target monetisation period for this portfolio that sits in various countries,

sits in various sectors to be divested hopefully into all of our various REITs and off-take vehicles. Given our track record of 3 plus billion a year, we believe within three years or so we can have the entire IP portfolio fully divested and recycled into FUM and FRE. Again, I remind you of the average premium we have achieved, it's been about 11% over fair value, that is portfolio gain that is embedded into the program. And this is where I think we really have to deliver. This is the growth promise or the growth commitment that we have to our investors. going back to 2015, 46 billion FUM, 2020, 78 billion K

girl of 11% over this five year period. John has come out to say that our target is 100 billion by 2024. If I extrapolate the 11% by 2024, we are comfortably north of 100 billion. So this is something that I think as a management team we will have to commit to given we come out publicly said it. the means to achieve that. We've given some examples here. First off, we're already on our way, 1 billion this year to date and counting, most recently with the acquisition of third party FUM via ARID and the $1 billion data centre portfolio. More to come this year, hopefully. Then we have the CLIMP pipeline, right?

This is the on balance sheet IP, 10 billion in the next three years. Our reads as well as ourselves will go out and look for third party acquisitions where we are now dedicated to hunting to grow potential FUM future FRE. On the right hand side the investment portfolio that has will be taken private together with Capital and Development. This is a slightly longer term gestation portfolio, things like JUUL, things like RCCQ that have not been put into CLIM for very specific reason. We believe that this will take slightly longer to stabilise, put us in position to then acquire it later the

this constitutes about 7.6 billion of that. This is future pipeline. But I would say within the next five years, yes, monetizable. And last but certainly not least, strategic M&A. When you have a platform that CLIMM will be possessed with, very strong balance sheet, hopefully trading well with equity currency to go the third largest REIUM listed out there. I think it gives us that capability, gives us that profile to go out and make leaps as you saw with ASB two years ago. And that's where the step change really can come in. So when you add these four components and you think about an 11% K-GUR to take us to north of 100 billion by 2024,

I hope you will agree with me that this is something that we can certainly achieve good execution, perhaps a little bit of luck. I'll spend five minutes talking about lodging because we seldom do and I think it's time, it's long overdue we talk about lodging because lodging is a key, in our view, distinctive engine that also separates CLIMM from your other REIMs out there. Our lodging platform is full stack. We have the assets under our REITs and our funds, some of it on balance sheet, but equally important, perhaps even more so, We have a world-class global lodging platform and a brand portfolio that is highly recognizable.

One of Singapore's champions, Ascot brand. Recurring fee income, strong brand equity, expensive ownership network around the world, many, many owners have multiple assets with us and highly capital efficient, high ROE. Okay, the more we scale, the more it drives fee income, more it drives ROE. And I believe we are in a very, very interesting inflection point for lodging. I talked earlier about our KEGG. So we've been doing about a 20% KEGG clip in units. The dark blue part are the keys already in operation. The light blue part are the keys that are currently committed and under construction. So this is FRE that is already embedded,

not yet burning into the system. This is coming. At this clip, we will easily meet our 160,000 target, which Kevin mentioned a couple of years ago. The SR lodging business, contrary to belief, is actually very, very fee-degenerative. Our average is 70 beeps as a percentage of AUM. So this is actually more profitable than our FUM FRE business, which was about 40 basis point clip, right? Sorry, I forgot to mention this. The fee income FUM average is about 40 basis points. That's not SR. SR has been running historically about 70 basis points.

So the faster we can grow SR, assuming we can continue to deliver the same types of management contracts with asset owners, will actually even improve the profitability of the business as we scale up further. The track record of growth, we have four consecutive years of record growth. we signed 14,000 keys, an all-time high for capital N. So I want to leave with you that this is highly ROE-accretive. I don't think it's valued at all by many investors. So this is upside. We estimate that for every 10,000 stabilised keys, we contribute about 20 to 25 million in fee income. And as we scale up, this fee income drops straight to the bottom line

because we've covered our operating costs and we are close to being past that inflection point with every new key that we open to the system. And the target is obviously to maintain this historical Kegel growth over the medium term. That is our traditional bread and butter SR business. Recently, those of you who follow us would have seen that we've been doing other things. We've been expanding the definition of what Longstay is to us. Seoukeem has gone into PBSA as an asset owner. We've also signed a joint venture with a leading US developer on a programmatic build out of multifamily. So there are initiatives underway to further our reach into the long stay sector.

This will be FUM, mainly asset driven, owned by ART eventually, or one of our funds. So this is again, additional growth on top of the traditional SR growth that I talked about earlier. And I want to just leave with you that I think COVID, if anything, has demonstrated that the long stay part of the hospitality business is particularly resilient. It's demonstrated operating resilience in what was perhaps the most challenging year to face the hospitality industry ever. You see the evidence of that turnaround coming in. In the meantime, we were able to divest specific assets at very, very high premiums to fair

value. And so we think that as this optimism continues to grow and we enter into a recovery phase, touch wood, the positioning of lodging at this point in time is very positive. And if it continues to take off, then I think it gives our lodging business extra impetus and extra momentum to grow. And finally, we can't be an investment manager if you don't have investment management people running around looking for the right assets and outsmarting our competition, both in looking for assets and in outperforming in terms of operations. We have over 400 IAM professionals currently globally across 30 countries and the track

record from the last three years is a successful acquisition of close to 7 billion in third party assets. So there's nothing to do with sponsor. So this is our teams going out hunt, locate assets for our funds and for us to incubate on balance sheet. So the team is largely already in place. We can hit the ground running, we are already hunting as we speak, but when claim is formed, we hit the ground running, continue to drive this growth in FUM, FRE for all of our platforms. So, I think that's a good decision. Just to echo the key parts of Chikun's first partner, which is actually very critical.

This is the next phase in our transformation. This is a journey. It's not an end point. It is the next phase that I think was largely made possible in great detail by our initial combination with ASB, giving us the platform to really think about how we restructure the business. by matching the private side with the public side, private with development and the public with something that is valued highly by the market, we believe we will match capital with risk, match the right structure, match the right capital partners. We think we're doing it in a very fair way, unlocking value for our shareholders in the short term

at a substantial premium. and at the same time we create CLIMM which has a lot of the hallmarks that are highly valued by the market to position CLIMM to trade very well out of the gate. It's highly capital efficient, very scalable, we have a unique distinction of having best-in-class operations and again uniquely we have a we are global leader in long-stay lodging. So we've got three very very useful fee income streams. private development will play a very, very important role because it will be our incubator, our capital partner. We will have the ability to avail ourselves of development capabilities and also to share services and senior management ideas, not to mention a pipeline for future properties

into Klim. We are incredibly proud of the ecosystem we have built, the DNA that we have, the values that we have through the last 20 years. and it was absolutely critical for us that with this restructuring we do not lose that. And I think the way we have designed the restructuring is central to that idea of keeping the DNA and the resilience of the group intact while we split the two companies. Okay, very quickly on summaries, we have got a couple of big meetings coming up. So now we get to the process of seeking minority shareholder report. There will be an EGM for which we will seek minority shareholder approval to approve the

the capital reduction in order for us to distribute the two units of shares, the new claim shares, as well as the 6 per cent of CICT. Because this is an interested party, CLA will not participate in the vote, but they will also choose not to participate in the distribution of CICT units. And then finally, the scheme meeting, which will be the privatisation of the group. the first session, the first session of the session is today marks the start of the execution phase, in and around the third quarter we will dispatch the scheme document, slightly thereafter we will have an EGM and the scheme

meeting, we hope to complete this early 4Q and have claim trading before the year is out. So, I'm going to start with the question, please, Andrew, please stay. Oh, sure. Okay, thank you, Andrew and Chikun. We'll start the Q&A. We also have received some questions on the webcast, so we'll try to give some time later on. But let's start with the guests that we have. Thank you all for sitting through the entire presentation. I just want to remind that this, I mean, the management team has been working extremely hard in the transformation of capital and to make capital a lot more competitive, a lot

in terms of driving new growth and new revenue streams for the company. And this restructuring exercise, I mean, you know, we are splitting into two entities, shuffling assets and capabilities. This is really only step one. It is not a magic or silver bullet that's going to get us to the end point at the very beginning. It takes hard work. It takes dedication, making sure that, you know, we are reserve, focus, build a DNA, stay very disciplined. And just want to remind everybody that it takes time to get there, but we are totally committed to make sure that we build the team and execute well.

Okay, thanks. Thank you. And with that, I'll open the floor for questions. Derek from Macquarie. Hi, exciting times indeed. So a few questions from me. First is on the capital structure itself. the private entity, the private entity, the private entity, the private entity, the private entity. Can you talk a little bit about the gearing at both entities, the private slide and the private entity as well as the listed entity and do you have a dividend policy going forward? The second question is on the mandate. Can I confirm that CLIM will not be acquiring completed assets and they will be left to the REITs itself? the

number of earnings per year, so that's the number of earnings per year. The last one is on earnings itself. Can you provide a pro forma split between the two entities based on last year's numbers, just as a reference point for us? Thanks, Eric. Let me do the gearing. The numbers are the numbers right now. in due course. But one of the reasons why we decided to distribute CICT was to allow us to deconolidate CICT from CLIMP. And as a happy coincidence, if you deconolidate CICT, we also deconolidate CLCT. So while you do this, the balance sheet of CLIMP opens up

and gives us that ability, as I mentioned, to go out and look for growth. And we felt that at 6% of a DIS was not too much to ask of CICT. We wouldn't stress or strain the CICT trading too much. So we took a very considered view as to, how do we achieve the right cap structure at Klim? Give it the firepower, the headroom to go, but at the same time, not disadvantage our REITs unduly is in doing so. So that's number one. Earnings I can't share with you right now. Apologise for that. But please be patient. It will come. And then maybe Chikun. DIV policy?

Yeah. DIV policy also, we'll think about it. I will be spending a lot of time with our investor and we will be spending a lot of time with our investors. Now, you want a claim to be yield stock or do you want a claim to be a growth stock? Because you can't have it both ways. I know everybody wants their cake and they want to eat it. So I think you will hopefully have taken away that our focus on CLIMM out of the gate is growth. It's all about finding ways to grow FUM, FRE, and REAUM on the lodging side. So if we do that, then something has to give.

I'm not saying we won't pay any dividends, but I would hope that the emphasis will shift from how How much yield are you going to give us? How many cents in dividend are you going to give us to what's your EPS growth, what's your FUM growth, what's your FRE growth? If our quarterly and our semi-annual sessions start to become discussions around these topics, then I think that's probably the right pivot going forward. Who would answer your question? In terms of acquisitions of completed properties, as a general rule of thumb, the REITs should be the entities that look for all these acquisition opportunities. But in the event that there are interesting repositioning type opportunities that can

always be done through one of the private equity fund entities set up under the claim, or we could even use a balance sheet and subsequently sell it down to other capital partners. I wouldn't just say that it is one way or other, really depends on the opportunities that we can find and best match against the opportunity against the capital that can best deliver the returns. Okay, thank you. We'll have Joy. Ladies first. Thank you for the presentation. Just two question from me. Once it's on the timing, why do it now? you lay out a sort of a plan of AUM growth

at the beginning of the year. Why not wait for that plan to show sort of a few, show more growth before doing this? So that's first question for me. Second question, more on sort of development capabilities. Are you giving away the entire development capabilities of the investment properties? In a sense, will you still be able to raise development funds in the future? I answered the second question first. Yes, Klim will continue to be able to raise development funds. All fundraising fund management capabilities will be done by Klim. So in the event that you want to participate

in development projects that we can still see upside, I think that can still be done through the fund arrangement. But in development capabilities, especially in the core markets where the privatised entity can support. I think this is an excellent area to continue to collaborate and where CLIM shareholders can continue to enjoy the development upside without a huge amount of capital outlay from the very get-go. So that's my response on the development question. Yeah. Go to the private side. Yes, definitely. But the fund management and asset management. But the details are yet to be worked out, but we want to be clear in terms of the areas

of responsibilities. In terms of timing, I think first and foremost, we are clear in terms of these broader direction for capital N, meaning that we want to be competitive real estate developer and a global asset manager. I don't think there will be a bad time to look at this opportunity. If you look at the trading history of capital and whether it's one year, five year, ten year, consistently we trade at 20 to 30 percent discount to NAF. It is something that we want to be able to do and then create a vehicle that will give us the share currency to pursue growth.

So that would be my response in terms of the timing issue. Thank you. I have Terrence from JPN. Yeah, thank you so much. Congrats on the restructuring. Just three questions from me. Can I ask about the existing Rofa and Rofa for future developments for the REITs? How would this be split between the privatised entity and CLIM? Secondly, is there an ROE target for CLIM? and finally in terms of the consolidation would you be looking at the consolidating some of the other reads and how would this be achieved thanks so row first I expect that there will be some form of strategic arrangements

between the dev core and and Clinton it would it would be imprudent of us not to have that in place but at the same time I don't think it should be such that it It is ours or yours no matter what. So I think there needs to be that discipline and healthy tension between both entities. So I think that's where we will try to set that rofum. In terms of ROE, the current ROE is to continue to deliver healthy ROE above cost of equity. If you look at REIMs across the platform, actually the ROE range is very wide. And again, it goes back to what type of animal this is.

If you're an investment-heavy animal, then you tend to have a lower ROE, your equity base is higher. If you are very asset-like ROE, then you typically have a much higher ROE. So given that we are going to be on day one, I would say relatively more of the former. We've still got a nice healthy pipeline. We have a healthy stake in our REITs and funds and so on and so forth. I would say that this will position us to look to grow ROE over time as we convert that investment pipeline into FUM and FRE and we decide what to do with that equity that is released, what we decide to do with that capital that is released.

So we'll see where we are from day one. We'll start out at this construct that we have created and look to become more ROE efficient over time. Third question, deconsolled, there's not, there are only two other reads I believe, there will be ART and CMMT. I think we've come out publicly before to say that at the right time we may look to optimise the equity stakes. So there's no reason why we shouldn't do that, but we're also not going to be rash about it. It will be driven around the stake that we create, the liquidity issues, where we are in the sector and so on and so forth.

So we'll be very careful about how we go about optimising our REIT stakes. But I would say yes, the logic should see that let's optimise the equity as best we can because that's what CLIMM is going to be all about. We'll have Ryukam from CISE. Hi, thank you. I have two questions. The first one is relating to the structure. Can you run us through the rationale for ruling in the lodgings as well as the private funds into the business? Because lodging seems to be under some pressure. I hear that earlier you mentioned low gestation, high ROE asset life. But this is all different from my understanding of the SR business.

And then on the private funds, it should really come with a level of opaqueness, I think, in terms of disclosure. So by rolling this into the entity, there's also another fee layer that you're paying additional as well. you actually sacrifice on the transparency of that structure. So why did you not include like the office or data centers into CLIMP? I think that's the first question. And the second question is on your develop and emerging breakdown in terms of EBITDA level. Could you get a sense? I know Andrew probably would want to I can't discuss any more numbers. Okay.

Okay, let me attempt to tackle one. Okay, so let's do the easy one first, FTSE NARID. FTSE NARID, okay, this is, we'll have to see how this lands, right? My understanding of FTSE NARID is that they don't like fund income. And if you are a fund manager, you drop off. I think it happened a good month. So for us, it will depend on the day one construct. If my balance sheet investment EBITDA, which qualifies, is largely DM, which we believe it is, then there is a possibility that our EBITDA in the next 24 months will be more than 50% DM, and it will not contravene the fee income part of the requirement.

So let's see where that ends up. I think we are cautiously optimistic that we may be able to qualify for FTSE NERID based on the EBITDA coming from the balance sheet side of the business and our stakes. We'll see where that goes. We have two years to cure it in any event. I would say that we are committed to being a REIM and if that means that we can no longer be part of FTSE NERID, I think we are prepared to live with that. We've taken that decision strategically. We will not tailor the business, the capital structure so as to remain on Futsi Nairi. I think that's probably fair to say.

PE transparency, yes and no. Of course there will be elements of the PE business which we will not share to protect the necessary anonymity and proprietary nature of the PE business. But given that the PE business is part of REIM, there are many REIMs out there that have a very, very strong PE business. I think it would be much harder for us to explain why PE is not part of CLIM and is privatised. It's part of the private side of the business. I mean, Earth's fee income, we are absolutely committed to growing the PE side of the business. How much we can share with you will be a function of the funds themselves, how they

are structured, the LP requirements and so on and so forth. So yes, you may see a level of opacity in terms of being able to penetrate through what the actual funds are, but in terms of our ability to report overall income fees and overall fees on an aggregate basis, contribution to profit, so on and so forth, basis points per dollar of FUM, I think these things should be non-controversial. I can't give you what a specific fund is going to earn, but I can surely provide it to you in aggregate and give you a sense of how strong the PE business is and what the growth

trajectory contribution from the PE business to the overall CLIM business is going to be. I think that should be something we should be able to do. Last question, lodging. So I don't want to go back to the slides again, but I think what's important to distinguish is that yes, there's an asset-owning part of the business, right, that's ART and Ascot growth fund. But what Kevin has been absolutely focused on doing in growing the keys under management is on a management contract basis. So super asset like we don't own these assets we want to charge a fee for managing these assets on behalf of third-party asset owners. That fee historically has been 70 basis

points per AUM dollar of SR lodging. So historically tells us actually this is very good fee income business. The margins aren't great right now because we are still in a scale up phase. But the message I wanted to leave with you is I think we are coming to an inflection point where once you get into the 120, 130, 160,000 range, that scale economy really kicks in. And for every 10,000 keys that we then stabilise and get into the system, it earns 20, 25 million of fees. The operating costs are, you get a margin of 70 basis points and after that it drops to the bottom line. You no longer have to worry about paying for your IT platform and

the centralised cost of operations because you've really covered that through the initial portfolio that you've built in. So to us, this is very capital efficient. It will be, in our opinion, highly ROE-accretive, but we have to get to that scale for it to do so and contribute meaningfully to the bottom line. And the point I was trying to leave with you hopefully was that we are coming to that inflection point at about 120,000, 130,000 keys where once these keys stabilise and come in and earn fees for us, we start to really accelerate in terms of margin and contribution to overall claim bottom line. Just to add on to Andrew's point on lodging, many years ago the escorts portfolio under

capital land. Typically, it was pretty asset-heavy. I mean, there was no real intention or commitment to want to manage third-party assets. I think that had changed very significantly over the last, I would say, the last 10 years, and they built up a nice fee income that has flown through. My own personal experience when I was first sent to China to run the the Esker China business in 2009. I mean it was we hardly had I think we were like 11 or 12 properties today we are in China more than 150 over properties and we really only own 10% of the portfolio less than that and the rest are all

fee income flowing through very nicely adding on and doing extremely well and and it is a business that's growing extremely, I mean the cost structure is fixed and the fee income, every property that you open is closed quite nicely to the bottom line. So, I mean it requires hard work, requires a lot of management, active management, negotiation, but every time you lock in a management contract, it lasts for 20 years. So it's really a commitment to grow the fee income, that's important, yeah. We will take one more question from the floor before we give some time to the webcast audience and we'll come back. Let's have Vijay from RHP.

Hi. Thanks. Congrats on the restructuring. I just have two questions. Maybe can you comment a bit on the management structure changes post this transaction and how do you ensure a smooth transaction of management structure in the recent years, especially which I think is key to the success of CLIM going forward? My second question is on the CLIMP pipeline. I think Andrew mentioned that the $11 billion pipeline is going to be for next three years, which would be injecting the assets into the reeds of private funds. How do you ensure the growth of the CLIMP pipeline? Would this be from a third party asset per se, because you mentioned that capital and

development will take three to five years to grow. So would this be from a third party asset? And especially in this low interest rate environment, how do you plan to grow this pipeline? And what target will you have for the next three, five years per se? Thank you. I think the initial investment properties on CLIMS balance sheet will provide the initial growth impetus. After that, of course, there will be pipeline from the privatised entity. I think more importantly, at the CLIM level, we do really need to actively go out to look for new opportunities from third party, other developers, other portfolio. I mean, that's really the job of the investment professionals.

The aim, of course, we hope to be able to build up a track record to be able to do more off-market type transactions, and that requires a very strong team of investment professionals around the various key markets that we intend to work through. I mean, if you look at the recent deal announced by ARID, it is a data centre in Europe. Work very closely between our investment team together, the ARID team, to look for such opportunities. Of course, I know that the competition is steep. There's a lot of capital chasing. So it really depends on the strength and the quality of the investment professionals that we have.

Sorry, your other question is the management structure. So we haven't really announced the full details of the management. At this point in time, we have announced that I will be the CEO of the capital investment management. Andrew will be the CFO. We will give more details in terms of the OX structure by the time the circular is ready. But safe to say, I mean, we have the first cut in terms of how we want to organise ourselves. We need to make sure that the right groups of people are in the right entity so that you can drive the growth and build that culture to hunt for assets and to be very disciplined

in terms of capital recycling. Yeah. Sorry, just also want to clarify one thing. In terms of claim acquisition, when you look at the asset, how would you differentiate between whether it is for the claim portion or for the REITs or the private funds since both of them are holding income producing assets. So this is quite common in the investment community where if you have a private equity fund and you have REITs or you have your own balance sheet, there's always a new allocation community. When an asset becomes available, if it's something that really cuts across all three, you have to make it available to all the three different entities. Otherwise,

depends on the mandate. So there is not so, how should I say, there will be areas where you may see joint investments and there will be some clear-cut cases where you should go directly into one particular REIT or into a private equity fund. Yeah. Thanks. I think there's also, this is linked to a question that Dawn has just come out. So what if the REITs and CLIMB both want to acquire the same assets from CLA? So I think that Chikun's answer speaks to that. Yeah, thanks. Okay, thank you. We'll have Brendan from CNA. Brendan has a question.

Thanks for the presentation. Just one question. Could I get the outlook for the short term and the long term, given that the pandemic is still here with us and we're still feeling the impacts of it?

In my own view, if you look at the capital exposure that we have in the existing capital land group, majority of our capital is exposed to Singapore and China. And my own view, I hope I'm not wrong with the vaccination rollout. My one sense is that the worst of COVID-19 is behind us and we should be in a phase of recovery. So that's my own personal view at this point in time. And that's why we also think that it is right to accelerate our transformation and time to propose this restructuring exercise. We still have a number of raised hands.

I think we'll take a few more questions from the floor before we go to our webcast audience. Can I have Brandon from the city? Thanks, Professor. Just two questions on valuations. Can you sort of walk us through why you decided to pay one time's book for Klim? And secondly, and why you are exiting the development business at 0.95 times book when I think over the years, Chikun, you have been talking a lot about asset rejuvenation, science park, and things like that. Do you think it's a bit too early to exit this business and not allow existing shareholders to benefit from it? Thanks. So, thanks, good question. In terms of CLIM, where it will trade, we don't know. I mean,

in terms of the, if you look at the build-up, really, we are just saying hypothetically, if it trades at one times book, this will be how the implied consideration will work out to be. So, a lot depends on the how CLIM will trade when it gets listed. In terms of the side of the business, I think that is upside definitely, there is also potential risks. I want to just mention that and emphasise that the development business is long term, it requires very patient capital. Business cycles are getting a lot shorter, so investors in terms of the level of patience that they have, in terms of looking at returns from projects.

If you look at the entire deal construct, what is capital land, actually what is CLA taking private? It is the 30% of the business which you have development projects, residential, Singapore, China and also investment properties that are going to take longer, typically longer than three years before you can be ready for recycling. My own view is that to be able to get immediate realisation of value at 0.95 times is actually a good deal. Of course, at the end of the day, we do require the views from the independent FA that will

be issued together with the circular to advise the minority shareholders on their opinion on the merits of the entire transaction to the shareholders. I am of the view that be able to unlock value immediately and be able to participate on the capital investment management that's going to be listed. And if you look at the trading comparables of other real estate investment managers, I think one, you get to unlock value, secondly, you get to enjoy the right if we run it properly. So on balance, I actually think that it's a good transaction for minority shareholders.

Just a follow up on that, can you sort of share with us a rough percentage of the NEV of the development business that you kind of written off in FY20? Sorry what's the question again? DMO impairment slash write downs that you recognise in FY20 for the development business? development business. So impairments last year was about 1 billion, about a billion, 900 million, yeah, 900 million of which half effectively was life found, right? So the balance is, I would say, development properties for sale that were impaired down. Yeah. Okay, thanks. Thanks Andrew and Geegun. Thanks, Brian.

Okay, any more reasons? Derek from DBS and then we go to Tan-chan. Hello, thank you guys, sorry. Three questions from me, I was just wondering for the first question on lodging. Linked you mentioned that it's unique to the group, but just wondering whether in the longer term would you want investors to give you some form of operator premium for it or do you think that one thing stabilizes the lodging business can actually stand alone by itself?

I think that as a responsible manager we will continuously look at options down the line, but I think at this point in time we have taken the view that the lodging business should be part of CLIMB. I mean, subsequently, you know, the, let's say the lodging business is going to grow so big and require so much capital that CLIMB's as an entity cannot support its growth, then we can look at the different types of liquidity options. But at this point in time, I think it fits quite nicely for under the whole CLIMS business. Okay, thank you. My second question is on the assets plate. I'm just looking at one of your slides.

I just thought that some assets that sit on the capital and development actually suit CLIMS. So I'm just wondering whether post-before completion, can some of those assets be actually sold if the asset opportunity comes about or is there more terms in terms of sale for both entities? The rule of thumb, the general rule of thumb, how we have speed the asset is in terms of the readiness for recycling. So things that are going to take more than three years to recycle, typically we put it under the private side. Of course there are certain assets that is kept under the development side because of tax issues, tax considerations, because if you were to move it immediately you end up

having to pay prohibitive taxes. So those are, there are some of, I mean a few of those assets that is kept in the development side for those reasons. Yeah. Okay, thank you. My last question is on, I think we have a very exciting story about science park redevelopment. I'm just wondering going forward, is it more on the private side or the public side, just to clarify? It will be both, it will be arrangement between the private side together with the asset that sits with the area. So I mean we have not really worked out how is the entire redevelopment going to be funded. It could be several joint venture arrangements so that the various stakeholders could benefit

from that. And as and when we are ready, we will definitely share with the team when we are ready with the structure. Thanks. Thank you. Hi, this is Anshan here. Two questions. Firstly, how do you address, what are your thoughts on heat count? increase in hate crime costs of the overall group and how can you mitigate the potential increase in cost? And secondly, what are the measures in place to mitigate the conflict of interest between the listed REITs, CLIMB, as well as the development business? And especially if we think about greenfield developments, will they go through the development business, CLIMB, and then eventually the REITs?

And will there still be value left for the REITs when assets reach that stage? I answered the first question on governance. Proper governance will definitely be put in place. There will be service level agreements between the various listed entities. It's going to be a bit more cumbersome. But I think at the end of the day, we want to make sure that whatever we do is in the interest of all shareholders. So that's something that we will always put at the top of our priority. remains important but I think we need to make sure we put in place proper governance. With regards to the projects, I think for every project that becomes available if it's pure

greenfield type projects, my one sense is that it's likely to go on the balance sheet of the private entity but if there's interested investors that want to come in, I think Klim can always raise funds, bring in investors and work through together with the capital and development side to bring to fruition the projects and when the project is ready it can always be recycled into the REITs. But like I said, because every single investment opportunity, especially big one, could come in different forms, so it is very hard for me to prescribe one way of how we may or may not do the deal. At the end of the day, we want to make sure that the various stakeholders

benefit from it. The idea under the claim site is to grow the AUM, is to grow the size of the various REITs and to make sure that the private equity funds that we see, we find good investment opportunities and make sure that all the investors are happy with the investment returns. Otherwise, the claim business itself, you will find it very, very difficult to continue to raise money and to grow the fee business. Cost and head count? Oh, okay. In terms of cost on head count, maybe you can help me to clarify in terms of the concerns that you may have with regards to this particular point.

I just, maybe just a point of sharing. I mean, as a group, we have been very, very disciplined in terms of the cost management. If you look at the way how we have been rationalising the company, making sure that we are competitive, I think Andrew has shared that the full year results are briefing that our annual cost savings as a group through the efforts, rationalisation, reorganising have saved us about $100 million of cost going forward. So it's something that we will do and want to continue to be competitive, whether restructuring in the

market, but the market is not going to be competitive, because if you cannot be competitive, you cost structure to be competitive, no investors is going to want to invest together with you. I'm assuming that the private and public entity cannot share same set of management and certain functions. the the So we are going to put in place share services agreement where services could be shared. Let's say for instance we are going to set up financial share services function. We think that if you put in place proper

agreement, it could provide services to both the listed side and the unlisted side so that we can the the the structure to make sure that when you create you not going to end up creating especially a lot of function type of head count. If we want to increase head count, we need to increase more hunters, people that can look for, de-use the leasing, the people that creates a lot more value. Thank you.

For the Klim NAF per share of $2.823, I wanted to check if this value is based on the book value, not the market value of the reads. Okay, so it's a book value. And also the implied CLA consideration of $1.1 to 1 cents, it said it represents about 0.95 pro forma NAF of the capital land development part of the business. but could you help us to reconcile this number with the $2.65 NAF per share of the group after the distribution in specie that was disclosed in Appendix 1?

Janine, can you take this offline together and give the details to, okay, thank you. One more question from Yuchen. Why CICT shares are used instead of other reads? We wanted to establish the right cap structure for CLIMP. We landed on, well, what if we give some of these units out to our minority shareholders as part of this exercise, de-consolidate CLIMP, give it the balance sheet it needs, provided we felt that this would not overly stress the register of CICT and CLCT in the process. So we decided to do a process, and we decided to do a process, and we decided to do a

process. So we decided after some very extensive work, on 6% being a number that we could live with and get us to our goal of de-consolidating, but yet not stress, overly stress the trading and liquidity of CICT. So that was it. Okay. I would like to take a question from Donald Chua, from BAMO, who's not represented the APNIC . Donald asks how would claim select which assets to acquire from CLA. What if the reads and CLIM both want to acquire the same assets from CLA?

So I think that's clarified the chain here. The CLIM has balance sheet assets that are short term, high visibility, easily monetisable. the the longer gestation ones. incubated successfully and they are ready to be monetised, ideally they vehicles. Why take the intermediate into CLIMB? There's absolutely no need to do so. So the idea really is that your are just that, you take from CLIMB because these are short term. we believe we can recycle quickly. it needs patient capital and that can come into the REITs and funds as soon as they are ready. We think it will take slightly longer.

There shouldn't be any competition between CLIM and the REITs to acquire stabilised assets. To a related question earlier, there is a scenario where potentially CLIM and the REITs co-acquire, right? Supposing you have a really interesting large platform, multi-billion dollar platform, but the REITs can't afford to take it all by themselves. I think that's where Klim can come into play, where we co-invest in such a platform, and then that can be part of a programme that gradually monetises into the read-order fund. So that's one scenario. It answers a question that someone asked earlier, I think from Centre Square, about whether the balance sheet side of the IP will wind down over time or will Klim look to replenish

that part. I think that is that optionality that we have. We can use that released capital from the 11 billion that we are going to hopefully monetise in the next three years in a number of different ways. We can look to acquire something that's very interesting in terms of a similar type of management platform. We can co-invest with one of our off-tech vehicles into something that looks very interesting to give it FUM growth down the line, or we can decide to do something else with that capital if we can't find a better use for it. So that I think is very, very interesting and valuable

optionality that we have as this 11 billion gets recycled over the next three years. Not to forget that if there are interesting platform opportunities where there are development and operating assets, I think the CL development and CLIM or even one of the REITs could jointly participate and bid for this project. I think it gives maximum flexibility to look at investment opportunities together. Okay, we have time for a couple more questions. Joy, you have a question? Just one follow-up on sort of operation over the next nine months while you go through the deal. Would that affect sort of the REIT's ability to acquire and to raise capital?

and also from a clean perspective, if you look at something, you saw something that you're interested, would you go ahead with acquisition or you have to wait for the approval? I think there's certain level of investment activities that we can definitely do. The REITs can still look for deals to acquire. Once you get past beyond a certain size, I think we need to have the conversation. But I think the problem we have in today's world is that there's more money available than there are good projects. If there are good projects that can deliver good returns, I'm actually not worried about having a conversation to see how we could work together to make the acquisitions.

Can they look at your 10 billion assets this year before the transaction is completed? Sorry, meaning we can look at the recycling. Can the rates? Yeah, recycling will continue. We have a big programme. Are there any more questions from the floor? If not, I will take one last question and I think it's a good question to end. We have someone from the webcast asking, shareholders actually are losing the rights to the own issue of development. So can you summarize what is good for shareholders in the short term, in the medium term and in the long term? I think that's a good way to end. development business in the traditional sense as I mentioned just now long gestation requires

patient capital so the idea of this restructuring release to match the capital to the rewards and the kind of returns that the investors are seeking so even though we are proposing this particular the restructuring exercise, it does not preclude or exclude the clean platform for participating in development project by way of raising a development fund and putting some equity and continue to gain exposure. Through this particular arrangement, in fact, it gives the clean investors a lot more flexibility to choose the type of development projects

that the clean platform would like to participate, say in the development of, say, office buildings or integrated developments or even logistics. So there are enough flexibility for the clean platform to participate, but not having to be overly exposed the balance sheet to huge development projects, which may not be so appealing to public investors. Yeah. Thank you, Chikkun. So I think with that, we've come to the end of our Q&A and our briefing today. Thank you all for taking time. Thank you to viewers online who spent the afternoon with us.

I would like to ask Chikkun or Andrew if you have any closing remarks before we conclude the session. I think we have nothing further more than I can say, but just thank you. Thank you for all the trust and support all these years. I know we have been, I mean, ever since we brought the Sander-Sink Bridge deal to you, we have been very focused in terms of strengthening our capabilities and sharpening our focus. I just want to reassure you that this proposed restructuring is really one of positioning the company for future growth, creating two separate entities with support from different parts of capital, different parts of investors that will support the growth.

Just thank you for the trust and I hope, you know, whether it's investors, the analysts to continue to support us in our transformation journey. Thank you. Jigun, thank you everybody. Have a good afternoon, thank you.