Company Guide CapitaLand Commercial Trust

Version 8 | Bloomberg: CCT SP | Reuters: CACT.SI Refer to important disclosures at the end of this report

DBS Group Research . Equity 8 Mar 2017

BUY From HK with love Last Traded Price ( 7 Mar 2017): S$1.525 (STI : 3,130.44) Timely acquisition of CapitaGreen. Despite the expected Price Target 12-mth: S$1.69 (11% upside and 6.1% yield) decline in the office market, we believe the timely acquisition Potential Catalyst: Sale of Wilkie Edge above book value of the remaining 60% in CapitaGreen not only helps to offset Where we differ: Above consensus due to boost from the acquisition of potential negative rental reversions and lower occupancies for the remaining 60% interest in CapitaGreen the rest of CapitaLand Commercial Trust (CCT)’s portfolio but

will allow CCT to deliver 2% growth in DPU this year Analyst Mervin SONG CFA +65 6682 3715 [email protected] (excluding the impact from redevelopment of Golden Shoe and Derek TAN +65 6682 3716 [email protected] potential sale of Wilkie Edge). The boost is already visible by the 10% y-o-y increase in 4Q16 DPU.

What’s New Trading at a discount to physical office transactions. Investors  HK roadshow points to increasing demand from have been concerned over the value of CCT’s portfolio which the technology sector due to build out of a we believe is unwarranted. CCT’s Singapore Grade A office

technology ecosystem in Singapore portfolio trades at an implied value of c.S$2,000 per square  Still awaiting approval for redevelopment of foot (psf) compared to recent sales of between S$2,700- Golden Shoe into “iconic” building S$3,500 psf. While CCT’s Grade A portfolio is unlikely to trade higher to c.S$2,700 given the older profile of some of its  Potentially approaching bottom in office rents properties, we believe the current strength of the physical market and 999-year leasehold status of some of its buildings, warrants CCT to trade close to its book value of S$1.73 per Price Relative unit or an implied valuation of S$2,100 psf. The next catalyst would be the sale of Wilkie Edge above book value.

Upside from redevelopment of Golden Shoe. CCT intends to redevelop its Golden Shoe Car Park property. Subject to obtaining the necessary approvals, CCT plans to build a commercial building with c.1m square feet (sqft) of space in terms of gross floor area (GFA), equivalent to c.20% uplift in

attributable net lettable area (NLA). Upon completion in 2021, Forecasts and Valuation the property will enhance CCT’s NAV and earnings. FY Dec (S$m) 2015A 2016A 2017F 2018F Gross Revenue 273 299 350 343 Net Property Inc 213 231 274 268 Valuation: Total Return 307 261 259 256 We maintain our DCF-based TP of S$1.69. With 10% capital Distribution Inc 254 269 280 283 upside and 5.9-6.1% yield, we maintain our BUY call. EPU (S cts) 8.17 7.89 8.59 8.22 EPU Gth (%) (35) (3) 9 (4) DPU (S cts) 8.62 9.08 9.29 9.10 Key Risks to Our View: DPU Gth (%) 2 5 2 (2) A key risk to our view is new office supply causing spot rents NAV per shr (S cts) 177 178 176 175 to fall below S$7 psf, which is likely to lead to lower-than- PE (X) 18.7 19.3 17.7 18.6 expected asking rents and rental income. Distribution Yield (%) 5.7 6.0 6.1 6.0

P/NAV (x) 0.9 0.9 0.9 0.9 Aggregate Leverage (%) 30.0 37.5 37.5 37.5 At A Glance ROAE (%) 4.6 4.4 4.8 4.7 Issued Capital (m shrs) 2,963 Mkt. Cap (S$m/US$m) 4,519 / 3,202 Major Shareholders (%) Distn. Inc Chng (%): 0 0 Capitaland Limited 32.2 Consensus DPU (S cts): 9.00 9.10 Blackrock 6.7 Other Broker Recs: B: 11 S: 2 H: 11 CBRE Group Inc 4.9 Source of all data on this page: Company, DBS Bank, Bloomberg Free Float (%) 56.2 Finance L.P. 3m Avg. Daily Val (US$m) 8.6 ICB Industry : Real Estate / Real Estate Investment Trust

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Company Guide

CapitaLand Commercial Trust

WHAT’S NEW Post-HK roadshow notes

We recently hosted Capitaland Commercial Trust (CCT) for a office demand. Beyond the technology companies, CCT has non-deal roadshow in Hong Kong. While office rents are also seen growth in demand from regional banks. The expected to remain on a downward trajectory near term, we establishment of more co-working spaces is also a positive came back with increased confidence over the office outlook trend. These spaces not only cater to start-ups but also from 2018 onwards given the build-out of the technology incubate established overseas companies that want to ecosystem in Singapore which should drive demand as well as establish an initial presence in Singapore but do not want to the increasing pre-commitment levels for the new buildings rent a traditional office. such as . Key data points we will look out for going forward is the pace in which Marina One hits the 80% Competition from secondary stock. Investors raised concerns pre-commitment level. about competition from secondary office stock, i.e. buildings from which tenants have vacated to move into the new With CCT still trading at 10% discount to book value, buildings such as Marina One. While acknowledging this potential positive news flow from the sale of Wilkie Edge concern, management explained that some of this office above book value and approval for the redevelopment of stock may be removed from the market as these buildings Golden Shoe, we maintain our BUY call with a TP of S$1.70. undergo refurbishments. For example, Republic Plaza will be undergoing renovations to upgrade it lift and lobby areas. In Below are the key salient points from the meetings with addition, 8 Cross Street which PwC will be vacating for investors: Marina One was recently purchased by Manulife, which may relocate its operations from Bras Basah to the building. Singapore office rental outlook. Office rents have fallen from recent peak of S$11.40 psf per month in 1Q15 to S$9.10 psf Golden Shoe redevelopment. CCT is awaiting the necessary per month in 4Q16. While rents are likely to soften this year, government approvals as well as the differential premium the pace of decline may moderate given pre-commitment amount to be paid for the conversion of the Golden Shoe site levels at the new buildings such as Marina One and Duo have from transport to commercial use before deciding whether it risen to 60% and 45% respectively. With supply expected to is economically feasible to development the site into a 1m fall from 2018 onwards, there is potential for office rents to sqft of commercial GFA. bottom out at the end of 2017 and early 2018. However, the key inflection point management is looking at is a 80% pre- In addition, given the potential building being built could be commitment level at Marina One. Upon reaching 80%, as high as 280 metres which will change the Singapore Marina One may start to increase its asking rents materially skyline, CCT is in active discussions with the local authorities given less space available to be leased out in the building. for the development of an “iconic” building. CCT is targeting to start demolition works from July. While there is a 25% Positive demand from the technology sector. While the development cap for REITs for existing buildings in its demand for office space from the oil & gas and banks in portfolio, to better manage the development risks, it will seek general has slowed, CCT continues to see demand for space a JV partner for the project as well as keep exposure to the from the technology sector. With the large technology project to c.10% of the overall portfolio. companies such as Microsoft, Google and Facebook now in Singapore and the local operations of these companies not Funding for the project will also come from the potential sale only focused on sales and marketing but development work, of Wilkie Edge and in-the-money convertible bonds (expiry in there is potential for the establishment of an ecosystem of September 2017 and upon conversion will result in gearing technology companies. This may attract more technology dropping to c.35% from 37% currently). companies to expand or start up in Singapore, thus driving

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Page 2 Company Guide CapitaLand Commercial Trust

Net Property Income and Margins (%) CRITICAL DATA POINTS TO WATCH

Earnings Drivers: Staggered weighted lease expiry profile to help mitigate negative rental reversions. We have factored in lower occupancies and negative reversions at Capital Tower, , and for FY17 and FY18. CCT’s defensive weighted average lease expiry (WALE) of 6.6 years by net lettable area (NLA) should also help ensure that the negative impact from an anticipated decline in rents over the next two years will be gradual rather than immediate. Thus, CCT offers investors some measure of earnings stability and certainty amid Net Property Income and Margins (%) record office completions over the next two years.

Defensive portfolio with >70% of office leases expiring in FY19 and beyond, coinciding with the period when Singapore faces no new office supply. CCT has maintained a defensive leasing strategy amid stiff competition for larger tenants by locking in longer-term leases for most of its top 10 tenants. With proactive forward renewals, more than 70% of office leases now expire in FY19 and beyond. This fortuitously coincides with the period when the Singapore office market should be on an upturn as the supply of new office buildings drops from FY18 onwards. Distribution Paid / Net Operating CF CapitaGreen contribution to weather CCT through tough times. CCT’s near-term earnings will be driven by the acquisition of the 60% remaining interest in CapitaGreen. We believe the increased contribution from CapitaGreen will not only help offset potential negative rental reversions at CCT’s other properties but also contribute to 4% DPU CAGR over the next couple of years (excluding any loss of income from redevelopment of Golden Shoe). Beyond the boost from the higher equity interest in CapitaGreen (40% previously to 100%), CCT should benefit from the higher underlying earnings at CapitaGreen as tenants progressively move into the building Interest Cover (x) and rent-free periods start to expire.

Medium-term upside from redevelopment of Golden Shoe Car Park. CCT has announced the redevelopment of its Golden Shoe Car Park property. Subject to obtaining the necessary government approvals, the property will be developed into one with c.1m sqft of commercial GFA and comprise an office tower of up to 280 metres high. Upon completion in 2021, the property will provide a medium-term uplift to earnings, and CCT’s current NAV per unit of S$1.73.

Source: Company, DBS Bank

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CapitaLand Commercial Trust

Aggregate Leverage (%) Balance Sheet: Increase in gearing post acquisition of CapitaGreen. Post the acquisition of the remaining 60% interest in CapitaGreen, its gearing has risen to c.38% from c.30% previously. While this is higher than CCT’s average gearing over the last few years, we believe this remains manageable, as it is below the 45% gearing cap imposed by MAS and provides some buffer in the event of any decline in the value of CCT’s portfolio.

Share Price Drivers: Crystallisation of value from sale of Wilkie Edge. CCT has announced its intention to sell its 100% interest in Wilkie Edge ROE (%) to help fund the development of Golden Shoe. Should it achieve the selling price of S$293m as speculated by recent press reports and also above Wilkie Studio’s latest valuation of S$201m, we believe it will indicate to investors the robustness of CCT’s NAV and help close the current 10% discount to book.

Key Risks: Risk of higher vacancies and negative rental reversions for FY16. In FY17-18, c.24% of CCT’s office leases will be due for expiry, the majority of which stems from One George Street, Six Battery Road, CapitaGreen and Raffles City, where expiring Distribution Yield (%) rents are close to or higher than market rents. As the Manager has prioritised tenant retention, there is a possibility of negative rental reversions, which would impede earnings growth.

Competition from other landlords. Between 2016 and 2018, c.5.3m sqft of office (NLA) will be completed within the downtown core area, translating to a 15% increase in existing stock. Due to weaker net absorption rates of <1m sqft in recent years, CCT could face higher competition for large tenants from landlords of newer buildings, which have large floor plates of 30-40k sqft. PB Band (x)

Pressure on rents from shadow space. We see some downsizing activity from banks and financial institutions, and shadow space (particularly in the Marina Bay area) could put some pressure on rents for CCT’s portfolio, which is located primarily in the /Tanjong Pagar areas.

Company Background CapitaCommercial Trust (CCT) is a real investment trust investing exclusively in commercial properties in Singapore. Source: Company, DBS Bank

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Page 4 Company Guide CapitaLand Commercial Trust

Income Statement (S$m) FY Dec 2014A 2015A 2016A 2017F 2018F

Gross revenue 263 273 299 350 343 Property expenses (57.4) (60.5) (67.3) (76.2) (74.5) Net Property Income 205 213 231 274 268 Other Operating expenses (16.2) (17.6) (17.6) (25.1) (24.8) Other Non Opg (Exp)/Inc (3.5) (0.5) 3.59 0.0 0.0

Net Interest (Exp)/Inc (32.7) (32.1) (46.2) (75.9) (74.6)

Exceptional Gain/(Loss) (2.5) (18.9) (22.1) 0.0 0.0

Net Income 368 241 235 260 256 Tax 0.0 (0.1) (1.2) (0.9) (0.8) Minority Interest 0.0 0.0 0.0 0.0 0.0 Preference Dividend 0.0 0.0 0.0 0.0 0.0 Net Income After Tax 368 241 234 259 256 Total Return 449 307 261 259 256 Non-tax deductible Items (200) (52.8) 8.41 21.0 27.5 Net Inc available for Dist. 249 254 269 280 283 Growth & Ratio Revenue Gth (%) 4.4 4.0 9.3 17.2 (2.1) Earnings growth will be N Property Inc Gth (%) 4.1 3.7 8.7 18.4 (2.1) driven by increased Net Inc Gth (%) 40.9 (34.5) (3.0) 10.7 (1.2) contribution from CapitaGreen, which should Dist. Payout Ratio (%) 100.0 100.0 100.0 100.0 100.0 offset income loss from Net Prop Inc Margins (%) 78.2 77.9 77.5 78.2 78.3 lower occupancies and Net Income Margins (%) 140.0 88.1 78.2 73.9 74.6 negative rental reversions at Dist to revenue (%) 94.9 93.1 90.1 79.9 82.6 existing office assets such Managers & Trustee’s fees 6.2 6.4 5.9 7.2 7.2 as Capital Tower, 6 Battery ROAE (%) 7.3 4.6 4.4 4.8 4.7 Road and One George ROA (%) 5.8 3.7 3.2 3.2 3.2 Street ROCE (%) 3.0 3.0 2.9 3.1 3.0 Int. Cover (x) 5.8 6.1 4.6 3.3 3.3 Source: Company, DBS Bank

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CapitaLand Commercial Trust

Quarterly / Interim Income Statement (S$m) FY Dec 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016

Gross revenue 67.6 66.9 67.6 74.4 89.7 Property expenses (15.3) (14.8) (16.1) (17.4) (19.0) Net Property Income 52.3 52.0 51.5 57.0 70.8 Other Operating expenses (4.4) (4.2) (4.5) (3.9) (5.2) Other Non Opg (Exp)/Inc (0.3) 1.66 0.0 1.22 0.99 Net Interest (Exp)/Inc (8.5) (8.1) (8.3) (11.4) (18.3)

Exceptional Gain/(Loss) 0.0 0.0 0.0 (13.5) 0.0 Net Income 68.0 61.9 74.3 51.6 55.6 Tax (0.1) (0.2) 0.0 (0.2) (0.8)

Minority Interest 0.0 0.0 0.0 0.0 0.0 Net Income after Tax 68.0 61.7 74.3 51.4 54.7 Total Return 0.0 0.0 0.0 0.0 0.0

Non-tax deductible Items 0.0 0.0 0.0 0.0 0.0 Net Inc available for Dist. 64.1 64.8 65.1 68.3 70.8 Growth & Ratio Revenue Gth (%) (1) (1) 1 10 21 N Property Inc Gth (%) (1) 0 (1) 11 24 Net Inc Gth (%) 20 (9) 20 (31) 6 Net Prop Inc Margin (%) 77.3 77.8 76.1 76.6 78.9 Dist. Payout Ratio (%) 100.0 100.0 100.0 100.0 100.0

Balance Sheet (S$m) FY Dec 2014A 2015A 2016A 2017F 2018F

Investment Properties 4,882 4,962 6,591 6,595 6,599 Other LT Assets 1,499 1,504 1,259 1,259 1,259 Cash & ST Invts 101 81.2 160 211 207 Inventory 0.0 0.0 0.0 0.0 0.0 Debtors 38.3 45.3 41.9 21.7 21.2 Other Current Assets 0.0 0.0 0.0 0.0 0.0 Total Assets 6,521 6,593 8,051 8,087 8,086

ST Debt 270 0.0 173 173 173 Creditor 47.4 37.3 52.8 81.1 79.4 Other Current Liab 11.4 8.68 9.92 9.28 9.26 LT Debt 970 1,255 2,457 2,290 2,298 Other LT Liabilities 68.6 57.6 79.3 79.3 79.3 Unit holders’ funds 5,153 5,234 5,279 5,454 5,447 Minority Interests 0.0 0.0 0.0 0.0 0.0 Total Funds & Liabilities 6,521 6,593 8,051 8,087 8,086

Non-Cash Wkg. Capital (20.5) (0.7) (20.8) (68.7) (67.5) Net Cash/(Debt) (1,139) (1,174) (2,471) (2,252) (2,265) Increase due to the Ratio acquisition of the remaining Current Ratio (x) 0.4 2.8 0.9 0.9 0.9 60% interest in CapitaGreen Quick Ratio (x) 0.4 2.8 0.9 0.9 0.9 Aggregate Leverage (%) 30.4 30.0 37.5 37.5 37.5 Z-Score (X) 2.2 2.3 1.2 1.3 1.3 Source: Company, DBS Bank

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Cash Flow Statement (S$m) FY Dec 2014A 2015A 2016A 2017F 2018F

Pre-Tax Income 368 241 235 260 256 Dep. & Amort. 3.51 3.51 3.51 3.51 3.51 Tax Paid 0.0 0.0 (0.1) (1.5) (0.9)

Associates &JV Inc/(Loss) (217) (97.3) (85.7) (86.8) (87.8)

Chg in Wkg.Cap. (4.6) (19.8) 18.7 48.6 (1.2)

Other Operating CF 39.3 69.5 31.9 21.0 20.7 Net Operating CF 189 197 203 244 191 Net Invt in Properties (29.8) (21.3) (374) (8.0) (8.0)

Other Invts (net) 0.0 0.0 0.0 0.0 0.0 Acquisition of 60% Invts in Assoc. & JV (397) 0.0 0.0 0.0 0.0 stake in CapitaGreen Div from Assoc. & JVs 86.1 85.0 115 86.8 87.8 Other Investing CF 392 0.0 0.0 0.0 0.0 Net Investing CF 51.7 63.7 (259) 78.8 79.8 Distribution Paid (243) (252) (257) (280) (283) Chg in Gross Debt 50.3 5.00 464 8.00 8.00 New units issued 0.0 0.0 0.0 0.0 0.0 Other Financing CF (30.7) (33.4) (71.5) 0.0 0.0 Net Financing CF (223) (280) 135 (272) (275) Currency Adjustments 0.0 0.0 0.0 0.0 0.0 Chg in Cash 17.0 (19.9) 78.8 51.4 (4.6)

Operating CFPS (S cts) 6.63 7.35 6.22 6.50 6.17 Free CFPS (S cts) 5.45 5.95 (5.8) 7.85 5.87 Source: Company, DBS Bank

Target Price & Ratings History

Source: DBS Bank Analyst: Mervin SONG CFA Derek TAN

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CapitaLand Commercial Trust

DBS Bank recommendations are based an Absolute Total Return* Rating system, defined as follows: STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame) BUY (>15% total return over the next 12 months for small caps, >10% for large caps) HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps) FULLY VALUED (negative total return i.e. > -10% over the next 12 months) SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame) Share price appreciation + dividends

Completed Date: 8 Mar 2017 07:46:33 (SGT) Dissemination Date: 8 Mar 2017 08:54:53 (SGT)

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Page 8 Company Guide CapitaLand Commercial Trust

DBS Vickers Securities (USA) Inc ("DBSVUSA")"), a U.S.-registered broker-dealer, does not have its own investment banking or research department, has not participated in any public offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months and does not engage in market-making.

ANALYST CERTIFICATION The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her compensation was, is, or will be, directly or indirectly, related to specific recommendations or views expressed in the report. The research analyst (s) primarily responsible for the content of this research report, in part or in whole, certifies that he or his associate1 does not serve as an officer of the issuer or the new listing applicant (which includes in the case of a real estate investment trust, an officer of the management company of the real estate investment trust; and in the case of any other entity, an officer or its equivalent counterparty of the entity who is responsible for the management of the issuer or the new listing applicant) and the research analyst(s) primarily responsible for the content of this research report or his associate does not have financial interests2 in relation to an issuer or a new listing applicant that the analyst reviews. DBS Group has procedures in place to eliminate, avoid and manage any potential conflicts of interests that may arise in connection with the production of research reports. The research analyst(s) responsible for this report operates as part of a separate and independent team to the investment banking function of the DBS Group and procedures are in place to ensure that confidential information held by either the research or investment banking function is handled appropriately. There is no direct link of DBS Group's compensation to any specific investment banking function of the DBS Group.

COMPANY-SPECIFIC / REGULATORY DISCLOSURES 1. DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates have a proprietary position in CapitaLand Commercial Trust recommended in this report as of 31 Jan 2017.

2. Neither Bank Ltd, DBS HK nor DBSV HK market makes in equity securities of the issuer(s) or company(ies) mentioned in this Research Report.

Compensation for investment banking services:

3. DBS Bank Ltd, DBSVS, their subsidiaries and/or other affiliates of DBSVUSA have received compensation, within the past 12 months for investment banking services from CapitaLand Commercial Trust as of 31 Jan 2017.

4. DBS Bank Ltd, DBSVS, their subsidiaries and/or other affiliates of DBSVUSA have managed or co-managed a public offering of securities for CapitaLand Commercial Trust in the past 12 months, as of 31 Jan 2017.

5. DBSVUSA does not have its own investment banking or research department, nor has it participated in any public offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months. Any US persons wishing to obtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document should contact DBSVUSA exclusively.

Disclosure of previous investment recommendation produced:

6. DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates may have published other investment recommendations in respect of the same securities / instruments recommended in this research report during the preceding 12 months. Please contact the primary analyst listed in the first page of this report to view previous investment recommendations published by DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates in the preceding 12 months.

1 An associate is defined as (i) the spouse, or any minor child (natural or adopted) or minor step-child, of the analyst; (ii) the trustee of a trust of which the analyst, his spouse, minor child (natural or adopted) or minor step-child, is a beneficiary or discretionary object; or (iii) another person accustomed or obliged to act in accordance with the directions or instructions of the analyst.

2 Financial interest is defined as interests that are commonly known financial interest, such as investment in the securities in respect of an issuer or a new listing applicant, or financial accommodation arrangement between the issuer or the new listing applicant and the firm or analysis. This term does not include commercial lending conducted at arm's length, or investments in any collective investment scheme other than an issuer or new listing applicant notwithstanding the fact that the scheme has investments in securities in respect of an issuer or a new listing applicant. ASIAN INSIGHTS VICKERS SECURITIES

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CapitaLand Commercial Trust

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This report is disseminated in the United Kingdom by DBS Vickers Securities (UK) Ltd, ("DBSVUK"). DBSVUK is authorised and regulated by the Financial Conduct Authority in the United Kingdom.

In respect of the United Kingdom, this report is solely intended for the clients of DBSVUK, its respective connected and associated corporations and affiliates only and no part of this document may be (i) copied, photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written consent of DBSVUK. This communication is directed at persons having professional experience in matters relating to investments. Any investment activity following from this communication will only be engaged in with such persons. Persons who do not have professional experience in matters relating to investments should not rely on this communication.

Dubai This research report is being distributed in The Dubai International Financial Centre (“DIFC”) by DBS Bank Ltd., (DIFC Branch) having its office at PO Box 506538, 3rd Floor, Building 3, East Wing, Gate Precinct, Dubai International Financial Centre (DIFC), Dubai, United Arab Emirates. DBS Bank Ltd., (DIFC Branch) is regulated by The Dubai Financial Services Authority. This research report is intended only for professional clients (as defined in the DFSA rulebook) and no other person may act upon it.

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United States This report was prepared by DBS Bank Ltd. DBSVUSA did not participate in its preparation. The research analyst(s) named on this report are not registered as research analysts with FINRA and are not associated persons of DBSVUSA. The research analyst(s) are not subject to FINRA Rule 2241 restrictions on analyst compensation, communications with a subject company, public appearances and trading securities held by a research analyst. This report is being distributed in the United States by DBSVUSA, which accepts responsibility for its contents. This report may only be distributed to Major U.S. Institutional Investors (as defined in SEC Rule 15a-6) and to such other institutional investors and qualified persons as DBSVUSA may authorize. Any U.S. person receiving this report who wishes to effect transactions in any securities referred to herein should contact DBSVUSA directly and not its affiliate.

Other jurisdictions In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only for qualified, professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.

DBS Bank Ltd 12 Marina Boulevard, Marina Bay Financial Centre Tower 3 Singapore 018982 Tel. 65-6878 8888 e-mail: [email protected] Company Regn. No. 196800306E

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