AR01(Review pg 1-43) FA 22/3/02 4:51 PM Page 1

BUILDING FOR LASTING VALUE PROFILE/INTRODUCTION

CapitaLand is one of the largest listed 1 property companies in Asia. Headquartered in Singapore, the multinational company PAGE has property, hospitality and property-related products and services spanning more than 50 cities around the world. Its diversified business interests cover commercial and industrial buildings, residential properties, serviced residences, hotels, property funds, real estate financials and property services. The Company leverages on its significant asset base and market knowledge to develop fee-based businesses. Given its scale, scope of services and geographic spread, the company’s core assets are its people – a strong international management team and a dedicated, professional staff. The Company believes in developing the best people to deliver the best products and services; in other words, building people who build for people. AR01(Review pg 1-43) FA 22/3/02 4:51 PM Page 2

CAPITALAND ANNUAL REPORT 2001 CORPORATE DIRECTORY

2 CORPORATE DIRECTORY

PAGE PAGE Board of Directors Nominations Committee Principal Bankers Philip Yeo Liat Kok Peter Seah Lim Huat • ABN-AMRO Bank N.V. Chairman Hsuan Owyang • Australia and New Zealand Banking Liew Mun Leong Group Limited Hsuan Owyang Sir Alan Cockshaw • Bank of America N.A. Deputy Chairman Lim Chin Beng • Bayerische Hypo-und Vereinsbank AG Jackson Peter Tai • Bayerische Landesbank Girozentrale Liew Mun Leong • BNP Paribas President & CEO Budget and Finance • Commerzbank AG in alphabetical order: Committee • Credit Agricole Indosuez Hsuan Owyang • Credit Lyonnais Sir Alan Cockshaw Liew Mun Leong • Credit Suisse First Boston Hsieh Fu Hua Jackson Peter Tai • Dresdner Bank AG Lim Chin Beng Lui Chong Chee • Hang Seng Bank Vernon R Loucks Jr. • Malayan Banking Berhad Peter Seah Lim Huat Corporate Disclosure Committee • National Australia Bank Limited Sum Soon Lim Sum Soon Lim • Oversea-Chinese Banking Jackson Peter Tai Liew Mun Leong Corporation Limited Lucien Wong Yuen Kuai Lucien Wong Yuen Kuai • Shanghai Commercial Bank Ltd. • Standard Chartered Bank Company Secretary Registered Address • Sumitomo Mitsui Banking Lim Mei Yi 168 Robinson Road Corporation #30-01 Capital Tower • The Bank of Tokyo-Mitsubishi Limited Assistant Company Secretary Singapore 068912 • The Development Bank of Singapore Jessica Lum Telephone: 6823 3200 Limited Facsimile: 6820 2202 • The Hongkong & Shanghai Banking Audit Committee Corporation Limited Sum Soon Lim Registrar • UFJ Bank Limited Hsieh Fu Hua Lim Associates (Pte) Ltd • United Overseas Bank Limited Lucien Wong Yuen Kuai 10 Collyer Quay • Wing Hang Bank, Ltd. #19-08 Ocean Building • Wing Lung Bank Ltd. Investment Committee Singapore 049315 Philip Yeo Liat Kok Telephone: 6536 5355 Hsuan Owyang Facsimile: 6536 1360 Liew Mun Leong Jackson Peter Tai Auditors Lui Chong Chee KPMG 16 Raffles Quay #22-00 Executive Resource and Hong Leong Building Compensation Committee Singapore 048581 Peter Seah Lim Huat Telephone: 6213 3388 Hsuan Owyang Facsimile: 6225 6157 Sir Alan Cockshaw (Partner-in-charge: Martha Tan) Lim Chin Beng Jackson Peter Tai AR01(Review pg 1-43) FA 22/3/02 4:51 PM Page 3

BUILDING FOR LASTING VALUE CHAIRMAN’S MESSAGE

CHAIRMAN’S MESSAGE 3

Dear Shareholders PAGE 2001 was an unprecedented year in The Group increased the management Singapore's recent history. GDP fee component of its earnings. growth turned negative in the second Contributions to management fees quarter. Singapore was in technical came from all the business units of the recession by the third-quarter; the Group, fulfilling the goal of growing its global economy was not promising. fee-based businesses. CapitaLand That economic decline was further Commercial, the office, retail and PHILIP YEO exacerbated by the terrorist attacks industrial property arm of the company, on New York's World Trade Center entered into strategic alliances with The Group has been able to execute in September. Singapore recorded foreign and local companies to pave its strategies with nimbleness and negative GDP growth of 2.2% for the the way for more fee-based contracts. achieve creditable performance despite full year, the country's worst economic Raffles Holdings, the hotel business the difficult operating environment outcome in its 36-year history. unit, made acquisitions to increase its due to the quality of its management management contracts in the Asia- and staff. The Group is increasing We demonstrated our resilience in Pacific, Europe and the United States. its talent pool at a global level, in line these challenging market conditions The Ascott Group, the serviced with its positioning as a multinational and difficult operating environment. residences arm, secured more new corporation headquartered in The Group remains committed to the management contracts through a series Singapore. In fact, one quarter of the strategies that we had mapped out to of acquisitions and alliances in key staff, of Vice President-level and above, our shareholders. We focused on our gateway cities in China, the United is made up of foreign nationals. The core competencies, balancing trading Kingdom and Australia. PREMAS Group will continue to place premium returns with steady investment income, International, the property services value on our committed and challenged and growing fee-based business. We arm, was awarded new management staff as they are better able to seek and stayed the course to leverage on our contracts in Singapore and Shanghai. seize opportunities and build lasting significant asset base and domain value for CapitaLand's shareholders. knowledge of the real estate and The year also saw the Group seizing hospitality businesses and to access opportunities to expand its global On behalf of the Board, I wish to third party capital to lighten balance presence in the gateway cities and thank all our shareholders, customers, sheet. The Group sought to seize increasing the contributions from tenants and business partners for their diversification opportunities, capitalise overseas operations. These strategic continued support and last but not on our geographic spread and moves proved to be positive, as least, our staff of CapitaLand for international reach and optimise its contributions from overseas investments their valued contributions. Looking capital structure by divesting non-core helped to offset to some extent, the forward, I am confident that having businesses. These actions successfully weak Singapore market. Our eight-year demonstrated resilience in the first year positioned our Group to overcome the presence in China bore fruit as the of operations during a severe economic adverse environment in Singapore and operations experienced a turnaround in climate, the Group will continue to the selected gateway cities (namely 2001 and began to contribute positively succeed in executing our strategic Hong Kong, Tokyo, London and to the Group's earnings. In the United direction and transform CapitaLand Sydney). In 2001, CapitaLand divested Kingdom, with the Group's domain into a world-class property company. more than S$1.7 billion worth of assets. knowledge of the property market, we This is satisfactory because apart from took advantage of the property cycle in PHILIP YEO these transactions, the investment the United Kingdom to sell an office Chairman property market in general was muted. building in London. 25 February 2002

“I am confident that having demonstrated resilience in the first year of operations during a severe economic climate, the Group will continue to transform CapitaLand into a world-class property company.” AR01(Review pg 1-43) FA 22/3/02 4:51 PM Page 4

CAPITALAND ANNUAL REPORT 2001 PRESIDENT’S OVERVIEW

4 PRESIDENT’S OVERVIEW

PAGE PAGE For the year 2001, CapitaLand our strategies, which was to access increased its revenue by 15.3% to third-party capital and increase fee S$3.4 billion. However, in the light of income while leveraging on our the economic slowdown, which caused significant asset base. We established property values in Singapore and the first Singapore dollar-denominated abroad to decline, the Group took wholesale property fund jointly with one measures to write down the value of its of Europe’s leading insurers, ERGO LIEW MUN LEONG assets by S$1.2 billion, of which Insurance Group. S$424.9 million was charged to reserves and S$747.2 million (Group’s Our group fee income was also share is S$691.6 million) was charged supplemented by new management to the profit and loss account. As a contracts secured by our hospitality result, our bottom-line was affected businesses, Raffles Holdings and and we reported a S$275 million loss The Ascott Group. Raffles Holdings for the year. Excluding these non-cash completed the purchase of Swissotel provisions, CapitaLand would have Holding AG, increasing the number of reported S$417 million profit. We also Raffles Holdings’ management generated healthy cash flow. In total for contracts from five to 21. For the the year, we generated net cash flow of residential business, we devised S$2.1 billion, before financing cost, tax Singapore’s first credit-rated and dividends. securitisation of receivables from residential projects to lower our 2001 was an exceptionally tough year, financing costs and to widen our prompting commentators to describe sources of capital. the confluence of several negative events as a “perfect storm”. For Raffles Holdings and The Ascott Singapore, it was one of the worst Group seized opportunities to acquire recessions in its history. This challenging and grow their portfolio of branded environment severely put to test our products and services and enlarge strategic intents in the first year of our the scale of their operations globally. operations since the merger. They are now recognised as significant international companies by their peers. Strategies – Delivering on The cornerstone of our strategy was our promises to have balance, focus and scale. Our Restructuring the company into increased global footprint, focused on strategic business units was part of gateway cities, has provided us with our strategy to focus on execution and scale and balance in all our operations, performance. Using the Commercial and has also given comfortable ballast and the Financial (previously called to our income streams. Our Shanghai Fund Management) business units, we properties were successfully marketed began to transform CapitaLand into an in China, Hong Kong, Singapore and asset-light, fee-based company. other ASEAN countries. In Tokyo, we sold all our residential units in the In 2001, we proactively grew our fee- Shibuya project and obtained good based income. We executed one of returns from our Shinjuku Square Tower

“We have made significant progress in a challenging first year. Our strategies are still relevant in the coming year with a strong emphasis on strengthening our balance sheet and providing quality products and services.” AR01(Review pg 1-43) FA 22/3/02 4:51 PM Page 5

BUILDING FOR LASTING VALUE PRESIDENT’S OVERVIEW 5

office property. We gained from our domain knowledge and expertise Going forward – Building for PAGE sale of our London office property in within the Group. In addition, we have lasting value Finsbury. We are also a leading builder created a risk management division to We have made significant progress of homes in Australia. evaluate our investment opportunities. in a challenging first year. We will continue to try to do better tomorrow Where possible, we have used Our stakeholders – Providing than today. Our strategies are still divestment proceeds to redeem our value, ensuring best practices relevant in the coming year with a outstanding loans. By the end of In 2001, we established corporate strong emphasis on strengthening our December 2001, we reduced our net governance procedures that are well balance sheet and providing quality debt position by about S$1.3 billion ahead of the requirements for listed products and services. We will to S$6.9 billion. Consequently, our net companies in Singapore. We are in lead also develop financial products and gearing declined to 0.87 from 0.92 the position in the setting up of procedures services that maximise on our real year before. Excluding provisions, our for the independent board of directors, estate domain knowledge and financial net gearing would have been reduced the audit committee, the investment skills. We will continue to lighten even further to 0.76. committee, and the executive resource our asset base by monetising and compensation committee. assets, securing financial partners, We recognised significant merger-related restructuring debt portfolio and efficiencies in 2001. In fact, by achieving We switched from semi-annual to reducing borrowings. We aim to merger-related cost savings of S$35 million, quarterly reporting to keep investors monetise at least S$500 million to we exceeded our original target. better informed and to raise our level S$1 billion of assets in 2002. of transparency. Our transparency and Financial innovation – Expanding disclosure policies have been recognised We are confident of achieving our business opportunities by the Securities Investors Association of aims because we have also the We will continue to explore new Singapore which presented CapitaLand most important asset to deliver the opportunities through our newly with its Most Transparent Company strategies: Our People. I want to thank established business unit, CapitaLand Award (Property) for 2001, while them for their significant contributions. Financial. In November, we deferred the The Ascott Group was given Special initial public offering for SingMall Commendation for its Annual Report Our 11-man Board of 10 non-executive Property Trust (“SPT”). We believe that 2000 and high disclosure standards. directors, of whom four are foreign listed property trusts will prove to be an nationals and nine are independent, important new asset class in Singapore. The Asset magazine awarded the and the International Advisory Panel We will continue to monitor the market company the Best Securitisation issue for comprising industry leaders and chief and plan to re-launch the SPT when our innovative financing of residential executives of global companies, have market conditions are favourable. We projects. Raffles Hotel continued to be given us unstinting guidance and will step up our efforts in innovative recognised for its excellence by receiving counsel during this period to navigate securitisations such as that for our awards such as the World’s Best Places us out of the “perfect storm”. residential projects. Real estate to Stay Award (Gold List) by Condé Nast securitisation is an important instrument Traveler. For quality building projects, we Together, in the year 2002, we are for the working of an efficient real estate were accorded several awards in committed to bringing to fruition our market as it enables securities to be Singapore for residential projects strategic goals and intentions to build issued to investors. It will deepen and including the prestigious Garden City a great and lasting CapitaLand. broaden the capital market in Singapore. Award by the National Parks Board, while Being a large property company gives the Buildings and Construction Authority LIEW MUN LEONG us an edge. We have a wide range of honoured us with the BCA Construction President and CEO assets and we can tap on skills, Award and Best Buildable Design Award. 25 February 2002

“Together, in the year 2002, we are committed to bringing to fruition our strategic goals and intentions to build a great and lasting CapitaLand.” AR01(Review pg 1-43) FA 22/3/02 4:51 PM Page 6

CAPITALAND ANNUAL REPORT 2001 BOARD OF DIRECTORS

6 BOARD OF DIRECTORS From left to right PAGE PAGE HSUAN OWYANG

PHILIP YEO LIM CHIN BENG

PETER SEAH JACKSON TAI LUCIEN WONG SUM SOON LIM

SIR ALAN COCKSHAW HSIEH FU HUA LIEW MUN LEONG

VERNON LOUCKS AR01(Review pg 1-43) FA 22/3/02 4:51 PM Page 7

BUILDING FOR LASTING VALUE DIRECTORS’ PROFILE

DIRECTORS’ PROFILE 7

Philip Yeo Chairman, N.M. Rothschild & Sons (Singapore) Mr Lim’s 40 years of experience in the aviation PAGE CHAIRMAN Limited. He served on the Board of Singapore’s industry began with the Malaysian Airlines in Mr Philip Yeo joined the CapitaLand Board on Housing Development Board (HDB) since the 1960s. In the 1970s, he helped start up 15 September 1999 and was elected Chairman 1977 and was appointed Chairman of the Singapore Airlines and was its Managing on the same day. He was last re-elected as HDB in 1983 until his retirement in October Director from 1972 to 1982. Mr Lim retired as Director at CapitaLand’s Annual General Meeting 1998. Mr Owyang had extensive banking Deputy Chairman of Singapore Airlines in 1996. on 31 May 2000. In addition, Mr Yeo is also experience and had worked on Wall Street for Between 1991 to 1997, Mr Lim was also Chairman of CapitaLand’s Investment Committee. 12 years holding the position of an investment Singapore’s Ambassador to Japan. advisor. He was also the Director and General Mr Yeo was appointed Chairman of the Agency Manager of Overseas Union Bank which he Currently, Mr Lim is Chairman of The Ascott for Science, Technology & Research (A*STAR, was associated with for more than 18 years Group Limited and Singapore Technologies formerly National Science & Technology Board) before he took up appointment in Post Office Aerospace Ltd. He is also a Director of and Co-Chairman of the Singapore Economic Savings Bank as its Executive Deputy Singapore Press Holdings Limited and Pontiac Development Board (EDB) since 1 February Chairman until 1988. Land Private Limited. He is a member of the 2001. He was the Chairman of the EDB from Public Service Commission. January 1986 to January 2001. He served in the Mr Owyang is the Chairman of Ayala Ministry of Defence from 1970 where he held International Holdings Limited, a public company Mr Lim is a graduate from the University of several appointments eventually becoming the listed on the SGX. Malaya with BA (Economics) (Honours). He also Permanent Secretary. He set up the National attended an Advanced Management Program at Computer Board and became its first Chairman Mr Owyang is a graduate of the University of the Harvard Business School, USA in 1973. from 1981 to 1987. Dubuque, USA with a BSc in Business Administration. He also holds a Master in Business Jackson Tai Besides CapitaLand, Mr Yeo’s current Administration from Harvard University, USA. DIRECTOR directorships in other listed companies include Mr Jackson Tai joined the CapitaLand Board on United Overseas Bank, Industrial & Commercial Peter Seah 20 November 2000 and was last re-elected as Bank and InfoSys Technologies Limited. He DIRECTOR Director at CapitaLand’s Annual General Meeting served as Chairman, SembCorp Industries Ltd Mr Peter Seah joined the CapitaLand Board on 2 May 2001. In addition, Mr Jackson Tai is a (previously Sembawang Shipyards merging with on 18 December 2001 and is also serving as Member of CapitaLand’s Investment Committee, Singapore Technologies Industrial in 1998) from Chairman of CapitaLand’s Executive Resource Executive Resource and Compensation 1994 to 1999. and Compensation Committee and Committee, Nominations Committee and Budget Nominations Committee. and Finance Committee. Mr Tai is also Chairman Mr Yeo graduated in 1970 in Applied Science of CapitaLand Commercial Limited. (Industrial Engineering) from the University of Mr Peter Seah assumed his current position as Toronto, Canada, under a Colombo Plan President & CEO of Singapore Technologies Pte Currently, Mr Tai is President & Chief Operating Scholarship. He also holds a Master of Science Ltd on 1 December 2001. Prior to this, Mr Seah Officer of DBS Bank, and also a member of the (Systems Engineering) from the University of was with Overseas Union Bank (OUB) since DBS Corporate Office. He is also responsible for Singapore and a Master in Business 1977 and has held several senior positions in the DBS Finance Division and oversees the Administration from Harvard University, USA, as OUB through the years becoming its President business of the DBS Investment Bank. Prior to a Fulbright scholar. In 1997, he was honoured & CEO in 1991. Mr Seah retired as Vice joining DBS Bank, Mr Tai was a Managing with a Doctor of Engineering by his alma mater, Chairman and Chief Executive Officer from OUB Director of J P Morgan & Co’s Investment University of Toronto. on 30 September 2001. Banking Division.

Hsuan Owyang Currently, Mr Seah is Chairman of SembCorp Besides CapitaLand, Mr Tai is also a Director of DEPUTY CHAIRMAN Industries Ltd. He sits on the boards of DBS Group Holdings Ltd and Singapore Mr Hsuan Owyang joined the CapitaLand Board Government Investment Corporation of Telecommunications Limited, public companies on 20 November 2000 and was elected Deputy Singapore, Board of Commissioners of Currency listed on the SGX. Chairman on the same day. He was last re- Singapore and is the Vice President of Singapore elected as Director at CapitaLand’s Annual Chinese Chamber of Commerce and Industry. Mr Tai graduated with a BSc degree from the General Meeting on 2 May 2001. Rensselaer Polytechnic Institute, USA. He also Mr Seah graduated from the University of holds a Master of Business Administration from In addition, Mr Owyang is also serving as Singapore with a BBA (Honours) degree. Harvard University, USA. the Chairman of CapitaLand’s Budget and Finance Committee and sits on CapitaLand’s Lim Chin Beng Sir Alan Cockshaw Investment Committee, Executive Resource DIRECTOR DIRECTOR and Compensation Committee and Nominations Mr Lim Chin Beng joined the CapitaLand Board Sir Alan Cockshaw joined the CapitaLand Board Committee. Mr Owyang is also the Chairman of on 23 February 1998 and was last re-elected on 1 July 1999 and was last re-elected as Director CapitaLand Residential Limited and SingMall as Director at CapitaLand’s Annual General at CapitaLand’s Annual General Meeting on Property Trust Management Limited. Meeting on 31 May 2000. In addition, Mr Lim 31 May 2000. He is a Member of CapitaLand’s is also a Member of CapitaLand’s Executive Executive Resource and Compensation Committee Mr Owyang is concurrently Chairman, Board of Resource and Compensation Committee and and Nominations Committee and is also Chairman Governors, The Institute of Policy Studies and Nominations Committee. of CapitaLand UK Holdings Limited. AR01(Review pg 1-43) FA 22/3/02 4:51 PM Page 8

CAPITALAND ANNUAL REPORT 2001 DIRECTORS’ PROFILE 8

PAGE PAGE Based in the UK, his early career was spent Mr Hsieh is concurrently Managing he was elected to Baxter’s Board of Directors. in both the public and private sectors. In 1973, Partner of PrimePartners Asset Management He became President and Chief Operating he joined Fairclough Civil Engineering and was Pte Ltd with over 27 years of experience in Officer in 1976, Chief Executive Officer in appointed Chief Executive in 1978 and a Member merchant banking in Asia. He was previously 1980, and was named Chairman in 1987. of the main board of Fairclough Construction Group Managing Director of the BNP Prime Prior to joining Baxter, Mr Loucks was Group in 1981. In 1982, Fairclough acquired the Peregrine Group (a joint venture founded senior management consultant for George Press Group and in so doing created the AMEC by PrimePartners) and prior to forming Fry and Associates. Group where Sir Alan became Group Chief PrimePartners in 1994, Mr Hsieh was Chief Executive in 1984 and Chairman in 1988. He Executive of Morgan Grenfell Asia Holdings Pte. Mr Loucks’ other present directorships include retired from AMEC in 1997. Sir Alan has also held Ltd., the regional holding company which Affymetrix Inc., Anheuser-Busch Companies, a number of public positions on behalf of the UK directed the group’s Asian investment banking, Inc., Emerson Electric Co., GeneSoft, Inc., and Government and has recently completed a three- stockbroking and fund management activities. Edwards Lifesciences Corporation. He is also a year term as Chairman of English Partnerships, the member of The Singapore-US Business Council national regeneration agency, and the Commission Besides CapitaLand, Mr Hsieh’s existing and the Advisory Board of Nestle USA. for the New Towns, which merged in 1999. directorships in other public listed companies include The East Asiatic Company Ltd A/S and Mr Loucks holds a Bachelor’s degree in History Currently, Sir Alan is also Chairman of the Nylex (M) Bhd. from Yale University, USA and also holds a Roxboro Group PLC, British Airways Regional Master of Business Administration from the Ltd., PSC International Ltd, Manchester Mr Hsieh graduated from the University of Harvard University, USA. Millennium Ltd., New East Manchester Ltd., Singapore with an honours degree in business and Shawbridge Management Ltd. administration. Liew Mun Leong PRESIDENT & CEO Sir Alan holds an Honorary Degree of Doctor of Lucien Wong Mr Liew Mun Leong joined the CapitaLand Engineering and an Honorary Degree of Doctor DIRECTOR Board as Director on 1 January 1997. He was of Science. Mr Lucien Wong joined the CapitaLand Board on appointed the President & CEO since 20 20 November 2000 and was last re-elected as November 2000 and was last re-elected as Sum Soon Lim Director at CapitaLand’s Annual General Meeting Director at CapitaLand’s Annual General Meeting DIRECTOR on 2 May 2001. In addition, Mr Wong is a on 31 May 2000. He also serves on CapitaLand’s Mr Sum Soon Lim joined the CapitaLand Board Member of CapitaLand’s Audit Committee and Investment Committee, Nominations Committee, on 23 October 1998 and was last re-elected as Corporate Disclosure Committee. Corporate Disclosure Committee and Budget and Director at CapitaLand’s Annual General Meeting Finance Committee. on 2 May 2001. In addition, Mr Sum is also Mr Wong is the Managing Partner of Allen & serving as Chairman of CapitaLand’s Audit Gledhill. He has been in legal practice for more Concurrently, he is also Deputy Chairman Committee and Corporate Disclosure Committee. than 20 years, specialising in corporate and of The Ascott Group Limited and Raffles finance work and has been involved in several Holdings Limited, public-listed subsidiaries of Mr Sum has worked for the Singapore Economic landmark corporate transactions in Singapore. CapitaLand. He is also Deputy Chairman Development Board, DBS Bank, J P Morgan Inc, Mr Wong also sat on a number of law review of CapitaLand Residential Limited, CapitaLand Overseas Union Bank and Nuri Holdings (S) Pte committees in Singapore which reviewed Commercial Limited, CapitaLand Financial Ltd, a private investment holding company. amendments to Singapore company and Limited, pFission Pte Ltd and PREMAS He was Corporate Advisor to Singapore securities law. International Limited. Technologies from March 1997 to April 2000. Mr Wong is also a Director of Singapore With more than 22 years of international Currently, Mr Sum’s directorships include Technologies Engineering Ltd, a public company experience in construction and real estate in Chartered Semiconductor Manufacturing Ltd, listed on the SGX. Singapore and overseas, Mr Liew led a number Singapore Technologies Telemedia Pte Ltd, of public sector infrastructural development Singapore Health Services Pte Ltd, Singapore Mr Wong is a graduate in LLB (Honours) from projects in Singapore, including the successful Technologies Electronics Limited, Vertex Venture the University of Singapore. development and construction of Changi Holdings Ltd and Green Dot Capital Pte Ltd. Airport. For five years, he was CEO of Mr Sum is also a member of the Securities Vernon Loucks Singapore Institute of Standards and Industrial Industry Council. DIRECTOR Research (SISIR), a statutory board responsible Mr Vernon Loucks joined the CapitaLand Board for Singapore’s national standards and industrial Mr Sum is a graduate of the University of on 28 April 2000 and was last re-elected as research and development to support the Nottingham, UK with a BSc in Product Director at CapitaLand’s Annual General Meeting manufacturing industry in Singapore. Thereafter, Engineering (Honours). on 2 May 2001. he headed a major public listed construction company in Singapore with operations in 13 Hsieh Fu Hua Currently, Mr Vernon Loucks is Chairman of countries in the Asia Pacific. From 1997 to 1998, DIRECTOR The Aethena Group, LLC, a private equity firm. Mr Liew was also the President of International Mr Hsieh Fu Hua joined the CapitaLand Board Prior to The Aethena, he was with Baxter Organisation for Standardisation (ISO). on 15 February 2000 and was last re-elected International where he retired as Chairman as Director at CapitaLand’s Annual General of the Board in December 1999. Mr Loucks’ Mr Liew graduated from the University of Meeting on 31 May 2000. Mr Hsieh is also a career at Baxter started in 1966 and had Singapore with a BEngg degree and is a Member of CapitaLand’s Audit Committee and included senior positions in both domestic registered civil engineer. the Chairman of CapitaLand Financial Limited. and international operations. In December 1975, AR01(Review pg 1-43) FA 22/3/02 4:51 PM Page 9

BUILDING FOR LASTING VALUE YEAR IN BRIEF

YEAR IN BRIEF 9 PAGE PAGE January June

> Launch of icFox Singapore, a joint > Divestment of 55% stake in Raffles City venture internet hub that provides (Private) Limited by Raffles Holdings for business-enabling solutions for the S$984.5 million. construction industry. icFox is a joint venture between pFission, Davis > Completion of the acquisition of Langdon & Seah Group, BruVest Swissotel Holding AG by Raffles Limited, BuildVest (Holdings) Pte Ltd Holdings, significantly increasing its and icFox International. global presence.

> Sale of 40% interest in Little India Arcade Pte Ltd by CapitaLand February Commercial, in line with its strategy to divest non-core investments. MAY > Divestment of three properties – Thomson Plaza, 11 Beach Road and > Official launch of CapitaLand China 79 Anson Road – by CapitaLand Holdings Group in Shanghai. Commercial, in line with its strategy April to divest fringe assets. > Official launch of Manhattan Heights, > Assignment of retail property management a luxury condominium in Shanghai, by > Acquisition of 11 floors of office space contracts for S$8.5 million by The Ascott, CapitaLand China (pictured below). in Shinjuku Square Tower, Tokyo, by in line with its strategy to focus on its core CapitaLand Commercial. serviced residence business. > Launch of SunGlade condominium by CapitaLand Residential, which went on > Secured contract, by The Ascott, to > Official opening of CapitaLand Tokyo to become the top-selling home, in terms manage the 135-unit Somerset Elizabeth office, solidifying strategy to grow of units sold, in Singapore during the in Melbourne’s central business district. through “gateway” cities. second quarter.

> Launch of Ubi Techpark, a prime industrial > Completion of Singapore’s first complex in the Paya Lebar sub-regional internationally rated securitisation March centre, by CapitaLand Commercial. programme, a S$200 million progress payment securities Fixed Rate Bond > Divestment of Orchard Point, a four- > Relaunch of The Floravale and issue, by CapitaLand Residential. storey retail podium for S$91 million by Woodsvale with innovative Financial The Ascott. Investment Package. > Won four awards at the 38th Annual World Congress of the International > Secured contract, by The Ascott, to > Meeting of the CapitaLand International Federation of Landscape Architects, manage a 94-unit apartment project Advisory Panel (IAP) to discuss the officiated by Prime Minister Goh Chok in Bencoolen Street in Singapore. The business strategies and plans of the Tong. Temasek Tower and The Floravale property is located in an area earmarked Group after the merger (pictured left). came out tops in the Commercial and to be an international entertainment hub. Residential categories respectively, while Cuppage Mall/H2O Zone received a merit award in the prestigious SILA May Professional Awards Competition 2001. Temasek Tower also won a merit award > Launch of Capital Tower, the flagship in the Garden City Awards 2001. and HQ for CapitaLand, as the “newest landmark in Singapore”. Officiated by Minister for National Development, Mr Mah Bow Tan (pictured above).

> Won the prestigious Building and Construction Authority’s “Best Buildable Design Award” (Commercial and Office Buildings), for Capital Tower.

> Clinched inaugural Garden City Award by National Parks for Hillbrooks and certificates of merit for Pinevale and Woodsvale. APRIL > Won Building and Construction Authority’s inaugural Best Buildable Design Award (Open Category, Residential) for Woodsvale.

JUNE AR01(Review pg 1-43) FA 22/3/02 4:51 PM Page 10

CAPITALAND ANNUAL REPORT 2001 YEAR IN BRIEF 10 PAGE PAGE July August

> Acquisition of PropertyLifestyle by > PREMAS International signed a Propbuzz, an associated company of Research MOU with the Centre for pFission, which became one of Total Building Performance, School of Singapore’s largest online property hubs. Design Environment, National University of Singapore. > Propbuzz won the Best Business Services Site award at the Asian Internet Awards. > Launch of PREMAS Training College by PREMAS International. Officiated by > Completion of joint venture agreement Minister-without-Portfolio Mr Lim Boon on TenantWorld by pFission. This is Heng (pictured below left). the first industry-led office e-Hub in Singapore by leading property > Meeting of the IAP to discuss the developers City Developments Limited, longer-term growth strategies of the Keppel Land and Singapore Land. CapitaLand Group. SEPTEMBER

> Acquisition of an additional 65 units of Somerset Fortune Garden, a 211-unit October serviced residence in Beijing by September The Ascott. > Announcement of third-quarter results by > Establishment of the first wholesale CapitaLand; the only property company > Sale of stake in VISTA Healthcare Asia by property fund denominated in other than subsidiaries The Ascott and CapitaLand Commercial, in line with its Singapore dollars by CapitaLand Raffles Holdings to announce results on strategy to divest non-core investments. Commercial and ERGO Insurance Group a quarterly basis. through the launch of a S$875 million > Launch of THOS SB RAFFLES by Raffles office property fund with three prime > Completion of the sale of controlling International as its latest initiative as Singapore office properties – Pidemco interest in three non-core hotels in creator of lifestyle concepts and products. Centre, The Adelphi and Temasek Tower Hanoi, Yangon and Suzhou. (pictured above right). > Launch of Summit Panorama in Pudong > Sale of prime London office district, Shanghai, by CapitaLand China. > Completion of the transfer of retail property, 131 Finsbury Pavement, management contracts for Junction 8, for S$125 million, by CapitaLand Liang Court, Scotts Shopping Centre and Commercial. This is in line with its Funan The IT Mall, making CapitaLand strategy to optimise returns from Commercial the largest manager of retail investment properties and generate space in Singapore. greater shareholder value.

> CapitaLand won the “Most Transparent > Creation of a new fee-based business Company Award” given by SIAS for unit, CapitaLand Financial, headed by the Property Company category, and CapitaLand’s former Chief Financial Raffles Holdings won the same for the Officer. A new Chief Financial Officer was Hotel category. appointed to augment CapitaLand’s senior management. > Raffles International was the only home-grown company ranked among the “Best Employers in Singapore”, a regional survey conducted by Hewitt Associates. AUGUST AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 11

BUILDING FOR LASTING VALUE YEAR IN BRIEF 11 PAGE PAGE October November

> Sale of 20% stake in Laguna National > Two icFox services, icFox Tenders Golf & Country Club Limited by and icFox Project Net were conferred CapitaLand Commercial, in line with its the BAUCON ASIA 2001 Innovative strategy to divest non-core assets. Exhibit Awards.

> CapitaLand Commercial was conferred > Soft launch of Somerset Fortune Garden the Associate of the Arts Award by in Beijing by The Ascott Group, making it Minister for Information and the Arts the largest serviced residence chain in Mr Lee Yock Suan in recognition of its the capital of China. support for the Arts in Singapore.

> Acquisition of the Oakford chain of serviced residences in Australia for December A$7.23 million by The Ascott. This NOVEMBER comprises the leases of nine serviced > Tanamera Crest by CapitaLand Residential residences with 466 units in the central was fully-sold within three weeks of its business districts of Sydney, Melbourne November release of remaining units with a partial and Hobart. 18 units were acquired later deferred downpayment scheme. in the year (pictured below). > Joint venture between The Ascott and Crown Dilmun Holdings, which involves > Launch of The Levelz, a freehold > Set up of a private trust called the acquisition of Crown Dilmun’s chain condominium targeted at urbanites and SingMall Property Trust, by CapitaLand of 461 serviced residence units in London investors. The condominium was well Commercial, to take ownership of and The Ascott Mayfair for £146.5 million. received and was 75% sold by the end Tampines Mall, Junction 8 and Funan It also has call options to acquire another of 2001 (pictured below). The IT Mall with a view to listing when 218 serviced residences in Manchester market conditions are favourable. and Glasgow. > Completion of The Ascott’s sale of Funan The IT Mall and Junction 8 commercial > Launch of SPAcademy By Raffles The Ascott Group will manage the properties for S$486 million, as part of International, Singapore’s premier spa properties, making it one of the largest its strategy to divest non-core assets. education and skills training institute. serviced residence chains in London.

> A Memorandum of Agreement was signed between The Ascott and Mitsubishi Estate Co. Ltd, a large property developer in Japan, to jointly invest in the development, acquisition and management of serviced residences in Japan.

> Launch of Equinox – the most exciting restaurant and bar complex in Asia – located on levels 68 through 72 of the landmark Raffles City Complex, by Raffles International (pictured above).

DECEMBER OCTOBER AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 12

CAPITALAND ANNUAL REPORT 2001 CORPORATE GOVERNANCE

12 CORPORATE GOVERNANCE

PAGE PAGE CapitaLand’s commitment to standards compensation of senior management Unit (SBU) boards and raised the of corporate governance, transparency personnel. These duties are either investment approval limits. As all the and disclosure of material information, discharged directly or through Board investment decisions made in 2001 not only fulfils legal requirements, but in committees, and through a system of were within the authority limits of the some areas also regularly exceeds the Delegation of Authority to management SBU boards and taken at their levels, regulatory expectations. personnel. Such delegation enables there were no formal meetings for the operational efficiency and encourages Committee during the year. Even so, In conjunction with SGX requirements management decision-making, while the views of the Investment Committee introduced in April 2001 for all listed maintaining control over major Group and Board were actively sought by the companies to describe their corporate policies and decisions. various SBUs. governance practices from 2003 onwards, CapitaLand has put in (b) Audit Committee (d) Executive Resource and place a system for decision making The Audit Committee comprises Compensation Committee and self-regulation. In addition, the three non-executive directors, all The Executive Resource and Group also implemented monitoring of whom are independent. The Compensation Committee (ERCC) is mechanisms and adopted appropriate Chairman is Mr Sum Soon Lim and chaired by Mr Peter Seah, President transparency and disclosure policies. the members are Mr Hsieh Fu Hua and and Chief Executive Officer of the Mr Lucien Wong. The Audit Committee Singapore Technologies Group, which Board of Directors & Committees assists the Board in ensuring the is CapitaLand’s holding company. (a) Board of Directors independence of the external and Mr Peter Seah replaced Ms Ho Ching CapitaLand places great importance internal auditors, appropriateness and on 1 January 2002.The Committee on the quality of its directors. These adequacy of financial statements and also comprises Mr Hsuan Owyang, persons, with extensive and varied other disclosures, and reliability of Sir Alan Cockshaw, Mr Lim Chin Beng qualifications and experience, are financial reporting and internal control and Mr Jackson Tai, all of whom are respected in their fields and have good systems. During 2001, the Audit non-executive directors. During track record in both the public and/or Committee met and performed the the year, the ERCC reviewed and corporate sectors. There are a total of functions stated in the Directors’ approved recommendations on eleven directors. Except for Mr Liew Report under “Audit Committee”. remuneration policies and packages Mun Leong, the President and Chief for key executives, approved the Executive Officer (CEO) of the Group, (c) Investment Committee grants of share options, reviewed the rest are non-executive directors. The Investment Committee is chaired the succession plans for key positions by Mr Philip Yeo and comprises and oversaw the development of high The Board meets at least four times a Mr Hsuan Owyang, Mr Liew Mun potential executives. year. The incumbent directors attended Leong, Mr Jackson Tai and at least 89% of the aggregate number Mr Lui Chong Chee, the new Chief (e) Nominations Committee of Board meetings and committees Financial Officer of the Group. Mr Lui The Nominations Committee is chaired in which they served. Apart from its became a member of this Committee by Mr Peter Seah who replaced Ms Ho statutory responsibilities, the Board with effect from 28 November 2001, Ching on 7 January 2002, and the approves the Group’s strategic replacing Mr Hiew Yoon Khong. members are Mr Hsuan Owyang, directions, key initiatives, major Mr Liew Mun Leong, Sir Alan investment and funding decisions; In December 2000, the Board approved Cockshaw, Mr Lim Chin Beng and reviews the financial performance the Delegation of Authority to the Mr Jackson Tai. The Committee of the Group; and decides on newly-established Strategic Business oversees the composition of the AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 13

BUILDING FOR LASTING VALUE CORPORTE GOVERNANCE 13

boards and committees in the Dealing in securities Transparency, disclosure & PAGE CapitaLand Group of companies such In compliance with the Best dissemination of information as reviewing appointments to the Practices Guide, the Company has CapitaLand’s commitment to higher CapitaLand Board, approving issued guidelines to directors and standards of transparency, disclosure appointments of holding companies employees in the Group. These and dissemination not only ensures of unlisted SBUs and approving guidelines prohibit dealings while in compliance with rules and regulations appointments of CapitaLand’s possession of price-sensitive applicable to public listed companies, nominees on listed companies information and during the “close but also reduces share price volatility, within the CapitaLand Group of period” which is defined as two weeks improves market valuation, increases companies (excluding directors before and up to and including the liquidity, increases the Group’s deemed independent). date of announcement of results credibility and enhances overall (quarterly, half year and full year). shareholder value. Some of the (f) Budget and Finance Committee The guidelines also prohibit dealings proactive steps undertaken by the The Budget and Finance Committee is in the Company’s securities on short- Group are quarterly release of results, chaired by Mr Hsuan Owyang and the term considerations. earlier compliance of new codes and members are Mr Jackson Tai, requirements, furnishing more details Mr Liew Mun Leong and Mr Lui Chong In addition, directors and employees in its annual reports, and webcasting Chee, who replaced Mr Hiew Yoon are also prohibited from dealing in its press conferences. Khong on 28 November 2001. During securities of other listed companies the year, the Committee met four times while they are in possession of Statement of compliance to review the quarterly financial results, unpublished price sensitive information The Board of Directors confirms forecasts and the annual financial plan by virtue of their directorship/ that during the financial year ended of the Group. It also reviewed and employment in the Company or any 31 December 2001, the Company approved changes to the CapitaLand of its group companies. They are has complied with the CapitaLand Group Finance Manual comprising also made aware that the overarching Corporate Governance Policy policies, procedures and guidelines in Insider Trading laws are applicable at which is based on SGX Best Practices areas such as accounting, treasury, all times. Guide. The Company was also investment appraisal, management proactive in the early compliance and statutory reporting, and Internal controls of some of the requirements corporate governance. The Group’s internal controls are stipulated in the Code of Corporate designed to provide reasonable Governance issued by the Corporate (g) Corporate Disclosure Committee assurance about the effectiveness and Governance Committee. The Corporate Disclosure Committee efficiency of operations, reliability of is chaired by Mr Sum Soon Lim, with financial information, and compliance Looking ahead Mr Liew Mun Leong and Mr Lucien with policies and procedures, Established in early 2001, the Investor Wong as members. The Committee applicable laws and regulations. Relations Department will continue reviews corporate disclosure issues The Board, with the help of the exploring ways to manage a very and announcements made to the SGX, Audit Committee and the Budget robust investor relations programme. and ensures that CapitaLand adopts and Finance Committee, reviews the It will also enable CapitaLand to look good corporate governance and effectiveness of the Group’s financial into other regulatory codes to exceed pursues best practices in terms of reporting and internal control systems, requirements and concurrently transparency to shareholders and the which are monitored through a strengthen shareholders’ confidence investing community. programme of internal audits. in the Company. AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 14

CAPITALAND ANNUAL REPORT 2001 BOARD COMPOSITION AND COMMITTEES

14 BOARD COMPOSITION AND COMMITTEES as at 25 February 2002 PAGE PAGE

Executive Resource Budget and and Corporate Audit Investment Compensation Nominations Finance Disclosure Committee Committee Committee Committee Committee Committee Board Members Philip Yeo Liat Kok Hsuan Owyang ••• Peter Seah Lim Huat Liew Mun Leong • ••• Sir Alan Cockshaw •• Hsieh Fu Hua • Lim Chin Beng •• Vernon R Loucks Jr. Sum Soon Lim Jackson Peter Tai •••• Lucien Wong Yuen Kuai ••

Non-Board Member Lui Chong Chee ••

Chairman Member • AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 15

BUILDING FOR LASTING VALUE CORPORATE OFFICE

CORPORATE OFFICE 15 PAGE PAGE

Liew Mun Leong in alphabetical order: President & CEO Steven Choo Senior Vice President, Research & Direct Investments Lui Chong Chee Chief Financial Officer wef 1 Nov 2001 Lai Choon Hung in alphabetical order: Senior Vice President, Corporate Planning

Hiew Yoon Khong Lim Mei Yi Chief Financial Officer until 31 Oct 2001 Company Secretary CEO, CapitaLand Financial wef 1 Nov 2001 CEO, CapitaLand Commercial wef 1 Feb 2002 Basskaran Nair Senior Vice President, Communications Ed Ng Executive Vice President wef 1 Feb 2002 Nancy Ng Senior Vice President, Anthony Seah Human Resource & Corporate Services Head, Synergistic Cost Management George Tanasijevich Martin Tan Senior Vice President, Equity Markets Head, InfoNet Wen Khai Meng Deputy Chief Financial Officer Risk Management AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 16

CAPITALAND ANNUAL REPORT 2001 INTERNATIONAL ADVISORY PANEL

16 INTERNATIONAL ADVISORY PANEL

PAGE PAGE As the global footprint of the business States. During the year, Mr Stuart • Dr Vichit Suraphongchai units expand through organic growth, Hornery and Mr Satoru Anzaki stepped Chairman of Executive Committee, joint ventures and acquisitions, down from the IAP. CapitaLand would The Siam Commercial Bank Public management needs a wider like to record its deep appreciation for Co Ltd, Thailand perspective of the external environment their unstinting service. At the same that impacts Group’s businesses. time, the Group is honoured to have • Tan Sri Datuk Dr Ahmad Moreover, the pace of change, Mr Alasdair Morrison and Dr Fu Yu Ning Tajuddin Bin Ali especially in a globalised economy, has join the Panel. The members of the Chairman, Gas Malaysia Sdn Bhd, indeed created a sense of urgency to CapitaLand IAP are: Malaysia keep track of the dynamic changes. CapitaLand’s International Advisory • Sir Alan Cockshaw • Marjorie Yang Panel (IAP), formed in late 1999, is Chairman, English Partnerships, Chairman, Esquel Group, Hong Kong the vehicle for the Group to tap the United Kingdom experiences and advice of corporate Looking ahead The Panel will leaders from regional and global • Satoru Anzaki continue to counsel on matters that will companies. The Panel meets up to (stepped down in May 2001) help pilot the Group’s business units to twice a year to advise and exchange President, Komatsu Ltd, Japan be regional or global leaders. These will views with management on global further strengthen the Group’s effort to trends and regional developments, • Jan D Doets increase returns to shareholders. and provides inputs on the Group’s CEO, ING Real Estate, Netherlands strategies and businesses. Young ideas panel • Dr Fu Yu Ning The new economy is about young Since 1999, four IAP meetings have (joined in June 2001) talents, new ideas, fresh innovations been organised. At CapitaLand’s 3rd Director & President, China and how things can be done IAP Meeting in April 2001, discussions Merchants Holdings Co, unconventionally, yet effectively. were focused on business strategies People’s Republic of China Moreover, the views and values of and plans of the Group after the youths today reflect the purchasing merger, particularly in its overseas • Stuart Hornery decisions of future generations. investments and efforts to increase (stepped down in April 2001) returns to shareholders. Chairman, Hornery Institute and CapitaLand’s Young Ideas Panel was Chairman, Australia’s National formed in January 2001 for enterprising The 4th IAP Meeting was a joint Training Authority, Australia youths outside the Group to share their meeting in August 2001 with the IAP of ideas and perspectives. The panel Singapore Technologies, the Group’s • Jun Itoigawa serves as a platform for the airing of parent company. Held in Munich, Deputy President, IBJ Leasing valuable feedback on what today’s Germany, the Meeting covered, among Co Ltd, Japan youths want in their homes and other subjects, the longer-term growth workplaces, and what they do in their strategies for the CapitaLand Group. • Alasdair G Morrison leisure time. Panel members shared their views on (joined in May 2001) Chairman & the Group’s geographical focus, the CEO, Morgan Stanley Asia Pacific, Looking ahead The Panel will continue growth of its hospitality business and Hong Kong to meet regularly to brainstorm and the proposed real estate based contribute ideas on diverse subjects, financial products business. • Jeremy Newsum ranging from lifestyle trends to Group Chief Executive, Grosvenor emerging business opportunities. The IAP Group Holdings Ltd, United Kingdom CapitaLand’s international presence in Chaired by Sir Alan Cockshaw, the IAP terms of market positioning, corporate comprises industry leaders and CEOs • Joseph E Robert, Jr image and its range of products and of global corporations from Asia, Chairman & CEO, The J E Robert services delivered at home and abroad, Australia, Europe and the United Companies, United States are also under review. AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 17

BUILDING FOR LASTING VALUE HUMAN RESOURCES

HUMAN RESOURCES 17

As the Group continues its drive the business. Last year, the HR CapitaLand Group Staffing PAGE towards becoming a leading function in Corporate HQ and (including local & overseas subsidiaries)

multinational property-based player, CapitaLand Commercial was 0.5% 8.3% CapitaLand one of its main priorities is to attract, outsourced to Embrace Limited, 3.4% Limited CapitaLand retain and develop talent at home and Asia’s first full outsourcing service 60.4% Residential 11.3% abroad. Top management is totally provider. Other SBUs within CapitaLand Commercial & committed to talent management, CapitaLand also partially outsourced CapitaLand steering the efforts to identify and their HR transactional processes to Financial PREMAS 15.8% develop an international talent pool, as Embrace. With this arrangement, HR International The Ascott Group well as to establish career development administration has been reduced and 0.2% pFission plans for individuals. They have also employee self-service introduced. Raffles Holdings Group instituted meetings with staff regularly to promote a healthy exchange of Boosting productivity feedback and ideas. The Group abides by the adage that “a healthy body leads to a healthy Key initiatives mind”. A healthy lifestyle among With the successful integration of staff is a boost to productivity in the various staff issues following the merger, workplace. To this end, the CapitaLand Human Resources (HR) initiatives are Group Sports and Recreation Club was now focused on developing human formed to facilitate greater interaction capital and improving process across the various SBUs. Its inaugural efficiencies. A key initiative during event, a Group Walk-A-Jog in Sentosa, the year was the centralisation of HR held in conjunction with the National management of CapitaLand’s senior Healthy Lifestyle Campaign, attracted executives to provide closer attention more than 500 participants, comprising on their career development. Other employees and their family members. initiatives include talent management, Besides such Group-wide activities, the HR co-sourcing, and programmes respective SBUs also held their own focused on strengthening CapitaLand healthy lifestyle programmes as an Employer of Choice. During the throughout the year. year, the Group maintained excellent union-management relations and was Looking ahead presented the Star of Commendation More employee self-service modules 2001 Award from SISEU (Singapore will be rolled out in the coming year. Industrial & Services Employees’ Union). In addition, meetings and sessions with staff, and sharing of corporate goals To maintain a leaner, yet nimble and plans throughout the year will operation, the Group took a big step continue. Dedicated and committed forward to improve efficiencies and staff who share the vision and mission bring more strategic HR solutions to are the company’s best assets.

“Top management is totally committed to talent management, steering the efforts to identify and develop an international talent pool.” AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 18

CAPITALAND ANNUAL REPORT 2001 COMMUNITY RELATIONS

18 COMMUNITY RELATIONS

PAGE PAGE In 2001, the group of companies In Thailand, staff and guests at the Community services within CapitaLand participated actively Somerset residences raised funds for Staff of Funan The IT Mall to support the less privileged and the an international volunteer group that worked closely with CaseTrust, an community at large. In line with the cared for the elderly, sick and the accreditation body, and the Infocomm Group’s belief in good corporate orphaned. They also helped flood Development Authority of Singapore citizenship, community relations victims in Petchaboon province by (IDA), a regulatory body for information went beyond donations to include donating funds and volunteering their technology, to help educate the public active community participation in its time and efforts to send emergency aid. on e-commerce transactions. business operating environments. In Vietnam, staff tied up with concerned In China, the activities of Shanghai Jiao Helping hand for charity individuals and residents in the Group’s Tong University Business School MBA In Singapore, CapitaLand Group serviced residences to raise funds for 2001 inauguration and Shanghai supported the elderly and disabled children with health problems. This Foreign Investment Enterprises were children. The Rainbow Centre, a enabled the children to seek proper supported by CapitaLand China. voluntary organisation for children medical treatment. Staff and residents with disabilities, was adopted by also volunteered their time, helping In the other areas, CapitaLand CapitaLand Residential. An awareness handicapped children in Vietnam. Commercial was awarded the talk as well as a visit to the Centre Associate of the Arts Award 2001 for enabled staff to interact with the Raffles International staff also went contributions towards the promotion children. In addition, CapitaLand out of their way to do their bit for and organisation of arts activities and Residential raised more than S$10,000 the community through its REACH initiatives in Singapore. in a pledge card donation drive to (Rendering Encouragement, benefit the Centre. Assistance, Care and Hope) The Group also contributed to the Programme. In Cambodia, more than ASEAN Achievement Millennium Staff of PREMAS International also two tonnes of clothing, toys, books Awards. The Awards recognised the supported children’s charities by and stationery were collected for roles and contributions made by volunteering their time and efforts at needy children. In addition, the Mr Lee Kuan Yew, Senior Minister, the Children’s Convalescent Home. Programme also participated in Singapore and Dato Seri Dr Mahathir From The Ascott Group, staff of the annual Clean Angkor Campaign, Mohamad, Prime Minister, Malaysia, the Singapore office raised funds which promotes cleanliness and the to their nations and the ASEAN region. through donations for children, the need to protect the unique historical elderly and the handicapped. environment of Siem Reap. Looking ahead CapitaLand will continue to focus on a In Malaysia, The Ascott Kuala Lumpur, Raffles International is a patron of participatory approach to community launched a charity drive in aid of an the SOS Children’s Villages. Through relations. This is in line with its mission orphanage by contributing financial aid, various programmes, it raises funds to ‘build people to build for people’. toys and food. to build children’s villages worldwide.

“CapitaLand will continue to focus on a participatory approach to community relations. This is in line with our mission to ‘build people to build for people’.” AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 19

BUILDING FOR LASTING VALUE INVESTOR RELATIONS

INVESTOR RELATIONS 19

As the largest property company in recognised our commitment PAGE Southeast Asia, CapitaLand attracts to earnings transparency. In a significant amount of interest from September, the Securities Investors investors across the globe and is Association (Singapore) (SIAS) committed to pursue a high level of conferred on CapitaLand its Most dialogue with the global investment Transparent Company Award in the community. Its Investor Relations property category. Department was established in early 2001 to provide timely, accurate, orderly, Expanding our channels consistent and credible information to This year, CapitaLand launched investors, analysts and fund managers. a new Investor Relations section Throughout the year, CapitaLand on the corporate web site at participated in more than 120 investor www.ir.capitaland.com. The Investor meetings. The Company also Relations web pages include many participated in investor conferences in features, such as: real time stock Singapore, Amsterdam and Hong Kong. quotes, a press release archive, an Investor Relations event calendar, Tracking our transformation management biographies, a corporate At the beginning of 2001, the history and profile, extensive FAQs, management of CapitaLand outlined and a list of the analysts covering an ambitious plan to transform the CapitaLand. Investors can make online Company and enhance shareholder requests for corporate brochures value as a follow-through after the (available in three languages), a merger. There were regular updates summary financial report, or the to investors on the Company’s goals, annual report. They can even register strategy, execution, and results. to receive CapitaLand news by e-mail. In 2001, CapitaLand began reporting In addition, analysts may download its results on a quarterly basis – the financial and asset data for first Singapore property group to do convenient offline viewing. With so. The Company conducted briefings these improvements, the web site is for analysts and the media, with now a virtual information gold mine members of the executive team for investors. making presentations and answering questions. The briefings were Looking ahead simulcast live over the Internet and In the year to come, the department archived on the Group’s web site. will continue to uphold transparency standards and seek even more One of Singapore’s most prominent opportunities to increase investors’ investor organisations recently awareness and interest in CapitaLand.

“In 2001, CapitaLand began reporting its results on a quarterly basis – the first Singapore property group to do so.” AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 20

CAPITALAND ANNUAL REPORT 2001 INFONET

20 INFONET

PAGE PAGE The difficult business economic In 2001, significant inroads were made Looking ahead conditions in 2001 reinforce the in each of these areas across the Prompted by the rapid growth of need to leverage on technology to CapitaLand Group of Companies and technology over the years, the pace improve operating efficiencies and within the Business Units. With the of change and of conducting business effectiveness. Formed in January completion of the Group’s “Capital E will continue to increase. The way 2001, the InfoNet Division, reviews Masterplan”, several initiatives were ahead for the Group is to work the way CapitaLand operates and implemented. They included: towards e-enabling more of its leverages on technology and the existing business processes with the internet to streamline work processes, •‘Sell Solutions’ – Customer goal of seamlessly integrating these improve productivity and lower Relationship Management systems in various e-work processes to its operating cost. the hospitality and residential SBUs. customers and business partners.

The five key areas reviewed were: •‘Buy Solutions’ – ‘e’ procurement systems for some of its construction • The way we sell – aimed at improving requirements, stationery, F&B and the way the Group interacts with its selected MRO items. potential and existing customers. •‘Build’ Solutions – pilot trials of the • The way we buy – aimed at icFox project collaboration and e- improving the Group’s procurement tendering systems were done in the processes. residential and commercial business units. Full scale implementation is • The way we build – aimed at scheduled for 2002. improving the Group’s project management processes. •‘Planning Solutions’ – a group-wide HR information system and a Group- • The way we plan – aimed at wide financial reporting and consoli- improving the Group’s planning and dation system were implemented. administrative processes. •‘Asset Management Solutions’ – • The way we asset manage – aimed Condominium management portals at improving the way the Group were implemented for completed manages its properties. residential developments and similar portals were piloted for commercial and industrial assets.

“The way ahead for the Group is to work towards seamlessly integrating its various e-work processes to its customers and business partners.” AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 21

BUILDING FOR LASTING VALUE COST MANAGEMENT

COST MANAGEMENT 21

One of the main drivers for the merger At the beginning of the year, the e-procurement portals such as PAGE and formation of CapitaLand in 2000 Division identified the following as key HospitalityBex and icFox. was the creation of shareholders’ components to achieving its goal: value through synergy of operations. Looking ahead The Synergistic Cost Management • Bulk procurement The Division is greatly encouraged Division (SCMD) was established to • HR re-organisation by the strong commitment of coordinate and steer the Group’s • Cost of conducting business the Management and the active efforts in this direction, and has since • Space allocation and utilisation participation of the executives achieved significant milestones by • Lower cost of capital involved in ensuring the success of capitalising on the Group’s economies • Review of overseas office operation the programme. SCMD will continue to of scale. The division also promoted reach out to all CapitaLand personnel, e-procurement to achieve Bulk procurement bringing more value-added services to considerable cost savings. In particular, SCMD identified bulk their existing operations. procurement of operational and For 2001, SCMD exceeded its initial functional needs as the first main Drawing on the strength and target by S$5 million and posted areas of synergy. This is further sub- experience gained from its VPU S$35 million in audited savings, divided into more than 10 broad operations, and having established a amidst the cutback on spending categories to explore further savings systematic methodology, SCMD aims due to the economic downturn. The potential. More than 50 SBU managers to take this synergy to even greater savings are audited by an external and executives have been appointed heights. It has already initiated a panel of reputable international as Virtual Procurement Unit (VPU) Global Procurement Programme, consultants and benchmarked representatives to these areas of which will be further developed in year against industry standards. procurement, hence allowing SCMD to 2002. This will bring more synergy build up a systematic link of operations and an increased awareness to SCMD criteria across all SBUs. cost-saving efforts across all overseas SCMD has adopted the following CapitaLand companies. criteria to facilitate smooth Spearheaded and facilitated by SCMD, implementation of its projects across the VPUs have explored and embarked SCMD has set itself a target of the SBUs: on more than 20 Group-wide initiatives S$50 million in savings for year 2002, within the year. VPU representatives through the rollout of ambitious • Fair and equitable transactions for all also shared information and cost-saving initiatives such as the SBUs – with no inter-SBU subsidy experiences to further improve and Energy Programme. SCMD is streamline their business operations. confident that with the on-going • Best value ensured – by seeking out In addition, all SBUs examined their support and endorsement by the the lowest possible cost for the internal processes and reduced various SBUs, it will continue to highest possible quality duplication of work functions, resulting deliver operational excellence in leaner operations. Leveraging on through the synergy of best practices • Minimum interference to existing IT and the Internet, the Group also in systems and processes for operations – adhering to the same achieved absolute cost savings CapitaLand, thereby providing lasting procurement pattern for all SBUs and process efficiency through value to shareholders.

“One of the main drivers for the merger and formation of CapitaLand in 2000 was the creation of continual shareholders’ value through synergy of operations.” AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 22

CAPITALAND ANNUAL REPORT 2001 GROUP STRUCTURE

22 GROUP STRUCTURE PAGE PAGE

Board of Directors

CapitaLand Liew Mun Leong President & CEO

Properties Hospitality Property Services

CapitaLand CapitaLand Raffles The Ascott PREMAS CapitaLand pFission Commercial Residential Holdings Group International Financial Group Hiew Tham Richard Kee Anthony Hiew Martin Yoon Khong Kui Seng Helfer Teck Koon Seah Yoon Khong Tan CEO CEO President & CEO CEO CEO CEO Managing Director AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 23

BUILDING FOR LASTING VALUE COUNCIL OF CEOS

COUNCIL OF CEOS 23 PAGE PAGE

LIEW MUN LEONG LUI CHONG CHEE Liew Mun Leong President & CEO Lui Chong Chee Chief Financial Officer (wef 1 Nov 2001)

in alphabetical order:

RICHARD HELFER Richard Helfer President & CEO Raffles Holdings Group HIEW YOON KHONG Hiew Yoon Khong CEO CapitaLand Commercial (wef 1 Feb 2002) CEO CapitaLand Financial (wef 1 Nov 2001) Chief Financial Officer CapitaLand ANTHONY SEAH KEE TECK KOON (until 31 Oct 2001) Kee Teck Koon CEO ED NG The Ascott Group Ed Ng Executive Vice President CapitaLand (wef 1 Feb 2002) CEO CapitaLand Commercial (until 31 Jan 2002)

MARTIN TAN MARTIN Anthony Seah CEO PREMAS International

THAM KUI SENG Martin Tan Managing Director pFission Tham Kui Seng CEO CapitaLand Residential AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 24

CAPITALAND ANNUAL REPORT 2001 COMMERCIAL & FINANCIAL 24 PAGE PAGE Commercial & Financial*

CapitaLand Commercial is Singapore’s market leader in the office and retail sectors. Overseas, it has commercial property investments in key gateway cities, including London, Tokyo, Shanghai, Hong Kong, and Kuala Lumpur. CapitaLand Financial leverages on the Group’s real estate domain knowledge and financial skills to embark on the property-related financial product business and the provision of fee-based services.

* CapitaLand announced in January 2002 that CapitaLand Fund Management will be merged with CapitaLand Financial. The new merged entity has been named CapitaLand Financial. AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 25

BUILDING FOR LASTING VALUE COMMERCIAL & FINANCIAL

CapitaLand Commercial has a Turnover optimise property returns from

combined management portfolio of for the year 2001 investment properties and generate 25

10.9 million square feet of net lettable 1% greater returns for shareholders.

area in Singapore and a strategic Total: S$489 million PAGE

presence internationally. 31% 38% Office Singapore-based office and retail Retail properties accounted for a hefty 80% Industrial The Company seeks to build lasting Overseas of EBIT contributions. About 12% value for stakeholders through active Others came from overseas properties which and disciplined asset management saw an improvement of nearly two 10% of its commercial property portfolio. fold in 2001 as compared to 2000. Its commitment to service excellence 20% The increase is due to the better also positions it well to realise its vision performance of Pidemco Tower in – to transform commercial properties Earnings before interest and tax Shanghai, Menara Citibank building into living communities – thereby (“EBIT”) was S$385 million, a growth in Malaysia and contribution from the creating loyal customers which will of 44% or S$117 million over the newly acquired Shinjuku Square Tower result ultimately in higher retention previous year due mainly to gains in Japan. rates, increased yields and therefore from divestments and investments. greater value. In this regard, it has put The Company divested a total of 12 The Company’s improved EBIT in place several initiatives to better properties/investments which yielded was also due to lower revaluation serve customers. These include setting profits of S$125 million. deficits of S$0.5 million charged up a 24-hour Customer Hub that to the bottom line in 2001 as offers a one point of contact for all In Singapore, the divestment included compared to the previous year’s customer enquiries, re-design of key three prime properties in the central S$69 milllion. internal customer service processes business district (“CBD”) – Pidemco and a tailored customer service staff Centre, The Adelphi, and a 20% stake CapitaLand Financial made a training programme. in Temasek Tower – through the Eureka S$13 million maiden contribution Office Fund, a 50% – 50% joint venture which constituted about 3% of total Financial summary with ERGO Insurance Group, one of EBIT for 2001. The Group’s turnover grew by 13% Germany’s largest insurance groups. to S$489 million. This was due mainly Also sold during the year were other EBIT to higher rental income from Capital investments and fringe assets namely, for the year 2001

Tower in Singapore based on a full Thomson Plaza, 11 Beach Road, 5% year’s contribution and its near 100% 79 Anson Road, Little India Arcade 3% Total: S$385 million 12% occupancy at year end. Overseas, and Laguna Golf & Country Club. Office higher contributions were also received Retail from the prime Canary Riverside Overseas, prime office development Overseas 15% Financial development in the United Kingdom. 131 Finsbury Pavement, a nine-storey Others

Its holding company became a building located in the City of London’s 65% subsidiary of the Group in the fourth financial district, was sold in line with quarter of 2000. the Company’s divestment strategy to AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 26

CAPITALAND ANNUAL REPORT 2001 COMMERCIAL & FINANCIAL

Office spearheaded by a multi-disciplinary Retail

26 Market review The office market team in order to cement the Company’s Market review Due to cautious performed reasonably well in 2001, commitment to providing top quality consumer spending, the retail

PAGE PAGE although increased demand from customer service. industry could not match its strong professional service firms and foreign growth in 2000. GDP is expected to financial institutions was offset by lower Meanwhile, asset enhancement works contract by 3% while monthly retail demand from technology companies at Six Battery Road proceeded as sales index (excluding motor vehicles) and local financial institutions. Office planned. When completed in mid- has shown little or negative growth, occupancies averaged 89% with those 2002, the upgraded asset will provide when compared year on year since in the CBD achieving 94%. Prime office improved yields. Plans are also January 2001. The tourist industry also rentals hovered around S$6.30 per being reviewed for the redevelopment showed signs of decline. square foot per month, down 16% of Pidemco Centre in order to from the previous year. maximise returns. Occupancy rates island-wide and along Orchard Road remained largely Business review CapitaLand Capital Tower, officially launched unchanged at 92%, compared to Commercial is the largest owner and during the year, won the Building and last year’s 96%. However, supply manager of office space in Singapore. Construction Authority’s prestigious constraints greatly improved monthly Its 19 office properties and two car “Best Buildable Design Award” for prime rates by almost 4% at park complexes, comprising 5 million Commercial and Office Buildings. S$27 per square foot in the suburbs, square feet of net lettable area, are and by 3% at S$31 per square foot in mostly located in the CBD. In 2001, Looking ahead Increased supply of Orchard Road. 19% of leases were renewed with secondary office space resulting from occupancies remaining in the healthy the mergers of financial institutions Business review CapitaLand range of 96%, a premium of 8% above and the downsizing of companies in Commercial’s retail properties the industry average. Capital values the financial, IT and other industries performed satisfactorily despite were at an average of S$1,260 per will exert downward pressure on the difficult business environment. square foot, above the S$1,240 per the market’s occupancy rates and The Company’s portfolio achieved square foot set for the market. Rental rentals. New supply in 2002, located capital values of S$1,161 per square values were slightly above market at mainly outside of the CBD, is projected foot. Suburban malls performed S$6.45 per square foot per month. to be 3.72 million square feet. better than Orchard Road malls due to their greater resilience to the During the year, active asset The Company will continue to current downturn. management and the Group’s focus on maximising the yield of its commitment to serve its customers portfolio through effective asset Rentals of S$32 per square foot per better saw several initiatives: the management and stringent cost month, above the market’s S$26 per exploration into bulk purchases of management to realise savings square foot per month, were secured energy to exploit economies of scale; through economies of scale. Its for suburban malls. Orchard Road amplification of professional services; portfolio yield is anticipated to be malls saw rentals of S$20 per square and a review of internal customer steady with pro-active initiatives to foot per month, below the market’s service processes. Each initiative was increase non-rental income. S$30 per square foot per month.

“In 2001, 19% of (office) leases were renewed with occupancies remaining in the healthy range of 96%, a premium of 8% above the industry average.” AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 27

BUILDING FOR LASTING VALUE COMMERCIAL & FINANCIAL

Demonstrating the resilience of Looking ahead Retailers now these new sources of revenue will

suburban malls in difficult times, face challenging times due to the become apparent on the Company’s 27 Tampines Mall secured their leases erosion of consumer confidence turnover figures.

due for renewal this year at an during the downturn and the PAGE average increase of over 20% over slowdown in visitor arrivals. In the Industrial previous rates. Full occupancy was first half of 2002, overall sentiments Market review Demand for quality also maintained. are not expected to improve. industrial space remained strong However, there is likely to be support despite the economic slowdown due Rental growth in Plaza Singapura, from those looking beyond the current to the government’s push towards a however, will be suppressed recession and who will take advantage knowledge-based economy. Average at least in the short-term, until of the weaker market sentiment to monthly rent for high-tech space completion of its asset enhancement acquire prime retail space that has reached S$2.60 per square foot while and the opening of the adjoining become more affordable. that for ground floor conventional Dhoby Ghaut North East Interchange space and upper floor space MRT Station. Nonetheless, the The majority of retailers are expected was S$1.40 and S$1.15 per square occupancy rate for the mall increased to cut back their expansionary or foot respectively. Occupancy for marginally from 96% the previous year market entry plans. The downward high-tech space averaged 88% as to 97%. pressure on rents is likely to be felt compared to conventional space, more in the Orchard Road area rather which achieved 90%. Clarke Quay’s redevelopment than the suburban areas. Suburban plans were reviewed. Rentals should rents are more resilient as the retailers Business review CapitaLand remain stable until completion of its are still trading relatively well due to Commercial owns five industrial redevelopment. Meanwhile, the the attractive pricing and range of properties comprising about occupancy rate also remained largely merchandise offered in these malls. 3.7 million square foot of net lettable unchanged at 84%. The Company’s portfolio will also area for lease. Occupancies were benefit from the recent inclusion of similar to the market’s 88%. Capital In a move that made it the Junction 8 and Funan The IT Mall, in values ranged from S$195 to S$250 largest manager of retail space in December 2001. Both malls are fully per square foot for 60-year lease Singapore, Capitaland Commercial occupied and have a track record of properties. Rental values were S$2.53 acquired a total of seven management good performance. per square foot per month. Both were contracts. This comprised four slightly lower than the market’s capital major Singapore retail centres The Company will continue to values range of $220 to S$300 per (prime suburban mall, Junction 8; focus on active and disciplined asset square foot and rentals of S$2.60 per Singapore’s largest specialist IT Mall, management to sustain occupancy square foot per month. Funan The IT Mall; Liang Court and as well as to implement several asset Scotts Shopping Centre), a fifth, in enhancement initiatives. In addition, Earlier in the year, CapitaLand Penang, Malaysia (Gurney Plaza) the Company has identified various Commercial launched the sale of and two in China (The Exchange non-rental income streams such strata units for Ubi Techpark and and The Metropolis), which are as advertising income. When fully successfully sold 217 units. under development. developed in 2002, the impact of TechnoPark@Chai Chee proceeded

“Suburban malls performed better than Orchard Road malls due to their greater resilience to the downturn.” AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 28

CAPITALAND ANNUAL REPORT 2001 COMMERCIAL & FINANCIAL

with upgrading and landscaping works, and a gateway city to Europe. remains committed to expanding its

28 which will continue into the next year. Its strong market fundamentals and portfolio in Japan. Its newly-established web portal will the low interest rate environment

PAGE PAGE offer tenants value-added services present attractive investment China Despite intense competition, and information. opportunities which the Company office rentals and occupancy in key will actively explore. cities posted significant recovery Looking ahead The manufacturing from 2000. In Shanghai, prime slowdown is bottoming and demand More than 90% of residential grade-A office building, Pidemco for quality industrial space is expected apartments in the Canary Riverside Tower’s occupancy rose from 78% at to increase in the second half. project have been sold. Its health club, the beginning of the year to 88% by restaurant space, and the Four end 2001. Rental income also surged In its ongoing efforts to augment rental Seasons Hotel Canary Wharf are also 147% from that of 2000. Raffles values and meet changing market fully operational. The Company also Square, a strategically-located prime demands, CapitaLand Commercial will divested its office project, 131 Finsbury mixed development in Shanghai, conduct feasibility studies on enhancing Pavement, for about S$125 million and commenced construction in October, features such as car parks, and may recorded a gain of S$29 million. and should be completed by end- also reposition its industrial properties. 2003. Marketing of the retail space These efforts are likely to strengthen its Looking ahead, 25 Moorgate, the has begun. position as a major player in industrial Company’s joint venture office project properties and to leverage on growth with Grosvenor Limited, is progressing In Xiamen’s new business district, its prospects when the economy takes a well, with project completion targeted prime mixed development, Huiteng turn for the better. for late 2002. Marketing of the office Metropolis, experienced highly space has commenced. respectable sales of 74% and 54% for International residential and office units respectively. CapitaLand Commercial’s international Japan Japan’s property sector To date, 32% of the office units have portfolio performed well despite the experienced lower demand for both been leased for rental. challenging global economic commercial space and residential environment following the September 11 sales. Nevertheless, the successful China’s entry into the World Trade attacks in the United States. It achieved listings of two J-REITs in September Organisation presents further attractive this by focusing on investment grade augmented interest in Japanese business opportunities in the future. office properties in gateway cities and commercial properties. In particular, To capitalise on this, the Company creating value through active asset and the Company’s investment in Shinjuku has established a representative office property management. Country offices Square Tower outperformed the in Beijing. were established in gateway cities for market, achieving near full occupancy. greater market responsiveness and to Hong Kong Although business activity exploit investment opportunities. Going forward, the Japan property was disrupted after the September 11 sector shows potential with the terrorist attacks, demolition of the United Kingdom Amid the weakened continued low interest environment strategically located Furama Hotel site property market, London maintains its and improving transparency through proceeded as scheduled. The prime position as a global financial centre the J-REIT market. The Company site will be developed into a grade-A

“Country offices were established in gateway cities for greater market responsiveness and to exploit investment opportunities.” AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 29

BUILDING FOR LASTING VALUE COMMERCIAL & FINANCIAL

office building by 2005. On the CapitaLand Financial possesses diversified income

industrial front, occupancy of the CapitaLand Financial aims to enhance characteristics namely, steady 29 22-storey high-tech industrial building, the Group’s financial capabilities to rental income from the fully-leased

Corporation Park, rose from 82% in the drive its asset-light strategy as well as Temasek Tower, redevelopment PAGE previous year to 91%. to spearhead efforts in creating a fee- upside from Pidemco Centre, based business. and sales income from The Adelphi. While prices of grade-A office The portfolio therefore delivers a space decreased by 6%, interest in The Company will focus on the unique, balanced risk-return profile grade-B office space remained financial product business as well as to investors. This fund, which is relatively strong, where yields are real estate fund management. It would managed by CapitaLand Financial, higher. Overall, demand has been soft initially leverage on the Group’s real will also leverage on CapitaLand and the market uncertain. estate portfolio to structure them into Commercial’s core competencies financial products. One example is the such as asset management, marketing Moving forward, the Company will SingMall Property Trust (“SPT”), which and leasing, project development continue to look out for good comprises a portfolio of three shopping and property management. opportunities. malls – Tampines Mall, Junction 8, and Funan The IT Mall. The company is Malaysia The office take-up rate for working on a possible listing of the SPT prime grade-A buildings decreased on the Singapore Stock Exchange. from that in 2000. However, at Menara Citibank, the Company’s 50-storey The Company will retain the asset and grade-A building in Kuala Lumpur’s property management function after Golden Triangle, occupancy leaped the listing. The Company will also from 88% to 98%, and rental rate identify and invest in real estate-related increased by 3%. financial product opportunities in regional markets where CapitaLand For the coming year, the building’s has a presence. occupancy growth is expected to remain stable though the overall office On fund management, during the market take-up rate for 2002 is year, together with leading European likely to soften. company, ERGO Insurance Group, it created a wholesale office property Non-core activities fund worth S$875 million. The property Non-core investments like healthcare fund comprises three prime office chains, Parkway Holdings and VISTA properties – Temasek Tower, Pidemco Healthcare Asia, and hotel investments Centre and The Adelphi. Named the in Vietnam, Myanmar and China, were Eureka Office Fund, it is the first also sold. The sales are in step with the Singapore-dollar denominated fund Company’s strategy to divest non-core involving both European and Asian investments and fringe assets. institutional investors. Its portfolio

“CapitaLand Financial aims to enhance the Group’s financial capabilities to drive its asset-light strategy as well as to spearhead efforts in creating a fee-based business.” AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 30

CAPITALAND ANNUAL REPORT 2001 RESIDENTIAL 30 PAGE PAGE

Residential

CapitaLand Residential seeks to enhance its leadership in the residential property industry through building and delivering homes that offer lasting value, with an emphasis on product leadership and continual innovation. It aims to create comfortable living environments and intelligent e-lifestyle residences for its homebuyers – homes which they can live, work and play in. AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 31

BUILDING FOR LASTING VALUE COMMERCIALRESIDENTIAL & FUND MANAGEMENT

Committed to developing premier, to the provision made for Singapore (TOP) were obtained for Central

high quality residences for its projects and landbank as well as its Grove and The Clearwater. 31 customers, CapitaLand Residential’s Hong Kong projects.

homes are beautifully designed with Sale of new projects PAGE thoughtful features and cater towards Business review Projects Total No. of the various lifestyles in gateway cities CapitaLand Residential continued launched no. of units sold % sold across the region. Among its quality to make strides in its key regional in 2001 units in 2001 in 2001 residential properties are Avalon, markets, namely, Singapore, China Tanamera Crest 288 288 100 The Levelz and SunGlade in (Shanghai) and Australia. In 2001, it SunGlade 475 392 83 Singapore; Chrysanthemum Park in sold a total of 6,780 residential units The Levelz 126 95 75 Shanghai, China and Woodcroft and and housing lots. Balmain Shores in Australia. In 2001, CapitaLand Residential Sale in Key markets No. of units/lots sold in 2001 made provisions amounting to Financial summary S$500.3 million for Singapore Singapore 1,223 The Company recorded a turnover of residential assets. S$2,005.8 million for 2001, a 19% China (Shanghai) 1,412 Australia 4,145 increase over the prior year’s turnover CapitaLand also launched a of S$1,689.8 million. EBIT (Earnings Total units/lots 6,780 S$200 million 6-year bond issue Before Interest and Tax) was a collaterised by progress payments negative $340.8 million, representing a Singapore The year saw a slowdown generated by three residential decrease of $530.2 million compared in the residential property market, due development projects. This to the prior year. This was mainly due mainly to the global economic securitisation bond, which was slowdown and general weak market internationally rated, was the first of Revenue Distribution by Country ($m) sentiments. The September 11 its kind in Singapore. The issue allows terrorist attacks in the United States the replacement of projects, making it 2500 further dampened the overall possible to capitalise on prevailing low economic outlook. interest rates to tap long-term funds. 2,005.8 2000

1,689.8 Despite the uncertain economic China China continued to show

1500 environment, CapitaLand Residential’s strong growth during the year. new projects – Tanamera Crest, Its entry into the World Trade 1,167.1 SunGlade, The Levelz – met with Organisation served as an impetus 1000 925.3 excellent response from homebuyers. for the strong economic performance. SunGlade was the bestseller in 579.9 551.1 500 Singapore for the second quarter Shanghai, in particular, is one of the 287.6 184.6 of the year, while Tanamera Crest fastest growing residential markets in was fully sold within three weeks China with the largest volume of 0 Singapore China/Hong Kong Australia Total of its relaunch. During the year, transactions recorded in 2001

Actual 2000 Actual 2001 Temporary Occupational Permits compared to other cities. Pro-home

“CapitaLand Residential recorded a turnover of S$2,005.8 million for 2001, a 19% increase over the prior year.” AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 32

CAPITALAND ANNUAL REPORT 2001 RESIDENTIAL

ownership government policies and take-up of 94% following its launch in incurred during the period, which

32 financial packages, together with June 2001. offset 37.3% increase in the Group’s increased disposable income of the underlying profitability.

PAGE PAGE homebuyers, have contributed greatly In addition, CapitaLand acquired a to CapitaLand’s success in China 23,000 square metre site in the Xuhui Residential sales by type of during the year. district during the year. Conveniently development located near the Xujiahui shopping Type of development Sales by unit for 2001 CapitaLand’s Shanghai residential and commercial hub, the site will be projects continued to flourish. developed into a quality condominium Land lots 2,187 Parkville and Springdale Garden project comprising about 800 Houses 883 achieved sales of 98% and 91% apartments, with a full range of Apartments 1,075 respectively while Chrysanthemum facilities. Residents will be able Park Phase I was fully sold. During to commute easily via the nearby Strong contributions were seen the year, about 1,000 units were MRT station. from Land & Housing projects in completed and handed over to Melbourne and Sydney. Both the the homebuyers. In Hong Kong, average occupancy Apartments Division and Commercial for Block 15 Hong Kong Parkview & Industrial Division recorded Sale by property increased to 97% for the year significantly higher revenue as compared to 86% the prior year. compared to the prior year, reflecting No. of % sold Total no. units sold as at end Average rental maintained at about an increase in sales and construction Project of units in 2001 2001 the same level as the prior year. activities. About 245,900 square metres of commercial and industrial Parkville 1,001 381 98 space was developed or leased Springdale 805 143 91 Australia The Australian property during the year. Garden market remained steady with a Manhattan 254 238 94 marked improvement in consumer Malaysia Listed associate company, Heights sentiment, although the introduction United Malayan Land, achieved higher Summit 939 650 84* of the Goods and Services Tax in sales during the year for its two key Panorama* (773 units July 2000 has somewhat affected launched) developers’ margins. township developments in Bandar Seri Alam and Bandar Seri Putra. (*Sales status of units launched) CapitaLand’s listed subsidiary in Bandar Seri Alam, a 3,700 acre Australia – Australand Holdings, township in Johor, achieved sales of New releases, including Summit reported a 35% increase in revenue 441 units during the year, a 100% Panorama in Pudong district and to A$1,252.8 million. Profit after tax increase over the prior year. The Manhattan Heights in Jingan district, was A$81.4 million compared to township has sold 82% of 4,024 units have also recorded encouraging sales. A$78.1 million for the previous year. launched as at end 2001. In Bandar As at end 2001, Summit Panorama The operating profit before tax of Seri Putra, a 900 acre township in achieved 84% sales of units released A$114.9 million reflects substantial Bangi Selangor, a total of 643 units whilst Manhattan Heights saw strong GST charges of $50.1 million, were sold, 50% more than the prior AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 33

BUILDING FOR LASTING VALUE RESIDENTIAL

year. The township recorded 83% and Manhattan Heights. In the

sales of 2,683 units launched as at second half of 2002, between 1,000 33 end 2001. to 1,500 residential units are planned

for release in China. PAGE Suasana Sentral, CapitaLand Residential’s other residential Australia’s economic outlook is development in Kuala Lumpur, did expected to remain stable. Compared well amidst weak general market to the prior year, Australand Holdings sentiments. More than 90% of the is expected to perform better in 2002. 400-unit condominium was sold Most of Australand’s residential and the development was completed projects are likely to be assisted by a in January 2002. favourable supply/demand regime underpinned by the low interest rate Japan In Tokyo, CapitaLand environment. Residential was successful in its first joint venture with Mitsubishi Estate. Earning contributions are also The 62-unit condominium, Parkhouse expected from the Company’s Yoyogi-Uehara, was fully sold during projects with United Malayan Land the year and construction was in Malaysia. completed in June 2001. CapitaLand Residential will continue to Looking ahead focus on building and delivering quality The operating environment for the homes, tapping on the knowledge and Singapore residential market will expertise of its operations worldwide. remain challenging in 2002. Nevertheless, the Company’s revenue will be underpinned by the three projects – Tanamera Crest, SunGlade and The Levelz – launched in 2001, all of which were well-received. CapitaLand Residential is planning to launch between 800 to 1,000 units in 2002.

Continued earnings are expected from China, Australia and Malaysia. In particular, Shanghai’s continued positive environment should see contributions from Summit Panorama

“CapitaLand Residential will continue to focus on building and delivering quality homes, tapping on the knowledge and expertise of its operations worldwide.” AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 34

CAPITALAND ANNUAL REPORT 2001 SERVICED RESIDENCES 34 PAGE PAGE Serviced Residences

The Ascott Group, CapitaLand’s serviced residence arm, is Asia Pacific’s largest serviced residence company. It manages a portfolio of 7,600 serviced residence units in 19 cities in 10 countries across Asia, Australasia and the United Kingdom. Its The Ascott and Somerset serviced residence brands are market leaders in the region. AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 35

BUILDING FOR LASTING VALUE SERVICED RESIDENCES

In 2001, The Ascott Group focused on S$38.3 million due to provisions residence chains. The company’s

strengthening the fundamentals critical and the Company’s decision to exit significant presence today in Sydney 35 to supporting its rapid growth as a the sector. and Melbourne provides a solid

global company. Ascott made good foundation for sustained revenue PAGE progress in rationalising its portfolio of The company’s S$41 million growth in Australasia. assets, enhancing its financial position exceptional gain was due to the sale and in solidifying its competitive of its retail malls, an investment In the United Kingdom, Ascott’s leadership in key regions. property, and retail management joint venture with developer Crown contracts; offset by provisions for Dilmun has made it the largest Financial summary various projects and loans. international serviced residence chain The success of Ascott’s initiatives there with 783 units. It targets to grow was evident in its 2001 financial The company’s financial position was to 2,500 units by 2005 to further performance. It recorded a 20% substantially strengthened in 2001 with enhance its leadership. increase in earnings. Profits rose to the divestment of 54% of its non-core S$41.2 million from S$34.3 million the assets worth S$628.5 million. The sales The company’s operational base in year before. proceeds were used to lower its gearing London, where it now commands 12% to 0.52 from 0.79 the year before. market share, will serve as an excellent The company’s turnover was springboard for its planned expansion S$282.1 million, down 5%, due to the Earnings per share rose to 2.66 cents into other major European cities. winding down of non-core businesses. from 2.22 cents in 2000. Net tangible In its core serviced residence sector, assets per share was 75.5 cents In China, it more than doubled its it chalked up a robust 15% growth in compared to 83.1 cents the prior year, presence with the opening of The turnover to S$139 million. due to diminution in value in some of Ascott Beijing, Somerset Fortune its properties. Garden, and The Ascott Pudong. Ascott’s serviced residence EBITDA Today, as the largest international rose 17% to S$40.5 million mainly due In view of its better performance serviced residence chain in China, the to the residences’ strong performance and stronger balance sheet, Ascott’s company is poised to capitalise on the in the first three quarters of the year. directors are recommending a total growth of this major market. gross dividend of 10% per share, Most of Ascott’s residences continued which includes a 5% bonus dividend. In Japan, Ascott established a strategic to outperform their markets. They partnership with Mitsubishi Estate, one achieved higher occupancies, rental Growing leadership In 2001, Ascott of the country’s largest developers, to rates and gross operating profit added 1,900 units to its portfolio, jointly invest in and manage serviced margins compared to the year before. which is today the Asia Pacific’s residences in Japan. In the next two This was despite the September 11 largest at 7,600 units. Its vision is to years, Ascott plans to expand its North crisis and deduction of one-time costs become a leader in the global serviced Asian presence to include Korea. for Ascott’s expansion into Australia residence industry and it targets to and the United Kingdom. grow to 15,000 serviced residence In Southeast Asia, the company units by 2005. opened the Somerset Lake Point in Ascott’s non-core retail turnover rose Bangkok and Somerset Gateway in 6% to S$82.8 million, while EBITDA In Australia, it acquired the Oakford Kuching. Today Ascott has captured increased 11% to S$57.3 million. group, an established serviced pole positions in Hanoi, Ho Chi Minh Turnover of its non-core ‘residential apartment operator, to become one City, Bangkok, Manila, Jakarta and and others’ sector decreased by of Australasia’s top three serviced Singapore. In 2002, it will work to

“Ascott’s operational base in London, where it now commands 12% market share, will serve as an excellent springboard for its planned expansion into other major European cities.” AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 36

CAPITALAND ANNUAL REPORT 2001 SERVICED RESIDENCES

further increase its industry leadership To improve capital productivity, Operating performance On a same

36 in the region. Ascott secured three more serviced store basis, the average occupancy of residence management contracts with Ascott’s serviced residences rose by

PAGE PAGE Within the organisation, Ascott 748 units in Melbourne, Singapore 5%. At the same time, the residences’ continued to streamline its HR and Surabaya. average rental rate went up by 1%. programmes, strengthen The Ascott The gross operating profit margin of Training Institute and implement the Together with the management the serviced residences improved by Balanced Scorecard results-driven contracts secured as part of its 3% to 62%. management system. expansion in Australia and the United Kingdom, it has exceeded its target of In 2001, a number of Ascott’s Through these means, the company creating a portfolio comprising one-third properties in Beijing, Shanghai, aims to empower its staff to exceed managed or leased properties, by 2005. Bangkok and Kuching were in their guests’ expectations, and to nurture Over the year, it will continue efforts to start-up phases. The company expects in them a passion to transform its increase its managed fee income. properties into highly efficient and Geographic Distribution profitable operations. Growing global brands While the (in terms of no. of units in each country) September 11 crisis dampened its 10% 11% Building financial strength In line earnings in a few countries, the majority Total: 7,585 units 4% with its strategy to focus on its core of its properties in other countries were 6% Singapore 9% operations, Ascott will divest its relatively unaffected. Malaysia Indonesia remaining S$600 million non-core 17% Thailand assets over the next two years. This was partly due to its growing Philippines brand reputation, marketing network 18% Vietnam Today, the company is well positioned and geographical diversification. In China 14% Australia 7% to take advantage of investment 2001, it launched a major brand 4% New Zealand opportunities to further grow its core campaign across the Asia Pacific to United Kingdom serviced residence business. The deepen its penetration of the expatriate economic slowdown offers the and business communities. potential of good value acquisitions. Serviced Residences It also centralised its sales and marketing Owned/Leased/Third party management With its expansion in Australia and the operations at both corporate and United Kingdom, Ascott has also regional centres to improve its response 34% increased its allocation in developed time and cross selling to these clients. Owned countries to one-third of its overall Leased/Third Party Management portfolio. It plans to grow this Today, Ascott’s customer base allocation to two-thirds of its portfolio comprises many of the world’s largest by 2005, as yields in these countries multinational companies. Going provide a more stable and diversified forward, it will work to further deepen 66% earnings base. its relationship with these companies.

“Today, Ascott’s customer base comprises many of the world’s largest multinational companies. Going forward, it will work to further deepen its relationship with these companies.” AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 37

BUILDING FOR LASTING VALUE SERVICED RESIDENCES

its overall occupancy and rental rates to Operating Margins Operating Margins improve in 2002 when the operations of – all serviced residences – same store basis 37 such start-ups stabilise.

% % PAGE 80 80 Looking ahead Ascott expects 2002 to be profitable 70 70 62 60 59 59 and its core serviced residence 60 60 business to continue to improve with strong revenue growth. 50 50 42 40 40 40 39 40 Earnings will be boosted by maiden contributions from the new Australian 30 30

and UK serviced residences, and by 20 20 the improved performance and full- year contributions from properties 10 10

opened in 2001. 0 0 GOP Margin EBITDA Margin GOP Margin EBITDA Margin

The increased savings from its 2001 2000 2001 2000 ongoing clustering of property operations, stepped-up marketing efforts and larger client base will further enhance its bottomline. It also Operating Performance Operating Performance expects to benefit from the low – all serviced residences – same store basis interest rate environment. +21% -6% +9% +13% S$ S$ 200 200 The Ascott Group today has a more 168 competitive global platform and solid 152 balance sheet. Its core serviced 150 150 139 139 residence portfolio, the primary engine 124 110 110 for its future growth, is larger, more 103 diversified and resilient. 100 100

As the Company looks ahead, it is confident of its stronger position to 50 50 drive higher returns and create long term value for its shareholders. It sees 0 0 bright prospects for its serviced Revenue (S$m) Revpar Revenue (S$m) Revpar residence business. 2001 2000 2001 2000 AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 38

CAPITALAND ANNUAL REPORT 2001 HOTELS 38 PAGE PAGE

Hotels

As a leading luxury hotel and resort owner/operator headquartered in Singapore, Raffles Holdings Limited has a portfolio of 38 hotels and resorts in 33 destinations across six continents. Its hotel management arm – Raffles International – is well-respected in the industry for its standards of quality, award-winning concepts and innovative approach towards hotel management. AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 39

BUILDING FOR LASTING VALUE HOTELS

Raffles International successfully S$230.9 million in 2001, due mainly to The launch of THOS SB RAFFLES, the

leverages on its two-tiered brand the net gain recognised from the 55% incubator enterprise at the Raffles Hotel 39 structure: the “Raffles brand” hotels Tincel Properties divestment. shopping arcade, will further promote

distinguish themselves by the highest the Raffles International master brand PAGE standards of products and services Performance review through premium private label lifestyle available in major cities on an The slower economic growth, products such as exclusive wines and international level; while the “Swissotel” accentuated by the September terrorist Iranian caviar. By mid 2002, THOS SB and “Merchant Court” hotels offer quality attacks, has adversely affected the hotel products will be available to Raffles accommodation and the full range of industry globally. Average industry International’s guests system-wide modern facilities and amenities expected revenue per available room (“RevPAR”) through its convenience shopping by today’s discerning traveller, with an fell across the board worldwide. In line programme. THOS SB is the latest emphasis on quality and comfort. with the industry performance, Raffles addition to Raffles International’s tested Holdings recorded weaker operating signature concepts, which have been Synonymous with unsurpassed service performance particularly in the second exported to Raffles International’s hotels and elegance, the Raffles tier of hotels half. Despite difficult market conditions, across the globe. These revenue- includes prestigious names like Raffles Raffles Holdings continued to perform generating initiatives include Amrita Hotel in Singapore, Brown’s Hotel in well relative to its competitive sets in Spa, Asia’s largest luxury spa operator; London, Hotel Vier Jahreszeiten in terms of RevPAR in the various markets. and food and beverage concepts such Hamburg, Le Montreux Palace in as Doc Cheng’s, Jaan and Equinox. Switzerland, Hotel Le Royal in Phnom In response to the continued economic Penh, Raffles L’Ermitage Beverly Hills in slowdown and uncertainties, Raffles Looking ahead Los Angeles, and Grand Hotel d’Angkor Holdings has taken steps to reduce Amidst current economic conditions, in Siem Reap. Swissotel and Merchant costs, including labour and overheads. Raffles Holdings continues to set Court Hotels are ideally located in In addition, the Company will defer itself challenging goals – by 2005, it gateway cities around the world. certain capital expenditure and refocus aims to be among the top 10 global its sales and marketing efforts to the luxury/deluxe hotel master brands, and Financial summary expansion of its global sales and to increase its current room inventory For the year ended 31 December distribution channels and networks, the to 25,000 rooms. It has taken another 2001, Raffles Holdings Limited development of global key accounts step in reaching this goal on 1 January achieved a turnover of S$358.6 million, and its customer relationship and 2002, when Raffles International a 7% increase from the previous year’s electronic marketing strategies. assumed management of the two S$336.3 million. This increase can be Raffles City hotels, with over 2,000 attributed to two factors – consolidation The highlight of the year must rooms, now relaunched as Raffles of the results of Swissotel which the undoubtedly be the Company’s The Plaza and Swissotel The Stamford. Group acquired in June 2001 and the acquisition of Swissotel Holding AG from full-year results of Raffles L’Ermitage SAirRelations AG for S$420.1 million. Raffles Holdings has significantly Beverly Hills acquired in October 2000. With the acquisition, the Company has strengthened its balance sheet with more than doubled its room inventory, the gain from the 55% Tincel Properties Raffles Holdings’ bottom line was strengthened its brand equity, enhanced divestment. The divestment was part of affected by the global economic its global presence, diversified its the strategic plan to leverage on Raffles slowdown and the disruptions following earnings base and increased its fee- Holdings’ assets to fuel its future growth the September 11 terrorist attacks in based income from management and expansion. The strong balance the United States. However, overall contracts. Raffles Holdings has since sheet positions Raffles Holdings well to profitability registered a strong increase substantially completed the integration seize business acquisitions and growth of 185% from S$80.9 million in 2000 to of the Swissotel operations. opportunities as they arise.

“The strong balance sheet positions Raffles Holdings well to seize business acquisitions and growth opportunities as they arise.” AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 40

CAPITALAND ANNUAL REPORT 2001 PROPERTY SERVICES 40 PAGE PAGE

Property Services

PREMAS International is a Total Asset Manager providing value to building owners and users throughout the life cycle of their respective assets. Today, this property services arm of CapitaLand has developed significant competitive advantages through selective utilisation of cutting-edge technologies. AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 41

BUILDING FOR LASTING VALUE PROPERTY SERVICES

PREMAS International provides a Island-wide Cleanest Estate services for commercial buildings,

comprehensive range of property Competition 2001”. The food centres hospitals and schools. 41 services in facilities management, in these five precincts also won the

engineering and township “Top Ten Cleanest Food Centres”. PREMAS International also launched its PAGE management. Integrating key services Training College, a first for the property and products, PREMAS International Engineering services The Centre services industry in the region. Beyond enhances operational efficiency, adds of Technical Excellence & Reliability is developing training programmes for its economic value and improves the yield vital support for township and facilities employees, the College will extend its of the assets it manages. management. It solves complex reach to suppliers and customers. engineering and technical issues, Financial summary and establishes best practices. Its Regionalisation PREMAS International recorded an engineering services have now PREMAS International is now after-tax profit of S$7.3 million on a established a mark of reliability actively pursuing further expansion turnover of S$115.5 million. among customers. opportunities in the rest of the region, building upon its present growth in Business review Key initiatives China and Indonesia. Property consulting In 2001, Several key initiatives were rolled out in consulting opportunities in high growth 2001. Among them is a commitment to PREMAS Shanghai achieved sectors, corporate clients, third party research, development and deployment. remarkable growth in China, clinching businesses, and e-enabling of several several major projects. Some of the processes were pursued. Through its Total Building Performance projects are the 2.6 million square feet benchmark, in August 2001, PREMAS Super Brand Mall; Shanghai Racquet Facilities management PREMAS International sealed a Research Club and Apartments; the State Power International will continue to bring its Memorandum of Understanding (MOU) Building, a Grade ‘A’ Office Tower in vast experience and knowledge to with the Centre for Total Building Beijing; and Chrysanthemum Park, a new markets in the area of high-tech Performance – a joint Research Centre condominium in Pudong, Shanghai. facilities management. established by the Building and PREMAS’ landscape unit was Construction Authority and the National conferred the prestigious Gold Award Township management PREMAS University of Singapore. The Centre will by the Shanghai Landscape Bureau for International manages four townships undertake projects such as building- the Chrysanthemum Park project, in Singapore – Aljunied, Jurong, Hong life-cycle cost studies, and energy and Phase I. Kah and Marine Parade – representing building performance classifications. a combined population of more than PT. PREMAS International in Jakarta one million. Its Customer Contact PREMAS International’s Energy Centre also secured several large scale retail Centre provides round-the-clock assists in the design and procurement and commercial projects. services, including lift rescue operations, of systems and equipment. It also and solutions for electrical problems and helps in planning energy optimisation Looking ahead sanitary choke. programmes and plays the role of an PREMAS International’s thrusts energy aggregator. in Singapore and the region will Through Home Services, which offer a continue, with a more customer- variety of solutions and services to The company also collaborated with centric approach and greater focus residents, PREMAS International ST Electronics to develop a on delivery of services through maintains its close links with the sophisticated computer-based building technology. With the set up of the community and promotes safe, clean management system. In November Centre of Technical Excellence & and thriving communities. 2001, PREMAS International embarked Reliability, the Customer Contact on a joint venture to incorporate Centre and the Training College, The five residential precincts it PREMAS Environ Pte Ltd, an indoor air PREMAS International will step up manages were among the “Top Ten quality service company. The new on its value-oriented solutions for Resident Committee Zones in the company will provide indoor air quality customers in Singapore and abroad.

“Integrating key services and products, PREMAS International enhances operational efficiency, adds economic value and improves the yield of the assets it manages.” AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 42

CAPITALAND ANNUAL REPORT 2001 E-BUSINESS 42 PAGE PAGE

e-business

pFission, established in March 2000, capitalises on new opportunities by identifying and developing e-businesses for the property industry and in tandem with CapitaLand’s business and operating strategies in the residential, commercial, hospitality and property management sectors. AR01(Review pg 1-43) FA 22/3/02 4:52 PM Page 43

BUILDING FOR LASTING VALUE E-BUSINESS

The appropriate employment of IT for services provided by the pFission’s were from CapitaLand. Today, icFox

is one avenue to enable companies companies. continues to experience good 43 to innovatively integrate relevant adoption rates in Hong Kong,

technologies to their business Consequently, the associates Malaysia, and the Philippines. PAGE needs so as to be more responsive emphasised cost restraint while rolling- to rapid changes in their operating out its services. The significant events • pFission and three other partners – environments. In 2001, pFission for 2001 included: City Developments Limited, Keppel continued to exploit new opportunities Land Limited and Singapore Land to improve the way real estate • Propbuzz acquiring Limited – incorporated TenantWorld companies operate, and to improve PropertyLifestyle.com Pte Ltd Pte Ltd to develop and operate an the quality and delivery of their to become Singapore’s leading office e-hub. Due for launch in the products and services. online property services company first half of 2002, TenantWorld will which provides a comprehensive provide a comprehensive suite of Financial summary suite of services for real estate e-services to help property and 2001 was the first full financial year agents and agencies. At the asset managers/owners manage for pFission. EBIT for the year ended inaugural Asian Internet Awards their portfolios, and will also provide 31 December 2001 was a loss of held in Hong Kong by Business tenants access to high speed S$5.4 million, compared to a loss of Online magazine and Visa internet connection and ASP S$3.2 million for the 10 months ended International, Propbuzz won (Application Service Provider) 31 December 2000. This was due the Business Services Category services. mainly to costs for starting-up and award for its strong content and rolling-out of services. As the pFission user interface. Looking ahead group of companies comprises IT and technology will continue mainly associates, their revenue is not • icFox Singapore, another industry- to play a pivotal role in improving consolidated. Revenue for the year was wide joint venture, began providing the way property companies operate, S$618,000 (2000: S$19,000) received online construction procurement and in enhancing the range of mainly from provision of management and project collaboration services products and services they offer. services, consultancy, portal and web for the industry. To this end, pFission will continue site development by pFission and to scan the technology horizon for eNabled Homes. Two of its services, icFox Tenders appropriate solutions for CapitaLand and icFox Project Net, were conferred and the industry. Business review the BAUCON ASIA 2001 Innovative The global economic downturn Exhibit Awards for achieving an and the weak Singapore property exemplary level of innovativeness. market significantly dampened activity within the real estate sector which During the year, 22 projects utilised led to a lower than projected demand the icFox platform, six of which

“IT and technology will continue to play a pivotal role in improving the way property companies operate, and in enhancing the range of products and services they offer.” AR01 (Rew pg 44-51) FA 22/3/02 5:01 PM Page 44

CAPITALAND ANNUAL REPORT 2001 PORTFOLIO DETAILS 44 PAGE PAGE

Portfolio Details as at 31 December 2001

The CapitaLand Group has a diversified portfolio of residential developments, commercial properties, serviced residences and hotels located in more than 50 cities around the world including Singapore, Hong Kong, Shanghai, Tokyo, London and Sydney – all gateway cities. This section presents the property portfolio owned by the non-listed subsidiaries of the Group. AR01 (Rew pg 44-51) FA 22/3/02 5:01 PM Page 45

BUILDING FOR LASTING VALUE PORTFOLIO DETAILS

Residential Assets 45 Effective Total Name Location Year * Holding Company Stake No. of units Tenure PAGE PAGE SINGAPORE Private Condominiums

Avalon Anderson Road 1999 C Leonie Court Pte Ltd 100% 82 Freehold Casafina Bedok South 1999 C CRL Realty Pte Ltd 50% 224 99 yrs Central Grove Geylang Avenue East 2001 C Sims Park Pte Ltd 50% 262 99 yrs Glendale Park Hillview 2000 C CRL Realty Pte Ltd 50% 448 Freehold The Levelz Farrer Road 2001 S CRL Realty Pte Ltd 100% 126 Freehold Melrose Park off River Valley Road 2000 C CRL Realty Pte Ltd 100% 170 999 yrs Palm Grove off Upper Serangoon Road 2000 S Leonie Court Pte Ltd 100% 111 999 yrs Palm Haven off Upper Serangoon Road 2000 S CRL Realty Pte Ltd 100% 48 999 yrs Pebble Bay Tanjong Rhu 1997 C Waterfront Properties Pte Ltd 50% 512 99 yrs SunHaven Upper Changi Road East 2000 S CRL Realty Pte Ltd 100% 295 Freehold SunGlade Upper Serangoon Road 2001 S CRL Realty Pte Ltd 100% 475 99 yrs Tanamera Crest off Upper Changi Road 2001 S CRL Realty Pte Ltd 100% 288 99 yrs The Clearwater Bedok Reservoir Road 2001 C CRL Realty Pte Ltd 100% 420 99 yrs The Loft Nassim Hill 2000 S Loft Condominium Pte Ltd 100% 77 99 yrs

Executive Condominiums

Chestervale Bukit Panjang 1999 C CRL Realty Pte Ltd 100% 396 99 yrs The Floravale Jurong West 2000 C CRL Realty Pte Ltd 100% 754 99 yrs The Rivervale Punggol Road 2000 C CRL Realty Pte Ltd 100% 671 99 yrs Woodsvale Woodlands 2000 C CRL Realty Pte Ltd 100% 696 99 yrs

Landed Developments

Holland Green Holland Road 1998 C CRL Realty Pte Ltd 100% 53 99 yrs

Total Effective Potential Name Location Year * Holding Company Stake GFA (sqm) Tenure

Future Projects

Site at Amber Close Amber Close 1999 A CRL Realty Pte Ltd 23.9% 62,151 Freehold Site at Balmoral Road near Orchard Road 1997 A CRL Realty Pte Ltd 100% 27,167 Freehold Site at Duchess Avenue off Bukit Timah Road 1997 A CRL Realty Pte Ltd 100% 13,932 Freehold Site at Guillemard Road Guillemard Road 1999 A CRL Realty Pte Ltd 100% 50,139 Freehold Site at Jalan Rumbia off Oxley Rise 1999 A CRL Realty Pte Ltd 89.7% 30,078 Freehold Site at Lloyd Road near Orchard Road 1999 A CRL Realty Pte Ltd 100% 13,229 Freehold Site at Martin Road off River Valley Road 1999 A CRL Realty Pte Ltd 50% 83,198 Freehold Site at Meyer Road Meyer Road 1999 A CRL Realty Pte Ltd 100% 52,488 Freehold Site at Mt Sinai Lane off Holland Road 2001 A Leonie Court Pte Ltd 100% 27,362 999 yrs Site at Nassim Hill near Orchard Road 1999 A CRL Realty Pte Ltd 100% 15,942 Freehold Site at Penang Road Penang Road 1996 A Winpeak Investment Pte Ltd 25% 40,735 Freehold Site at Scotts Road Scotts Road 1997 A Leonie Court Pte Ltd 100% 18,035 Freehold Site at Shelford Road Shelford Road 2000 A Leonie Court Pte Ltd 100% 30,162 Freehold Site at St Martin’s Drive off Tanglin Road 2000 A Leonie Court Pte Ltd 100% 8,638 Freehold Sites at Tong Watt Road off River Valley Road 2000 A Leonie Court Pte Ltd 100% 25,967 999 yrs Site at Yio Chu Kang Road Yio Chu Kang Road 2000 A CRL Realty Pte Ltd 100% 19,330 Freehold

* Year of Acquisition (A) Start of Construction (S) Completion (C) AR01 (Rew pg 44-51) FA 22/3/02 5:01 PM Page 46

CAPITALAND ANNUAL REPORT 2001 PORTFOLIO DETAILS

Effective Total Saleable Total No. Name Location Year * Holding Company Stake area (sqm) of units Tenure 46

PAGE PAGE CHINA

Chrysanthemum Park Pudong District, Shanghai 2001 C Shanghai Pudong 66.5% 144,911 1,109 70 yrs Xinxiang Real Estate Devt Co Ltd

Summit Panorama Pudong District, Shanghai 2000 S Shanghai Pudong 66.5% 153,784 939 70 yrs (Chrysanthemum Park Xinxiang Real Estate Phase 2) Devt Co Ltd

Parkville Luwan District, Shanghai 1999 C Shanghai Xin Rui 70% 125,738 1,001 70 yrs Property Devt Co Ltd

Manhattan Heights Jing’an District, Shanghai 2000 S Shanghai Xin Li 95% 35,712 254 70 yrs Property Devt Co Ltd

Springdale Garden Xuhui District, Shanghai 2000 C Shanghai Xin Wei 52% 132,488 805 70 yrs Property Devt Co Ltd

Taihu Lakeside Villas Suzhou Taihu National 1997 C Suzhou Taihu Chungten 41.6% 14,684 50 70 yrs Tourism and Vacation Real Estate Zone Development Co. Ltd

Site at Pudong Nan Road Pudong District, 1997 A Shanghai Pudong 66.5% Res: 121,335 809 70 yrs (Chrysanthemum Park Shanghai Xinxiang Real Estate Retail: 50,000 (estimated) Phases 3 & 4) Devt Co Ltd Office: 36,000

Site at Nan Dan Dong Road Xuhui District, Shanghai 2001 A Hua Jia Pte Ltd 99% 23,000 N.A. 70 yrs

HONG KONG

Hong Kong Parkview Blk 15 Repulse Bay 1999 A Central Hill Limited 75% 9,726 40 75 yrs + 75 yrs

JAPAN

Parkhouse Yoyogi-Uehara Shibuya Ward, Tokyo 2001 C Mitsubishi Estate 60% 4,552 62 Freehold Co. Ltd

MALAYSIA

Suasanna Sentral Kuala Lumpur Sentral 2002 C OneSentral Park 49% 66,984 400 Freehold Sdn Bhd

* Year of Acquisition (A) Start of Construction (S) Completion (C) AR01 (Rew pg 44-51) FA 22/3/02 5:01 PM Page 47

BUILDING FOR LASTING VALUE PORTFOLIO DETAILS

Commercial Assets 47 Total Book Value as at

Effective Total 31Dec 01 PAGE Name Location Year * Holding Company Stake NLA (sqm) Tenure (S$’000)

SINGAPORE Office

268 Orchard Road Orchard Road 1989 A RE Properties Pte Ltd # 100% 12,301 Freehold 170,000 (securitised)

Bugis Village Junction of Rochor 1989 A Rochor Square Pte Ltd 100% 10,650 99 yrs 52,500 Road/Victoria Street

Caltex House Raffles Place 2000 A Savu Properties Limited 55% 24,669 99 yrs †

Capital Tower Robinson Road 2000 C Capital Tower Pte Ltd 100% 68,914 99 yrs 846,000

Capitol Centre North Bridge Road 1989 A Capitol Square Pte Ltd 100% 4,545 30 yrs 373

Site at Church Street, Close to Raffles Place 2000 S China Square Holdings 36.8% 2,562 999 yrs † China Square Pte Ltd (land area)

Hitachi Tower Raffles Place 2000 A Savu Investments 50% 26,122 999 yrs † Pte Limited

Pidemco Centre South Bridge Road 1989 A Pidemco Centre Pte Ltd 50% 26,476 99 yrs †

PWC Building Close to Raffles Place 2000 C DBS China Square Ltd 30% 33,029 99 yrs †

Site and building leased North Bridge Road 1997 A Pidemco-Raffles 50% 20,000 99 yrs † to Raffles Hospital Properties Pte Ltd

Robinson Point Close to Raffles Place 1997 C Robinson Point Pte Ltd # 100% 12,368 Freehold 172,000 (securitised)

Selegie Complex Selegie Road 1995 A Pidemco Property 100% 13,186 99 yrs 60,220 Management Services Pte Ltd

Six Battery Road Raffles Place 1989 A Clover Properties Pte Ltd # 100% 44,901 999 yrs 740,000 (securitised)

SMA House Dhoby Ghaut Road 1989 A Pidemco House Pte Ltd 100% 1,795 99 yrs 8,500

Springleaf Tower (9 floors) Anson Road 1999 A Brimitty Pte Ltd 100% 8,754 99 yrs 99,000

Starhub Centre Cuppage Road 1989 A Cuppage Centre Pte Ltd 100% 25,885 99 yrs 289,167

Temasek Tower Shenton Way 1995 A Temasek Tower Ltd 90.1% 62,188 99 yrs †

The Adelphi Coleman Street 1988 A Adelphi Property Pte Ltd 50% 20,596 999 yrs †

The Exchange Raffles Place 1992 C D.L. Properties Ltd 35.4% 23,220 99 yrs †

* Year of Acquisition (A) Start of Construction (S) Completion (C) # These holding companies are treated as quasi-subsidiaries AR01 (Rew pg 44-51) FA 22/3/02 5:01 PM Page 48

CAPITALAND ANNUAL REPORT 2001 PORTFOLIO DETAILS

Total Book Value as at 48 Effective Total 31Dec 01 Name Location Year * Holding Company Stake NLA (sqm) Tenure (S$’000) PAGE PAGE Carpark

Golden Shoe Carpark Market Street 1989 A Golden Square Pte Ltd 100% 3,450 99 yrs 68,600

Market Street Carpark Market Street 1989 A Pidemco Tower Pte Ltd 100% 1,697 99 yrs 34,500

Mixed Development

Bugis Junction Victoria Street 1990 A Bugis City Holdings Pte Ltd 20% 63,590 99 yrs †

Retail

Clarke Quay River Valley Road 1993 C Clarke Quay Pte Ltd 100% 21,613 99 yrs 170,000

Funan The IT Mall North Bridge Road 1984 C SingMall Property Trust 87% 23,075 99 yrs †

Junction 8 Bishan 1993 C SingMall Property Trust 87% 23,186 99 yrs †

Plaza Singapura Orchard Road 1974 C Plaza Singapura Pte Ltd 100% 42,492 Freehold 668,000

Tampines Mall Tampines Central 1995 C SingMall Property Trust 87% 29,020 99 yrs †

Thomson Plaza #03-24 Upper Thomson Road 1979 C Thomson Plaza Pte Ltd 100% 2,382 99 yrs 9,350

Industrial

Clementi Complex West Coast Road 1989 A Clementi Complex Pte Ltd 100% 31,741 99 yrs 46,000

Corporation Place Jurong 1993 C Corporation Place Ltd 75% 58,226 60 yrs †

Kallang Avenue Junction of 1989 A KAIC Pte Ltd 100% 10,271 99 yrs 29,000 Industrial Centre Kallang Road and Kallang Avenue

Kallang Bahru Complex Junction of 1989 A KBC Pte Ltd 100% 15,784 99 yrs 45,000 Kallang Bahru and Kallang Avenue

Technopark @ Chai Chee Bedok Town 1982 A Wan Tien Realty Pte Ltd 100% 107,201 60 yrs 239,000

Ubi Techpark Ubi Avenue 1 1997 A Ubi Development Pte Ltd 50% 160,898 60 yrs †

* Year of Acquisition (A) Start of Construction (S) Completion (C) † Total book value of non-wholly owned Singapore commercial properties: S$5.55 billion AR01 (Rew pg 44-51) FA 22/3/02 5:01 PM Page 49

BUILDING FOR LASTING VALUE PORTFOLIO DETAILS

Total Book Value as at Effective Total 31Dec 01 49 Name Location Year * Holding Company Stake NLA (sqm) Tenure (S$’000) PAGE PAGE CHINA Office

Pidemco Tower Huangpu District, 1998 C Shanghai Huteng Real 75% 41,661 50 yrs †† Shanghai Estate Co Ltd

Mixed Development

Huiteng Metropolis Huicheng Commercial 1998 C Xiamen Huiteng 50% 64,868 50 yrs †† City, Xiamen Properties Co Ltd

Raffles Square Huangpu District, 1997 S Shanghai Hua Qing 47.5% 125,208 50 yrs †† Shanghai Real Estate Devt Co Ltd

HONG KONG Office

38th Floor Tower One, Central 1997 A Dahlia Properties Pte Ltd 100% 1,380 75 yrs+75 yrs 23,000 Lippo Centre

Unit 1806-9 Tower Two, Central 1997 A Star Assets Property Ltd 100% 615 75 yrs+75 yrs 9,126 Lippo Centre

Redevelopment site at Central 2000 A Bayshore Development Ltd 35% 38,090 999 yrs †† 1 Connaught Road (est. GFA)

Industrial

Corporation Park Sha Tin 1996 C Sea Dragon Ltd 30% 40,100 54 yrs ††

* Year of Acquisition (A) Start of Construction (S) Completion (C) AR01 (Rew pg 44-51) FA 22/3/02 5:01 PM Page 50

CAPITALAND ANNUAL REPORT 2001 PORTFOLIO DETAILS

Total Book Value as at 50 Effective Total 31Dec 01 Name Location Year * Holding Company Stake NLA (sqm) Tenure (S$’000) PAGE PAGE INDONESIA Landbank

Site in Kebayoran Jakarta 1993 A PT Amethyst Wahyu 95% 85,815 30 yrs †† (land area)

JAPAN Office

Shinjuku Square Tower Shinjuku Ward, Tokyo 2001 A Shinjuku Square Tower 50% 11,097 Freehold †† (19th to 29th Floors) Tokutei Mokuteki Kaisha

MALAYSIA Office

Menara Citibank Jalan Ampang, 1994 A Inverfin Sdn Bhd 30% 69,222 Freehold †† Kuala Lumpur

UNITED KINGDOM Office

Redevelopment site at Moorgate, London 2001 S CapitaLand UK 50% 7,705 150 yrs †† 19-31 Moorgate Holdings Limited (estimated)

Mixed Development

Canary Riverside Canary Wharf, London 2000 C Canary Riverside 62.5% Comm: 6,604 999 yrs †† Development Pte Ltd Res: 322 units Hotel: 142 rooms

* Year of Acquisition (A) Start of Construction (S) Completion (C) †† Total book value of non-wholly owned overseas commercial properties: S$1.59 billion AR01 (Rew pg 44-51) FA 22/3/02 5:01 PM Page 51

BUILDING FOR LASTING VALUE PORTFOLIO ANALYSIS

PORTFOLIO ANALYSIS 51

The Group’s property portfolio as at Property PAGE 31 December 2001 comprised Value by sector (S$m) residential development properties,

investment properties, serviced Residential 3,731 residences and hotels owned by Office 5,060 subsidiaries, associated and joint Retail 2,222 Industrial 410 venture companies. Mixed Development 770 Hotel 1,485 In the following analysis, the values Serviced Residence 1,073 Others 88 attributable to the CapitaLand Group are used. Investment properties are stated at their market values while residential development properties are stated at book costs (net of any provisions made). Properties treated as fixed assets are stated at book cost.

Property Value by geographical location (S$m)

Singapore 11,173 China/Hong Kong 1,475 Japan 72 Southeast Asia 601 Australia 692 Europe 721 USA 106

Property Value by SBU (S$m)

Residential 3,917 Commercial 7,371 Ascott 1,799 Raffles 1,751 AR01 (Rew pg 52-64) FA 22/3/02 5:14 PM Page 52

CAPITALAND ANNUAL REPORT 2001 FINANCIAL REVIEW 52 PAGE PAGE

Financial Review

Contents

53 Financial Highlights 55 Performance Review 60 5-Year Financial Summary 61 Shareholder Value 63 Economic Value Added Statements 64 Value Added Statements AR01 (Rew pg 52-64) FA 22/3/02 5:14 PM Page 53

BUILDING FOR LASTING VALUE FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS 53

2001 2000 % PAGE S$ million S$ million Change (A) Profit and Loss Accounts

Turnover 1st Half 1,747.1 1,379.7 26.6 2nd Half 1,620.8 1,542.0 5.1 Total 3,367.9 2,921.7 15.3

Earnings Before Interest and Tax (EBIT) 1st Half 190.0 62.5 204.0 2nd Half 215.6 248.0 (13.1) Total 405.6 310.5 30.6

Net (Loss)/Profit attributable to Shareholders 1st Half (268.3) (195.8) 37.0 2nd Half (6.7) (91.2) (92.7) Total (275.0) (287.0) (4.2)

Net Dividend Ordinary share dividends 57.0 38.0 50.0 Preference share dividends 6.3 6.1 3.3 Total 63.3 44.1 43.5

(B) Balance Sheets

Total Assets 18,352.8 19,585.6 (6.3)

Share Capital 2,517.4 2,517.4 – Reserves 3,482.7 4,525.0 (23.0) Shareholders’ Funds 6,000.1 7,042.4 (14.8)

Total Borrowings 8,811.5 9,059.8 (2.7)

(C) Financial Ratios

% 2001 2000 Change Earnings per share after tax (cents) (10.9) (11.5) (5.2)

Return on Shareholders’ Funds (%) (4.2) (4.2) –

Return on Total Assets (%) 1.6 1.0 60.0

Dividend Gross ordinary dividend rate (%) 3.0 2.0 50.0 Dividend cover (times) NM NM NM

Net Tangible Assets per share (S$) 2.37 2.80 (15.4)

Debt Equity Ratio (net of cash) (times) 0.87 0.92 (5.4)

Interest Cover (times) 0.92 0.68 35.3 AR01 (Rew pg 52-64) FA 22/3/02 5:14 PM Page 54

CAPITALAND ANNUAL REPORT 2001 FINANCIAL HIGHLIGHTS

(D) Segmental Results By Strategic Business Units (SBU) 54 Turnover Earnings Before Interest & Tax 2001 2000 % 2001 2000 % PAGE PAGE S$ million S$ million Change S$ million S$ million Change Commercial & Financial SBUs 489.5 433.8 12.8 384.5 268.2 43.4 Residential SBU 2,005.9 1,689.8 18.7 (340.7) 189.4 NM The Ascott Group* 282.1 247.5 14.0 48.4 95.7 (49.4) RHL Group & RCH** 476.6 445.1 7.1 338.9 94.5 258.6 Property Services SBU 115.5 92.6 24.7 11.3 16.6 (31.9) E-Business SBU 0.6 –NM(5.4) (3.2) 68.8 Non-Core Businesses 24.1 29.4 (18.0) (40.5) (354.6) (88.6) – 3 Other Hotels 24.1 29.4 (18.0) 14.7 (158.3) NM – Healthcare – ––(55.2) (196.3) (71.9)

Corporate and consolidation adjms (26.4) (16.5) 60.0 9.1 3.9 133.3 Group 3,367.9 2,921.7 15.3 405.6 310.5 30.6

* Although the Ascott Group prepared its financial statements on merger accounting, The Ascott Group Limited became a subsidiary only on 25 November 2000 from CapitaLand Group’s perspective. Hence, the 2000 comparative turnover and profit shown above pertain only to the former Somerset Group which was a subsidiary of CapitaLand Group.

** Depreciation of about $24.4M (2000: $26M) was put through at Group level to align Raffles Holdings’ depreciation rates for its hotels to the Group’s depreciation rates. In addition, RC Hotels Pte Ltd is a 49% associated company at Raffles Holdings Group level but is a 64.1% subsidiary at CapitaLand Group level. Accordingly, adjustments have been made to consolidate RC Hotels Pte Ltd as a subsidiary.

Strictly for information only, the numbers reported by The Ascott Group and Raffles Holdings Group to their respective shareholders are:

Turnover Earnings Before Interest & Tax 2001 2000 % 2001 2000 % S$ million S$ million Change S$ million S$ million Change The Ascott Group 282.1 298.3 (5.4) 112.8 112.9 –

Raffles Holdings Group 358.6 336.3 6.6 252.4 123.4 104.5

Note: 1. 2000 comparative figures have been restated to conform with requirements arising from implementation of new/revised accounting standards during the year.

2. NM: Not Meaningful AR01 (Rew pg 52-64) FA 22/3/02 5:14 PM Page 55

BUILDING FOR LASTING VALUE PERFORMANCE REVIEW

PERFORMANCE REVIEW 55

Performance overview would have been achieved versus year contribution from Capital Tower PAGE At the time of merger in late 2000, the 2000 profit of S$140.8 million (without and Canary Riverside. Group set several financial goals that provisions). it wished to achieve within three to All SBUs shown improvement over five years. It also identified certain key Through sales of non-core and their 2000 turnover. Approximately strategies that would enable the fringe assets, the Group generated 59.6%, or S$2.0 billion, was Group to meet its targets. The Group divestment proceeds of about contributed by the Residential SBU. is pleased to report that it has made S$1.7 billion and gains of $431.8 million. Other major contributors were significant progress in executing these As a result, the Group improved its Commercial SBU (14.5%), Raffles strategies in 2001 which had gearing from 0.92 in 2000 to 0.87 at Holdings Group and RC Hotels Pte Ltd strengthened its balance sheet, 2001 year-end. The improvement in (14.1%) and The Ascott Group (8.4%). intensified its focus on core gearing would have been more competencies and grew its third party significant had the above provisions In terms of geographical analysis, management fee income. and revaluation deficits not been made. Singapore was still the Group’s largest Excluding the effects of the said market with contribution of 41.7% to Nevertheless, declining property provisions and revaluation deficits, Group turnover. However, this was a values, the general worldwide gearing would have dropped to 0.76. decline from the 49.6% the year before economic downturn and the effects as the Group continuously strove to of the September 11 attacks made Turnover diversify its geographical base to reduce 2001 a very difficult year. For the year Despite the loss of contribution from risks. The acquisition of Swissotel hotel under review, besides revaluation divested properties and the weak chain which has numerous hotels in deficits of S$424.9 million which market sentiments, the Group Europe, USA and the Middle East/ had been charged to reserves, the achieved the 10% to 15% revenue Mediterranean region, and the acquisition Group also made provisions totalling growth set for 2001. Group’s turnover of Oakford serviced residences in S$747.2 million (Group’s share is was S$3.4 billion versus S$2.9 billion Australia, together with stepped-up S$691.6 million) which had been in 2000, a 15.3% increase. This is on investments in China and the United charged to the profit and loss account. the back of better residential sales Kingdom, all helped to contribute to this These provisions include: from Australand and China and full geographical diversification.

i) S$500.3 million for Singapore residential projects and landbank; 2000 Turnover by SBU 2000 Turnover by Geographical Location 0.4% ii) S$38.9 million revaluation deficits 3.2% 4.7% 0.9% 14.8% Total: S$2.9 billion 1.9% 15.2% Total: S$2.9 billion for properties in Hong Kong; 7.8% iii) S$61.1 million for Parkway shares Commercial & Financial Singapore 8.5% Residential Australia & and Vista Heathcare; New Zealand Somerset Group China & Hong Kong iv) S$112.4 million by Raffles Holdings RHL Group & RCH Other Asia Property Services Group for impairment in carrying United Kingdom Others 35.1% values of property, plant and Others 49.6% equipment and investments; and 57.8% v) S$34.4 million flowed from The Ascott Group mainly from provisions for loans to third parties 2001 Turnover by SBU 2001 Turnover by Geographical Location and impairment in values of 3.4% 4.3% properties. 14.5% Total: S$3.4 billion 5.0% Total: S$3.4 billion 14.1% 2.4% 10.1% Commercial & Singapore As a consequence of the above Financial 41.7% Australia & 8.4% provisions, the Group recorded a loss Residential New Zealand The Ascott Group China & Hong Kong after tax and minority interests of RHL Group & RCH Other Asia S$275.0 million, a marginally lower Property Services United Kingdom Others loss compared to 2000 loss of (mostly Europe, USA & Middle East/ S$287.0 million. Without the 36.5% 59.6% Mediterranean) provisions, a profit of S$416.6 million AR01 (Rew pg 52-64) FA 22/3/02 5:14 PM Page 56

CAPITALAND ANNUAL REPORT 2001 PERFORMANCE REVIEW

Analysis of results 2000 & 2001 EBIT by Geographical Location have proposed a first and final

56 Group earnings before interest and tax dividend of 3% (2000: 2%). The net S$m 2000 Total: S$311 million 2001 Total: S$406 million (“EBIT”) for 2001 was S$405.6 million, 500 cash outflow after deducting tax of

PAGE PAGE an increase of 30.6% over 2000. 420 24.5% is about S$57.0 million. The two key contributors were the 400

Commercial SBU and Raffles Hotels 296 Assets 300 Group whose EBIT increased by Total Group assets fell 6.3%

43.4% and 258.6% respectively 200 from S$19.6 billion in 2000 to

over 2000 largely due to divestment 133 S$18.4 billion in 2001. The decrease 122 108 gains achieved for 2001. Residential 100 was mainly due to a highly successful 63 SBU recorded a negative EBIT of 25 divestment programme which saw S$340.7 million compared to positive 0 assets totalling S$1.7 billion in value (1) (4) EBIT of S$189.4 million in 2000. The being monetised to pare down debt decrease was mainly due to provisions -100 (96) and fund new acquisitions. The

of S$500.3 million made for Singapore (165) reduction in assets value was also (184) residential projects and landbank -200 due to the decline in the market as well as the Group’s share of Singapore China & United Kingdom valuation of investment properties Australia & Hong Kong Others revaluation deficit amounting to New Zealand Other Asia (mostly Europe, and provisions made for residential USA & S$25.8 million for Hong Kong Middle East/ projects and landbank in Singapore Parkview Tower. In 2001, the Group Mediterranean) and impairment to fixed assets and disposed of its non-core businesses investments. The said revaluation such as interests in Parkway Holdings (15.5%). However, comparing year-on- deficit and provisions totalled about Limited and three hotels in Suzhou, year, EBIT from Singapore operations $1.2 billion. Hanoi and Yangon at slightly above decreased by 29.7% from S$420.4 written down cost compared to million in 2000 to S$295.6 million in The above decrease in assets value substantial provisions made for these 2001 as the divestment gains achieved was partially offset by new investments in 2000. for 2001 were offset by substantial acquisitions such as the Swissotel provisions made for Singapore hotel chain in Europe by Raffles Holdings Group, the Oakford serviced 2000 & 2001 EBIT by SBU residential projects and landbank, and loss of contributions from divested residences chain in Australia by The S$m 2000 Total: S$311 million 2001 Total: S$406 million Ascott Group and Shinjuku Square 400 385 assets. The EBIT from China/Hong 350 339 Kong and other parts of Asia improved Tower in Japan by Commercial SBU. 300 268 over 2000 due to substantially lesser 250 200 189 provisions and better performance from Total Assets by Category 150 residential projects in China. EBIT of 96 95 S$m S$19.6 billion S$18.4 billion 100 20,000 48 S$62.9 million from United Kingdom 50 17 11 0 comprised mainly the consolidation of 4,604 -50 (36) Canary Riverside, the Group’s hotel -100 5,438 and serviced residences operations in 15,000 -150 London, and the S$29.2 million 1,582 -200

-250 divestment gain of Finsbury Pavement. 2,432 4,281 -300 This was lower than the 2000 EBIT of 10,000 -350 (341) (354) S$108.3 million which was contributed 3,445 -400 mainly by the sale of land rights in Commercial & The Ascott Group Property Canary Riverside. 5,000 Financial (after conso adjms) Services 9,119 Residential RHL Group & RCH Others 7,038 (after conso adjms) Dividends Although the Group recorded a loss of 0 S$275 million, the key consideration 2000 2001 In terms of geographical analysis, the was to maintain CapitaLand’s dividend Fixed & Other Assets Group EBIT came mainly from track and to provide shareholders with Interests in Associated Companies, Joint Venture Singapore (72.9%), Australia/New Companies and Partnership a reasonable return on their Development Properties for sale Zealand (30.1%) and United Kingdom investment. As such, the Directors Investment Properties (completed & under development) AR01 (Rew pg 52-64) FA 22/3/02 5:14 PM Page 57

BUILDING FOR LASTING VALUE PERFORMANCE REVIEW

Total Assets by Geographical Location Treasury Highlights 57 2001 2000 2.7% 3.3% 3.8% Total: S$18.4 billion

9.3% Bank Facilities And Available Funds PAGE Singapore Amount available for drawdown (S$’m) 7,032 7,166 Australia & 8.5% New Zealand Amount utilised for loans (S$’m) 5,007 5,008 China & Hong Kong Balance unutilised (S$’m) 2,025 2,158 Other Asia United Kingdom Bank/cash balances and fixed deposits (S$’m) 1,923 879 Others Total unutilised facilities and funds available for use (S$’m) 3,948 3,037 72.4% (mostly Europe, USA & Middle East/ Mediterranean) Capital Markets Capacity Shareholder’s equity Debt programmes in place (S$’m) 6,546 6,795 There was no change in the issued and Debt securities outstanding paid-up ordinary share capital of the (net of debt securities purchase) (S$’m) 3,805 4,052 Company. On the maturity date of Unused capital market capacity (S$’m) 2,741 2,743 31 December 2001, the Company redeemed the 172,500 2% redeemable Interest Cover Ratio convertible cumulative preference Net profit before interest and tax (S$’m) 322 241 shares (“RCCPS”) of US$1 each at the Net interest expense (S$’m) 349 354 redemption price of US$1,171.10 per Interest cover ratio (times) 0.92 0.68 preference share based on a yield to redemption of 5% per annum. The RCCPS had been classified as a debt Interest Service Ratio since 2000. Operating cash surplus before interest and tax (S$’m) 1,557 1,022 Net interest paid (S$’m) 471 381 The Group revaluation reserve decreased Interest service ratio (times) 3.31 2.68 substantially by S$729.8 million from S$1.1 billion in 2000 to S$339.9 million Secured Debt Ratio at 2001 year-end. This was mainly due Total secured debt (S$’m) 3,078 3,285 to revaluation deficits of S$424.9 million Percentage of secured debt 35% 36% charged to it for decline in value of properties. In addition, realised Debt/Equity Ratio revaluation reserve of S$304.9 million Total debts (S$’m) 8,812 9,060 had been transferred to the profit and Bank/cash balances and fixed deposits (S$’m) 1,923 879 loss account as a result of divestments. Net debts (S$’m) 6,889 8,181 Total equity (S$’m) 7,886 8,896 Accumulated losses also increased Debt equity ratio (net of bank/cash balances significantly from S$45.6 million in 2000 and fixed deposits) (times) 0.87 0.92 to S$378.8 million in 2001, largely due to the loss of S$275 million recorded for the year. As mentioned earlier, the loss Note: was attributed to substantial provisions 2000 comparative figures have been restated to conform with requirements arising from implementation of new/revised accounting standards during the year. made for the year of which the Group’s share was S$691.6 million.

Arising from the above and movements in other reserves, the shareholders’ funds as at 2001 year end was S$6.0 billion, a reduction of S$1.0 billion or 14.8%, from S$7.0 billion in 2000. In tandem, net tangible backing per share fell 43 cents to $2.37 from $2.80 the year before. AR01 (Rew pg 52-64) FA 22/3/02 5:14 PM Page 58

CAPITALAND ANNUAL REPORT 2001 PERFORMANCE REVIEW

Management and Sources of Funding Commitment of funding

58 sources of funding as at 31 December 2001 In 2001, proceeds from the Group’s

The Group places a lot of emphasis on S$b 1999 S$7.7 billion 2000 S$9.1 billion 2001 S$8.8 billion asset divested was more than 10 PAGE PAGE maintaining a prudent financial S$1.7 billion. As such, the Group was structure. This includes, among others, 3% able to minimise its costs of funding by

keeping a close watch on its cashflow 8 tapping the lower cost of short term 4% situation, its debt maturity profile and 42% 43% uncommitted funding. Nevertheless, as its overall liquidity position. To ensure part of prudent financial management 6 prudent liquidity management, the 47% as at 31 December 2001, 74% of Group strives to maintain available the Group’s loans are on committed

banking facilities of at least 25% of its 4 basis. Whenever possible, the Group net debt level. endeavours to raise committed funding 55% 57% from both the capital markets and The Group’s total debt level is 2.7% 2 49% financial institutions. lower as at 31 December 2001

compared to previous year. In addition, 0 Maturity profile

its cash and fixed deposits balances S$ billion % have risen by a substantial 119% to RCCPS Capital Markets Bank Loans S$1.9 billion. As such, the Group’s Yearly Maturity net debt position was only S$6.9 billion financing or where bank source type of Analysis of Loans on 31 December 2001, a 16% funding is more appropriate. improvement from a year ago. Most of Due within 1 year 4.80 54 the cash reserves will be utilised to As at year end, 43% of the Group’s Between 1 & 2 years 1.46 17 repay borrowings or finance other funding is from the capital markets. Between 2 & 3 years 0.53 6 investment outlay. The balance 57% is funded by Between 3 & 4 years 0.28 3 financial institutions. For year ended Between 4 & 5 years 0.57 7 The significant decline in net debt is 31 December 2001, bank lines for More than 5 years 1.17 13 largely due to the Group’s successful the Group totalled S$7.03 billion asset divestment strategy. In 2001, the and S$2.03 billion are untilised as As at 31 December 2001, the Group Group divested S$1.7 billion of assets. at year end. has S$1.9 billion in cash balances. The assets divested includes the However, as at date of this report, the Group has already utilised close to securitisation of its 55% stake in Commitment of Funding Raffles City Pte Ltd by Raffles as at 31 December 2001 S$660 million to repay the loans due within one year. It intends to use the Holdings Limited, the sale of Orchard S$b 1999 S$7.7 billion 2000 S$9.1 billion 2001 S$8.8 billion Point retail mall by The Ascott 10 remaining cash balances to redeem Holdings Limited, the sale of its outstanding loans, where appropriate. In addition, the Group has sufficient investment stake (16.7%) in Parkway 8 30% Holdings Limited and the disposal of 26% lines of credit available to meet its our commercial office building site at 28% short-term debt obligations. The Finsbury in the United Kingdom. 6 Group actively manages its maturity profile and whenever possible will balance it with its divestment plans. Sources of funding 4 The Group sources its funding from both financial institutions and the capital 72% 70% 74% Available lines by nationality of markets. Whenever possible, the Group 2 banks as at 31 December 2001 will raise its funding requirement via the The Group has extensive and active relationship with a network capital markets. This is to ensure that 0 the funding capacity from financial of not less than 40 banks of various institutions are allocated for project Uncommitted Committed nationalities. The number has AR01 (Rew pg 52-64) FA 22/3/02 5:14 PM Page 59

BUILDING FOR LASTING VALUE PERFORMANCE REVIEW

Available Lines by Nationality of Banks allow the Group to achieve a lower Interest Cover and Interest Servicing Ratio

as at 31 December 2001 59 interest costs in view of the low S$m Times interest rate environment during 0.5 5.0 11% S$0.47 the year. PAGE 31% 10% Europe 0.4 4.0 Singapore The Group actively manages its S$0.38 Australia S$0.35 S$0.35 Japan interest rate profile, taking into account 3.31 10% Others the investment holding period, the 0.3 3.0 divestment plans and the nature of 2.68 the assets. 0.2 2.0 38% During the year, the Group’s reduced in comparison to the previous average rate of cost of borrowing for 0.1 0.92 1.0 year as a result of the ongoing the various currencies loans has 0.68 generally decline due to the low mergers and acquisition within the 0 0 Year 2000 Year 2001 banking industry. interest rate environment. Net Interest Expense Net Interest Cost Interest Servicing Ratio Interest Cover Ratio Interest rate profile Gearing The Group manages its interest Note: 2000 comparative figures have been restated to 2001 2000 conform with requirements arising from implementation costs by maintaining a prudent of new/revised accounting standards during the year. mix of fixed and floating rate Debt/Equity ratio borrowings. On a portfolio basis, (net of cash/fixed the fixed rate borrowings constituted deposit balances) 43% and the balance 57% were on floating rate basis. The more than With provision of losses 0.87 0.92 40% fixed rate ratio offers protection Without provision of losses 0.76 0.88 against interest rates hikes and also For the year ended 31 December 2001, the gearing has shown Analysis of Fixed and Floating Rate Loans as at 31 December 2001 improvement as a result of the divestment completed by the Group S$b 1999 S$7.7 billion 2000 S$9.1 billion 2001 S$8.8 billion 10 during the financial year.

Interest Cover Ratio (“ICR”) and 8 Interest Service Ratio (“ISR”) 58% 57% The ICR and the ISR was 0.92 and

6 3.31 respectively. The ICR has 55% improved as compared to previous year as a result of improved net 4 profits generated during the year from operations. The ISR has also 42% 43% improved from previous year level 2 45% of 2.68 to 3.31. The improved ISR reflects a strengthening ability by the 0 Group to pay interest costs from its

Floating Fixed operating cashflow. AR01 (Rew pg 52-64) FA 22/3/02 5:14 PM Page 60

CAPITALAND ANNUAL REPORT 2001 5-YEAR FINANCIAL SUMMARY

60 5-YEAR FINANCIAL SUMMARY

PAGE PAGE 1997 1998 1999 2000 2001 (A) Profit and Loss Accounts (S$ million) Turnover by Activity Commercial properties’ rental and related income 429.6 408.3 416.1 463.6 619.3 Residential properties sales and related income 1,173.1 1,754.3 1,860.1 1,863.9 2,054.2 Serviced residences operations 28.1 29.7 63.1 91.4 138.9 Hotels operations 313.2 323.8 336.6 398.1 470.6 Property, project and other management services 128.7 110.1 103.9 117.8 116.3 Other income 51.4 29.0 36.3 65.9 28.1 Inter-segment elimination (50.7) (24.9) (31.2) (79.0) (59.5) Total 2,073.4 2,630.3 2,784.9 2,921.7 3,367.9

Earnings Before Interest and Tax (EBIT) by Activity Commercial properties’ rental and related income 316.6 324.3 281.2 288.1 595.8 Residential properties sales and related income 228.5 (425.0) 291.2 296.8 (322.9) Serviced residences operations 4.0 4.3 6.3 31.9 15.7 Hotels operations 12.0 (50.7) 12.1 (132.2) 149.0 Property, project and other management services 21.0 22.5 18.5 22.3 11.4 Other income 0.1 (20.8) 0.7 (194.5) (43.4) Inter-segment elimination (1.4) (10.4) 3.0 (1.9) – Total 580.8 (155.8) 613.0 310.5 405.6

Net Profit/(Loss) attributable to Shareholders 225.7 (724.7) 212.8 (287.0) (275.0)

(B) Balance Sheets (S$ million) Investment Properties (completed and under development) 7,982.5 7,212.0 8,267.2 9,118.6 7,038.4 Development Properties for Sale 3,575.8 2,829.9 3,536.3 4,281.2 3,445.1 Associated & Joint Venture Companies and Partnerships 1,405.6 991.8 1,428.7 1,581.7 2,431.8 Fixed and Other Assets 2,281.2 2,709.4 4,400.1 4,604.1 5,437.5 Total Assets 15,245.1 13,743.1 17,632.3 19,585.6 18,352.8

Shareholders’ Funds 6,623.3 5,467.1 6,784.0 7,042.4 6,000.1 Total Borrowings 6,329.7 6,119.8 7,686.9 9,059.8 8,811.5 Minority Interests and Other Liabilities 2,292.1 2,156.2 3,161.4 3,483.4 3,541.2 Total Equities & Liabilities 15,245.1 13,743.1 17,632.3 19,585.6 18,352.8

(C) Financial Ratios Earnings per share after tax (cents) 13.4 (37.1) 9.5 (11.5) (10.9)

Return on Shareholders’ Funds (%) 3.5 (12.0) 3.5 (4.2) (4.2)

Return on Total Assets (%) 2.3 (4.7) 3.3 1.0 1.6

Dividend Gross ordinary dividend rate (%) 6.4 1.7 2.7 2.0 3.0 Dividend cover (times) 2.3 NM 3.9 NM NM

Net Tangible Assets per share (S$) 3.56 2.56 2.71 2.80 2.37

Debt Equity Ratio (net of cash) (times) 0.81 0.95 0.77 0.92 0.87

Interest Cover (times) 4.02 NM 2.48 0.68 0.92

Note: 1. Only 2000 comparative figures have been restated to conform with requirements arising from implementation of new/revised accounting standards during the year. 2. NM: Not Meaningful AR01 (Rew pg 52-64) FA 22/3/02 5:14 PM Page 61

BUILDING FOR LASTING VALUE SHAREHOLDER VALUE

SHAREHOLDER VALUE 61

The year 2001 was a roller-coaster ride in private housing prices, there was SingMall Property Trust. Market PAGE for the Singapore stock market. As one renewed interest in CapitaLand’s disappointment with the deferment was of the largest listed companies on the shares. From a low of S$1.97 at the offset by compelling evidence of an local bourse, CapitaLand’s shares start of the second quarter, the improvement in the Singapore enjoy widespread institutional following. Company’s shares rose by 30%, residential market. Although private As such, macroeconomic events topping out at S$2.56 on 4 July 2001. housing prices remained low, there was including the slowdown in the This rally ended partly due to signs of a strong increase in the number of units Singapore economy, the September 11 deterioration in the Singapore economy. sold. According to URA statistics, a incident and the weakened global CapitaLand’s shares came under total of 3,461 units were sold in the economic outlook affected the additional selling pressure following the fourth quarter of 2001, up 76% Company’s share price performance. release of the Company’s first quarter compared to the third quarter of 2001. results which included substantial, but The fourth quarter was also the best Therefore it was not surprising that the necessary provisions for its Singapore performing quarter in terms of volume shares trended lower in the first quarter residential assets. The terrorist attack in of transactions. The Company launched after beginning the year at S$2.98. This New York on September 11 further The Levelz and relaunched Tanamera could be due to the weak Singapore weakened the share price. The steep Crest in the last quarter. Both projects residential property market, as property price fall following the September 11 were well-received. Tanamera Crest developers delayed new launches in attack eventually drew bargain hunters sold out within three weeks after its light of weak buying sentiment. back to the market. CapitaLand’s share relaunch while over 75% of the units in price hit a low for 2001 at S$1.20 on The Levelz were sold by the end of However, the decline in the 21 September 2001, some 53% off the 2001. Consequently, the Company’s Company’s share price may have previous high of S$2.56 on 4 July 2001 shares were up 56% to S$1.87 at the been excessive, down more than before rebounding yet again. end of the year compared to the most 30% as at end March 2001. With the recent low of S$1.20 in September. release of the year’s first quarter The rebound in CapitaLand’s share Over this same period, the Company’s market statistics from the Urban price post 21 September 2001 shares outperformed both the STI Redevelopment Authority (URA), continued despite the Company’s and the SESPROP index by 25% and which showed a modest 4.0% decline decision to defer the listing of the 10% respectively.

CapitaLand's Share Price for the year 2001

3.0

2.5 Last $1.87 High (on 5 Jan) $2.98 Average $2.10 2.0 Low (on 21 Sep) $1.20

1.5

1.0

0.5

0.0 5 Jul 4 Apr 2 Jan 3 Oct 6 Jun 2 Feb 5 Mar 3 Aug 4 Sep 3 Dec 1 Nov 16 Jul 25 Jul 8 May 16 Apr 25 Apr 11 Jan 22 Jan 12 Oct 23 Oct 15 Jun 26 Jun 13 Feb 22 Feb 15 Mar 26 Mar 15 Aug 24 Aug 13 Sep 24 Sep 12 Dec 24 Dec 31 Dec 12 Nov 22 Nov 17 May 28 May AR01 (Rew pg 52-64) FA 22/3/02 5:14 PM Page 62

CAPITALAND ANNUAL REPORT 2001 SHAREHOLDER VALUE

Relative Performance of CapitaLand Share Price

62 STI And Singapore Equities Property Index (SESPROP) for the year 2001 PAGE PAGE

20 CapitaLand SESPROP STI

-10

-40

-70 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Note 2000 2001 Share Price (S$) 1 Last Transacted* 3.000 1.870 High* 3.380 2.980 Low* 1.980 1.200 Average* 2.533 2.103 Turnover (Million Shares)* 1 1.153 4.541

Per Share Earnings (cents) 2 (11.5) (10.9) Dividends (cents) 2.0 3.0 Dividend Yield (%) 3 0.8 1.4 Net price-earnings ratio (times) 3 N.M N.M Net Asset Backing (S$) 2.80 2.37

Note 1: Share prices and turnover reflect transactions recorded on the Singapore Exchange (DBS Land share price and turnover prior to 21 November 2000). Note 2: Earnings are based on Group profit/(loss) after tax, minority interests and extraordinary items. Note 3: In calculating dividend yield and net price-earnings ratio, average share prices have been used.

N.M.: Not meaningful.

* Source: Bloomberg AR01 (Rew pg 52-64) FA 22/3/02 5:14 PM Page 63

BUILDING FOR LASTING VALUE ECONOMIC VALUE ADDED STATEMENTS

ECONOMIC VALUE ADDED STATEMENTS 63

Note 2001 2000 PAGE S$ million S$ million Net Operating Profit Before Tax (49.0) (103.8)

Adjusted for: Share of associated companies, joint venture companies and partnerships’ profits/(losses) 21.8 (8.5) Interest expense 1 551.0 495.4 Others 51.9 75.2

Adjusted Profit Before Interest and Tax 575.7 458.3 Cash operating taxes 2 (252.1) (253.5)

Net Operating Profit After Tax (NOPAT) 3 323.6 204.8

Average capital employed 4 16,971.2 16,154.7 Weighted average cost of capital (%) 5 8.52 10.10

Capital Charge 1,446.0 1,631.6

Economic Value Added (1,122.4) (1,426.8)

Note 1: Interest expense is adjusted for interest expense capitalised in previous years now released to the profit and loss.

Note 2: The reported current tax is adjusted for the statutory tax impact of interest expense.

Note 3: NOPAT includes divestment gains of $620M (2000: $25M) and provisions of $712M (2000: $354M).

Note 4: Average total assets are derived after deducting non-interest bearing liabilities and adding back timing provision, goodwill amortised, unusual gain/(loss) items and present value of operating leases. Any increases or decreases in the market values of investment properties from their historical/acquisition costs are excluded in the determination of average total assets.

Note 5: The Weighted Average Cost of Capital is calculated in accordance with Singapore Technologies (ST) Group EVA Policy as follows: i) Cost of Equity using Capital Asset Pricing Model with market risk premium at 7.0% (2000: 7.0%) (with reference to the returns of various MSCI Indices from 1987 to 2000). ii) Risk-free rate of 4.12% (2000: 4.57%) based on yield-to-maturity of Singapore Government 10-year Bonds. iii) Ungeared beta of 0.70 to 0.85 (2000: 1.0) based on ST risk categories for CapitaLand’s strategic business units. iv) Cost of debt at 4.58% (2000: 5.25%) (using 5-year Sing$ swap offered rate + 75 basis points).

Note: 2000 comparative figures have been restated to conform with requirements arising from implementation of new/revised accounting standards during the year. AR01 (Rew pg 52-64) FA 22/3/02 5:14 PM Page 64

CAPITALAND ANNUAL REPORT 2001 VALUE ADDED STATEMENTS

64 VALUE ADDED STATEMENTS

PAGE PAGE 2001 2000 S$ million S$ million Value Added From: Revenue earned 3,367.9 2,921.7 Less bought in materials and services (2,806.6) (1,814.5) Gross Value Added 561.3 1,107.2

Share of associated companies, joint venture companies and partnerships’ profits/(losses) 21.8 (8.5) Exchange gains 10.0 0.7 Other operating income/(expense) 535.7 (294.1) 567.5 (301.9) Total Value Added 1,128.8 805.3

Distribution: To employees in wages, salaries and benefits 403.7 300.2 To government in taxes & levies 167.1 152.7 To providers of capital in: – Net interest on borrowings 433.3 410.0 – Dividends to shareholders 38.0 48.2 1,042.1 911.1

Balance Retained in the Business: Depreciation and amortisation 161.7 120.3 Retained losses (275.0) (287.0) Minority interests 142.4 53.0 29.1 (113.7)

Non-production Cost and Income Bad debts and provision of doubtful debts 57.6 7.9 Total Distribution 1,128.8 805.3

Productivity Analysis: Value added per employee (S$’000)* 42 121 Value added per dollar of employment costs (S$) 1.38 3.68 Value added per dollar investment in fixed assets (S$) 0.25 0.51

* Based on Dec 2001 headcount of 13,296 (2000: 9,168).

Note: 2000 comparative figures have been restated to conform with requirements arising from implementation of new/revised accounting standards during the year. CL fin'l(pg65-186)proof525/3/023:44PMPage65 BUILDING FOR Statutory Accounts Statutory 101 99 96 95 94 93 92 66 Contents Notes To TheFinancialStatements Consolidated StatementOfCashFlows Statements ofChangesInEquity Profit AndLossAccounts Balance Sheets Report oftheAuditors Statement ByDirectors Directors’ Report LASTING VALUE STATUTORY ACCOUNTS

PAGE 65 CL fin'l(pg65-186)proof525/3/023:44PMPage66

PAGE 66 a CompaniesIncorporated (a) Acquisitions andDisposalsofInterests inSubsidiaries There havebeennosignificant changesintheactivitiesofGroup oroftheCompanyduringfinancialyear. The principalactivitiesofthesubsidiariesare setoutinnote49totheaccompanyingfinancialstatements. management supportservicesandintegratestheactivitiesofitssubsidiaries. management andrelated agencyandconsultancyservicesaswellthecorporateheadquarterswhichgivesdirection, provides The principalactivitiesoftheCompanyduringfinancialyearare thoserelating toinvestmentholding,theprovision ofpro Principal Activities Lucien Wong Yuen Kuai Jackson PeterTai Sum SoonLim Ve Lim ChinBeng Hsieh FuHua (Appointedon18December2001) Sir AlanCockshaw Liew MunLeong Peter SeahLimHuat Hsuan Owyang Philip Yeo LiatKok The directors inoffice atthedateofthisreport are asfollows: Directors financial statementsoftheGroup andoftheCompanyforfinancialyearended31December2001. On behalfofallthedirectors oftheCompany, weare pleasedtosubmitthisannualreport tothememberstogetherwithaud Directors’ Report CAPITALAND r non RLoucksJr. utaadIdsra o 0PyLmtd63.2% 63.2% 63.2% 63.2% 63.2% 63.2% 63.2% 63.2% 63.2% 63.2% Australand IndustrialNo.10PtyLimited Australand IndustrialNo.9PtyLimited Australand IndustrialNo.8PtyLimited Australand IndustrialNo.7PtyLimited 63.2% 63.2% 63.2% Australand IndustrialNo.6PtyLimited Australand IndustrialNo.5PtyLimited 63.2% Effective interest heldbytheGroup Australand IndustrialNo.4PtyLimited 63.2% Australand IndustrialNo.3PtyLimited 63.2% 100.0% Australand IndustrialNo.2PtyLimited 63.2% Australand IndustrialPtyLimited 100.0% Australand IndustrialConstructionsPtyLimited Australand HoldingsCustodianPtyLimited Australand Apartments(Qld)PtyLimited Australand ApartmentsNo.4PtyLimited Australand ApartmentsNo.3PtyLimited Australand ApartmentsNo.2PtyLimited Australand ApartmentsNo.1PtyLimited CapitaLand ResidentialSingapore PteLtd Castle StarDevelopmentsLimited Incorporated bySubsidiaries During thefinancialyear, thefollowingsubsidiarieswere incorporated: ANNUAL REPORT 2001 DIRECTORS’ REPORT perty ited CL fin'l(pg65-186)proof525/3/023:44PMPage67 BUILDING FOR RMSEvrnPeLd60.0% 100.0% 50.0% 62.5% 87.0% 68.9% 60.1% 100.0% 100.0% duringtheyear.# CCL OfficePteLtdwasincorporatedasawholly-ownedsubsidiary Thesubsequentdilutionispresentedin(f) Ascott Property Management(Beijing)Co.,Ltd PREMAS Technologies PteLtd 100.0% 63.2% PREMAS Environ PteLtd 63.2% Raffles Corporation(Switzerland)PteLtd 63.2% CR HotelInvestmentPteLtd 63.2% 100.0% CCL Office PteLtd# 63.2% SingMall Property Trust ManagementLtd 63.2% SingMall Property Trust 63.2% 63.2% Pyramex InvestmentsPteLtd 63.2% CapitaLand Commercial KabushikiKaisha 63.2% CapitaLand ChinaHoldings(Commercial) PteLtd 63.2% W Elizabeth Street PtyLtd Melbourne ApartmentDevelopmentsPtyLimited Melbourne Freshwater No.9PtyLimited Freshwater No.8PtyLimited 63.2% Freshwater No.7PtyLimited 63.2% Freshwater No.6PtyLimited Freshwater No.5PtyLimited 63.2% Freshwater No.4PtyLimited 63.2% 63.2% Freshwater No.3PtyLimited 63.2% Freshwater No.2PtyLimited Freshwater No.1PtyLimited Braeside Property DevelopmentsPtyLimited 63.2% 63.2% 63.2% Australand WholesaleInvestmentsNo.4Limited 63.2% Australand WholesaleInvestments(No.3)Limited A A Platinum Street PtyLimited 63.2% 63.2% Australand ApartmentNomineesNo.2PtyLimited 63.2% Australand ApartmentNomineesPtyLimited 63.2% 63.2% Nexus ApartmentsPtyLimited 63.2% Macleay ApartmentHoldingsPtyLimited 63.2% Atchison Street PtyLimited 63.2% Australand ApartmentsPtyLimited 63.2% PtyLimited Australand ManagementServices(Vic) 63.2% Australand IndustrialProjects PtyLimited 63.2% Australand IndustrialNo.25PtyLimited 63.2% Australand IndustrialNo.24PtyLimited Effective interest heldbytheGroup 63.2% Australand IndustrialNo.23PtyLimited 63.2% Australand IndustrialNo.22PtyLimited 63.2% Australand IndustrialNo.21PtyLimited 63.2% Australand IndustrialNo.20PtyLimited 63.2% Australand IndustrialNo.19PtyLimited Australand IndustrialNo.18PtyLimited Australand IndustrialNo.17PtyLimited Australand IndustrialNo.16PtyLimited Australand IndustrialNo.15PtyLimited Australand IndustrialNo.14PtyLimited Australand IndustrialNo.13PtyLimited Australand IndustrialNo.12PtyLimited Australand IndustrialNo.11PtyLimited Incorporated bySubsidiaries P o2Cntuto iac t iie 63.2% 63.2% WPT No2PostConstructionFinancePtyLimited WPT No2ConstructionFinancePtyLimited le 9&1 tg BPyLd63.2% alker W9&10Stage4BPtyLtd LASTING VALUE DIRECTORS’ REPORT below.

PAGE 67 CL fin'l(pg65-186)proof525/3/023:44PMPage68

PAGE 68 )Trusts Formed b) CAPITALAND rytnsN.3Ui rs 63.2% 63.2% 63.2% 63.2% Greystanes No.3UnitTrust 63.2% 63.2% Greystanes No.2UnitTrust 63.2% Greystanes No.1UnitTrust 63.2% 63.2% Tr Tr Tr Tr 63.2% Tr 63.2% 63.2% Tr 63.2% Tr 63.2% Industrial Project No.5UnitTrust 63.2% 63.2% Industrial Project No.4UnitTrust 63.2% 63.2% Industrial Project No.3UnitTrust 63.2% Industrial Project No.2UnitTrust 63.2% Outer HarbourUnitTrust 63.2% 63.2% Bullecourt PlaceUnitTrust 63.2% 63.2% No 40–46AtchisonStreet UnitTrust 63.2% Apartment Project No.10Unit Trust 63.2% Apartment Project No.9UnitTrust 63.2% Apartment Project No.8UnitTrust Apartment Project No.7UnitTrust Apartment Project No.4UnitTrust 63.2% Apartment Project No.3UnitTrust Apartment Project No.2UnitTrust Macleay Street UnitTrust Street UnitTrust Ferndell 63.2% Stanton RoadNo.2UnitTrust Stephen RoadNo.2UnitTrust 63.2% Minto No.6UnitTrust 63.2% Minto No.5UnitTrust 63.2% Minto No.4UnitTrust 63.2% Minto No.3UnitTrust 63.2% Minto No.2UnitTrust Minto No.1UnitTrust 63.2% The Broadbeach UnitTrust 63.2% 63.2% Australand WholesaleProperty Trust No.7 63.2% Australand WholesaleProperty Trust No.6 63.2% Australand WholesaleProperty Trust No.5 63.2% Australand WholesaleProperty Trust No.4 63.2% 63.2% Australand WholesaleProperty Trust No.3 Effective interest heldbytheGroup Roy Street UnitTrust Apartment Project (Non-MOF)No.5UnitTrust 63.2% Apartment Project (Non-MOF)No.4UnitTrust 63.2% Apartment Project (Non-MOF)No.3UnitTrust 63.2% Apartment Project (Non-MOF)No.2UnitTrust 63.2% Apartment Project (Non-MOF)No.1UnitTrust 63.2% Beaudesert RoadUnitTrust 63.2% Mandible Street UnitTrust The IndustrialProject (Non-MOF)No.5UnitTrust The IndustrialProject (Non-MOF)No.4UnitTrust The IndustrialProject (Non-MOF)No.3UnitTrust The IndustrialProject (Non-MOF)No.2UnitTrust The IndustrialProject (Non-MOF)No.1UnitTrust Rudd Street UnitTrust Stradbroke Street UnitTrust Formed bySubsidiaries s rjc o 2Ui rs 63.2% 63.2% 63.2% 63.2% 63.2% 63.2% 63.2% ust Project No.12UnitTrust ust Project No.11UnitTrust ust Project No.10UnitTrust ust Project No.9UnitTrust ust Project No.8UnitTrust ust Project No.7UnitTrust ust Project No.6UnitTrust ANNUAL REPORT 2001 DIRECTORS’ REPORT CL fin'l(pg65-186)proof525/3/023:44PMPage69 BUILDING FOR c CompaniesAcquired (c) e CompaniesDisposed (e) AdditionalInterest Acquired (d) exchange translationloss,was$12.9millionatthedisposaldate. sale considerationreceived was$14.3millionandtheGroup’s share ofnettangibleliabilitiesdisposedof,includingforeign three overseashotels,namelytheSuzhouSheratonHotel,MeritusWestlake HotelinHanoiandEquatorialYangon. Ne The Companydisposedofitsentire equityinterests intheabovesubsidiarieswhichare theintermediateholdingcompaniesfor SGN Investment&DevelopmentPteLtd opne ipsdCnieain(iblte)dsoe fbefore andafterdisposal (liabilities)disposedof Consideration Companies disposed Ya Suten Investment&DevelopmentPteLtd Subsidiary acquired Name of uinIvsmnsPeLd45652100– – – 100.0 63.2 502 * 98.1 (359) 4,586 * 22 * Lessthan$1,000. 68.9 T Sovereign Management(Qld)Pty Limited Fusion InvestmentsPteLtd Beijing EnctechElectronic Technology Ltd By subsidiaries 51.7 (12) # Intermediateholdingcompaniesforthreeoverseashotels. 68.9 68.9 60.1 afteradditionalacquisition * * 254,699 (liabilities)acquired * Consideration 288,662 * A$7,830 PID InvestmentsPteLtd By theCompany Companies disposed * Lessthan$1,000. Somerset (Australia)PteLtd acquired bysubsidiaries additional interests were Companies inwhich * Lessthan$1,000. Swissôtel HoldingAG Oakford AustraliaPtyLtd Ascott Group (Jersey)Limited Acquired bysubsidiaries The followingsubsidiarieswere acquired duringthefinancialyear: lvr ern t iie 32– 63.2 * * alavera HerringPtyLimited –Y –W – ngon InvestmentPteLtd uhuWgn oe o,Ld8. – 82.7 Suzhou Wugong HotelCo.,Ltd angon HotelLimited slk nentoa opn 19– 61.9 Company estlake International LASTING VALUE # # # # DIRECTORS’ REPORT ’0 ’0 eoe%After% Before % $’000 $’000 ’0 ’0 eoe%After% Before % $’000 $’000 e agbeast/Group’s effective interest net tangibleassets/ e agbeast/Group’s effective interest before and net tangibleassets/ osdrto laiiis curdinterest (liabilities)acquired Consideration Group’s share of Group’s share of ’0 ’0 % $’000 $’000 e agbeast/effective net tangibleassets/ ru’ hr f Group’s Group’s share of eoe%After% Before % 0. – – 100.0 100.0 46– 84.6 90– – 89.0 82.5 before andafterdisposal Group’s effective interest t

PAGE 69 CL fin'l(pg65-186)proof525/3/023:44PMPage70

PAGE 70 The results oftheGroup andoftheCompanyforfinancialyearwere asfollows: Financial Results Ls)Pot vial o prpito 3576 308,101 269,776 (315,766) (378,797) 39,032 (275,046) (Accumulated losses)/Unappropriated profits carriedforward 231,057 (61,577) Appropriations: (Loss)/Profits availableforappropriation Effect ofadoptingaccountingstandards: (Accumulated losses)/Unappropriated profits brought forward, aspreviously reported (Loss)/Profit attributabletoshareholders Minority interests (Loss)/Profit aftertaxation CompaniesLiquidated/Deregistered (g) DilutionofInterest (f) CAPITALAND Acmltdlse)Uaporae rfisbogtfrad srsae 4,2)269,069 (40,720) (Accumulated losses)/Unappropriated profits brought forward, asrestated Street UnitTrust andWalters RoadUnitTrust. Arisingtherefrom, thesecompanieshadbeenreclassified asinvestments. No. 2UnitTrust, HenryDeaneBuildingTrust, UnitTrust, Maribyrnong ShettlestonStreet Trust, TheGatewayBuildingTrust, Tra Australand Group alsodilutedits100%interests inAustralandWholesaleProperty Trust, StantonRoadNo.1UnitTrust, SouthPa effective equityinterest intheAustralandGroup atyearendbecame63.2%. shares byvirtueoftheexercise ofoptionsgrantedundertheShare OptionSchemeofAustraland.Arisingtherefrom, theGroup’s In additiontotheabove,AustralandHoldingsLimited(“Australand”),a63.4%ownedsubsidiary, hasissued 964,000 ordinary Companies liquidated/deregistered bysubsidiaries opne nwihitrs a iue ’0 ’0 eoe%After% Before % $’000 $’000 Companies inwhichinterest wasdiluted optltbxpeld**6. 46.8 50.0 60.1 48.0 50.0 50.0 100.0 * W 54.4 Wa 100.0 100.0 Southwold Ltd * * * 100,300 71,172 * # Notapplicable * Lessthan$1,000 109,141 59,874 * T T hospitalitybex pteltd Pidemco Centre PteLtd Adelphi Property PteLtd China ClubInvestmentPteLtd CCL Office PteLtd T is n nldvdn ado %ls a t2.%i epc fya 00(802 (38,012) 38,012 (38,012) 38,012 T First andfinaldividendpaidof2%lesstaxat24.5%inrespect ofyear2000 – SAS34(intangibleassets) – SAS31(provisions) – SAS10(dividendproposed in2000anddeclared in2001) mskTwrLmtd##10090.0 100.0 # # emasek Tower Limited ase ocptlrdmto eev 191 (313) (1,901) ransfer tocapitalredemption reserve ransfer tocapitalreserve incel Properties (Private)Limited le eieta eeomnsPyLmtd6. – 63.2 alker ResidentialDevelopmentsPtyLimited [ formerly knownasRaffles City(Private)Limited krIdsra eeomnsPyLmtd6. – 63.2 lker IndustrialDevelopmentsPtyLimited ANNUAL REPORT 2001 DIRECTORS’ REPORT ] osdrto laiiis ipsdo before andafterdilution (liabilities)disposedof Consideration 8,0 2,0 0127.0 60.1 821,203 984,500 e agbeast/Group’s effective interest net tangibleassets/ Group’s share of 1245 – 39,032 (142,435) (132,611) h ru TheCompany The Group 2,1)– (23,118) 2,0)– (22,005) ,5 – 4,850 25– 32.5 ’0 $’000 $’000 %% Effective interest previously held bytheGroup de rk CL fin'l(pg65-186)proof525/3/023:44PMPage71 BUILDING FOR a IssueofShares (a) Issues ofShares orDebentures statements. Movements inprovisions (includingallowance,impairment,depreciation andamortisation)are assetoutintheaccompanyingfina Movements inreserves duringtheyearare assetoutintheStatementsofChangesEquityforGroup andtheCompany. Movements inReservesorProvisions i)BySubsidiaries (ii) BytheCompany (i) R elyPeLd21000nncmltv To provide additional 2,150,000non-cumulative Subscribers’shares 2ordinary shares of$1each CRL RealtyPteLtd ToCapitaLand ResidentialSingapore provide PteLtd additional 99,500,000ordinary shares of Exercise ofoptionsgranted 934,000ordinary shares issued CapitaLand ChinaHoldingsPteLtd PurposeofIssue To financetheacquisitionof Australand HoldingsLimited Subscribers’shares Descriptionofshares issued 999,999,998ordinary shares of 2ordinary shares ofUS$1each CapitaLand ResidentialLimited Castle StarDevelopmentsLimited Name ofSubsidiaries The followingsubsidiariesissuedtheshares: During thefinancialyear, theCompanydidnotissueanyshares. LASTING VALUE DIRECTORS’ REPORT shareholder’s loan paid bywayofcapitalisation premium of$99pershare fully shares of$1eachissuedata r issued atparforcashfullypaid workingcapital optionplan To provide additional of shareholder’s loan fully paidbywayofcapitalisation workingcapital optionplan premium of$999pershare shares of$1eachissuedata 173,500 redeemable preference shareholder’s loan paid bywayofcapitalisation Exercise underthecompany’s ofoptions granted share $1 eachissuedatparfully underthecompany’s share paid # at A$1.10pershare forcashfully 30,000 ordinary shares issued paid # at A$1pershare forcashfully of shareholder’s loan withintheGroup fully paidbywayofcapitalisation premium of$999pershare residential companies shares of$1eachissuedata 2,000,000 redeemable preference shareholder’s loan by wayofcapitalisation $1 eachissuedatparfullypaid issued atparforcashfullypaid deal rfrne“”workingcapital edeemable preference “A” ncial

PAGE 71 CL fin'l(pg65-186)proof525/3/023:44PMPage72

PAGE 72 CAPITALAND utaadIdsra o t iie riaysaeise tIncorporationof Incorporationof Incorporationof 1ordinary share issuedat Incorporationof 1ordinary share issuedat Australand IndustrialNo.6PtyLimited Incorporationof 1ordinary share issuedat Australand IndustrialNo.5PtyLimited 1ordinary share issuedat Australand IndustrialNo.4PtyLimited 1ordinary share issuedat Incorporationof Incorporationof Australand IndustrialNo.3PtyLimited Incorporationof company Incorporationof Australand IndustrialNo.2PtyLimited 50,001ordinary shares issuedat Incorporationof A$1pershare forcashfullypaid# 1ordinary share issuedat Australand IndustrialConstructionsPtyLimited 1ordinary share issuedat Australand HoldingsCustodianPtyLimited 2ordinary shares issuedat Incorporationof 1ordinary share issuedat Australand Apartments(Qld)PtyLimited Incorporationof Australand ApartmentsPtyLimited Incorporationof No. 2PtyLimited Australand ApartmentsNominees 1ordinary share issuedat Incorporationof 1ordinary share issuedat Australand ApartmentsNomineesPtyLimited Incorporationof Incorporationof 1ordinary share issuedat Australand ApartmentsNo.4PtyLimited PurposeofIssue 1ordinary share issuedat Australand ApartmentsNo.3PtyLimited To provide additional 2ordinary shares issuedat 1ordinary share issuedat ToAustraland ApartmentsNo.2PtyLimited provide additional 1,000,000redeemable preference Australand ApartmentsNo.1PtyLimited workingcapital Descriptionofshares issued 2ordinary shares of$1each Atchison Street PtyLimited issuedatparforcashfullypaid Leonie CourtPteLtd (formerly knownasFabulitePteLtd) Hua JiaHoldingsPteLtd Name ofSubsidiaries ANNUAL REPORT 2001 DIRECTORS’ REPORT $ e hr o ahflypi company company A$1 pershare forcashfullypaid# company A$1 pershare forcashfullypaid# company A$1 pershare forcashfullypaid# company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company company A$1 pershare forcashfullypaid # A$1 pershare forcashfullypaid # A$1 pershare forcash company company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # A$1 pershare forcashfullypaid # workingcapital shareholder’s loan paid bywayofcapitalisation a premium of$99pershare fully “B” shares of$1eachissuedat CL fin'l(pg65-186)proof525/3/023:44PMPage73 BUILDING FOR utaadIdsra o 5PyLmtd1odnr hr suda Incorporationof Incorporationof Incorporationof 1ordinary share issuedat Incorporationof 1ordinary share issuedat Australand IndustrialNo.25PtyLimited Incorporationof 1ordinary share issuedat Australand IndustrialNo.24PtyLimited Incorporationof 1ordinary share issuedat Australand IndustrialNo.23PtyLimited Incorporationof 1ordinary share issuedat Australand IndustrialNo.22PtyLimited Incorporationof 1ordinary share issuedat Australand IndustrialNo.21PtyLimited Incorporationof 1ordinary share issuedat Australand IndustrialNo.20PtyLimited Incorporationof 1ordinary share issuedat Australand IndustrialNo.19PtyLimited Incorporationof 1ordinary share issuedat Australand IndustrialNo.18PtyLimited Incorporationof 1ordinary share issuedat Australand IndustrialNo.17PtyLimited Incorporationof 1ordinary share issuedat Australand IndustrialNo.16PtyLimited Incorporationof 1ordinary share issuedat Australand IndustrialNo.15PtyLimited Incorporationof 1ordinary share issuedat Australand IndustrialNo.14PtyLimited Incorporationof 2ordinary shares issuedat PurposeofIssue Australand IndustrialNo.13PtyLimited Incorporationof 1ordinary share issuedat Australand IndustrialNo.12PtyLimited Incorporationof 1ordinary share issuedat Australand IndustrialNo.11PtyLimited Incorporationof 1ordinary share issuedat Descriptionofshares issued Australand IndustrialNo.10PtyLimited 1ordinary share issuedat Australand IndustrialNo.9PtyLimited 1ordinary share issuedat Australand IndustrialNo.8PtyLimited Australand IndustrialNo.7PtyLimited Name ofSubsidiaries LASTING VALUE DIRECTORS’ REPORT $ e hr o ahflypi company company A$1 pershare forcashfullypaid# company A$1 pershare forcashfullypaid# company A$1 pershare forcashfullypaid# company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # A$1 pershare forcashfullypaid #

PAGE 73 CL fin'l(pg65-186)proof525/3/023:44PMPage74

PAGE 74 CAPITALAND t iie $ e hr o ahflypi company A$1pershare forcashfullypaid# Incorporationof Incorporationof Incorporationof 1ordinary share issuedat Incorporationof 1ordinary share issuedat Incorporationof 1ordinary share issuedat Pty Limited Macleay ApartmentHoldings Incorporationof 1ordinary share issuedat Freshwater No.9PtyLimited Incorporationof 1ordinary share issuedat Freshwater No.8PtyLimited Incorporationof 1ordinary share issuedat Freshwater No.7PtyLimited Incorporationof 1ordinary share issuedat company Freshwater No.6PtyLimited Incorporationof 1ordinary share issuedat company Incorporationof Freshwater No.5PtyLimited A$1pershare forcashfullypaid# 1ordinary share issuedat Freshwater No.4PtyLimited A$1pershare forcashfullypaid# 1ordinary share issuedat Incorporation of company Freshwater No.3PtyLimited 1ordinary share issuedat company Freshwater No.2PtyLimited A$1pershare forcashfullypaid# Incorporationof 1ordinary share issuedat Freshwater No.1PtyLimited A$1pershare forcashfullypaid# Incorporationof company Pty Limited Elizabeth Street Melbourne company 1ordinary share issuedat Incorporationof Pty Limited A$1pershare forcashfullypaid# Braeside Property Developments company 1ordinary share issuedat Finance PtyLimited PurposeofIssue A$1pershare forcashfullypaid# A Incorporationof A$1pershare forcashfullypaid# Finance PtyLimited 1ordinary share issuedat A Investments No.4Limited Australand Wholesale Incorporationof Descriptionofshares issued Investments (No.3)Limited 1ordinary share issuedat Australand Wholesale PtyLimited Services (Vic) Australand Management 1ordinary share issuedat Australand IndustrialPtyLimited Australand IndustrialProjects PtyLimited Name ofSubsidiaries P o2Ps osrcin riaysaeise tIncorporation of Incorporationof 1ordinary share issuedat 1ordinary share issuedat WPT No2PostConstruction WPT No2Construction ANNUAL REPORT 2001 DIRECTORS’ REPORT $ e hr o ahflypi company company A$1 pershare forcashfullypaid# company A$1 pershare forcashfullypaid# company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # A$1 pershare forcashfullypaid # company company A$1 pershare forcashfullypaid # A$1 pershare forcashfullypaid # CL fin'l(pg65-186)proof525/3/023:44PMPage75 BUILDING FOR oes&Rsrs(utaai)PyLd11000odnr hrso To provide additional Subscribers’shares To provide additional Subscribers’shares 1,100,000ordinary shares of 3,599,998ordinary shares of$1each 2ordinary shares of$1each Subscribers’ shares 2ordinary shares of$1each Hotels &Resorts(Australasia)PtyLtd andtoprovide initial Subscribers’shares Raffles Corporation(Switzerland)PteLtd Subscribers’shares 2ordinary shares of$1each hospitalitybex pteltd $1eachissuedatparforcash 2ordinary shares of$1each To provide additional CCL Office PteLtd 1,000,000ordinary shares of andtoprovide initial CR HotelInvestmentPteLtd andtoprovide initial Subscribers’shares 150,000ordinary shares of$1 eachissuedatparforcashfullypaid Pyramex InvestmentsPteLtd acquisitionof Subscribers’shares 200ordinary shares ofJPY50,000 Management Ltd Singmall Property Trust eachissuedatparforcash shares of$1eachissuedata To 100,000ordinary shares of$1 financethe Dahlia Properties PteLtd Kabushiki Kaisha CapitaLand Commercial 500,000redeemable preference Incorporation of (Commercial) PteLtd PurposeofIssue company CapitaLand ChinaHoldings Incorporation of A$1pershare forcashfullypaid# ordinary 1 share issuedat Limited CapitaLand Commercial Incorporationof Descriptionofshares issued 1ordinary share issuedat W Platinum Street PtyLimited 1ordinary share issuedat Nexus ApartmentsPtyLimited Pty Limited ApartmentDevelopments Melbourne Name ofSubsidiaries le 9&1 tg BPyLd10odnr hrsise tIncorporationof 100ordinary shares issuedat alker W9&10Stage4BPtyLtd LASTING VALUE DIRECTORS’ REPORT $ ahise tprworkingcapital capitalisation ofshareholder’s loans fully paidbywayof A$1 eachissuedatpar workingcapital issued atparforcashfullypaid workingcapital issued atparforcashfullypaid issued atparforcashfullypaid issued atparforcashfullypaid issued atparforcashfullypaid working capital workingcapital fully paid fully paid each issuedatparforcash withintheGroup companies fully paid commercial of shareholder’s loan paid bywayofcapitalisation premium of$999pershare fully company company A$1 pershare forcashfullypaid # company A$1 pershare forcashfullypaid # A$1 pershare forcashfullypaid # working capital

PAGE 75 CL fin'l(pg65-186)proof525/3/023:44PMPage76

PAGE 76 b IssueofDebentures (b) CAPITALAND i)Subsidiaries (ii) TheCompany (i) ranging from 1.55%to4.88%perannum. programme entered intoin1999.TheMTNswere issuedfor tenures rangingfrom 1monthto3monthsandcarryinterest rates SH MallsLimited,asubsidiaryoftheGroup, issuedatotalof$66.5millionMTNsin3seriesunder$500MTN to 5.5625%perannum. programme. Thedebtsecuritieswere issuedfortenures ranging from 3to5yearsandcarry interest ratesrangingfrom 1.5% The AscottGroup Limited,asubsidiaryoftheGroup, issued$5millionVariable RateNotesaspartofa$350millionMTN tenures rangingfrom 2yearsto7andcarryinterest ratesrangingfrom 3.30%to4.10%perannum. T and 5.15%to5.70%perannumfortheUSDseries. tenures rangingfrom 1monthtoyearandcarryinterest ratesrangingfrom 2.40%to3.45%perannumfortheSGDseries a $500million10-yearDualCurrency MTNprogramme, whichwasentered intoin1998.Thedebtsecuritieswere issuedfor CapitaLand Commercial Limited,awholly-ownedsubsidiaryoftheCompany, issued$105.08millionofdebtsecuritiesout ranging from 2.65%to4.10% per annum. place inprevious years.Thedebt securitieswere issuedfortenures rangingfrom 3monthsto5yearsandcarryinterest rates A totalof$492.0millionMediumTerm Notes(“MTNs”)were issuedin18seriesunderthedifferent MTNprogrammes putin Biig o,Ldcptlandtoprovide initial effectfrom1July1998,parvalueshareshavebeenabolishedundertheAustralianCompanyLawReviewAct1998. # With Subscribers’shares Subscribers’shares capital To provide additional To provide additional 10,000ordinary shares ofS$1each Registration ofUS$300,000 ConversionofDM4,000,000 PREMAS Technologies PteLtd PurposeofIssue ConversionofEuro (Beijing) Co.,Ltd To provide additional Ascott Property Management V To 1,000,000ordinary provide shares additional of$1each Hotel “VietJahreszeiten” Descriptionofshares issued 800,000ordinary shares of£1each Swissôtel BerlinGmbH Limited Raffles International Hotels &Resorts(UK)Ltd Name ofSubsidiaries RMSEvrnPeLd3800odnr hrso $ ahSubscribers’shares 378,000ordinary shares ofS$1each PREMAS Environ PteLtd emasek Tower Limited,asubsidiaryoftheGroup, issued$48millionMTNin7 series.Thedebtsecuritieswere issuedfor nFidihHelnGb hrhle’ ont aia eevsworkingcapital shareholder’s loantocapitalreserves an FriedrichHaerlinGmbH ANNUAL REPORT 2001 DIRECTORS’ REPORT suda a o ahflypi andtoprovide initial issued atparforcashfullypaid workingcapital loan tocapitalreserves workingcapital 4,300,000 shareholder’s capitalisation ofshareholder’s loans workingcapital issued atparfullypaidbywayof capitalisation ofshareholder’s loans issued atparfullypaidbywayof n sesaqie undertakingandassets purchase ofbusiness tofinancethe workingcapitaland and assetsacquired andtoprovide initial transfer ofbusinessundertaking issued atparfullypaidbywayof 252,000 ordinary shares ofS$1each issued atparforcashfullypaidand working capital working capital CL fin'l(pg65-186)proof525/3/023:44PMPage77 BUILDING FOR Except asdisclosedunderthe“Share Options”sectionofthisreport, neitherattheendofnoranytimeduringfinancial Arrangements toEnableDirectors toAcquire Shares andDebentures – – – Liew MunLeong – – Hsuan Owyang – – Philip Yeo LiatKok Peter SeahLimHuat The Company Except asdisclosedinthisreport, nodirector whoheldoffice attheendoffinancialyearhadinterests inshares, debentu Directors' Interests inShares andDebentures acquire benefitsbymeansoftheacquisitionshares inordebentures oftheCompanyoranyotherbodycorporate. the Companyapartytoanyarrangementwhoseobjectsare, oroneofwhoseobjectsis,toenablethedirectors oftheCompanyto particulars ofinterests ofdirectors whoheldoffice attheendoffinancialyearinshares, debentures andshare optionsin According totheregister keptbytheCompanyforpurposesofSection164CompaniesAct,Chapter50(the“Act”), at theendoffinancialyear. share optionsoftheCompany orofrelated corporationseitheratthebeginningoffinancialyear(ordateappointment,i Company andrelated corporationsare asfollows: ta xriepieo 25 e hr 800,000 50,000* – 1,077,000 220,000 50,000* 100,000* 1,077,000 150,000 – 107,700 100,000* – at anexercise priceof$2.50pershare Exercisable between19/6/2002to18/6/2011 107,700 at anexercise priceof$2.51pershare Exercisable between5/8/2001to3/8/2005 at anexercise priceof$2.54pershare Exercisable between13/6/2001to11/6/2010 at anexercise priceof$2.50pershare Exercisable between19/6/2002to18/6/2006 at anexercise priceof$2.51pershare Exercisable between5/8/2001to3/8/2005 at anexercise priceof$2.50pershare Exercisable between19/6/2002to18/6/2006 at anexercise priceof$2.54pershare Exercisable between13/6/2001to11/6/2005 subsidiaries are redeemable attheirprincipalamountsonrespective maturitydates. Unless previously redeemed orpurchased andcancelled,alltheabove-mentioneddebtsecuritiesissuedbyCompany r All theinterest rateswere agreed betweentheCompany/subsidiariesandarrangerorremarketing agentatthetimeof 2.0% to3.125%perannum. October 2000.Thedebtsecuritieswere issuedfortenures rangingfrom 1to3monthsandcarryinterest ratesrangingfrom Fixed RateNotesin19seriesaspartofa$168millionsecured MTNprogramme whichhasa10-year durationfrom 30 Junction 8Limited(formerlyknownasVentura (Bishan)Limited),asubsidiaryoftheGroup, issued$422millionShortTerm espective issues. LASTING VALUE DIRECTORS’ REPORT At beginningoftheyear/ aeo ponmn Atendoftheyear date ofappointment Ordinary shares of$1eachfullypaid 1,0 113,000 113,000 Ordinary shares of$1each Holdings inthenameofdirector, Options tosubscribefor spouse and/orinfantchildren

the r

f later)or es or year was

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PAGE 78 – – Lucien Wong Yuen Kuai – – Jackson PeterTai – – – Sum SoonLim – – Ve – – Lim ChinBeng – – Hsieh FuHua – – Sir AlanCockshaw CAPITALAND ta xriepieo 25 e hr 100,000 53,850 170,000 – 50,000* 53,850 150,000 – 80,000* 50,000* – 107,700 50,000 80,000* at anexercise priceof$2.50pershare 53,850 Exercisable between19/6/2002to18/6/2006 107,700 120,000 at anexercise priceof$2.54pershare – Exercisable between13/6/2001to11/6/2005 at anexercise priceof$2.50pershare Exercisable between19/6/2002to18/6/2006 140,010 53,850 120,000 at anexercise priceof$2.51pershare – Exercisable between5/8/2001to3/8/2005 at anexercise priceof$2.50pershare Exercisable between19/6/2002to18/6/2006 107,700 140,010 220,000 at anexercise priceof$2.51pershare – Exercisable between5/8/2001to3/8/2005 at anexercise priceof$2.54pershare Exercisable between13/6/2001to11/6/2005 204,630 107,700 at anexercise priceof$2.50pershare – Exercisable between19/6/2002to18/6/2006 at anexercise priceof$2.54pershare Exercisable between13/6/2001to11/6/2005 204,630 at anexercise priceof$2.50pershare Exercisable between19/6/2002to18/6/2006 at anexercise priceof$2.54pershare Exercisable between13/6/2001to11/6/2005 at anexercise priceof$2.50pershare Exercisable between19/6/2002to18/6/2006 at anexercise priceof$2.54pershare Exercisable between13/6/2001to11/6/2005 at anexercise priceof$2.50pershare Exercisable between19/6/2002to18/6/2006 at anexercise priceof$2.54pershare Exercisable between13/6/2001to11/6/2005 r non RLoucksJr. ANNUAL REPORT 2001 DIRECTORS’ REPORT At beginningoftheyear/ aeo ponmn Atendoftheyear date ofappointment Holdings inthenameofdirector, spouse and/orinfantchildren CL fin'l(pg65-186)proof525/3/023:44PMPage79 BUILDING FOR ebopIdsre t Ordinary shares of$0.25eachfullypaid Ordinary shares of$0.50eachfullypaid Philip Yeo LiatKok SembCorp IndustriesLtd – Liew MunLeong Sir AlanCockshaw Liew MunLeong Raffles HoldingsLimited – – – – – Ordinary shares of$0.26eachfullypaid – – – Sum SoonLim Sum SoonLim Philip Yeo LiatKok Chartered SemiconductorManufacturingLtd Related Corporations ta xriepieo 05 e hr 100,000 – 40,000 40,000 – 80,000 – 80,000 20,000 80,000 60,000 at anexercise priceof$0.50pershare 80,000 Exercisable between16/8/2002to15/8/2011 35,720 20,000 14,288 60,000 at anexercise priceof$4.99pershare 35,720 Exercisable between15/8/2002to15/8/2006 at anexercise priceof$4.74pershare 14,288 Exercisable between28/3/2002to28/3/2006 at anexercise priceof$11.86pershare Exercisable between3/10/2001to3/10/2005 at anexercise priceof$16.69pershare Exercisable between6/4/2001to6/4/2005 at anexercise priceof$3.344pershare Exercisable between29/10/2000to29/10/2004 at anexercise priceof$3.344pershare Exercisable between29/4/2000to29/10/2004 at anexercise priceof$0.9309pershare Exercisable between7/10/1999to7/10/2004 at anexercise priceof$1.0922pershare Exercisable between7/10/1999to7/10/2004 LASTING VALUE DIRECTORS’ REPORT At beginningoftheyear/ aeo ponmn Atendoftheyear date ofappointment 9,2 194,425 194,425 Ordinary shares of$0.50each Ordinary shares of$0.26each 00030,000 50,000 30,000 50,000 40,000 40,000 Holdings inthenameofdirector, Options tosubscribefor Options tosubscribefor 7 475 475 spouse and/orinfantchildren

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PAGE 80 uinWn unKa 000– 40,000 Ordinary shares of$0.10eachfullypaid Ordinary shares of$0.15 eachfullypaid Lucien Wong Yuen Kuai – Liew MunLeong SMRT CorporationLtd Lucien Wong Yuen Kuai Jackson PeterTai Sum SoonLim Lim ChinBeng Hsieh FuHua Liew MunLeong Peter SeahLimHuat 25,000 Philip Yeo LiatKok Singapore Telecommunications Limited Ordinary shares of$0.10eachfullypaid Ordinary shares of$0.50eachfullypaid Ordinary shares of$0.05eachfullypaid – Lucien Wong Yuen Kuai – Sum SoonLim – Lim ChinBeng Philip Yeo LiatKok Singapore Technologies EngineeringLtd Liew MunLeong Philip Yeo LiatKok Singapore FoodIndustriesLimited Lucien Wong Yuen Kuai Singapore AirlinesLtd – – Peter SeahLimHuat CAPITALAND ta xriepieo 27 e hr 75,000 25,000 – 35,000 – – 140,000 at anexercise priceof$2.72pershare Exercisable between20/2/2002to19/2/2006 140,000 at anexercise priceof$2.72pershare Exercisable between20/2/2002to19/2/2006 140,000 at anexercise priceof$2.72pershare 140,000 Exercisable between20/2/2002to19/2/2006 at anexercise priceof$1.55pershare Exercisable between20/4/2002to19/4/2006 at anexercise priceof$1.99pershare Exercisable between27/6/2001to26/6/2005 ANNUAL REPORT 2001 DIRECTORS’ REPORT At beginningoftheyear/ aeo ponmn Atendoftheyear date ofappointment Ordinary shares of$0.10each Ordinary shares of$0.25each 00030,000 30,000 30,000 50,000 30,000 50,000 Holdings inthenameofdirector, ,0 4,000 3,110 3,510 1,490 3,510 5,470 4,000 3,310 1,200 3,110 3,510 1,490 3,510 5,470 3,310 1,200 4,000 4,000 Options tosubscribefor Options tosubscribefor spouse and/orinfantchildren CL fin'l(pg65-186)proof525/3/023:44PMPage81 BUILDING FOR Sum SoonLim Sum SoonLim Ve – – Liew MunLeong 30,000 – – Lim ChinBeng The AscottGroup Limited 30,000 – – – Sum SoonLim Ordinary shares of$0.25eachfullypaid STT CommunicationsLtd – – – Sum SoonLim Lucien Wong Yuen Kuai Sum SoonLim Liew MunLeong Philip Yeo LiatKok ST AssemblyTest ServicesLtd ta xriepieo 03 e hr 120,000 150,000 200,000 – 200,000 150,000# – 70,000 35,000 200,000# – 300,000 – – at anexercise priceof$0.32pershare Exercisable between29/6/2002to28/6/2011 – at anexercise priceof$0.37pershare 300,000 Exercisable between20/12/2001to19/12/2010 – at anexercise priceof$0.32pershare Exercisable between29/6/2002to28/6/2006 40,000 at anexercise priceof$0.37pershare Exercisable between20/12/2001to19/12/2005 10,000 50,000 at anexercise priceof$0.50pershare Exercisable between24/11/2002to23/11/2011 at anexercise priceof$0.92pershare Exercisable between28/4/2002to27/4/2011 at anexercise priceof$1.42pershare Exercisable between19/9/2001to18/9/2010 at anexercise priceof$6.93pershare Exercisable between20/4/2001to19/4/2010 at anexercise priceof$0.25pershare Exercisable between9/2/2000to9/12/2009 at anexercise priceof$0.42pershare Exercisable between9/2/2000to9/12/2009 txTcnlg udLdOrdinary shares ofUS$1eachfullypaid rtex Technology FundLtd LASTING VALUE DIRECTORS’ REPORT At beginningoftheyear/ aeo ponmn Atendoftheyear date ofappointment Redeemable preference shares of Ordinary shares of$0.25each Ordinary shares of$0.20each Ordinary shares of$0.50each 500155,000 13,000 35,000 95,000 13,000 35,000 Holdings inthenameofdirector, Options tosubscribefor Options tosubscribefor Options tosubscribefor US$0.01 eachfullypaid 0 300 300 spouse and/orinfantchildren 5– 15

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PAGE 82 the valuesattributabletocurrent assetsintheconsolidatedfinancialstatementsmisleading. At thedateofthisreport, thedirectors are notaware ofanycircumstances nototherwisedealtwithinthisreport whichwoul down totheirestimatedrealisable valuesandthatadequateprovision hasbeenmadeforthediminutioninvalueofsuchcurrent that current assetsoftheCompanywhichwere unlikelytorealise theirbookvaluesintheordinary courseofbusinesshavebee Before theprofit andlossaccountthebalancesheetofCompanywere madeout,thedirectors tookreasonable stepstoen Current Assets provided fordoubtfuldebtsintheGroup inadequatetoanysubstantialextent. At thedateofthisreport, thedirectors are notaware ofanycircumstances whichwouldrender anyamountswrittenoff forbad debts. have satisfiedthemselvesthatallknownbaddebtsbeenwrittenoff andthatadequateprovision hasbeenmadefordoubtful ascertain whatactionhadbeentakeninrelation towritingoff baddebtsandproviding fordoubtfuldebtsoftheCompany. The Before theprofit andlossaccountthebalancesheetofCompanywere madeout,thedirectors tookreasonable stepsto Bad andDoubtfulDebts ($3,146,534) andUS$1,753,750($3,186,564)respectively. each year. Accordingly, theCompanyhadinJune2001andDecemberpaidnetdividendof2%amountingtoUS$1,734,583 US$1.00 eachon31December2001.UnderthetermsofRCCPS,dividendswere payabletwiceayearinJuneandDecemberof In addition,theCompanyhasredeemed 172,5002%RedeemableConvertibleCumulativePreference Shares (“RCCPS”)due2001of r financial yearasproposed inthedirectors’ report ofthatyear. Nointerimdividendhasbeenpaidinrespect ofthefinancialy Since theendofprevious financialyear, theCompanyhaspaidanetfinaldividendof$38,011,983inrespect oftheprevious Dividends the financialyearand21January2002. There wasnochangeinanyoftheabove-mentioneddirectors’ interests intheCompanyandrelated corporationsbetweentheend * These wereoptionsintheformerDBSLandLimitedwhichexchanged foroptionsinCapitaLandLimitedon24November2000 Liew MunLeong Ve Sum SoonLim Liew MunLeong Philip Yeo LiatKok Sum SoonLim Liew MunLeong Philip Yeo LiatKok Ve CAPITALAND # The options were offered in December 2000 and accepted in January 2001. # TheoptionswereofferedinDecember2000andacceptedJanuary eview. Thedirectors nowrecommend thepaymentofafinaldividend3%lesstaxat24.5%amountingto$57,017,975. of themergerbetweenDBSLandLimitedandCapitaLandLimited. txVnueHlig t Ordinary shares of$0.20eachfullypaid Ordinary shares ofUS$1eachfullypaid rtex Venture HoldingsLtd rtex Technology Fund(II)Ltd ANNUAL REPORT 2001 DIRECTORS’ REPORT At beginningoftheyear/ aeo ponmn Atendoftheyear date ofappointment Redeemable preference shares of Holdings inthenameofdirector, US$0.01 eachfullypaid 0 500 100 500 100 500 100 500 100 spouse and/orinfantchildren 050 50 50 50 – 4,690

in accordance withtheterms in accordance ear under d render directors n written

debts or assets. of sure CL fin'l(pg65-186)proof525/3/023:44PMPage83 BUILDING FOR r Since theendofprevious financialyear, exceptasdisclosedintheaccompanyingnotestofinancialstatements,nodirec Directors' Interest inContracts Company forthefinancialyearinwhichthisreport ismade. of thefinancialyearanddatethisreport whichislikelytoaffect substantiallytheresults oftheoperations oftheG In theopinionofdirectors, noitem,transactionoreventofamaterialandunusualnature hasarisenintheintervalbetw and unusualnature hassubstantiallyaffected theresults oftheoperationsGroup oroftheCompanyduringfinancial In theopinionofdirectors, exceptasdisclosedintheaccompanyingfinancialstatements,noitem,transactionoreventof Unusual Items statements whichwouldrender anyamountstatedinthefinancialstatementsofGroup oroftheCompanymisleading. At thedateofthisreport, thedirectors are notaware ofanycircumstances nototherwisedealtwithinthisreport orthefina Other Circumstances Affecting theFinancialStatements substantially affect theabilityofGroup oroftheCompanytomeettheirobligationsasandwhentheyfalldue. enforceable withintheperiodoftwelvemonthsafterendfinancial yearwhich,intheopinionofdirectors, will No contingentliabilityorotheroftheCompanyanycorporationinGroup hasbecomeenforceable orislikelyt Ability toMeetObligations nocontingentliabilityoftheCompanyoranycorporationinGroup hasarisen. (ii) nochargeontheassetsofCompanyoranycorporationinGroup hasarisenwhichsecures theliabilitiesofanyother (i) Since theendoffinancialyear: Charges andContingentLiabilities a CapitaLandShare OptionPlan,PerformanceShare PlanandRestrictedStock2000 (a) Share Options or withafirmofwhichheismembercompanyinhassubstantialfinancial interest. eceived orbecomeentitledtoreceive abenefitbyreason ofacontractmadebytheCompanyorrelated corporationwiththed person; and conditions. only released orvestedafterachievement ofpre-determined targetsand/orafterthesatisfactorycompletionoftime-basedserv Performance Share PlanandRestrictedStockapplyonlytokeyexecutivestheawards grantedunderthesetwoPlansare The Share OptionPlanisthebasic share incentiveschemewhichismore widelyappliedacross theGroup whereas the administration oftheShare Plans.TheCommitteecomprisesthefollowingmembers: The ExecutiveResource andCompensationCommitteeoftheCompanyhasbeendesignated astheCommitteeresponsible forthe Company were approved andadoptedbyitsmembersatanExtraordinary GeneralMeetingheldon16November2000. The Share OptionPlan,Performance Share PlanandRestrictedStock(collectivelyreferred toasthe“Share Plans”)ofthe Mr JacksonPeterTai Mr LimChinBeng Sir AlanCockshaw Mr HsuanOwyang Mr PeterSeahLimHuat(Chairman) LASTING VALUE DIRECTORS’ REPORT r oup orofthe or may een theend ncial o become a material year. tor has irector ice

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PAGE 84 CAPITALAND performance targetcompletiondate. differ from awards grantedunderthePerformanceShare Planinthatanextendedvestingperiodisimposedbeyondthe of thevestingperiodinrespect ofeachaward willbedeterminedonacase-by-casebasis.Performance-basedrestricted awards (performance-based restricted awards). Nominimumvestingperiodsare prescribed undertheRestrictedStockPlanandlength where theaward isperformance-related, afterafurtherperiodofservicebeyondtheperformancetargetcompletiondate Under theRestrictedStockPlan,awards grantedvestonlyafterthesatisfactorycompletionoftime-basedserviceconditionsor beyond theperformanceachievementperiods. A equivalent cashvalueorcombinationsthereof, free ofcharge,upontheparticipantachievingprescribed performancetarget(s). Under thePerformanceShare Plan,awards are granted.Awards represent therightofaparticipant toreceive fullypaidshares, as setoutbelow. Under theShare OptionPlan,optionsare grantedtoeligibleparticipantsexercisable duringacertainperiodandat • The principaltermsoftheShare Plansare: • wards are released oncetheCommitteeissatisfiedthatprescribed target(s)havebeenachieved.There are novestingperio participants priortosuchexpiryorterminationwillcontinueremain valid. Notwithstanding theexpiryorterminationofShare Plans,anyoutstandingoptionsheldbyand/orawards madeto with theapproval ofshareholders ingeneralmeetingandofanyrelevant authoritieswhichmaythenberequired. commencing on16November2000,provided alwaysthattheShare Plansmaycontinuebeyondtheabovestipulatedperiod The Share Plansshallcontinue inforce atthediscretion oftheCommittee,subjecttoamaximumperiod10years day preceding therelevant dateofgrant. Performance Share PlanandRestrictedStockPlan,shallnotexceed15%oftheissuedshare capitaloftheCompanyon number ofnewshares issuedandissuableinrespect ofalloptionsgrantedthereunder andallawards grantedunderthe The totalnumberofnewshares overwhichoptionsmaybegrantedpursuanttotheShare OptionPlan,whenaddedtothe – Non-Executive Directors (otherthanNon-ExecutiveDirectors ofParent Group) who,intheopinionofCommittee,have – Group Executiveswhohaveattainedtheageof21yearsandholdsuchrankasmaybedesignatedbyCommitteefrom In respect ofthePerformanceShare PlanandRestrictedStockPlan,thefollowingpersonsshallbeeligibletoparticipate: – Executives ofParent Group (thatisSingapore Technologies Group) andExecutivesofAssociatedCompanies(overwhichthe – Non-Executive Directors who,intheopinionofCommittee,havecontributedorwillcontributetosuccess – Group Executiveswhohaveattainedtheageof21yearsandholdsuchrankasmaybedesignatedbyCommitteefrom In respect oftheShare OptionPlan,thefollowingpersonsshallbeeligibletoparticipate: Participants oftheShare Plans Plans SizeandDuration ANNUAL REPORT 2001 contributed orwillcontributetothesuccessofGroup; and re foregoing ageandrankcriteriawhoseserviceshavebeensecondedtoacompanywithin theGroup andwhoshallbe time to(includingthoseParent Group ExecutivesandNon-ExecutiveDirectors oftheParent Group whomeetthe the Group. Committee from timetoandwho,intheopinionofCommittee,havecontributedor willcontributetothesuccessof Company hasoperationalcontrol) whohaveattainedtheageof21yearsandholdsuchrankasmaybedesignatedby Group; and time totime; garded asGroup ExecutivesforthepurposesofPerformanceShare PlanandRestrictedStockPlan); DIRECTORS’ REPORT price

their ds CL fin'l(pg65-186)proof525/3/023:44PMPage85 BUILDING FOR • • • • announcement isreleased. sensitive informationismade,optionsmaybegrantedonorafterthefourthMarketDaydaywhichsuch financial results. Intheeventthatanannouncementonanymatterofexceptionalnature involvingunpublishedprice no optionsshallbegrantedduringtheperiodof30daysimmediatelypreceding thedateofannouncementCompany’s Options undertheShare OptionPlanmaybegrantedatanytimeduringtheperiodwhensaidisinforce, exceptthat absolute discretion, tobeeither: The subscriptionpriceforeachshare inrespect ofwhichanoptionisexercisable shallbedeterminedbytheCommittee,inits grant oftherespective options. grant, andinaccordance withavestingscheduleandtheconditions(ifany)tobedeterminedbyCommitteeondateof Options withsubscriptionpriceswhichrepresent adiscounttotheMarketPricemaybeexercised twoyearsafterthedateof determined bytheCommitteeondateofgrantrespective options. exercised oneyearafterthedateofgrant,andinaccordance withavestingscheduleand theconditions(ifany)tobe Under theShare OptionPlan,optionswithsubscriptionpriceswhichare equalto,orhigherthan,theMarketPricemaybe Plan. Non-Executive Directors ofParent Group shallnotexceed20%ofthetotalnumbershares availableundertheShare Option Option Plan,theaggregate numberofshares whichmaybeoffered bywayofgrantoptionstoParent Group Executivesand The Share Plansprovide thatthenumberofoptionsorawards tobegranteddiscretionary. However, undertheShare eligible toparticipateinalltheShare Plans. Persons whoare theCompany’s controlling shareholders ortheirassociatesasdefinedintheSGX-STListingManualare not – Executives ofAssociatedCompanieswhohaveattainedtheage21yearsandholdsuchrankasmaybedesignatedby Grant ofOptions The subscriptionpriceshall,innoevent,belessthanthenominalvalueofCompanyshare. – a pricewhichissetatdiscounttotheMarketPrice,quantumofsuchbedetermined bytheCommitteein – a pricewhichisequaltothevolume-weightedaverageforCompanyshares ontheSGX-SToverthree Subscription Price Exercise Period Maximum Entitlements success oftheGroup. the Committeefrom timetoandwho,intheopinionofCommittee,havecontributedorwillcontribute 20% oftheMarketPriceinrespect ofthatoption. its absolutediscretion, provided thatthemaximumdiscountwhichmaybegiveninrespect ofanyoptionshallnotexceed may bedeterminedbytheCommitteeinitsabsolutediscretion; or consecutive Trading Daysimmediatelypreceding thedateofgrantthatoption(the“MarketPrice”),orsuchhigherpriceas LASTING VALUE DIRECTORS’ REPORT

PAGE 85 CL fin'l(pg65-186)proof525/3/023:44PMPage86

PAGE 86 b Share OptionsGranted (b) CAPITALAND to anyrightparticipateinshare ofanyothercompany. The optionsgrantedundertheCapitaLandShare OptionPlandonotentitletheholdersofoptions,byvirtue ofsuchholding total numberofshares availableundertheCapitaLandShare OptionPlanduringthefinancialyearunderreview. In respect ofthedifferent categoriesofparticipantslistedabove,noparticipantreceived optionswhichtotalled5%ormore interest rate,expectedvolatilityandlives: is estimatedusingtheBlack-Scholesoption-pricingmodelonbasisoffollowingassumptionsdividendyield,risk-fre Limited andRaffles HoldingsLimited,bothsubsidiariesoftheGroup. Thefairvalueofeachoptiongrantedatthedateg During thefinancialyear, optionswere grantedundertherespective share optionschemesoftheCompany, TheAscottGroup xriepro e hr pinotosyedrt aelives rate Expected rate Volatility interest yield Dividend options Fairvalueof under option price pershare Exercise period Participants and 9620 o1//0625 ,3,0 0,0 .041 97 4.5 39.76 906,400 4.12 4.5 4.5 1,030,000 53.35 1.20 39.46 906,400* 4.12 16,507,131 4.12 4.5 18,784,240 @ 1,030,000 1.60 # * 1.21 2.50 39.76 243,000@ T 86,000# 4.5 4.12 Sub-Total C: 300,000 4.5 19/6/2002 to18/6/2006 39.76 100,000 34 participants 1.85 1.20 1,848,000 C. Parent Group ExecutivesandAssociatedCompanyExecutives: 39.76 4.12 2.49 16,178,131* 2,100,000 Sub-Total B: 4.12 18,384,240 1/1/2003 to31/12/2011 1.20 2.50 1 participant 1.20 1,144,000* 3/7/2002 to2/7/2011 1 participant 704,000* 1,300,000 19/6/2002 to18/6/2011 1,451 participants 2.50 800,000 B. Group Executives: 2.50 Sub-Total A: 19/6/2002 to18/6/2006 9 non-executivedirectors 19/6/2002 to18/6/2011 1 executivedirector A. Directors: The exercise pricesoftheaboveoptionswere setattheMarketPricewithnodiscount. CapitaLand Share OptionPlan: tl2,1,4 19,261,531 21,914,240 otal Fair valueofeachoptiongrantedis$0.81. Fair valueofeachoptiongrantedis$0.86. Fair valueofeachoptiongrantedis$0.88. ANNUAL REPORT 2001 xrieo hrsRisk-free ofshares Exercise DIRECTORS’ REPORT $$ Number %% % of the (years) e rant s, CL fin'l(pg65-186)proof525/3/023:44PMPage87 BUILDING FOR shares intheCompanyoritssubsidiariesduringfinancialyear. Save asdisclosedabove,there were nooptionsgrantedbytheCompanyoritssubsidiariestoanypersontakeupunissued right toparticipateinanyshare ofanyothercompany. The optionsgrantedundertheRaffles Share OptionPlandonotentitletheholdersofoptions,byvirtuesuchholdings,t to anyrightparticipateinshare ofanyothercompany. The optionsgrantedundertheAscottGroup Share OptionPlandonotentitletheholdersof theoptions,byvirtueofsuchholdi xriepro e hr pinotos il aert lives rate Expected Volatility rate interest yield Dividend options* Fairvalueof under option price pershare lives rate Exercise period Expected Participants and Volatility rate interest yield Dividend options* Fairvalueof under option price pershare Exercise period Participants and 6820 o1//0605 ,7,0 0,7 .641 37 3.5 23.71 3.5 4.12 23.71 3.5 3.96 4.12 23.71 3.5 101,872 3.96 4.12 23.71 1,273,400 86,040 4.12 0.50 3.96 * 1,075,500 3.96 546,576 T 0.50 16/8/2002 to15/8/2006 391 participants 32,000 6,832,200 D. AssociatedCompanyExecutives: 0.50 16/8/2002 to15/8/2011 400,000 86 participants C. Parent Group Executives: 4.5 0.50 16/8/2002 to15/8/2011 308 participants 54.0 B. Group Executives: 4.5 16/8/2002 to15/8/2006 3.11 6 participants 54.0 A. Non-ExecutiveDirectors: 2.40 4.5 3.11 54.0 256,936 2.40 3.11 2,022,000 133,424 0.32 2.40 * 1,050,000 T 0.32 1,901,475 29/6/2002 to28/6/2011 145 participants 14,964,000 C. Parent Group Executives: 0.32 29/6/2002 to28/6/2006 9 participants B. Non-ExecutiveDirectors: 29/6/2002 to28/6/2011 440 participants A. Group Executives: The AscottGroup Share OptionPlan: Raffles HoldingsShare OptionPlan: tl95110766,488 9,581,100 otal 2,291,835 18,036,000 otal Fair valueofeachoptiongrantedis$0.08. Fair valueofeachoptiongrantedis$0.12707. LASTING VALUE xrieo hrsRisk-free ofshares Exercise Risk-free ofshares Exercise DIRECTORS’ REPORT $$ $$ Number Number %%% %%% (years) (years) o any ngs,

PAGE 87 CL fin'l(pg65-186)proof525/3/023:44PMPage88

PAGE 88 d UnissuedShares underOption (d) Share OptionsExercised (c) CAPITALAND under option: At theendoffinancialyear, there were thefollowingunissuedordinary shares oftheCompanyandfollowingsubsidiarie under thetwosaidPlans. Plans sincethecommencementofthesetwobothcompanies,noshares hadbeenissuedrelating toawards released In addition,asnoawards hadbeengrantedundertheCapitaLandandRaffles PerformanceShare PlansandRestrictedStock unissued shares oftheCompanyanditssubsidiaries. Save asdisclosedabove,there were noshares issuedduringthefinancialyearbyvirtueofexercise ofoptionstotakeup Scheme ofAustralandHoldingsLimited. During thefinancialyear, 964,000ordinary shares were issuedbyvirtueoftheexercise ofoptionsgrantedundertheShare Opti aetGopEeuie n 51//0510 .41,885,827 2.54 200,000 1.00 2.51 11/6/2005 1,544,743 1.00 95 4.82 3/8/2005 1.00 3 T 775,440 20/3/2002 17 2.54 Parent Group Executivesand Ex-Directors 1.00 offormerDBSLandLimited 11/6/2005 7 Group Executives Directors oftheCompany The Company: pinCtgr atcpnsdt prsae prsae option (pershare) (pershare) date participants Option Category tlnme fuise hrsudroto 41,038,712 otal numberofunissuedshares underoption soitdCmayEeuie 11//0610 .0940,000 2.50 1.00 18/6/2006 31 Associated CompanyExecutives ANNUAL REPORT 2001 DIRECTORS’ REPORT ubro xiyvlepieshares under price value Expiry Number of ,4 8621 .025 17,155,840 2.50 1.00 18/6/2011 1,442 6 //0010 .13,501,700 6,131,361 2.51 2.54 1.00 1.00 3/8/2010 11/6/2010 268 432 01//0010 .82,442,400 1,647,827 756,574 2.38 2.61 2.70 1.00 1.00 1.00 12/4/2010 7/4/2004 30 25/3/2003 25 12 1 1 1 1 9 1 4 11/0110 .5300,000 1.85 200,000 2.68 1.00 1.00 31/12/2011 23/11/2010 8621 .025 800,000 1,300,000 2.50 1,077,000 2.50 2.54 1.00 1.00 1.00 18/6/2011 18/6/2006 11/6/2010 //0110 .9100,000 2.49 1.00 2/7/2011 //0510 .1280,000 2.51 1.00 3/8/2005 oia xrieunissued Exercise Nominal $$ 33,780,445 2,825,827 4,232,440 Number of s on CL fin'l(pg65-186)proof525/3/023:44PMPage89 BUILDING FOR e Awards underCapitaLandandRaffles Share PerformancePlansandRestrictedStock (e) financial year. Save asdisclosedabove,there were nounissuedshares oftheCompanyoritssubsidiariesunderoptionasatend pinCtgr atcpnsdt prsae prsae option (pershare) (pershare) date participants Option Category mlye 92//02NA $.01,552,000 A$1.00 N.A.# 1,273,400 21/4/2002 0.50 19 400,000 0.50 0.50 0.50 15/8/2006 391 15/8/2006 1,050,000 6 0.37 #W T 0.20 Employees Australand HoldingsLimited: 19/12/2005 9 T Other Executives Non-Executive Directors Raffles HoldingsLimited: T Non-Executive Directors The AscottGroup Limited: te xctvs311/221 .003 14,013,000 0.37 0.20 19/12/2010 371 Other Executives There were noawards grantedundertheShare PerformancePlanand RestrictedStockPlanduringthefinancialyear. tlnme fuise hrsudroto 32,635,000 otal numberofunissuedshares underoption otal numberofunissuedshares underoption otal numberofunissuedshares underoption ith effectfrom1July1998,parvalueshareshavebeenabolishedundertheAustralianCompanyLawReviewAct1998. LASTING VALUE DIRECTORS’ REPORT ubro xiyvlepieshares under price value Expiry Number of 9 5821 .005 7,907,700 0.50 0.50 15/8/2011 394 8 8621 .003 16,522,000 0.32 0.20 28/6/2011 581 4 9 1820 ..#A11 625,000 A$1.10 N.A.# 11/8/2003 1,050,000 0.32 0.20 28/6/2006 oia xrieunissued Exercise Nominal $$ 2,177,000 9,581,100 Number of

PAGE 89 CL fin'l(pg65-186)proof525/3/023:44PMPage90

PAGE 90 • •i • • • • • acting through theAuditCommittee. Areas ofreview bytheAuditCommitteeinclude: accountingcontrolsThe financialstatements,accountingpoliciesandsystemofinternal are theresponsibility oftheBoard of Best PracticesGuideoftheSingapore Exchange. The AuditCommitteeperformsthefunctionsspecifiedbySection201BofCompaniesAct,Chapter50,andListingManualan The AuditCommitteemembersatthedateofthisreport are SumSoonLim(Chairman),HsiehFuHuaandLucienWong Yuen Kuai. Audit Committee f Proforma FinancialEffect UnderUnitedStatesFinancialAccountingStandard No.123 (f) CAPITALAND Practices GuideoftheSingapore Exchange; compliance withlawsandregulations, particularlythoseoftheCompaniesAct,Chapter50,andListingManualBest in future years. value oftheshare optionsisamortisedoverthevestingperiodsofrespective companies andadditionaloptionsmaybegran determined inrespect ofgrantsmadeandacceptedfrom financialyearended31December2000onwards. Theestimatedfair These proforma amountsmay notberepresentative offuture disclosures sincetheestimatedfairvalueofshare optionsis The AscottGroup LimitedandRaffles HoldingsLimited,undertheUnitedStatesFinancialAccountingStandard No.123: would havebeenasfollowshadtheGroup accountedforthefairvalueofemployees’share optionsgrantedbytheCompany, Strictly forinformationpurposesonly, theproforma consolidatedprofit attributabletoshareholders pershare andtheearnings the appointment of external auditorsandthelevelofauditors’remuneration.the appointmentofexternal the effectiveness audits; andexternal andefficiency ofinternal the appropriateness ofquarterlyandfullyearannouncementsreports; impact ofnew, revised orproposed changesinaccountingpoliciesorregulatory requirements onthefinancial statements; the reliability offinancialstatements; Proforma As reported pershareDiluted earnings (incents) Proforma As reported pershareEarnings (incents) Proforma Amortisation offairvalueshare options Less : As reported Loss attributabletoshareholders nterested personstransactions;and vrtevsigproso h epciecmais(,8)(3,263) (7,988) over thevestingperiodsofrespective companies ANNUAL REPORT 2001 DIRECTORS’ REPORT 2304 (290,242) (283,034) (286,979) (275,046) 1.)(11.6) (11.5) (11.6) (11.2) (11.5) (10.9) (11.2) (10.9) ’0 $’000 $’000 012000 2001 Directors ted d CL fin'l(pg65-186)proof525/3/023:44PMPage91 BUILDING FOR On behalfoftheBoard ofDirectors The auditors,KPMG,haveindicatedtheirwillingnesstoacceptre-appointment. Auditors auditors attheforthcomingAnnualGeneralMeetingofCompany. The AuditCommitteehasrecommended totheBoard ofDirectors thattheauditors,KPMG,benominatedforre-appointment as auditors,reviewedinternal interested personstransactions. Company toidentifyandreport andwhere necessary, seekapproval forinterested personstransactionsand,withtheassistance r In addition,theAuditCommitteehas,inaccordance withChapter9AoftheSingapore ExchangeListingManual,reviewed the submission tothedirectors oftheCompanyforadoption. financial statementsoftheGroup andthefinancialstatementsofCompanywere reviewed bytheAuditCommitteepriortotheir controls.internal TheAuditCommitteealsoreviewed theassistancegivenbyCompany’s officers totheauditors.Theconsoli functions andthescopeofworkstatutoryauditors,results arisingtherefrom, includingtheirevaluationofthe The AuditCommitteemetfourtimesduringtheyear. Specificfunctionsperformedincludereviewing aud thescopeofinternal 25 February2002 Singapore Director LIEW MUNLEONG Director PHILIP YEOLIAT KOK equirements forapproval anddisclosure ofinterested personstransactions,reviewed theprocedures setupbytheGroup andth LASTING VALUE DIRECTORS’ REPORT

system of dated it of the e

PAGE 91 CL fin'l(pg65-186)proof525/3/023:44PMPage92

PAGE 92 On behalfoftheBoard ofDirectors The Board ofDirectors hasauthorisedthesefinancialstatementsforissueonthedateofthisstatement. atthedateofthisstatementthere are reasonable grounds tobelievethattheCompanywillbeablepayitsdebtsasand (b) thefinancialstatementssetoutonpages94to185are drawnupsoastogiveatrueandfairviewofthestateaffairs o (a) 25 February2002 Singapore Director LIEW MUNLEONG Director PHILIP YEOLIAT KOK W for theyearended31December2001 Statement byDirectors CAPITALAND e, PHILIP YEOLIAT KOK they falldue. the CompanyandcashflowsofGroup fortheyearendedonthatdate;and Group andoftheCompanyasat31December2001,results ofthebusinessandchangesinequityGroup andof ANNUAL REPORT 2001 and LIEW MUNLEONG STATEMENT BYDIRECTORS , beingdirectors ofCapitaLandLimited,dohereby statethatinouropinion: f the when CL fin'l(pg65-186)proof525/3/023:44PMPage93 Report oftheAuditorstoMembersCapitaLandLimited BUILDING FOR 25 February2002 Singapore Certified PublicAccountants KPMG thefinancialstatementsare properly drawnupinaccordance withtheprovisions oftheCompaniesAct,Chapter50(the“Act”) (a) In ouropinion: statement presentation. We believethatourauditprovides areasonable basisforouropinion. assessing theaccountingprinciplesusedandsignificantestimatesmadebydirectors, aswellevaluatingtheoverallfinan examining, onatestbasis,evidencesupportingtheamountsanddisclosures inthefinancialstatements.Anauditalsoincludes audit toobtainreasonable assuranceaboutwhetherthefinancialstatementsare free ofmaterialmisstatement.Anauditincludes We r December 2001assetoutonpages94to185.Thesefinancialstatementsare theresponsibility oftheCompany’s directors. Our We subsidiaries incorporatedinSingapore, didnotincludeanycommentmadeunderSection207(3)oftheAct. The auditors’reports onthefinancialstatementsofsubsidiarieswere notsubjecttoanyqualification,andinrespect ofth the Group andwehavereceived satisfactoryinformationandexplanationsasrequired byusforthosepurposes. Company are informandcontent appropriate andproper forthepurposesofpreparation oftheconsolidatedfinancialstateme We subsidiaries are statedinnote 49 tothefinancialstatements. audited, beingfinancialstatementsthathavebeenincludedintheconsolidatedofGroup. Thenamesoft also considered thefinancialstatementsofthosesubsidiarieswhichare notrequired bythelawsoftheircountriesincorpor We theaccountingandotherrecords andtheregisters required bytheActtobekeptCompanyanditssubsidiaries (b) esponsibility istoexpress anopiniononthesefinancialstatementsbasedouraudit.

have considered thefinancialstatementsandauditors’reports ofallthesubsidiarieswhichwehavenotactedasauditors conducted ourauditinaccordance withSingapore Standards onAuditing.ThoseStandards require thatweplanandperformthe have auditedtheconsolidatedfinancialstatementsofGroup andthefinancialstatementsofCompanyforyearended are satisfiedthatthefinancialstatementsofsubsidiarieshavebeenconsolidatedwithth Singapore StatementsofAccounting Standard andsoastogiveatruefairviewof: incorporated inSingapore ofwhichweare theauditorshavebeenproperly keptinaccordance withtheprovisions oftheAct. i)theothermattersrequired bySection201oftheActtobedealtwithinfinancial statements; (ii) thestateofaffairs oftheGroup andoftheCompanyasat31December2001 andoftheresults andchangesinequityofthe (i) Group andoftheCompany ofthecashflowsGroup fortheyearendedonthatdate;and LASTING VALUE REPORT OFTHEAUDITORS e ation tobe e cial , and hese nts of

and

31

PAGE 93 CL fin'l(pg65-186)proof525/3/023:44PMPage94

PAGE 94 rvso o aain39 Provision forTaxation urn oto fDb euiis31 Current PortionofDebtSecurities urn oto f emLas30 Current PortionofTerm Loans eembePeeec hrs26 Redeemable Preference Shares eerdIcm 32 39 Deferred Income Deferred Taxation te o-urn iblte 27 Other Non-Current Liabilities hr emLas29 Short Term Loans T etScrte 31 Debt Securities eevs35 34 The accompanyingnotesformanintegralpartofthesefinancialstatements. Minority Interests Share CapitalandReserves Reserves Share Capital Representing: 19 11 19 Net Current Assets 13 Bank Overdrafts Less: Current Liabilities 4 5 Cash andEquivalents Financial Assets 6 T Consumable Stock Development Properties forSale 3 Current Assets Properties UnderDevelopment Investment Properties Intangible Assets Property, PlantandEquipment Non-Current Assets as at31December2001 Balance Sheets CAPITALAND Te Less: Non-Current Liabilities 7 Interests inSubsidiaries iaca ses11 10 9 8 Financial Assets Interests inPartnerships Interests inJointVenture Companies Interests inAssociatedCompanies te o-urn ses12 Other Non-Current Assets aeadOhrPybe 20 rade andOtherPayables aeadOhrRcials14 rade andOtherReceivables mLas30 rm Loans ANNUAL REPORT 2001 BALANCE SHEETS oe20 0020 2000 2001 2000 2001 Note 36 11,968,556 1,689,266 2,133,549 1,346,083 2,115,250 1,885,905 6,000,097 3,482,747 2,517,350 1,922,557 3,445,158 6,654,530 2,252,825 1,900,583 7,886,002 4,182,669 6,284,155 6,384,270 7,886,002 1,012,745 1,384,788 142,390 959,673 921,926 100,115 383,873 186,091 67,480 96,210 13,194 80,275 14,354 35,594 34,257 23,853 3,146 ’0 ’0 ’0 $’000 $’000 $’000 $’000 – – h ru TheCompany The Group 13,341,011 1,467,613 1,781,999 1,289,875 2,282,810 1,066,819 1,853,861 7,042,393 4,525,043 2,517,350 4,281,178 8,647,173 2,189,344 2,404,498 8,896,254 4,853,926 5,835,395 6,244,564 8,896,254 172,988 810,208 102,356 301,530 879,298 409,169 471,414 823,990 701,349 443,167 13,953 50,309 11,182 12,845 56,402 ettdRestated Restated 4,424 8,172 – – 1,623,071 4,948,583 2,431,233 2,517,350 4,948,583 1,828,405 1,507,889 1,883,821 4,948,583 6,401,056 6,398,012 195,428 631,590 150,000 885,358 470,108 672,754 253,285 375,932 270,055 59,879 7,465 3,019 238 884 25 – – – – – – – – – – – – 1,385,129 4,948,802 2,431,452 2,517,350 4,948,802 1,641,189 1,714,952 4,948,802 5,687,746 5,619,701 177,374 498,250 105,000 329,868 229,167 525,310 301,530 329,823 260,762 812,707 26,397 73,763 33,185 30,603 4,232 238 25 – – – – – – – – – – – CL fin'l(pg65-186)proof525/3/023:44PMPage95 –j – – Share ofresults of: T Cost ofsales te prtn noe38(a) Finance costs Other operatingexpenses Administrative expenses Other operatingincome Profit andLossAccounts BUILDING FOR ai annsprsae(et)40 40 (275,046) The accompanyingnotesformanintegralpartofthesefinancialstatements. pershareFully dilutedearnings (cents) pershareBasic earnings (cents) Net (loss)/profit attributable toshareholders Minority interests (Loss)/Profit aftertaxationbutbefore minorityinterests (Loss)/Profit before taxation Profit from operations Gross profit Revenue for theyearended31December2001 xto 39 axation partnerships associated companies oint venture companies LASTING VALUE PROFIT ANDLOSSACCOUNTS 38(f) oe20 0020 2000 2001 2000 2001 Note 38 37 (2,897,263) 3,367,939 (105,461) (432,778) (212,836) (632,533) (142,435) (132,611) 758,498 383,805 470,676 (27,150) 21,823 23,586 (2,971) 1,208 (10.9) (10.9) ’0 ’0 ’0 $’000 $’000 $’000 $’000 h ru TheCompany The Group (1,844,508) 2,921,708 1,077,200 (121,613) (422,870) (112,347) (455,710) (464,750) (286,979) (233,960) 162,320 319,060 (14,562) (53,019) ettdRestated Restated (8,537) 6,023 (11.5) (11.5) 2 (140,803) 155,587 101,436 200,016 (20,181) (27,911) (27,502) 59,213 99,842 39,032 39,032 (1,594) – – – – – (114,090) 407,552 339,531 402,706 453,621 251,646 251,646 (87,885) (30,757) 82,424 (4,846) (752) – – – – –

PAGE 95 CL fin'l(pg65-186)proof525/3/023:44PMPage96

PAGE 96 + At the Extraordinary General Meeting of DBS Land Limited (“DBS Land”) held on 18 October 2000, the Merger oftheCompanyand GeneralMeeting ofDBSLandLimited(“DBSLand”)heldon18October2000,theMerger + At theExtraordinary At 31December Issue ofNilordinary shares atapremium of$Nilper At 1January Share Premium At 31December Issue ofNilordinary shares atapremium of$Nilper At 1January Share Capital for theyearended31December2001 Equity Statements ofChangesin CAPITALAND Redemption premium andtranslationdifferences on # Included in the share issue expenses were $550,000 paid or payable to Allen & Gledhill, a firm inwhichadirectorismembe # Includedintheshareissueexpenseswere$550,000paidorpayabletoAllen&Gledhill,afirm Issues ofvarioustranchesordinary shares atvarious Issue ofNil(2000:86,494,952)bonusshares atparby Issue ofbonusshares atpar Issue ofNil(2000:1,316,031,127)ordinary shares atpar Share issueexpenses to KPMG,theauditorsofCompany. shareholders’ of DBS Land in exchange for their ordinary shares. shareholders’ ofDBSLandinexchangefortheirordinary SharesoftheCompanywereissu merger schemeofarrangementunderSection210theCompaniesAct,Chapter50,wasapproved. premium of$2.25pershare) share (2000:19,569,230ordinary shares ata premium of$2.25pershare) share (2000:19,569,230ordinary shares ata US$ 2%RCCPS premia byDBSLand way ofcapitalisationpartshare premium account pursuant totheMerger ANNUAL REPORT 2001 # + STATEMENTS OFCHANGESINEQUITY 3,429,376 3,453,684 2,517,350 2,517,350 (24,308) ’0 ’0 ’0 $’000 $’000 $’000 $’000 0120 012000 2001 2000 2001 – – – – – – – h ru TheCompany The Group 3,453,684 3,516,348 2,517,350 1,095,255 1,316,031 (18,432) (25,995) (86,495) 44,030 19,569 24,228 86,495 ettdRestated Restated r of,and$720,000paidorpayable 2,161,144 2,161,144 2,517,350 2,517,350

DBS Landpursuanttoa ed toexisting – – – – – – – – 2,161,144 2,214,761 2,517,350 1,095,255 1,316,031 (11,152) (86,495) 44,030 19,569 86,495 – – CL fin'l(pg65-186)proof525/3/023:44PMPage97 Share ofjointventure companies’capitalredemption reserve T T BUILDING FOR At 31December Net (deficit)/surplusonrevaluation of At 1January Revaluation Reserve At 31December At 1January Capital RedemptionReserve At 31December Others T At 1January Capital Reserve Disposal ofinterests insubsidiaries Share ofassociatedandjointventure companies’ Realised revaluation reserve transferred toprofit and Revaluation ofinvestment Wr T ransfer from unappropriated profit onredemption of ransfer from unappropriated profit forredemption of ransfer from unappropriated profit forcapitalgainon ransfer tounappropriated profit ite-down invalueofinvestmentnowcharged US$ 2%RCCPS r sale ofinvestmentproperties investment properties/properties underdevelopment r loss account opotadls con 38(c) to profit andlossaccount edeemable preference shares bysubsidiaries evaluation (deficit)/surplus LASTING VALUE STATEMENTS OFCHANGESINEQUITY oe20 0020 2000 2001 2000 2001 Note 1,069,745 (381,629) (304,923) 339,913 (43,280) 94,173 23,118 65,421 3,867 1,299 2,823 5,634 (857) ’0 ’0 ’0 $’000 $’000 $’000 $’000 289 313 – – – h ru TheCompany The Group 1,069,745 497,413 337,444 188,680 (12,548) 65,421 10,478 52,887 14,275 44,534 ettdRestated Restated 2,823 2,057 2,056 766 (53) – – – 313 313 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

PAGE 97 CL fin'l(pg65-186)proof525/3/023:44PMPage98

PAGE 98 T T T Adjustment forprioryeardividend – translation offoreign currency loansusedtofinance – acquisitionofsubsidiary iied 42 The accompanyingnotesformanintegralpartofthesefinancialstatements. 41(b) T At 31December 41(b) Dividends Net (loss)/profit fortheyear, asrestated At 1January, asrestated Effects ofadoptingSAS10and34 At 1January, aspreviously reported (Accumulated Loss)/Unappropriated Profit At 31December At 1January Reserve onConsolidation At 31December – consolidation offoreign subsidiaries,associated Exchange differences arisingon At 1January Foreign Currency Translation Reserve CAPITALAND Dilution/disposal ofinterest in Goodwill arisingonconsolidationofsubsidiaries fet faotn A 141(b) Effects ofadoptingSAS31 otal capitalandreserves ransfer from revaluation reserve ransfer tocapitalredemption reserve ransfer tocapitalreserve investments inforeign subsidiaries subsidiaries andassociatedcompanies and acquisitionofassociatedjointventure companies and jointventure companies ANNUAL REPORT 2001 STATEMENTS OFCHANGESINEQUITY oe20 0020 2000 2001 2000 2001 Note 6,000,097 (378,797) (275,046) (23,118) (38,012) (40,720) (61,577) (12,313) (24,708) (45,570) 11,229 16,007 (1,901) (5,986) 7,152 6,528 2,880 3,648 4,850 ’0 ’0 ’0 $’000 $’000 $’000 $’000 – – – h ru TheCompany The Group 7,042,393 (286,979) 301,438 275,273 301,438 (10,478) (48,170) (24,708) (11,806) (15,748) (45,570) (55,433) 26,165 54,726 ettdRestated Restated 2,846 3,648 4,355 (766) (668) 53 – – 4,948,583 269,069 231,057 269,069 269,776 (38,012) 38,012 39,032 (1,239) 1,239 (313) – – – – – – – – – – – 4,948,802 269,069 251,646 17,423 17,423 17,423 (1,607) 1,239 2,846 – – – – – – – – – – – – – CL fin'l(pg65-186)proof525/3/023:44PMPage99 Customer depositsreceived/(paid) Income taxpaid Decrease/(Increase) inworkingcapital: Cash generatedfrom operations Operating profit before workingcapitalchanges Consolidated StatementofCashFlows BUILDING FOR Net Cashgeneratedfrom OperatingActivitiescarriedforward Changes inworkingcapital Adjustments for: Loss before taxation Cash Flowsfrom OperatingActivities for theyearended31December2001 Financial assets Amount duefrom related corporations Tr Development properties forsale Inventories, tradeandotherreceivables Amortisation/write-off ofintangibleassets Allowance for: Amortisation ofleaseholdinvestmentproperty Provision forretirement gratuity Gain ondisposalofsubsidiariesandassociatedcompanies Gain ondisposalofinvestmentproperty Loss ondisposal/write-off ofproperty, plant Interest income Interest expense W Accretion ofdeferred income Share ofresults ofassociatedcompanies,jointventure Impairment ofproperty underdevelopment Impairment ofproperty, plantandequipment Depreciation ofproperty, plantandequipment ade andotherpayables rite downinvalueofinvestmentproperty – loantoinvesteecompanies – foreseeable lossesondevelopmentproperties forsale and equipment – diminutioninvalueofinvestmentassociatedcompanies – non-current portionoffinancialassets companies andpartnerships – loantoassociatedcompanies LASTING VALUE CONSOLIDATED STATEMENT OFCASHFLOWS 1,426,921 1,404,969 (558,761) 379,011 435,804 188,846 531,485 895,436 558,635 445,183 432,778 160,348 (85,949) (83,744) (24,481) (27,150) (29,701) (83,990) (10,807) (21,823) 63,997 17,193 15,443 10,854 34,620 10,000 82,773 40,863 8,150 4,738 ’0 $’000 $’000 124 650 012000 2001 (163,117) (304,884) (222,986) (501,899) (112,347) 273,341 775,240 102,389 887,587 200,192 422,870 143,802 120,224 (69,967) (23,807) (69,117) (22,723) 54,776 41,162 38,595 59,716 Restated (7,835) 9,483 8,537 (763) 124 454 – – – – –

PAGE 99 CL fin'l(pg65-186)proof525/3/023:44PMPage100

PAGE 100 Net Cash(usedin)/generatedfrom FinancingActivities Dividends paidtoshareholders Dividends paidtominorityshareholders Proceeds from debtsecurities(net) Repayment ofloansfrom minorityshareholders (net) Proceeds from share issues Repayment ofloansfrom related corporations(net) Interest expensepaid Cash Flowsfrom FinancingActivities (Repayment of)/Proceeds from termloans(net) Redemption ofRCCPS Net Cashgeneratedfrom/(used in)InvestingActivities Interest incomereceived ipsl(custo)o usdaycmais43 Disposal/(Acquisition) ofsubsidiarycompanies Proceeds/(Acquisition) offinancialassets Proceeds from disposalofinvestmentproperties Dividends received from associatedcompanies,jointventures andpartnerships Increase inamountsowingbyinvesteecompanies Acquisition ofinvestmentproperties andproperty underdevelopment Increase inassociatedcompanies,jointventures andpartnerships Purchase ofproperty, plantandequipment Proceeds from disposalofproperty, plantandequipment Cash Flowsfrom InvestingActivities The accompanyingnotesformanintegralpartofthesefinancialstatements. Cash andEquivalentsatendofyear Effect ofExchangeRateChangesonBalancesheldinForeign Currency Cash andEquivalentsatbeginningofyear Net Increase/(Decrease) inCashandEquivalents Net Cashgeneratedfrom OperatingActivitiesbrought forward CAPITALAND ANNUAL REPORT 2001 CONSOLIDATED STATEMENT OFCASHFLOWS oe20 2000 2001 Note 19 (1,106,900) 1,909,363 1,028,852 1,404,969 (181,695) (531,325) (342,747) (152,858) (374,344) (143,007) 730,783 825,321 236,645 220,262 868,116 (38,012) (53,709) 54,093 83,270 33,861 12,395 (6,418) (7,087) (8,052) 9,685 ’0 $’000 $’000 – 1,273,476 (881,205) (451,512) (280,566) (192,282) (452,346) (119,769) (392,458) 386,358 131,796 721,889 102,051 868,116 102,389 (48,838) (24,570) (13,726) (30,732) (12,902) 70,617 29,835 65,516 Restated (3,923) (4,904) 6,617 – CL fin'l(pg65-186)proof525/3/023:44PMPage101 BUILDING FOR Notes totheFinancialStatements .SummaryofSignificantAccountingPolicies 2. DomicileandActivities 1. The financialstatementswere authorisedforissuebyDirectors on25February2002. These notesformanintegralpartofthefinancialstatements. 31 December2001 to asthe“Group”) andtheGroup’s interests inassociatedcompanies,jointventure companiesandpartnerships. The consolidatedfinancialstatementsfortheyearended31December2001relates totheCompanyanditssubsidiaries(referred management supportservicesandintegratestheactivitiesofitssubsidiaries. management andrelated agencyandconsultancyservicesaswellthecorporateheadquarterswhichgivesdirection, provides The principalactivitiesoftheCompanyduringfinancialyearare thoserelating toinvestmentholding,theprovision ofpro #30-01, CapitalTower, Singapore 068912. CapitaLand Limited(the“Company”)isincorporatedintheRepublicofSingapore withitsregistered office at168,RobinsonRoad c Basisofconsolidation (c) Basisofpreparation (b) Statementofcompliance (a) The principalactivitiesofthesubsidiariesare setoutinnote49totheaccompanyingfinancialstatements. adopted. Detailsoftheeffects ofadoptingthestandards are giveninnote41. unless suchtreatment isprohibited ormodifiedbythespecifictransitionalprovisions setoutintherespective standards being r 2000) – standards whichhavebecomeeffective forthefinancialstatements2001.Thebenchmarktreatment giveninSAS8(revised In 2001,theGroup andtheCompanychangedtheiraccountingpoliciesasaresult ofadoptingnineneworrevised accounting are statedatmarketvalue. certain property, plantandequipmentinvestmentproperties are statedatvaluationandcertain investmentsinsecurities The financialstatements,whichare expressed inSingapore dollars,are prepared onthehistoricalcostbasisexceptthat Singapore andtheapplicable requirements oftheSingapore CompaniesAct,Chapter50. (including Interpretations ofStatements ofAccountingStandard) issuedbytheInstituteofCertifiedPublicAccountants The financialstatementshavebeenprepared inaccordance withSingapore StatementsofAccountingStandard (“SAS”) i)Foracquisitionofsubsidiarieswhichmeetthecriteriaformergerrelief underSection69BoftheCompaniesAct,Chapter (ii) AsubsidiaryisacompanyinwhichtheGroup, directly orindirectly, holdsmore thanhalfoftheissuedshare capital,or (i) etrospectively byadjustingthe openingbalanceoftheretained ofthepriorandcurrent earnings yearhasbeenadopted, “Intangible Assets”below. the fairvaluesassignedtonetassetsacquired isaccountedforasgoodwillornegativeunderNote2(e) the directors basedonindependentprofessional valuations.Anyexcessordeficiencyofthepurchase considerationover principally investmentproperties, landandbuildings,ownedbythesubsidiariesatdateofacquisitionasdetermined by For acquisitionofsubsidiarieswhichare accountedforunderthepurchase method,fairvaluesare assignedtotheassets, figures oftheGroup are restated asifthecompaniesacquired havealwaysbeenmembersoftheGroup. r 50 andSingapore StatementofAccountingStandard No.22(2000)“BusinessCombinations”,theassets,liabilitiesand financial year. Allsignificantinter-company transactionsare eliminatedonconsolidation. financial statementsincludetheofCompanyanditssubsidiariesmadeuptoend controls more thanhalfofthevotingpower, orcontrols thecompositionofboard ofdirectors. Theconsolidated LASTING VALUE esults are accountedforunder thepoolingofinterests method.Intheyearofmerger, theprioryearcomparative Net ProfitorLossforthePeriod,FundamentalErrorsandChangesinAccountingPolicies NOTES TOTHEFINANCIALSTATEMENTS of applyingthechanges perty ,

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PAGE 102 CAPITALAND d Property, plantandequipment (d) e Intangibleassets (e) v Assets,liabilitiesandtheresults offoreign subsidiariesare translatedintoSingapore dollarsatratesofexchangeclose (v) Theresults ofsubsidiariesacquired anddisposedofduringthefinancialyearare includedintheconsolidatedfinancial (iv) Ondisposalofasubsidiary, anyattributableamountofpurchased goodwillornegativenotpreviously amortised (iii) ii Depreciation (iii) Subsequentexpenditure (ii) Ownedassets (i) Where necessary, accountingpoliciesforsubsidiarieshavebeenchangedtobeconsistentwiththe adoptedby (vii) Exchangedifferences arisingfrom thetranslationofinter-company balanceswhichrepresent an extensionofinterests of (vi) i Goodwill (i) ANNUAL REPORT 2001 statements from theeffective dateofacquisitionanduptotheeffective dateofdisposalrespectively. for asubsidiaryacquired priorto1January2001isincludedinthecalculationofprofit orlossondisposal. or credited through theprofit andlossaccountorwhichhaspreviously beendealtwithasamovementinGroup reserves currency translationreserve. approximate tothoserulingatthebalancesheetdate.Translation differences arisingtherefrom are takendirectly toforeign expense intheperiodwhichitisincurred. standard ofperformancethe existingasset,willflowtotheGroup. Allothersubsequentexpenditure isrecognised asan carrying amountoftheassetwhenitisprobable thatfuture economicbenefits,inexcessoftheoriginallyassessed Subsequent expenditure relating toproperty, plantandequipmentthathasalready beenrecognised isaddedtothe value determinedonthebasisofexistinguseatdaterevaluation lessanysubsequentaccumulateddepreciation. freehold andleaseholdlandbuildingswhichare statedattheirrevalued amounts.Therevalued amountisthefair Property, plantandequipmentare statedatcostlessaccumulateddepreciation andimpairmentlossesexceptforcertain the Group. financial statements. the holdingcompanyinsubsidiariesare takendirectly totheforeign currency translationreserve intheconsolidated account onastraightlinebasisfrom thedateofinitialrecognition overitsestimatedusefullifeofnotmore than20years. the investmentinassociatedorjointventure companies.Goodwillisamortisedandchargedtotheprofit andloss r the identifiablenetassetsacquired. Goodwillisstatedatcostlessaccumulatedamortisationandimpairmentlosses.In Goodwill arisingonacquisitionrepresents theexcessofcostacquisitionoverfairvalueGroup’s share of are capitalisedwhenincurred. Depreciation willcommencewhenthedevelopmentiscompleted. Assets underconstructionisstatedatcost.Expenditure relating toassetsunderconstruction(includinginterest expenses) Motor vehicles – 5 years 5 – 20to50years – 2to5years – to10years 3 – periodoflandlease(subjecttomaximum30years) Motor vehicles fittingsandequipment Furniture, – Plant, machineryandimprovements Freehold buildings lowerofremaining businessoperationlicencetenure or Other leaseholdlandandbuildings – Hospitality leaseholdlandandbuildings Depreciation isprovided onthestraight-linebasissoastowriteoff thecostsovertheirestimatedusefullivesasfollows: espect ofassociatedandjointventure companies,thecarryingamountofgoodwillisincludedin NOTES TOTHEFINANCIALSTATEMENTS land lease(subjecttomaximumof50years) ly CL fin'l(pg65-186)proof525/3/023:44PMPage103 BUILDING FOR g Subsidiaries (g) Investmentproperties andinvestmentproperties underdevelopment (f) Investments insubsidiariestheCompany’s balancesheetare statedatcostlessimpairmentlosses. Properties underdevelopment (iii) Majorretrofitting orredevelopment (ii) Investmentproperties (i) i)Negativegoodwill (ii) on thebasisstatedin2(f)(i)above. Upon completionofthedevelopment,amountisreclassified toinvestmentproperties. Thiswillbestatedatvaluation a revaluation decrease. necessary togettheassetready foritsintendeduseare inprogress. Animpairmentlossisrecognised inthesamewayas development includesborrowing costsandotherrelated expenditure whichare capitalisedasandwhenactivitiesthatare Properties underdevelopment are statedatspecificallyidentifiedcostlessimpairmentlosses.Costofproperty under An impairmentlossisrecognised inthesamewayasarevaluation decrease. 2(f)(i) above. Upon completionofmajorretrofitting orredevelopment, thecarryingamountsare statedatvaluationonthebasisin commencement ofretrofitting orredevelopment. Majorretrofitting orredevelopment expenditure isstatedatcost. Investment properties underor awaitingmajorretrofitting orredevelopment are statedatvaluationimmediatelypriortothe leasehold lives. The valueofinvestmentproperties withremaining leaseperiodof20yearsorlessare amortisedovertheir remaining Surplus onrevaluation isreleased totheprofit andlossaccountuponthesaleofinvestmentproperties. deficit exceedstheamountinrevaluation reserve ischargedtotheprofit andlossaccount. to coveradeficitonanaggregate basiswithinthesamegeographicalsegment,inwhichcaseamountby The netsurplusordeficitonrevaluation istakentorevaluation reserve exceptwhenthetotalofreserve isnotsufficient independent professional valuation. Independentprofessional valuationismadeatleastonceevery3years. valuation onanopenmarketbasis.Valuation ismadebythedirectors valuationor onanannualbasisbasedinternal Investment properties, whichare notheldwiththeintentionofsaleinordinary courseofbusiness,are statedat deducted from thecarryingamount ofintangibleassets. amount oftheinvestmentinassociatedorjointventure companies.Thecarryingamountofothernegativegoodwillis In respect ofassociatedandjointventure companies,thecarryingamountofnegativegoodwillisincludedin assets acquired isrecognised immediatelyintheprofit andlossaccount. life ofthoseassetsthatare depreciable oramortisable.Negativegoodwillinexcessofthefairvaluesnon-monetary values ofthenon-monetaryassetsacquired, isrecognised intheprofit andlossaccountovertheweightedaverageuseful account whenthefuture lossesandexpensesare recognised. Anyremaining negative goodwill,butnotexceedingthefair of acquisitionandcanbemeasured reliably, butwhichhavenotyetbeenrecognised, itisrecognised intheprofit andloss To the costofacquisition. Negative goodwillarisingonacquisitionrepresents theexcessoffairvalueidentifiablenetassetsacquired over LASTING VALUE

the extentthatnegativegoodwillrelates toanexpectationoffuture lossesandexpensesthatare identifiedintheplan NOTES TOTHEFINANCIALSTATEMENTS

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PAGE 104 CAPITALAND h Associatedandjointventure companies (h) i Partnership (i) i)TheGroup’s share ofthepost-acquisitionresults ofthepartnershipisincludedinconsolidatedprofit andlossaccount (iv) Investmentsinpartnershipsare accountedforintheconsolidatedfinancialstatementsunderequitymethod. (iii) IntheCompany’s balancesheet,investmentsinpartnershipsare statedatcostlessimpairmentlosses. (ii) Apartnershipisonewhere theGroup hasaninterest andashare intheprofits orlossandthenetassetsof (i) Ondisposalofanassociatedorjointventure company, anyattributableamountofpurchased goodwillnotpreviously (vii) TheGroup’s share ofthepost-acquisitionresults oftheassociatedandjointventure companiesisincludedinthe (vi) Thedifference betweenthecostofacquisitionandGroup’s share ofthefairvaluenetassetsassociatedand (v) Investmentsinassociatedandjointventure companiesare accountedforintheconsolidatedfinancialstatementsunder (iv) IntheCompany’s balancesheet,investmentsinassociatedandjointventure companiesare statedatcostless (iii) Ajointventure companyisanenterpriseoverwhoseactivitiestheGroup hasjointcontrol establishedbycontractual (ii) AnassociatedcompanyisainwhichtheGroup hassignificantinfluence,butnotcontrol inthefinancialand (i) ANNUAL REPORT 2001 balance sheetunderinterests inpartnerships. The Group’s share ofthepost-acquisitionretained profits andreserves ofthepartnershipisincludedinconsolidated and theauditedfinancialstatementsobtainedsubsequentlyare adjustedforinthefollowingyear. Group’s share isbasedontheunauditedfinancialstatements. Anydifferences betweentheunauditedfinancialstatements using themostrecent availableauditedfinancialstatements.Where theauditedfinancialstatementsare notavailable,the partnership. in thecalculationofprofit andlossondisposal. amortised orcredited through theprofit andlossaccountinrespect ofanacquisitionpriorto1January2001isincluded included intheconsolidatedbalancesheetunderinterests inassociatedandjointventure companiesrespectively. The Group’s share ofthepost-acquisitionretained profits andreserves oftheassociatedandjointventure companiesis the followingyear. between theunauditedfinancialstatementsandauditedobtainedsubsequentlyare adjustedforin financial statementsare notavailable,theGroup’s share isbasedontheunauditedfinancialstatements.Anydifferences consolidated profit andlossaccountusingthemostrecent availableauditedfinancialstatements. Where theaudited “Intangible Assets”. joint venture companiesatthedateofacquisitionisaccountedforasgoodwillornegative underNote2(e) influence orjointcontrol ceases. the equitymethodfrom thedatethatsignificantinfluenceorjointcontrol commencesuntilthedatethatsignificant established before thebalancesheetdate. loss accounttotheextentofdividendsreceived andreceivable, provided theCompany’s righttoreceive thedividendis impairment losses.Theresults oftheassociatedandjointventure companiesare includedintheCompany’s profit and agreement. operating policydecisions. NOTES TOTHEFINANCIALSTATEMENTS CL fin'l(pg65-186)proof525/3/023:44PMPage105 BUILDING FOR j Financialassets (j) n Interest-bearing loansandborrowings (n) Impairment (m) Consumablestock (l) Developmentproperties forsale (k) the samewayasarevaluation decrease. Allotherimpairmentlossesare recognised intheprofit and loss account. amount. Animpairmentlossinrespect oflandandbuildingsorinvestmentproperty carriedatrevalued amountisrecognised in An impairmentlossisrecognised wheneverthecarryingamountofanassetoritscash-generatingunitexceedsrecoverable intangible assetsthatare notyetavailableforuse,therecoverable amountisestimatedateachbalancesheetdate. whether there isanyindication ofimpairment.Ifanysuchindicationexists,theasset’s recoverable amountisestimated.For The carryingamountsoftheGroup’s assets,otherthaninventories,are reviewed ateachbalancesheetdateto determine its present locationandcondition.Allowanceismadewhere necessaryforobsolete,slow-moving anddefectivestock. of costandnetrealisable value.Costisdeterminedonaweightedaveragebasisandincludesallcostsinbringingthestockt Consumable stockcomprisesprincipallyfoodandbeverages,maintenancesuppliesspare parts.Theyare statedatlower progress. Netrealisable valuerepresents theestimatedsellingpricelesscoststobeincurred insellingtheproperty. expenditure whichare capitalisedasandwhenactivitiesthatare necessarytogettheassetsready fortheirintendeduseare estimated netrealisable value, net ofprogress billings.Costofdevelopmentproperties includeinterest andotherrelated Development properties forsaleare statedatthelowerofcostplus,where appropriate, aportionoftheattributableprofit, a Interest-bearing borrowings are recognised atcost. Reversalofimpairmentloss (ii) Calculationofrecoverable amount (i) Profits orlossesondisposaloffinancialassetsare determinedasthedifference betweenthenetdisposalproceeds and (iii) Debtandequitysecuritiesheldfortheshorttermare classifiedascurrent assets,andare statedatthelowerofcostand (ii) Debtandequitysecuritiesheldforthelong-termare statedatcostlessallowancefordiminutioninvaluewhichare other (i) the effect ofthatspecificevent. exceptional nature thatisnotexpected torecur, andtheincrease inrecoverable amountrelates clearlytothereversal of An impairmentlossinrespect ofgoodwillisnotreversed eventofan unlessthelosswascausedbyaspecificexternal same wayasarevaluation increase. Allotherreversals ofimpairmentare recognised intheprofit andlossaccount. an impairmentlossinrespect oflandandbuildingsorinvestmentproperty carriedatrevalued amountisrecognised inthe would havebeendetermined,netofdepreciation oramortisation,ifnoimpairmentlosshadbeenrecognised. Areversal of impairment lossisreversed onlytotheextentthatasset’s carryingamountdoesnotexceedthethat An impairmentlossisreversed ifthere hasbeenachangeintheestimatesusedtodeterminerecoverable amount.An to whichtheassetbelongs. inflows largelyindependentofthosefrom otherassets,therecoverable amountisdeterminedforthecash-generatingunit assessments ofthetimevaluemoneyandrisksspecifictoasset.Foranassetthatdoesnotgeneratecash estimated future cashflowsare discountedtotheirpresent valueusingapre-tax discountratethatreflects current market The recoverable amountisthegreater oftheasset’s netsellingpriceandvalueinuse.Inassessinguse,the the carryingamountoffinancialassetsandare accountedforintheprofit andlossaccountastheyarise. decreases incarryingamount are includedintheprofit andlossaccount. market valuedeterminedonaportfoliobasis.CostistheweightedaverageAnyincreases or r than temporaryasdeterminedbythedirectors foreachdebtandequitysecurityindividually. Anysuchallowancesare LASTING VALUE ecognised asanexpenseintheprofit andlossaccount. NOTES TOTHEFINANCIALSTATEMENTS nd in o

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PAGE 106 CAPITALAND o Employeebenefits (o) r Revenuerecognition (r) Deferred taxation (q) Provisions (p) measured reliably, revenue isrecognised intheprofit andlossaccountasfollows: Provided itisprobable thattheeconomicbenefitswillflowtoGroup andtherevenue andcosts,ifapplicable,canbe unless there isareasonable expectationofrealisation. certain itemsforaccountingandtaxationpurposes.Deferred taxbenefit,however, isnotrecognised inthefinancialstatements Deferred taxationisprovided usingtheliabilitymethodonallmaterialtimingdifferences arisingfrom thedifferent treatmen and itisprobable thatanoutflowofeconomicbenefitswillberequired tosettletheobligation. A provision isrecognised inthebalancesheetwhenGroup hasalegalorconstructiveobligationasresult ofapasteven v)Clubmemberships (vi) Interest income (v) Dividends (iv) ii Technical consultancyandmanagementfee (iii) Developmentproperties forsale (ii) Rentalincome (i) Equitycompensationbenefits (iii) Definedcontributionplans (ii) Shorttermemployeebenefits (i) ANNUAL REPORT 2001 re r Entrance feesfrom clubmembershipsare recognised intheprofit andlossaccountwhen theamountsare duetobe Interest incomeisrecognised onanaccrualbasis. established. Dividend incomeisrecognised intheprofit andlossaccountwhentheshareholder’s righttoreceive paymentis r T property. handover ofproperty, incomefrom saleisrecognised intheperiodwhichpurchaser takespossessionofthe For property developmentprojects inAustraliawhere purchasers are abletorescind thecontractspriortodateof costs incurred todatetheestimatedtotalconstructioncostsforeachproject. progress ofconstructionwork.Theprogress oftheconstructionworkismeasured bytheproportion oftheconstruction brought intothefinancialstatements onlyinrespect ofsalesprocured andtotheextentthatsuchprofit relates tothe The Group recognises incomeonproperty developmentprojects usingthepercentage ofcompletionmethod.Profit is obligation isrecognised. Whentheoptionsare exercised, equityisincreased bytheamountofproceeds received. The stockoptionprogramme allowsGroup employeestoacquire shares oftheCompany. Nocompensationcostor and lossaccountasincurred. Contributions topost-employmentbenefitsunderdefinedcontributionplansare recognised asanexpenseintheprofit account intheperiodwhichemployeesrender theirservicestotheCompany. All shorttermemployeebenefits,includingaccumulatedcompensatedabsences,are recognised intheprofit andloss Rental incomeisrecognised onanaccrualbasis. eceived. 50%oftheentrancefeesissetasideandincludedindeferred income.Deferred incomeisamortisedoverthe endered. echnical consultancyandmanagementfeeisrecognised intheprofit andlossaccountaswhenservicesare maining membershipperiod. NOTES TOTHEFINANCIALSTATEMENTS ts of t, CL fin'l(pg65-186)proof525/3/023:44PMPage107 BUILDING FOR s Borrowing costs (s) w Segmentreporting (w) Cashandcashequivalents (v) Operatingleases (u) Foreign currency translation (t) used formore thanoneperiod. Segment capitalexpenditure isthetotalcostincurred duringtheperiodtoacquire segmentassetsthatare expectedtobe and expenses,corporateassetsexpenses. a reasonable assetsandrevenue, basis.Unallocateditemsmainlycompriseincome-earning interest-bearing loans,borrowings Segment results, assetsandliabilitiesincludeitemsdirectly attributabletoasegmentaswellthosethatcanbeallocated Inter-segment pricingisdeterminedonanarm’s lengthbasis. business segments,isbasedontheGroup’s principalactivities. Segment informationispresented inrespect oftheGroup’s businessandgeographicalsegments.Theprimaryformat, subject torisksandrewards thatare different from thoseofothersegments. segments), orinproviding products orserviceswithinaparticulareconomicenvironment (geographicalsegment),whichis A segmentisadistinguishablecomponentoftheGroup thatisengagedeitherinproviding products orservices(business the Group’s cashmanagement. and cashequivalentsare presented netofbankoverdrafts whichare repayable ondemandandwhichformanintegralpartof Cash andcashequivalentscomprisebalancesbankdeposits.Forthepurposeofstatementflows, cash of therespective leases. Rental payableunderoperatingleasesare accountedforintheprofit andlossaccountonastraight-linebasisovertheperiods i)Hedgedforeign currency assetsandliabilities (ii) Unhedgedforeign currency assetsandliabilities (i) Theinterest onborrowings capitalisedisarrivedatbyreference totheactualrateofinterest onborrowings for (ii) Borrowing costsare expensedintheprofit andlossaccountintheperiodwhichtheyare incurred, excepttotheextent (i) translation differences are takentotheprofit andlossaccount. entity, thisisincludedintheforeign currency translationreserve. Ondisposaloftheinvestmentinforeign entity, Where translationdifferences ariseontranslationofaforeign currency liabilityaccountedforasahedgeoftheforeign transaction dates.Translation differences are includedintheprofit andlossaccount. approximate tothoserulingat thebalancesheetdate.Transactions inforeign currencies are translatedatratesrulingon Monetary assetsandliabilitiesinforeign currencies are translatedintoreporting currencies atratesofexchangeclosely rate ofinterest. development purposesand,withregard tothatpartofthedevelopmentcostfinancedoutgeneralfunds,ataverage necessarily takesasubstantialperiodoftimetogetready foritsintendeduseorsale. that theyare capitalisedasbeingdirectly attributabletotheacquisition,constructionorproduction ofanassetwhich LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS

on

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PAGE 108 .Property, PlantandEquipment 3. CAPITALAND h ru ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’0 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 The Group elsicto 5 74 1)–(,8)12287– 2,877 122 (2,980) – (19) (754) – 754 – T Reclassification W Disposals Assets of At 31December (31,747) 32,14 (24,043) – 8,720 (1,659) – (2,865) 30,176 (2,388) 122 Impairment loss (66) Depreciation for (1,130) 143,007 – (25,756) 53,974 T (543) 822 (726) At 1January (75,568) Depreciation andimpairmentlosses 9,755 – 33,019 At 31December 31,136 75,452 – 5,192 (2,753) T 4,708 Reclassification W 4,401 Disposals – Surplus on Assets of Additions T At 1January At cost/valuation ransfer from ranslation ransfer from ranslation ritten off ritten off dsoe)––(738 1628 8,1)(,8)(447 (341,346) (54,427) (1,681) (81,712) – – 2,11 – (186,218) (17,308) – properties investment – (disposed) acquired/ subsidiaries 01–3,9 8545,0 2,0 0,8 ,0 0,9 686,930 302,092 5,604 109,586 – 121,600 59,608 8,561 48,544 160,348 3,601 39,896 70,945 114 – 1,487 20,484 1,505 844,146 – 299,530 – 7,063 2001 25,591 177,994 1,871 – 25,549 212 3,925 94,274 357 12,367 2,939,755 220,819 518,147 – 29,427 901 9,090 15,039 198,824 – – 69,61 24,743 the year – 824,672 consolidation 207,762 difference on 310,825 (469,006) – (65,685) 594,142 73,407 2001 251,550 (1,953) 7,126 (150,991) 94,079 194 2,495 15,514 2001 – 3,170 properties 3,033,490 829 investment 519,026 (365,693) (96,075) 11,775 24,299 115,538 344,123 7,016 93,358 16,768 r 9,075 708,859 (disposed) 636,815 acquired/ 16,847 393,843 subsidiaries 4,851 261,701 140,580 consolidation difference on 2001 vlain–26,12 – evaluation ANNUAL REPORT 2001 reodFehl odhtllaeodcn mrv-Mtrequip- Motor improve- con- leasehold hotel hold Freehold Freehold adbidnsln ulig ulig tuto et eilsmn Total ment vehicles ments struction buildings buildings land buildings land –––– ––––(4)– –––– 5––––––– 4––––––– NOTES TOTHEFINANCIALSTATEMENTS es-LaeodOhrudradand and under Other Leasehold Lease- 3–––––– 864 24 328 21 247 (14,724) (2,427) (211) (3,238) (224) (8,624) 13 319 12 149 (4,783) (1,409) (132) (3,129) – (113) 1–––– sesmcieyfittings machinery Assets 256 139 1,2)(22,974) (19,025) (1,369) (2,576) ln,Furniture, Plant, 179,204 40,863 26,124 2,115 CL fin'l(pg65-186)proof525/3/023:44PMPage109 BUILDING FOR $289.3 million(2000:$299.2million). The netbookvalueofproperty, plantandequipmentheldforusebytenantsunderoperatingleasesasat31December2001was accumulated depreciation. The carryingamountwouldhavebeen$363million(2000:$280million)hadtheseproperties beencarriedatcostless basis ofopenmarketvaluations. Included intheaboveproperty, plantandequipmentare certainproperties statedatindependentprofessional valuations,onth mortgaged tobankssecure credit facilitiesfortheGroup (notes29and30). At 31December2001,certainproperty, plantandequipmentamountingtoapproximately $339million(2000:$152million)were h ru ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’0 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 The Group The Company ipsl 37 123 (1,620) 7,749 – 11,863 148 1,425 651 (1,273) (1,969) 44 104 5,881 – (347) 10,768 – 7,819 1,720 129 526 16,095 615 (1,539) 4,000 526 1,192 7,036 (430) 36 8,757 3,206 6,812 Carrying amount31December2000 Carrying amount31December2001 Depreciation charge for2000 At 31December2001 300,000 W Disposals 30November2000 Depreciation fortheyear At 1January2001 Depreciation andimpairment losses At 31December2001 W Disposals Additions At 1January2001 Cost Leasehold landandbuildings Freehold buildings Carrying amount Carrying amount Depreciation charge itnof(,2)(9)–(3,919) – (794) (4,009) – (3,125) (797) (3,212) ritten off ritten off 2000 31 December 2001 31 December for 2000 LASTING VALUE 4,8 4,6 6,1 1,9 1,8 678161947229462,189,344 219,496 4,712 2,252,825 166,129 216,055 16,768 3,486 614,585 89,238 415,996 364,416 24,743 246,662 703,072 140,580 148,154 262,281 554,246 251,550 reodFehl odhtllaeodcn mrv-Mtrequip- Motor improve- con- leasehold hotel hold Freehold Freehold adbidnsln ulig ulig tuto et eilsmn Total ment vehicles ments struction buildings buildings land buildings land – ,8 ,5 6511,8 2331475,3 120,224 50,030 1,477 22,303 – 13,489 26,591 4,651 1,683 NOTES TOTHEFINANCIALSTATEMENTS es-LaeodOhrudradand and under Other Leasehold Lease- mrvmnseupetvhce Total vehicles equipment improvements ahnr fittings machinery ,1 3 8 4,232 3,019 482 378 938 1,155 2,812 1,486 sesmcieyfittings machinery Assets ’0 ’0 ’0 $’000 $’000 $’000 $’000 ln Furniture, Plant 5 0 61,113 46 608 459 n n Motor and and ln,Furniture, Plant, uut20 120,203 9 August2001 V laindt Valuation aluation date $’000 e

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PAGE 110 .InvestmentProperties 5. IntangibleAssets 4. CAPITALAND d Investmentproperties oftheGroup are heldmainlyforusebytenantsunderoperatingleases. (d) At31December2001,certaininvestmentproperties amountingtoapproximately $2,694million(2000:$3,502million)were (c) b Investmentproperties are statedatdirectors’ valuationbasedonindependentprofessional valuationscarriedoutbythe (b) Freehold investmentproperties, atvaluation (a) Amortisation Goodwill onconsolidationarisingfrom odilwitnof38(c) 38(c) At 31December Goodwill writtenoff Amortisation chargefortheyear At 1January Less: acquisition through businesscombinations mortgaged tobankssecure credit facilitiesfortheGroup (note30). following valuers,onthebasisofopenmarketvaluations. IApasl t Hn og October2001 October2001/January2002 December2001 October2001 October2001 – July2001 – October2001 – – – – – V October2001 Insignia Richard EllisLimited(UnitedKingdom) October2001 Inc.(United Kingdom) HVS International BI AppraisalsLtd(HongKong) – Cuervo AppraiserInc.(Philippines) – CB Richard EllisLimited(China) Colliers Jardine Consultancy& Valuation (Singapore) PteLtd Knight FrankPteLtd Jones LangLaSalleProperty ConsultantsPteLtd CB Richard Ellis(Pte)Ltd Amortisation Leasehold investmentproperties, atcost Leasehold investmentproperties, atvaluation gr ..SnBd(aasa October2001 – igers J.B.SdnBhd(Malaysia) ANNUAL REPORT 2001 mriaincag o h er38(c) At 31December Amortisation chargefortheyear At 1January Less: NOTES TOTHEFINANCIALSTATEMENTS V aluation Date oe20 2000 2001 Note oe20 2000 2001 Note 6,654,530 1,091,631 5,562,526 (17,193) (15,941) 52,787 35,594 (1,252) (1,648) (1,524) 2,021 (124) ’0 $’000 $’000 ’0 $’000 $’000 373 – The Group The Group 8,647,173 1,078,514 7,568,162 (1,524) (1,400) 2,021 (124) 497 – – – – – – CL fin'l(pg65-186)proof525/3/023:44PMPage111 BUILDING FOR .Properties UnderDevelopment 6. .Interests inSubsidiaries 7. mortgaged tobankssecure credit facilitiesfortheGroup (note30). million). At31December2001,certainproperties underdevelopmentamountingtoapproximately $116million(2000:$Nil)were During thefinancialyear, interest capitalisedascostofproperties underdevelopmentamountedto$9.7million(2000:$11.1 Allowance foranticipatedvaluationdeficienciesoncompletion a Unquotedshares, atcost (a) Interest, property taxandothercosts Development costs Freehold landandotherrelated costs Leasehold landandotherrelated costs At cost At 31December Allowance ofsubsidiariesacquired Allowance made At 1January Less: Loan accounts Amounts owingbysubsidiaries Allowance fordiminutioninvalueofinvestments Allowance fordoubtfulreceivables Redeemable preference shares Ordinary shares Add: At 31December Less: neetfe 47 47 38(c) – interest bearing – interest free Allowance made Allowance utilised At 1January loac ae38(c) At 31December Allowance made Allowance utilised At 1January Less: LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS oe20 2000 2001 Note 5,807,512 5,873,712 6,398,012 3,401,549 2,472,163 (144,211) (181,201) 614,608 617,538 383,873 565,074 590,500 110,556 123,076 292,006 (66,200) (86,801) (94,400) (27,038) (22,771) (61,589) 80,011 57,322 39,436 (2,000) 2,930 ’0 $’000 $’000 ’0 $’000 $’000 012000 2001 – The Company The Group 4,314,374 4,458,585 5,619,701 1,086,672 1,366,916 1,305,327 1,945,870 2,512,715 (144,211) (144,211) 280,244 471,414 565,814 204,190 220,748 (94,400) (48,716) (43,000) (61,589) (61,589) 47,845 93,031 (2,684) – – – –

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PAGE 112 .Interests inAssociatedCompanies 8. CAPITALAND a Unquotedshares, atcost (a) Detailsofthesubsidiariesare setoutinnote49. (c) Thebalanceswithsubsidiariesare unsecured andhavenofixedtermsofrepayment. However, themanagementofparties (b) Non-current loanaccounts Current accounts(mainlynon-trade) Current accounts(mainlynon-trade) Amounts owingby/(to)subsidiaries: – interest bearing – interest free – interest bearing – interest free – interest bearing – interest free long-term secured bankloans of certainsubsidiaries. the interest bearingloansisanamountofapproximately $Nil(2000:$131million)whichissubordinated totherepayment of current accounts,interests are chargedatratesrangingfrom 1.09%to6.72%(2000:2.06%9.22%)perannum.Includedin involved donotintendfortheloanaccountstoberepaid withinthenext12months.Inrespect ofinterest bearingloanand Share ofpost-acquisitionrevaluation reserve Balance carriedforward Quoted shares, atcost Share ofpost-acquisitioncapital reserve Goodwill onacquisition ANNUAL REPORT 2001 Add: NOTES TOTHEFINANCIALSTATEMENTS 228,557 560,023 789,635 537,111 (26,908) 49,820 1,055 ’0 ’0 ’0 $’000 $’000 $’000 $’000 0120 012000 2001 2000 2001 h ru TheCompany The Group 117,505 296,778 415,338 273,866 (26,908) 49,820 1,055 oe20 2000 2001 Note 28 28 28 28 28 28 1,401,486 (858,711) (762,588) 581,439 820,047 (15,113) (96,123) (15,095) ’0 $’000 $’000 (18) – – – – – – – The Company 1,180,207 (115,275) (111,844) 686,261 493,946 30,603 30,603 30,603 (3,431) – – – – – – – CL fin'l(pg65-186)proof525/3/023:44PMPage113 BUILDING FOR Loan accounts Amounts owingbyassociatedcompanies Exchange differences arisingontranslation Allowance fordiminutioninvalueofinvestments Market valueofquotedshares Allowance fordoubtfulreceivables Share ofpost-acquisitionlosses Balance brought forward At 31December T Disposal ofassociatedcompany neetfe 47 47 – interest bearing – interest free loac ae38(c) Allowance made of foreign associatedcompanies loac ae38(c) Allowance made At 1January Less: At 31December At 1January Less: ranslation adjustments LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS oe20 0020 2000 2001 2000 2001 Note 1,384,788 1,414,301 (150,542) 589,863 216,515 806,378 801,640 789,635 (29,513) (10,000) (26,432) (30,635) 12,092 41,571 (4,738) (4,738) (970) ’0 ’0 ’0 $’000 $’000 $’000 $’000 – h ru TheCompany The Group (164,262) 336,419 173,948 701,349 731,984 510,367 510,367 415,338 (30,635) (29,459) (30,513) 53,084 (122) – – – – – – – – – – – – – – – – – – – – – – – 30,603 30,603 30,603 – – – – – – – – – – – – – – –

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PAGE 114 CAPITALAND d Detailsoftheassociatedcompaniesare setoutinnote50. (d) c Includedintheloanaccountsisanamountofapproximately $246.2million(2000:$57million)whichissubordinated tothe (c) Thebalanceswithassociatedcompaniesare unsecured andhavenofixedtermsofrepayment. However, themanagementof (b) Current accounts Current accounts Amounts owingby/(to)associatedcompanies: – Interest bearing(non-trade) – Interest free (non-trade) – Interest bearing(trade) – Interest free (trade) – Interest bearing(non-trade) – Interest free (non-trade) – Interest bearing(trade) r loan andcurrent accounts,interests are chargedatratesrangingfrom 1.85%to6.93%(2000:1.00%9.50%)perannum. the partiesinvolveddonotintendforloanaccountstoberepaid withinthenext12months.Inrespect ofinterest bearing epayment of external borrowingsepayment ofexternal ofcertainassociatedcompanies. ANNUAL REPORT 2001 NOTES TOTHEFINANCIALSTATEMENTS oe20 0020 2000 2001 2000 2001 Note 20 14 106,608 (16,842) (13,567) 95,892 (3,275) 4,586 6,130 ’0 ’0 ’0 $’000 $’000 $’000 $’000 – – h ru TheCompany The Group 96,894 96,894 (3,229) (3,229) – – – – – – – – – – – – – – (19) (19) – – – – – – – CL fin'l(pg65-186)proof525/3/023:44PMPage115 BUILDING FOR .Interests inJointVenture Companies 9. c Detailsofthejointventure companiesare setoutinnote51. (c) Thebalanceswithjointventure companiesare unsecured andhavenofixedtermsofrepayment. However, themanagementof (b) Capitalcontribution,atcost (a) venture companies. of approximately $57.2million(2000:$83million)whichissubordinated totherepayment borrowings ofexternal ofcertainjoi loan accounts,interests are chargedat7%to11.75%(2000:1.85%8.5%)perannum.Includedintheabove is anamount the partiesinvolveddonotintendforloanaccountstoberepaid withinthenext12months.Inrespect ofinterest bearing Allowance fordiminutioninvalueofinvestments Exchange differences arisingontranslation Share ofpost-acquisitioncapitalreserve Share ofpost-acquisitionreserves dueto Share ofpost-acquisitionrevaluation reserve Goodwill onacquisition Unquoted shares, atcost Share ofpost-acquisitionlosses Loan accounts Amounts owingbyjointventure companies Current accounts(non-trade) Amounts owingby/(to)jointventure companies: of foreign jointventure companies subsidiaries acquired Less: neetfe 47 47 – interest bearing – interest free neetfe 20 14 – interest free – interest free LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS oe20 0020 2000 2001 2000 2001 Note 1,012,745 490,197 504,381 492,301 561,781 (61,781) 14,360 69,480 28,804 (5,688) 7,147 1,289 5,616 (176) (176) ’0 ’0 ’0 $’000 $’000 $’000 $’000 – – h ru TheCompany The Group 268,306 823,990 282,490 462,373 558,331 (39,862) 2,4)–(23,340) – (22,340) 24,672 14,360 95,958 (5,688) 4,047 (176) (176) 21 7–– – – – – – – – – – – – – – – – – – (16,500) (16,500) 21,100 33,185 28,585 28,585 4,600 – – – – – – – – nt

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PAGE 116 CAPITALAND The Group’s share ofthecapitalcommitmentsjointventure companiesis$116.4million(2000: $63.0million). TheGroup’s share ofthejointventure companies’results, assetsandliabilitiesare asfollows: (d) Non-current liabilities Net current assets Current liabilities Current assets Properties underdevelopment Investment properties (Loss)/Profit aftertaxation (Loss)/Profit before taxation Expenses Revenue Profit andLossAccount – current accounts – loanaccounts Amounts owingto/(by)shareholders Share ofreserves Share capital Capital contribution Property, plantandequipment Balance Sheet T axation ANNUAL REPORT 2001 Less: Less: Representing: NOTES TOTHEFINANCIALSTATEMENTS 1,041,549 1,041,549 1,245,941 1,038,004 (204,392) (393,037) (191,875) 207,937 600,974 325,870 550,654 188,904 590,585 561,781 450,964 490,197 161,480 (53,593) 28,804 14,360 (9,309) (2,971) (6,338) ’0 $’000 $’000 012000 2001 The Group (194,295) 801,867 801,867 996,162 407,928 487,477 588,234 267,814 320,310 536,208 558,331 265,659 268,306 (79,549) (17,007) (12,357) (22,123) 18,380 14,360 5,123 6,023 (900) 110 CL fin'l(pg65-186)proof525/3/023:44PMPage117 BUILDING FOR 0 Interests inPartnerships 10. c TheGroup hasinterests inthefollowingpartnerships: (c) TheGroup’s share ofthepartnerships’results, assetsandliabilitiesare asfollows: (b) Capitalcontribution,atcost (a) Profit aftertaxation T Profit before taxation Expenses Revenue Profit andLossAccount Share ofreserves Capital contribution Net current assets Current liabilities Current assets Properties underdevelopment Balance Sheet Share ofpost-acquisition(losses)/retained profit i)Yoyogi Partnership (ii) Moorgate InvestmentPartnership (i) axation Representing: Less: Group hada60%interest inthepartnership. In 2001,thepartnershipwasdissolveduponcompletionofresidential developmentproject. Intheprevious year, the 50%. Theprincipalactivityofthepartnershipisthatproperty investmentanddevelopment. This isalimitedpartnershipwhichregistered inUnitedKingdomandwhichtheGroup hasaneffective interest of LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS 34,257 34,257 34,257 34,295 31,727 34,295 1,027 1,208 1,247 2,530 2,738 (181) (208) ’0 $’000 $’000 $’000 $’000 012000 2001 2000 2001 (39) (38) (38) The Group The Group 56,402 56,402 56,402 56,400 31,304 31,464 25,098 56,400 (160) (58) 60 2 2 2 2 –

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PAGE 118 1 FinancialAssets 11. CAPITALAND a Non-current financialassets (a) Other unquotedinvestments Allowance fordiminutioninvalueofinvestments Quoted bonds Quoted shares Market value: T Allowance fordoubtfulreceivables Loan accounts Amounts owingbyinvesteecompanies Quoted bonds,atcost Unquoted shares, atcost Quoted shares, atcostlesswrite-down otal ANNUAL REPORT 2001 Allowance utilised loac ae38(c) Allowance made At 1January Less: T loac ae38(c) Allowance made Allowance ofsubsidiariesacquired At 1January Less: – interest bearing – interest free At 31December At 31December ranslation adjustments NOTES TOTHEFINANCIALSTATEMENTS oe20 2000 2001 Note 165,794 215,512 186,091 107,283 (82,773) (21,343) (15,443) (24,205) (49,718) (48,239) 15,507 20,297 54,398 59,465 68,536 44,169 24,367 92,722 (1,451) (7,140) ’0 $’000 $’000 – – The Group 389,823 411,166 443,167 260,199 293,723 (11,512) (21,343) 50,621 53,344 60,484 22,787 37,697 65,122 (9,831) (7,140) (7,140) 1,000 1,700 – – – – CL fin'l(pg65-186)proof525/3/023:44PMPage119 2 OtherNon-Current Assets 12. BUILDING FOR mut wn yrltdcroain 28 Loan tothird party Loans tostaff anddirectors ofsubsidiary Amounts owingbyrelated corporations The loantothethird partyisunsecured, bearsinterest at8.75%(2000:Nil%)perannumandisrepayable on March 2005. Club memberships Quotedandunquotedinvestmentsincludeinfloatingratenotesbonds. (d) Thebalanceswithinvesteecompaniesare unsecured andhavenofixedtermsofrepayment. However, themanagementof (c) Current financialassets (b) accounts, interests are chargedatratesrangingfrom 3.31%to7.90%(2000:7.44%9.60%)perannum. parties involveddonotintendfortheamountstoberepaid withinthenext12months.Inrespect ofinterest bearingloan At 31December Allowance fordiminutioninvalueofinvestments Quoted bonds Quoted shares Market value: Other unquotedinvestments Quoted bonds Quoted shares At cost: loac ae38(c) Allowance made At 1January Less: LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS oe20 0020 2000 2001 2000 2001 Note 2000 2001 2000 2001 Note 13,430 23,853 80,275 83,900 68,831 (3,625) (2,879) 5,523 3,801 1,099 5,902 4,129 9,899 5,170 (746) ’0 ’0 ’0 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 h ru TheCompany The Group TheCompany The Group 4,182 3,990 8,172 4,424 5,170 4,424 5,170 (746) (527) (219) – – – – – (2,434) (2,434) 7,465 9,899 5,902 9,899 25 25 – – – – – – – 25 25 – – – – – – – – – – – – –

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PAGE 120 3 DevelopmentProperties forSale 13. CAPITALAND c At31December2001,certaindevelopment properties for saleamountingtoapproximately $100million(2000:$181million) (c) Duringthefinancialyear, there were thefollowinginterest capitalisedascostofdevelopmentproperties forsale: (b) Properties inthecourseofdevelopment,atcost (a) were mortgagedtobankssecure credit facilitiesoftheGroup (notes30and31). Completed units Less: Progress billings Add: Attributableprofit neetpi n aal obns38(f) 38(a) Interest received andreceivable from fixeddepositproject accounts Interest paidandpayabletobanks Allowance forforeseeable losses Allowance forforeseeable losses Interest, property taxandothers Development costs Land andotherrelated costs ANNUAL REPORT 2001 loac ae38(c) Allowance utilised Allowance made At 31December T T Allowance utilised loac ae38(c) Less: Allowance made At 1January Less: Allowance ofsubsidiariesdisposed At 1January Less: At 31December ransfer tocompletedunits ransfer from properties inthecourseofdevelopment NOTES TOTHEFINANCIALSTATEMENTS oe20 2000 2001 Note oe20 2000 2001 Note 3,445,158 3,208,216 3,893,407 3,841,446 4,640,306 1,155,798 3,236,333 (408,244) (798,860) (685,191) (414,179) 290,661 236,942 248,175 (22,288) (36,939) (62,964) (53,719) 22,288 44,967 51,961 68,472 46,375 (1,408) 1,275 ’0 $’000 $’000 ’0 $’000 $’000 – The Group The Group 4,281,178 3,699,523 4,265,078 4,228,263 4,642,442 1,101,193 3,259,282 (414,179) (565,555) (528,912) 644,619 581,655 281,967 (83,386) (23,407) (62,964) 31,255 83,386 67,775 36,815 50,784 69,530 (2,528) (6,955) (1,755) 2,620 CL fin'l(pg65-186)proof525/3/023:44PMPage121 BUILDING FOR 4 Trade andOtherReceivables 14. 6 AccruedReceivables 16. Trade Receivables 15. T In accordance withtheGroup’s accountingpolicy, incomeisrecognised ontheprogress oftheconstructionwork.Uponreceipt o Allowance fordoubtfulreceivables 16 Accrued receivables ud edi rs 18 28 T 17 Amounts owingbyrelated corporation Loans toinvesteecompanies Amounts owingby: Funds heldintrust Other receivables, depositsandprepayments T emporary OccupationPermit,thebalanceofsalesconsiderationtobebilledisincludedasaccrued receivables. rade receivables 15 rade receivables loac ae38(c) T Allowance utilised Allowance made Allowance ofsubsidiariesdisposed/(acquired) At 1January Less: At 31December 8 – associatedcompanies on etr opne 9 – jointventure companies ranslation adjustments LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS oe20 0020 2000 2001 2000 2001 Note 100,947 433,273 410,268 410,268 921,926 106,608 234,119 (10,881) (12,572) (23,005) 36,858 28,804 4,069 (547) ’0 ’0 ’0 $’000 $’000 $’000 $’000 ’0 ’0 ’0 $’000 $’000 $’000 $’000 852 143 253 0120 012000 2001 2000 2001 h ru TheCompany The Group TheCompany The Group 1,066,819 250,220 433,401 420,829 420,829 252,943 (13,424) (12,572) 12,371 31,140 96,894 (2,278) 3,636 2,205 (518) 217 12 1,623,071 1,401,486 221,363 (425) 372 308 222 222 (33) (86) – – – – – – – 1,385,129 1,180,207 204,308 1,039 (494) (425) 153 614 614 (84) – – – – – – – f

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PAGE 122 7 OtherReceivables,DepositsandPrepayments 17. CAPITALAND 8 FundsHeldinTrust 18. Commissioner ofLand,PublicUtilitiesBoard, theHousingandDevelopmentBoard andrelated corporations: Funds heldintrustcomprisefixeddepositsandbankbalanceswithbanksfinancecompaniesonbehalfofthe Cash atbanks Included infundsheldtrustisanamountof$771,000(2000:$885,000)onbehalfrelated corporations. Fixed deposits Other receivables compriseprincipally amountreceivable inconnectionwithstaff loans,interest receivable andotherrecovera Allowance fordoubtfulreceivables Deposits Prepayments Other receivables T ax recoverables loac ae38(c) At 31December Allowance made Allowance ofsubsidiariesdisposed At 1January Less: T Allowance utilised ranslation adjustments ANNUAL REPORT 2001 NOTES TOTHEFINANCIALSTATEMENTS oe20 0020 2000 2001 2000 2001 Note 234,119 167,267 138,155 (29,112) (26,191) 21,420 36,727 37,817 (6,879) 2,353 2,071 (466) ’0 ’0 ’0 $’000 $’000 $’000 $’000 h ru TheCompany The Group 252,943 109,538 102,659 39,983 45,528 64,773 (2,890) (6,879) (4,949) 960 – – 221,363 218,032 20,154 16,704 36,858 3,211 3,211 ’0 $’000 $’000 100 012000 2001 20 – – – – – – The Group 204,308 202,943 19,071 12,069 31,140 1,269 1,269 bles. 93 3 – – – – – – CL fin'l(pg65-186)proof525/3/023:44PMPage123 0 Trade andOtherPayables 20. BUILDING FOR 9 CashandEquivalents 19. 2 OtherPayables 22. Accruals 21. 3 RentalandOtherDeposits 23. purchases. Accruals includeaccrueddevelopmentexpenditure, accruedinterest payableandaccruedproperty, plantandequipment mut wn orltdcroain 28 9 Amounts owingtorelated corporations Amounts owingtojointventure companies mut wn oascae opne 8 Amounts owingtoassociatedcompanies eerdicm 32 33 18 25 26 24 Liability foremployeebenefits Deferred income Accrued redemption premium Contract work-in-progress Provision forcyclicalmaintenance Funds heldintrust cras21 22 23 Rental andotherdeposits Other payables Accruals Bank overdrafts (unsecured) T Fixed depositsof$173million(2000:$Nil)were pledgedassecuritiesforthemediumtermnotes(note31). Cash andcashequivalentsinthestatementofflows Cash atbankandinhand Amounts heldunder Included inrental andotherdepositsisanamountof$2,468,000(2000:$1,557,000)received from related corporations. Other payablesrelate principallytoretention sumsandamountspayableinconnectionwithcapitalexpenditure incurred. Fixed deposits rade payables on developmentprojects to paymentsforexpenditure incurred withdrawals from whichare restricted “Project AccountRules–1997Ed” LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS oe20 0020 2000 2001 2000 2001 Note 2000 2001 2000 2001 Note 47 1,909,363 1,346,083 1,922,557 1,412,567 145,399 717,864 346,469 293,894 216,096 (13,194) 14,498 16,842 36,858 53,077 7,774 7,302 ’0 ’0 ’0 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 – – – – h ru TheCompany The Group TheCompany The Group 1,289,875 140,709 196,289 545,932 868,116 253,683 879,298 215,853 187,962 475,483 (11,182) 37,130 22,340 31,140 41,217 3,229 4,850 6,006 7,350 – 252,401 253,285 244,729 15,113 40,568 59,879 2,477 8,556 (884) 821 375 406 119 – – – – – – – 115,275 329,823 229,167 329,823 328,835 23,340 41,217 44,684 1,080 1,304 1,425 823 988 19 – – – – – –

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PAGE 124 6 US$2%RedeemableConvertibleCumulativePreference Shares (“RCCPS”) 26. ContractWork-in-Progress 25. Provision forCyclicalMaintenance 24. CAPITALAND share basedonayieldtoredemption of5%perannum. The 172,5002%RCCPSofUS$1eachwere redeemed duringtheyearatredemption priceofUS$1,171.10perpreference their 2%RCCPS. each were issuedbytheCompanyatapremium ofUS$999pershare toexistingRCCPSholdersofDBSLandinexchangefor Pursuant totheMergerofDBSLandwithCompanywhichwaseffective on24November2000,172,5002%RCCPSofUS$1 hnei conigplc eonsdi cuuae oss41 Amount utilised W Change inaccountingpolicyrecognised inaccumulatedlosses Progress paymentsreceived andreceivable Allowance foranticipatedcosts/losses US$ 2%redeemable convertible Due within1year Progress billingsinexcessofwork-in-progress Cost incurred andprovided for At 31December At 1January, asrestated At 1January, aspreviously reported cre eepinpeim20 Accrued redemption premium rite back Less: Less: cumulative preference shares ANNUAL REPORT 2001 NOTES TOTHEFINANCIALSTATEMENTS oe20 0020 2000 2001 2000 2001 Note ’0 ’0 ’0 $’000 $’000 $’000 $’000 – – – h ru TheCompany The Group 342,747 301,530 41,217 oe20 2000 2001 Note (4,850) (6,843) (7,302) (6,622) 4,850 (680) ’0 $’000 $’000 ’0 $’000 $’000 221 012000 2001 – – – – – – – The Group The Group 342,747 301,530 (21,943) 27,973 27,973 41,217 (1,180) (6,446) (7,350) (1,025) (6,325) 4,850 121 – CL fin'l(pg65-186)proof525/3/023:45PMPage125 BUILDING FOR 7 OtherNon-Current Liabilities 27. 8 AmountsOwingby/(to)RelatedCorporations 28. Customer depositsandotherpayables iblt o mlyebnfis33 Liability foremployeebenefits – Subsidiaries Current accounts Amounts owing(to): Current – Subsidiaries Current accounts Amounts owingby: Current 28 Amounts owingtorelated corporations – Otherrelated corporations – Otherrelated corporations – non-trade – non-trade – non-trade – non-trade – trade – trade – interest free – interest bearing neetfe 7 7 – interest bearing – interest free 7 7 – interest bearing – interest free – interest free – interest bearing – interest free LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS oe20 0020 2000 2001 2000 2000 2001 2001 Note 2000 2001 Note 20 14 (14,498) (14,329) 68,098 26,647 96,210 1,465 (169) ’0 ’0 ’0 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 222 253 31 – – – – – h ru TheCompany The Group TheCompany The Group (37,130) (37,130) 16,437 33,065 50,309 2,205 2,205 807 – – – – – – – 1,401,486 885,358 885,358 581,439 820,047 (15,113) (15,095) (18) – – – – – – – 1,180,207 (115,275) (111,844) 686,261 493,946 26,397 26,397 (3,431) – – – – – – –

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PAGE 126 9 ShortTerm Loans 29. CAPITALAND by mortgagesontheborrowing subsidiaries’landandbuildings. per annumandisrepayable on22February2002(2000:2001).Theremaining secured shorttermloansare secured million) whichissecured byabankguaranteeissuedanotherbank.Theloanbearsinterest at8.25%to11.5%(2000:11.5%) Included inthesecured shorttermloanisamountofUS$16.5million(2000:US$20million)equivalentto$30.2$ Short termloans TheimmediateholdingcorporationisSingapore Technologies PteLtdandtheultimateholdingcorporationisTemasek (b) Allbalanceswithrelated corporationsare unsecured andhavenofixedtermsofrepayment. However, themanagementof (a) – Otherrelated corporations – Subsidiaries Loan accounts Amounts owing(to): Non-current – Otherrelated corporations Loan accounts Amounts owingby: Non-current – secured 7 7 12 – interest free – interest bearing – interest free – interest bearing – interest bearing – unsecured Holdings (Private)Limited.Bothcorporationsare incorporatedintheRepublicofSingapore. and current accounts,interests are chargedatratesrangingfrom 2.07%to4.18%(2000:2.06%9.22%)perannum. parties involveddonotintendfortheloanbalancestoberepaid withinthenext12months.Inrespect ofinterest bearingloa ANNUAL REPORT 2001 NOTES TOTHEFINANCIALSTATEMENTS oe20 0020 2000 2001 2000 2001 Note 27 2,133,549 1,771,800 361,749 (26,647) (18,933) (7,714) 3,801 ’0 ’0 ’0 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 0120 012000 2001 2000 2001 – – h ru TheCompany The Group TheCompany The Group 1,781,999 1,714,892 (14,132) (33,065) (18,933) 67,107 – – – (885,358) (762,588) 470,108 470,108 (96,123) (18,933) (7,714) – – 329,868 329,868 (26,397) (18,933) (7,464) 35 n – – – – CL fin'l(pg65-186)proof525/3/023:45PMPage127 BUILDING FOR 0 Term Loans 30. i Secured Term Loans (i) Repayable: Te rm loans – after1year – within1year – unsecured – secured the saleandrental proceeds oftheprojects and achargeonthemoniesinProject Accountoftheprojects. floating chargeontheassetsofsubsidiariesrelated totheprojects (Sunhaven,TheLoftandPalmGrove), assignmentof early callredemption inJune2007.Theloanbearsinterest from 3.71%to4.79%perannumandissecured byafixedand Included inthesecured termloansisanamountof$200millionobtainedin2001,andduetomature inJune2010withan – assignmentsofallrightsandbenefitswithrespect totheproperties. – mortgages ontheborrowing subsidiaries’landandbuildings,investmentproperties, properties underdevelopmentor Other termloansare generallysecured by: The secured termloansbearinterests rangingfrom 2.00%to8.00%(2000:2.80%10.50%)perannum. After 1year After 5years From 2to5years From 1to2years W These compriseloansrepayable: development properties forsale; and ithin 1year LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS 1,900,583 1,460,935 1,399,321 1,399,321 2,860,256 2,860,256 1,000,393 207,466 353,608 439,319 398,928 959,673 ’0 ’0 ’0 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 0120 012000 2001 2000 2001 2000 2001 2000 2001 h ru TheCompany The Group TheCompany The Group 2,404,498 1,387,228 1,827,478 1,827,478 3,214,706 3,214,706 1,316,585 807,866 489,352 510,893 810,208 19,367 270,055 420,055 420,055 420,055 150,000 – – – – – – – 260,762 365,762 365,762 365,762 105,000 – – – – – – –

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PAGE 128 1 DebtSecurities 31. CAPITALAND After 1year After 5years From 2to5years From 1to2years Debt securitiescomprisefixedratenotes,floatinghybridnotesandbondsissuedbytheGroup andtheCompany. a Secured DebtSecurities (a) 47 W Repayable: Notes outstandingasatendoftheyear Notes purchased (butnotcancelled) Notes issuedasatendoftheyear The unsecured termloansbearinterests rangingfrom 1.00%to8.00%(2000:0.90%9.30%)perannum. Unsecured Term Loans (ii) ithin 1year Less: which are secured. Thedetailsofthesecured debtsecuritiesasat31December2001are asfollows: Included intheabovedebtsecuritiesare $1,316.75million(2000:$1,390.75million)debtsecuritiesissuedbysubsidiaries After 1year From 2to5years From 1to2years W ii $120millionfixedratebondsbearinginterest at6%perannumandare secured byafixedchargeontheinvestment (iii) $125millionfixedratebondsbearinginterest at6%perannumandare secured byafixedchargeontheinvestment (ii) $100millionfixedratebondsbearinginterest at4.75%perannumandare secured byafixedandfloatingchargeonthe (i) These compriseloansrepayable: ANNUAL REPORT 2001 ithin 1year earlier dateinaccordance withthetermsof“Call”and“Put”OptionAgreements; property (268Orchard Road)ofasubsidiary. Thebondswhichwere issuedin1999mature on31August2009oratan date inaccordance withtheterms ofthe“Call”and“Put”OptionAgreements; property (RobinsonPoint)ofasubsidiary. Thebondswhichwere issuedin1999mature on21July2009oratanearlier $47 millionofbondsfrom theopenmarket; bonds whichwere issuedin1999are repayable infullon6August2002.InDecember2001,thesubsidiarypurchased assets ofasubsidiaryandassignmentsalesproceeds from thesubsidiary’s developmentproperty (TheClearwater).The NOTES TOTHEFINANCIALSTATEMENTS oe20 0020 2000 2001 2000 2001 Note (1,166,553) 2,115,250 1,689,266 3,804,516 4,971,069 3,804,516 1,460,935 965,000 636,250 514,000 900,190 394,339 505,851 560,745 ’0 ’0 ’0 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 0120 012000 2001 2000 2001 h ru TheCompany The Group TheCompany The Group 2,282,810 1,467,613 1,008,000 3,750,423 4,449,423 3,750,423 1,387,228 1,087,913 (699,000) 580,500 694,310 582,357 505,556 299,315 1,304,344 1,777,844 1,304,344 (473,500) 672,754 631,590 121,000 417,500 134,254 420,055 270,055 224,430 150,000 45,625 1,023,560 1,703,810 1,023,560 (680,250) 525,310 498,250 115,000 126,500 283,810 365,762 260,762 105,000 179,970 80,792 CL fin'l(pg65-186)proof525/3/023:45PMPage129 2 Deferred Income 32. BUILDING FOR set asidetomatchanypossibleexcessoperatingcostsoverrevenues intheremaining membershipperiod. Deferred incomerepresents mainlypremium onbondsissuedand50%ofentrancefeesfrom clubmembershipswhichhasbeen b Unsecured DebtSecurities (b) ii Thedebtsecuritiesbearinterest rangingfrom 0.86%to8.50%(2000:1.09%8.50%)perannum. (iii) IncludedaboveisanA$54millionequivalenttoS$51.5unsecured notesbearinginterest of8.75%perannum.The (ii) Theholdersofsometheabovedebtsecurities havetheoptiontoalloranyoftheirnotespurchased bytheGroup (i) Details oftheremaining $2,487.77million(2000:$2,359.67million)unsecured debtsecuritiesare asfollows: vi $105.75million(2000:$65million)ofMTNswhichcomprise32)seriesissuedbyasubsidiary atvariousfixed (vii) $164million(2000:$222.75million)MTNswhichcomprise1219)seriesissuedatvariousfixed/floating/variable (vi) $199million(2000:$208million)mediumtermnotes(“MTNs”)whichcomprise76)seriesissued atvarious (v) $550millionfixedratebondsbearinginterest at6%perannumandare secured byafixedchargeontheinvestment (iv) are redeemable attheprincipalamountsontheirrespective maturitydates. assumed thattheoptionwillbeexercised. Unlesspreviously redeemed orpurchased andcancelled,thedebtsecurities at theirprincipalamountoninterest paymentdates.Indeterminingtherepayment datesofthedebtsecurities,itis amounts ontheirrespective maturitydatesfrom FebruarytoMarch 2002. Holdings Limited.Unlesspreviously redeemed orpurchased andcancelled,theMTNsare redeemable attheirprincipal the subsidiary(2000:legalassignmentofallissuedordinary shares ofthesubsidiary)andaguaranteeTheAscott bear interests rangingfrom 2.0%to3.125%(2000:3.0625%3.125%)perannumandare secured byfixeddepositsof rates, aspartofa$168millionsecured MTNprogramme whichhasa10-yeardurationfrom 30October2000.TheMTNs r Unless previously redeemed orpurchased andcancelled,theMTNsare redeemable attheirprincipalamountson deposits ofthesubsidiary(2000:twoinvestmentproperties (FunanTheITMallandOrchard Point)heldbysubsidiaries). MTNs bearinterests rangingfrom 1.55%to4.88%(2000:2.80%4.875%)perannumandare secured byfixed rates, aspartofa$500millionsecured MTNprogramme whichhasa10-yeardurationfrom 8December1999.The dates from July2003toNovember2005; r secured byacollateralmortgage ontheinvestmentproperty (LiangCourtComplex)ofasubsidiary. Unlesspreviously July 2000.TheMTNsbearinterests rangingfrom 1.5%to5.5625%(2000:3.0625%5.5625%)perannumandare fixed/floating/variable rates,aspartofa$350millionsecured MTNprogramme whichhasa3to5yearsdurationfrom 12 earlier dateinaccordance withthetermsof“Call”OptionAgreement; property (SixBatteryRoad)ofasubsidiary. Thebondswhichwere issuedin1999mature on15December2009oratan LASTING VALUE unsecured noteswhichwere issuedin1997are repayable infullon30June2002. espective maturitydatesfrom January2002toDecember2002;and edeemed orpurchased andcancelled,theMTNsare redeemable attheirprincipalamountsonrespective maturity NOTES TOTHEFINANCIALSTATEMENTS

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PAGE 130 3 EmployeeBenefits 33. CAPITALAND c Equitycompensationbenefits 20 27 (c) Retirement gratuity (b) Longserviceleave (a) Non-current Current Liability forlongserviceleaveentitlement Liability forshort-termaccumulating Liability forretirement gratuity compensated absences each oftheCompanywere asfollows: As attheendoffinancialyear, detailsoftheoptionsgrantedunderShare Plansforunissuedordinary shares of$1.00 Lim Huat,MrHsuanOwyang,SirAlanCockshaw, MrLimChinBengandJacksonPeterTai. Share Plansare administered bytheCompany’s ExecutiveResource andCompensationCommitteecomprisingMrPeterSeah Company were approved andadoptedbyitsmembersatanExtraordinary GeneralMeetingheldon16November2000.The The Share OptionPlan,Performance Share PlanandRestrictedStock(collectivelyreferred toasthe“Share Plans”)ofthe interest costof$103,000(2000:$10,000). comprises current servicecostsof$339,000(2000:$129,000),amortisationpast costsof$208,000(2000:$Nil)and unrecognised pastservicecostof$1,344,000(2000:$1,067,000).Theamountsrecognised intheincomestatement actuarial valuation,comprisespresent valueofobligationsunderthescheme$2,237,000(2000:$1,310,000),net those withcertainpredecessor corporations.Theprovision forretirement gratuityschemeat31December2001,basedon Benefit ispayablebasedonthelastdrawnsalaryofexecutiveandnumberyearsservicewithGroup, including The Group operatesanunfunded,definedbenefitRetirement GratuitySchemeforitsseniorexecutives,includingadirector. certain qualifyingperiodsbasedondurationofemployees’servicesrendered. This liabilityrelates principallytoprovision madebyaforeign subsidiaryinrelation toemployees’leaveentitlementgrante c Theoptionsgrantedexpire after5or10yearsfrom thedatesofgrant. (c) Theoptionsvestbetween1yearto5yearsafterthegrantdate. (b) Theexercise priceoftheoptions isseteitherat: (a) Other statutoryinformationregarding theShare Plansare setoutbelow: ANNUAL REPORT 2001 – Adiscounttothemarketpricenotexceeding20%ofinrespect ofthatoption. – A priceequaltothevolume-weightedaverageonSGX-SToverthree consecutivetradingdaysimmediately preceding thegrantofoption;or NOTES TOTHEFINANCIALSTATEMENTS oe20 0020 2000 2001 2000 2001 Note 1,465 7,774 7,774 9,239 9,239 ’0 ’0 ’0 $’000 $’000 $’000 $’000 572 893 h ru TheCompany The Group 6,006 6,006 6,813 6,813 807 564 243 375 375 375 375 – – – 1,080 1,080 1,080 1,080 d after – – – CL fin'l(pg65-186)proof525/3/023:45PMPage131 BUILDING FOR 4 Share Capital 34. Company of41,038,712(2000:24,448,985),detailswhichare disclosedinNote33(c). At theendoffinancialyear, there were optionsrelating totheCompany’s Share OptionPlanforunissuedordinary shares of 11/0118 0,0 0,0 .101/01/2003to31/12/2011 03/07/2002to02/07/2011 0.81 Movements inshare capitalare showninthestatementofchangesequity. 0.86 300,000 25/11/2001to23/11/2010 2,517,349,898 ordinary shares of$1each 100,000 – Issued andfullypaid: 0.62 – 05/08/2001to03/08/2005 19/06/2002to18/06/2006 200,000 19/06/2002to18/06/2011 0.76 0.88 0.88 172,500 2%redeemable convertible 05/08/2001to 03/08/2010 – 480,000 – 2,240,000 0.76 27/03/1999to25/03/2003 – 17,955,840 09/04/2000to07/04/2004 (90,000) 14/04/2001to 12/04/2010 – 4,000,000,000 ordinary shares of$1each (1,228,400) – 27/08/1997to25/08/2001 300,000 3,501,700 – 0.74 Authorised: – 22/03/1998to20/03/2002 – – 100,000 (430,100) – – 2,442,400 – 756,574 – 19,184,240 – 1,647,827 (654,600) – 2,330,000 – 13/06/2001to 11/06/2010 – – (47,288) (267,965) 13/06/2001to 11/06/2005 – – 1,544,743 0.61 – – – 0.61 (338,982) – 1.85 7,208,361 2.49 – (1,597,284) – 2,661,267 (462,033) 200,000 31/12/2001 2.50 – – – (207,861) 02/07/2001 2.50 3,931,800 – 480,000 18/06/2001 2.68 – – 18/06/2001 2.51 – 3,097,000 24/11/2000 2.51 – 1,915,792 803,862 24/11/2000 2.38 – 24/11/2000 2.61 1,883,725 24/11/2000 2.70 1,597,284 24/11/2000 4.82 7,670,394 24/11/2000 4.58 2,869,128 24/11/2000 2.54 24/11/2000 2.54 12/06/2000 12/06/2000 Movements ofshare optionsoutstanding: aegatdpie20 rne xrie asd20 rn period grant 2001 lapsed exercised granted 2001 price Date granted cumulative preference shares ofUS$1each LASTING VALUE xrie1JnayOtosOtoscneld eebra aeo Exercise atdateof December cancelled/ Options Options 1January Exercise $ 448952,1,4 53453 41,038,712 (5,324,513) – 21,914,240 24,448,985 usadn pin 1ofoptions 31 Options outstanding fotosottnigvalue outstanding of options ubro pin Fair ofoptions Number NOTES TOTHEFINANCIALSTATEMENTS Number 2,517,350 4,000,000 The Group andTheCompany ’0 $’000 $’000 255 012000 2001 2,517,350 4,000,000 255

the

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PAGE 132 6 MinorityInterests 36. 5 Reserves 35. CAPITALAND r The reserve onconsolidationcomprisesthenetexcessoffairvaluesassetsoverpurchase considerationin currency loansusedtofinanceinvestmentsinforeign subsidiaries. statements offoreign subsidiaries,associatedcompaniesandjointventure companies,as wellasfrom thetranslationofforeig The foreign currency translationreserve comprisesallforeign exchangedifferences arisingfrom thetranslationoffinancia companies andjointventure companies’revaluation surplusesanddeficits. The revaluation reserve comprisesthenetcumulativeincrease inthefairvalueofinvestmentproperties andshare ofassociate of theredeemable preference shares redeemed bytheCompanyanditssubsidiaries. The capitalredemption reserve isrequired bySection70(5)oftheCompaniesAct,Chapter50,anditrelates tothenominalamo interests are chargedatratesrangingfrom 6.00%to20.00%(2000:6.22%25.00%)perannum. parties involveddonotintendfortheamountstoberepaid withinthenext12months.Inrespect oftheinterest bearingadvan The balanceswithminorityshareholders are unsecured andhavenofixedtermsofrepayment. However, themanagementof Revaluation reserve Share ofnetassetssubsidiaries The capitalreserve comprisescapitalgainsondisposalofproperties andshare ofassociatedcompanies’capital reserve. The applicationoftheshare premium bySections69-69FoftheCompaniesAct,Chapter50. accountisgoverned The Group andCompany (Accumulated loss)/Unappropriated profit Reserve onconsolidation Foreign currency translationreserve Capital redemption reserve Capital reserve Share premium Amounts owingto/(by)minorityshareholders (advances) espect ofsubsidiaries,associatedcompaniesandjointventure companiesacquired priorto1January2001. – interest bearing – interest free ANNUAL REPORT 2001 NOTES TOTHEFINANCIALSTATEMENTS 3,429,376 3,482,747 (378,797) 339,913 (12,313) 94,173 6,528 3,867 ’0 ’0 ’0 $’000 $’000 $’000 $’000 0120 012000 2001 2000 2001 h ru TheCompany The Group 1,069,745 3,453,684 4,525,043 (24,708) (45,570) 65,421 3,648 2,823 2,161,144 2,431,233 1,885,905 1,860,414 269,776 (69,629) 95,120 ’0 $’000 $’000 313 012000 2001 – – – – The Group 2,161,144 2,431,452 1,853,861 1,646,675 177,472 269,069 29,714 l 1,239 d n ces, unt – – – – CL fin'l(pg65-186)proof525/3/023:45PMPage133 8 (Loss)/Profit Before Taxation 38. BUILDING FOR 7 Revenue 37. (Loss)/Profit before taxationincludesthefollowing: a Otheroperatingincome (a) Property tradingincome consistsofanappropriate portionofthecontractedsalesvalueonwhichincomehasbeen (c) RevenueoftheGroup comprisesgross rental, carparkandotherrelated incomefrom investmentproperties andleased (b) RevenueoftheCompanycomprisesgross rental andotherrelated incomefrom leasedproperties, feesfrom theprovision of (a) Commercial Revenue oftheGroup andoftheCompanyisanalysedasfollows: Serviced residences Residential Inter-segment elimination Hotels Investment holdingandothers Property, project andothermanagementservices r the revenue oftheGroup. consultancy servicesandincomefrom servicedapartmentsandhoteloperations.Intra-group transactionsare excludedfrom properties, incomefrom property trading,feesfrom theprovision ofproperty andproject management, related agency and gross dividendincome. property management,related agencyandconsultancyservices,feesfrom theprovision ofmanagementsupportservicesand Interest income Gain onforeign exchange Gain ondisposal/liquidationof Dividend income(gross) Others Profit onsaleofleaseholdinvestment properties Commission income ecognised underthepercentage ofcompletionmethod. – subsidiaries – fixeddeposits – investeecompaniesandothers – associatedandjointventure companies subsidiaries andassociatedcompanies – interest capitalisedindevelopment – related corporations LASTING VALUE rprisfrsl 13(b) properties forsale NOTES TOTHEFINANCIALSTATEMENTS oe20 0020 2000 2001 2000 2001 Note 3,367,939 2,054,157 758,498 619,320 558,761 138,947 470,576 116,286 (59,485) 29,488 13,755 42,120 83,990 53,703 29,701 16,088 28,138 (1,408) 9,954 6,301 ’0 ’0 ’0 $’000 $’000 $’000 $’000 ’0 ’0 ’0 $’000 $’000 $’000 $’000 0120 012000 2001 2000 2001 35 – h ru TheCompany The Group TheCompany The Group 2,921,708 1,863,900 162,320 463,626 398,084 117,769 (79,032) 35,377 27,257 69,117 50,829 23,807 10,249 91,440 65,921 (1,755) 4,944 3,294 6,890 763 665 – 101,436 155,587 55,486 90,427 60,285 70,937 30,499 4,378 3,682 1,193 421 – – – – – – – – – – – 407,552 373,173 82,424 69,223 77,680 34,379 4,584 3,172 1,064 3,680 691 10 – – – – – – – – – –

PAGE 133 CL fin'l(pg65-186)proof525/3/023:45PMPage134

PAGE 134 CAPITALAND c Otherexpenses (c) Staff costs (b) Number ofemployeesasat31December Allowance fordoubtfulreceivables Increase inliabilityforshortterm W Increase inliabilityforretirement gratuity Others Increase inliabilityforlongserviceleaveentitlement Allowance forforeseeable losses Allowance fordiminutioninvalueof Amortisation of Auditors’ remuneration Non-audit fees Bad debtswrittenoff ANNUAL REPORT 2001 ages andsalaries,includingemployers’ usdais(onacut)7 8 – associatedcompanies(loanaccounts) – subsidiaries(loanaccounts) accumulating compensatedabsences contributions todefinedcontributionplans netecmais(onacut)11 – investeecompanies(loanaccounts) o-rd 17 – non-trade rd 15 – trade ndvlpetpoete 13 on developmentproperties usdais7 8 – associatedcompanies – subsidiaries hr emivsmns11 – shortterminvestments ogtr netet 11 – longterminvestments nagbeast 4 – intangibleassets eshl netetpoete 5 – leaseholdinvestmentproperties – auditorsoftheCompany – otherauditors – otherauditors – auditorsoftheCompany – trade – non-trade – current year – current year – overprovision inrespect ofprioryear – underprovision inrespect ofprioryear NOTES TOTHEFINANCIALSTATEMENTS oe20 0020 2000 2001 2000 2001 Note 407,712 357,190 445,183 13,296 15,443 26,191 10,881 47,689 10,000 82,773 4,738 2,175 2,879 1,252 1,340 1,999 2,228 1,232 ’0 ’0 ’0 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 650 124 376 0120 012000 2001 2000 2001 (28) 41 8 – – – h ru TheCompany The Group TheCompany The Group 301,178 281,103 18,888 11,512 9,168 1,048 4,949 2,278 9,483 1,387 1,623 1,680 139 527 124 122 629 53 – – – – – – – – – 22,771 10,191 9,065 1,831 2,000 2,434 (705) 133 68 33 99 33 – – – – – – – – – – – – – – – 15,098 14,217 295 881 84 80 80 – – – – – – – – – – – – – – – – – – – – CL fin'l(pg65-186)proof525/3/023:45PMPage135 BUILDING FOR * There was also an amount of $385,000 which was charged tothesharepremiumaccount ofasubsidiary.* Therewasalsoanamountof$385,000whichcharged Professional fees (e) Directors’ remuneration (d) W W W Charged toshare premium Included ascostofdevelopmentproperties Charged toprofit andlossaccount Directors’ remuneration 3 Share ofassociatedcompanies’exceptionalitems Impairment lossonproperty underdevelopment Property, plantandequipmentwrittenoff Operating leaseexpenses 3 3 Loss ondisposalofproperty, plantandequipment Impairment lossonproperty, plantandequipment Depreciation ofproperty, plantandequipment Fees paidandpayabletofirmsinwhichcertaindirectors oftheCompanyare members: ieofo nagbeast 4 rite-off ofintangibleassets rite-down ininvestmentpreviously chargedto rite downinvalueofoverseasinvestmentproperties r for saleandproperty, plantandequipment – directors oftheCompany – otherdirectors evaluation reserve LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS oe20 0020 2000 2001 2000 2001 Note 160,348 15,941 34,620 27,379 40,863 8,535 2,253 2,598 8,150 9,941 5,937 ’0 ’0 ’0 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 ’0 ’0 ’0 $’000 $’000 $’000 $’000 913 791 0120 012000 2001 2000 2000 2001 2001 2000 2001 – – – h ru TheCompany The Group TheCompany The Group TheCompany The Group 188,680 143,802 120,224 38,595 39,150 59,716 4,128 9,785 1,500 2,206 7,579 550* 301 937 153 – 2,371 2,307 1,425 2,371 117 414 90 – – – – – – – – – 2,050 3,665 1,113 2,050 109 250 39 7 – – – – – – – –

PAGE 135 CL fin'l(pg65-186)proof525/3/023:45PMPage136

PAGE 136 CAPITALAND f Financecosts (f) development andproperties forsale. The financecostshavebeencapitalisedatarateof0.86%to8.50%(2000:0.90%10.50%)forproperties under Borrowing costscapitalisedin: T RCCPS dividend Interest paidandpayableto: otal borrowing costs ANNUAL REPORT 2001 – associatedandjointventure companies – related corporations eeomn rprisfrsl 13(b) – developmentproperties forsale – properties underdevelopment Less: – subsidiaries – others – debtsecurities – bankloansandoverdrafts NOTES TOTHEFINANCIALSTATEMENTS oe20 0020 2000 2001 2000 2001 Note 432,778 490,185 483,855 253,967 198,694 (46,375) (11,032) (57,407) 28,915 2,279 6,330 ’0 ’0 ’0 $’000 $’000 $’000 $’000 – – h ru TheCompany The Group 422,870 503,467 497,376 153,468 309,027 (69,530) (11,067) (80,597) 22,100 12,292 6,091 489 – 140,803 140,803 134,473 43,915 52,545 36,049 6,330 1,715 249 – – – – 114,090 114,090 110,973 11,381 59,049 39,265 3,117 489 789 – – – – CL fin'l(pg65-186)proof525/3/023:45PMPage137 BUILDING FOR 9 Taxation 39. c Tax Charge (c) Deferred Taxation (b) Provision forTaxation (a) T T The Companyanditssubsidiaries Deferred At 31December At 31December The Companyanditssubsidiaries Current T T Deferred taxationofsubsidiaries(disposed)/acquired At 1January T Payments made Provision made Provision ofsubsidiariesdisposed At 1January ranslation adjustments ranslation adjustments ransfer toprovision fortaxationaccount ransfer toprofit andlossaccount ransfer from deferred taxationaccount – Basedoncurrent year’s results – (Over)/Underprovision inrespect ofprioryear – Basedoncurrent year’s results – Overprovision inrespect ofprioryear – Basedoncurrent year’s results – Partnerships – Associatedcompanies – Jointventure companies LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS 105,461 117,123 142,390 108,695 102,356 172,988 (11,662) (10,228) (11,662) (27,666) (85,949) (39,828) 12,137 98,467 67,480 98,467 (3,729) (1,754) (9,908) 3,729 6,338 ’0 ’0 ’0 $’000 $’000 $’000 $’000 723 441 181 0120 012000 2001 2000 2001 h ru TheCompany The Group (163,117) 116,137 121,613 127,139 102,356 172,988 129,944 116,137 221,558 (13,807) 10,102 91,310 22,110 (1,570) (3,012) (3,968) (5,526) (9,238) (5,526) (2,546) 3,968 3,712 900 – 195,428 177,374 20,181 20,181 20,181 20,181 20,181 (2,127) 238 238 – – – – – – – – – – – – – – 177,374 87,885 87,885 87,885 89,489 87,885 87,885 238 238 – – – – – – – – – – – – – – –

PAGE 137 CL fin'l(pg65-186)proof525/3/023:45PMPage138

PAGE 138 1 ChangesinAccountingPolicies 41. 0 EarningPerShare 40. CAPITALAND a Adoptionofnew/revised accounting standards andtheireffects (a) pershare Fullydilutedearnings (b) pershare Basicearnings (a) (accumulated losses)/unappropriated profits at1January2001and2000;comparativeshavebeenrestated. payable byshareholders (refer tonote42).Thechangehasbeenappliedretrospectively byadjustingtheopeningbalancesof dividends. Thenewaccountingpolicyistorecognise proposed finaldividendsonlyafterthey havebeenformallydeclared The adoptionofSAS10(revised 2000)hasresulted intheGroup andtheCompanyreversing theliabilityforproposed final r the definitionofextraordinary itemtootheroperatingincomeorexpenses.Therevised policyhasbeenapplied The adoptionofSAS8(revised 2000)hasresulted intheGroup reclassification oftheextraordinary itemwhichdoesnotmeet $286,979,000) andtheweightedaverageof2,517,349,907(2000:2,505,330,159)ordinary shares. pershareThe calculationoffullydilutedearnings isbasedonthelossaftertaxandminorityinterests of$275,046,000(2000 $286,979,000) andtheweightedaverageof2,517,349,898(2000:2,503,306,323)ordinary shares. pershareThe calculationofbasicearnings is basedonthelossaftertaxandminorityinterests of$275,046,000(2000: certain subsidiariesoperate. income, subjecttoagreement bythetaxauthoritiesandcompliancewithregulations intherespective countriesinwhich approximately $342.0million(2000:$244.8million)whichare availableforcarryforward andsetoff againstfuture taxable As at31December2001,theGroup hasunutilisedtaxlossesandweartearallowancesamountingto profit fortheyear. Thisismainlyduetocertainexpenseswhichare disallowablefortaxpurposes. The taxchargeishigherthantheamountarrivedatbyapplyingSingapore statutorytaxrateof24.5%(2000:25.5%)tothe SAS 10(revised 2000)–EventsaftertheBalanceSheetDate SAS 8(revised 2000)–NetProfit orLossforthePeriod,FundamentalErrors andChangesinAccountingPolicies In 2001,theCompanyadoptedninenew/revised standards inthemannerelaboratedbelow: d varyingstatutorytaxratesofdifferent countriesinwhichtheGroup operates. (d) lossesincurred bysomesubsidiarieswhichcannotbeoffset againstprofits byothercompaniesintheGroup. earned (c) timingdifferences inthetreatment ofcertainitemsforaccountingandtaxpurposeswhichtherelated deferred tax (b) certainexpensesbeingdisallowedfortaxpurposes; (a) There isataxchargefortheGroup despitethelossforyear. Thisismainlydueto: The Group The Company etrospectively byreclassifying thecomparativesinprofit andlossaccountstoconformwiththecurrent year’s presentatio ANNUAL REPORT 2001 the Comptroller ofIncomeTax; and However, theselossesare availableforset-off againstfuture profits oftherelevant subsidiariessubjecttotheagreement of benefits havenotbeenrecognised; NOTES TOTHEFINANCIALSTATEMENTS : n. CL fin'l(pg65-186)proof525/3/023:45PMPage139 BUILDING FOR (accumulated losses)/unappropriated profits ofthecurrent andpriorperiodortochangesincomparatives. Operations andSAS36(2000)–ImpairmentofAssets,havenotgivenrisetoanyadjustmentstheopeningbalances The adoptionofSAS32(2000)–FinancialInstruments:Disclosure andPresentation, SAS35(2000)–Discontinuing profits at1January2001and 2000; comparativeshavebeenrestated. 41(b)). Thechangehasbeenappliedretrospectively byadjustingtheopeningbalancesof(accumulatedlosses)/unappropriated expenses. Thenewaccountingpolicyistochargeoutthepre-operating expensesasandwhenitisincurred (refer tonote hasresulted intheGroup reversing thedeferred expenditure forpre-operating The adoptionofSAS34(revised 2000) (refer tonote4). policy onnetprofit fortheyeararisingfrom current year’s acquisition ofbusinessesisacharge$17,193,000fortheGroup the comparativesoropeningbalancesof(accumulatedlosses)/unappropriated profits; theeffect ofchangeinaccounting discontinued. Theresult ofadoptingthischoicetransitionalprovision isthattheadoptionofSAS22hasnoeffect on the attributablegoodwill/(negativegoodwill)indeterminationofprofit orlosswhenthebusinessesare disposedofor of notrestating thegoodwill/(negativegoodwill)thathaspreviously beenwrittenoff againstreserves, withtheviewofinclu negative goodwillarisingonacquisitionofbusinesses(refer tonote2(e)).TheGroup hasadoptedthetransitionalprovision On adoptionofSAS22(revised 2000),theGroup haschangedtheaccountingpolicyontreatment ofgoodwilland balance ofaccumulatedlossesat1January2001;comparativeshavenotbeenrestated. the recognition criteriagiveninthestandard (refer tonote24).Thereversal hasbeenaccountedforbyadjustingtheopening The adoptionofSAS31(2000)hasresulted intheGroup reversing theprovisions forcyclicalmaintenancethatdonotmeet have beenaccountedforbyadjustingthecurrent year’s financialstatements. In addition,theprovisions fortheemployeebenefitsobligationssubsidiariesofCompanyare insignificant.These at 1January2001and2000. Therefore theadoptionofstandard hasnotgivenrisetoanyadjustmentsintheopeningbalancesofunappropriated profits The Companyhadalwaysaccruedforshorttermemployeebenefitsintheformofaccumulatingcompensatedbalances. employees render servicesthat increase theirentitlementtofuture compensatedabsences(refer tonote33). short termemployeebenefitsintheformofaccumulatingcompensatedbalances.Theseobligationsare provided whenthe The adoptionofSAS17(2000)hasresulted intheGroup andtheCompanymakingprovisions fortheobligationsinrespect of Other Standards SAS 34(revised 2000)–IntangibleAssets SAS 22(revised 2000)–BusinessCombinations SAS 31(2000)–Provisions, ContingentLiabilitiesandAssets SAS 17(2000)–EmployeeBenefits LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS ding

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PAGE 140 2 Dividends 42. CAPITALAND Final dividendproposed After thebalancesheetdate,Directors proposed thefollowingdividends.Thedividendshavenotbeenprovided for. As previously reported: Effects ofchangesinaccountingpolicies (b) Effect ofadoptingSAS10: Final dividendpaidinrespect ofyear2000 feto dpigSS3 poiin)24 Effect ofadoptingSAS31(provisions) Net (losses)/profits fortheyear, asrestated Effect ofadoptingSAS22(businesscombinations) Net (losses)/profits before changesin Effect ofchangesinaccountingpolicyon Opening (accumulatedlosses)/unappropriated 42 Effect ofadoptingSAS10(dividendsproposed) Opening (accumulatedlosses)/unappropriated Effect ofchangesinaccountingpolicyon – Finaldividendpaidinrespect ofyear1999 – Reversaloffinaldividendproposed – Finaldividendproposed The changesinaccountingpolicies,totheextentthattheyare appliedretrospectively, havethefollowingimpact(netoftax) Effect ofadoptingSAS34(intangibleassets) ANNUAL REPORT 2001 accounting policies net (losses)/profits fortheyear: profits, asrestated profits, aspreviously reported (accumulated losses)/unappropriated profits: NOTES TOTHEFINANCIALSTATEMENTS oe20 0020 2000 2001 2000 2001 Note (275,046) (257,853) (45,570) (40,720) (61,577) (17,193) (22,005) 57,018 38,012 38,012 16,007 38,012 4,850 ’0 ’0 ’0 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 0120 012000 2001 2000 2001 2000 2001 2000 2001 – – – – h ru TheCompany The Group TheCompany The Group TheCompany The Group (286,979) (286,979) 301,438 301,438 275,273 (38,012) (22,005) 38,012 48,170 48,170 26,165 48,170 48,170 38,012 – – – 269,069 269,069 231,057 57,018 38,012 38,012 39,032 39,032 38,012 38,012 – – – – – – – 251,646 251,646 (38,012) 38,012 17,423 17,423 17,423 38,012 : – – – – – – – – – CL fin'l(pg65-186)proof525/3/023:45PMPage141 BUILDING FOR 3 NotestotheConsolidatedStatementofCashFlows 43. b Neteffect ofdisposal ofsubsidiaries (b) Neteffect ofacquisitionsubsidiaries (a) Shareholders’ loantosubsidiariesrepaid Gain ondisposalofsubsidiaries Minority interests Non-current liabilities Current liabilities Current assets Other non-current assets Minority interests Non-current liabilities Current liabilities Current assets Other non-current assets Net cashinflow/(outflow)onacquisition/disposalofsubsidiaries Cash inflowondisposalofsubsidiaries Overdraft/Cash ofsubsidiariesdisposed Sale consideration Realisation ofrevaluation reserve Provision forincomesupportand profit warranty Net assetsdisposed Equity interest retained asassociatedandjointventure companies Net assets Cash outflowonacquisitionofsubsidiaries Cash ofsubsidiariesacquired Purchase consideration Goodwill arisingonconsolidation Amounts previously accountedforasassociatedcompanies Net assetsacquired Interests inassociatedcompanies Investment properties Property, plantandequipment Interests injointventure companies Interests inassociatedcompanies Properties underdevelopment Investment properties Property, plantandequipment (Less)/Add: Less: Less: LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS 1,078,220 1,160,179 1,439,240 1,436,994 (124,239) (370,116) (319,943) (764,114) (252,899) 163,297 548,268 825,321 675,126 300,032 254,699 437,672 309,336 (59,224) (95,512) (81,959) (47,133) 84,222 40,991 28,414 93,431 45,333 12,709 (9,096) 1,788 ’0 $’000 $’000 012000 2001 – – – – – – (263,883) (485,941) (495,010) (280,566) (373,892) (262,324) 881,848 143,645 442,382 674,186 258,563 103,928 584,973 (31,662) (57,254) (68,490) 30,124 27,733 61,925 30,520 93,326 92,049 61,925 59,522 (2,346) 2,453 3,593 2,741 1,277 3,208 – – – – –

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PAGE 142 4 Commitments 44. CAPITALAND The maturitydatesoftheseinterest ratecapsandinterest rateswapscontractsare: Asat31December2001,theGroup andtheCompanyhaveentered intointerest ratecapsandinterest rateswapswith (c) Commitments (b) a OperatingLeaseCommitments (a) The Group andtheCompanyhadfollowingcommitmentsasatbalancesheetdate: W Interest rateswaps Interest ratecaps From 1to2years After 5years From 2to5years ithin 1year notional principalvaluesasfollows: than oneyearare asfollows: Future minimumleasepaymentsfortheGroup andtheCompanyonnon-cancellableoperating leaseswithatermofmore From 2to5years From 1to2years W Lease paymentsdue: – capital expenditure contractedbutnot Commitments inrespect of: After 5years – capitalexpenditure authorisedbutnotcommitted – development expenditure contractedbutnot – developmentexpenditure authorisedbutnotcommitted – purchase ofproperties – capital contributioninassociated,jointventure – shareholders’ loancommittedbutnotremitted – forward foreign exchangecontracts – others ANNUAL REPORT 2001 ithin 1year provided forinthefinancialstatements provided forinthefinancialstatements and investeecompanies NOTES TOTHEFINANCIALSTATEMENTS 1,108,479 1,133,279 1,133,279 897,364 623,439 250,169 361,830 197,943 389,995 119,800 261,654 265,546 407,648 24,800 94,421 80,906 30,978 73,622 47,453 72,117 ’0 ’0 ’0 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 0120 012000 2001 2000 2000 2001 2001 2000 2001 2000 2001 2000 2001 – – – h ru TheCompany The Group TheCompany The Group TheCompany The Group 948,980 972,880 972,880 757,263 254,553 299,310 258,165 106,148 348,570 185,000 140,000 217,364 390–– – 23,900 61,975 50,788 35,642 44,854 85,821 20,630 60,876 69,443 Restated 110 – 427,500 427,500 427,500 182,500 160,000 87,580 85,000 87,580 2,024 1,078 946 – – – – – – – – – – – 455,110 455,110 455,110 201,170 185,000 60,000 1,170 1,170 8,940 – – – – – – – – – – – – – CL fin'l(pg65-186)proof525/3/023:45PMPage143 BUILDING FOR 5 ContingentLiabilities(Unsecured) 45. 6 SignificantRelatedPartyTransactions 46. of businessontermsagreed between theparties: During thefinancialyear, there were thefollowingsignificantrelated partytransactionswhichwere carriedoutinthenormalc individuals orotherentities. versa, orwhere theGroup andthepartyare subjecttocommoncontrol orcommonsignificantinfluence.Relatedpartiesmaybe or indirectly, tocontrol thepartyorexercise significantinfluenceoverthepartyinmakingfinancialandoperatingdecisions, For thepurposeofthesefinancialstatements,partiesare considered toberelated totheGroup iftheGroup hastheability, d T Rental income Management andagencyfeeincome Accounting servicefeeincomeandothers Rental expense Management feeincome Associated andJointVenture Corporations Rental income Ultimate HoldingCorporation Management feeexpense Immediate HoldingCorporation Construction andproject managementcosts Management andagencyfeeincome Rental income Other RelatedCorporations Accounting servicefeeincome Rental expense Management feeincome Subsidiaries Guarantees issuedonbehalfof Identity ofrelated parties Sale ofcompletedresidential properties Purchase ofcomputers,air-tickets andothers Others raining expense capitalised indevelopmentproperties – jointventure companies – associatedcompanies – subsidiaries LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS 137,403 (31,763) (21,964) 43,758 40,500 86,922 (7,250) (2,300) 1,393 5,533 3,017 1,014 7,997 9,981 (803) ’0 ’0 ’0 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 379 279 0120 012000 2001 2000 2001 2000 2001 2000 2001 – – – – h ru TheCompany The Group TheCompany The Group 167,725 167,725 (7,000) (2,446) 1,382 5,933 2,157 5,418 1,082 (101) (609) – – – – – – – – – – 31,024 25,958 31,024 (7,250) (1,220) (1,175) (99) – – – – – – – – – – – – – – 432,556 432,556 or vice 27,450 (7,000) (1,642) ourse 1,687 irectly (561) (69) – – – – – – – – – – – – –

PAGE 143 CL fin'l(pg65-186)proof525/3/023:45PMPage144

PAGE 144 7 FinancialInstruments 47. CAPITALAND f Sensitivityanalysis (f) Liquidityrisk (e) Credit risk (d) Foreign currency risk (c) Interest raterisk (b) Financialriskmanagementobjectivesandpolicies (a) tax byapproximately $88million. As atbalancesheetdate,itisestimatedthata1percentage changeinborrowing costswouldaffect theGroup’s lossbefore portfolio soastominimiseitsimpactonearnings. In managingitsexposure tointerest rate,foreign currency, credit andliquidityrisks,theGroup strivestoprudentlybalance term fundingsoastoachieveoverallcosteffectiveness. raise committedfundingfrom bothcapitalmarketsandfinancialinstitutionsprudentlybalanceitsportfoliowithsomeshort maintain availablebankingfacilitiesofareasonable leveltoitsoveralldebtposition.Asfaraspossible,theGroup willco sufficient levelofcashor convertibleinvestmentstomeetitsworkingcapitalrequirement. Inaddition,theGroup strives re The Group activelymanagesitsdebtmaturityprofile, operatingcashflowsandtheavailabilityoffundingsoastoensure thata appropriate credit criteriaandofhighcredit standing. r risk withanyentity. TheGroup theprocess hasguidelinesgoverning ofgrantingcredit asaserviceorproduct provider inits The Group hasadiversifiedportfolioofbusinessesandatbalancesheetdate,there were nosignificantconcentrationofcredit currency translationreserve. Thesetranslationdifferences are reviewed andmonitored onaregular basis. which are heldforlongterminvestmentpurposes,thedifferences arisingfrom suchtranslationare captured undertheforeign In relation toitsoverseasinvestmentsinforeign subsidiarieswhosenetassetsare exposedtocurrency translationriska acceptable level. Foreign exchangeexposures intransactionalcurrencies otherthanfunctionalcurrencies oftheoperatingentitiesare kepttoa investment islocatedorbyborrowing incurrencies thatmatchthefuture revenue stream tobegeneratedfrom itsinvestments. The Group maintainsanaturalhedge,wheneverpossible,byborrowing inthecurrency ofthecountryinwhichproperty or Hong Kongdollars,Japaneseyen,Sterlingpounds,SwissfrancsandUnitedStatesdollars. The Group andisexposedtovariouscurrencies, operatesinternationally mainlyAustraliandollars,Chinesereminbi, Euros, The Group suchasinterest alsouseshedginginstruments rateswapsandcapstominimiseitsexposure tointerest ratevolatili it tocapitaliseoncheaperfundinginalowinterestrateenvironment levelofprotection andachievecertain againstratehik actively reviews itsdebtportfolio,takingintoaccounttheinvestmentholdingperiodandnatureofassets.Thisstrategy The Group managesitsinterest rateexposure bymaintainingaprudentmixoffixedandfloatingrateborrowings. TheGroup purposes butwere mainlyplacedinfixed depositsorshort termcommercial paperswhichyieldbetterreturns thancashatbank. The investmentinfinancial products are mainlyshort terminnature andtheyare notheldorissuedfortradingspeculative products anddebtobligations. The Group’s exposure tomarketriskforchangesininterest rateenvironment relates mainlytoitsinvestment infinancial monitor theexposures soastoensure appropriate measures canbeimplementedonatimelyandeffective manner. and itsgeneralriskmanagementphilosophy. Inconnectionwiththis,theGroup hasestablishedaframeworkandprocess to exposures. Asawhole,theGroup hasimplementedriskmanagementpoliciesandguidelineswhichsetoutitstoleranceof portfolio business.TheGroup’s riskmanagementapproach seekstominimisethepotentialmaterialadverseeffects from these The Group andtheCompanyare exposedtointerest rate,foreign currency, credit andliquidityrisksarisingfrom itsdiversifie espective segmentsofbusiness.Investmentsandfinancialtransactionsare restricted withcounterpartiesthatmeetthe ANNUAL REPORT 2001 financing, repayment andfundingneedsare met.Aspartofitsoverallprudentliquiditymanagement,theGroup maintains NOTES TOTHEFINANCIALSTATEMENTS nstantly allows es.

its nd

d to ty. n ll CL fin'l(pg65-186)proof525/3/023:45PMPage145 BUILDING FOR g Fairvalues (g) 31 Decemberare represented inthefollowingtable: The aggregate netfairvaluesoffinancialassetsandliabilitieswhichare notcarriedatfairvalueinthebalancesheetas instruments notincludedinNote47(g)above. The followingmethodsandassumptionsare usedtoestimatefairvaluesofthefollowingsignificantclassesfinancial balance sheetdate. fair valuehasbeendeterminedbydiscountingtherelevant cashflowsusingcurrent interest ratesforsimilarinstrumentsatth The fairvalueoflong-termquotedsecuritiesistheirbidpriceatthebalancesheetdate.Forotherfinancial instrumen i)Non-Current UnquotedInvestments (ii) Long-term unsecured debtsecurities Long-term unsecured bankloans 11(a),(b) The Company Long-term secured bankloans Financial Liabilities Quoted bonds Quoted equitysecurities Financial Assets The Group Long-term unsecured debtsecurities Long-term secured debtsecurities Long-term unsecured bankloans i Cashand Cash Equivalents,Current Investments,Trade andOtherReceivables, ShortTerm Borrowings, Trade and (i) – fixed – floating – fixed – floating – fixed – floating – fixed – floating do notanticipatethecarryingamountsrecorded tobesignificantlyinexcessoftheirfairvaluesatthebalance sheetdate. lack ofquotedmarketpricesandtheinabilitytoestimatefairvaluewithoutincurring excessivecosts.However, theGroup It isnotpracticaltoestimatethefairvalueofGroup’s long-termunquotedequityandbondinvestmentsbecauseofthe Other Payables The carryingamountsapproximate fairvaluesduetotherelatively shorttermmaturityofthesefinancialinstruments. LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS 11(b) 30(ii) 30(ii) 30(i) 30(i) oeCryn Fair Carrying Note oeCryn Fair Carrying Note 31 31 31 31 ,1,3 4,101,217 4,015,833 ,7,5 1,214,196 1,170,250 4,0 964,010 942,809 7,5 694,040 672,754 7,5 269,970 270,055 4,5 235,605 242,753 9,0 944,700 895,000 757,531 757,640 0,9 899,185 900,190 84469,496 88,434 09963,594 80,969 00050,000 50,000 ,6 5,902 7,465 mutvalue amount mutvalue amount ’0 $’000 $’000 ’0 $’000 $’000 2001 2001

ts, e

PAGE 145 CL fin'l(pg65-186)proof525/3/023:45PMPage146

PAGE 146 8 InformationRequired byParagraph7NinthSchedule,CompaniesAct,Chapter50 48. CAPITALAND and fundsheldintrust)are as follows: The Group’s andtheCompany’s liabilitiespayableanddebtsreceivable atthebalancesheetdate(excludingdeferred taxation, After 5years After 5years From 2to5years From 1to2years From 2to5years From 1to2years W W The Company W W The Group Comparativeinformation (h) ithin 2years ithin 1year ithin 2years ithin 1year “Financial Instruments–Disclosure andPresentation”. No comparativeinformationfortheprevious yearispresented assuchinformationwasnotavailableuponadoptionofSAS32 i)Unrecognised FinancialInstruments (iv) ii Non-Current LoansDuefrom/(to) Subsidiaries,AssociatedCompanies,JointVenture Companies,Investee (iii) ANNUAL REPORT 2001 neetrt wpareet 44(c) 44(b) 44(c) 44(b) Forward foreign exchangecontracts Interest rateswapagreements The Company Forward foreign exchangecontracts Interest rateswapagreements The Group The notionalamountandnetfairvalueoffinancial instrumentsnotrecognised inthebalancesheetasat31Decemberare: current marketratesasatthebalancesheetdate. Group expectstopayorreceive toterminatethecontracts(netoftransactioncosts)orreplace thecontractsattheir The valuationoffinancialinstrumentsnotrecognised inthebalancesheetdetailedthisnotereflects amountswhichthe r carrying amountsrecorded atthebalancesheetdatetobesignificantlydifferent from thevaluesthatwouldeventuallybe term entered bythepartiesinvolvedandwithoutincurringexcessivecosts.However, theGroup doesnotanticipatethe It isnotpracticaltoestimatethefairvalueofnon-current loanaccountsdueprincipallytoalackoffixedorrepayment Companies andMinorityShareholders eceived orsettled. NOTES TOTHEFINANCIALSTATEMENTS 036162,291,540 10,346,146 ,7,6 – 1,172,466 ,2,8 590,500 1,527,288 1,380,652 25,820 1,480,407 1,459,170 ,8,6 1,623,071 1,686,063 1,623,071 1,506,184 910,888 7,693,273 885,068 6,234,103 ,3,5 2,213,571 3,334,351 2,0 – 121,000 7,7 – 179,879 iblte et iblte Debts Liabilities Debts Liabilities aal eevbepybereceivable payable receivable payable ’0 ’0 ’0 $’000 $’000 $’000 $’000 0120 002000 2000 2001 2001 oeNetFair Note 055802,161,903 10,525,840 ,2,6 – 1,027,367 ,2,3 1,068,698 57,526 2,021,032 1,689,218 ,0,6 1,385,129 2,104,969 1,385,129 1,641,189 1,093,205 7,477,441 1,035,679 5,788,223 ,5,5 2,719,041 2,453,658 ,1,2 (33,637) 1,516,127 ,0,7 (33,686) 1,108,479 1,0 – 115,000 3,8 1,333,912 233,689 6,8 – 463,780 1,8 (19,562) 515,080 2,0 (19,562) 427,500 49 407,648 750– 87,580 oinlvalue(payable)/ Notional mutreceivable amount ’0 $’000 $’000 2001 cash CL fin'l(pg65-186)proof525/3/023:45PMPage147 BUILDING FOR 9 Subsidiaries 49. a Allsubsidiariessetoutbeloware incorporatedandconductingbusinessintheRepublicofSingapore: (a) usdaisAtvte fSae yteCmayCostofInvestments bytheCompany ofShares Activities Subsidiaries iec elyPeLdDratOrdinary Ordinary Investmentholding Dormant Ordinary Pidemco RealtyPteLtd Investmentholding (Philippines) PteLtd Pidemco Land (Indonesia) PteLtd Pidemco Land aiaadRsac omn Ordinary Ordinary Dormant Investmentholding CapitaLand Research Ordinary Residential Limited Investmentholding Ordinary CapitaLand Services HoldingsPteLtd CapitaLand Property Ordinary Investmentholding Pidemco CapitalPteLtd) (formerly knownas Investmentholding Management Limited CapitaLand Fund Ordinary andinvestment Property investment Commercial Limited CapitaLand Ordinary Beauty World PteLtd Property development Pte Ltd Areca Investment Land PteLtd Alexandrite Investment Ordinary holding aia oe t t rpryivsmn Ordinary Property investment Capital Tower PteLtd as ChrysocollaPteLtd) Pte Ltd(formerlyknown I netet t t netethligOrdinary Investmentholding Ordinary PID InvestmentsPteLtd Ordinary Investmentholding Ordinary Investmentholding Pidemco InvestmentPteLtd pFission PteLtd Dormant Hill Street Centre PteLtd LASTING VALUE odn Redeemable holding rnia ls Percentage Held Class Principal NOTES TOTHEFINANCIALSTATEMENTS Preference Redeemable Preference Redeemable Preference Preference Redeemable Preference Redeemable Preference Redeemable Preference Redeemable Preference Redeemable 0120 012000 2001 2000 2001 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 %% – – 82.5 100 100 100 100 100 0 * * 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 85 – – 2,000,000 1,000,000 1,316,031 500,000 674,150 158,503 36,280 40,903 59,296 4,200 1,000 2,000 5,400 6,460 ’0 $’000 $’000 – – * * * * * * * 1,316,031 674,150 158,503 36,280 40,903 59,296 9,302 4,200 1,000 3,511 2,000 5,400 6,460 – – * * * * * * * *

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PAGE 148 CAPITALAND b OthersubsidiariesintheGroup are: (b) 2 JointlyheldbyAreca InvestmentPteLtdandPidemcoLand(Philippines)Ltd: (iv) v JointlyheldbyRaffles HoldingsLimitedandPidemcoLand(Phillippines)PteLtd: 2 (v) usdaisAtvte fSae yteCmayCostofInvestments bytheCompany ofShares Activities Subsidiaries v)JointlyheldbyAreca InvestmentPteLtd,SomersetCapitalLandLtdandStamford HoldingsPteLtd: (vi) aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Directly heldbyPidemcoRealtyPteLtd: (iii) Directly heldbyPidemcoLand(Indonesia)PteLtd: (ii) Activities Directly heldbyAreca InvestmentPteLtd: @ (i) Name ofCompany Previously directly heldbytheCompany# 3Y ANNUAL REPORT 2001 Development PteLtd aflsHlig iie netethligSingapore andtreasury services Investmentholding Raffles HoldingsLimited Limited ue netet& netethligOrdinary Investmentholding Suten Investment& CHtl Pe t oe prtrSingapore Hoteloperator RC Hotels(Pte)Ltd andtreasury services Singapore Provision offinancial PL ResidentialTreasury Limited G netetPeLdIvsmn odn Ordinary Investmentholding SGN InvestmentPteLtd h sotGop netethlig Singapore Investment holding, The AscottGroup iie Islands Singapore Singapore Provision offinancial Investmentholding PL ResidentialCapital BritishVirgin Pyrite PteLtd Investmentholding Limited Castle StarDevelopments Add: Ordinary Ordinary Investmentholding Ordinary Investmentholding Stamford HoldingsPteLtd Ordinary Investmentholding Somerset LandPteLtd Holdings PteLtd Investmentholding Somerset International Somerset CapitalPteLtd iie)ofcommercial, property investment andthemanagement Limited) known asTheAscott Limited (formerly no netetPeLdIvsmn odn Ordinary Investmentholding angon InvestmentPteLtd rnia ls Percentage Held Class Principal rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal properties serviced apartment r esidential and NOTES TOTHEFINANCIALSTATEMENTS Preference Redeemable Preference Redeemable Place of 60.1 64.1 68.9 0120 012000 2001 2000 2001 0120 012000 2001 2000 2001 100 100 100 100 100 100 100 100 %% %% – – – – – 01– 60.1 89– 68.9 0 – 100 #O #O #O –– 100 100 100 100 100 100 100 89 + r r r dinary dinary dinary 5,873,712 5,873,712 69,489 ’0 $’000 $’000 – – – – – – * * * ’0 $’000 $’000 – – – – – – – 2,082,990 4,458,585 2,375,595 38,200 15,059 5,300 5,892 + – – – – * * * * * * * CL fin'l(pg65-186)proof525/3/023:45PMPage149 BUILDING FOR aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Activities Name ofCompany Wslk oe we TheSocialist Hotelowner Westlake 1 Directly heldbyPIDInvestmentsPteLtd: (viii) knownasPREMASHoldings(Asia)PteLtd): JointlyheldbypFissionPteLtdandPREMASInvestments(formerly (vii) 1 JointlyheldbySutenInvestment&DevelopmentPteLtdandSGNLtd: (ix) x Directly heldbyYangon3Y InvestmentPteLtd: (x) 1 Directly orindirectly heldbyCapitaLandResidentialLimited: (xii) Directly heldbyCapitaLandFundManagementLimited(formerlyknownasPidemcoCapitalPteLtd): (xi) 1 1 GnokPyLdIvsmn odn Australia Investmentholding GanlookPtyLtd 1 Nbe oe eeomn Singapore andmanagement Development Pte Ltd eNabled Homes uhuWgn oe we ThePeople’s RepublicofVietnam Hotelowner andoperator Suzhou Wugong Company International oe o,Ldadoeao RepublicofChina andoperator Hotel Co.,Ltd utaadPoet netet Australia Property investment, Singapore Investmentholding Singapore Singapore Australand related services Investmentholding Ausprop Holdings Investment PteLtd Property Pidemco Capital Limited Tr SingMall Property Limited odnsLmtddevelopmentand Holdings Limited ami hrsIvsmn odn Australia Investmentholding Balmain Shores rsnPyLmtdPoet eeomn Australia Property development Brisun PtyLimited Pty Limited aiaadCia netethligSingapore Singapore Provision offinancial Investmentholding andtreasury services CapitaLand China Investments Ltd Silverlac RPoete t t netethligSingapore Investmentholding BR Properties PteLtd Singapore Holdings PteLtd Investment holding Singapore PteLtd Bornite Investmentholding Azurite LandPteLtd LASTING VALUE no oe iie oe we TheUnionof Hotelowner angon HotelLimited s aaeetmanagementand ust Management value addedservices technology of information and provision share information transact and to interact, based platform of aninternet- rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal n prtrMyanmar and operator investment holding NOTES TOTHEFINANCIALSTATEMENTS Place of 63.2 81.6 81.6 0120 012000 2001 2000 2001 100 100 100 100 100 100 100 100 100 55 %% – – – 19– 61.9 27– 82.7 46– 84.6 0 – 100 5– 55 +– +– +– +– +– +– #– #O #O #O –– Preference Redeemable r r r dinary dinary dinary ’0 $’000 $’000 – – – – – – – – – – – – – – – – – 80,630 – – – – – – – – – – – – – * * *

PAGE 149 CL fin'l(pg65-186)proof525/3/023:45PMPage150

PAGE 150 CAPITALAND Saga uogXnin rprydvlpetThePeople’s Property development ThePeople’s ShanghaiPudongXinxiang Property development 1 ShanghaiXinLi 1 aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares 1 HeldbytheGroup Business Activities 1 Name ofCompany 1 Szo ah hntn rprydvlpetThePeople’s Property development SuzhouTaihu Chungten 6 1 Saga a u Poet oslac,ThePeople’s Property consultancy, ShanghaiBaiHua 1 Saga iqn Poet eeomn ThePeople’s Property development ShanghaiXinqing 1 ANNUAL REPORT 2001 rpryDvlpetRepublicofChina Singapore Investmentholding Hua Yuan HoldingsPteLtd Co., Ltd Property Development rpryDvlpetRepublicofChina Co., Ltd Property Development hnhiXnWi rprydvlpetThePeople’s Property development Shanghai XinWei Singapore RepublicofChina Singapore Investmentholding Hua ShengHoldingsPteLtd Investmentholding Singapore Hua JianHoldingsPteLtd Investmentholding Pte Ltd) (formerly knownasFabulite ThePeople’s Hua JiaHoldingsPteLtd Managementservices Co., Ltd Consulting (Shanghai) CapitaLand Management rpryDvlpetRepublicofChina Co., Ltd Property Development hnhiXnRi rprydvlpetThePeople’s Property development Shanghai XinRui R elyPeLdPoet netet Singapore Property investment, Singapore CRL RealtyPteLtd Investmentholding Singapore PteLtd andconsultancy, CapitaLand Residential andinvestment Services PteLtd Management oslatC. t n oslac RepublicofChina andconsultancy & DevelopmentPteLtd Consultant Co.,Ltd hntnIvsmn Ivsmn odn Singapore Investmentholding ThePeople’s Project management Zhongten Investment Shanghai BaiTing rpryIvsmn auto n gnyRepublicofChina services valuationandagency Consultants Co.,Ltd Property Investment rpryDvlpetRepublicofChina Co., Ltd Property Development elEtt eeomn RepublicofChina Co., Ltd Real EstateDevelopment elEtt eeomn RepublicofChina Singapore Project management CapitaLand Residential Co., Ltd Real EstateDevelopment rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal ventures property-related consultancy in investment holding development and services NOTES TOTHEFINANCIALSTATEMENTS Place of 66.5 41.6 0120 012000 2001 2000 2001 100 100 100 100 100 100 100 70 95 52 70 80 51 95 85 %% +– +– +– +– +– +– +– +– +– +– +– +– #– #– #O #– –– r dinary ’0 $’000 $’000 – – – – – – – – – – – – – – – – – 25 – – – – – – – – – – – – – – – – CL fin'l(pg65-186)proof525/3/023:45PMPage151 BUILDING FOR aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Activities Name ofCompany idHtl nentoa rprydvlpetSingapore Property development Singapore Property development Hind HotelsInternational Pte Ltd Eastvale Development Singapore Property investment Singapore Clementi ComplexPteLtd Pte Ltd Singapore Dormant Property development Clarke QuayAdventure Land Ltd Choa ChuKang lawtrCnoiimPoet eeomn Singapore Property development Clearwater Condominium Pte Ltd olnaeRat iie rpryivsmn Singapore Property investment Hollandale RealtyLimited Limited TRvraePeLdPoet eeomn Singapore Property development Singapore Property development ST RivervalePteLtd Singapore ST ChestervalePteLtd Singapore Property investment PropertySims PlaceRealtyLimited development Pte Ltd Pinevale Condominium Pte Ltd Singapore Property investment Singapore KR RealtyPteLtd Property development Singapore Pte Ltd Property development Jurong West Land Pte Ltd Jurong Development Singapore Singapore Property investment Investmentholding PlacePteLtd Cairnhill Blissmore PteLtd iec eeomn netethligSingapore Investmentholding Pidemco Development Singapore Dormant Ladyhill (Private)Limited id netetPeLdDratSingapore Dormant Pindo InvestmentPteLtd Singapore Property development Nassim HillRealtyPteLtd rhr on t t rpryivsmn Singapore Property investment Orchard PointPteLtd LASTING VALUE and development and development rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal NOTES TOTHEFINANCIALSTATEMENTS Place of 89.7 0120 012000 2001 2000 2001 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 95 80 %% +– +– +– +– +– +– +– +– #O #O #O #O #O #O #O #O #O #– #O #O #O Preference Redeemable Preference Redeemable Preference Redeemable Preference Redeemable r r r r r r r r r r r r dinary dinary dinary dinary dinary dinary dinary dinary dinary dinary dinary dinary ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – – – – – 100,000 14,100 70,000 34,700 66,490 1,000 6,670 1,000 1,000 1,000 1,000 1,000 1,000 620 – – – – – – – – – * *

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PAGE 152 CAPITALAND 1P 1 1 Ω CnrlUinLmtdPoet netetHongKong HongKong Property investment Property investment CentralUnionLimited 1 CentralHillLimited 1 aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Activities Name ofCompany 1 ANNUAL REPORT 2001 apieIvsmn netethligSingapore Investmentholding Pte Ltd Malaysia anddevelopment Sapphire Investment Amethyst) Investmentholding PT PakuwonSubentra (formerly knownas Plushland SdnBhd Sdn Bhd plHlig t t netethligSingapore Investmentholding Opal HoldingsPteLtd ILN Mlyi)Ivsmn odn Malaysia Malaysia Investmentholding Inliquidation PIDLAND (Malaysia) Singapore Lavish StrataSdnBhd Singapore Investmentholding Investmentholding Singapore Va Austvale HoldingsLtd Investmentholding Aust HoldingsLtd Prime EquitiesPteLtd (Japan) PteLtd iec adIvsmn odn Singapore Investmentholding Pidemco Land (HK) PteLtd MLn t t rprydvlpetSingapore Property development W TM LandPteLtd iec adIvsmn odn Singapore Investmentholding Pidemco Land T VDvlpetPeLdPoet eeomn Singapore Property development To Singapore SV DevelopmentPteLtd Property development ParkPteLtd ST Windermere W Pte Ltd eneCutPeLdPoet eeomn Singapore Property development Singapore Leonie CourtPteLtd Property development HongKong Loft CondominiumPteLtd Treasury andrelated Hua RuiInvestmentsLtd rent t t omn Singapore Dormant PteLtd orbernite auo mtytPoet netet Indonesia Property investment T PakuwonAmethyst smr eeomn rprydvlpetSingapore Property development estmere Development osaeLn t t rprydvlpetSingapore Property development oodsvale LandPteLtd a elyPeLdDratSingapore Dormant paz RealtyPteLtd d odnsPeLdIvsmn odn Singapore Investmentholding nda HoldingsPteLtd rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal activities NOTES TOTHEFINANCIALSTATEMENTS Place of 0120 012000 2001 2000 2001 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 51 60 75 %% +– +– +– +– +– +– +– +– +– +– +– +– #– #O #– #O #– #– #O #O #O #O #O #O Preference “A” Redeemable Preference Redeemable Preference Redeemable r r r r r r r r dinary dinary dinary dinary dinary dinary dinary dinary ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – – – – – – – 150,000 13,006 21,863 17,490 70,000 1,000 1,000 9,641 1,000 – – – – – – – – – – – – – – – – * * CL fin'l(pg65-186)proof525/3/023:45PMPage153 BUILDING FOR aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Activities Name ofCompany @ @ @ 1 @ @ @ Ω @ @ @ 1A @ @A 1 @ 1 1A 1 @W H Prh t iie elett gn Australia Realestateagent AHL (Perth)PtyLimited Singapore Investmentholding Zircon LandPrivateLimited H diitainPoet eeomn Australia Property development AHL Administration H diitainPoet eeomn Australia Property development AHL Administration (Qld) PtyLimited H etnr t iie rprydvlpetAustralia Property development AHL CentenaryPtyLimited (Vic) PtyLimited H rjcsPyLmtdAtn stuteAustralia Actingastrustee AHL Projects PtyLimited H elEtt Ra saeaetAustralia Realestateagent AHL RealEstate H an onsWo ciga rse Australia Actingastrustee AHL SaintJohn’s Wood Pty Limited H onDvlpet nlqiainAustralia Inliquidation AHL Town Developments Pty Limited ijd t iie ciga rse Australia Actingastrustee Aimjade PtyLimited Pty Limited DI(l)PyLmtdPoet eeomn Australia Property development ADWI (Qld)PtyLimited utaadH Poet eeomn HongKong Property development Australand HK Company Limited utaadWoeaeAtn stuteAustralia Actingastrustee Australand Wholesale Pty Limited Pty Limited utaadWoeaeAtn stuteAustralia Actingastrustee Australand Wholesale Limited) Wholesale Investments Australand Diversified (formerly knownas Investment Limited utaad(eec)Poet eeomn Australia Property development Australand (Regency) Investments No.2Limited utaadWoeaePoet eeomn Australia Property development Australand Wholesale Pty Limited rpryTut(omry andinvestment Property Trust) known asAustraland Property Trust (formerly utaadAatet rprydvlpetAustralia Property development Australand Apartments No. 1PtyLimited LASTING VALUE P iac t iie ciga rse Australia Actingastrustee WPT FinancePtyLimited r le adCmayPoet eeomn Australia Property development llied LandCompany lesRa ntTut rprydvlpetAustralia Property development alters RoadUnitTrusts hmdsPae rprydvlpetAustralia Property development chimedes Place rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal NOTES TOTHEFINANCIALSTATEMENTS Place of 12.6 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 5.5 0120 012000 2001 2000 2001 100 %% π π +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– #O –– Preference Redeemable r dinary ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – – 23,000 – – – – – – – – – – – – – – – – – – – – *

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PAGE 154 CAPITALAND aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Activities 1 Name ofCompany 1 1 @ 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ANNUAL REPORT 2001 utaadAatet rprydvlpetAustralia Property development Australand Apartments utaadAatet rprydvlpetAustralia Property development Australand Apartments No. 2PtyLimited utaadAatet rprydvlpetAustralia Property development Australand Apartments No. 3PtyLimited ot akNmne rprydvlpetAustralia Property development South ParkNominees No. 4PtyLimited utaadAatet rse Australia Trustee Australand Apartments Pty Limited) Investments (No.2) Diversified Wholesale known asAustraland Pty Limited(formerly utaadHlig rse Australia Trustee Australand Holdings (Qld) PtyLimited utaadIdsra omn Australia Dormant Australand Industrial Custodian PtyLimited utaadIdsra rse Australia Trustee Australand Industrial Constructions PtyLimited utaadIdsra rse Australia Trustee Australand Industrial Pty Limited utaadIdsra rse Australia Trustee Australand Industrial No. 2PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 3PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 4PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 5PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 6PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 7PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 8PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 9PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 10PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 11PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 12PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 13PtyLimited No. 14PtyLimited rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal NOTES TOTHEFINANCIALSTATEMENTS Place of 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 0120 012000 2001 2000 2001 %% +– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – CL fin'l(pg65-186)proof525/3/023:45PMPage155 BUILDING FOR aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Activities Name ofCompany 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1A 1A utaadIdsra rse Australia Trustee Australand Industrial utaadIdsra rse Australia Trustee Australand Industrial No. 15PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 16PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 17PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 18PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 19PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 20PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 21PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 22PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 23PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 24PtyLimited utaadIdsra rse Australia Trustee Australand Industrial No. 25PtyLimited utaadMngmn rprymngmn Australia Property management Australand Management Projects PtyLimited utaadAatet rse Australia Trustee Australand Apartments PtyLimited Services (Vic) thsnSre rprydvlpetAustralia Property development Atchison Street Pty Limited ala prmn rprydvlpetAustralia Property development Macleay Apartment Pty Limited eu prmnsPoet eeomn Australia Property development Nexus Apartments Holdings PtyLimited utaadAatetTuteAustralia Trustee Australand Apartment Pty Limited utaadAatetTuteAustralia Trustee Australand Apartment Nominees PtyLimited ltnmSre t iie rse Australia Trustee Platinum Street PtyLimited Nominees No.2PtyLimited Finance PtyLimited Pty Limited Construction Finance LASTING VALUE P o2Cntuto iace Australia Financier WPT No2Construction P o2Ps FnnirAustralia Financier WPT No2Post rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal NOTES TOTHEFINANCIALSTATEMENTS Place of 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 0120 012000 2001 2000 2001 %% –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

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PAGE 156 CAPITALAND aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Activities 1 Name ofCompany 1 1 1 1F 1F 1F 1F 1F 1F 1F 1F 1F 1 1W @ 1 @ @ @ @ @ ANNUAL REPORT 2001 utaadWoeaeTuteAustralia Trustee Australand Wholesale utaadWoeaeTuteAustralia Trustee Australand Wholesale Investments (No.3)Limited reiePoet rse Australia Trustee Braeside Property Investments No.4Limited ebun prmn odn uliglcneAustralia Holdingbuildinglicence Apartment Melbourne Pty Limited Pty Limited Pty Limited Pty Limited Pty Limited Pty Limited Pty Limited Pty Limited Pty Limited Developments PtyLimited lzbt tet rprydvlpetAustralia Property development Elizabeth Street Developments PtyLimited Melbourne PtyLimited Melbourne iknedEttsPoet eeomn Australia Property development Birkenhead Estates Pty Ltd lctw eieta rprydvlpetAustralia Property development Blacktown Residential Pty Limited ewc eeomn rprydvlpetAustralia Property development Berwick Development Unit Trust aia iisHuigTutPoet eeomn Australia Property development Capital CitiesHousingTrust Unit Trust hrhl sae t iie rprydvlpet Australia Property development Churchill EstatesPtyLimited olg qaePoet eeomn Australia Property development College Square tno odN.1 rprydvlpetAustralia Property development Stanton RoadNo.1 Residential PtyLimited Retail PtyLtd) known asCollegeSquare Pty Limited(formerly r r r r r r r r r swtrN.9Poet eeomn Australia Property development eshwater No.9 swtrN.8Poet eeomn Australia Property development eshwater No.8 swtrN.7Poet eeomn Australia Property development eshwater No.7 swtrN.6Poet eeomn Australia Property development eshwater No.6 swtrN.5Poet eeomn Australia Property development eshwater No.5 swtrN.4Poet eeomn Australia Property development eshwater No.4 swtrN.3Poet eeomn Australia Property development eshwater No.3 swtrN.2Poet eeomn Australia Property development eshwater No.2 swtrN.1Poet eeomn Australia Property development eshwater No.1 le 9&1 tg BPoet eeomn Australia Property development alker W9&10Stage4B rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal NOTES TOTHEFINANCIALSTATEMENTS Place of 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 0120 012000 2001 2000 2001 %% +– +– +– +– +– +– +– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – CL fin'l(pg65-186)proof525/3/023:45PMPage157 BUILDING FOR aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Activities Name ofCompany @S @ Ω @ @ @ @ @ @ @ @ @ @ @ @ 1 @ @ @ 1R Ω @S @ @ @ @ rzsnPyLmtdIvsmn odn Australia Investmentholding Crazesun PtyLimited Accommodation PtyLimited) as CollegeSquare Student Limited (formerlyknown eoaPyLmtdI iudto Australia Inliquidation Devoba PtyLimited aea uligAtn stuteAustralia Actingastrustee Gateway Building er en uligAtn stuteAustralia Actingastrustee Henry DeaneBuilding Nominees PtyLimited er en uligTutPoet eeomn Australia Property development Henry DeaneBuildingTrust Nominees PtyLimited dbl t iie ciga rse Australia Acting astrustee Idabell PtyLimited efotPyLmtdAtn stuteAustralia Actingastrustee Jenfrost PtyLimited elvleDvlpetPoet eeomn Australia Property development Kellyville Development abtPyLmtdPoet eeomn Australia Property development Laibut PtyLimited Unit Trust adi t iie ciga rse Australia Actingastrustee Landwin PtyLimited arso eeomnsPoet eeomn Australia Property development Lauriston Developments al eisl t iie rprydvlpetAustralia Property development Manly PeninsulaPtyLimited Pty Limited olg qae rprydvlpetAustralia Property development College Square ioaDvlpet rprydvlpetAustralia Property development Mimosa Developments Residential Trust ecsl urne rprydvlpetAustralia Property development Newcastle Guarantee Pty Limited otenGtwyBidn ciga rse Australia Actingastrustee GatewayBuilding Northern Corporation PtyLimited otCteie rprydvlpetAustralia Property development Port Catherine Nominees PtyLimited ota t iie rprydvlpetAustralia Property development Portmar PtyLimited Developments PtyLtd an onsWo ntTutI iudto Australia Inliquidation Saint John’s Wood UnitTrust oestEttsPoet eeomn Australia Property development Somerset Estates tpe odAtn stuteAustralia Acting astrustee Stephen Road Pty Ltd aiynn ntTutPoet eeomn Australia Property development UnitTrust Maribyrnong Nominees PtyLimited htlso tetTutPoet eeomn Australia Property development Shettleston Street Trust LASTING VALUE uhPr o t Poet eeomn Australia Property development outh ParkNo.2Pty rna t iie ciga rse Australia Actingastrustee aranbay PtyLimited lhl t iie rprydvlpetAustralia Property development ylehall PtyLimited rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal and actingastrustee NOTES TOTHEFINANCIALSTATEMENTS Place of 12.6 12.6 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 5.5 0120 012000 2001 2000 2001 %% π π π +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

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PAGE 158 CAPITALAND aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Activities @ Name ofCompany 1T @T @ @ @ @T @T @T @T @W @W 1W @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ ANNUAL REPORT 2001 reieTutPoet eeomn Australia Property development Braeside Trust h otenGtwyPoet eeomn Australia Property development Australia Gateway The Northern Property development The GatewayBuildingTrust Pty Limited MBrePyLmtdPoet eeomn Australia Property development TM BurkePtyLimited Pty Limited Pty Limited Building Trust Pty Limited Tr C 8 9 9 rprydvlpetAustralia Property development ACN 085799695 ncotPyLmtdPoet eeomn Australia Property development Anicroft PtyLimited Pty Limited aso t iie rprydvlpetAustralia Property development Bassdoc PtyLimited asa t iie rprydvlpetAustralia Property development Basstar PtyLimited asomPyLmtdPoet eeomn Australia Property development Basstorm PtyLimited asoePyLmtdPoet eeomn Australia Property development Bayslore PtyLimited ehopPyLmtdPoet eeomn Australia Property development Bechcorp PtyLimited rnse t iie rprydvlpetAustralia Property development Branister PtyLimited aaa t iie rprydvlpetAustralia Property development Cavapak PtyLimited lia t iie rprydvlpetAustralia Property development Claical PtyLimited lia t iie rprydvlpetAustralia Property development Claicam PtyLimited ate odSetn rprydvlpetAustralia Property development Hartley RoadSmeaton adyPyLmtdPoet eeomn Australia Property development Jacday PtyLimited Grange PtyLimited eapl t iie rprydvlpetAustralia Property development Jeraspell PtyLimited adcPyLmtdPoet eeomn Australia Property development Kaydoc PtyLimited aryPyLmtdPoet eeomn Australia Property development Kayray PtyLimited lvr ern t t ciga rse Australia Actingastrustee alavera HerringPtyLtd leugr adn rprydvlpetAustralia Property development allebudgera Garden rn eeomnsPoet eeomn Australia Property development urana Developments aeSre t iie rprydvlpetAustralia Property development rade Street PtyLimited uk odnsPoet eeomn Australia Property development Australia Property development M BurkeHoldings M BurkeEstates ust lesRa t iie ciga rse Australia Actingastrustee alters RoadPtyLimited le oprto iie rprydvlpetAustralia Property development alker CorporationLimited ovleRa rpryPoet eeomn Australia Property development oodville RoadProperty rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal NOTES TOTHEFINANCIALSTATEMENTS Place of 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 5.5 0120 012000 2001 2000 2001 %% π – +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – CL fin'l(pg65-186)proof525/3/023:45PMPage159 BUILDING FOR aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Activities Name ofCompany @ @ @ Ω @ @ 1A 1 @ @B @ @M @ @W Ω @ Ω @ 1 @ 1 @ 1W @V @ @T uoePyLmtdPoet eeomn Australia Property development Ludove PtyLimited alnCv rmr rprydvlpetAustralia Property development Marlin CovePrimary anetPyLmtdPoet eeomn Australia Property development PtyLimited Marnwest Pty Limited Thoroughfare Company adt t iie nlqiainAustralia Inliquidation Navdate PtyLimited ewc t iie rprydvlpetAustralia Property development Neswick PtyLimited D t iie rprydvlpetAustralia Property development PDI PtyLimited utaadMngmn rprydvlpetAustralia Property development Australand Management uzrPyLmtdPoet eeomn Australia Property development Furzur PtyLimited Pty Limited Centre Management Limited) Management ServicesPty Australand Apartments (formerly knownas Services (NSW)PtyLimited D Qd t iie rprydvlpetAustralia Property development PDI (Qld)PtyLimited hlcv saeRa Poet eeomn Australia Property development Shellcove EstateReal Estate PtyLimited iaiwPyLmtdI iudto Australia Inliquidation Ridaview PtyLimited Pty Limited) W (formerly knownas icmPyLmtdPoet eeomn Australia Property development Rimcam PtyLimited iza t iie nlqiainAustralia Inliquidation Rinzeal PtyLimited oya t iie rprydvlpetAustralia Property development Roeyear PtyLimited oeeg aaeetPoet eeomn Australia Property development Sovereign Management ulc t iie rprydvlpetAustralia Property development Suelock PtyLimited (Qld) PtyLimited hnoPyLmtdPoet eeomn Australia Property development Thanzo PtyLimited o odUi rs ciga rse Australia Actingastrustee Box RoadUnitTrust rDriu ntTutPoet eeomn Australia Property development Mr DerrimutUnitTrust Investments PtyLimited LASTING VALUE aeSre ntTutPoet eeomn Australia Property development rade Street UnitTrust me t iie rprydvlpetAustralia Property development amden PtyLimited

r uh aicPyLmtdPoet eeomn Australia Property development authe PacificPtyLimited le ..PyLmtdPoet eeomn Australia Property development alker C.E.PtyLimited alker CivilEngineering le osldtdPoet eeomn Australia Property development alker Consolidated akrPyLmtdPoet eeomn Australia Property development & LWalker PtyLimited awySopn rprydvlpetAustralia Property development oadway Shopping rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal NOTES TOTHEFINANCIALSTATEMENTS Place of 12.6 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 0120 012000 2001 2000 2001 %% π – +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

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PAGE 160 CAPITALAND aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Activities Ω Name ofCompany @ Ω @ Ω @P @W 1W @ @W @W @W @W @W @W @W @W @W @W 1 @ @ ANNUAL REPORT 2001 leSa oitc nlqiainAustralia Inliquidation Blue StarLogistics htlso tetPoet eeomn Australia Property development Shettleston Street Pty Limited lgtf eeomnsI iudto Australia Inliquidation Flagstaff Developments Pty Limited en vneMngmn rprydvlpetAustralia Property development Avenue Management Ferny Pty Limited ejmPyLmtdI iudto Australia Inliquidation Newjem PtyLimited Pty Limited Management Limited (SA) PtyLimited e amDvlpet rprydvlpetAustralia Property development New FarmDevelopments (Qld) PtyLimited Pty Limited (NSW) PtyLimited Stage 1PtyLimited Stage 2PtyLimited Stage 3PtyLimited Stage 4PtyLimited Pty Limited Pty Limited Pty Limited Pty Limited utaadCntuto rprydvlpetAustralia Property development Australand Construction Pty Limited C 0 6 0 Poet eeomn Australia Property development ACN 002367704 Pty Limited) known asWalker Group Pty Limited(formerly C 0 4 1 Poet eeomn Australia Property development ACN 006342516 Pty Limited Pty Limited r le 9&1 osrcinPr alker W9&10Construction le 9&1 osrcinPr alker W9&10Construction le 9&1 osrcinPr alker W9&10Construction le 9&1 osrcinPr alker W9&10Construction le oprto rprydvlpetAustralia Property development alker Corporation le oprto rprydvlpetAustralia Property development alker Corporation le eeomnsPoet eeomn Australia Property development alker Developments le 9&1 tg Poet eeomn Australia Property development alker W9&10Stage1 le 9&1 tg Poet eeomn Australia Property development alker W9&10Stage2 le 9&1 tg Poet eeomn Australia Property development alker W9&10Stage3 le 9&1 tg Poet eeomn Australia Property development alker W9&10Stage4 le iac rprydvlpetAustralia Property development alker Finance pryIvsmn rprydvlpetAustralia Property development operty Investment rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal prydvlpetAustralia operty development prydvlpetAustralia operty development prydvlpetAustralia operty development prydvlpetAustralia operty development NOTES TOTHEFINANCIALSTATEMENTS Place of 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 0120 012000 2001 2000 2001 %% +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– +– ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – CL fin'l(pg65-186)proof525/3/023:45PMPage161 BUILDING FOR aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Activities Name ofCompany 1 @ @E @ @ 1W @W 1W @ @ @ @ 1 1 1 1 1 1 1 1 1 1 1 1 htwo ntTutPoet eeomn Australia Property development Chatswood UnitTrust arnPyLmtdPoet eeomn Australia Property development Garrin PtyLimited Pty Limited eln aieSrie Poet eeomn Australia Property development Hedland MarineServices eec htwo rprydvlpetAustralia Property development Regency Chatswood Pty Limited Construction PtyLimited Developments PtyLimited hr t iie rprydvlpetAustralia Property development Wharf WPtyLimited Developments PtyLimited tno odN.1 rprydvlpetAustralia Property development Stanton RoadNo.1 ot akN.2Ui rs rprydvlpetAustralia Property development South ParkNo.2UnitTrust Retail Trust) as CollegeSquare Unit Trust (formerlyknown tpe odTutPoet eeomn Australia Property development Stephen RoadTrust Accomodation Trust) College Square Student (formerly knownas taboeSre ntTutPoet eeomn Australia Property development Stradbroke Street UnitTrust udSre ntTutPoet eeomn Australia Property development Rudd Street UnitTrust h nutilPoetPoet eeomn Australia Property development The IndustrialProject h nutilPoet rprydvlpetAustralia Property development The IndustrialProject (Non-MOF) No.1UnitTrust h nutilPoet Poet eeomn Australia Property development The IndustrialProject (Non-MOF) No.2UnitTrust h nutilPoet Poet eeomn Australia Property development The IndustrialProject (Non-MOF) No.3UnitTrust h nutilPoet rprydvlpetAustralia Property development The IndustrialProject (Non-MOF) No.4UnitTrust adbeSre ntTutPoet eeomn Australia Property development Mandible Street UnitTrust (Non-MOF) No.5UnitTrust eueetRa ntTutPoet eeomn Australia Property development Beaudesert RoadUnitTrust prmn rjc Nn Poet eeomn Australia Property development Apartment Project (Non- prmn rjc Nn Poet eeomn Australia Property development Apartment Project (Non- MOF) No.1UnitTrust prmn rjc Nn Poet eeomn Australia Property development Apartment Project (Non- MOF) No.2UnitTrust MOF) No.3UnitTrust LASTING VALUE r le nutilPoet eeomn Australia Property development alker Industrial le ea t iie rprydvlpetAustralia Property development alker MenaiPtyLimited le eieta rprydvlpetAustralia Property development alker Residential noHlig rprydvlpetAustralia Property development ongo Holdings rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal NOTES TOTHEFINANCIALSTATEMENTS Place of 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 5.5 5.5 0120 012000 2001 2000 2001 %% π π – – +– +– +– +– +– +– +– +– +– +– +– +– –– –– –– –– –– –– –– –– –– –– –– –– ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

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PAGE 162 CAPITALAND aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Activities 1 Name ofCompany 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ANNUAL REPORT 2001 prmn rjc Nn Poet eeomn Australia Property development Apartment Project (Non- prmn rjc Nn Poet eeomn Australia Property development Apartment Project (Non- MOF) No.4UnitTrust o tetUi rs rprydvlpetAustralia Property development Roy Street UnitTrust MOF) No.5UnitTrust utaadWoeaePoet eeomn Australia Property development Australand Wholesale utaadWoeaePoet eeomn Australia Property development Australand Wholesale Property Trust No.3 utaadWoeaePoet eeomn Australia Property development Australand Wholesale Property Trust No.4 utaadWoeaePoet eeomn Australia Property development Australand Wholesale Property Trust No.5 utaadWoeaePoet eeomn Australia Property development Australand Wholesale Property Trust No.6 h rabahUi rs rprydvlpetAustralia Property development The Broadbeach UnitTrust Property Trust No.7 it o ntTutPoet eeomn Australia Property development Minto No.1UnitTrust it o ntTutPoet eeomn Australia Property development Minto No.2UnitTrust it o ntTutPoet eeomn Australia Property development Minto No.3UnitTrust it o ntTutPoet eeomn Australia Property development Minto No.4UnitTrust it o ntTutPoet eeomn Australia Property development Minto No.5UnitTrust it o ntTutPoet eeomn Australia Property development Minto No.6UnitTrust tpe odN.2 rprydvlpetAustralia Property development Stephen RoadNo.2 tno o ntTutPoet eeomn Australia Property development Stanton No.2UnitTrust Unit Trust enelSre ntTutPoet eeomn Australia Property development Street UnitTrust Ferndell ala tetUi rs rprydvlpetAustralia Property development Macleay Street UnitTrust prmn rjc o Poet eeomn Australia Property development Apartment Project No.2 prmn rjc o Poet eeomn Australia Property development Apartment Project No.3 Unit Trust prmn rjc o Poet eeomn Australia Property development Apartment Project No.4 Unit Trust prmn rjc o Poet eeomn Australia Property development Apartment Project No.7 Unit Trust prmn rjc o Poet eeomn Australia Property development Apartment Project No.8 Unit Trust prmn rjc o Poet eeomn Australia Property development Apartment Project No.9 Unit Trust prmn rjc o 0 rprydvlpetAustralia Property development Apartment Project No.10 Unit Trust Unit Trust rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal NOTES TOTHEFINANCIALSTATEMENTS Place of 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 0120 012000 2001 2000 2001 %% –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – CL fin'l(pg65-186)proof525/3/023:45PMPage163 BUILDING FOR aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Activities Name ofCompany 1 1 1 1 1 1 1 1T 1T 1T 1T 1T 1T 1T 1 1G 1G 1G xi)Directly orindirectly heldbyCapitaLandCommercial Limited: (xiii) o4-6Acio tet rprydvlpetAustralia Property development No 40-46AtchisonStreet ulcutPaeUi rs rprydvlpetAustralia Property development Bullecourt PlaceUnitTrust Unit Trust ue abu ntTutPoet eeomn Australia Property development Outer HarbourUnitTrust nutilPoetN.2 rprydvlpetAustralia Property development Industrial Project No.2 nutilPoetN.3 rprydvlpetAustralia Property development Industrial Project No.3 Unit Trust nutilPoetN.4 rprydvlpetAustralia Property development Industrial Project No.4 Unit Trust nutilPoetN.5 rprydvlpetAustralia Property development Industrial Project No.5 Unit Trust Unit Trust Unit Trust Unit Trust Unit Trust Unit Trust Unit Trust Unit Trust utaadWoeaePoet eeomn Australia Property development Australand Wholesale Unit Trust Unit Trust Unit Trust Unit Trust nts t t omn Singapore Singapore Dormant Singapore Investmentholding Anatase PteLtd Dormant Pte Ltd Amethyst Holdings Singapore Almandine PteLtd Property investment Adelphi Property PteLtd Property Trust No.2 letCmlxPeLdDratSingapore Dormant Albert ComplexPteLtd LASTING VALUE utPoetN.6 rprydvlpetAustralia Property development rust Project No.6 utPoetN.7 rprydvlpetAustralia Property development rust Project No.7 utPoetN.8 rprydvlpetAustralia Property development rust Project No.8 utPoetN.9Poet eeomn Australia Property development rust Project No.9 utPoetN.1 rprydvlpetAustralia Property development rust Project No.10 utPoetN.1 rprydvlpetAustralia Property development rust Project No.11 utPoetN.1 Poet eeomn Australia Property development rust Project No.12 r r r ytnsN.3Poet eeomn Australia Property development Australia Property development Australia eystanes No.3 Property development eystanes No.2 eystanes No.1 rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal NOTES TOTHEFINANCIALSTATEMENTS Place of see note51 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 63.2 0120 012000 2001 2000 2001 100 100 100 100 %% 0 – 100 0 – 100 #– #– #O –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– r dinary ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – – – 35,690 – – – – – – – – – – – – – – – – – – – – – –

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PAGE 164 CAPITALAND 4 aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares 4 HeldbytheGroup Business Activities Ω Name ofCompany 4 4 4 4 1 4 1 1 1 ANNUAL REPORT 2001 aayRvrieRa saedvlpr Singapore/ Realestatedeveloper, Canary Riverside eeomn t t gn n esrUnitedKingdom Singapore/ Constructionofahotel agentandlessor Singapore Canary RiversideEstate Singapore Development PteLtd Investmentholding Property investment Calomel PteLtd Brimitty PteLtd ThePeople’s Inliquidation Beijing EnctechElectronic aayRvrieEtt Mngmn fUnitedKingdom UnitedKingdom buildingforlong-term Managementof Canary RiversideEstate Pte Ltd lnoCutPeLdDratSingapore agent Dormant Singapore Leasingandmanaging Blanco CourtPteLtd Pte Ltd Birchvest Investments T aayRvrieHlig Ivsmn odn Singapore/ Investmentholding investmentproperties Canary RiversideHoldings Management Limited t t UnitedKingdom Singapore/ Investmentholding Canary RiversideHotel Pte Ltd t t UnitedKingdom Singapore/ Investmentholding Canary Riverside Pte Ltd lvrPoete t t rpryivsmn Singapore Singapore Property investment Clover Properties PteLtd Investmentholding Pte Ltd CapitaLand Investments oprto lc t rpryivsmn Singapore Singapore Property investment UnitedKingdom Property investment Corporation PlaceLtd Property development Clarke QuayPteLtd Singapore CL MoorgateLtd Property investment Pte Ltd China Square Holdings netet t t UnitedKingdom Singapore/ Investmentholding Canary RiversideProperties Investments PteLtd aiaadU rvso fUnitedKingdom UnitedKingdom Singapore HongKong Property investment Provision of managementservices Capitol Square PteLtd Provision of managementservices Management Limited CapitaLand UK UnitedKingdom Management Limited CapitaLand (HK) Investmentholding Limited CapitaLand UKHoldings Pte Ltd cnlg t RepublicofChina echnology Ltd rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal purposes investment holding and investment NOTES TOTHEFINANCIALSTATEMENTS Place of 62.5 62.5 62.5 62.5 62.5 62.5 62.5 0120 012000 2001 2000 2001 100 100 100 100 100 100 100 100 100 100 100 100 100 75 %% – 81– 98.1 0 – 100 0 – – 100 100 0 – 100 – 100 5– 75 #O #– #– #– #O #– #– #– #– #– #O #– #– #– #– Preference Redeemable r r r dinary dinary dinary ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – – – 21,000 31,260 230 – – – – – – – – – – – – – – – – – – – * CL fin'l(pg65-186)proof525/3/023:45PMPage165 BUILDING FOR 4 1E aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business 1 Activities Name ofCompany 4 4 hn lbIvsmn Cu we n prtrSingapore Clubownerandoperator China ClubInvestment SRHtl(K oe aaeetUnitedKingdom Hotelmanagement Singapore FSCR Hotel(UK) Singapore Property investment Singapore Property investment Fusion Investments Dormant Dahlia Properties PteLtd Cuppage Terrace PteLtd Pte Ltd Private Limited upg etePeLdPoet netetSingapore Singapore Property investment Investmentholding Singapore Cuppage Centre PteLtd Singapore Investments PteLtd Investmentholding CapitaLand (Office) Investmentholding Singapore Investments PteLtd CapitaLand (Industrial) Investments PteLtd Investmentholding CapitaLand (Retail) Japan Holdings Ltd CapitaLand Leisure Investmentholding Kabushiki Kaisha CapitaLand Commercial (Japan) PteLtd aiaadCmeca rpryivsmn Singapore Property investment Singapore CapitaLand Commercial Property Singapore investment consultancyand (Commercial) PteLtd CapitaLand ChinaHoldings Property management, Consultants PteLtd CapitaLand Property u eHlig t t netethligSingapore Investment holding Hua Ye HoldingsPteLtd Singapore/ Hotelmanagement CR HotelInvestment Limited t t UnitedKingdom Singapore Property investment Singapore/ Golden Square PteLtd Investmentholding FSCR InvestmentPteLtd Pte Ltd ua etePeLdDratSingapore Dormant Funan Centre PteLtd LASTING VALUE P M d h omn Malaysia Dormant SPL (M)SdnBhd investment holding rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal NOTES TOTHEFINANCIALSTATEMENTS Place of United Kingdom see note50 98.1 62.5 62.5 62.5 0120 012000 2001 2000 2001 100 100 100 100 100 100 100 100 100 100 100 100 100 75 %% – 81– 98.1 – 54.4 0 – 100 0 – 100 0 – – 100 – 100 – 100 100 0 – 100 5– 75 #O #O #O #– #O #O #– –– –– –– Preference “A” Redeemable Preference Redeemable Preference Redeemable r r r r r dinary dinary dinary dinary dinary ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – – – 80,000 39,400 39,330 27,100 31,410 60,030 5,590 – – – – – – – – – – – – – – – *

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PAGE 166 CAPITALAND aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Activities Name ofCompany ANNUAL REPORT 2001 rsoiePeLdIvsmn odn Singapore Investment holding Singapore andproperty investment Investmentholding Prasiolite PteLtd (Private) Limited Plaza Singapura LErp t t netethligSingapore Investment holding PL Europe PteLtd iec oe t t rpryivsmn Singapore managementservices Property investment provision ofproperty Pidemco Tower PteLtd Private Limited Management Services iec lc t t omn Singapore Singapore Property investmentand Dormant Pidemco Property Pidemco PlacePteLtd Pte Ltd iec ad(.. Ivsmn odn Singapore Investmentholding Singapore Pidemco Land(U.K.) Property investment Singapore Pidemco HousePteLtd Property investment Pidemco Centre PteLtd rhcaePeLdIvsmn odn Singapore Singapore Investmentholding Dormant Orthoclase PteLtd Murray Terrace PteLtd aaht adPeLdIvsmn odn Singapore Investmentholding Malachite LandPteLtd antt t t netethligSingapore Investment holding Singapore Property investment Magnetite PteLtd Singapore Property investment KBC PteLtd KAIC PteLtd (Shanghai) PteLtd uegIvsmn netethligSingapore Investment holding Huteng Investment & DevelopmentPteLtd utnIvsmn netethligSingapore Investmentholding Huaten Investment rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal NOTES TOTHEFINANCIALSTATEMENTS Place of see note51 0120 012000 2001 2000 2001 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 75 %% 0 – 100 #O #O #O #O #O #O #O #O #O #O #O #O #O #O #O #O Preference Redeemable Preference Redeemable Preference Redeemable Preference Redeemable Preference Redeemable Preference Redeemable Preference Redeemable Preference Redeemable Preference Redeemable r r r r r r r r r r r r r r r r dinary dinary dinary dinary dinary dinary dinary dinary dinary dinary dinary dinary dinary dinary dinary dinary ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – – – – – – 133,485 14,920 10,300 35,679 85,650 63,500 16,120 27,000 17,000 35,300 7,730 2,950 1,600 6,400 7,980 4,900 4,100 500 500 – * * * * * * CL fin'l(pg65-186)proof525/3/023:45PMPage167 BUILDING FOR aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Activities Name ofCompany Ω 1 1 1P Ω 1 1 1 Ω 1 1 1 TEcehIdtm nlqiainIndonesia Inliquidation PT EnctechIndotama Indonesia Indonesia andconsultancy Services) Project management as PTDBSProperty Services (formerlyknown Property investment PT CapitaLandProperty Singapore PT AmethystWahyu Investmentholding Pte Ltd Singapore PremierHealth Investments Singapore PteLtd International Healthcare consultancy Premier Healthcare Services Investmentholding Pte Ltd PremierHealth Holding Singapore (M) SdnBhd Investmentholding PteLtd International PremierHealth Corporation unu & niern I iudto Singapore Indonesia Singapore Inliquidation Investmentholding Quantum M&EEngineering Pte Ltd Dormant Pyramex Investments Jasamedika PT RegencyLaguna unu ytm t t netethligSingapore Investmentholding Quantum SystemsPteLtd Services PteLtd eec eia eteDratMalaysia Malaysia Dormant andoperator Regency MedicalCentre Hospitalowner (Seri Alam)SdnBhd Regency MedicalCentre ohrSur t t rpryivsmn Singapore Property investment Rochor Square PteLtd (Sungai Petani)SdnBhd atrEcehLdI iudto HongKong Inliquidation Sauter EnctechLtd oestMl t t omn Singapore HongKong Property investment Dormant HongKong Singapore Star AssetsProperty RepublicofChina Ltd Provision offinancial Somerset MallPteLtd Investmentholding and development ThePeople’s Splendid PathLimited Property investment Siam HoldingsLtd Estate Co.,Ltd Shanghai HutengReal LASTING VALUE r meHat oprto Ivsmn odn Malaysia Investmentholding emierHealth Corporation and development rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal and treasury services NOTES TOTHEFINANCIALSTATEMENTS Place of 56.7 98.1 98.1 55.3 88.3 0120 012000 2001 2000 2001 100 100 100 100 100 100 100 100 100 100 100 95 65 70 65 75 %% 67– 56.7 81– 98.1 81– 98.1 53– 55.3 83– 88.3 0 – 100 – – 100 – 100 100 – 100 0 – 100 – 100 5– 95 – 65 0– 70 5– 65 #O #– #O #– –– Preference Redeemable r r dinary dinary ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – – 9,470 2,000 – – – – – – – – – – – – – – – – – – – *

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PAGE 168 CAPITALAND Ω aeo opn ciiisBsns edb h ru fSae CostofInvestments ofShares HeldbytheGroup Business Activities Name ofCompany 1 xv Directly orindirectly heldbyCapitaLandProperty ServicesHoldingsPteLtd: (xiv) ANNUAL REPORT 2001 uetkSsesPeLdI iudto Singapore Inliquidation Supertek SystemsPteLtd W T Pte Ltd W Singapore V Property investment Limited Thomson Plaza(Private) T as Tampines MallLtd) Ml t frel nw rpryivsmn Singapore Property investment TMall Ltd(formerlyknown T T utnCnr t t omn Singapore Dormant Singapore Sultan Centre PteLtd Property management SingMall Property Trust t t administrationand Pte Ltd t t management Singapore Buildingcontracts, RESMA BuildingServices Pte Ltd EM rprySrie Ett n rprySingapore Estateandproperty RESMA Property Services SAO()SnBdLnsaigsrie Malaysia Landscaping services (M)SdnBhd ESMACO t t andinvestmentholding Pte Ltd SAOItrainlPoet aaeetSingapore Singapore Property management Estatemanagement International ESMACO Singapore andrelated services PteLtd ESMACO andvaluationservices Consultants PteLtd) Realestateagency DBSP Valuers &Property Singapore Pte Ltd(formerlyknownas Property Consultants Property management CapitaLand Valuers & Limited PREMAS International Pte Ltd mskTwrLmtdPoet netetSingapore Property investment emasek Tower Limited nogPgrHrtg Poet netet Singapore Property investment anjong PagarHeritage fn t t rpryivsmn Singapore/ Singapore Property investment Property investment agore Properties PteLtd afoni PteLtd coi iyPeLdIvsmn odn Singapore Investmentholding ictoria CityPteLtd nTe ely(t)LdPoet netetSingapore Property investment Realty(Pte)Ltd an Tien sbn netet netethligSingapore Investmentholding estbond Investments and related services rnia noprto/EfcieItrs Class Effective Interest Incorporation/ Principal r investment holding and consultancy elated services NOTES TOTHEFINANCIALSTATEMENTS United Kingdom Place of 75.6 0120 012000 2001 2000 2001 100 100 100 100 100 100 100 100 100 100 55 87 51 51 51 51 51 90 %% 56– 75.6 0 – 100 – 100 0 – 100 0 – 100 5– 55 +– +– +– +– +– +– #– #O #O #– #O #O –– Preference Redeemable Preference Redeemable r r r r dinary dinary dinary dinary ’0 $’000 $’000 – – – – – – – – – – – – – – – – – – – – – 390,129 40,960 28,000 68,800 1,850 1,000 – – – – – – – – – – – – – – – CL fin'l(pg65-186)proof525/3/023:45PMPage169 BUILDING FOR aeo opn rnia ciiisIcroainBsns HeldbytheGroup Incorporation/Business PrincipalActivities Name ofCompany 2 2 2 2 2 2 7 CostofInvestments Shares HeldbytheGroup Business Activities Name ofCompany 2B Directly orindirectly heldbyRaffles HoldingsLimited: (xv) 1 1 1 1 ´nreA etuatoeao Switzerland Germany Restaurantoperator Hoteloperator L´Entrée AG Friedrich HaerlinGmbH Jahreszeiten” von Hotel “Vier oes&Rsrs(K t netethligUnitedKingdom Australia Switzerland Investmentholding Investmentholding Hotels &Resorts(UK)Ltd Hotelownerandoperator (Australasia) PtyLtd Hotels &Resorts AG Hotel International optltbxpeldOeaino -rcrmn otlSingapore Operationofe-procurement portal hospitalitybex pteltd utnWyHtl n.Htlonradoeao UnitedStatesofAmerica Hotelownerandoperator Burton Way Hotel,Inc. oslat Saga)adrltdsrie RepublicofChina ThePeople’s andrelated services Property management andrelated services Co., Ltd HongKong Consultants (Shanghai) PREMAS Property Property management Limited Singapore PREMAS HongKong Singapore Provision ofindoorair PREMAS Environ PteLtd Investmentholding Indonesia Pte Ltd PREMAS Technologies Property management RepublicofChina investmentholding Singapore Singapore PT PREMASInternational consultancyservicesand Property management, (Asia) PteLtd) as PREMASHoldings townshipmanagement Realestateand Pte Ltd(formerlyknown ThePeople’s PREMAS Investments Property management Management PteLtd Singapore ESMACO Township Services (Shanghai)Co.,Ltd Realestatevaluation Singapore andagencyservices ESMACO Property Property ServicesPteLtd Engineeringservices ESMACO Valuers & Services PteLtd RESMA Engineering LASTING VALUE r wsHtlLdHtlonradoeao UnitedKingdom Hotelownerandoperator owns HotelLtd services quality andrelated and related services rnia noprto/EfcieItrs Class of Effective Interest Incorporation/ Principal NOTES TOTHEFINANCIALSTATEMENTS Place of lc f Effective Interest Place of 0120 012000 2001 2000 2001 100 100 100 100 70 60 51 51 51 51 %% +– +– +– +– #– #– #– #– –– –– ’0 $’000 $’000 49.2 60.1 60.1 60.1 59.7 46.8 60.1 60.1 012000 2001 %% – – – – – – – – – – – 2,082,990 60.1 60.1 60.1 60.1 60.1 60.1 – – – – – – – – – – – –

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PAGE 170 CAPITALAND 2 2 2 2 2 2 2 2 3 2 aeo opn rnia ciiisIcroainBsns HeldbytheGroup Incorporation/Business PrincipalActivities Name ofCompany 2 2 2 2 2 2 2T 2T 2 2 2 2 2 2 ANNUAL REPORT 2001 wsôe odn GIvsmn odn Switzerland Switzerland Hotelmanagementand Investmentholding Swissôtel ManagementAG Swissôtel HoldingAG tmodHtl t t netethligSingapore ThePeople’s RepublicofChina Investmentholding Hotelownerandoperator Stamford HotelsPteLtd Court HotelCo.,Ltd Shanghai Merchant H -etrsPeLdIvsmn odn Singapore Singapore Investmentholding Investmentholding RHL E-Ventures PteLtd (1997) PteLtd Resorts International aflsRylHtlPeLdHtlonradoeao Cambodia Hotelownerandoperator Raffles RoyalHotelPteLtd aflsItrainlLmtdHtlmngmn n aaeetSingapore Australia Thailand Hotelmanagementand oftourismrelated activities Limited Raffles International Hotelmanagementand Hotelmanagementand oftourismrelated activities Resorts (Thailand)Co.,Ltd Hotels& Raffles International (Australasia) PtyLimited Raffles International Raffles Hotel(1886) aflsGadHtlPeLdHtlonradoeao Cambodia Hotelownerandoperator Raffles GrandHotelPteLtd (Switzerland) PteLtd aflsCroainIvsmn odn Singapore Singapore Singapore Singapore Investmentholding Investmentholding Raffles Corporation Investmentholding (USA) PteLtd Raffles Corporation Investmentholding (Germany) PteLtd Raffles Corporation (Australasia) PteLtd Raffles Corporation Raffles CityTreasury Ltd) (formerly knownas Raffles City(Private)Limited) Limited (formerlyknownas aflsCnr Piae iie netethligSingapore Investmentholding Raffles Centre (Private)Limited ecatQa t t oe we n prtrSingapore Hotelownerandoperator Merchant QuayPteLtd C evcs(yny t t rs aae Singapore Singapore Trust manager MCH Services(Sydney)PteLtd Investmentholding Pte Ltd MCH Holdings(Shanghai) C Sde)TutHtlonradoeao Australia Switzerland Hotelownerandoperator Hotelownerandoperator MCH (Sydney)Trust Le PlazaBaselAG ne rauyLdIvsmn odn Singapore Investmentholding Singapore incel Treasury Ltd Realestateinvestmentandmanagement incel Properties (Private)

t Hotelowner, operatorandpr Ltd of tourismrelated activities of tourismrelated activities NOTES TOTHEFINANCIALSTATEMENTS operty invest etSingapore ment lc f Effective Interest Place of see note50 see note50 60.1 60.1 60.1 33.7 60.1 60.1 60.1 60.1 60.1 60.1 34.1 60.1 60.1 60.1 60.1 60.1 60.1 60.1 36.1 48.1 36.1 49.2 012000 2001 %% 60.1 33.7 60.1 60.1 60.1 60.1 60.1 60.1 34.1 60.1 60.1 60.1 60.1 60.1 60.1 60.1 60.1 36.1 48.1 36.1 – – – – CL fin'l(pg65-186)proof525/3/023:45PMPage171 BUILDING FOR aeo opn rnia ciiisIcroainBsns HeldbytheGroup Incorporation/Business PrincipalActivities Name ofCompany 2V 2 2 2S 2 2 Ω 2 8 @ Ω 2 @ 2 2S Ω Ω 2 1 3 3 3 5 xi Directly orindirectly heldbyTheAscottGroup Limited(formerlyknownasTheAscottLimited): (xvi) h aflsCmayIvsmn odn Singapore Germany TheNetherlands UnitedStatesofAmerica Investmentholding Switzerland Hoteloperator Germany (1997) PteLtd The Raffles Company Swissôtel BerlinGmbH Japan HongKong Hoteloperator Swissôtel Amsterdam B.V. Hotelownerandoperator Dormant Switzerland Investmentholding Rheinpark PlazaNeussGmbH Swissôtel Properties Inc. Salesoffice operations Salesoffice operations Sodereal HoldingS.A. Informationtechnologyservices Swissôtel (HongKong)Ltd Swissôtel JapanKK Swissôtel DataAG wsôe mlyetRcutetUnitedStatesofAmerica UnitedKingdom Belgium Salesoffice operations oftourismrelated activities UnitedStatesofAmerica Recruitment Swissôtel (London)Ltd Services, L.L.C. Hotelmanagementand Swissôtel Employment (USA) L.L.C. Swissôtel Management oftourismrelated activities Switzerland Dormant oftourismrelated activities UnitedStatesofAmerica Brussels S.A. Hotelmanagementand Swissôtel Management Europe AG Hotelmanagementand Swissôtel Management Corporation Swissôtel Management .. oftourismrelated activities L.L.C amCut evcdDratThailand UnitedKingdom Property management Dormant Ascott MayfairLimited Apartments Limited Palm CourttServiced sot(99 hiadLmtd omn Thailand Thailand Dormant Managementofservicedapartments Ascott (1989)ThailandLimited Limited Management (Thailand) Indonesia Ascott International Provision ofproperty managementservices PT KelolaPrimagraha) (formerly knownas Management Indonesia PT AscottInternational aaeetPeLdIndonesia/UnitedKingdom/ Singapore Singapore/Thailand/Malaysia/ Provision ofmanagementservices Managementofservicedapartments Aliph Properties PteLtd Management PteLtd Ascott International Grundstucksgesellchaft m.b.h LASTING VALUE e arsetn oe we Germany Hotelowner ier Jahreszeiten cééMnru aaeSA oe we n prtrSwitzerland Hotelownerandoperator ociété Montreux PalaceS.A. istl(ot mrc)Htlmngmn n aaeetUnitedStatesofAmerica Hotelmanagementand wissôtel (SouthAmerica) NOTES TOTHEFINANCIALSTATEMENTS lc f Effective Interest Place of The People’s RepublicofChina 60.1 59.7 59.7 59.7 59.7 59.7 60.1 60.1 60.1 50.0 60.1 45.1 45.1 60.1 60.1 60.1 60.1 68.9 68.9 68.9 68.9 68.9 68.9 68.9 60.1 012000 2001 %% 60.1 68.9 68.9 68.9 68.9 68.9 68.9 68.9 60.1 – – – – – – – – – – – – – – – –

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PAGE 172 CAPITALAND aeo opn rnia ciiisIcroainBsns HeldbytheGroup Incorporation/Business PrincipalActivities Name ofCompany 1 1 3 1 5 1G 2 2 2 3 1 ANNUAL REPORT 2001 sotSrie eiecs omn Australia Australia Australia) PtyLtd) as Somerset(Western Dormant Pty Ltd(formerlyknown Ascott ServicedResidences (Australia) Properties PtyLtd) Investmentholding (formerly knownasL.C. The Ascott(Australia)PtyLtd oest(utai)PeLdIvsmn odn Singapore Singapore Singapore Philippines Investmentholding Investmentholding Managementofservicedapartments Somerset (Australia)PteLtd Malaysia Singapore PteLtd Scotts Vietnam Property development Scotts Philippines,Inc. Foodcourtsandcentre management (Saraca) PteLtd Scotts Development Singapore Court SdnBhd Scotts PicnicFood Foodcourtsmanagementandoperation Centre management Pte Ltd Indonesia Scotts Centre Management PteLtd International Property developmentandmanagement Picnic FoodCourt PT BumiPerkasaAndhika aaaPeLd netethligSingapore Investmentholding Javana PteLtd u i eiecsPeLdIvsmn odn n rpryivsmn Singapore/The People’s Investmentholdingandproperty investment Hua XinResidencesPteLtd Limited (Guernsey) ryo t t netethligSingapore Singapore Indonesia Investmentholding Craydon PteLtd Investmentholding Calliston Holdings(S)PteLtd Property investment PT IndonesiaAmericaHousing poaHlig d h eeomn fsrie prmnsMalaysia Developmentofservicedapartments ThePeople’s RepublicofChina andcondominium Ipjora HoldingsSdnBhd Developmentofservicedapartments Development Co.,Ltd Shanghai HuaLiRealEstate u iHlig t t netethligSingapore Singapore Investmentholding Hua LiHoldingsPteLtd servicedapartments Investment anddevelopmentof Residences PteLtd) (formerly knownasStamford Ascott ResidencesPteLtd (Beijing) Co.,Ltd utsCenn evcs laigsrie Singapore ThePeople’s RepublicofChina Malaysia Property management ThePeople’s RepublicofChina Cleaningservices Ascott Property Management Pte Ltd Suites CleaningServices Dormant (Malaysia) SdnBhd Ascott ServicedApartments Property management (Shanghai) Co.,Ltd Ascott Property Management r epr netet netethligUnitedKingdom Investmentholding eenpark Investments NOTES TOTHEFINANCIALSTATEMENTS Republic ofChina lc f Effective Interest Place of 68.9 68.9 68.9 68.9 68.9 68.9 68.9 68.9 68.9 58.6 68.9 68.9 68.9 68.9 68.9 68.9 41.3 28.9 41.3 68.9 68.9 68.9 68.9 68.9 012000 2001 %% 51.7 51.7 51.7 68.9 68.9 68.9 68.9 68.9 68.9 58.6 68.9 68.9 68.9 68.9 68.9 68.9 41.3 28.9 41.3 68.9 68.9 68.9 68.9 – CL fin'l(pg65-186)proof525/3/023:45PMPage173 BUILDING FOR aeo opn rnia ciiisIcroainBsns HeldbytheGroup Incorporation/Business PrincipalActivities Name ofCompany 1 1G 1G 1 1E 1 1 1 1 tmodHsiaiyMngmn n etlo Singapore Australia servicedapartments Managementandrental of T Management PteLtd Property management Stamford Hospitality Oakford (Australia)PtyLtd V Pty Limited lnodPoete t t omn Singapore Junction 8Limited) TheSocialistRepublicofVietnam (formerly knownas Dormant Glenwood Properties PteLtd Property investment Apartment CompanyLimited Saigon Office andServiced atAsrlaTaig netethligSingapore Investmentholding Company (S)PteLtd East AustraliaTrading Company Limited ao oe etrPoet netetTheSocialistRepublicofVietnam Singapore Singapore Property developmentandinvestment Property investment Malaysia Colima PteLtd Investmentholding Company Ltd hotel apartments Hanoi Tower Center Pte Ltd Managementofserviceand NewZealand Burton Engineering Services SdnBhd Liang CourtHospitality Managementofservicedapartments Management (N.Z.)PteLimited) Somerset International Australia Limited (formerlyknownas Management (N.Z.)Pte Ascott International Managementofservicedapartments Pty Ltd) Management (Australia) Somerset International Pty Ltd(formerlyknownas Management (Australia) Ascott International sotItrainlIvsmn odn n aaeet Singapore Singapore ofservicedapartments Singapore Investmentholdingandmanagement Pte Ltd) Management (AsiaPacific) Somerset International Pte Ltd(formerlyknownas Management (2001) Ascott International Holdings Limited) Investmentholding (formerly knownasSomerset The AscottHoldingsLimited Investmentholding Pte Ltd Melody LandInvestments LASTING VALUE lkAe rprisPeLdIvsmn odn Singapore Investmentholding elok Ayer Properties PteLtd nua(ihn iie Ivsmn odn Singapore Investmentholding entura (Bishan)Limited s utai rdn Ivsmn odn HongKong Investmentholding ast AustraliaTrading r r ecif(ur il)PyLdPoet eeomn Australia Australia Property development Property development eencliff (SurryHills)PtyLtd eencliff Birchgrove NOTES TOTHEFINANCIALSTATEMENTS lc f Effective Interest Place of 68.9 68.9 51.9 56.9 68.9 68.9 27.7 41.3 41.3 68.9 41.9 55.1 68.9 68.9 68.9 68.9 68.9 68.9 68.9 012000 2001 %% 68.9 51.9 56.9 68.9 68.9 27.7 41.3 41.3 68.9 41.9 55.1 68.9 68.9 68.9 68.9 68.9 68.9 68.9 –

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PAGE 174 CAPITALAND 1G 1W 5 Ω Ω Ω aeo opn rnia ciiisIcroainBsns HeldbytheGroup Incorporation/Business PrincipalActivities Name ofCompany 1 1 1 1 1 1 1 1 1 1 1 ANNUAL REPORT 2001 lmtPeLdIvsmn odn Singapore Investmentholding Slamet PteLtd oest(ua)Ivsmn odn Singapore Investment holding countryclub Investments PteLtd Somerset (Wuhan) & CountryClubCo.,Ltd HMlsLmtdIvsmn odn n Singapore Investmentholdingand Indonesia HongKong Property investmentanddevelopment SH MallsLimited HongKong Islands BritishVirgin PT CiputraLiangCourt Managementofagolfandcountryclub Club CompanyLimited(HK) The MastersGolfandCountry Promotion andmarketingagent Club CompanyLimited(BVI) The MastersGolfandCountry Inliquidation Limited Profit KingdomInternational oestCmeca netethligSingapore Singapore Property investment Investmentholding LC Ventura (Tampines) PteLtd Development PteLtd Somerset Commercial Leyuan Co.,Ltd eaiTmrSnBdPoet netetMalaysia Singapore Malaysia Malaysia Project managementandinvestment Property investment Malaysia Piatra PteLtd Investmentholding SdnBhd Sejati Timur Sdn Bhd Liang Court(Malaysia) Dormant (M) SdnBhd Investmentholding Liang CourtHotelProperty Sdn Bhd Liang CourtDevelopment qioeEtrrs d h rpryivsmn Malaysia Property investment Equicore EnterpriseSdnBhd yai hneSnBdPoet eeomn Malaysia Property development Dynamic ChanceSdnBhd om il d h Poet netetMalaysia Property investment SdnBhd Cosmo Villa aaaEa nepie DratMalaysia Malaysia Property development (M)SdnBhd Casablanca Villa Dormant Sdn Bhd Cahaya EmasEnterprises C(uplnMlyi)PeLdIvsmn odn Singapore ThePeople’s RepublicofChina Investmentholding LC (KumpulanMalaysia)PteLtd Property developmentandinvestment Estate DevelopmentCo.,Ltd Shanghai Yong LiangReal aedrVe rprydvlpetAustralia Singapore Property development Investmentholding LC Genesis(Shanghai)PteLtd Regency PtyLimited Lavender View V nuaDvlpetPeLdPoet netetSingapore Property investment entura DevelopmentPteLtd aghuF ofDvlpetadoeaino ofad ThePeople’s RepublicofChina Developmentandoperationofagolf uangzhou FCGolf hnNwMnhn rprydvlpetadivsmn ThePeople’s RepublicofChina Property developmentandinvestment uhan NewMinzhong provision offinancingservices holding NOTES TOTHEFINANCIALSTATEMENTS lc f Effective Interest Place of 68.9 48.2 48.2 68.9 39.5 48.2 48.2 48.2 41.3 68.9 48.2 68.9 68.9 68.9 68.9 68.9 68.9 68.9 68.9 68.9 68.9 68.9 49.6 68.9 34.5 68.9 012000 2001 %% 68.9 48.2 48.2 68.9 39.5 48.2 48.2 48.2 41.3 68.9 48.2 68.9 68.9 68.9 68.9 68.9 68.9 68.9 68.9 68.9 68.9 68.9 49.6 68.9 34.5 68.9 CL fin'l(pg65-186)proof525/3/023:45PMPage175 BUILDING FOR aeo opn rnia ciiisIcroainBsns HeldbytheGroup Incorporation/Business PrincipalActivities Name ofCompany 9 1 @ C adn iie Poet eeomn UnitedKingdom Singapore/United Kingdom Investmentholdingandproperty development Property development Stanhope HoldingsPteLtd LCR Gardens Limited h sotGop(uoe Ivsmn odn Singapore Jersey Singapore Singapore/United Kingdom Investmentholdingandproperty development Singapore/United Kingdom Stanhope Gardens PteLtd Singapore/United Kingdom Investments (II)PteLtd) Investmentholding as SomersetVietnam Singapore/United Kingdom Singapore Pte Ltd(formerlyknown The AscottGroup (Europe) Investmentholding Investmentholding Ascott Group (Jersey)Limited Singapore Property development Investments PteLtd Property development Somerset (Vietnam) LCR RochesterPteLtd Singapore Property development Investmentholding LCR DraytonPteLtd Singapore LCR Devonshire PteLtd Property development Singapore Somerset (UK)PteLtd Singapore Pte Ltd Somerset Technopark Singapore Investmentholding Pte Ltd Singapore Somerset SuzhouInvestment Property investment Singapore Singapore Orchard Point(1999)Limited Property investment as FunanITMallLimited) Property investment FITM Limited(formerlyknown Taiwan Pte Ltd Cuppage Terrace Investmentholding (1999) Property development Pte Ltd Somerset RetailHoldings Investmentholding Singapore LC (9Nassim)PteLtd Singapore Dormant Properties PteLtd Somerset Residential SingaporeSomerset RealtyPteLtd Dormant (Taiwan) PteLtd Liang CourtProperty Services Investmentholding Pte Ltd Singapore Somerset Property Consultant Managementoffoodcourts Singapore Pte Ltd Quayside F&BManagement Property investmentandholding Dormant Somerset InvestmentsPteLtd Management PteLtd Somerset International Property investment Somerset DevelopmentPteLtd LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS lc f Effective Interest Place of 48.2 35.1 35.1 68.9 68.9 68.9 51.7 51.7 51.7 51.7 68.9 68.9 68.9 68.9 68.9 68.9 62.0 62.0 68.9 68.9 68.9 68.9 68.9 68.9 68.9 012000 2001 %% 48.2 35.1 35.1 68.9 68.9 51.7 51.7 51.7 51.7 68.9 68.9 68.9 68.9 68.9 68.9 62.0 62.0 68.9 68.9 68.9 68.9 68.9 68.9 68.9 –

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PAGE 176 CAPITALAND aeo opn rnia ciiisIcroainBsns HeldbytheGroup Incorporation/Business PrincipalActivities Name ofCompany 1W 1 1 1 @ ANNUAL REPORT 2001 h sot(ita) Ivsmn odn Singapore Singapore Singapore Investmentholding Investments PteLtd) known asPrimawell Singapore Singapore Investments PteLtd(formerly The Ascott(Vietnam) Singapore Property investment Heritage PteLtd) (formerly knownasSomerset The AscottHeritagePteLtd Philippines Investmentholding Singapore InvestmentPteLtd) International known asSomerset Investment PteLtd(formerly Investmentholding Investmentholding The AscottInternational Laetitia InvestmentsPteLtd Investmentholding Effenberg InvestmentsPteLtd Property investment Chirac PteLtd Property investment Place(1999)Limited Cairnhill SQ Resources, Inc. NRsucs n.Poet netetSingapore Philippines Property investment Singapore SN Resources, Inc. Australia Holdings Philippines,Inc.) Property investment known asSomersetHospitality Philippines, Inc.(formerly Ascott HospitalityHoldings Singapore Pte Ltd) Somerset HospitalityHoldings Pte Ltd(formerlyknownas Investmentholding UnitedKingdom The AscottHospitalityHoldings Property development Singapore Hyde ParkRegencyPtyLtd) Pty Ltd(formerlyknownas Singapore/United Kingdom The Ascott(HydePark) Singapore/United Kingdom Pte Ltd) Investmentholding Somerset E-Investments Pte Ltd(formerlyknownas The AscottE-Investments Investmenttrading Pte Ltd) (formerly knownasSHCapital Property development The AscottCapitalPteLtd Dormant Stanhope Properties PteLtd Investmentholding Stanhope InvestmentsPteLtd Matignon Limited Company, Ltd s aeDvlpetPoet netetTheSocialistRepublicofVietnam Property investment est LakeDevelopment NOTES TOTHEFINANCIALSTATEMENTS lc f Effective Interest Place of 68.9 68.9 68.9 68.9 68.9 68.9 68.9 44.1 68.2 68.9 68.9 68.9 68.9 68.9 35.1 48.2 48.2 48.2 012000 2001 %% 68.9 68.9 68.9 68.9 68.9 68.9 68.9 44.1 68.2 68.9 68.9 68.9 68.9 68.9 35.1 48.2 48.2 48.2 CL fin'l(pg65-186)proof525/3/023:45PMPage177 BUILDING FOR 0 AssociatedCompanies 50. i Indirectly heldbyCapitaLandResidentialLimited: (i) Details oftheassociatedcompaniesare asfollows: π * Ω @ +P #P 9 8 7 6 5 4 3 2 1 Notes: In 2000,thesecompaniesweresubsidiaries.2001,theybecameinvestments. Cost ofinvestmentlessthan$1,000. Not auditedasthecompanieswereliquidatedorinliquidationduringyear. ofincorporation. Not requiredornotyettobeauditedbythelawinitscountry Audited byElliots. Audited byWong KitHung&Co,HongKong. Audited byPannellKerrForsterPC,NewYork. Jiangsu GongzhengCertifiedPublicAccountant,ThePeople’s RepublicofChina. Audited byArthurAnderson,Singaporeanditsassociatedfirms. Audited byDeloitte&Touche, Singaporeanditsassociatedfirms. Audited byErnst&Young, Singaporeanditsassociatedfirms. Audited byPricewaterhouseCoopers,Singaporeanditsassociatedfirms. Audited byothermemberfirmsofKPMGInternational. reviously directlyorindirectlyheldbyCapitaLandCommercialLimited. reviously directlyorindirectlyheldbytheCompany. aeo opn rnia ciiisIcroainBsns HeldbytheGroup Incorporation/Business PrincipalActivities Name ofCompany nsnrlPr d h rprydvlpetMalaysia Malaysia Property development Investmentholding Malaysia T Property investmentanddevelopment Renown Property Holdings(M)SdnBhd Onesentral ParkSdnBhd Bangi HeightsDevelopmentSdnBhd heldbyRCHotels(Pte)Ltd: (xviii)Directly Directly orindirectly heldbypFissionPteLtd: (xvii) soitdCmaisPicplAtvte noprto/uiesHeldbytheGroup Incorporation/Business PrincipalActivities Associated Companies efc aaieItrainlLmtdPoet eeomn HongKong Malaysia HongKong Property development Homemortgagefinancingservices Vi Investmentholding Limited Perfect ParadiseInternational Perfect ParadiseFinanceLimited W W United MalayanLandBhd nhStr eeomn d h rpryivsmn n eeomn Malaysia Property investmentanddevelopment anah SuteraDevelopmentSdnBhd tr ol iac iie oemrgg nnigsrie HongKong Homemortgagefinancingservices ctory World FinanceLimited nekIvsmn t t rpryivsmn n eeomn Singapore Singapore Property investmentanddevelopment Property investmentanddevelopment inpeak InvestmentPteLtd ingem InvestmentPteLtd Vra t t omn Singapore Singapore Singapore Singapore Singapore Healthcluboperator Dormant Dormant Singapore Singapore RC SpaPteLtd Singapore Dormant PVortal 5PteLtd Dormant PVortal 4PteLtd PVortal 3PteLtd PVortal 2PteLtd Investmentholding Investmentholding pFission DevelopmentPteLtd Dormant pFission InvestmentPteLtd Azinger InvestmentsPteLtd LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS lc f Effective Interest Place of lc fEffective Interest Place of 45.1 64.1 21.6 13.5 012000 2001 012000 2001 100 100 100 100 100 100 100 30 49 25 25 25 25 20 %% %% 64.1 100 100 100 100 100 100 100 + + + + + + + # # #

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PAGE 178 CAPITALAND i)Indirectly heldbyCapitaLandCommercial Limited: (ii) hmo lz netet t t netethligSingapore Japan Investmentholding Property development Thomson PlazaInvestmentsPteLtd Kaisha Shinjuku Square Tower Tokutei Mokuteki Co., Ltd hnhiEcehEgneigLdI iudto ThePeople’s Republic ThePeople’s Republic ThePeople’s Republic Singapore Singapore Property development Property development Investment holding Inliquidation Shanghai HuaQingRealEstateDevelopment Investmentholding Shanghai HaiLiRealEstateCo.,Ltd Shanghai EnctechEngineeringLtd InvestmentsLtd Merry View Skyboost InvestmentsLtd G saPcfi t t nlqiainSingapore Singapore HongKong Inliquidation Singapore Property investmentanddevelopment Indonesia Property investment Thailand Property investmentanddevelopment Developmentofaholidayresort Property investment SGT AsiaPacificPteLtd Sea DragonLimited Malaysia Savu Properties Ltd SupinCo.,Ltd Sathorn PT Tropical Amethyst Hospitalownerandoperator Phoenix Tower Limited Medicare SpecialistCentre HoldingsSdnBhd iteIdaAcd t t rpryivsmn Singapore Property investment Little IndiaArcade PteLtd Land Rider Group Ltd Property investment British Virgin Islands BritishVirgin Malaysia Singapore Guernsey Property investment Property investment Singapore Ownerandoperatorofgolfclub Investment inreal estate Investmentholding Laguna NationalGolfAndCountryClubLtd Land RiderGroup Ltd Inverfin SdnBhd I.P. Property FundAsiaLimited Hua QingHoldingsPteLtd Vi ..Poete t rpryivsmn Singapore UnitedKingdom Property investment Singapore Singapore Singapore Investmentholding Islands BritishVirgin Property investmentanddevelopment Clubownerandoperator Investmentholding D.L. Properties Ltd Property investment DBS ChinaSquare Limited Dalonia PteLtd China ClubInvestmentPteLtd Bugis CityHoldingsPteLtd Bayshore DevelopmentLtd Company Limited W soitdCmaisPicplAtvte noprto/uiesHeldbytheGroup Incorporation/Business PrincipalActivities Associated Companies tr ol iie rprydvlpetHongKong Property development ctory World Limited ANNUAL REPORT 2001 nsrHihsEtt aaeet saemngmn HongKong Estatemanagement indsor HeightsEstateManagement NOTES TOTHEFINANCIALSTATEMENTS lc fEffective Interest Place of of China of China of China 47.5 49.1 39.2 35.4 012000 2001 50 30 20 20 30 55 30 50 50 25 50 30 20 50 25 20 30 50 48 20 35 %% – – – 47.5 49.1 39.2 35.4 50 30 30 30 50 50 25 40 20 50 30 + + ^ # # # # # # – – – – CL fin'l(pg65-186)proof525/3/023:45PMPage179 BUILDING FOR v Directly orindirectly heldbyTheAscottGroup Limited(formerlyknownasTheAscottLimited): (v) Directly orindirectly heldbyRaffles HoldingsLimited: (iv) ii Indirectly heldbyCapitaLandProperty ServicesHoldingsPteLtd: (iii) v)Indirectly heldbypFissionPteLtd: (vi) W W V eec n opn t rpryivsmn n eeomn Thailand Property investmentanddevelopment Regency OneCompanyLtd amr t t rprydvlpetSingapore Property development Palmira PteLtd eiinAlni d h rpryivsmn Malaysia Property investment Meridian AtlanticSdnBhd in or aiaaSnBdPoet eeomn Malaysia Property development Liang CourtWanisara SdnBhd elnrPeLdIvsmn odn Singapore Investmentholding Malaysia Investmentholding,property development Hemliner PteLtd Amanah ScottsSdnBhd O oeeaQioSA oe we Ecuador Peru Malaysia Property andproject managementservices Hotelowner Hotelowner Amanah AscottManagementSdnBhd T ThePeople’s Republic T Hotelera CostaDelPacificoS.A. Hotelmanagementand HOV HoteleraQuitoS.A. Huaxia SwissôtelManagementCo.,Ltd as Raffles CityTreasury Ltd) T known asRaffles City(Private)Limited) HongKong T Property managementandrelated services Property IntegratedServicesCompanyLimited ui ucinAstMngmn t t rprymngmn n eae evcsSingapore Property managementandrelated services Bugis JunctionAssetManagementPteLtd soitdCmaisPicplAtvte noprto/uiesHeldbytheGroup Incorporation/Business PrincipalActivities Associated Companies Y nrslTc t t otaedvlpetadtaigo Singapore Software development andtradingof Singapore Provision ofworldwidewebnavigation, Singapore webcasting,webdevelopment Internet Intrasil Tech PteLtd IcFox (Singapore) PteLtd AlternateTV.com PteLtd rpuzHlig t t eeomn n aaeeto otl Singapore Developmentandmanagementofportals Propbuzz HoldingsPteLtd wrAatet rs prmn we Australia Australia Apartmentowner Trust manager ower ApartmentsTrust ower ApartmentsPtyLimited r odLmtdPoet eeomn UnitedKingdom Property development ork RoadLimited nuaDvlpet(yna)PeLdIvsmn odn Singapore Investmentholding entura Development(Myanmar)PteLtd ne rauyLd(omrykon netethligSingapore Investmentholding Singapore Realestateinvestmentandmanagement incel Treasury Ltd(formerlyknown incel Properties (Private)Limited(formerly sfil odnsPeLdPoet eeomn Singapore/United Kingdom Property development estfield HoldingsPteLtd saMtxSnBdPoet netetaddvlpetMalaysia Property investmentanddevelopment isma MatexSdnBhd LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS and management ftuimrltdsrie ofChina of tourismrelated services and other internet related services and otherinternet search directory andelectronic mailservices and mediaproduction and management,broadcasting services IT supportservices computer products andprovision of property sectorandinvestmentholding contentfortherealto provide internet lc fEffective Interest Place of 20.7 34.5 27.6 34.5 20.7 33.8 20.7 34.5 34.5 23.2 30.1 42.9 26.9 25.8 012000 2001 27 27 15 15 12 30 25 25 26 %% – 20.7 34.5 27.6 34.5 20.7 33.8 20.7 34.5 31.5 34.5 42.9 26.9 25.8 15 15 30 25 ^ ^ – – – – –

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PAGE 180 1 JointVenture Companies 51. CAPITALAND i Directly orindirectly heldbytheCompany: (i) Details ofthejointventure companiesare asfollows: i)Directly orindirectly heldbyCapitaLandResidentialLimited: (ii) ^ +P #P Notes: In 2000,thesecompaniesweresubsidiaries.2001,theybecameassociatedcompanies. reviously directlyorindirectlyheldbyCapitaLandCommercialLimited. reviously directlyorindirectlyheldbytheCompany. etr etItrainlLmtdI iudto HongKong Singapore Property development Inliquidation Pidemco-Raffles Properties PteLtd Limited Century West International Singapore Investmentholding,software development Singapore Developmentandmanagementofportals yLez Technologies PteLtd T Propbuzz.com.sg PteLtd on etr opne rnia ciiisIcroainBsns HeldbytheGroup Incorporation/Business PrincipalActivities HeldbytheGroup Joint Venture Companies Incorporation/Business PrincipalActivities Associated Companies oaodPyLmtdPoet eeomn Australia Australia Australia Property development Australia Australia Singapore Singapore Property development Property development Singapore Singapore Property development Rosamond PtyLimited Property development Property development Property development Share PlanPtyLimited) (formerly knownasWalker Corporation Singapore Glenwood LandPtyLimited Property development Singapore Property development Chymont PtyLimited ACN 085142785PtyLimited Soncal PtyLimited Property development Hill Grove RealtyLimited Property development Sims ParkPteLtd Seasons ParkLimited Parc PteLtd Vista Riverwalk Promenade PteLtd W Laguna Garden Limited h hr tWolooloPyLdTuteAustralia Australia Australia Australia Property development Property development Property development Trustee W9 &10ConstructionStage2PtyLtd W9 &10ConstructionStage1PtyLtd The WharfatWoolloomooloo PtyLtd Sur-Mer (Cronulla) PtyLimited nnwrdPeLdDvlpetadmngmn fa fc Singapore Developmentandmanagementofanoffice enantworld PteLtd ANNUAL REPORT 2001 trrn rprisPeLdPoet eeomn Singapore Property development aterfront Properties PteLtd NOTES TOTHEFINANCIALSTATEMENTS tenants andproperty managers applications andprocurement servicesfor portal andprovision ofinfrastructure, property sector contentfortherealto provide internet and investment provision ofITsupportservices and tradingofcomputerproducts and lc fEffective Interest Place of Effective Interest Place of 23.4 31.6 31.6 31.6 31.6 31.6 31.6 31.6 31.6 012000 2001 2000 2001 50 50 30 25 50 50 50 50 50 50 50 %% %% – 25 50 50 30 + + + + + + + + + + + + + # # # – CL fin'l(pg65-186)proof525/3/023:45PMPage181 BUILDING FOR ii Directly orindirectly heldbyCapitaLandCommercial Limited: (iii) i)Indirectly heldbyTheAscottGroup Limited(formerlyknownasTheAscottLimited): (iv) 4Afe tetTutPoet eeomn Australia Australia Australia Property development Australia Australia Property development Tr Property development Property development Property development The Woolloomooloo UnitTrust 94 Alfred Street Trust Redhill JointVenture withMacquarieBank Motorway BusinessParkPtyLtd Wharf DevelopmentsPtyLtd 9&1 tg BPyLdPoet eeomn Australia Australia Australia Australia Australia Property development Property development Property development Property development Australia Property development Australia W9 &10Stage4BPtyLtd W9 &10Stage4PtyLtd W9 &10Stage3PtyLtd Property development W9 &10Stage2PtyLtd Property development W9 &10Stage1PtyLtd W9 &10ConstructionStage4PtyLtd W9 &10ConstructionStage3PtyLtd on etr opne rnia ciiisIcroainBsns HeldbytheGroup Incorporation/Business PrincipalActivities Joint Venture Companies rpryDvlpetC. t RepublicofChina Property DevelopmentCo., Ltd hnhiXnWiPoet netetThePeople’s Property investment Shanghai XinWei imRa saeFn rpryivsmn Thailand Property investment Siam RealEstateFund V eogHct on rprydvlpetTheSocialist Property development Singapore Singapore Singapore ThePeople’s Singapore HongKong Singapore Mekong-Hacota Joint Property development Property investment Property development Investmentholding Singapore Investmentholding Singapore Investmentholding Xiamen HuitengProperties Co.,Ltd Investmentholding Ubi DevelopmentPteLtd Property investment Savu InvestmentsLtd Grand DesignDevelopmentLtd Property investment Rutile PteLtd PMCL PteLtd CCL Office PteLtd Pidemco Centre PteLtd Adelphi Property PteLtd PTa rpryFn rpryivsmn Thailand UnitedKingdom Property investment Investmentholding IP ThaiProperty Fund Ascott DilmunHoldingsLimited Australia Property investment Helensburg UnitTrust nueCmayadmngmn RepublicofVietnam andmanagement enture Company s rjc o ntTutPoet eeomn Australia Property development ust Project No.9UnitTrust LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS lc fEffective Interest Place of Republic ofChina 31.6 31.6 31.6 31.6 31.6 31.6 31.6 31.6 31.6 31.6 31.6 31.6 41.3 27.6 44.1 31.6 20.7 34.5 012000 2001 50 50 50 50 50 50 50 50 50 %% – 27.6 44.1 20.7 + + + + + + + + + + + + # # # # # # ø ø – – – – –

PAGE 181 CL fin'l(pg65-186)proof525/3/023:45PMPage182

PAGE 182 2 SegmentReporting(Group) 52. CAPITALAND v)Indirectly heldbypFissionPteLtd: (vi) Directly orIndirectly heldbyCapitaLandFundManagementLimited(formerlyknownasPidemcoCapitalPteLtd): (v) a BusinessSegments (a) ø +P #P Notes: In 2000, these companies were subsidiaries. In 2001, they became joint venture companies. In 2000,thesecompaniesweresubsidiaries.2001,theybecamejointventure reviously directlyorindirectlyheldbyCapitaLandCommercialLimited. reviously directlyorindirectlyheldbytheCompany. Minority interests atesis(9 ,4 1,208 – – (2,971) – – – 23,586 879 – – – – (2,185) 383,805 1,247 134 – (59,485) – 26,475 (39) Net lossfortheyear (6,755) 3,367,939 14,825 1,716 – (42,123) (1,813) 1,484 T 11,263 (11,308) Finance costs (3,736) – 155,740 1,663 and taxation 5,742 15,783 37,941 before interestEarnings 101,461 (309,058) Partnerships 469,092 – Joint venture companies 552,200 138,947 Associated companies Company andsubsidiaries 2,054,157 602,619 Segmental Results 16,701 T Inter-segment revenue revenue External Revenue 2001 Singapore Guernsey Singapore Developmentandmanagementofa Managementofreal estatefundsandinvestments Managementofreal estatefundsandinvestments OneRex PteLtd PteLtd Management (Guernsey) I.P. RealEstateAsset Management Co.,(Asia)PteLtd I.P. RealEstateAsset on etr opne rnia ciiisIcroainBsns HeldbytheGroup Incorporation/Business PrincipalActivities Joint Venture Companies axation otal Revenue ANNUAL REPORT 2001 omrilRsdnilrsdne oesmngmn tesEiiain Consolidated Eliminations Others management Hotels residences Residential Commercial 9,4 3285 56618951,9 4,2)–405,628 – (43,429) 11,397 148,985 15,686 (322,855) 595,844 3,367,939 (59,485) 28,138 116,286 470,576 138,947 2,054,157 619,320 ’0 ’0 ’0 ’0 ’0 ’0 ’0 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 NOTES TOTHEFINANCIALSTATEMENTS property related e-services provision oflocalisedinfrastructure for multi-service property portalandthe evcdProperty Serviced lc fEffective Interest Place of 012000 2001 50 50 50 %% (142,435) (105,461) (275,046) (432,778) 50 50 50 CL fin'l(pg65-186)proof525/3/023:45PMPage183 BUILDING FOR Minority interests mriain14––––––124 – – – 2 120,224 – – – – 4,182 – 1,512 6,023 – – 81,994 – 17,606 124 6,461 – – 8,469 (14,562) – – – 1,975,329 – Amortisation – – (550) – – Depreciation – Significant Non-CashExpenses 158 307,177 – 2 – 319,060 – Net lossfortheyear 2,921,708 5,980 (79,032) (1,933) – 38,200 – (193,976) 1,561 T 34,257 – 2,065 22,100 18,772 Finance costs (19,862) (138,146) 27,721 – 3,718 and taxation 3,958 – 30,353 (1,849) 1,012,745 before interestEarnings 98,997 – 6,633 – 314,640 Partnerships 394,366 – Joint venture companies 286,022 84,807 – 721 8,491,495 Associated companies 1,376 – – 1,925 Company andsubsidiaries 1,863,179 452,638 Segmental Results – 1,384,788 10,988 – – – – – 244,843 T 70,078 – Inter-segment revenue – – 236,023 3,736 – revenue External – 999,094 Revenue 288 2000 2,244,032 – – 63,721 4,697,425 15,613,859 152,234 – T 153,888 – 160,348 10,117 – Unallocated liabilities 793,211 1,252 – Segment liabilities 196,119 591,678 – 1,022,294 125,998 T 7,386 34,257 1,405,922 1,662,357 Unallocated assets 4,744,185 1,479 – Investment inpartnerships 7,083,719 companies 96,101 Investment injointventure companies 24,766 124 Investment inassociated 9,525 Segment assets Assets andLiabilities 21,091 Capital Expenditure – Amortisation – Depreciation Significant Non-CashExpenses 2001 axation otal Revenue otal Liabilities otal Assets LASTING VALUE ,9,2 ,4,3 9,9 3,2 0082483–10,466,824 – 244,843 70,078 236,023 18,352,826 – 999,094 2,244,032 4,697,425 597,339 126,286 1,558,156 1,736,195 5,094,192 8,933,481 omrilRsdnilrsdne oesmngmn tesEiiain Consolidated Eliminations Others management Hotels residences Residential Commercial 8,3 9,4 194(3,6)2,5 1456 193 310,523 (1,933) (194,526) 22,258 (132,166) 31,914 296,843 288,133 6,2 ,6,0 140380417796,2 7,3)2,921,708 (79,032) 65,921 117,769 398,084 91,440 1,863,900 463,626 ,6 3384,7 851177291–143,007 – 2,971 1,757 68,511 49,874 13,328 6,566 ’0 ’0 ’0 ’0 ’0 ’0 ’0 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 NOTES TOTHEFINANCIALSTATEMENTS evcdProperty Serviced (121,613) (286,979) (422,870) (53,019)

PAGE 183 CL fin'l(pg65-186)proof525/3/023:45PMPage184

PAGE 184 CAPITALAND @ # Earningsbeforeinterestandtaxationincludesshareofresultsfromassociatedcompanies,jointventurecompaniespartne * GeographicalSegments (b) The Group’s operations in“Others”includeEurope,theUnitedStatesofAmerica,SouthAmericaandMiddleEast/Mediterrane The Group’s operations in“OtherAsia”includeIndonesia,Malaysia,Philippines,Thailand,Myanmar, CambodiaandVietnam. Capital Expenditure T 1,609,053 – and taxation* before interestEarnings 21,065 – – Revenue 2000 – – Capital Expenditure 823,990 56,402 – – T – – 701,349 – and taxation* – – 9,080,268 before interestEarnings – – – 21 Revenue – – 2001 – 428,748 – 71,563 995 – 411,785 – – – 865,894 2,182 2,311,895 43,587 – 4,990,383 – – T 390,937 17,982,769 Unallocated liabilities 389,466 (2,257) 198,359 Segment liabilities 29,868 499,792 944,867 104,303 T 26,534 1,491,303 1,303,496 Unallocated assets 5,685,974 Investment inpartnerships 8,455,083 companies Investment injointventure companies Investment inassociated Segment assets Assets andLiabilities Capital Expenditure 2000 otal Assets otal Assets otal Liabilities otal Assets ANNUAL REPORT 2001 461161520917391391572505664–19,585,575 – 566,674 712,560 339,175 1,703,931 1,592,049 14,671,186 18,352,826 – 612,166 503,445 689,841 1,711,730 1,554,355 13,281,289 ,9,8 ,1,9 6,9 1,8 1534878–10,689,321 – 428,748 71,563 411,785 865,894 19,585,575 (2,257) 2,311,895 4,990,383 944,888 105,298 1,493,485 1,347,083 6,305,138 9,370,875 ,4,1 ,2,2 2,2 48617653,9 348 2,921,708 (3,478) 30,592 137,695 54,846 228,020 1,026,021 1,448,012 3,367,939 – 144,366 168,802 81,285 340,423 1,228,954 1,404,109 omrilRsdnilrsdne oesmngmn tesEiiain Consolidated Eliminations Others management Hotels residences Residential Commercial 2,5 3,8 1413 1556 0,0 7 182 310,523 (1,872) 579 108,308 (165,546) (184,183) 132,887 405,628 420,350 – (95,865) 62,906 24,867 (3,857) 122,009 295,568 igpr eln ogAi igo tes@Eiiain Consolidated Eliminations Others@ Kingdom Asia# Kong Zealand Singapore 7292081,8 ,1 8 ,2 119,769 – 5,525 588 3,518 10,881 143,007 2,018 – 97,239 27,099 2,589 864 39,051 9,475 63,929 ,1 1787,3 319–119,769 – 13,189 – 75,836 21,728 – 9,016 ’0 ’0 ’0 ’0 ’0 ’0 ’0 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 NOTES TOTHEFINANCIALSTATEMENTS utai China Australia e ogOhrUnited Other Hong New n and and evcdProperty Serviced rships. an region. CL fin'l(pg65-186)proof525/3/023:45PMPage185 BUILDING FOR 4 ComparativeInformation 54. SubsequentEvents 53. new andrevised accountingstandards statedinnote41. Comparatives inthefinancialstatementshavebeenchangedfrom theprevious yearduetotheadoptionofrequirements ofthe decreased from 63.2%toapproximately 58.8%. placement of36.365millionnewordinary shares atA$1.65pershare. Asaresult, theGroup’s shareholding inAustralandhas On 8February2002,AustralandHoldingsLimited(“Australand”),asubsidiaryoftheGroup, raisedA$60millionthrough the LASTING VALUE NOTES TOTHEFINANCIALSTATEMENTS

PAGE 185 CL AR01 add'l info FA 25/3/02 4:31 PM Page 187

BUILDING FOR LASTING VALUE FINANCIAL CALENDAR

Financial Calendar 187

Financial year ended 31 December 2001 AGE P

Announcement of Half-year Results 1 August 2001

Announcement of Third Quarter Results 31 October 2001

Announcement of Full-year Results 8 February 2002

Annual General Meeting 2 May 2002

Books Closure Dates 14 May 2002 to 16 May 2002 (both dates inclusive)

Proposed Payment of 2001 Final Dividend 31 May 2002

Financial year ended 31 December 2002

Proposed Announcement of First Quarter Results May 2002

Proposed Announcement of Half-year Results July 2002

Proposed Announcement of Third Quarter Results October 2002

Proposed Announcement of Full-year Results February 2003 CL AR01 add'l info FA 25/3/02 4:31 PM Page 188

CAPITALAND ANNUAL REPORT 2001 ADDITIONAL INFORMATION

Additional Information 188 AGE

P 1. Directors’ Remuneration

Number of directors of CapitaLand Limited in remuneration bands:

Remuneration Bands 2001 2000

$500,000 and above 1 1 $250,000 to $499,999 1 – Below $250,000 9 14 Total 11 15

The Group The Company 2001 2000 2001 2000 $’000 $’000 $’000 $’000

Directors of the Company: Liew Mun Leong – Salary inclusive of AWS and employer’s CPF 774 730 774 730 – Bonus and other benefits inclusive of employer’s CPF* 746 559 746 559 1,520 1,289 1,520 1,289 Other Directors – Directors’ fees inclusive of attendance fees 1,078 917 851 761 Total 2,598 2,206 2,371 2,050

Fair value of share options# Liew Mun Leong 727 705 704 695 Other Directors 1,169 661 1,144 648 1,896 1,366 1,848 1,343

Directors of Subsidiaries: – Directors’ remuneration inclusive of directors’ fees and attendance fees@ 5,937 7,579 – –

* Bonuses are normally finalised, approved and paid after the financial year-end. The bonus figures shown above are on paid basis and not on accrued basis and hence, the figures relate to entitlements due to performance for previous years.

# Pertains to options granted during the year. The fair value of share options is estimated using the Black-Scholes Option Pricing model and it is for disclosure purpose only. It is not charged to the profit and loss account.

@ Remuneration for directors of subsidiaries includes salary and related costs of management appointees who sit in the subsidiaries’ boards of directors and whose salary and related costs are borne by the subsidiaries. CL AR01 add'l info FA 25/3/02 4:31 PM Page 189

BUILDING FOR LASTING VALUE ADDITIONAL INFORMATION

2. Directors’ Interests in Contracts The following professional fees were paid or payable to firms in which the following directors and ex-director of the Company 189 are members: AGE P The Group The Company 2001 2000 2001 2000 $’000 $’000 $’000 $’000

Seah Choo Meng: Davis Langdon & Seah – 642 – –

Lucien Wong: Allen & Gledhill 2,915 2,683 382 317

Sir Alan Cockshaw: Shawbridge Management Limited 129 47 32 42

3. Significant Related Party Transactions Please refer to note 46 in the statutory accounts.

4. Interested Person Transactions Interested person transactions carried out during the financial year which fall under Chapter 9A of the Listing Manual of the Singapore Exchange Securities Trading Limited are as follows:

$'000

Temasek Holdings (Pte) Ltd and its associates: – Purchase of land (3,668) – Rental and service income 11,793 – Sale of other products and services 102

Singapore Technologies Pte Ltd and its associates: – Management fees expense (7,250) – Property management income 1,008 – Rental and services income 1,754 – Purchase of other products and services (8,310) CL AR01 add'l info FA 25/3/02 4:31 PM Page 190

CAPITALAND ANNUAL REPORT 2001 SHAREHOLDING STATISTICS

Shareholding Statistics

190 as at 18 February 2002 AGE P Authorised Share Capital S$4,000,000,000 (comprising 4,000,000,000 Ordinary Shares of S$1 each) and US$172,500 (comprising 172,500 Redeemable Convertible Cumulative Preference Shares of US$1 each)

Issued and Fully Paid-up Capital S$2,517,349,898 (comprising 2,517,349,898 Ordinary Shares of S$1 each fully paid; voting rights: one vote per share)

(Note: All of the Redeemable Convertible Cumulative Preference Shares of US$1 each in the capital of the Company were fully redeemed on 31 December 2001.)

Twenty Largest Shareholders As shown in the Register of Members and Depository Register

Name No. of Shares %

1 Singapore Technologies Pte Ltd 1,197,123,933 47.55 2 ST Property Investments Pte Ltd 328,344,838 13.04 3 DBS Nominees Pte Ltd 252,509,064 10.03 4 Raffles Nominees Pte Ltd 146,208,686 5.81 5 Citibank Nominees Singapore Pte Ltd 83,848,780 3.33 6HSBC (Singapore) Nominees Pte Ltd 76,570,711 3.04 7 United Overseas Bank Nominees Pte Ltd 66,956,795 2.66 8Oversea-Chinese Bank Nominees Pte Ltd 43,538,415 1.73 9DB Nominees (S) Pte Ltd 41,690,750 1.66 10 Pei Hwa Foundation Limited 12,900,557 0.51 11 Overseas Union Bank Nominees Pte Ltd 11,464,305 0.46 12 NTUC Income Insurance Co-operative Limited 5,509,500 0.22 13 Morgan Stanley Asia (Singapore) Pte Ltd 5,240,050 0.21 14 OCBC Securities Private Ltd 4,037,222 0.16 15 DBS Vickers Securities (Singapore) Pte Ltd 2,979,555 0.12 16 Phillip Securities Private Ltd 2,239,197 0.09 17 J M Sassoon & Co (Pte) Ltd 2,165,750 0.09 18 CLSA Singapore Pte Ltd 2,127,916 0.08 19 BNP Paribas Nominees Singapore Pte Ltd 1,990,500 0.08 20 UOB Kay Hian Pte Ltd 1,361,000 0.05 Total 2,288,807,524 90.92 CL AR01 add'l info FA 25/3/02 4:31 PM Page 191

BUILDING FOR LASTING VALUE SHAREHOLDING STATISTICS

Substantial Shareholders As shown in the Register of Substantial Shareholders as at 18 February 2002 191

Number of Ordinary Shares in which AGE

shareholder has shareholder is deemed P Name of Shareholder a direct interest to have an interest

ST Property Investments Pte Ltd 328,344,838 – Singapore Technologies Pte Ltd 1,197,123,933 329,424,838 Singapore Technologies Holdings Pte Ltd – 1,526,548,771 Temasek Holdings (Private) Limited* – 1,590,721,271

* Temasek Holdings (Private) Limited is a company wholly-owned by Ministry for Finance, Incorporated.

Size of Holdings No. of % of No. of % of Size of Shareholdings shareholders shareholders shares shares

1 – 1,000 8,536 22.91 7,987,339 0.32 1,001 – 10,000 24,837 66.67 97,895,297 3.89 10,001 – 1,000,000 3,860 10.36 122,659,738 4.87 1,000,001 and above 20 0.06 2,288,807,524 90.92 Total 37,253 100.00 2,517,349,898 100.00

Location of Shareholders No. of % of No. of % of Country shareholders shareholders shares shares

Singapore 36,144 97.02 2,507,096,549 99.59 Malaysia 606 1.63 5,344,332 0.21 Others 503 1.35 4,909,017 0.20 Total 37,253 100.00 2,517,349,898 100.00

Directors’ Shareholdings As shown in the Register of Directors’ Shareholdings as at 21 January 2002

No. of unissued Ordinary Number of Ordinary Shares in which Shares comprised in options director has a director is deemed granted under CapitaLand Name of Director direct interest to have an interest Share Option Plan

Philip Yeo Liat Kok – – 257,700 Hsuan Owyang – – 320,000 Liew Mun Leong – – 1,927,000 Sir Alan Cockshaw – – 424,630 Hsieh Fu Hua – – 227,700 Lim Chin Beng – – 260,010 Vernon R Loucks Jr. – – 103,850 Peter Seah Lim Huat 113,000 – – Sum Soon Lim – – 337,700 Jackson Peter Tai – – 220,000 Lucien Wong Yuen Kuai – – 153,850

Full report covers FA 25/3/02 4:36 PM Page 2

Main Contacts

CapitaLand Limited Raffles Holdings Limited 168 Robinson Road 2 Stamford Road #30-01 Capital Tower #06-01 Raffles City Convention Centre Singapore 068912 Singapore 178882 Tel: (65) 6823 3200 Tel: (65) 6339 8377 Fax: (65) 6820 2202 Fax: (65) 6339 2912 Email: [email protected] Email: [email protected]

CapitaLand Commercial Limited PREMAS International Limited 39 Robinson Road 95 South Bridge Road #18-01 Robinson Point #13-01 Pidemco Centre Singapore 068911 Singapore 058717 Tel: (65) 6536 1188 Tel: (65) 6538 4733 Customer hotline: (65) 67200 123 Fax: (65) 6538 8146 Fax: (65) 6536 3788 Email: [email protected] Email: [email protected] pFission Pte Ltd CapitaLand Financial Limited 41 Science Park Road 168 Robinson Road #04-10 The Gemini (Lobby C) #30-01 Capital Tower Singapore Science Park II Singapore 068912 Singapore 117610 Tel: (65) 6823 3200 Tel: (65) 6872 3133 Fax: (65) 6820 2202 Fax: (65) 6872 6129 Email: [email protected] Email: [email protected]

CapitaLand Residential Limited Auditors 8 Shenton Way KPMG #21-01 Temasek Tower 16 Raffles Quay Singapore 068811 #22-00 Hong Leong Building Tel: (65) 6820 2188 Singapore 048581 Fax: (65) 6820 2208 Tel: (65) 6213 3388 Email: [email protected] Fax: (65) 6225 6157 (Partner-in-charge: Martha Tan) The Ascott Group Limited 8 Shenton Way Registrar #13-01 Temasek Tower Lim Associates (Pte) Ltd Singapore 068811 10 Collyer Quay Tel: (65) 6220 8222 #19-08 Ocean Building Fax: (65) 6227 2220 Singapore 049315 Email: [email protected] Tel: (65) 6536 5355 Fax: (65) 6536 1360

This Annual Report may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, availability of real estate properties, competition from other companies and venues for the sale/distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on current view of management on future events. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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