CAPITALAND LIMITED ANNUAL REPORT 2010 FIRM FOUNDATION LEADING EDGE INNOVATION IN THE FIRST READY FOR THE NEXT YEARS ACHIEVED TOTAL NET PROFIT OF S$7.4 BILLION IN THE LAST FIVE YEARS UNIQUE MULTI-SECTOR AND MULTI-GEOGRAPHY REAL ESTATE COMPANY WITH COMPLETE VALUE CHAIN COMPETENCY MANAGES S$50.6 BILLION OF REAL ESTATE ASSETS MORE THAN 110 CITIES IN OVER 20 COUNTRIES CORPORATE PROFILE CapitaLand is one of Asia’s largest real estate companies. Headquartered and listed in Singapore, the multi-local company's core businesses in real estate, hospitality and real estate financial services are focused in growth cities in Asia Pacific and Europe. The company’s real estate and hospitality portfolio, which includes homes, offices, shopping malls, serviced residences and mixed developments, spans more than 110 cities in over 20 countries. CapitaLand also leverages on its significant asset base, real estate domain knowledge, financial skills and extensive market network to develop real estate financial products and services in Singapore and the region. The listed entities of the CapitaLand Group include Australand,CapitaMalls Asia, CapitaMall Trust, CapitaCommercial Trust, Ascott Residence Trust, CapitaRetail China Trust, CapitaMalls Malaysia Trust and Quill Capita Trust. Building for People to Build People CREDO Building People to Build for People Our mission is to build a world-class company with MISSION international presence that • Creates sustainable shareholder value • Delivers quality products and services • Attracts and develops quality human capital A world-class entrepreneurial, prosperous and VISION lasting real estate company led and managed by people with core values respected by the business and social community. A leading real estate company in Asia, reputed for its innovative and quality real estate products and services. A company with a strong global network of long-term investors and blue-chip partners. A company which attracts, develops and retains a diversity of talents regardless of nationality, race or age. A company which consistently creates value for shareholders. CONTENTS Financial Highlights Australand Property Group 2 68 5-Year Financial Summary Human Resource 3 70 MANAGEMENT REPORT Letter to Shareholders Corporate Social Responsibility 8 72 INVESTOR RESOURCE Board of Directors Corporate Directory 18 74 Council of CEOs Financial Calendar 26 75 Corporate Office 10-Year Share Price Performance 34 76 Global Presence Year In Brief 36 77 Performance Overview Corporate Governance 38 81 Awards & Accolades Risk Assessment and Management 48 94 BUSINESS REVIEW Group Businesses Stakeholder Communications 51 96 CapitaLand Residential Singapore Economic Value Added Statements 52 98 CapitaLand China Value Added Statements 54 99 CapitaLand Commercial Shareholding Statistics 56 100 CapitaMalls Asia Other Information 58 102 The Ascott Limited Statutory Accounts 60 105 CapitaLand Integrated Developments Notice of Annual General Meeting 62 216 CapitaValue Homes Appendix PAGE 64 223 CapitaLand Financial Services Proxy Form 1 66 239 FINANCIAL HIGHLIGHTS 5th Consecutive Year of Above S$1 Billion Net Profit Profit attributable S$1.27 billion to Shareholders Earnings Before S$2.38 billion Interest and Tax Return on 9.2% Shareholders' Funds Return on 7.1% Total Assets Group Managed S$50.6 billion Real Estate Assets Revenue Under S$7.2 billion Management CAPITALAND LIMITED PAGE 2 5-YEAR FINANCIAL SUMMARY 2006 2007 2008 2009 2010 (A) INCOME STATEMENT (S$ million) Revenue by SBUs (1) CapitaLand Residential Limited 2,356.0 CapitaLand Residential Singapore 548.7 400.2 673.8 843.2 CapitaLand China Holdings 985.3 330.3 647.0 573.5 CapitaLand Commercial 139.2 165.7 227.9 144.9 337.8 The Ascott Limited 478.1 459.5 441.8 393.7 407.4 CapitaLand Financial 101.2 119.2 182.2 162.2 116.2 CapitaMalls Asia 94.6 124.2 206.7 228.9 245.4 Australand 1,406.7 984.3 732.5 879.8 Others (21.4) (16.6) (21.1) (25.6) (20.6) Total 3,147.7 3,792.7 2,752.3 2,957.4 3,382.7 Earnings Before Interest and Tax (EBIT) by SBUs (1) CapitaLand Residential Limited 692.2 CapitaLand Residential Singapore 308.6 175.0 371.7 351.5 CapitaLand China Holdings 403.4 883.4 551.2 682.4 CapitaLand Commercial 372.4 1,876.7 395.6 (497.4) 264.2 The Ascott Limited 202.5 337.2 132.2 31.4 173.0 CapitaLand Financial 61.6 69.7 90.4 98.0 103.0 CapitaMalls Asia 221.1 297.9 298.6 449.1 472.4 Australand 470.0 169.6 (240.8) 311.9 Others 264.3 60.5 68.7 785.8 25.8 Total 1,814.1 3,824.0 2,213.5 1,549.0 2,384.2 Net Profit attributable to Shareholders 1,012.7 2,759.3 1,260.1 1,053.0 1,273.1 (B) BALANCE SHEETS (S$ million) Investment Properties 5,668.3 6,777.4 4,848.9 5,058.5 4,732.9 Development Properties for Sale and Stock 3,622.7 3,540.8 3,347.2 3,590.2 5,419.4 Associates and Joint Ventures 4,749.9 6,450.7 7,864.6 8,684.2 10,110.4 Cash and Cash Equivalents 2,684.9 4,356.0 4,228.4 8,729.7 7,190.1 Other Assets 3,866.4 4,716.4 4,794.5 4,103.4 4,247.4 Total Assets 20,592.2 25,841.3 25,083.6 30,166.0 31,700.2 Equity attributable to owners of the Company 7,367.7 9,940.9 10,681.7 13,408.3 14,170.7 Total Borrowings 8,129.8 9,916.1 9,829.3 10,312.6 10,358.0 Non-Controlling Interests and Other Liabilities 5,094.7 5,984.3 4,572.6 6,445.1 7,171.5 Total Equities & Liabilities 20,592.2 25,841.3 25,083.6 30,166.0 31,700.2 (C) FINANCIAL RATIOS Earnings per share (cents) 36.6 98.6 37.0 26.2 29.9 Net Tangible Assets per share (S$) 2.64 3.53 3.57 3.03 3.22 Return on Shareholders’ Funds (%) 14.5 31.9 12.2 8.7 9.2 ANNUAL REPORT 2010 Return on Total Assets (%) 8.7 15.7 7.9 5.5 7.1 Dividend First & final dividend per share (cents) 7.0 8.0 5.5 5.5 6.0 Special dividend per share (cents) 5.0 7.0 1.5 5.0 - Total dividend per share (cents) 12.0 15.0 7.0 10.5 6.0 Dividend cover (times) 3.2 6.5 4.2 2.4 5.0 Debt Equity Ratio (net of cash) (times) 0.58 0.47 0.47 0.09 0.18 Interest Cover (times) 9.73 13.64 5.50 4.54 7.00 Note: For changes in accounting policies, adoption of new and/or revised accounting standards, as well as changes in the presentation of financial statements for the respective financial year under review, only the comparative figures for the previous year were restated to conform with the requirements arising from the said changes or adoption. PAGE 3 (1) With effect from 1 April 2008, CapitaLand Residential Limited SBU was reorganised into 3 main components, namely, CapitaLand Residential Singapore, CapitaLand China Holdings and CapitaLand's holding in Australand. FIRM FOUNDATION LEADING EDGE INNOVATION CAPITAL TOWER SINGAPORE Pioneered the REIT market in Asia excluding Japan with a total of six REITs to-date NUMBER OF SHOPPING MALLS 5 to 91 JINNIU MALL CHENGDU CHINA Early-mover advantage for shopping malls in China ASSETS UNDER MANAGEMENT S$0.27B to S$30.4B OVERSEAS ASSETS 25% to 56% RIVERGATE SINGAPORE First residential development in Singapore to be accorded landmark status by Urban Redevelopment Authority THE LOFT CHENGDU CHINA First earthquake-proof high-rise condominium community in China FIRST 10 YEARS THE PONDS ION ORCHARD AND NEW SOUTH WALES THE ORCHARD AUSTRALIA RESIDENCES SINGAPORE Australand is one of the most successful Transformed the diversified property retail landscape and groups in Australia set new benchmarks for super-luxury residential developments in Singapore UNITS OF SERVICED RESIDENCES 6,000 to OVER 26,000 RAFFLES CITY SHANGHAI ASCOTT RAFFLES PLACE SINGAPORE CHINA Transformed prime Exported Singapore’s national heritage ‘Raffles City’ brand building into globally (seven premium serviced Raffles City residence property developments in China) READY THE STRATEGY GOING FORWARD ASCOTT GUANGZHOU IFC CAPACITY: CHINA CASH OF S$7.2B AND NET GEARING OF 0.18 GROW CHINA BUSINESS TARGET 45% OF CAPITALAND’S BUSINESS THE PINNACLE SHANGHAI CHINA JCUBE SINGAPORE BUILD ASCOTT’S GLOBAL DOMINANCE GROW TO 40,000 UNITS BY 2015 RAFFLES CITY HANGZHOU CHINA EXPAND IN VIETNAM GROW TOTAL ASSETS FROM S$400M TO S$2B OVER NEXT 3-5 YEARS NEXT 10 YEARS BEDOK TOWN LA FORET CENTRE SITE BEIJING SINGAPORE CHINAGROW FINANCIAL SERVICES FRANCHISE ORIGINATE NEW REAL ESTATE FUNDS AND FINANCIAL PRODUCTS IN SINGAPORE, CHINA, VIETNAM AND MALAYSIA RAFFLES CITY CHENGDU CHINA INCREASE PRESENCE IN SINGAPORE SINGAPORE, A GLOBAL CITY EXTEND LEADERSHIP IN PAN-ASIAN SHOPPING MALL BUSINESS TARGET TO GROW CHINA TO 40% OF CAPITAMALLS ASIA’S BUSINESS HONGKOU PLAZA SHANGHAI CHINA SITE AT MO LAO WARD HANOI VIETNAM GROW CAPITAVALUE HOMES BUSINESS BUILD 10,000-15,000 AFFORDABLE HOMES ANNUALLY OVER NEXT 3-5 YEARS LETTER TO SHAREHOLDERS DR HU TSU TAU LIEW MUN LEONG CHAIRMAN PRESIDENT & CEO For the fifth consecutive year, CapitaLand has recorded net profit after tax and minority interests exceeding S$1 billion. Over the last five years, CapitaLand has achieved total net S$7.4b profit of S$7.4 billion.