ARA ASSET MANAGEMENT LIMITEDARA ASSET MANAGEMENT LIMITED亚腾资产管理有限公司

RESULTS FOR THE QUARTER AND FINANCIAL YEAR ENDED 31 DECEMBER 2013

1 FY2013 Hi hli ht1. FY2013 Highlights

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Building on established platforms, reaching for new heightsFY2013 – BUSINESS HIGHLIGHTS

Assets under Management as at 31 December 2013Assets under Management as at 31 December 2013

S$ 25.5 billionS$ 2.9 billion year-on-year 13% year-on-year

Achieved on the back of :

• Acquisitions by REITs under management (namely Suntec REIT, Fortune REIT, Cache LogisticsTrust)

• Improved asset performance driven by asset enhancement initiatives resulting in higher propertyvaluations of the REIT portfolios under management

• Deployment of committed capital of ARA Asia Dragon Fund II and ARA China InvestmentPartners, LLC (“CIP”)

• Contribution from new separate account Morningside Investment Partners, LLC (“MIP”), andfrom the additional committed capital obtained for CIP

Hi h l ti f th t i th ARA H F d f ll i it t h t

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• Higher valuation of the property in the ARA Harmony Fund following its asset enhancementworks

ASSETS UNDER MANAGEMENTS$25.5 billion as at 31 December 2013

25 5S$b S$b

16.9

20.322.6

25.5

18.020.022.024.026.0

18.020.022.024.026.0 REITs - Real Estate

Private RE Funds - Real EstatePrivate RE Funds - CapitalReal Estate Management Services

9.511.7

13.0

16.9

8 010.012.014.016.0

8 010.012.014.016.0

0.6

3.55.4

6.2

0.02.04.06.08.0

0.02.04.06.08.0

Assets Under Management(1)

(S$ billion) Dec 2013 Dec 2012 ChangeNotes:

1. Based on exchange rates as at 31 December 2013

2 Comprises gross property

Dec 03 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec-13

REITs – Real Estate(2) 18.4 16.2 13.1%

Private Real Estate Funds – Real Estate 5.4 4.7 15.8%

Private Real Estate Funds – Capital(3) 1.3 1.3 (1.6%)

2. Comprises gross property value of REITs managed by subsidiaries & associated companies

3. Excludes capital committed for projects pending completion

4 Revenue base for real estate

4

Real Estate Management Services(4) 0.4 0.4 5.8%

Total 25.5 22.6 12.7%

4. Revenue base for real estate management services fee computation

Forging partnerships - Positioned for accelerated growthFY2013 – BUSINESS HIGHLIGHTS

St t i lli ithStrategic alliance with

The Straits Trading Company Limited

Start of a expanded long-term partnership with well-reputed premier business groups in Asia - The Straits Trading Company Limited and Cheung Kong (Holdings) LimitedCompany Limited and Cheung Kong (Holdings) Limited

Strengthened Sponsorship

Expanded business network in the Asia Pacific region to bolster deal sourcing and• Expanded business network in the Asia-Pacific region to bolster deal sourcing andorigination capabilities

AUM Growth

• Co-investment vehicle to support the future capital needs of the Group’s private fundsdivision

• S$100 million seed capital for new Asia-focused development fund

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2 Fi i l d T k R d2. Financials and Track Record

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Strong set of results with double-digit growth in recurrent net profitFY2013 – FINANCIAL HIGHLIGHTS

Financial Highlights FY2013 FY2012Financial Highlights FY2013 FY2012

Recurrent Management Fees (S$’000) 114,003 102,615 11%

Net Profit (S$’000) 81 386 63 580 28%(Exc. Unrealized M-T-M gains/losses) (1) (S$ 000) 81,386 63,580 28%

Recurrent Net Profit (2) (S$’000) 56,100 48,151 17%

Strong quality of earnings achieved on the back of:

• Higher management fees received from the REITs division driven by improved asset performance post asset enhancement initiatives which resulted in higher property valuationspost asset enhancement initiatives which resulted in higher property valuations

• Higher acquisition, divestment and performance fees

• Contributions from ARA Asia Dragon Fund II and CIP; MIP newly launched in November 2013

• Higher real estate management fees comprising higher leasing commission recognised by APM from the re-making of Suntec City, and contributions from the Asia Property Management (China) Limited group of companies (“APMC Group”) subsequent to its acquisition in August 2012

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(1) M-T-M refers to “Marked-to-Market”, adjusted for the effects of tax(2) Recurrent Net Profit refers to Net Profit excluding acquisition, divestment and performance fees, finance income and finance

costs, adjusted for the effects of tax

Solid business model delivers growing financial performanceFINANCIAL PERFORMANCE

Financial Highlights FY2013 FY2012 Change

Revenue

Management fees(1) (S$’000) 114,003 102,615 11%

Acquisition, divestment and performance fees(2) (S$’000) 14,671 8,223 78%

Finance income(3) (S$’000) 11,583 21,997 (47%)

Other income (S$’000) 139 695 (80%)

Total Revenue (S$’000) 140,396 133,530 5%

Results from operating activities (S$’000) 84,493 81,641 3%

Share of Profit of Associates (S$’000) 3,913 4,461 (12%)

Net Profit (S$’000) 74,250 72,704 2%

Net Profit (Excluding unrealised M-T-M gains/losses) (4) (S$’000) 81,386 63,580 28%

Recurrent Net Profit(5) (S$’000) 56,100 48,151 17%

AUM (S$ billion) 25.5 22.6 13%

Notes:(1) Recurrent management fees from REITs, private real estate funds and real estate management services(2) Primarily REIT acquisition/divestment fees and project management and consultancy fees(3) Comprises mainly distribution income from financial assets and net gains on fair valuation/disposal of REIT units(4) M-T-M refers to “Marked-to-Market”, adjusted for the effects of tax (5) Recurrent Net Profit refers to Net Profit excluding acquisition, divestment and performance fees, finance income and finance costs, adjusted for the effects of tax 8

BALANCE SHEETAsset-light business model with robust balance sheet

Group Balance Sheet as at 31 December 2013

S$’000 S$’000

Plant and equipment 1,390 Loan and borrowings 141

Subsidiaries Deferred tax liabilities 68Subsidiaries - Deferred tax liabilities 68

Associates 4,657

Financial assets 212,527

Other receivables 6,289

Non-current assets 224,863 Non-current liabilities 209

Financial assets 49,837 Trade and other payables 26,318

Trade and other receivables 33,576 Loan and borrowings 30,329

Cash and cash equivalents 39,060 Derivative liabilities -

Current tax payable 10,083

Current assets 122,473 Current liabilities 66,730

Total liabilities 66,939

Shareholders’ equity 280,397

Total assets 347,336 Total liabilities & shareholders’ equity 347,336

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REVENUE AND NET PROFIT TRACK RECORDStrong track record of revenue and net profit growth

160S$m

86.3

112.5122.8

133.5 140.4

100

120

140

160 Recurrent management feesAcquisition & performance feesOther income

27.6 31.3

62.170.0

86 3

40

60

80

S$m

0

20

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

48.3

63.868.2

72.7 74.3

50

60

70

80PATMI

13.4 13.5

34.0 36.7

20

30

40

50

10

0

10

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

DIVIDENDSRewarding shareholders

S cents

2.17 2.24 2.302.50

2.302.50

2.30

2.70

2.30

2.70

2.30

2.70

2.5

3.0

S cents

1.5

2.0

0 0

0.5

1.0

Sustainable dividend policy

0.01H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13

5.0 Singapore Cents per share annually, barring any unforeseen circumstances

• Interim dividend – 2.3 Singapore Cents per share

• Proposed Final dividend 2 7 Singapore Cents per share

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• Proposed Final dividend – 2.7 Singapore Cents per share

DIVIDENDSGrowing total dividends over time

S$m

33.5

38.440.5

42.3

35

40

45

S$m

25.727.9

20

25

30

5

10

15

1-for-5 b i

1-for-10 b i

1-for-10 bon s iss e

-FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

Dividend growth over time

• Issued bonus shares while maintaining the constant dividend of 5.0 Singapore Cents per share

bonus issue bonus issue bonus issue

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• Estimated total dividends to be paid for FY2013 of S$42.3 million

3 B i d l3. Business model

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FUNDS & SERVICESDiversified funds management platforms and complementary services

Listing Venue SGX-ST & SEHK SGX-ST SEHK Bursa SGX-ST SEHK

Listing Year 2003 2004 2005 2006 2009 2011

Focus Suburban retail Prime office & retail Office & industrial/ office Commercial Logistics properties in Commercial

REITs

Private Real

Focus Suburban retail properties in Hong Kong

Prime office & retail properties in

Singapore and Australia

Office & industrial/ office properties in Hong Kong

Commercial properties in

Malaysia

Logistics properties in the Asia Pacific region

Commercial properties in

China

Property Value(1) HK$29,338m S$8,364m HK$8,434m RM1,277m S$1,035m RMB 36,718m

ADF ADF II CIP MIPPrivate Real Estate Funds

Description Flagship strategic and opportunistic private

real estate fund investing in Singapore

2nd strategic and opportunistic private real estate fund investing in Singapore Hong Kong

Single-asset private real estate fund which owns the Suntec Singapore

Int’l Convention &

Core-plus private real estate fund investing in high quality

office and commercial properties in key cities in China

Value-add private real estate fund investing in high quality office and

commercial properties in

ARA Harmony FundADF

ARA Asia Dragon Fund

ADF IIARA Asia

Dragon Fund II

CIPARA China

Investment Partners

MIPARA MorningsideInvestment Partners

investing in Singapore, Hong Kong, China, Malaysia and other

emerging economies in Asia

Singapore, Hong Kong, China, Malaysia and

other emerging economies in Asia

Int l Convention & Exhibition Centre

properties in key cities in China, including Hong Kong

commercial properties in Singapore, Hong Kong

and Malaysia

Fund Size US$1.1b US$441m S$630m US$830m(2) US$240m

Real Estate Mgmt Svcs

(Committed Capital) (Committed Capital) (Gross Asset Value) (Committed Capital) (Committed Capital)

(1) Property values as of last publicly-announced valuation(2) Including additional capital commitments of US$330 million in July 2013 14

Description Property managementservices provider

Operations, sales and marketing services provider & consultant for convention, exhibition, meeting and event facilities

BUSINESS SEGMENTSDelivering value to shareholders

ARA ASSET MANAGEMENT LIMITED

BusinessSegments

REITs Private Real Estate Funds

Real Estate Management

Services

Corporate Finance Advisory Services

Revenue -Recurrent(Primary Basis)

g

Portfolio Management Fees(Committed Capital / Gross Property Value)

Base Fees(Gross Property Value)

Property Management Fees(Property Gross Revenue)

Services

Performance / Variable Fees(Net Property Income)

Convention & Exhibition Service Fees(Gross Revenue)

Revenue -One-off(Primary Basis)

Performance Fees(IRR above Hurdle)

Acquisition / Divestment Fees(Gross Property Value)

Advisory Fees(Purchase Value)

Consultancy Fees(Project Value)

Return on Seed Capital

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3 St t3. Strategy

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ARA GROUP INVESTMENT OFFICEDriving the Group’s expansion

Capital RaisingRaising

ARA GroupARA GroupInvestment

Office

Deal Sourcing & Origination

Product Development

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2014 GROUP STRATEGY AND KEY INITIATIVESMaintain focus and build on successes

J i t

Build RelationshipsDevelop Products

Investor Driven

Joint Ventures / AlliancesOperating Partners

Build Teams

and Expertise

New MarketsNew Capital SourcesSame Focus (Fund

Pan-Asia Capabilities

ProductsMergers & Acquisitions

Expertise (Fund Management)

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Established regional networkExpanding regional footprint across Asia

Nanjing

Dalian

Shanghai

Beijing

• Establishedregional network

Shenyang

Guangzhou

Hong Kong

Shanghai regional networkspanning 13 citiesin the Asia‐Pacific,including 6 citiesin the China

Singapore

Kuala Lumpur

Malacca

Mainland

• Network extendsacross Singapore,Hong Kong, China,

Klang

Ipoh

g gMalaysia andAustralia

• Staff strength ofapproximately

Sydney

pp y1,021(1) as at 31December 2013

Notes:(1) Inclusive of real estate management services business division and employees in joint-venture entities of the Group and various funds under management

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MANAGEMENT TEAMExperienced team with a proven track record

G CEOG CEOGroup CEO

John Lim

Group CEO

John Lim

Corporate DivisionsCEO 

Private MarketNg Beng Tiong

Property Management Services

CEO REITS

John Lim

CIO Moses Song

Finance & ComplianceCheryl Seow

Senior Director, Group Finance

Ng Beng Tiong

ADF INg Beng Tiong

CEO

ADF II

APM SingaporeAnthony Yip

Deputy Chairman

John Lim

Suntec REITYeo See Kiat

CEO

g

ARA FinancialLow Poh ChooSenior Director

Group Business DevCorporate OfficeNg Beng TiongSenior Director

Group Risk Mgmt & IATang Boon Kang

ADF IIPaul YiCEO

ARA Harmony FundSiew Siew HoonFund Director

APM ChinaMun Hon Pheng

CEO, China

APM MalaysiaChan Lai Hing

G l

Fortune REITAnthony Ang

CEO

Prosperity REITMavis Wong

CEO

Group Business DevPrivate & Public Mkt

Mark ChuDirector

China DeskMun Hon Pheng

Senior Manager

Group HR & Corp DevPauline LimDirector

CIPDerek Lai

Head Portfolio Management

MIP

General Manager

Suntec SingaporeArun Madhok

CEO

CEO

Cache Logistics TrustDaniel Cerf

CEO

A FIRST REIT

Head

Korea DeskAnthony Kang

Head

A t li D kGroup Office Admin

Serene YeoSenior Manager

MIPDavid Kim

CEO

SIPThomas KongFund Director

Suntec InternationalArun Madhok

CEO

AmFIRST REITZuhairy bin Md. Isa

Acting CEO

Hui Xian REITTom Cheung

CEO

Australia DeskLow Poh Choo

Head

Malaysia DeskJune LimHead

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Summit Development Fund

Thomas KongCEO

CEO

ARA NPS REITAnthony Kang

CEO

Japan / India / GCC DeskLow Poh Choo / Mark Chu

Head

DISCLAIMER

These slides may contain forward‐looking statements that involve risks and uncertainties. Actual future performance, outcomes andresults may differ materially from those expressed in forward‐looking statements as a result of a number of uncertainties, risks andassumptions. Representative examples of these factors include but are not limited to general market and economic conditions,

d f h l h l d l dinterest rate trends, competition from other real estate investors, changes in operating expenses including employee wages andbenefits, changes in government policies, and the continued availability of financing in the amounts and terms necessary to supportfuture business. You are cautioned not to place undue reliance on the forward‐looking statements in these slides, which are based onthe current view of management on future events. Information from external sources in these slides has not been independentlyverified by us nor have the external sources quoted consented to the inclusion of the information.

ContactCheryl SeowSenior Director, Group Financecherylseow@ara.com.hk

Marilyn TanSenior Manager, Corporate Financemarilyntan@ara.com.hk

Global Headquarters:6 Temasek BoulevardSuntec Tower Four, #16‐02Singapore 038986

cherylseow@ara.com.hk marilyntan@ara.com.hk

Singapore 038986

Tel:  (65) 6835 9232Fax: (65) 6835 9672

Website: www.ara‐asia.com

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