12 STRENGTH IN UNITY JEFFREY DAVID PERLMAN Chairman Message from Chairman Dear Shareholders, Despite a challenging macroeconomic landscape in 2023 with one of the most difficult fundraising environments on record due to significant shifts in interest rates, sustained inflation and geopolitical headwinds, we continued to navigate the complex environment effectively, delivering on our three core priorities during the year. These included: (i) reinforcing our market leadership in New Economy with over US$6 billion in development starts and over US$4 billion of completions, (ii) further simplifying and streamlining the business with the recent announced sale of the ARA Private Funds business, and (iii) growing our AUM and Fund Management EBITDA1 to now reach nearly 60% of our Segmental EBITDA. Notes: 1. Fund Management EBITDA refers to the Fund Management segment result which excludes the share of fair value of financial derivative assets in relation to certain Associates. 2. Refers to EBITDA, which excludes the share-based compensation expense, share of fair value on investment properties and financial assets at fair value through profit or loss and financial derivative assets in relation to certain Associates, as well as impairment loss for non-core business; and in 2022 which also excluded the transaction costs related to the ARA Acquisition. 3. Refers to PATMI, which excludes the amortisation of intangible asset attributable to the ARA Acquisition (net of tax), share-based compensation expense related to ARA, share of fair value on investment properties and financial assets at fair value through profit or loss and financial derivative assets in relation to certain Associates, as well as impairment loss for non-core business; and in 2022 which also excluded transaction costs related to the ARA Acquisition. I am very proud to highlight the record Fund Management EBITDA1 of US$579 million for FY2023, representing a 2% growth year-on-year (“y-o-y”) or 8.9% y-o-y excluding promote fees. The Group’s revenue was up by 6% from US$821 million in FY2022 to US$871 million in FY2023. Impacted by lower fair value gains across key markets and higher interest costs as a result of the material change in the interest rate environment, EBITDA2 was at US$885 million, 23.1% lower y-o-y, and PATMI3 was at US$400 million, 38.8% lower y-o-y, outperforming most of our peers. Healthy capital raising amid a challenging environment Our integrated fund management and development platform in APAC has shown remarkable strength, marked Looking ahead, I am confident in our ability to capitalise on emerging opportunities and to drive long-term sustainable growth. " "
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