4 Clear Path to Maximising Shareholder Value STRENGTH IN UNITY 1. Business Simplification and Streamline • Simplify the business by divesting non-core assets (targeting US$750 million) primarily in Traditional Economy sectors and/or those with lower operating margins. • Set up for its next phase of growth across its Logistics, Data Centres, and Infrastructure and Renewables platforms. • Grow ESR's suite of New Economy fund platforms across the APAC region comprising development funds, core/core-plus funds and listed REITs, to suit a diverse range of capital partners. 2. Balance Sheet Optimisation • Ongoing capital recycling to syndicate balance sheet assets into ESR-managed vehicles to strengthen balance sheet and achieve an optimal capital structure. • Immediate focus on completing announced US$1.2 billion syndication and non-core divestments (in gross value). • Up to US$1.5 billion – US$2.0 billion of additional balance sheet sell-downs in the next 12-18months (in gross value). • Target to reduce the Group’s Gearing towards the low end of the 20-30% range. 3. Drive Positive Synergies From a Fully Integrated APAC New Economy Platform • Complete the integration of two leading New Economy platforms ESR and LOGOS, into one unified business across APAC. • Leverage economies of scale of the integrated businesses to generate additional revenue opportunities and achieve cost savings. 4. Pursue Sustainable Revenue Growth and Cost Management Strategies • Recycle capital into new and existing fund products to drive recurring Fee Income growth as AUM scales. • Continue to pursue disciplined cost management strategies to achieve stronger earnings and cashflow. 5. Growth in Fund Management EBITDA • Increase and scale New Economy AUM and development pipeline, as well as establish more perpetual vehicles to underpin continued fund management EBITDA growth. Note: 1. Moody’s Ratings, July 2024 ACCELERATING DATA CENTRES STRATEGY TO CAPITALISE ON ROBUST AI-DRIVEN DEMAND ESR is in a unique position to access a substantial pipeline of data centres through both off-market transactions, as well as its development assets, in anticipation of a compound annual growth rate (“CAGR”) of approximately 20% in data centre capacity in APAC through to 20281. ESR is focused on executing its 575 megawatts (“MW”) of committed data centre sites in key markets across APAC, with a pipeline of more than two gigawatts (“GW”) worth of land and projects currently identified. The Group is on track for 375 MW of projects under construction by the end of FY2024, with the first facility in Japan newly completed and ready for service by May 2025. 575 MW Upon completion of 8 sites US$1.35 billion ESR Data Centre Fund 1 375 MW Under construction by end FY2024 >2 GW Pipeline of land and projects identified UNLOCKING DATA CENTRE OPPORTUNITIES WITH A FAST GROWING DATA CENTRE PLATFORM ESR Group remains committed to maximising long-term shareholder value via its five key business priorities to drive sustainable profitable growth.
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