CapitaLand Integrated Commercial Trust - Annual Report 2021

CASH FLOWS AND LIQUIDITY CICT Group takes a proactive role in monitoring its cash flow position and requirements to ensure sufficient liquidity and adequate funding is available for distribution to the Unitholders as well as to meet any short-term obligations. As at 31 December 2021, the value of cash and cash equivalents of CICT Group stood at S$365.1 million, an increase of S$181.5 million compared with S$183.6 million as at 31 December 2020. Net cash generated from operating activities for FY 2021 was S$827.5 million. This was an increase of S$447.9 million compared to FY 2020 and was mainly due to higher net income in FY 2021. In FY 2021, net cash generated from investing activities was S$256.4 million mainly due to the divestment of OGS. Net cash used in financing activities for FY 2021 was S$902.4 million, largely due to the repayment of bank loans and redemption of retail bonds during the year. DEBT MATURITY PROFILE AS AT 31 DECEMBER 2021 (Including CICT Group’s 45.0% interest in Glory Office Trust and Glory SR Trust) (S$ million) Unsecured Bank Loans Secured Bank Loans Medium Term Notes (MTN) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 FOREIGN EXCHANGE RISK MANAGEMENT CICT Group manages foreign exchange risks through natural and forward hedges. For CICT Group’s German properties, Euro denominated borrowings were obtained as a hedge for CICT’s net investment value. In addition, anticipated net dividends from the German properties were hedged with forward foreign exchange contracts. ACCOUNTING POLICIES The financial statements have been prepared in accordance with the Statement of Recommended Accounting Practice 7 Reporting Framework for Investment Funds (RAP 7) issued by the Institute of Singapore Chartered Accountants, the applicable requirements of the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore and the provisions of the Trust Deed. RAP 7 requires that accounting policies adopted generally comply with the principles relating to recognition and measurement of the Singapore Financial Reporting Standards. 1,099 1,435 991 580 1,491 1,311 718 265 299 832 870 900 621 535 513 178 204 460 418 321 514 275 120 407 75 150 250 125 300 13% 17% 11% 1% 7% 3% 17% 15% 8% 2% 5% 1% As at 31 December 2021, 7.2% or S$585.8 million of CICT Group’s borrowings (excluding interest in joint ventures) will mature in 2022. CICT has sufficient internal resources and bank facilities to cover the repayments due in 2022. The Manager will continue to adopt a rigorous and focused approach to capital management. The Manager is also committed to diversifying funding sources and will continue to review its debt profile to reduce refinancing risk. CICT’s 45.0% interest in Glory Office Trust and Glory SR Trust CapitaLand Integrated Commercial Trust 72 Capital Management