CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2021 CORPORATE GOVERNANCE 62 63 RISK MANAGEMENT Legal TheGroup is exposed to legal and reputational damage resulting from breach of law or civil suits. We manage this risk by: a) Monitoring and reporting significant litigation and disputes to the Management and the Board. b) Working with external legal counsel for advice when necessary. c) Reviewing and maintaining the necessary liability insurance coverage. Investment/Divestment Risk TheGroup isexposed to the riskof deployment of capital into investments that fail to meet target returns, due to inadequate planning or errors in underlying assumptions. We manage this risk by: a) Conducting a comprehensive analysis including due diligence and feasibility studies to evaluate investment and divestment decisions. b) Reviewing and updating investment thresholds and parameters, to be in line with changing strategies and business environments. c) Close monitoring of portfolio performance to ensure that it is on track to meet set targets. Information Technology Risk With the increased reliance on information systems and technology as a business enabler across our businesses, we recognise that a service disruption of critical Information Technology (IT) systems or malicious and deliberate attempts of hackers to breach our IT systems could adversely affect the Group’s business continuity and reputation. Cyber Threat The Group recognises that cyber threat remains a key concern as attackers have become increasingly creative with attack methods and increasingly destructive payloads that better target system vulnerabilities. We manage this risk by: a) Maintaining an IT security framework to address evolving IT security threats such as hacking, malware, mobile threats and loss of data. Measures and considerations have also been taken to safeguard against loss of information, data security, and prolonged service disruption of critical IT systems. b) Dedicating IT expertise to keep abreast of the latest developments, innovation and threats in technology and assessing their impact and risks. c) Conducting Vulnerability and Penetration Testing (VAPT) and guided self-assessments to identify IT security gaps. d) Leveraging on threat intelligence and advanced security analytics to detect potential breaches. e) Conducting training, including assessment exercises, to educate and heighten our users’ awareness to cyber threats. f) Maintaining a cyber threat incident response protocol and disaster recovery plan. The Group carries out disaster recovery plan testing at least once annually. INVESTOR RELATIONS Bui lding and maintaining investor confidenceand trust throughopendialogue and two-way communication is at the core of CDL’s Investor Relations (IR) function. Our IRPolicy, also available on the CDLwebsite (www.cdl.com.sg), outlines the principles and framework inwhichwe communicate and engage with our shareholders and the investment community. OPEN COMMUNICATION We believe in timely and clear disclosure of pertinent information to provide investors with a better understanding of the Group’s strategic and material developments through regular updates on our strategies, operations and financial performance that are available across multiple platforms. The Group’s financial results, investor presentations, annual and sustainability reports, media statements and other material announcementsaredisseminated on SGXNet (sgx.com) and published on our website’s ‘Investor Relations’ section. In addition, our website and social media channels (LinkedIn, Twitter and Instagram) highlight the latest updates on the Group’s business milestones. Investors can subscribe to email alerts on the CDL website or follow our social media channels. PROACTIVE ENGAGEMENT The CDL senior management and IR team regularly engage with the investment community through various platforms such as Annual General Meeting (AGM), post-results luncheons, conferences, meetings and site visits. To update the market on our financial performance and maintain our reach, we hold biannual results briefings covering analysts and media. Investors can also attend these briefings via ‘live’ webcasts. With the evolving COVID-19 pandemic, our investor meetings in 2021 largely took a virtual form, including our AGM in June and 1H 2021 financial results briefing in August. Throughout the year, we connected with over 100 investors via virtual meetings and conference calls to help them better understand how we are aligning our strategic priorities to enhance and unlock shareholder value. In tandem with the global climate change agenda, we saw an increased emphasis on Environmental, Social and Governance (ESG) investing. In 2021, our management participated in 11 ESG conferences organised by brokers to share our integrated sustainability strategy with the investment community. Apart from facilitating corporate access for investors, the IR team also maintains regular communication with over 20 sellside equity research analysts that cover our stock. We also hosted virtual tours of our residential showflats to investors. While CDL had ceased quarterly reporting since the amendments to Rule 705(2) of the ListingManual of Singapore Exchange Securities Trading Limited in February 2020, the Group continued to provide regular quarterly updates on our business performanceandoperations. This proactive approach remains a critical aspect in our IR engagement, as we recognise that investors are seeking better disclosure amidst the turbulent year and recalibrating their investment strategies. Investor Type^ 2021 Share Price Performance Geographic Distribution^ Singapore Rest of the world/ Unidentified holdings Asia (ex Singapore) Unidentified holdings US UK Europe (ex UK) Notes: Excludes treasury shares * Including shares held by brokers and undisclosed holdings. ^ As at 31 December 2021. Hong Leong Investment Holdings Pte. Ltd. Institutions Retail & Others* 24.9% 48.6% 26.5% 906.9 MILLION SHARES 9.6% 5.0% 4.4% 3.5% 57.8% 19.7% 906.9 MILLION SHARES 115% 110% 105% 100% 95% 90% 85% 80% 04 Jan 04 Jan 16 Mar 21 Apr 28 May 02 Jul 10 Aug 14 Sep 19 Oct 25 Nov 30 Dec Equity markets remained volatile as pandemic recovery and inflationary concerns weighed down market sentiment. The Government’s announcement of property cooling measures at year-end also resulted in trading volatility and impact. CDL’s share price closed at $6.81 on 31 December 2021 – a 14.6% dip for the year. Considering the total proposed cash dividend of 12.0 cents per share and the proposed distribution in specie of CDLHT units1, the total dividend distribution to shareholders is expected to be 31.1 cents1 per share for FY 2021, representing a dividend payout of 333%. CDL 14.6% FTSE ST All-Share 9.7% Straits Times Index 9.8% 1 Refers to the proposed distribution in specie of 144,300,000 stapled securities in CDLHT on a pro rata basis, estimated to be valued at 19.1 cents per share.
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