61 Annual Report 2025 Material Risks Key Mitigating Actions Financial Exposure to financial risks involving liquidity, foreign currency and interest rates and their volatility. Volatility of cash flow negatively impacting planned cash generation and cash usage profile. Volatility of foreign currencies and interest rates resulting in realised/ unrealised losses. • Actively monitor CLAS’ debt maturity profile, operating cash flows and the availability of funding including committed and uncommitted lines to ensure that there are sufficient liquid reserves, in the form of cash and banking facilities, to finance CLAS’ operations and AEIs. • Maintain access to various sources of funds from both banks and capital markets to minimise over-reliance on a single source of funds for any funding or refinancing requirements. • Adopt natural hedging, where possible, by borrowing in the same currency as the revenue streams generated from CLAS’ investments. • Actively review and maintain an optimal mix of fixed and floating interest rate borrowings. • For more details, please refer to the Financial Risk Management section on page 218. Geopolitical Volatility in the geopolitical environment, including shifts in international policies or relations, and political instability affecting investors’ sentiments, capital flows and operations in the markets where CLAS operates. • Proactively monitor geopolitical environment, government policies, macroeconomic trends and regulatory changes, with timely assessments to inform strategic and investment decisions. • Establish good working relationships between local management teams and local authorities to be kept abreast of regulatory and policy changes. • Ensure investments are diversified across asset classes and/or geographies to minimise impact from political events. • Focus on markets where CLAS has operational scale and the underlying political fundamentals are more stable. Investments and Divestments Deployment of capital into loss-making or below-target return investments due to wrong underwriting assumptions or poor execution. Inadequate planning to identify suitable divestment opportunities. • Evaluate all investment and divestment proposals against a rigorous set of criteria which includes potential for value creation and DPS accretion, review key financial assumptions and perform sensitivity analysis on key variables. • Maintain disciplined capital allocation and investment governance, supported by cross-functional due diligence and independent local expertise, to enhance execution quality, ensure regulatory compliance and safeguard risk-adjusted returns. • Identify potential risks associated with proposed projects and the issues that may prevent smooth implementation or attainment of projected outcomes at the evaluation stage and devise action plans to mitigate such risks as early as possible. • Integrate sustainability in the real estate life cycle, from the earliest stage of our investment, redevelopment and divestment processes. • The Boards review and approve all major investment and divestment decisions.
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