#1COUNTRY GARDEN 碧桂園 Financial Year 2014: Annual Results Presentation March 11, 2015 COUNTRY GARDEN Holdings Company Limited#2Disclaimer This presentation may contain forward-looking statements. Any such forward-looking statements are based on a number of assumptions about the operations of the Country Garden Holdings Company Limited (the "Company") and factors beyond the Company's control and are subject to significant risks and uncertainties, and accordingly, actual results may differ materially from these forward-looking statements. The Company undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such dates. The information in this presentation should be considered in the context of the circumstances prevailing at the time of its presentation and has not been, and will not be, updated to reflect material developments which may occur after the date of this presentation. The slides forming part of this presentation have been prepared solely as a support for oral discussion about background information about the Company. This presentation also contains information and statistics relating to the China and property development industry. The Company has derived such information and data from unofficial sources, without independent verification. The Company cannot ensure that these sources have compiled such data and information on the same basis or with the same degree of accuracy or completeness as are found in other industries. You should not place undue reliance on statements in this presentation regarding the property development industry. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of any information or opinion contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. Information and opinion contained in this presentation may be based on or derived from the judgment and opinion of the management of the Company. Such information is not always capable of verification or validation. None of the Company or financial adviser of the Company, or any of their respective directors, officers, employees, agents or advisers shall be in any way responsible for the contents hereof, or shall be liable for any loss arising from use of the information contained in this presentation or otherwise arising in connection therewith. This presentation does not take into consideration the investment objectives, financial situation or particular needs of any particular investor. It shall not to be construed as a solicitation or an offer or invitation to buy or sell any securities or related financial instruments. No part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This presentation may not be copied or otherwise reproduced. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No securities may be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Any public offering of securities to be made in the United States will be made by means of a prospectus. Such prospectus will contain detailed information about the company making the offer and its management and financial statements. No public offer of securities is to be made by the Company in the United States. © 2015 Country Garden Holdings Company Limited. All rights reserved. 1#31 Results 2 Financial Highlights Overview Business Strategic Overview Outlook 3 4 2#4Results Highlights Summary of results (RMB Billion)4 2012 2013 2014 2014 YoY growth Total Asset 136.5 206.2 268.0 30.0% Total Liability 97.6 160.2 205.6 28.3% Total Debt 36.9 56.2 61.1 8.7% Adjusted cash and cash 16.6 26.7 27.2 1.9% equivalent¹ Net Debt¹ 20.3 29.6 33.9 14.5% Shareholder's equity 37.6 44.0 56.7 29.0% No. of projects 118 171 238 39.1% (RMB Billion)4 2012 2013 Contracted Sales 47.6 106.0 2014 2014 YoY growth 128.8 21.5% Contracted GFA 7.6 15.9 19.3 21.04% (Million sqm.) Revenue 41.9 62.7 84.5 34.8% Gross Profit 15.3 19.0 22.1 16.0% Post-LAT Gross Profit 13.1 17.3 20.4 17.7% Total SG&A 3.8 6.3 7.5 18.6% % of contracted sales 7.9% 6.0% 5.82% Profit Attributable to the Owners 6.9 8.5 10.2 of the Company Core Profit Attributable to the 6.8 8.0 9.2 15.5% Owners of the Company² EPS (Cents)5 37.49 45.97 53.45 16.3% -0.18 percentage points 20.1% Highlights for 2014 ☑ Total revenue was around RMB84.55 bn, representing a 34.8% year-on-year growth ✓ Post-LAT gross profit was RMB20.41 bn, representing a 17.7% year-on-year growth ☑ Profit attributable to equity owner was around RMB10.23 bn, representing a 20.1% year-on-year growth ✓ Core net profit2 was RMB9.24 bn, representing a 15.5% year-on-year growth ✓ Weighted average borrowing cost was 8.16%, 0.38 percentage points lower than that of 2013 Net gearing was around 59.7% as of December 31, 2014, 7.6 percentage points lower than as of December 31, 2013 ✓ Contracted sales was around RMB128.79 bn in 2014, representing a 21.5% year-on-year growth, beating our sales target. Contracted GFA was around 19.28 mn sqm., representing a 21.0% year-on-year growth ✓ There were 238 projects under different stages of development as of Dec 31 2014, with an attributable GFA of 79.10 mn sqm.³ -6.3 percentage Dividend Payout 37.0% 38.8% 32.5% Note: Dividend (Cents) 13.86 16.83 14.75 points -12.4% 1 2 -0.38 percentage Weighted Average Borrowing Cost 9.6% 8.5% 8.16% points 3456 Adjusted cash and cash equivalents = cash and cash equivalents + restricted cash Excluding change in fair value of investment properties, net foreign exchange gain or loss on financing activities, loss in early redemption of US$550mm senior notes due 2017 Obtained land use right certificates, development and operation right Unless stated otherwise Affected by the rights issues in 2014, EPS figures in 2012 and 2013 are restated Total dividend / Total core profit attributable to the owners of the company 3#51 Results 2 Financial Highlights Overview Business Strategic Overview Outlook 3 4 4#6Financial Overview: Core Indicators (1/2) Revenue (RMB million) YoY 34.8% 84,549 62,725 41,891 25,804 CAGR approximately 34.5% 34,748 Recognized revenue from property development (RMB million) CAGR approximately 35.0% YoY 36.4% 81,898 24,638 60,043 40,012 33,194 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 GFA delivered ('000 sqm) Recognized average selling price (RMB/sqm) 5,896 4,929 CAGR approximately 25.4% YoY 31.8% 12,179 9,240 6,497 6,498 5,630 6,724 4,999 6,158 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 LO 5#7Financial Overview: Core Indicators (2/2) Post-LAT gross profit (RMB million) YoY 17.7% 20,410 7,478 CAGR approximately 28.5% 17,334 13,078 10,547 Net profit attributable to the owners of the company (RMB million) CAGR approximately 24.3% YoY 20.1% 10,229 8,514 5,813 6,853 4,291 Gross Profit 2010 2011 2012 2013 2014 Net Profit 2010 2011 2012 2013 2014 29.0% 30.4% 31.2% 27.7% 24.1% 16.6% 16.7% 16.4% 13.6% 12.1% Margin Margin Book value per share (RMB) YoY 16.8% 2.78 2.06 2.38 1.49 CAGR approximately 16.9% 1.74 Earnings per share (RMB cents) CAGR approximately 19.9% YoY 16.3% 53.45 45.97 35.00 38.06 25.89 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014#8Financial Overview: Costs Costs and net profit (as % of Revenue) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2010 SG&A (as % of contracted sales) 2011 2012 2013 2014 ■ Administrative Expenses ■Selling and Marketing Costs Total 7.9% 5.7% 6.0% ■Net Profit Income Tax ■Finance Cost Administrative Expenses Selling and Marketing Costs Other Cost Land Appreciation Tax Business Tax Construction Cost Land Cost 5.8% 4.4% 4.6% 2.6% 4.1% 3.3% 1.9% 2.5% 3.1% 3.3% 1.9% 2.5% 2010 2011 2012 2013 2014 7#9Financial Overview: Capital Structure (1/2) Net debt¹/Shareholders' equity² Debt maturity (RMB bn) as of 31 December 2014 Onshore loans Offshore loans Offshore senior notes 0.00 67.3% 63.3% 59.7% 2.54 2.15 53.9% 48.4% 1.97 0.00 5.64 12.49 1.42 10.42 4.82 0.00 4.58 4.69 5.65 0.00 2.76 0.00 0 0.00 0.00 0.13 0.59 0.18 0.70 0.19 0.05 0.12 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 and beyond Red-line management and control net gearing ratio EBITDA³/Interest coverage Total debt/EBITDA³ 3.6x 5.0x 3.3x 3.1x 3.0x 4.3x 2.9x 3.9x 3.6x 3.3x Optimizing debt profile Debt by currency (RMB bn) Other*, 2.51, 4% RMB, 30.37, 50% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 *Others: including MYR and other currencies USD, 23.25, 38% HKD, 4.95, 8% 1 Net debt = LT Debt + ST Debt - Cash & cash equivalents - restricted cash (excluding cash collateral) 2 Equity attributable to owners of the Company 3 EBITDA defined as operating profit + interest income + PP&E depreciation + amortization of land use rights and intangibles, excluding foreign exchange gain or loss ∞#10Financial Overview: Capital Structure (2/2) Credit ratings Rating agencies Category Ratings Outlook Fitch Corporate & bond ratings BB+ Positive S&P Corporate & bond ratings BB+ Stable Moody's Corporate & bond ratings Ba2 Positive Weighted average borrowing cost Initiated ratings of BB+ in May 2014, Outlook upgraded to Positive in Jan 2015 S&P upgraded corporate ratings from BB to BB+ and bond ratings from BB- to BB+ in 2014 Moody's had upgraded Country Garden's rating to Ba2 (Positive) in Jan 7th, 2015 Notes issued and other main financing activities in 2014 Type 12% Issuance Date Size Coupon and interest rate Maturity (year) 9.56% 9.20% 10% 8.54% 8.16% 7.60% 8% Private placement June 2014 250 (US$ Mn) 7.500% 5 30 6% Senior notes May 2014 4% 550 (US$ Mn) 7.875% 5 2% Club Loan 0% December 2014 4.5 HIBOR/LIBOR 4 (HKD$ bn) + 3.7% 2010 2011 2012 2013 2014 Lower interest cost in 2014 due to early redemption of 11.25% senior notes due 2017 and obtainment of our first club loan. STANDARD S&P upgraded Country Garden's rating to BB+ on July 28, 2014 & POOR'S MOODY'S Moody's upgraded Country Garden's rating outlook to positive on Jan 7, 2015 Fitch Ratings Fitch upgraded Country Garden's rating outlook to positive on Jan 23, 2015 6#11Financial Overview: Cash Flow Management Strong internal capital reserves . • Abundant cash balance - available cash and bank balances of approximately RMB 27.21 billion¹ as of 31 December 2014, accounting for 10.2% of the total assets and maintaining the Company's financial flexibility Strong internally generated cash and liquidity as a result of quick asset-turnover model Capital market financing • . Debt: Eight successful issuances in the USD bond market since 2009 till December 31, 2014, and the company had its first private placement transaction in June 2014 • Well-known name in high yield market with ongoing dialogue with investors Raised HK$4.5 Billion from HK$/US$ Dual Currency Four-year Loan at Dec 2014. Equity: US$400 mn equity placement in Feb 2012 (US$282 mn primary, US$118 mn secondary). From Aug to Oct 2014, HK$3.18 billion rights issue was oversubscribed by 7.8 times. Agricultural Bank of China, Bank of China, Industrial and Commercial Bank of China, China Construction Bank, HSBC, Hang Seng Bank, China Guangfa Bank, China Minsheng Bank, Shanghai Pudong Development Bank, Bank of Communications, J.P.Morgan, Goldman Sachs, Deutsche Bank and BEA, as well as local commercial banks, 中國銀行 Strong long-term etc. relationship with financial 中国农业银行 AGRICULTURAL BANK OF CHINA BANK OF CHINA institutions 中国建设银行 HSBC X China Construction Bank ICBC 中国工商银行 △ 广发银行ICGB 中国民生银行 0 恒生銀行 HANG SENG BANK 交通銀行 CHINA MINSHENG BANKING CORP ITD. J 浦发银行 SPD BANK BANK OF COMMUNICATIONS Note: 1. Including restricted cash Goldman Sachs J.P.Morgan Deutsche Bank 東亞銀行 As of 31 December 2014, approximately RMB 35.98 billion bank facilities undrawn from major Chinese banks 10#121 Results 2 Financial Highlights Overview Business Strategic Overview Outlook 3 4 11#13Business Overview: Contracted Sales (1/3) 2014 Contracted Sales Increased by approximately 21.5% YoY while ASP remains stable Contracted sales (RMB Bn) Contracted GFA (mn sqm) CAGR 40.7% 47.6 43.2 32.9 128.8 106.0 2010 2011 2012 2013 2014 CAGR 33.9% 7.64 6.87 6.00 19.28 15.93 2010 2011 2012 2013 2014 Contracted sales ASP (RMB/ sqm) 6,656 6,681 6,289 6,231 5,488 2010 2011 2012 2013 2014 12#14Business Overview: Contracted Sales (2/3) Top ten cities by contracted sales in 2014 Cities Contracted sales (RMB'bn) Contracted sold GFA (000'sqm) Average Selling Price of contracted sales (RMB/sqm) Guangdong Guangzhou 6.83 620.0 11,016 Guangdong Foshan 5.21 558.2 9,338 Guangdong-Huizhou 5.06 706.3 7,166 Liaoning - Shenyang 4.91 840.1 5,844 Guangdong-Jiangmen 4.42 730.6 6,052 Gansu - Lanzhou 4.17 548.1 7,607 Guangdong - Meizhou 4.09 791.3 5,170 Guangdong Dongguan - 4.07 522.6 7,791 3.95 3.81 Jiangsu - Zhenjiang Jiangsu Nantong Geographic distribution of contracted sales in 2014 (by value) Contracted sales by target markets in 2014 (by value) 650.4 6,065 557.5 6,839 Others¹ 18% Shandong Guangdong 33% 2% Gansu 3% Zhejiang 3% Liaoning 4% Fujian 5%Hu'nan Jiangsu 12% Hubei Anhui 5% 7% 8% Overseas cities, 4% Tier 3 and 4 cities, 48% Note¹ including Guizhou, Malaysia, Australia, Sichuan, Hainan, He'nan, Chongqing, Guangxi, Tianjin, Jiangxi, Hebei, Inner Mongolia, Yunnan, Jilin, Heilongjiang, Shanxi Tier 1 and 2 cities, 48% 13#15Business Overview: Contracted Sales (3/3) 2014 contracted sales breakdown by types of products (by value) Low-rise residential 22% Parking lots and commercials 4% 2014 contracted sales breakdown by city type (by value) cities with sales started from 2014 14% High-rise residential 74% Cities already selling at the end of 2013 86% 2014 contracted sales of high-rise residential size break down by size (by value) Above 140 sqm 14% Below 90 sqm 21% 2014 contracted sales of low-rise residential size break down by size (by 300-500 Above value) 500 sqm 7% 2014 contracted sales of payment break down (by value) From lump sum buyers 35% 90-140 sqm 65% sqm 18% Below 300 sqm 75% From mortgage buyers, 57% From installment buyers, 8% 14#16Business Overview: Landbank (1/2) Landbank GFA breakdown by geography' Landbank GFA breakdown by development stage¹ (million sqm) Zhejiang, 2% Fujian, 3% Shandong, 5% Hu'nan, 5% Inner Mongolia, 5% Hubei, 6% others², 14% Guangdong, 32% Jiangsu, 12% Liaoning, 6% Anhui, 10% 31.5 79.1 5.1 7.3 12.4 18.2 3.7 0.9 Completed and Completed but Under pre-sold unsold pending construction- sold delivery Under construction with sales permit - unsold Under Pending construction construction without sales approval permit Pending master planning Total Total: there is another acquired 8.92 million sqm under land use right obtaining process GFA breakdown by country / province for GFA of acquired land in 2014 Proportion of acquired land to cities newly entered in 2014 (by area) others³, 20% Jiangsu, 26% He'nan, 3% Anhui, 3% Hebei, 5% Fujian, 5% Guangdong, 13% Hubei, 7% Gansu, 11% Shandong, 7% ■In cities entered by the end of 2013 ■New land of existing projects ■In cities newly entered in 2014 ■New projects Including minority interests: 33% 38% 62% Total GFA: 18.96 million sqm Total Consideration: RMB16.17 billion Average Cost: RMB 853/ sqm Competitive land cost enhances Country Garden's pricing flexibility and reduces the impact of market fluctuations Note: 1. Attributable GFA as of 31 December 2. Including Malaysia, Chongqing, Sichuan, Jiangxi, He'nan, Guangxi, Gansu, Guizhou, Tianjin, Hebei, Hainan, Jilin, Yunnan, Heilongjiang, Shanxi, Australia 3. Including Zhejiang, Shanxi, Sichuan, Jilin, Hu'nan, Chongqing, Heilongjiang, Guangxi, Jiangxi, Hainan, Liaoning, Guizhou 67% 15#17Business Overview: Landbank (2/2) As of 31 December 2014, 238 projects in total with land use right*, of which 234 in China (89 in Guangdong), 3 in Malaysia and 1 in Australia. The locations of projects in China spans across 24 provinces/ autonomous regions/municipalities and 109 cities. Shanxi Inner Mongolia Project No.: 3 IGFA: 3.73M sqm i Tianjin Project No.: 3 i GFA: 0.55M sqm J Project No.: 1 GFA:0.24M sqm Gansu Project No.: 2 GFA:0.89M sqm Hebei Project No.:2 GFA:0.51M sqm Henan Project No.: 5 GFA:1.01M sqm Sichuan Project No.: 3 GFA:1.10M sqm Chongqing Project No.: 4 GFA:1.30M sqm Guizhou Project No.:3 GFA:0.85M sqm Yunan Project No.:1 GFA:0.32M sqm Heilongjiang Project No.: 2 GFA: 0.30M sqm Liaoning Jilin Project No.: 1 GFA: 0.34M sqm Project No.: 6 GFA: 4.97M sqm Shandong Project No.: 9 GFA: 3.65 M sqm Hubei Project No.: 14 GFA: 4.84M sqm Zhejiang Project No.: 11 GFA:1.72M sqm Jiangxi Project No.: 4 GFA: 1.04M sqm Hu'nan Project No.: 11 GFA: 3.71M sqm Fujian Project No.:8 GFA:2.30M sqm Jiangsu Project No.: 29 GFA: 9.54M sqm Anhui Project No.: 13 GFA: 7.98M sqm Guangxi Project No.:5 GFA: 0.99M sqm Hainan Project No.:5 GFA:0.39M sqm Guangdong Project No.:89 GFA:25.29M sqm *The locations of the 234 projects in China which have land use right certificates or development and operation right (excluding minority interests) as of 31 December 2014 16#18Business Overview Hotels As of 31 December 2014, the Group owned 44 Hotels (40 five-star or five-star standard¹ and 4 four-star or four- star standard¹), with a total of 12,433 guest rooms, and another 14 hotels under construction Hotel Asset and Revenue² Million RMB 14,000 12,000 10,000 8,000 Hotel Asset (Left Axis) 803 972 1,200 Hotel Revenue (Right Axis) 1,132 995 1,000 800 600 472 6,000 12,882 12, 228 9,065 400 4,000 7,759 5,392 2,000 200 Note: 0 2010 2011 0 2012 2013 2014 1 Hotels are only allowed to apply for star rating after one year of operation. 2 Asset and no. of hotel are as of 31 Dec of each year; and the revenue is for FY ended 31 Dec 17#19Business Overview Investment properties • Since 2010, in addition to developing community projects targeted for home owners, the Group has also developed urban complexes with large business centers, large residential communities and five-star hotels. The Group has built a dedicated management team with expertise in planning, design and leasing. The Group has also formed strategic alliance with well-known brands The Group set up a specialized commercial property management company at the end of 2013 Breakdown of investment properties is as follows: 75 communal projects in 14 provinces, 5 large commercial complex projects in Jurong Jiangsu, Shenyang Liaoning, Yunfu Guangdong, Chizhou Anhui, and apartment projects in Zhaoqing Guangdong. During 2014, the Group recorded approximately RMB1.4 bn after tax gains on investment properties after revaluation, due to change in the Group's accounting policies to recognize the fair value of investment properties on the balance sheet Completed projects Rented (to be rented out) Type GFA (sq.m.) Fair value (RMB'000) 2014 rental income (RMB'000) GFA (sq.m.) Fair value (RMB'000) GFA (sq.m.) Under construction Fair value (RMB'000) Community stores 357,123 3,323,395 75,978 147,127 1,001,394 7,427 53,970 Apartments 58,136 203,000 4,985 Large commercial 141,185 1,338,290 5,751 14,949 85,560 171,988 1,029,970 complex Total 556,444 4,864,685 86,714 162,076 1,086,954 179,415 1,083,940 18#20Business Overview: Property Management and Construction Construction and Decoration Details • Is a key component of Country Garden's vertically integrated value chain • The efficient complementarity of its construction & decoration segment and property development segment enhances the Group's core competitiveness in progress control and resource allocation Revenue from construction & decoration segment was approximately RMB21.45 billion in 2014, of which approximately RMB20.98 billion from other segments within the Group, approximately RMBO.47 billion from external customers Property Management As of December 31, 2014: · . Property management business covers 205 projects Area under management: about 71.49 million sqm Serving approximately 354,000 households of home owners and residents In 2014, revenue of property management business amounted to approximately RMB960 million, representing a YoY increase of 24.1% Property management business helps diversifying the Group's income portfolio, thus contributing to a sustainable development of the Group's business 19#211 Results 2 Financial Highlights Overview Business Strategic Overview Outlook 3 4 20 20#22Core strategy: capitalizing on urbanization, ensuring financial stability, adopting partnership scheme, actively developing investment platforms and strategic business units • Broadening financing channels Reducing financing cost Prudent approach to land acquisition: capping the scale of land acquisitions for each project at the early stage liquidizing existing assets Maintaining financial stability Capitalizing on urbanization Developing investment platforms / strategic business units China's ongoing urbanization maintains momentum, thus generating huge demand consistently for residential properties High property prices in downtown areas and limited living space have accelerated urbanization in the surrounding areas of tier-1 and tier-2 cities The demand for residential properties in the core areas in tier-3 and tier-4 cities is stable The headquarter will enhance property investment platforms through partnership scheme Strengthen cash flow and revenue management for strategic business units Strategic investment in property-related businesses Urbanization will create demand for other property- related products and services in addition to those for residential properties 21 21#23Country Garden's Management Matrix: improving such aspects as finance, investment, operation, sales and marketing, cost control and human resources, based on the core strategy of capitalizing on urbanization Broadening financing channels Reducing financing cost Strengthening cash flow management Finance Human Resources Catering for the needs of cities at different stages of development • Prudent investment strategy Stabilizing core management team Strengthening training talents reserve • Investment Capitalizing on urbanization Costing • Partnership scheme / platform management: eight kinds of support and two types of management under one platform Integrating regional offices into different business units Operation Sales and Marketing Lean production management Dynamic cost control Cost database Consolidating strengths in various aspects of the value chain of property sector Customer orientation Utilizing different channels and platforms 22 22#24Focusing on Financial Management Achieving financial stability: maintaining a balanced debt structure of different currencies at a reasonable level; diversifying financing channels; aiming for investment-grade ratings; making financial management the key in all of the Group's operations • Balanced debt structure of different currencies Prudent management of funding cost, optimizing debt-financing portfolio Proportions of different currencies in debts Borrowings in RMB Notes and Borrowings in USD Borrowings in HKD Borrowings in Ringgit 2% 2% 4% 2% 8% 47% 44% 38% 51% 47% 55% 52% 50% 52% 45% Maintaining debts at manageable level • ⚫ implementing net gearing ratio cap (below 70%) • deleveraging through capital operation Diversifying financing channels • 2010 2011 Net Debt/Shareholders' Equity² 48.4% 2010 63.3% 2011 2012 2013 2014 67.3% 59.7% 53.9% 2012 2013 2014 . • • In recent years, the Company has successfully obtained substantial capital from the market through diversified financing channels; Since 2009 till Dec 2014, Country Garden successfully conducted eight bond issues in the US bond market; Obtained a HK$4.5 Billion dual-currency club loan in December 2014 Further expansion of onshore and offshore financing channels in the future Current rating & outlook, Target S&P: BBB- and above Aiming for investment grade S&P: BB+ (Stable) Fitch: BB+ (Positive) Moody's: Ba2 (Positive) Fitch: BBB- and above Moody's: Baa3 and above 2009 ratios are restated according to change in accounting policy 1 Net debt = LT Debt + ST Debt - Cash & cash equivalents - restricted cash (excluding cash collateral) 2 Equity attributable to the owners of the Company • The Group's current credit rating is only one step away from "Investment Grade" rating of some rating agencies 23#25Investment: develop a portfolio of projects and land resources according to the pace of China's urbanization and capitalize on unbalanced development in the process; satisfying customers' needs in the first- to forth-tier cities while seeking suitable land resources High property prices in downtown areas and limited living space have increased demand for residential properties in tier-1 and tier-2 cities and accelerated urbanization in their surrounding Tier 1 & Tier 3 & Tier 4 Cities Tier 2 Cities area • Most buyers in tier-3 and 4 cities are end users, leading to stable demand Living standard pending improvement in large number of tier-3 and tier-4 cities A balanced portfolio enables Country Garden to have bigger market depth and scale than its peers; Country Garden will closely monitor the different types of demand brought by urbanization besides housing needs 24 24#26• Operation: Enhancing partnership scheme; developing property business and platforms for resources integration Country Garden will operate each project and supporting industries as a single business units (BU). The headquarters will provide eight kinds of support for each BU and will manage the BU's cash flow, income and expenditure Partnership Scheme Residential Property BU1 Country Garden 1 2 3 4 5 6 7 8 1 Financial Support 2 Human Resources Support 3 Construction Support 4 Design Support 5 Management Support 6 Marketing Support 7 Branding Support 8 Property Management Support Residential Property BU2 Residential Property BU3 Senior housing BU* Hotel BU* Others BU* *Some BU are still under planning 25#27Sales & Marketing: Internet mentality - optimizing customer-oriented services and products, expanding customer base and strengthening penetration through various channels and promotions. Customer-oriented ➤ Precise positioning -Promoting public development, realizing sales by customized production Locking-in customer needs in advance, Sales and Marketing Market penetration: Strengthening customer organizational capability through various channels realizing sales by customized production to reduce inventory 凤凰 -Offer products that matches market needs: new product line • Flexibility in design Better user experience • Lower costs Enhancing services -Extraordinary service experience Strengthening standardization and increasing the probability of purchase -Related financial services Grafting related financial resources for customers to facilitate payment Country Garden's brokerage app Fang.com Q 淘宝网 SouFun Taobao.com 京东 JD.50% .COM st 不 想 Integrated marketing: 呆 品色 ctrip eSTAY 携程 .CN 开 Focusing on multi-media platform to maximize customer coverage 微信 網易 NETEASE www.163.com 【碧桂园TV Tencent 腾讯 Y! Country Garden's own multimedia platform So qu Bai du E 26#28Costs: Taking advantage of integrated value chain; Implementing lean management in production; Using cost database for dynamic cost control Integrated value chain Dynamic cost control Leveraging resources of in-house design, construction, sales and property management to provide the market with competitive products offering value for money at a low cost. Lean \production management Implementing lean production management Monitoring and optimizing every aspect of product design and construction to minimize waste of materials, time and manpower Cost Database The Group established a real estate development cost database based on its over two decades of experiences in real estate development and in managing over 200 projects. The database on costs is used for benchmarking management of different projects in locations of all types of geographical and climatic conditions in the country Closely monitoring every aspect of real estate development to achieve optimum allocation of manpower and material resources, in addition to the control on the overall output 27 27#29Human resources: Stable core management team and improving training system to strengthen talents reserve Stable core management team Each of the business division under senior management team led by respective industry experts, forming a stale and cohesive team • Comprehensive training system covering leadership development programs, new employee training, on-the-job training, etc., to help employees become all-rounded industry talents Reserve of high calibre talents Introduce well educated talents from different backgrounds. Since 2014, nearly 200 employees have been included in a complete training program who will become the mainstay of our business in future 28#30Company Vision: Building a community-oriented integrated business platform covering all stages of people's life cycles (1/2) Competitive Edges Strong customer base of 354,000 households Existing vertically integrated businesses along the value chain and supporting operations accumulated valuable experience, and can extend service and product category • The Group is capable of providing property management services for third parties because of its competitive advantages in property development Extensive sales channels for cross-marketing . Strong brand influence leads to higher premium • Diversified financing channels and broad investor base Industry Education Property Development & Operation Community Services Investment & Wealth Management/Insurance Healthcare and Elderly Care Age 29 29#31• Company Vision: Building a community-oriented integrated business platform covering all stages of people's life cycles (2/2) Category extension in the future to fulfill the needs of the community* *Other Hotel/ Business E Tourism Architectural installation *Other Business F Architectural design Community commerce Needs of Community Residential *Other Business A property development *Other Business B *Business under planning, for reference only Holdings *Other Business D *Other Business C 30 50#32Summary Outstanding Sales Improved Financials Strong Team Details Achieved contracted sales of RMB128.8 billion with 21.5% growth amidst challenging operating environment • Core indicators continued to improve in 2014 despite of the high growth base in 2013 Effectively controlled total debt and optimized capital structure while the company scaled up, net gearing ratio down 7.6 percentage points to 59.7% •The Group successfully obtained first syndicated club loan and its financing profile continues to optimize, resulting in upgrades by rating agencies. Current credit rating is only one step away from "Investment Grade" A more cohesive core management team, and more sophisticated and professional management system • Strengthen training and talent reserve. Introduce high calibre and well educated talents from different background Platform • Introduced partnership scheme and improved the incentive system, realizing sharing of profits with the management and providing broader career outlook 31#33Thank you for your confidence and support in Country Garden! CABE 碧桂園#34Appendix 1: Business Model - Integrated and Standardised Value Chain Design Materials Supply Construction Interior Decoration Sales and Marketing Property Management Ancillary services Master Plan design Architectural design Landscape design Pipe, marbles Construction Dimension stones Installation Lighting Security system Decoration Furniture In-house sales and marketing center directly managed by the headquarter Country Garden subsidiaries or affiliated parties Vertical Integration Standardization Property management Hotel management School Retail facilities Transportations Investment analysis and decision making process is benefited from early participation of each project development stage Design and planning completed before land acquisition to ensure a swift construction process Collaboration across the entire value chain to ensure flexible deployment of resources Strive to provide home- owners with a 5-star home experience through comprehensive ancillary services 33 33#35Appendix 2: Business Model: High Asset Turnover Standardization & Integration Upfront design and construction work Flexible allocation of resources Clear working guidelines Focus on Urbanization Rigid demand- driven and flexible pricing Lower initial investments Quick Development Quick Sales Quick Cash Collection 34#36Appendix 3 - Contracted Sales (1/5) 77 new projects launched in 2014, contract sales amounted to RMB41.4bn Project Name (Location) Launched schedule Project Name (Location) Launched schedule Nantong Country Garden Jan Daye Country Garden May (Chengnan, Nantong, Jiangsu province) (Daye, Huangshi, Hubei province) Zhuji Country Garden Jan Country Garden - Phoenix City May (Zhuji, Shaoxing, Zhejiang province) (Yuanzhou, Yichun, Jiangxi province) Tonglu Country Garden Jan Fengshun Country Garden May (Tonglu, Hangzhou, Zhejiang province) (Fengshun, Meizhou, Guangdong province) Lu'an Country Garden Jan Anyang Country Garden May (Yu'an, Lu'an, Anhui province) (Tangyin, Anyang, Henan province) Country Garden - Pearl on the River Feb Qianán Country Garden Jun (Yidu, Yichang, Hubei province)) (Qianan, Tangshan, Hebei province) Sanming Country Garden Mar Qujing Country Garden Jun (Meilie, Sanming, Fujian province) (Qilin, Qujing, Yunnan province) Zhoukou Country Garden Apr Yizheng Country Garden Jun (Dongxin, Zhoukou, Henan province) (Yizheng, Yangzhou, Jiangsu province) Baoying Country Garden Apr Changping Country Garden Jun (Baoying, Yangzhou, Jiangsu province) (Changping, Dongguan, Guangdong province) Wendeng Country Garden May Dafeng Country Garden Jun (Wendeng, Weihai, Shandong province) (Dafeng, Yancheng, Jiangsu province) Pingxiang Country Garden May Zoucheng Country Garden Jun (Anyuan, Pingxiang, Jiangxi province) (Taiping, Zoucheng, Shandong province) Dongtai Country Garden May (Dongtao, Yancheng, Jiangsu province) Country Garden Sydney- Ryde Garden (Sydney, Australia) Jun 35 55#37Appendix 3 - Contracted Sales (2/5) 77 new projects launched in 2014, contract sales amounted to RMB41.4bn (cont'd) Launched schedule Project Name (Location) Launched schedule Project Name (Location) Jiujiang Country Garden Jul Country Garden Holiday Islands Aug (Chengxi, Jiujiang, Jiangxi province) (Wutonghu, Ezhou, Hubei province) Penglai Country Garden Jul Renhuai Country Garden Aug (Penglai, Yantai, Shandong province) (Renhuai, Zunyi, Guizhou province) Suqian Country Garden Jul Wuyishan Country Garden Aug (Suqian, Suzhou, Jiangsu province) (Wuyishan, Nanping, Fujian province) Country Garden - Tianxi Bay Jul Ningde Country Garden Aug (Tongzhou, Nantong, Jiangsu province) (Jiaocheng, Ninde, Fujian province) Haining Country Garden Jul Qishi Dingfeng Country Garden Aug (Haining, Jiaxing, Zhejiang province) (Qishi, Dongguan, Guangdong province) Luoyang Country Garden Jul Qingdao Country Garden Sep (Yibin, Luoyang, Henan province) (Chengyang, Qingdao, Shandong province) Cixi Country Garden Aug Suining Country Garden Sep (Cixi, Ningbo, Zhejiang province) (Suining, Xuzhou, Jiangsu province) Liyang Country Garden Aug Pinghu Country Garden Sep (Liyang, Changzhou, Jiangsu province) (Pinghu, Jiaxing, Zhejiang province) Country Garden - City Garden Aug Country Garden - South Lake Bay Sep (Shaoxing, Zhuji, Zhejiang province) (Jiawang, Xuzhou, Jiangsu province) Zhangpu Country Garden Aug Wenzhou Country Garden Sep (Zhangpu, Zhangzhou, Fujian province) (Longwan, Wenzhou, Zhejiang province) Country Garden - City Garden Aug Wuhu Country Garden Sep (Xinqu, Lanzhou, Gansu province) (Wuwei, Wuhu, Anhui province) 36#38Appendix 3 - Contracted Sales (3/5) 77 new projects launched in 2014, contract sales amounted to RMB41.4bn (cont'd) Project Name (Location) Launched schedule Nanling Country Garden Project Name (Location) Qinzhou Country Garden Launched schedule October (Nanling, Wuhu, Anhui province) (Qinbei, Qinzhou, Guangxi Zhuang Autonomous Region) October Fuding Country Garden October (Fuding, Ningde, Fujian province) Country Garden - Dragon Lake (Rugao, Nantong, Jiangsu province) October Xuzhou Country Garden Haiyan Country Garden October November (Quanshan, Xuzhou, Jiangsu province) (Haiyan, Jiaxing, Zhejiang province) Country Garden Europe City Zhuzhou Country Garden (Pingfang, Ha'erbin, Heilongjiang October November (Yunlong, Zhuzhou, Hunan province) province) Tai'an Country Garden Guangning Country Garden October November (Daiyue, Tai'an, Shandong province) (Guangning, Zhaoqing, Guangdong province) Country Garden - City Garden Country Garden - Lanjiang Mansion (Lincheng, Lin'gao, Hainan province) October (Zengcheng, Guangzhou, Guangdong November province) Country Garden - Jade Hill Country Garden - Kowloon Bay (Laishui, Baoding, Hebei province) Country Garden - Longines Bay (Bei'an, Putian, Fujian province) Xinqiao Country Garden October (Huangjiang, Dongguan, Guangdong November province) Qidong Country Garden October November (Qidong, Nantong, Jiangsu province) Country Garden - Coral Palace October November (Jiangyin, Wuxi, Jiangsu province) (Yingzhou, Lingshui, Hainan province) 37 12#39Appendix 3 - Contracted Sales (4/5) 77 new projects launched in 2014, contract sales amounted to RMB41.4bn (cont'd) Project Name (Location) Launched schedule Project Name (Location) Launched schedule Country Garden - Zhongxin Mansion (Zengcheng, Guangzhou, Guangdong December Yancheng Country Garden December province) Country Garden - Lakeside City December (Yandu, Yancheng, Jiangsu province) Yuncheng Country Garden December (Wuxing, Huzhou, Zhejiang province) (Yanhu, Yuncheng, Shanxi province) Country Garden - Grand Palace December Baicheng Country Garden (Dongkeng, Dongguan, Guangdong December (Shengtai New Area, Baicheng, Jilin province) province) Zhangjiagang Country Garden December Yichang Country Garden December (Zhangjiagang, Suzhou, Jiangsu province) (Dianjun, Yichang, Hubei province) Xinxiang Country Garden December Country Garden - Diamond Bay December (Weihui, Xinxiang, Henan province) (Jiangcheng, Yangjiang, Guangdong province) Hechi Country Garden December (Jinchengjiang, Hechi, Guangxi Zhuang Autonomous Region) 38 88#40Appendix 3 - Contracted Sales (5/5) 11 New projects are planned to be launched in 2015 Launched/Tentative launch Launched/Tentative launch Project Name (Location) schedule Project Name (Location) schedule Lianzhou Country Garden Tong'an Country Garden (Lianzhou, Qingyuan, Guangdong February (launched) (Gaoxinqu, Suzhou, Jiangsu August province) province) Zhengzhou Country Garden Country Garden - Egret Bay (Jiangyin, Wuxi, Jiangsu province) February (launched) (Xingyang, Zhengzhou, Henan province) August Anyi Country Garden February (launched) Country Garden - Hill Lake Palace (Shayang, Jingmen, Hubei September (Anyi, Nanchang, Jiangxi province) province) Country Garden - Times City Country Garden - Jade Bay (Jurong, Zhenjiang, Jiangsu March province) (Qingxi, Dongguan, Guangdong October province) Nanshan Country Garden Serendah Project (Qixingguanqu, Bijie, Guizhou April October (Serendah, Selangor, Malaysia) province) Shijiazhuang Country Garden (Yuanshi, Shijiazhuang, Hebei June province) 39#41Appendix 4: Top 10 projects with the highest contract sales in 2014 Project Name (Location) Country Garden - Ten Miles Beach Lanzhou Country Garden Contract Sales Amount (RMBbn) Contract Sales Area ('000 sqm) 4.63 621 (Huidong, Huizhou, Guangdong province) 4.02 527 (Chengguan, Lanzhou, Gansu province) Country Garden - Phoenix City 3.29 538 (Jurong, Zhenjiang, Jiangsu province) Country Garden - Galaxy Palace 3.17 478 (Yuhong, Shenyang, Liaoning province) Lu'an Country Garden 2.67 447 (Yu'an, Lu'an, Anhui province) Ryde Garden(Sydney) 2.47 50 (Ryde, Sydney, Australia) Country Garden - Eco City 2.44 286 (Hongshan, Wuhan, Hubei province) Country Garden Phoenix City (Zengcheng, Guangzhou, Guangdong 2.34 154 province) Huaxi Country Garden 2.27 292 (Huaxi, Guiyang, Guizhou province) Shunde Country Garden - including Country Garden West Court 2.21 243 (Shunde, Foshan, Guangdong province) 40 40#42Appendix 5: Top 10 projects by recognized revenue in 2014 Project Name (Location) Country Garden Phoenix City (RMBbn) 6.09 ('000 sqm) 541 (Zengcheng, Guangzhou, Guangdong province) Country Garden - Phoenix City 4.25 674 (Jurong, Zhenjiang, Jiangsu province) Country Garden Hill Lake Bay 3.50 300 (Nansha, Guangzhou, Guangdong province) Shaoguan Country Garden 2.56 456 (Zhenjiang, Shaoguan, Guangdong province) Country Garden - Eco City 2.22 252 (Hongshan, Wuhan, Hubei province) Country Garden Grand Garden 2.19 252 (Tangxia, Dongguan, Guangdong province) Shaoguan Country Garden - Sun Palace 1.70 309 (Xilian, Shaoguan, Guangdong province) Country Garden Forest Hill Garden 1.66 218 (Tangxia, Dongguan, Guangdong province) Country Garden - Phoenix City 1.59 189 (Zhangqiu, Ji'nan, Shandong province) Country Garden -Ten Mile Beach 1.59 229 (Huidong, Huizhou, Guangdong) Notes: Including underground area 111 41#43Appendix 6: Cash Flow Statement 1. Cash flows from operating activities Property sales Cash Flow Statement (RMB bn) Cash inflow from other segments and other operations Construction payments Land acquisition Interests paid Salary payments and Welfare Taxes 2013 2014 105.75 86.50 1.82 2.20 -42.90 -62.90 -28.31 -20.98 -3.81 -4.69 -6.28 -9.50 -10.19 -13.54 Cash flows used in operating activities - net -3.17 -3.65 2. Cash flows from investing activities (mainly fixed-asset investments) -4.91 -4.68 3. Cash flows from financing activities Right issue Net proceeds from bank borrowings 2.50 19.46 4.58 Perpetual Capital Securities Dividends paid 3.09 -1.79 -1.51 Others 0.52 0.25 Cash flows from financing activities - net 18.19 8.91 42