Integrated Business Platform Expansion slide image

Integrated Business Platform Expansion

Focusing 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
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