Q2 2021 Financial Highlights and Offshore Wind Build-Out Plan slide image

Q2 2021 Financial Highlights and Offshore Wind Build-Out Plan

Financing strategy 37 At Ørsted, we have a centralised financing strategy utilizing our strong balance sheet and diverse portfolio. The strategy supports: • • • . • • A capital structure supportive of our BBB+ rating ambition Concentration of and scale in financing activities Cost efficient financing based on a strong parent rating Optimal terms and conditions and uniform documentation Transparent and simple debt structure No financial covenants and restrictions on operating arrangements Corporate market more stable and predictable than project finance market Avoidance of structural subordination The financing strategy optimizes the effect of a fully integrated cash pool where cash at practically all of the company's more than 200 subsidiaries is made available for the company's financing and liquidity purposes. Financing of activities at subsidiary level is provided by Ørsted A/S in a standardised and cost-efficient setup. Widespread use of project financing is not considered cost-efficient and dilutes the creditworthiness of the company. Orsted
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