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Bank facilities available 13,202 12,278

Amount utilised for loans 8,211 8,563

Available and unutilised 4,991 3,715

Cash and fixed deposit balances 2,749 6,306

Unutilised facilities and funds available for use 7,740 10,021

Debt Securities Capacity (S$ million)

Debt securities capacity 15,697 15,837

Debt securities issued (net of debt securities purchased) 7,775 7,373

Unutilised debt securities capacity² 7,922 8,464

Leverage Ratios (S$ million)

Gross debt 15,986 15,936

Cash and cash equivalents 2,749 6,306

Net debt 13,237 9,630

Equity 23,219 24,455

Net debt equity ratio (times) 0.57 0.39

Total assets (net of cash) 41,364 38,757

Net debt/Total assets (net of cash) (times) 0.32 0.25

Secured Debt Ratio(S$ million)

Secured debt 5,849 5,341

Percentage of secured debt 37% 34%

Interest Cover Ratio (S$ million)

Earnings before net interest, tax, depreciation and amortisation 2,739 2,616

Net interest expense 382 458

Interest cover ratio (times) 7.2 5.7

Interest Service Ratio (S$ million)

Operating cashflow before interest and tax 2,038 2,583

Net interest paid 443 557

Interest service ratio (times) 4.6 4.6

1 Comparatives have been restated to take into account the retrospective adjustment relating to FRS 110 Consolidated Financial Statements which require the Group to consolidate CapitaCommercial Trust, CapitaMalls Malaysia Trust and Ascott Residence Trust.

Overview

The Group strives to maintain a prudent capital structure and actively reviews its cashflows, debt maturity profile and overall liquidity position on an ongoing basis. The main sources of the Group’s operating cashflows are derived from rental income from our investment properties, fees and residential sales.

As part of its liquidity management to support its funding requirements, investment needs and growth plans, the Group actively diversifies its funding sources by putting in place a mix of undrawn banking facilities and capital market programmes.

The global financial outlook has improved but risks remain with the lacklustre recovery in the Eurozone economies and slower growth in China. Against this backdrop, the Group continues to maintain a healthy balance sheet.

The Group’s total gross debt of S$16.0 billion was marginally higher as compared to S$15.9 billion last year. Net debt as at 31 December 2014 was S$13.2 billion as compared to S$9.6 billion as at December 2013. The increase in net debt was mainly due to the cash consideration paid in the privatisation of CMA during the year.

Finance costs for the Group were S$439.5 million for the year ended 2014. This was about 9% lower compared to S$481.7 million last year. Finance costs were lower as the average interest rate and level of borrowings were both lower in 2014. The reduction in financing costs is a result of capital management initiatives undertaken in 2013.

Sources of Funding

As at year end, 51% of the Group’s total debt was funded by bank borrowings and the balance 49% was raised through capital market issuances. The Group continues to seek diversified and balanced sources of funding to ensure financial flexibility and mitigate concentration risk.

Commitment of Funding

As at end 2014, the Group is able to achieve 99% of its funding from committed facilities. The balance 1% was funded by flexible uncommitted short term facilities.

As part of its financial discipline, the Group constantly reviews its portfolio to ensure that a prudent portion of committed funding is put in place to match the investments’ planned holding periods. Amidst the volatile global economic climate, committed financing is secured whenever possible to ensure that the Group has sufficient financial capacity to support its operations, investments and future growth plans.

Maturity Profile

The Group has proactively built up sufficient cash reserves and credit lines to enable it to meet its short term debt obligations, support its refinancing needs and pursue opportunistic investments. The Group maintains a healthy balance sheet and has unutilised bank lines of about S$5.0 billion. To ensure financial discipline, the Group constantly reviews its loan profile so as to mitigate any refinancing risks, avoid concentration and extend its maturity profile where possible. In reviewing the maturity profile of its loan portfolio, the Group also took into account any divestment or investment plans, interest rate outlook and the prevailing credit market conditions.

Debt Maturity Profile (S$ billion)

Within

Sources of Funding (S$ billion)

2010 2011 2012

Bank and Other Loans Debt Securities

Note: Convertible Bonds are reflected as held till final maturity.

1 Comparatives have been restated to take into account the retrospective adjustment relating to FRS 110 Consolidated Financial Statements which require the Group to consolidate CapitaCommercial Trust, CapitaMalls Malaysia Trust and Ascott Residence Trust.

Performance Overview

Available Lines by Nationality of Banks

The Group has built up an extensive and active relationship with a network of more than 30 banks of various nationalities. Diversity has allowed the Group to tap on the strengths and support from the financial institutions in pursuing its strategic growth and presence globally, thus enhancing its competitiveness in core markets and enabling the Group to develop other markets where appropriate.

Interest Rate Profile

The Group manages its finance costs by maintaining a prudent mix of fixed and floating rate borrowings. As at 31 December 2014, the fixed rate borrowings constituted 75% of the portfolio and the balance 25% were on floating rate basis. As finance costs formed an integral component of the Group’s operating costs, a higher percentage in fixed rate funding would offer protection against unexpected rises in interest rates. In managing the interest rate profile, the Group takes into account the interest rate outlook of its loan portfolio, holding periods of its investment portfolio, certainty of its planned divestments and operating cashflow generated from residential sales.

Interest Cover Ratio and Interest Service Ratio The Interest Cover Ratio (ICR) and Interest Service Ratio (ISR) was 7.2 and 4.6 respectively. ICR was higher at 7.2 compared to 5.7 last year, primarily attributed to lower interest expense as a result of lower average interest rate and debt balance. Net interest expense decreased by around 17% to S$382.2 million for the year. ISR was slightly lower at 4.60 compared to 4.64 last year due to marginally lower cashflows generated from development projects and operations.

Available Lines by Nationality of Banks

%

Interest Rate Profile (S$ billion)

Interest Cover Ratio and Interest Service Ratio (Times)

2010 2011 2012

1 Comparatives have been restated to take into account the retrospective adjustment relating to FRS 110 Consolidated Financial Statements

2010 2011 2012

Interest Cover Ratio Interest Service Ratio