Notes to the Financial Statements For the financial year ended 31 December 2025 Notes to the Financial Statements For the financial year ended 31 December 2025 23 FINANCIAL INSTRUMENTS (continued) Interest rate risk (continued) Exposure to interest rate risk (continued) Group Company Nominal amount Nominal amount Note 2025 2024 2025 2024 $’000 $’000 $’000 $’000 Variable rate instruments Loans to subsidiaries 26 – – 163,288 162,482 Trade and other receivables 9 23,901 24,631 – – Cash and cash equivalents 11 68,086 59,639 763 701 Loans and borrowings 12 (3,165,197) (3,100,637) – – Trade and other payables 13 (16,818) (17,332) (38,691) (310,464) (3,090,028) (3,033,699) 125,360 (147,281) Fair value sensitivity analysis for fixed rate instruments The Group does not account for any fixed rate financial assets and liabilities at FVTPL. Therefore, a change in interest rates at the reporting date would not affect profit or loss. Cash flow sensitivity analysis for variable rate instruments An increase of 10 basis points in the interest rates at the reporting date would have decreased profit or loss (before any tax effects) by $3.1 million (2024: $3.0 million) and by an insignificant amount (2024: an insignificant amount) for the Group and the Company respectively. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. A decrease of 10 basis points in the interest rates at the reporting date would have had the equal but opposite effect, on the basis that all other variables remain constant. Capital management The primary objective of the Group’s capital management is to ensure that it maintains an optimal capital structure so as to maximise shareholders’ value. Capital consists of all equity. The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders, issue new shares, and obtain new borrowings to leverage on lower cost of borrowings versus the Group’s weighted-average cost of capital or divest assets to reduce borrowings. Management monitors capital based on a set of financial ratios with the primary focus on gearing ratio. The gearing ratio is calculated as net debt divided by total equity. Net debt is calculated as borrowings less cash and cash equivalents. There were no changes in the Group’s approach to capital management during the year. Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements. 23. FINANCIAL INSTRUMENTS (continued) Accounting classifications and fair values The carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy are as follows. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. Carrying amount Fair value Note Amortised cost Other financial liabilities Total Level 1 Level 2 Level 3 Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 Group 31 December 2025 Financial assets not measured at fair value Loans to joint ventures 7 92,398 – 92,398 Trade and other receivables(1) 9 312,919 – 312,919 Cash and cash equivalents 11 118,081 – 118,081 523,398 – 523,398 Financial liabilities not measured at fair value Loans and borrowings - Secured and unsecured bank loans 12 – (3,165,197) (3,165,197) - Medium term notes 12 – (375,805) (375,805) – (375,805) – (375,805) - Convertible bonds – liability component 12 – (28,286) (28,286) Trade and other payables(2) 13 – (574,101) (574,101) Security deposits 13 – (61,939) (61,939) – – (60,171) (60,171) Lease liabilities 27 – (192,171) (192,171) – (4,397,499) (4,397,499) 31 December 2024 Financial assets not measured at fair value Loans to joint ventures 7 160,094 – 160,094 Trade and other receivables(1) 9 316,599 – 316,599 Cash and cash equivalents 11 107,020 – 107,020 583,713 – 583,713 Financial liabilities not measured at fair value Loans and borrowings - Secured and unsecured bank loans 12 – (3,100,637) (3,100,637) - Medium term notes 12 – (77,632) (77,632) – (77,632) – (77,632) - Convertible bonds – liability component 12 – (21,128) (21,128) Trade and other payables(2) 13 – (588,400) (588,400) Security deposits 13 – (61,590) (61,590) – – (58,018) (58,018) Lease liabilities 27 – (53,222) (53,222) – (3,902,609) (3,902,609) (1) Excludes prepayments (2) Excludes security deposit and advanced rental received OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX 229 228 PERENNIAL HOLDINGS PRIVATE LIMITED ANNUAL REPORT 2025
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