1H 2024 Financial Results Webcast Briefing

Ladies and gentlemen, good morning and welcome to SAMCOP Industries first half 2024 results and urban strategy presentation. A warm welcome to viewers tuning in via the webcast. I'm Sin Jin from Group Corporate Communications and Investor Relations. Before we begin, we would like to request for all mobile phones to be switched to the silent mode, please. And if you feel unwell, do approach our staff for assistance. The members of today's panel are Mr. Wong Kim-in, Group President and CEO, and Mr. Eugene Chang, Group CFO. They will be presenting on our first half results following which Mr. Lee Ah Boon, CEO of Urban, will then give Urban Strategy update. There will be a question and answer session after the presentations. For viewers of the webcast, please key in your questions in the Q&A box by clicking on the raise hand icon on the webcast page. Without further delay, I will now hand over the time to Kim Min to begin the presentation. Kim Min, please.

Good morning. Thank you for joining us today. Let me bring you to Samco Industries' first half, 2024, results and business highlights. For the first half of 2024, turnover was $3.2 billion. EBITDA was $889 million and adjusted EBITDA was $1 billion. Net profit before exceptional items for the first half of 2024 was $532 million, including exceptional items, EI for short. Net profit was $540 million. Compared to first half of 2023, the lower profitability was due to the planned major maintenance for one of our Singapore gas-fired power plants. During the full year results briefing in February 2024, we had guided that the maintenance would have an estimated net profit impact of between $60 million to $70 million.

We were able to reduce the financial impact through our efforts to shorten the maintenance period. We were also able to optimize our portfolio, reducing the impact from lower pool prices. Eugene will share more details in his presentation later. Earnings per share before EI was $0.29.9, while EPS was $0.30. Group return on equity before EI and group ROE on an annualised basis were both at 21%. In light of the group's robust performance, the board is proposing an interim dividend of $0.06 and this is an increase from the $0.05 last year. Let me bring you through now the key highlights of our business segments. First, the guest and related services segment. segment delivered robust results in the first half of 2024 despite the planned

maintenance of our Singapore co-generation plant. We were able to successfully shorten the maintenance period, reducing the financial impact to the portfolio. There were also concerns on lower wholesale prices impacting the Singapore market with the implementation of temporary price caps from July last year. And despite the lower wholesale prices, we were able to leverage our unique position as an integrated gas and power player and with our strong customer base to optimize our commercial position. This set of results validates our strategy to contract our portfolio long term. So as at the end of 30th June 2024, almost all of the group's gas fired generation capacity is contracted, half of which is contracted for more than 10 years.

With more than 80% of our guest and related services net profit now contracted, this is an increase from 50% a year ago. Our portfolio is now increasingly insulated from merchant market volatility. In the first half of 2024, we signed long-term power purchase agreements with Equinix and and GSK. Both power purchase agreements have a green element, either in terms of renewable energy or renewable certificates to support our customers in their decarbonisation journey. This is in addition to the long-term PPAs we have signed in 2023 with companies including Micron, Singtel and SD Telemedia. With these contracts, more than 75% of Singapore's capacity is contracted to the energy intensive industries such as high-tech manufacturing companies and data centres. Today, we are also the leading power provider to the data centre

sector in Singapore, capturing a third of the power capacity market share. With demand from corporate customers including data centres expected to be strong, we will build on our portfolio to further ensure earnings resilience. In the first half of 2024, our renewables earnings were impacted by lower demand in China as a result of weaker economic conditions which affected power demand. While there are temporary hit-wins due to the macroeconomy, in the longer term, substantial investment and strong government support will continue to drive growth in the sector across these key renewables markets. In China, our diversified portfolio across resource and location also mitigates the impact. We will continue to be selective to invest in good quality projects which are near load

centres and where there are net importers of renewable power, and this is helping to mitigate curtailment risk. In India, we secured 1 GW of pipeline from the SAKI and SJVN government tenders at higher terrace. So together with potential brownfield acquisitions, we are well positioned to write this wave and growth that is prevalent in India today. We also marked our entry into utility-scale solar development in Indonesia, with the construction of an integrated 50 MW solar and 40 MW hours energy storage in Nusantara. The project is backed by a 25-year power purchase agreement with PTPLN-Pasero, the state-owned utility provider. And as said, 30th of June 2024, including a 49 MW acquisition pending completion, we have

met our 2025 gross installed renewables capacity target of 10 GW, well ahead of time. We are confident of our long-term growth and remain focused on achieving our target of 25 GW of gross installed renewable capacity by 2028. The integrated urban solutions segment performed well in the first half and is largely contributed by the urban business. Our urban portfolio recorded healthy land sales during the first half of 2024. A net profit contribution from the urban business more than doubled in the first half of 2024 compared to the first half of 2023. In May 2024, we strengthened our Vietnam-Singapore industrial park portfolio to 18 industrial parks with the addition of three new investment licenses. We now have a total licensed land area of over 11,000 hectares in the country.

We will continue to leverage the group's expertise in renewable energy and decarbonisation solutions to enhance our offerings to develop low-carbon industrial parks. Mr Liat-Woon, our CEO of Urban, will be sharing in more details after Eugene's presentation of his strategic plan. I will now hand over to Eugene to go through more details in the financials. Thank you. Thanks, Gui Min. As I take us through our financial performance for the first half, it is quite important to note that this set of financials has showed resiliency in our portfolio, particularly in a guest and related segment. And as I take us through our highlight, there are some of those elements. Now, looking at this slide, which gives the overall view of our first half-24 financials, turnover decline, right, by about 12 percent, and it's largely driven by the gas and related segment. Now, we did see lower, you know, in general gas offtake and also some of our gas sale

prices. But more importantly, also from an electricity sales standpoint, last year we did benefit from a, you know, a pretty high spot environment, particularly in Q2 of 2023, which was not present currently, and also for the simple fact that we are a lot more contracted coming into the first half of 2024 following our efforts to contract the portfolio in the second half of 2023. Now, we also saw lower prices and demand in the UK, which brought about lower performance for our UK gas and related services segment. And in general, also our Singapore operations were affected by the planned maintenance that we talked about that we highlighted at the start of the year. From an EBITDA perspective, our EBITDA also a decline for similar reasons as I've highlighted before. And as I mentioned earlier on when I talked to the net profit performance, I will highlight

how our contracted positions have allowed us to optimize opportunities. of results associates and JV's net of tax increased by 5%. And as Kim Min has highlighted, a lot of this is a result of a stronger first half 2024 performance by Urban, which saw us completing and capturing land sales that were delayed from the second half of 2023. And all in all, that resulted in a net profit before exceptional items of 532 million compared to 602 million last year, and for us, realizing a analyzed group ROE before exceptional items of 21 percent compared to 26.6 percent last year. Now, in terms of group turnover, as we, you know, a lot of the highlights I've talked about earlier on, the gas and related services saw the decline in turnover as a result of for the reasons that I've mentioned earlier on.