1H 2025 Financial Results Webcast Briefing

Testing one, two, three, four, five. Testing one, two, three, four, five. Can you hear me? You can hear, right? Okay, you can hear. Testing one, two, three, four, five. Testing, testing, testing. Three, four, five. Testing one, two, three, four, five. Test, test, one, two, three, four, five. Ladies and gentlemen, good morning and welcome to SAMCOM Industries' first half 2025 results 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 turned off or switch to the silent mode, please. If you feel unwell, please do approach our staff for assistance. Thank you. The members of the panel for today's presentation are Group CEO, Mr. Wong Kim-in, and Group CFO, Mr. Eugene Cheng. There will be a question and answer session after the presentation. And for viewers of the webcast, please key in your question 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 Kimin to begin the presentation. Kimin, please. Good morning, and thank you very much for joining us today. Before we cover SAMCOP Industries' first half 2025 results and business highlights, me to bring your attention to some external developments.

Now can I have the slide? Yes, thank you. The first, the announcement of liberation day tariffs in April and this has brought about heightened business uncertainties as expected and somewhat tempered customers' expansion plans. For example, we are observing a more cautious stance from several multinational manufacturers in our industrial parks. they assess the impact of the reciprocal tariff announcements. Secondly, there has been a rapid expansion of renewables in China and that has outpaced demand growth. This coupled with the lack in construction of grid infrastructure has led to increased curtailment. The Singapore dollar ironically has also strengthened these or other currencies across the board and this resulted in a negative foreign exchange translation impact on our reported earnings.

Eugene will share more in his presentation later. Let me now bring you through the key highlights of our performance in the first half of 2025. Now, amidst the very challenging macro environment, we delivered a resilient performance. For the first half of 2025, turnover was $2.9 billion. Ibita was 834 million. Adjusted Ibita was 1 billion. Net profit before exceptional items and deferred payment note forex loss was 491 million. During the year, we recognized exceptional gains of 140 million, mainly due to the gain on disposal of same environment. However, this was partially offset by a non-cash DPN forex loss of $95 million. As such, reported net profit was $536 million.

Earnings per share before EI and DPN FX change was $0.27 and annualised group return on equity was 17.8%.

The board has approved an interim dividend of $0.09 per share underpinned by the resilience of our earnings.

Contribution from the Gas and Related Services segment was steady in the first half of 2025. This year, there was lower overseas contribution due to the ownership transfer of Pho Mi 3 power plant in Vietnam in March 2024 and an extension of a major inspection for Mingjian IPP in Myanmar. In Singapore, despite the depressed wholesale power market, we leveraged our unique position as an integrated gas and power player to add over 120 MW of power purchase agreements. New customers include a mixture of data centres and commercial and industrial customers. Including these new contracts, over 85% of our gas-fired generation capacity are underpinned by contracts that are five years and above in tenure. In May 2025, we also signed a

suite of gas, power and utilities contracts with ester chemicals and energy with a contract value of over 650 million. In June, we increased our stake in Sanoko energy to 50% from 30% which will deliver earnings growth. We also expect to realise synergies of up to 25 million from portfolio and gas sale optimisation, cost efficiencies and lower refinancing costs. In the first half of 2025, the renewable segment saw stronger performance, with profitability increasing 27% year-on-year. This was due to better wind resource in India, as well as contributions from new operational projects. Compared to the first half of 2024, our installed renewables capacity increased by 3.8 gigawatts to 13.8 gigawatts. Some of the new operational

capacity includes the landmark 500-megawatt solar MANA2 project in Oman and the first large-scale 400-megawatt solar project in Rajasthan, India. Our gross renewables capacity is now at 18.9 gigawatts of which 5.1 gigawatts are secured or under construction. We continue to gain good traction in India securing our second hybrid solar and BSS project and our first round-the-clock power project. We also signed a 25 year PPA with a subsidiary of META platforms for 150 megawatt peak floating solar at at Kranji Reservoir Singapore. This will be Singapore's largest floating solar project to date. Earlier we spoke about the higher curtailment in China. There's also the uncertainty associated with pricing reforms.

As a result, we have been very, very selective in evaluating new projects in China. This chart shows the size as far as the number of deals in China, And it has been declining starting from two years ago. So if you look at the chart, we started with 0.7 gigawatts of capacity, right, and then rising by 3.7, rising by 3. And in 2024, across four transactions, we added 1.1 gigawatts. This year, there were only three transactions adding only 0.8. Total is about 9.4. Renewable China contributes about 10% to our entire earnings space. So the impact, let's say if there was curtailment that will hit you by 10%,

it will actually only translate into 1% to group earnings. So I just want to put into perspective what this means. What we are acknowledging is that there are hit-wins in terms of curtailment and some of that can be near term because the transmission capacity might come in to ease the curtailment. Some of it might be longer term depending on where they are located. And then there is also pricing reforms and because of that we have been very, very careful and this chart shows you that as early as two years ago we have already started exercising very strong discipline and being very selective. Now, our new investments are in net import regions. You know, so in other words, those in 2025, you know, they're all in net import regions and we also require a higher return spread above our hurdle rate. So across the years, actually, something that we do not disclose publicly, but you know, across 2022, 23, 24, 25,

In each one of these years, the spread above hurdle rate for the deals that are done have always been increasing. So right now, the deals in 2025, we are asking for actually very healthy returns that creates a very significant buffer above our hurdle. So just to pin you the picture that there is hate win in China. It forms actually not a very big portion of our earnings space, and we are exercising a lot of caution in terms of extracting value and also future investments. We will continue to take a disciplined approach, as I mentioned, as we monitor the impact of regulatory reforms as well as market developments. This is India. Our renewables capacity in India has grown from 2.1 gigawatts in 2020 to 6.6 gigawatts currently. at a compounded annual growth rate of 28%.

The new projects secured are across technologies. We have also been awarded hybrid and round-the-clock projects comprising wind, solar, battery, energy storage systems. So we now have 3.3 gigawatts of gross in stock capacity with an additional 3.3 gigawatts that are secured or under construction. The projects are expected to be commissioned from 2026 to 2028, providing strong earnings visibility. With a sizeable fleet of operating assets and paired with a strong pipeline of growth projects, we have achieved meaningful scale in India. This puts us in a good position to explore capital recycling initiatives to fund future growth as far as to drive value extraction for our portfolio in India. The integrated urban solutions segment

showed steady performance on higher land sales and operational efficiency gains in the water business. The urban business registered stable demand in Vietnam and stronger land sales in Indonesia. During the year, we were awarded two new Vietnam-Singapore industrial parks projects, bringing the total to 20 parks. The new VSIPs, VSIP Nam-Ding and VSIP Nai-Anh-3 will be developed as low carbon industrial parks and complement our current 18 BSIPs. We now have a leaseable portfolio of industrial properties in Vietnam totalling 134,000 square metres with an occupancy of 84% as at the end of June 2025. Since then, we have signed more leases bringing total occupancy to 91%. Following ahead, we have a strong pipeline of land bank to grow our recurring income

with a further 474,000 square metres of leasable industrial area under development. The water business has demonstrated resilience, holding firmly its earnings contribution compared to last year. We continue to explore initiatives to grow and optimise our water operations. Separately, as mentioned just now, the sale of SAM Enviro was completed in March 2025 and we recognize a net gain of 142 million. Still on integrated urban solutions, Vatam, we wish to highlight, is emerging as a prime destination for data centers due to its seamless connectivity to Singapore. It is linked to Singapore, as well as other Southeast Asia countries through multiple submarine cables and fiber optic networks. Vatam submarine cable infrastructure is set to strengthen further with the Nongsa Changi Cable and the Inseka INSICA Cable