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

expected to be operational in 2025 and 2026 respectively. So in June, we signed a letter of affirmation with Panbil Group to collaborate on low carbon industrial parks in the Batam, Bintan and Karimon region. Together with Panbil, we will jointly develop the Tambisi Innovation District, a 100-hectare low-carbon industrial park in Bataan. The embassy is well-positioned to capture growing demand for data centers and other industries, and this leverages our capabilities to provide power, low-carbon energy solutions, and water management that are all essential for the customer's operations. Now, moving on to decarbonization solutions. We are in exclusive discussions for the import of low-carbon power from Sarawak to Singapore. And we have also signed a preferred supplier agreement with cable supplier Prismian for subsea cable design.

We also formed a joint venture with Bharat Petroleum Corporation Limited, BPCL of India, to explore renewable energy, green hydrogen and green ammonia projects in India. GoNet Zero continues to strengthen its capabilities for long-term growth. The business has expanded its regional reach and strengthened its platform integration. We will continue to calibrate our investments in this segment in accordance with market conditions. We will have Eugene now take you through the financials. Thank you. Thank you, Kim. I hope you all don't mind my somewhat raspy voice. And because of that, I will try to hit the salient points in relation to the financial portion of the presentation. I think if you look at the overall financials, both our turnover and EBITDA declined slightly, 8% at the turnover level and about 6%

on the EBITDA level. And the decline in the turnover is largely attributed to our gas and related services where we saw lower in general prices. And also we had the absence of a contribution from our same and viral business which was completed, the sale was completed in March of this year. Now this was partially offset obviously by, well we did see higher gas sales in terms of volumes, as well as a new capacity additions for acquisitions and acquisitions in the renewables segment. I'll talk about this in a little more detail when we look at the net profit. Now in terms of our increases in our associates and JVs, it is largely a result of a contribution of our Sonoko Energy acquisition of which 30% contributed for the full six months and an additional 20% contributed for two weeks in a month of June. I think in addition to that, the underlying business performance contributed by Urban was

also stable. Now all this brings about an adjusted EBITDA record which is a flat compared to last year. And when we look at our net profit before exceptional items and our DPNFX, we did 491, which is slightly higher than last year, or largely flat. Now in terms of our DPNFX, which is, you know, as we all know, it is simply the mark to market of whatever the balance sheet balance in local currency is relative to the prevailing Indian rupee to Singapore dollar exchange rate on that time. So comparing the exchange rate with what was used to mark that same balance at the end of 31st December, there was a depreciation of the Indian rupee and that has resulted in a $95 million FX mark-to-market downside compared to a $46 million gain in the previous year. The exceptional item of $140 million, that is the gain from the sale of the same environmental

and that brings us to a net profit of 536 compared to 543 last year. As I said, Kim Min has talked about the high level points earlier on, where EPS before exceptional items and the DPNFX was about 27.6 cents, and ROE of 17.8 percent or around 18 percent. Now this slide is largely talking about the group turnover, so a lot, most of the points have been covered in the previous slide, So I'll just move on to the next slide, which talks about the Group Net profit. Now from the gas and related services, we did see a fairly steady profit declining by about 9 million a year on year. Now we did see a significant positive contribution from Sanoko, but it is offset by several factors. Firstly, in 2024 earnings, there were one off-at-hill gas as well as upstream gas curtailment earnings of about 25 to 30 million that weren't present in the first half of 2025.

In addition, FUMI 3 also contributed a little bit in the first half of 2024, and FUMI 3's contributions obviously not yet having the concession returned last year. I think in addition to that, we also saw a couple of other factors. Number one, we did see some renewables of the shorter term, zero to five years contract, approximately about 100 megawatts of that or close to 10% of the generation capacity at lower spreads. So I think if you recall, these shorter term contracts are now renewed in a USAP environment that is significantly lower than the highs of when they were contracted, that is 2022 and 2023. So taking that into account and given the performance of the gas related services business, we do show significant resilience, especially when you look at the broader performance of other

Singapore payers. Also impacting our earnings is that we have imported higher priced Malaysian renewable imports that were signed in December of 2024, but this is not expected to persist for long term as announced in December of 2024. It's a two-year contract. So the combination of these factors was offsetting strong combination from Sunoco. The renewable segment delivered 27% growth in net profit and as Kim Min has highlighted earlier on, the higher profitability is really brought about by full half contribution by a project that a commission, you know, midway through the second half of last year, and a lot of it is in the fourth quarter of last year. And also, you know, we saw face commissioning of our Rajasthan Solar Project in India. Now we also saw higher wind in India, which contributed to a positive to the renewables

net profit. Now, but not conversely, we did see some of that growth offset by higher curtailment in China, as Kim Minh has highlighted. Now, when we look at integrated urban solutions, we see stable performance. Vietnam continued to be stable relative to last year. Indonesia did see a stronger performance as well compared to last year. Our water business in the segment saw a slightly positive improvement as well, about two million, as a result of a cost optimization. So, you know, some of you may be asking how much did Samways contribute to the integrated urban solutions? In the first half of 2024, Samways contributed nine million. And in the first half of 2024, Samways contributed 11 million. So if you remove the effects of Samways, you would see that the IUS segment has performed stably. In our decarbonization solution segment, we saw slight increase in the cost to 13 million.

That is a result of us scaling the development activities as a community as highlighted in the earlier slide. In terms of other businesses, we saw an increase of 2 million, 21 million relative to 19 million. The improvement in the net profit really came through our centralized, SAMCCOP specialized a business which continue to see a strong order book that is coming through from a government-related customer. In terms of corporate costs, it remained flat against last year. At the corporate level interest cost, we saw a reduction of close to 10%. That is because we saw a lowest interest rate and we were able to refinance some of our debt, a corporate level debt, in the first half of this year. We were also able to issue longer dated bonds at more competitive interest costs. In terms of our other corporate level cost, we are at $46 million this year compared to

$38 million last year. And it is largely commensurate because in last year's $38 million, there was a $9 million ECL reversal as a result of receiving dividends from our coal plant, Sonja, which no longer exists in the same crop after its disposal was completed in December of 2024. The DPN income that we – before the effects of the FX market of the balances on the balance sheet was $65 billion compared to $82 million. As guided before, we will expect our DPN income to continue to reduce and to come down simply because we will be collecting the principal through the repayment from cash flows. And to date, in total, since we have completed a transaction, we have collected 928 million in cash flows via the DPN. And then we have talked about the DPN FX gain loss, as well as the exceptional items in the earlier slide.

If we move on to the next slide. Now, this is a slide where I would just want to indicate a macro development in the market that has impacted us. I think in the first half of this year, particularly after Liberation Day, as you can see in all the, you know, cross-cut the SING dollar versus, you know, our key overseas earnings currencies exposure, quite evidently the SING dollar, you know, appreciated against, you know, all our key currencies. In fact, against most major currencies. So when we look at the currency effect where we saw our overseas currencies, local currencies depreciate anywhere between 2% to 6% against the Sink dollar, that has brought about a $23 million of earnings translation impact. Now this impact I'm calling it out because it's not something that you see in the P&L itself because the P&L capture transaction realize and unrealize gains or losses which

is remain stable because of we hedge those. Now this is really a translation effect of which it cannot be hedged. So it is important for us to call it out because in the absence of this effects effect without the impact of the 23 million which came comes about from the translation, our earnings half on half would have seen a 5 to 6% increase in state. So this is something to take note and something to note for the second half of the year. Now you move to the next slide. Now this slide is really to emphasize the defensiveness of our earnings as well as collect cash flows of our business portfolio. Now it's instructive to note that 88% of our group net profit as well as the cash flows comes from investment in great markets. And this contributes to very defensive earnings to SAMCOM with Singapore contributing to half of the group net profit. And this defensive nature of our business

and cash flows which you will see in the subsequent slide will underpin our stable dividend with a potential for growth going forward. Now, I will not talk about the net profit bridge because most of the elements were already discussed earlier. But if we move to the next slide. In terms of our first half, you know, capital deployment outcome, in the first half in total between capital expenditures spending as well as equity investment, we deployed a total of 567 million. This is a reduction compared to a 1 billion over the same period last year. The bulk of the, you know, capital deployment, you know, it's in renewables as we continue to execute the pipeline and also in the gas and related services as we continue to work to complete with the target of commissioning of CCP4, which is our H class, which will come online sometime in the 2026. Now, if we move to the next slide, in terms of our group free cash flows, it remains strong.

Cash flow from operating activities was 672 million compared to 507 million last year. And taking into account of our divestments, the dividends as well as interest income, our DPN receipts, and netting away investments in cash packs and adding back the nature of the cash packs that is of a growth perspective. Our free cash flow, which is available for both debt repayment, funding a new growth and the dividends, stands at 1.3 billion compared to 927 million last year. granted in the 1.3 billion of a free cash flow it does capture the net cash inflow of about 383 million from the sale of Sam Enviro but adjusting from that for that our free cash flow for the first half of 2025 is still commensurate with first half of 2024 at 930 million so showing the resiliency of our cash flow generation. And so from a group borrowings and balance

balance sheet standpoint. In the first half of this year, we saw the leveraging of the balance sheet. Our net debt reduced by slightly over $400 million, from $7.8 billion to just under $7.4 billion. And in a comments rate fashion, you see our leverage ratios improve as well. More of interest will be our net debt to adjust the EBITDA coming down from 3.8 times to 3.6 times. Now one point to note is that our total equity did reduce slightly, and this is a result of a foreign currency translation reserve because as I mentioned earlier on the Singh dollar strengthened against all our overseas currencies. So that resulted in a $330 million impact against equity translation. But in spite of that, even when you look at the net debt equity perspective, the ratio improved from 1.36 times as of December 31, 2024 to 1.34 times as of June this year.

So when we look at our group debt profile, you know, compared, as mentioned earlier on, we continue to focus at, you know, pushing out our maturities. I think if you look at our debt maturity profile right now, the bulk of our debt has been pushed on immaturity after five years. In terms of the source of borrowing, it remains very balanced across green and sustainability-linked borrowings, corporate debt as well as project finance debt. We remain hatched at close to 81% fixed rate against 19% of floating. Our weighted average cost of debt also as a result of the interest savings at the corporate level came down from 4.6% to 4.5%. Part of it, it's helped by the strong outcome of our 20 and a half year long-term bond issuance at 3.55%. Our weighted average debt maturity declined slightly

from 5.1 years to 4.9 years. This is a result of continued debt amortization as well, you know, resulting in a reduction in our net debt. From a liquidity standpoint, we remain having a significant amount of committed on-demand liquidity. While you see many numbers on the slide, it is important to note that the combination of our cash and cash equivalents as of 30 June 2025 and our unutilized committed facilities stand at 3.5 billion. So we still have a 3.5 billion on-demand liquidity that we could readily draw on to deploy for growth. So I would complete this you know by talking about our outlook. Our outlook essentially we're saying that we show a strong and resilient performance in the first half of 2025 in spite of the macro uncertainties right. Our contribution from the gas and related services segment was steady despite having seeing

a lower wholesale prices in the Singapore market and also not having you know the contribution from Phu Mi 3 in Vietnam. And a lot of this resiliency was also supported by the contribution from a Senoko Energy. Our renewable segment saw stronger performance in India, and also general, the commissioning of projects. This is offset by lower earnings in China, and our integrated urban solution saw steady performance with higher urban land sales and also operational efficiency gains in the water business, as I mentioned earlier on. and this is of course offset by lower SAM and viral contribution given our divestment in March of 2025. Now looking towards into the second half, we do expect our gas and related services segment earnings to remain resilient despite the lower spreads of some of the contracts renewed since the second half of 2024. Now in the UK, we could face the possibility of some customer demand reduction as a result of the closure of the Sebbuk-Atlin Cracker facility in Wilton.

Now, the earnings for the renewable segment is expected typically, like seasonally, to be lower in the second half of the year, and also a possibility of a higher curtailment and lower tariffs in China compared to 2024. But this is expected to be offset by new project contributions. Now, for the integrated urban solutions segment, we expect to be stable. in the second half of 2025, of course excluding the contributions from the divested SAM and Viro in the first half of 2025. But we do remain watchful of any potential impact on our land sales in Vietnam, particularly with arising from the economic implications of the trade tariffs. So we continue to monitor the macroeconomic developments, including shifts in any of the investment sentiments, and particularly in relation to the strengthening of the Singapore dollar against our major currencies, which will ultimately impact our reported business performance. But we just want to highlight this.

The defense-siveness of our portfolio will continue to underpin the resilience of our earnings and also the cash flows, as you can see, back by a strengthening balance sheet. So we expect to maintain a sustainable dividend payout in 2024 that is commensurate with our underlying earnings and in line with our dividend policies. So the group remains, we remain committed to capturing market opportunities and to build of resilience in our business and also creating long-term value in our sustainable energy transition strategy. So that ends my presentation and we are open for Q&A. Sorry if you didn't find my voice particularly soothing. Before we go to Q&A, I just want to, Eugene has taken you through the recent developments. You see that the balance sheet actually has deleveraged. actually and we have the casual profile you know has been very strong all right so that has given us the confidence to say you know the underlying portfolio is very defensive and very resilient and that's why the board say you know let's

increase the dividend by 50% 2024 first half was six cents this season is nine sense. Of course the full year in 2024 was $0.23, looking at the trajectory, frankly we are actually very, very confident that that level could well be maintained. So that's the first point and again underpinned by the strong portfolio and the balance sheet. And the other part of it is I want to draw your attention back into part of my presentation where we talk about each of the business segments, right? They all come with some near term upsides that is within our reach. So in the guest and related services, Senoko synergies, those things are well within our reach. You know, we can do refinancing, we are already actively integrating the trading operations, the operating portfolio and so on.

of the things that we spoke about in the past now is in motion. That's within our reach. Then in the case of renewables, we're talking about capital recycling. Five years ago when I came to this company, you asked me about capital recycling, I said, look, I've got nothing to recycle. But today it is mature. 3.3 gigawatts of operating assets, 3.3 gigawatts of secure or under construction growth. Such a portfolio, if you compare to the other listed portfolios in India, you will be able to see the quality of it. And we are not even including in that narrative the whatever pipeline that other companies tend to sell. If we throw that in, there will be 10 gigs easily. So it is in the market conditions seems to be conducive, right, but market conditions changes every day, right. Until two days ago, we thought India was 25% tariff and then suddenly became 50.

So how is it going to impact the market sentiment? This one is something that we have to watch. But on our part, the portfolio is ready. The portfolio is mature, the portfolio is attractive, right. So that's within our reach. So that's renewables. And then when it comes to integrated urban solutions, we show you some near term catalysts. Literally within our reach. This is just 50 kilometers away, you know, and the fiber cables are being built by people at Singtel. So those are not going away. The moment the fibers are built, you will see the data centers and you will see the demand. And we have a project, we have a partner, we have land that is, you know, approved and ready to sell. So, they are near term catalysts, strong dividend, strong balance sheet, so it's a safe bet with some upsides. In the current environment, I would like to think that we are actually very attractive. The other thing about the Sink dollar, we in

Eugene is CFO, right, so he always wanting to first tell you the bad news. Yes, when translates back into Singapore dollars our earnings overseas earnings becomes smaller in Sing dollar terms but this is also then the season we have a strong Sing dollar to go out there to do shopping right so a strong balance sheet strong cash flow strong Sing dollar this is a shopping season anyway I'm I can't tell you a lot about what is being cooked but there are opportunities out there and we are very well positioned to capture some of those opportunities so I So I just want to put things into perspective, despite the formality of having to read through all the results and all that to you. But I think putting that into perspective is a safe bet with dividend, confidence, and it comes with near-term upsides that you can, well-within reach, and also longer-term upsides

when it comes to potential acquisition opportunities. So those are the things I want to leave you before we launch into Q&A. So Jean, please. Thank you, Kimin and Eugene. We've now come to our Q&A session. Please raise your hand if you have a question and the microphone will be brought over to you. And then please state your name as well as organization. Gentle reminder for those viewers who are on the webcast, you can also key in your questions in the Q&A box by clicking on the raise hand icon on the webcast. So we'll take questions from the floor first. Chihui has the mic already. Thanks. So from my query, I have three questions. If you could just go back into slide 16, where you have the net profit for the various segments shown. Yeah, thank you. 15. So if you look at first half 24, that had the downside of a maintenance shutdown, which had a $50 million contribution.

So if you were to add that back and net out the, one of gas sales that you said will happen in 1st of 24, you're looking at about a 365 million baseline number. Now in 1st of 25, you had a benefit of Sanoko. It's maybe you say 30 mil. So you're looking at a delta of 300 mil in 1st of 25 versus 365 mil in 1st of 24. How much of that difference can be explained away by the re-contracting of the lower SPARK spreads, the higher import costs, and then your resilient guest earnings. So, I will put it this way, right? When we take away the effects that you talk about, right? Which is essentially a contribution of a Sanoko in the first half of 2025. And also the one-off effects, And then when we adjusted back the MI effects in the first half of 2024,

like for like from the first half of 2024 coming in the first half of 2025, our Singapore effects of the combination of the expensive electricity that we brought in from Malaysia, as well as the re-contracting of that, roughly 10% of the portfolio, saw a like for like decline of about 10%, just over 10%. Now, I think it is important to recognize the resiliency of on a like for like basis, in like of the environment, in fact of the macro environment. I think you would, well, if you look at the other market players in the same period, you will be able to see what the impact are. And then also, when these re-contracting, after 10% of the portfolio that took place, these are contracts that were signed in 2022, 2023.

So although year on year basis, half comparing first half of this year with first half of last year, you set drop close to 40%. But when you compare that to average of contracts that were signed in 2023, 2024, You said actually drop close to 60%. Whereas on a like for like perspective, I was saying a portfolio drop just over 10%. So I think that shows the resilience of our contracting strategy. So instead of going to the details of those, but just to characterize it that way for you. Sure. If I may also, the way I think about it, I mean, it's much more quant. But two-third, one-third. Only one-third is the effect of the re-contracting. The one-time things, non-recurring things, are about two-third, the effect. If I had to think about it that way, right? So Sanoko acquisition is, of course,

you buy an asset that has recurring earnings. Then some of the one-time things. Today, if you ask me, I wish we never the import deal in Malaysia. But you know it weighs us down for a couple of years but I think it you know it's a there are also certain good things coming out of it because it allows us then to be we are the only ones right so so you pay the price but you then be in the best position to then understand where your customer is who they are how much they need how much they're willing to pay so now we have a very very clear idea what can be sold and what cannot be sold so that I think what's well for us in the future. So it's a little bit of tuition fee but it's okay. The good thing is it doesn't recur. Thank you. I appreciate it. One follow-up on the first question. I believe the Delta it describes about 20%. If I understood you've described about 10% of the Delta, so what's the remaining 10% due to? 20%. So 365 to 300 is about 20%.

and 18% of you want to be precise. I think you're looking at the whole of the gas and related services segment now. So what I was describing was more Singapore-like for like, so the other elements was obviously FUMI III as well. Okay. Yeah, so FUMI III contributed still in the first half of 2024 and it doesn't contribute anymore now. Ming-jen is here, right? Ming-jen we saw slightly longer MI impacted a little bit of our first half earnings this year. Okay, understood. Thank you. Second question, and then I'll just go in the third question as well. You mentioned that the Singapore plants were of a maintenance of about five weeks in second half of 25. You said limited impact. However, if we were to think about the maintenance last year, which was 60 days and 50 million impact, why do you say limited impact? Should I go in the third question first?

No, we can talk about this one first. I think the difference is that for this particular one, we were able to obtain the necessary CFDs as well as their tolls, also supported by a Sanoko, some of the tobacco units in Sanoko, and as a result, we don't have the same impact as the MI last year, where we have to purchase the CFDs at a slightly higher cost. Got it, thank you. Last question is on Vietnam, renewables. How do we think about the probabilities, likelihoods or outcomes if negotiations don't go the way you want? I believe your tariffs versus the ones that the government is proposing is lower by 30, 40%. So if the worst case happens, how do we think about that at the end of Nixxers for your briefing?

First, it is relative, right? It cuts across the whole industry. The latest that we hear from Vietnam is that it is actually, they have already heard the voices and they will come up with a solution that is much more calibrated, much more. So the likelihood of the worst happening is not very big. Then second thing is that if it does happen, Vietnam represent a very small part of the portfolio. So in fact, I drew your attention earlier to the China settlement and where the industry is because that's 10% of our earnings base. But even then, because of the diversification, we think we don't like it, but it will be something that we can deal with compensating and offsetting from other markets. Vietnam is actually very, very small. So I wouldn't be worried about that at this stage.

Alex, you want to comment on that? Is there anything that's out there in the public domain that you can talk about? Alex looks after the global east, so all China, South Asia. I agree with Kim Minh. I mean, based on the discussions that we had with various government agencies in Vietnam, as well as the intelligence that we get through the grapevine, I think the final outcome is going to be a little bit more benign than what some people were expecting a couple of months ago. So I think some good traction. Thank you. Thank you. Next, Rahul. Thank you. Rahul, thank you. I'm Rahul Bhatia from HSBC. Two questions. First, going back to Singapore power market, can you help us with some insights on how you're thinking about Singapore gas market

or your assets leading up to the new 600 megawatt plant? Today you have bit more than 700 megawatt of contracted capacity. Assuming spreads remain where they are today, are you thinking of adding more PPS or thinking about retiring some old plants? And interestingly, from disclosed data versus 2024, it appears that your contracted capacity in Singapore has actually reduced by 20 megawatt. Is it more because of you're not, because the current available spreads mean that you're not adding more PPS or re-contracting the existing ones? Or it's just that the competition is too high? That's my first question. What do you want to ask, Chapp? Now to answer the second question, our contracted position actually went up. So I've always said that our net generation capacity is about 900, so then with the addition

of the recently announced PPAs that Kim Min has talked about earlier on, 120 megawatts. So I think in general, our base generation capacity with the contracts has gone up to about 960. So actually it has increased slightly. Now in terms of the general Singapore power market. I was going to ask Jeff Kang to comment a little bit in terms of the strategy and specifically how, I think this is an opportunity to talk about how we would do the integration or that's probably not the right word to use, but how we work together with Sanoko to manage the portfolio moving forward. Because there's a significant difference. We're talking about 2000 megawatt portfolio, double the size of what we had and now with opportunity to work with them. So that's why back to Tzu-Eze question just now, the ... was it Tzu-Eze question?

We are able to ... the MI impact as opposed to earlier when you don't have generating capacity, you're just forced to go to the market and the other guys are all watching you, you're just going to get not a very good deal, but now we have leverage. So how do we do that in the whole thing? But the numbers that Rahul was talking about just now, maybe we have to take it offline to reconcile a little bit how you added up the numbers that he can conclude that actually it's the world. Actually, we believe it is higher. Maybe we reconcile it offline. Thanks, Kimmin and Rahul. I think with Sunoko coming in, especially 50% in June, it gives us a really different perspective of running the assets. When we were 30%, we were still two companies, but with 50% itself, we got approval to actually look at it as a whole. So maybe starting off with contracting first.

So from contracting in the past, you have Senoko, you have Samco. As you know, Samco has a lot more experience in doing long-term contracts because of all the rest of the things that we have, the green energy, the customer link, and all those things. So we are actually doing more contracting, or trying to get more contracts on a long-term basis. And we do not need to just worry about what SAMCOP has as a power plant, but as a whole, SAMCOP and Sudoku have as a whole assets. Give me a strike. In the past, when we are alone, we are very, very worried to contract too high because if we trip, the market will watch this exposure and really sometimes the wholesale price will go crazy. With the bigger portfolio itself, we would definitely chase more contracts because then we can actually spread out against more assets that we have. So for contracting point of view, we'll go longer and we'll go more. From assets optimization, it's also quite interesting because in the past when we were running assets,

both sites need to protect the assets. So both will run in a sub-optimal manner, usually what we call minimums developed. Why? Because if you trip, you can actually respond to your plan quite quickly. With the combination itself, we can then look at all the contracts, the hit rate on all our machines that we are available from Semicop and Synoco, and actually optimize the hit rate as much as possible, which means some units may not be running, and we will push the other units to run as hard as possible. So increasing the spread subsequently. So I think with Synoco, it's not just an acquisition, but really it's a combination of activities that we are looking at, from contracting point of view, from operation optimization point of view, and that gives the synergies that we are all talking about. So I hope I answered your question.

So contracting, so today in the past when we signed a contract, if the plan is down, I'm still going back to Tsubui's question on the update chart. So when the plan is down, then you are unable to fulfill your contractual obligations. You have to go to the market to buy. And because the other jankos also know, for me, the very small market that you are buying because you have to cover your contract position, they have negotiating leverage. But today, with Sanoko next to us, if we contract aggressively and even with an outage unplanned, you know, we can always call upon Sanoko's plan. That caps our exposure. I don't need to, my bargaining power in the market, in a small market, has just, you know, day and night, right? Because they know that if they don't contract with me, I will run the unit, the older unit, the standby unit in Sanoko, which they otherwise not running. So from Sanoko's perspective,

I'm not taking advantage of my partner, right? But it is a win-win for both. They get to run and you need to otherwise not be running and make some revenue. Then we, our contract position is covered without having to go to the market to buy. So simple things like that, there's win-win for everybody. And then even from the customer's perspective, from the regulator perspective, this prevents a spike in the market price due to unplanned event, which reduces volatility, reduces high prices for consumers. So everybody's happy about it. So all these are things that just one example of what we can do when we work together with Sanoko, which thinks that otherwise in the past, we don't have. Now then coming back to what Jeff Kim was talking about, then it allows us to go out there to contract much more aggressively. So this now to Rahul's point. So to the extent the market conditions are conducive,

we're not going to go out there to contract and depress the and have destructive competition with other guys trying to contract. We are the largest guy now. We are the Saudi Arabia in the oligopoly. We need to hold up the margins. So we will be calibrated in how we do. But aggressively, meaning we no longer have to watch our back. We no longer have to worry that we are constrained by my installed capacity of 1,000 megawatts. Now I've got a bigger fleet of plan. I can aggressively go out there and chase out to my customers if they come along and say, one five year at this rate, you know, starting from 2026, are you able to fulfill? No problem, please come and talk. Right. Earlier we were saying, you know, let's go and talk to the operating guy. Is your plan able to, do you have a plan outage in 2027? Now just go out there and sign up, we will be able to cover it one way or another. We have 3000 megawatts at our disposal.

We just add a few more points. Now we have a whole fleet of base slot, older machines and batteries as well. So it's actually very unique positions that we are having a whole range of machines that you can actually optimize. One other thing to add is also we have gas that now not just producing supply gas to our own fleet but also potentially Susanoko as well. So you got a whole activities from gas to power plant, whole fleet of assets that we have from newer plants to older plants and by tree. And the other unique thing for us is also we are into the solar space and the renewable and also the carbonization space. And that's where it helps us to build confidence for energy transition with partners of customers so that can also help Senoko build the pipeline of contracts. So I think we are in quite good, unique position. So let's say if you're trying to import power from a neighboring country, right, and we We want to import green power, if it is solar or whatever.

However reliable, there will still be interruptions from time to time. We can cover the interruption with our own fleet of power plants. We don't need to go out there and back someone else to provide insurance or emergency cover for us. The Sanoko portfolio gives us all that. So today if there's an opportunity to import power from overseas, be it green power or otherwise, we are in a very... no one else even comes close to their ability and their confidence to say that I can just do this without having to... this problem, that problem, the intermittency, emergency backup, we got it all in the portfolio, just in Singapore. So... Rahul, just to clarify your question, your question is why did the more than 10 years decline the percentage? Was that your question?

In the operational data release, we have data 713 megawatt. For 1.0s 2025, 2024, it was around 730 megawatt. for Singapore coaching? In terms of the... The contracted capacity. It just says contracted capacity. Okay, maybe we take this off like that because... Yeah, yeah, I'm sorry. Maybe, maybe, you should... Rahul, sometimes we also don't run the machine and buy back if it's cheaper. So the flexibility is to produce, the flexibility is to buy back and if you buy back, we've got excess gas we also can sell the gas. So the optionality, don't just look at the generation contracting level and sometimes we do some of this. Let's reconcile the numbers of line because we're not reading from the same page. Second question is about on this slide, renewables we have profit growth of 27%. If we take out the contribution from new assets, what are the underlying trends?

If we take out the contribution from the new earnings, the underlying is a slightly down, right, that's the result of the continuing curtailment from China. I assume India would be upright. India is up because we have a higher wind for India. So net India is slightly up, like Southeast Asia is about the same, but then China is down because first half curtailment in China is higher than the first half in 2024. Thank you. I'm warning the paywall from DBS. Just two questions. One is the follow-up on the gas segment. In the slide, it shows that for zero to five-year contract, they're still about 13% possible to share with us what is the renewal, the split like next year, next year for this shorter-term contract.

Yeah. I think in terms of the shorter term contracts for the 13%, as I mentioned earlier on, the good thing is that the higher priced contracts in 2022 and 2023 have all been renewed. In general, in the second half of 2025, we don't see a lot of renewals and we probably see a little bit of a renewal in 2026, probably about 3% or so. But of course, in the Senoko portfolio, we are contracted all the way into 2026. We will also see renewals in the Senoko portfolio, part of it coming through in the second half of 2026. Okay. Secondly, it's on renewable. Of course, you mentioned about the curtailment in China, there's a change in also like maybe our tariff outlook for China in Vietnam renewable so based on our current assessment how should we think about the

maybe the risk of the asset impairment given maybe there's a change in the cash flow projection forward I think the as I mentioned just now for Vietnam based on the latest that we heard, the government is aware the impact if they do something so drastic on all the investors, right? So for investor sentiments, they do rely on foreign investments for growth. We are cautiously optimistic that they would be very calibrated. Yeah, that's China, the outlook on the pricing reforms, because right now it's only implemented in a small part. It hasn't crossed to the other places in which most of the places that we operate in.

So it is a bit hard to tell. The only thing you would, you know, you rely on at the end of the day is the demand supply balance in the region in which you have your plan, in the who is the marginal plan that is setting price and so on, right? And of course it's constantly being updated by the building out of the national power grid. Then because the moment your localised grid, you know that this is a marginal plan, if they bring in a transmission from neighbouring province that has a cheaper option, then suddenly your demand supply balance might shift and then the price setting point might be different. So I guess I see a whole lot of all that, but I'm saying nothing, frankly, because I don't know. So asset impairment, hopefully because of where we are, most of our assets are in the net import regions, in the better demand supply provinces. So we are hoping that we think the impact would be less than what other people

would face. But we do have one or two projects in the north west. Those are you will be seeing that it's quite a stark difference between those and the coastal. And the north west ones, then it's a matter of when the transmission will come in and where is it taking it to and so on. So I can't give you, I really cannot answer that question because I can't tell China is too big. And every time you say that, oh, look, this transmission line versus this transmission line, somebody else will come up with another dimension that comes from the site. I don't want to say blind-signing, but it's big enough. And the dynamic enough in terms of decision-making It's very difficult to predict. So we are watching, I think what we can tell you is to reassure you that we're watching that very closely. And that's why last year, end of last year, we actually made an ECL provision for our China receivables.

So to the extent it is prudent and necessary, we will be making the relevant adjustments and keep you informed. But we are taking actually quite a conservative stance when we look at these things. Relative to, maybe I shouldn't say relative, but it's actually quite a conservative stance. So not answering your question, but I can only tell you that we will take conservative stance, and then we'll let you know as soon as if there is any important developments. But so far, it is more the curtailment that some argue, it is temporary, some argue it is in my last longer. They are debating about how long the demand supply balance will catch up. So it's a matter of how long it is not a matter of permanent.

That's on the curtailment. Pricing reforms, those can be permanent. But like I say, I can't tell. It's different locations, they do it differently. And sometimes even when there's an announced policy, the provincial government would impose their own additional rules, Chinese state drama on the thing. Some are good, some are not. Most of the time not so good. So we will have to look at it case by case. So sorry, could I answer your question? Frankly, I also don't know. Maybe just to clarify one point to add to what Kimin, in Vietnam specifically, okay, the tariff issues is really in the JV, the roughly 100 megawatt of BCG Kaya portfolio.

The JLEX portfolio that we acquired did not face any form of the CCA issue so that one, the tariff is fine. So just to be clear, that is not the entire Vietnam that's facing a terrible issue. Sorry if I may, Silky, because she has been frantically, you couldn't see her, so apologies. Hi, thanks. Got just five questions. Thanks for telling us what's the catalyst in the near term, Kimin. Just looking at your wording that you use for guests, you said that it's resilient. So we can expect that whatever that we have seen in first half this year for gas, specifically for gas, it's not a normal run rate because you will still have to actually consolidate or rather higher percentage contribution from CINA-COE, firstly and also the CEGs and financing that you are working on. So we can't use FASAP as a normal run rate, right, for gas.

Just want to confirm that since you use resilient. Yes, we expect the second half to see obviously 20% coming in for the full half of our contribution and the synergy is something to come in as well. So you're right, it's when we say resilient, the first half doesn't reflect the second half run rate, yes. Okay, thanks. And then just because you call out the same dollar translation that you're 3 million and you say that if you had not had that, your group profit would have been gone up by 5 to 6%. That is separate from your DPN for REX, right? Absolutely separate. So where would this, during 3 million, translate into and like just RE? The reason why I call it out is because it doesn't, from accounting perspective, it doesn't come up. Because the reality is you are looking at your local currency net profit multiplied by your average rate. Sorry, I'm just talking about technical accounting here.

So you're just taking your first half, call it rupee net profit, multiply by the average rate of your first half. And then that would be your translated and consolidated into your single dollar books. So if the average rate is 6% lower than last year, then it simply means that that impact will be in there. But unfortunately, it's not captured in the statements. So I have to call it out so that you would see the impact of that. Of course, the balance sheet translation, you will see it flow through the foreign currency translation itself. So you see the 330 million there. Just still on my second question. So on DPN, so if we assume that the same dollar rate is as if right now, how would actually swing the DPN for REX in second half? for now in the second half if the INR sing dollar doesn't change right then there would then the full year

Loss on the DP and FX would be 95. So in the second half there would be no further impact now if the if in the second half The India rupee appreciates against sing dollar that in the second half there will be a positive Okay, a DP and FX then of course for the full year then you have to add the tuna But if it goes to appreciate some more, then there will be a further negative in the DPNFX. Got it. Thanks. Just on renewable report from Malaysia, Kim Min, you said that that's one off, but the contract is two years. Isn't it recurring? And how do you actually sell if you have imported at high cost? Who would take up? Friend not here, huh? No, yes. One off for two years, okay. So, a short answer. short answer because in other words, it's not something that you can expect to keep on coming and weigh us down forever. How do we sell? You negotiate hard, no? And then at some point,

you know, if people don't want to take, you might have to offload and take some of the losses. So that's the honest truth. But like I say, that's the insurance fee that we pay and then now we know exactly what is the threshold of pain for ourselves, as well as for our customers, for green. And of course green sentiment, season to season, the threshold is a bit different. But it is something that I think, if you ask me, I wish you never do, but having done it, it's something that now we learn something from it. Thanks. So that means in the longer term, you know, we used to talk about the huge area import, so we might stall on that? No, it wouldn't because there are a lot of complications because this one is coming from Malaysia. So then some of the customers are saying, hey, Malaysia Rex compared to Singapore Rex,

Singapore are better. So for us to build up the Singapore, the crunchy that I mentioned just now those are still highly sought after and those continue to support our also our brown our gas business. I'm talking about the future big import from Malaysia that. Yeah, no, so that's why you have to be careful. So the next guy that comes and sells you Malaysia import, you better, you know, make sure that your customer is lined up to buy it. So whether it's Indonesia, whether it's Vietnam, it's something that has to be the greenness of it. There are many sheets, let's put it that way, many sheets of green. Thanks. Just my last two questions on recycling of RE assets. Are we looking at in second half this year and are we looking at recycling the India assets? We are talking specifically India portfolio right? I don't know, because you just mentioned the RE portfolio.

Was it just basically for India that you're looking for monetising? It is mature to consider. That's for India. So is that second half that you're looking at? I think, Shuki, we are evaluating it. So we will let the market know at the right time, obviously. Got it. Thanks. And then also finally on your shopping spree, what's the size that you're looking at and where? Well, we will have to be in the regions that are within our existing span. It won't be in Africa. I can tell you where it won't be. You give me a little eye on me. It won't be in America. It won't be in Africa. Chances are it won't be in Central Asia. I can only tell you that. This is a bit sensitive, I'm sorry. But the... The same dollar is strong. There are good opportunities that are out there

because while our balance sheet, we delivered somewhat and we continue to enjoy from the cash flows, many players out there are actually suffering. Even without interest rates going up, they are suffering. For whatever reason, you can go and dig up, but there are weaknesses. So when the tide recedes, you know, then the people who are left standing, you know, wearing their trousers, you benefit. So, sorry, I can't tell you, right, because I think that you talk to so many players, you will know, like, we won't be something that we can disclose at this stage, but there are enough sizable opportunities. you ask about size, today we are grown into a billion dollar profit company. I won't be touting this if it is not in the 100 million range of additional, right? If it's going

to contribute 10 million, I tell you it's a shopping spree. So for 1 billion become 1.01, you know, I won't be able to face you when it actually happens. That's what you have to be in the 100 million range type things, those are the things that we hope we can get. Thanks, that's very helpful. Sorry. Right, right. Sorry, sorry, sorry. So give me just a question around more portfolio level question over the next few years, correct? If you think about your portfolio now across all geographies, China still has about 20% of your assets while Middle East is in single digit. Do you think that reverses? And if you look at it in terms of capital allocation now, I think UK is still struggling. And in terms of, I think this is a question for,

I think Eugene, in terms of receivables on China, how much is left? I think the final question on Singapore was more in terms of those five to 10 year contracts. Have you started to see incoming from your customers saying to let's sit on the table and renegotiate considering sparks have come down. Thank you. Answer the receivables first. Yeah, just to answer, because that's the easy one, 370 million thing. For China, we are subsidy receivables as you exposed. So, Jin, has it come down second half versus first half or it's gone up? No, it's not. It's gone up slightly. It's gone up slightly. Yeah. So, in terms of the portfolio, because you can see, as I mentioned just now, China, We are being very disciplined and relative to other geographies, you see us doing a lot of India. We are increasingly doing more in the Middle East, right? And Southeast Asia continues to be at the same similar pace. So the portfolio shift will definitely shift given where we are adding things, right?

If indeed we were to do a capital recycling in India, then you will see a one-time dip in the India side of the portfolio. I don't know whether I'm answering your question when you're thinking about it, but I think the directionally, the Asia Pacific area is still where we hunt. Again like I told Shuki just now, you won't see us venturing into Africa, not anytime soon or the Americas. We don't focus on Middle East. Yeah, Middle East. Because there is so much going on there. I thought that is there something that you are really thinking about going forward? We are hunting actively. We have a team. People was here yesterday. He has gone back. Otherwise, I'll get him to speak to you. He is actively chasing quite a few projects that are being chased. Now, having said that, many of those projects are greenfield in nature.

They are big, they are greenfield, so contribution will come only after the construction. So the portfolio shift shifting into Middle East, unless we make sizeable acquisitions, you won't see that in the next year or two. That's the truth, I think, unless there is a major acquisition that allows us to add contribution from the Middle East in the meantime. We think the green field ones are much more visible because those are bids and we've got good partners, we've got good EPC contractors that work with us. Some of those will come through just like MANA in Oman. And we have a very good position in both UAE and Oman, right? And Saudi Arabia, big projects are coming. So without naming names and being specific about it, yes, there will be more in the Middle

East. We will shoot many bullets and then some of them will hit Greenfield, so come a bit later. But we will still be within our 20, because some are renewables, right? Renewables, if you do now, if you win it now, you might see contribution in 2028, 2027. But if this gas fired power, it might take a little bit longer. But those are the big projects are there. So the weight is shifting west in terms of new investments this season. Weight shifting west. I hope that gives them some colour to your question. I think just the last question on Singapore. Singapore, can you remind me? Spark spreads. Spark spreads, renegotiation for short term contracts. Yes, you know as the capacity additions come into the Singapore market, right, this is something that we have always expected.

The short term contracts, Spark spreads will be weaker. I was thinking of the five to ten year contracts. to 10-year contracts. Are they coming to the table and renegotiating them with you and again, saying that time to relook, considering what we signed earlier versus what we want to kind of look at? No. I think the moment they have entered into contracts, at least this environment, people honor their contracts. And the quality of our customers are all good people like DBS and Morgan Stanley. So we don't have, I mean, in some places, in some parts of the world, you know, people will come to you and say, sorry, our times are bad, you know, the contract, the Pake, but not in Singapore. For the same reason, if we sign a bad contract, we have to honour it. And that's why I was, you know, Suki was asking about the Malaysia import, you know, so for two weeks. So we dip our toast into the water and then it was hotter than we thought, so.

But luckily we didn't expose ourselves too much into it. Thank you. In front, in front. Sorry, Rachel. Thank you, though. Thank you for letting me ask a question. My name is Rachel and I am from UBS. My question relates to India renewables. There was a Reuters article out on 1st August saying that there are some 50 gigawatts of of stranded projects, i.e. Tended projects that have been won by yet the same PPAs due to insufficient transmission lines or infrastructure buildup. The article called out SAMCOP specifically as having tended projects that are stranded. Could you comment on that? And on the longer term, given that what we've seen in, for example, Vietnam, how do you intend to mitigate against these kind of things that you're seeing? Okay, first, stranding is if you have invested significantly,

then you are stranded, right? So the way we develop projects in India, we will not make significant commitments until the PPA is signed, that's number one, right? So there's no such concept or stranding. Second thing is that actually, about half the capacity that we have been awarded, so you bid, you win, they give you a letter of award, then they will take a little bit of time to go and sign the PPAs with the downstream, and then they will come back. They meaning the Secchis, then they will come back and then sign the PPAs with us. So about half of capacity already signed PPAs. Then the other half of it, if they were one in competitive tenders, the prices are actually quite competitive. So it is a matter of them being able to sell it down and also some of the cases is waiting for transmission. So then we actually have, it's actually their way around. We have the option now to say, hey, I don't extend. Because I have got land, I've got connectivity, I'm not gonna hold my project for you

if you're not going to come to the table. Because India is a big place, you know? If you cannot sign the PP with me, beyond the deadline, I'll move on, right? So what that means is also then, the what we have actually secured along the way as a portfolio are some connectivity. That means options on land that has got transmission ready so that then if we win the bid, sign the PPA immediately, we can buy equipment and put it onto the land without waiting for transmission. So that land with connectivity is actually our strength. Some seasons ago, sitting here, we were talking about us procuring land as the strategy in India, IPP. That's exactly. Now this land becomes, if we want a bid, we will hold it for them for a while, but beyond that we will actually move on and apply the connected land to some other project that is real. Right? So I want to say first, again, no stranding.

Second, they were all competitively priced and they were one in competitive tenders and because of that the pricing should be quite competitive. And third, we are ready to use the land to build something else if they don't come inside. Thank you. So can I just confirm that when you said that you have no standard access, it means that the article is, to a certain extent, incorrect? Yes. Yes. Thank you. Emphatically, yes. Yes. There's a lot of people who want to sell papers also. Next question, Hong Han. Hi, I'm Hong Han from COS here. I have a few questions. The first is in regards to the impact of the portfolio re-contracted. I understand there's a 10% decline at a gas profit level. As a result, 10% of the portfolio was being re-contracted.

So in other words, 10% re-contraction perhaps translates to a 30 million decline earnings. So the question I have here is that the re-contraction, was it, did it take place beginning of this year, or was it progressively throughout the six months period? No, so the re-contracting, there were two effects, right? One is we have re-contracted these short-term contracts through the second half of last year as well. So you obviously have the impact of those. And then there were some contracts that were also contracted somewhat progressively through the first half of 2025 as well. So it's a combination of these two. contracts that were re-contracted in 2020, second half of 2024, then therefore you see a full half impact of those. And then there were some that were re-contracted in 2025 this year. But if you see the segregation between the two, so more were, the impact came more from those that were re-contracted in the second half of 2024.

Yeah. Sure, so in other words, on a recurring basis, I think the profit decline could have been slightly more than $30 million then, because some of them were re-contracted progressively in the first half of this year? Yes, I think in a full, if you look at a full half perspective, then it'll be slightly more. But then the capacity that was reconstructed in the first half of this year is smaller. So it's not that much more. But sure, Hon Han, the number, I mean, the effect is what Eugene described. But whether or not it's 30, maybe again, we have to look at what you're looking at. I'm not saying that, I'm just saying that it's 30. We won't contract if there is no margin. So what used to be, let's say $50 margin, even if it comes down a lot, let's say at 30, we might still want to contract at 30. But if you said 10, we don't want to do. I might still take my chances in the pool. So it won't be the entire margin disappearing

as you re-contract. So that's why we keep on emphasizing from a couple of years ago that this is a contract portfolio, this contract portfolio. It's a progressive, you know, it's the near term one, so keep on getting re-contracted. The medium term ones, as they come on, we will re-contract them. Then some of them will choose to sign longer because some customers, I think enough prices are actually not so bad. Why don't I sign longer? Some will say that if, now prices are weaker or I should sign shorter. So the ship, it's really a portfolio that we are playing with. So but generally with the market supply and demand balance shifting you will see weaker margins that is for sure. And then our job is to actually go and find ways to offset that and to find the growth where we have to, some through acquisitions, some through integration, some through other forms of synergies and so on. So the other thing that I think One of the questions that was online that we never did answer

is that gas and related services, what is your near term catalissa, other than being resilient? As I mentioned just now, there is the synergies that we can derive from Sanoko. That's one. The other one that can come, maybe people forget that in 2026, we will have our CCP4, 600 megawatt hydrogen ready power plant that will come online. So that will first increase the capacity. Not that we will be. Then total generation will increase by that amount because we then will supplement with some running less of the less efficient plant with the efficient plant. But fewer costs will come down because it's much more efficient. So all those things will add up. Sorry, Honghan, I interrupted you. You must have another follow on. Very good. Thanks for the clarity. The second question I have is with regards to the remaining 13% of contract that will be renewed over the next one to two years.

I think you mentioned, Eugene, there's 3% coming up in 2026. I believe that belongs to SAMCOC. And another 10% of the portfolio will be re-contracted and in CNOCCO, total 13% over the next 18 months. The SAMCOC month is 3%. I think for CNOCCO, I didn't really see how much of that. But what I'm saying is that as for starting from 2026, that will be a contract that is coming up. And then after that, then there will be renewals from the second half of 2026 onwards. Maybe in another way to put it this way, how much of CNOCCO's portfolio will be re-contracted over the next 18 months?

Don't really have that. I don't think we can share that data outright yet, because it is a JV and then we have a JV partner. So we are not in liberty to share that data but it's just to give you a sense that from the second half of 2026, we will probably see a re-contracting. Okay, thank you. Sanoko is definitely not as contracted as SAMCOCA before our acquisition. So they definitely are not, they have bigger fleet of power stations. They are not as contracted, their contracts are shorter. I think that I can tell you. I understand. Thank you so much. Thanks. Thank you. We'll take some questions from the web. Firstly, in terms of the developments to note that we have put on our slides, there's a question on what is the impact of the Singapore and UK-based maintenance downtime for the second half of 2025?

for the Singapore downtime of a CCP tree. I did mention earlier on that it's not gonna be meaningful. I think for the UK, four or five week maintenance, it's not meaningful as well. It's not gonna be a meaningful impact. Okay, and for the newly signed PPAs of more than 120 megawatts, when do they start contributing?

Yeah. When do they start? We expect them to start contributing in 2026. Yeah, 2026. Because the data centers. Yeah, the data centers, St. Thomas. OK. Some questions on renewables also. So the question is, how do you see power demand and supply in China on the back of AI demand growth? China, very big country. AI will definitely make an impact, right? Because they also actively pursuing AI. But frankly, I don't have the numbers that is something that is reliable that I can quote today, but definitely will help. I think more importantly for China from the perspective of our portfolio, as I mentioned just now, the important thing is being in the right places where the supply and demand balance is more favourable and also where the price, your plan is in the,

our plan is in the right place in the merit order so that then whoever else is setting price is of higher cost, then under price reform scenario, you'll be better off. So that's really, and you know, if you, on a regular day, if you come into this room, the screen behind me will show the China map with our portfolio in it, then you will be able to appreciate, you know, how widespread it is. And because of that, you know, I can't give a single, there's no single answer to the question whether or not we're in a good place or in a bad place. We generally, when we do every deal, we are selective to try to be in the proper place, in the good place. But sometimes when we do, we also have some JVs, right? And the JVs, they come in a portfolio, within the portfolio, some are not in very good places, then you take the good with the bad.

So that's why we end up with some projects in the places. But if we are doing just single projects, we have always held on to the belief that we do it in the good places where demand supply balance, as well as the merit order, is good for the project. That's the only thing I can say. Any questions from the floor? Tse Hui. Thank you, Tse Hui, again from Macquarie. This is going to be a very broad strategy question. And ties goes back to renewables, right? So if you think about what's going on across the globe, there's a gradual shift in thinking about how people perceive renewables. And hence, there's a slight pivot away. And this was kind of started out after the Spain blackout due to the fact that it was 60% renewables running

and then it caused, and it was not an insufficient base load. So it's a shift from renewables to base load. And therefore, the question is, while it's still not five year strategy time, what do you think about your strategy to continue acquiring more renewables in other countries? And are you worried that at some point, five years down the road, 10 years down the road, it becomes a lot more difficult to capital recycle these assets because people just don't want so much of it anymore? In general, the energy transition as a trend is still alive. And that's why we came out and said, look, let's do more gas. We believe that you need to have both your base load as well as your intermittent renewables. Renewables will not disappear because everybody has some sun

and many people have some wind. So it is a means of actually achieving some independence instead of having to import for many countries, right? Unless you are in the right places favoured by God, you have your own oil and gas, but otherwise, you know, most countries would say, you know, this will allow me to achieve some level independence. And the cost is coming down so fast, right? Now, coupled with that, storage cost has also come down very fast. You've seen a similar curve. So that cost coming down, energy independence, even if you don't believe in the green, it is still good to do. So it will have its place in the energy mix, increasingly sold into the future. If it's cheaper than your oil and gas batteries plus solar,

you would use it, right? So that even without the green, so I acknowledge your point, green sometimes depending on what people really believe. We do believe it, but nevermind. Even without the green belief, it will have its place because cost has come down to a point that it is competitive, it will have a rightful place. Now, if it is competitive, it has its rightful place, then there's no question about the recycling. It's really, you know, if you earn $1 revenue, this asset, you know, you have invested $10, then it's a 10% asset. Then you recycle a 10% asset on that basis. But if you are hoping to recycle 20%, then you're being unrealistic, then you're stranded, right? But then at some point you will run out of business and then somebody will buy like $10 and the fellow will become recyclable. So I'm trying to say that it must be, again, the asset from a strategic perspective must

be a competitive source, because we are in the business of supplying energy. If your supply is expensive, just like the Malaysia one that she spoke so much about, then you have no place in life, you will be stranded, yes. So whether or not there will be a place, and that's why when we look at our portfolio moving forward, we think gas will remain relevant for a long time, especially in our home country. And there, in fact, is a shortage of gas equipment already. Right? There's really a very significant shortage of gas equipment. So those people who already have secured their position in the gas business actually would have a good chance of making a lot of money in the next few years. So the guess part, definitely. Then in terms of renewables, whether or not you could recycle, it is a function of at what price. So we think it's important that we execute everything at the right price

and put our things in the right places, then we can recycle. So that's why a good example is India now. So our India portfolio, I want to say, this season, unless of course the environment becomes un-conducive, it is as mature as we should be. If I sit here and tell you, no, no, no, I need to get to, you know, five plus five instead of three point three plus three point three, then, you know, I mean, who is to decide? Three point three cannot IPO, but five only can, right? But I think we got to the point that we can. I don't want to say with certainty that that will happen, right? A lot of still a lot of teas and dots to be connected. But you look at the thing by itself, it does look, it starts to look very conducive. And the team is matured. The market is hot. In terms of the renewables market, there are new projects that are coming.

There is still that little bit of what they call stranding because you have to calibrate your pace with the demand. If suddenly people get too exuberant, you end up with a project that is high cost, then you will be stranded. But I think we are in very good place. India, we are in a very decent. So that's India portfolio. You never know, China question is how long? We all live through 30 years of China boom. So how long are they gonna recover and take themselves out of their hole. And we are in the assets, the early assets actually are not in a bad place. Of course, if you're relying on subsidies, then it depends on the regime's willingness to honor their promise, right? But otherwise, if you keep that aside,

then early renewables are planted in the best places, in the places where they have the best solar, they have the best wind. So having some of this position, actually there is value that people haven't realized. So this is not an earnings discussion anymore. This is a sort of a longer term since we've brought it up and I take the opportunity to think about, you know, nothing you, analysts can factor into the numbers. But in the longer term, some of these portfolios actually, the so So-called residual value is probably not affected in. Because the same site, maybe you have a 20-year PPA, but 15 years into it, you might actually put in new equipment ready. Because it's much cheaper, it's much more efficient, the same square foot of solar panel can now generate double. You put it in. You squat on the space, you are in the prime position to renew the next contract. So those are actually good. The new ones you have to be careful because then increasingly you're pushing to the marginal

places, less wind, less solar and so on. Of course wind can change action, all those we can get into it. But in short I think renewables will continue to have its place in the energy mix. Energy transition is a trend that is well in life for many reasons. There's no reason to believe, you know, we would totally roll back into the past where also stop renewables, then build coal plants. I think that is very, very far from the scenario. Hopefully, this is just my view and I could well be off or wrong, but I think I'm willing to share that. I run this company, I have to have a view. Thank you. We'll take a few more questions from the web. Firstly, in terms of the power spreads, what are your expectations going forward And would Sanoko be bidding for the last remaining RFP for a 600mW CCGT?

Spreads, like I said, with more capacity command online, unless demand spikes up faster than people expected, then you can expect spreads to continue to be weaker. At some level it will stabilise. Sanoko bid for the last remaining RFP. Sanoko is the last CCGT if the demand justifies it. It has the transmission, it has the LAN, it is close to all the customers that are surrounding it. It has even the best sources of gas supply. It has a pipeline emulation, it has Samcopp, the largest gas supplier, shareholder. So if anybody would have built the next 600 megacross, it will be Sanoko, if I had to say it that way. That's my view. But I can't see who else would be brave enough

to compete against Sanoko in this bid. How can they win? Where are you gonna find a transmission? Where are you gonna find a land? Who is your customer? Where is your contract? With the current wholesale market, 40% down from the previous year, You want to build a power plant without customer contracts, I welcome you and then five years later, we'll talk about how I can build you up. So, no, frankly, right, think about it, right? That's the reason why we're in Sanoko. Anyway. Question on the urban business. Now that the reciprocal tariff is more or less finalised, what are we hearing from clients with regards to commitment to new projects in our industrial parks? President Seo, I think in relation to our industrial estate business, I mean, in Indonesia itself, we continue to see a growing demand because it is really a lot of the heavier industries

that are moving out, including the renewable supply chain. In Vietnam, we are, from a demand perspective, in the first half, you remain fairly robust. But I think when we are looking into the second half, we do notice strength and demand continue to still be strong for the northern parts, right, near High Phuong, Bạng Nhệ, and then even in the southern regions. But in the central regions, potentially, there is maybe some questions that our customers are asking. But of course, the central parks are the smaller part of our parks in Vietnam. So earnings are still driven by the Southern as well as the Northern parks in terms of land sales. Now, I think one of the points that were brought out is that now that the tariffs is clear, the customer still in a more of a holding pattern or still have questions.

I think the reality is that the headline 20% is agreed, but they haven't really come down to the point of being able to announce that they have sign that thing definitive. I think the other second question also, it's what defines transshipment? Because there is also the point where 40% is levied on trans-ship activities. So without a clarity on what will constitute trans-ship activities, while the headline 20% is agreed, there is still some considerations for our customers. So all in all, we continue to watch the space pretty closely.

Thank you. And the last question, there was a strategic reorganization that was announced a few months ago. Can you tell us about the progress? What are the future actions to be taken such as asset monetization? And will this translate into higher dividend payout for shareholders? Okay. Yes, the re-op into business segments and the naming of leaders leading them definitely is well on its way now. Each of the lines of business, we call them LOBs. The teams underneath them are coming to place. And then with that, the leaders of each of these businesses are also putting forth much more ambitious growth plans than we have announced to you in the past. So the whole idea is that how can we grow faster, how can we grow bigger in each of these lines of businesses guess renewables east and west as well as IUS.

So as you can see, you know, Eugene is becoming very versed in the IUS business, getting into really the details. Alex, you have heard from, Jeff Keung, you have heard from the only person is Vipu who is not in town. So yes, you can, we do plan to come to you once we have established the new so-called for ambition and growth plans for each of the lines of businesses that will guide how you can look at SAMCOP in five years' time. So that definitely, yes, you can expect that. Will more assets be monetized? As I mentioned just now, when the conditions are right, we will be thinking about it. So Samways was one of them. And then now, that's a case in which we are trying to streamline the portfolio. And in the cases like India renewables is a case where we could recycle capital to fund faster growth

and also then to choose the returns. So those things will be part of the growth plan, but those are means to an end. They are not by itself.

I cannot tell you that I sit here, then this CEO is just selling assets, so that then I take the cash and then pay your dividends, not sustainable, there's only so much you can sell. So I just want to clarify that. I'm glad the question asked about higher dividend payouts. I think our own trade record have shown you that once we have established a certain confidence in our underlying profit and balance sheet, we do increase our payout as we did last season. So again, this round for six months, we have increased our payout. 50% you shouldn't expect that to come every year. But if we are able to grow our portfolio underlying earnings and cash balance sheet healthy, we will obviously be wanting to reward shareholders support by paying out the dividend.

So I want to say, coming back again, that we are actually quite very confident and very comfortable with what we paid out last year. And then without making this guidance for the full year, we don't see today, I don't see anything that will derail us from that trajectory. And the 23 cents that we paid last year is definitely a very comfortable level that we be thinking about. So that's the I'm glad they asked about because I was quite surprised that people start to take it for granted no one single question here about the dividend. It's not every day that you increase the dividend by 50%, right? But it's useful to know because I think for us it is on the one hand a way to share with

shareholders the success, but on the other hand it reflects on our confidence because this team, those of you who have been following us, will know that we've been actually quite prudent and some might say we are conservative when it comes to the current dividends and and so on, and putting out commitments of growth plans and so on. And we generally want to act on the side of communicating less and then outperforming rather than the other way around. So again, the dividend very comfortable. And I want to remind you, can you give me back my slide 17, which is Eugene's slide. It goes back to the earlier point that each of the business segments, we can see near-term value add as well within our graphs. And again, we see this as a very defensive stock, very safe in the current, very volatile

environment. SAMCOP should be a very safe investment with some upsides that you can see near-term, and then there will also be bigger upsides given our very strong balance sheet and a very strong single dollar. So that's hopefully I leave you with that message. If I haven't been very good in answering questions, forgive me, but at least take away that message of what I'm trying to tell you, whether or not you believe it, look at our actions moving forward. Thanks. Thank you. There are no further questions and we have now come to the end of today's briefing. Thank you very much for joining us today. Have a good afternoon. It's lunch, right? Yes. You are giving lunch, right? So please stay and have lunch with some of our folks who will be there. And then we will follow up with you on further questions, particularly the more quant ones, Eugene and Tim ready to engage.