FY 2024 Full-Year Financial Results Webcast Briefing

Ladies and gentlemen, good morning and welcome to SAMCOP Industries full year 2024 results presentation. A warm welcome to viewers tuning in via the webcast. I'm Xin 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 switched to the silent mode if you feel unwell to approach our staff for assistance. Thank you. The members of the panel for today's results presentation are Group CEO, Mr. Wong Kim-in and Group CFO, Mr. Eugene Cheng. I will now hand over the time to Kim-in to begin the presentation. Kim-in, please. Good morning and welcome to Samco Industries full year 2024 results briefing. I must first apologise for my attire. Everybody is wearing a jacket but with the screen behind me it's just too hot. So you have to put up with me. otherwise, you know, I won't be as clear as I could be. So let's get into it.

Very underdressed. The group delivered a very resilient performance in 2024. Turnover was $6.4 billion, Ipita $1.7 billion, adjusted Ipita $2.1 billion. Net profit before exceptional items, 1.02 billion, surpassing the 1 billion mark for the second consecutive year. This is despite our Singapore co-generation plant being shut down for close to 2 months for major maintenance and also a 34% decline in the Singapore wholesale power market price. EPS earnings per share before EI was $0.57.2, group return on equity before EI was 20.5%.

This year we are proposing a final dividend of $0.17, bringing total dividend for the year to $0.23 per share. This is a 77% increase from the 13 cents in 2023 and implying a 40% payout ratio compared to 23% last year. The dividend yield of 3.9% is based on the closing price of $5.88 per share yesterday. In less than 4 years since our portfolio transformation, we have strengthened our key business segments, which have delivered resilient earnings and robust cash flows to the group. Our net profit before EI has more than tripled since 2020, with strong earnings predictability delivering a kegger of 36%. This increase in dividend reflects our confidence in the company's future performance and our

ability to generate sustainable returns. Let me take you through the key highlights of each of the business segments. gas and related services. During the year, we continue to proactively secure long-term power purchase agreements for our Singapore portfolio, enhancing earnings visibility. So as of end of 2024, 99% of our Singapore's gas fire generation capacity is contracted. We now have the largest portfolio of long-term PPAs, with high-quality customers including microns, SYNTEL, ST Telemedia, Equinix, GSK for example. We are also a leading power provider to data centers supplying over a third of the industry's energy needs. This contractor portfolio has provided earnings resilience as validated by the strong contribution from

this segment despite the 34% decline in wholesale electricity price last year. In November last Last year, we completed the acquisition of a 30% interest in Sanoko Energy from ONG for $96 million. Sanoko Energy is one of the largest electricity supplies in Singapore, operating around 2.6 gigawatts of gas-fired generation capacity. Meanwhile, our 600-megawatt hydrogen-ready gas-fired power plant is on track for completion in 2026. With natural gas remaining critical for national energy security, we are strengthening our ability to meet Singapore's growing power needs while supporting also the country's energy transition. In the renewable segment, we have added 4.1 GW of capacity to our portfolio during the

year, bringing total group capacity to 17 GW. And tapping on our development expertise, we capitalized on the strong momentum in India's green fuel tenders, securing over 2 GW of hybrid bits, including our first battery energy storage and solar project in the market. We have also successfully entered new markets. In Oman, Middle East, we delivered a 500 MW solar project more than 4 months ahead of its scheduled commercial operations day. We have completed our first utility-scale integrated solar and energy storage project in Nusantara, Indonesia. And most recently, we marked our entry into the Philippines with a proposed acquisition of a 96-megawatt solar portfolio in January. We remain focused on achieving

our target of 25 GW gross installed renewables capacity by 2028. This chart tracks our growth in various markets over the past four years. We have expanded our renewables portfolio from 3 GW to 17 GW, through more than 30 deals, maintaining strict discipline while avoiding mega-acquisition risk. Our portfolio spans across growing Asian markets, enabling us to shift our focus between geographies based on market conditions. This can be shown through our recent successes in securing projects in India and other countries, even while the Chinese market has slowed. Our ability to execute differentiated strategy across different markets is key. For instance, our expertise in developing, constructing and operating wind projects has

given us a winning edge in recent hybrid tenders achieving higher tariffs compared to pure solar and wind projects in India. The markets that we operate in offer plenty of opportunities for growth and we will remain disciplined in assessing new investments. The integrated urban solutions segment delivered strong earnings growth following a turnaround in performance from the urban business. Higher land sales in Vietnam and Indonesia were the main drivers. Building on the momentum, we further strengthened our Vietnam-Singapore industrial park VSIP portfolio to 18 industrial parks now, with the addition of three new investment licenses. We also expanded our presence to Batam, Indonesia, through a joint venture with Panbil Group, a prominent player in the industrial and hospitality sectors. During the year, we acquired land in multiple locations in Vietnam to develop industrial

properties for lease, and this is in line with our refresh strategy. This initiative expands our offering of high-quality spaces and strengthens our recurring income stream. Our occupancy rates for completed industrial properties rose to 76% up from 47% in 2023. We continue to review our portfolio and sharpen our focus. In November 2024, we announced the sale of Samcopp environment for a consideration of $405 million, which represents a 43% premium over its book value. We expect to record a gain of no less than $100 million for the sale. In summary, we are pleased with our performance and we will continue to focus on execution. The three growth engines, gas and related services, renewables and integrated

urban solutions will drive Samcoff's strategic plan towards 2028 and beyond. Eugene, please take us through the financial review. In relation to our business development, I will just take us through in greater detail on how we have performed financially in FY2024 over FY2023. Now, this slide details our headline performance. When we look at the turnover, we saw a 9% decrease, and some of this has already been guided previously. I think in FY2023, it was quite clear that in the first half of FY2023, we did benefit from higher pull spikes and pull prices prior to putting in place the TPC, right, which is a temporary price caps as instituted by the EMA. In addition, we've also guided the market previously that we would have major inspection for our Sakura units,

which took place quite successfully crossing Q1 and Q2 this year. And we also saw general lower power prices in UK. So essentially these are some of the factors that contributed to the decline and the turnover. However, as Kim Min has highlighted earlier on, the strength of our portfolio and the resiliency in our earnings really came through in the long-term contracts that we have renewables being long-term contract on fixed rates in general. Even for our gas business in Singapore, we have increased our contractor positions particularly in the form of fixed dollar the Spark spreads. As a result, our EBITDA is resilient in spite of those guidance and factors mentioned earlier on, and we turned in 1.74 billion, which represents only a 3% decline year-on-year. In terms of our share of results from associates and JVs that has increased 20% from 264 million to

This is driven a lot in part, number one, by projects commissioning in the renewables JVs, but also strong performance in urban as well. We saw strong resurgence of land sales in V-SIP in Vietnam, as well as across in Indonesia. So all of that brought our adjusted EBITDA, which is essentially flat from last year, and our net profit before exceptional items turning in 1019, which is slightly higher than 1018 of last year. Now I just wanna highlight the net loss from this continued operations. We did register a nine million loss, and this is largely from the perspective of the sale of Songzhao, which took place in December last year. And this nine million is a reflection of the flushing out of the foreign currency translation reserve into 3NL, which is typically from an accounting perspective, what we need to do as a result of sales.

That is similar to the situation in FY2023, the loss of 78 million, which came through as a result of the sale of our SEIL assets, which is also driven largely by the flushing out of the foreign currency translation reserve in relation to that sale. So from an ROE perspective, as Kim Min has pointed out, We turned in 20.5% relative to a 23.8% last year. I think just in relation to this 20.5%, there are a couple of considerations. Firstly, we did have the MI effect in the gas and related services. And then we did take some provisions against some of our China receivables given the environment. So normalized for those and also approximately half a billion of K-PEX that was spent in the FY2024 for projects that has not yet contribute to cash flows, our normalized ROE would have increased by another 100 basis points.

So if you go to the next slide, I wouldn't dwell too much on the group turnover because I will go into a little more detail talking about group net profit if you move to the next slide, Jin. So from a net profit perspective, our guest and related services we turn in 727 million for FY2024 represent a approximately 10% decline from 809 million last year. I think for the gas and related services segment, the outcome, we have always guided the market. Then in FY2023, there was approximately 60 million benefit from a high pool price spikes achieved in the first half of 2023 that would no longer be possible given the institution of the temporary price gaps. And also given the fact that we have strongly contracted our portfolio since the second half of FY2023, going to FY2024. And also in the first half of 2024, we had conducted a major inspection for our SACRA units,

where I've previously guided that given our best estimation at the beginning of FY2024, we expected the impact to be approximately 60 to 70 million, but we have reduced that to a much smaller impact. The gas and related services also benefited from a recognition of income from our CERNOCO acquisition, which completed towards the middle of November of 2024. All in, we turned in $27 million, and which will be a very stable gauge of our earnings capability going forward. Now the renewable segment, 13,183 million, which represents a 9% decline relative to 200 million in FY2023. Now there will be more details detailing the renewable segment in the slides following this group net profit discussion.

But in general, while we saw new projects being commissioned across some in China, in Singapore, some in India, and also the very successful commissioning of a mana. A couple of things to note. Firstly, many of these new projects were commissioned more towards the second half of the year, so they did not contribute on a full year basis. Secondly, from a project's perspective, we did see higher curtailment for China across the year, and we did experience slightly lower wind speeds for our India wind assets in the second half of the year. And I also mentioned earlier on, we did take approximately 19 million post-tax and post-MI provisions against our Chinese receivables given the environment. So in relation to the normalization of what the net profit ought to have been and also the ROEs are discussed in the subsequent slides. Now integrated urban solutions as mentioned earlier on strong performance, 169 million