Ladies and gentlemen, a very good morning to everyone joining both in person and on the web. Welcome to Sembcorp Industries full year 2025 results presentation.

My name is Xin Jin from Group Strategic Communications and Portfolio Management. Before we begin, may I request that all mobile phones be switched off or set to the silent mode.

If you feel unwell at any point, please approach our staff for assistance. Joining us on the panel today are our Group CEO, Mr.

Wong Kim Yin and our Group CFO, Mr. Eugene Cheng.

There will be a question and answer session following the presentation. Without further delay, I will now hand over to Kim Yin to begin the presentation.

Kim Yin, please.

Thanks, Jin. Good morning.

A very happy Lunar New Year to everyone. Let me now quickly get into the results of 2025.

Now, before I begin, I want to also set the stage. Compared to 2024, those of you have been following us would know that we have a significant headwind in 2025, right?

The margins in Singapore has been under lot pressure with the increase in the supply in the Singapore market. That's the first one.

In our UK, margins, as well as volume, also come under pressure. China renewables continue to face heavy curtailment as well as pricing pressure.

Despite those headwinds, we were able to offset the impact from those and came out in a resilient outcome, which is, you can call it flat, but it is not without effort that we can get to the one billion dollar mark. For consecutive years, we stay at that level, and that has given us the confidence to come out and say that, hey look, the underlying cash flow and the business is strong and resilient, and actually the cash flow is growing.

Because of that, we convinced the board to allow us to increase the dividend. It's just an indication.

It's not much of an increase, two cents out of 25 cents. It is still we recognize that we lag our peer group in terms of dividend payout.

Now that, again, we are operating at this one billion dollar platform, this normal new normal that may not be new, it's been three years, but I think everybody is convinced that we have that underlying capability to increase our dividend to close the gap between ourselves and our peer group, right? The idea is that in terms of returns, one can look forward to dividend, and then the second thing is that in terms of growth, we show you that in the year we are pending the completion of a major acquisition in Australia, opening up a new market for growth, a new platform for growth that is of scale, right?

Returns and growth, that's the message. If I want you to take away two messages, please those will be the two messages.

Now let me then go through some of the details in 2025 performance. The turnover was 5.8 billion, adjusted EBITDA 2 billion, underlying net profit 1 billion.

Easy to remember, 6-2-1. That's how I remember, the minus around numbers.

Underlying earnings per share 56.4 cents, ROE 18.2 percent. As I mentioned just now, we propose a final dividend of 16 cents, bringing the total of the year to 25 cents.

This is compared to 2024, the 23 cents is a 9 percent increase. Again, like I say, we recognize the gap in terms of payout ratio and dividend yield from our peer group, and the idea, the intent is that over time, we're very comfortable and confident that we can close that gap.

Then into the business segments under gas and related services, earnings of the group continue to be anchored by gas and related. Within the segment, the Singapore portfolio contributed 538 million in net profit, or 77 percent of the GRS segment's net profit.

A combination of long-term contracted portfolio as well as the incremental contribution from Senoko Energy provided the anchor for the earnings in 2025. During the year, in the last year, we secured 370 megawatts of long-term contracts, of which 150 megawatts was from Micron, which we announced in January this year.

We will continue to execute this strategy to capture demand from data centers and high tech manufacturing customers. As of February 2026, right now, close to 80 percent of Sembcorp's portfolio is contracted for five years and above, while the Senoko Energy's portfolio contracts are short-term.

In 2026, just to go a bit further, 5 percent of the Sembcorp portfolio will have to be recontracted, while about 50 percent of Senoko Energy's portfolio must be recontracted. We expect that, of course, lower blended spark spread for the new contracted volumes, right?

So 50 percent of Senoko, 5 percent of the Sembcorp portfolio. This impact will be partially offset by operational and financial synergies from both portfolios.

Then in the fourth quarter of this year, 2026, the commissioning of the 600 megawatt hydrogen-ready power plant is expected to take place. It is highly efficient, and that will enhance our fuel and cost efficiency of the entire fleet.

During the year of 2025, we have also secured long-term PPA for Sembcorp Salalah independent water and power plant. This 10-year contract will commence from April 2027.

The previous contract, which is currently running, is a 15-year contract, and will expire in April. We secured another 10 years, and that will provide the stability coming in from the contribution of Oman.

The Middle East is entering a new phase of rising energy demand driven by industrial and digital hubs that require reliable, uninterrupted power. We have extensive experience operating critical power and water infrastructure in the region, and we will selectively pursue growth opportunities in the Middle East.

Moving on to renewables, during the year we maintained the pace of growth in the selected geographies, adding 3.6 gigawatt of new capacity to our portfolio compared to the end of 2024. The earnings from the renewables segment increased 5 percent year on year.

This is despite the contribution from China renewables declining to 74 million from 89 million in 2024. In India, we have seen improved contribution from the existing fleets as well as from newly commissioned megawatts.

During the year, the pipeline continues to grow in renewables. We acquired 300 megawatts of solar capacity and secured 1.5 gigawatt of greenfield winds, comprising hybrid projects, round-the-clock projects, firm and dispatchable renewable energy projects.

We are actively exploring capital recycling options in India. In the Middle East, we successfully entered the wind market in Oman with a 125 megawatt greenfield development project underpinned by a 20-year PPA.

In Singapore, we were awarded solar projects totaling 236 megawatt PIP, including two floating solar projects, reinforcing our position as the country's leading floating solar energy player. In Southeast Asia, we completed the acquisition of a 49 megawatt hydro project in Vietnam and a 280 megawatt solar and energy storage portfolio in Indonesia, which is currently under construction.

Our total group renewable capacity is now 20.4 gigawatts, of which 5.4 gigawatts are secured, either under construction or under advanced development. This 5.4 gigawatts of new capacity will progressively come online between 2026 and 2030.

Integrated Urban Solutions. The net profit for the IUS segment was stable.

Earnings from our water segment was stable, while contribution from the other divisions were lower due to the absence of contribution from SembWaste or SembEnviro. Obviously, we closed the deal to divest SembWaste in, was it February, March 2025?

It's been some time. Compared to 2024, that the contribution from SembWaste is of course no longer.

The urban business continued to secure new industrial projects, bringing our total gross development land area to over 16,000 hectares. In Vietnam, we secured four new investment licenses, and this brings the total number of projects in Vietnam to 22.

In Indonesia, we are developing the 500-hectare Kendal industrial park phase 2. Remember that phase 1 is almost mature and most of the land has been sold.

Now we're moving on to phase 2 with 500 hectares, and we are also progressing on the development of the 100-hectare Tembesi Innovation District in Batam. We have also doubled our leasable gross floor area to 1.1 million square meters from half a million square meters in 2024.

The occupancy rate of our operational industrial properties increased to 96% from 76% as of the end of 2024. In terms of both growth in square meters and also in terms of occupancy rate, the IUS team has done well to improve the performance.

This will, particularly this area, will further strengthen our recurring income coming up from IUS. We will continue to review and sharpen our portfolio, as we did through the sale of SembWaste and the divestment of municipal water business in China during the year.

The long-term fundamentals of Sembcorp is very strong. We are in the right places.

We have got secured cash flow through contracts with high-quality customers, and later Eugene will share with the underlying cash flow coming from the Singapore portfolio, and then post completion, the Alinta portfolio is actually very, very robust. In the near term, we are facing some headwinds, which shouldn't be new.

These are the things that we experienced in 2024, but in 2025, or rather in 2025 and in 2026, we would want to flag that in front of you and give you a little bit more color what we will do about them. In Singapore, with new supply coming on stream, we can naturally expect lower spark spreads.

Since 2023, you know that we have been transforming our portfolio by leveraging our position as an integrated gas and power player, as well as the largest renewable player in Singapore, to secure long-term contracts. What was previously a very merchant-heavy portfolio is now a largely contracted one.

Of course, I'm speaking about the Sembcorp portfolio, not the Senoko Energy portfolio. Now, Senoko Energy, we will go in there and try to add value as we did with our own portfolio, but the good thing is that we got it at a price, at an investment level that is very comfortable notwithstanding the merchant nature of the business, right?

As a portfolio there are significant synergies in terms of financing, in terms of operations, in terms of how we run the plant. For instance, we can sign a hedging contract with Senoko to provide insurance, so that then we can aggressively contract our baseload high-efficiency units in the Sembcorp portfolio.

There are significant synergies. We bought Senoko at a very attractive valuation, and, in combination, we are now the largest fleets of gas-fired power stations in Singapore.

Together with our integrated gas portfolio as well as our position as the largest renewable player, we are very well positioned. We think that we are highly competitive, and the diversified portfolio will position us to capture the growing AI demand in Singapore, particularly from data centers and high-tech manufacturing sectors.

I'm going to go off script a little bit. When we say today there's a lot of hype about AI, shares, share price of some of these companies, tech companies, are very high.

We're not in that game. By the time the AI demand translates into energy demand and it translate into a contract with Sembcorp, that is a solid demand because that demand for energy is coming from Micron, it's coming from data centers that are hyperscalers with good credit profile, right?

We are sort of on the receiving end of it. I'm not saying that we are an AI company now, but by the time we receive the demand translated from all the noise in the market, it is actually a very, very solid demand that we are capturing, right?

The important thing is that we are ready to capture it, and what we're saying here is that we are very well positioned to capture that demand. If I move on to China, of course, we will continue to face curtailment and tariff pressures alongside with the recent cancellation of value-added tax refunds for onshore wind projects.

These are developments that will affect the entire sector, not just us. Now, we will remain very disciplined in managing our portfolio exposure in China in terms of thinking through project additions or even divestments.

We will allow time for expansion of transmission network and also pursue contracts to try to stabilize earnings. Having said all that to put things into perspective by now, if you look through the numbers, China is a relatively small contributor to the entire picture, right?

As I mentioned just now, notwithstanding the headwinds and the lower contribution and the reducing contribution in the last couple of years, we were able to plug the gap through other means. The last one is the UK.

The closure of our key customers' operations, particularly SABIC, has driven largely by weak economics, of course, in the industrial sector as well as in the UK in general. We are driving active cost management and repositioning the business to capture data centre opportunities.

We'll talk a little bit more about why we think we can capture that in the next slide. I mentioned just now that we believe we're well positioned to support the region's accelerating AI-driven energy demand.

Allow me to take a little bit of time to elaborate. Our gas and related services provides reliable baseload energy.

We are well positioned to capture more demand from new data centres as well as the semiconductor sector. As we have shown you, we now supply almost 700 megawatts of high-tech manufacturing sector, which includes also the recent 150 megawatt contract with Micron.

Our renewable business delivers tailored green PPA solutions and long-term renewable energy supply for high-demand industries to meet their clean energy targets. Contract secured include the supply of power-backed renewable energy certificates to day one 20 megawatt data centers under 10-year PPA.

Data center, day one 20 megawatts to a 10-year contract. That sets the tone of what we can expect moving forward as more new data centers gets planted in the region, and particularly in Singapore.

We have also signed a 25-year renewable energy purchase agreement with Meta Platforms, and this is to build, own and operate a 150 megawatt floating solar farm in Kranji. Finally, under the IUS business, we provide low-carbon infrastructure to customers, and we are able to develop sustainable data centre infrastructure with partners to supply land and power along with other green services.

Within the Tembesi Innovation District in Batam, Indonesia, we can accommodate up to 100 megawatts of data centre capacity. For those of you who are familiar, Batam, of course, is already seeing the connection of fiber coming in from companies such as Singtel.

It is not whether there will be data centers; it is when and of what size, right? What we have there in Tembesi is already 100 hectares of land ready to connect up to all this data center demand.

In the UK, Wilton offers 138 hectares of ready land with immediate grid connection and supporting infrastructure, and that is naturally attractive for potential data centre developments, right? Because, as for data centers, one of the biggest constraints is the power supply, right?

In a place like UK, or for that matter Singapore, Australia, places like this, to bring a new substation and high-voltage cable to supply a newly increased demand from data center, that will take time. Existing infrastructure, existing land will provide that opportunity.

Together, in GRS, in renewables as well as in IUS, Sembcorp is actually a very attractive comprehensive energy and infrastructure partner for the AI players. By integrating reliable baseload, scalable renewables and sustainable urban solutions, we want to capture the region's growth while enabling our customers to accelerate their decarbonization and digital transformation ambitions.

I shall not go through this in the script that Jin has given me. I think what I want to emphasize before I hand over to Eugene for the detailed numbers is, again, first, in terms of returns, we are expecting that we will be able to improve our dividend payout ratio and dividend yield steadily over the coming years.

This year, the two cents increase compared to 2024 is just an indication, and we have deliberately been quite prudent, given that we are pending the closing of a major transaction in Australia, right? To close the gap in terms of dividend yield and payout ratio compared to our peer group.

That is the first thing, and the underlying cash flow I have explained where our balance sheet and cash flow positions when we discussed the Alinta acquisitions a month ago. If we need to provide elaboration again, I am happy to do that later.

Suffice to say, we're very comfortable with our balance sheet position. We have very strong cash flows coming in.

In fact, we struggle to find the type of growth opportunities like Alinta where we can deploy that cash flow. Naturally, either you grow or you reward shareholders and return it to them in the form of dividends.

That's the first thing. The second thing is that in terms of growth, we have immediately in front of us Alinta, which we will hopefully complete sooner than later, but certainly we expect within this year, if not the first half.

Alinta will provide, at least for the next two years, a significant-scale market and significant growth capabilities. We have a very strong management team down under to help us grow the entire energy portfolio.

The least of it is a 10-gigawatt renewable pipeline that they have already identified, right? In addition to a very energy-starved high demand growth Australia energy market.

Certainly in the next few years, in terms of returns and in terms of growth, we are quite set up for that. That's the picture that I want to leave with you before I hand over to Eugene.

Eugene, please.

As Kim Yin has pointed out earlier on, I think 2025 was a year, in the half-year earnings announcement, that we are seeing some headwinds. We were quite pleased that as we closed 2025, we were still able to close the year strong, right, keeping to the billion underlying or net profit earnings relative to 2024.

Now, on this slide is basically the group-level statistics, and I will talk through them. I will use one particular slide which talks about the net profit of the different segments, right, to elaborate more in terms of the specific performance.

Now, if we look at headline from a turnover and EBITDA standpoint, we did see a commensurate 10% decline across both of them. I think from a...

We already know the key reasons for that, right? In general, in Singapore, we did see, in general, lower spark spreads for the renewal contracts that took place towards the latter part of Q2.

That also carried through for the rest of the year. Also, in addition to that, we also saw high-cost power import contract continue to wane down.

Also we did see some compression of gas margins, and also the absence of roughly 10 to 15 million of gas upstream curtailment gain that we had in 2024 that was not present in 2025. Now, in addition to that, we also saw weaker price and customer demand across UK.

In the UK, Wilton gas business, for 2025, we were hedged on contracted forward prices at the end of 2024, which was weaker relative to what was hedged for 2024 at the end of 2023. In addition, we also saw the petrochemical sector, which is a significant part of the current customer base in Wilton, that has seen weakening.

In general customer demand has been weak as well. We did see a weaker demand from the UK.

Now, of course, we also were impacted by the loss of contribution from SembWaste after we have divested that in March of 2025. Now this is partially offset by new capacity that has been commissioned in renewables across India, the Middle East, as well as Southeast Asia, where we completed the acquisition of the 49 megawatts of a hydro project in Vietnam.

Of course that is offset by some curtailment issues that continued, particularly in the Guangxi province of our control portfolio. The effect across turnover and EBITDA.

Now share of results of associates and JV increased markedly by 57%, or 180 million. Of course this is driven by Senoko's full-year contribution of 30% and an incremental 20% for half year.

Now from a Senoko standpoint, this contribution is also offset by renewals of roughly 15 to 20% of its contracted portfolio in the latter half of 2025. Now just to give you a sense, in those rounds of contracting, we essentially saw the re-contracted spark spreads come off quite markedly.

We were contracting between 30 to 35 dollars spark spread for that renewal, which essentially came off highs of 70 to 80 dollars, which were contracted more at the 2023 period for them. Now of course I will touch on later on because there continues to be re-contracting taking place as Kim Yin highlighted through 2026.

We also saw in the VCIP portfolio, we saw a higher contribution. Part of it is as a result of fair value gains for the completed RBF projects within the VCIP parks that we own, but this is offset by some land sales weakness in central Vietnam.

The fair value contribution was 27 million, but I will talk about it later on later. It's also offset by continued China curtailment in the SEAS portfolio.

All in all, adjusted EBITDA, it's about 2% lower compared to FY2024, 2,016 compared to 2,050, and our net profit before exceptional items and the DPN FX is 1003 relative to 1014. Now we did realize a non-cash FX loss for the deferred payment note in 2025 of 154 million.

This is roughly about coming simply from a roughly 10 to 11% depreciation of the India rupees relative to strengthening Sing dollars. When we compare the rate in which we mark to market, or rather translate the DPN balance from Indian rupee to Sing dollars, the rate used in 2020, as of 31st December of 2024, was compared to the rate used at 31st December of 2025.

The rate declined roughly 10 to 11%. Of course this does not indicate any cash flow impact, but it's really a mark to market.

Now as highlighted previously, hedging the balance of the deferred payment note, it's dependent on two factors. Number one, the visibility of fixed cash flows.

Now the deferred payment note is largely on an availability of cash sweep model, right? As a result, putting in place forward cash flow hedges effectively, from an accounting standpoint, will not result in an effective hedge, right?

I think the second element also throughout 2025, when we look at what is the forward cost of hedging, the forward cash flow cost of hedging will result in a worse outcome than the mark to market, and if we do put on those hedges, it will be real cash outflows. As a result of that, we did not put in any form of forward contracts as a counterbalance against the rupee swings here.

Nevertheless, 154 million is really a one-time mark to market. It does not indicate any cash flow impact in the current cash flow generation capabilities of the portfolio.

We have an exceptional item gain of 135 million. That comes largely from the sale of SembWaste.

Also included in the sale of SembWaste in these exceptional items was the positive goodwill bargain purchase option gain as a result of the second tranche completion of the Senoko transaction. This is offset by roughly 28 million, 28 to 30 million of some asset impairments that we took across Southeast Asia, where we made the broader decision that we will not continue with the rooftop solar business, which generally is a very small part of Southeast Asia currently.

Now, all that results in a net profit from continuing operations, taking into account the DPN FX loss and the exceptional items of 984, right? A lot of which driven by the DPN FX impact.

Now our ROE from a more underlying basis, before exceptional items and our DPN FX loss, is 18.2% relative to 20% last year. Now there are some capital drawdowns that took place in 2025, particularly in relation to CCP4, and also continued capital deployment for our pipeline and also certain projects that came online but were not contributing on a full year.

I will illustrate what the effects are, those from a normalized basis on the slide later. I won't touch so much on the broad group turnover because the reasons are largely about what I have highlighted earlier on.

I want to move on to the next slide, which illustrates the group net profit by segment. Now for the gas and related services, we turned in 2701, which is a 4% decline relative to 720 in FY2024.

As Kim Yin has shared in the earlier slide, the effects can be broken largely into two, right? For the Singapore gas and related services portfolio, FY2025 turned in 538 million relative to 546 million in FY2024.

These numbers are there. It is just in Kim Yin's earlier slides, okay?

That is approximately an 8 million decline. Now there are basically two effects here, right?

One, contribution from Senoko, and the other one, which is the continued margin pressures that we see in our Singapore only portfolio. I think throughout 2025, as highlighted in the first half results, we did see roughly a 10% of our portfolio re-contracting, 90 to 100 megawatts from the Sembcorp portfolio that took place at that point in time.

We did see spark spreads coming off down to the $30 range, which was coming down from the high of the 80 to 100 dollar range that was previously contracted. That carried through the full year, and the impact from the declining spark spread was about SGD 60 to 70 million on a full-year basis.

Now, we also saw the high-cost power import contract that we signed and disclosed at the end of December 2024. The run rate impact in the first half carried through for the full year as well.

In the first half we highlighted it was about SGD 20 million or so. That continued to weigh down our portfolio.

We also saw some declining gas margins, and also, in addition to that, there was a one-off curtailment compensation gain in 2024, around SGD 15 to 20 million, that wasn't there in 2025. These are the impacts on the ex-Senoko portfolio.

I think from the Senoko compensation, largely across the gas and related services, adjusted EBITDA disclosure, you will be able to largely look at that number. Again, as highlighted earlier on, we do have to bear in mind that in Senoko's 2025 numbers, particularly in the second half, it has been impacted by roughly 20% of the portfolio that has been re-contracted.

They have been re-contracted at $30 to $35 spark spreads as well, right? That has come off similar high levels of about $70 to $80 spark spread that was contracted before.

As Kim Yin has highlighted in the pie chart earlier on, we expect to see close to 50%, roughly 47% of the Senoko portfolio, that will be re-contracting from the second half onwards. All in all, we do have, we believe, based on our visibility right now, those re-contracting levels will largely be at the $30 to $35 level as well, coming off similar highs as highlighted.

That's the visibility that we have on the Senoko earnings. Now on the rest of the world earnings, we turned in SGD 163 million, relative to SGD 182 million for the gas and related services segment.

That's about SGD 20 million, 19 to 20 million decline. Now, the rest of the world gas earnings were historically largely very stable, but I think this year we saw a SGD 20 million decline, largely as a result of UK, right?

As highlighted earlier on, UK did see two effects that came through. Number one, basically lower power prices, right?

Secondly, lower customer demand as well, particularly the petrochemical customers in the UK. One of them, SABIC, did not return for its olefins plant, and we do expect the weak customer demand potentially to carry through into 2026.

That's for the gas and related services segment. Now for the renewables segment, from a net profit standpoint, right, we turned in SGD 192 million, which is 5% higher than SGD 183 million, which we closed FY 2024 with.

Now again, earlier on we have broken out this segment into China as well as others. Let's talk a little bit about China.

For China itself in FY 2025, we turned in a SGD 74 million net profit versus SGD 89 million in 2024. It's a SGD 15 million decline.

There are two key effects to the change in net income. Firstly, it is continued curtailment that affect the China portfolio, particularly in the northwestern side of the portfolio.

To give you a sense on the average China curtailment that we have across our portfolio, in FY2025, our average curtailment for the wind portion of the China portfolio was 14% versus 8% in 2024. It's a very significant increase in curtailment.

For the solar portfolio, it was 16% average curtailment in 2025 relative to 9% in 2024. Also commensurate increase in the level of curtailment.

The impact of curtailment on the China portfolio in FY2025 was approximately SGD 30 million in net income, okay? We did see capacity increase in 2025, right, from project pipelines that were coming through.

Gross capacity, we added about 900 megawatts, right? The capacity increase, plus also some stronger generation that we see in our Hainan portfolio on the wind generation, did result in a SGD 15 million positive net income on a year-on-year basis.

The net effect of both, right, the curtailment negative SGD 30, but we did have some 900 megawatts of capacity increase and stronger wind generation in the Hainan wind portfolio. That resulted in a net SGD 15 million downside in our China renewables earnings.

Now in the Others portfolio, which comprises of India, Middle East, as well as Southeast Asia, we saw in 2025 we did SGD 118 million relative to SGD 94 million in FY2024. That's a SGD 24 million increase.

This is largely driven by two things, right? We did see a new capacity commissioning across India, Middle East, and also we completed a couple of acquisitions, right?

One, which is a 300-megawatt wind portfolio, and also 49 megawatts Vietnam hydro portfolio. Those were later in the year and did not contribute on a full-year basis.

All in all, that contributed to that increase. I think in addition also we did see slightly better wind resource performance across India as well.

That contributed to the renewables portfolio outside of China that saw a SGD 24 million increase. If we move to the integrated urban solutions, right, it is flattish across both from 2025 compared to 2024, SGD 178 million compared to SGD 173 million.

When we break across the three segments in Kim Yin's earlier slide, right, the urban business turned in SGD 114 million relative to SGD 101 million in 2026. It's about a SGD 13 million increase, okay?

The increase was really driven by about SGD 27 million of fair value gains as a result of the ready-built factories and warehouses that are being commissioned. This is offset by some land sale weakness in Central Vietnam.

As you will recall, one of the areas that we have been very vigilant since the Liberation Day tariffs were announced was Central Vietnam, where the manufacturing activities of our customers tend to be of lower value-add variety, right? We all know that Central Vietnam, in Vietnam itself, basically from a labor perspective, they are of a lower level.

We did see a weakness in that segment as well. Across the northern as well as the southern part of Vietnam, we continue to see land sales to be strong, and also across Indonesia.

I think Kim Yin brought up an important point: the coming through of the ready-built factories and ready-built warehouses did also increase our recurring income contribution in the urban business. Now, in 2025, our recurring income contribution across infrastructure charges in the parks as well as ready-built factories is approximately 20%, right, net profit contribution from recurring income.

This has increased markedly compared to about 10% to 12%, three to four years ago. The coming through of the ready-built factories has improved the recurring income quality within the urban portfolio.

As highlighted also by Kim Yin, going into 26 and 27, going into 28, we will have significant amounts of ready-built factory and ready-built warehouses to be constructed. Once that is done, we will see even stronger recurring income contribution to urban.

Now, in the water business, we generated 52 million relative to 50 million in 26, fairly stable. Right?

We did see cost optimization efforts in 2025 that turned into fruition, approximately 2 million of cost optimization gains that hopefully would stay as run rate going forward. One point to note also in 2025, we did receive a one-off 10 million receivable settlement for a past receivable in relation to one of our not-so-well-performing municipal asset, Qinzhou.

In 2024, we also have similar levels of one-off gains, but that was across Fuzhou and another water plant compensation collection recoveries of past receivables as well as certain provision reversals. The last element to talk about in IUS is really our waste and waste-to-energy business.

We did see a decline of 10 million, and this is largely contributed from the divestment of the SembWaste business, which took place in March of 2025. Now, if we move one further down the line into the decarbonization solutions segment, while we turned in a negative 23 relative to negative 20 in FY2024.

One of the key elements of that 3 million increase in terms of losses is a result of a write-off, a write-down of our RECs inventory value in GoNetZero. I think in 2025, we have seen a marked decline in the value of the RECs.

We took off a meaningful write-off, and that contributed to the increase in the losses. Now in other businesses, we turned in 45 million relative to 38 million in FY2024.

Other businesses largely comprises our Sembcorp Specialized Construction, as well as the Mint business. The Mint business continues to contribute the 1 to 2 million of net profit, it remains flat.

Our Sembcorp construction business continue to accelerate in net income realization simply because of a growing order book. Order book for the Sembcorp construction business is in excess of 1 billion currently.

Going further down the line from a corporate cost perspective, now for interest cost, we were able to optimize that by about 10 million, largely. This is a corporate-level interest cost.

Now we were able to do that because we did take efforts to optimize our cash usage to minimize negative carry. I think in addition to that also we benefited from refinancing activities that were at a lower interest cost.

We were also quite active in looking to rework some of our commitment fees, for example, with our banking partners. This resulted in a reduction in our interest cost.

Now our other corporate cost reduced by 25 million. To give greater clarity of that, 11 million of that on a year-on-year basis came as a result of past tax provision reversals.

That is in relation to a withholding tax provision that we made against a China dividend that was paid out. The withholding tax provision has gone past time bar, the time bar, and hence it was okay for us to release the provisions.

But 14 million of that 25 million came through discretionary cost savings. We were managing costs across professional fees, across travel, across manpower costs throughout the year, and that allowed us to realize the cost.

Now going forward, because these are cost management efforts against discretionary costs, we will continue those efforts in 2026, but we may not be able to realize the same magnitude of cost savings. We will continue to be driving cost savings at the corporate level in those areas.

Now for the DPN income, that has come off 25 million, 159 down to 119. Now I think that simply is a result of continued paydown of the debt balance in Indian rupee terms of the deferred payment note.

I think one of the key things to highlight is the cash flows as well as the earnings performance of the underlying asset, which is SEIL, the coal plant, continues to be very strong. People, I may not have highlighted this enough, but since the transaction inception in January 2023 till today, total cash collected across both by income as well as principal paydown in Sing dollar terms is in excess of a billion.

It's about 1.05 billion. Looking into 2026, we do expect a similar strong cash flows return and paydown of the deferred payment note income as a result of SEIL's underlying performance.

Of course, that will also mean that our DPN income will continue to decline as we see a faster recovery of the principal. I think essentially that largely highlights the differential performance across all the segments, and the DPN FX again loss and the exceptional items I touched on early on, I won't go into more detail.

If we move on to the next slide, this is basically a bridge that highlights what I was talking about, I won't talk through this slide again. Now, in terms of the group ROE, as highlighted earlier on, we did see a decline in the group ROE.

Gas and related services was 32.1 in FY2024, down to 26.4. Now, in the ROEs itself, there are two effects.

I think firstly, it is the declining spreads as we were talking about. The second element also is we are incurring capex and drawing on capital, particularly for CCP4.

In 2025 was the year where we incurred the larger amount of capex coming into 2026, where we expect CCP4 commissioning to take place towards the end of the year. Normalizing for that, the ROEs would have been better.

Now for renewables, it's 7.4 relative to 8%. Two effects.

One of the elements is we continue to see curtailment elements weigh down the China portfolio. Also, we have projects that are commissioned that have not contributed on a full year.

I will show the normalization of the effects in the next slide. The integrated urban solutions continue to be at 8.4%.

Now, if we move to the next slide. Now, if we look at the ROEs, as highlighted, we do want to call out what are the capital draw that has potentially weighed down the ROE versus what it would have been on a normalized basis across the renewables as well as the group.

For renewables, we did have a 0.7% that comes from a combination of projects that were commissioned in 2025 that did not contribute on a full year basis, right? If those projects contributed on a full year basis, it would have been an additional 0.7%.

Now, we also have certain projects in the pipeline that are under development and have drawn down on capex, right, and have not CODed yet. The impact of that is another 0.2% on ROE.

The normalized renewables ROE would have been about 8.3%. From a group perspective, on a similar basis, the contribution from projects that were commissioned in 2025, if they contributed on a full year basis, that would have been a 0.3% impact, and projects that are under development would have been 1.8%.

Now, that looks a lot larger relative to renewables because the biggest part of that is the capex that is drawn for CCP4 construction, which is expected to be commissioned in the later part of the year. If we move on to the next slide, this is to highlight the impact, the translation impact of the strong Sing dollar across the different currencies had on our earnings.

As you will recall, I highlighted this in the first half because, from the first half, we have seen almost a systemic strengthening of the Sing dollar against all our key functional currency exposure. Now, just for us to note, this translation impact is simply, for each of our overseas operations, the accounts are kept in local functional currencies, and when we translate back into Sing dollars, we would have to use an average translation rate, and that translation rate has declined, right?

Operationally, in the respective markets, certainly, it is not an indication of the operational earning capabilities in those markets. Cumulatively, across 2025 compared to 2024, the estimated impact, the translation impact on our earnings has been about 32 million.

It's fairly significant, right? Almost 3 to 3.2% of underlying earnings.

This continued heightened currency volatility, we will monitor the situation, but given that this is a translation impact, traditional hedging activities may not be that effective. Now, if we move on to the next slide, this is really our capex and equity investments for FY2025.

In short, total investments that we have made in 2025 total about 1.2 billion, right, relative to close to 2 billion in 2024. If we move to the next slide, our cash flow generation continues to be strong, right?

In 2025, our operational cash flows is about 1.2 billion, slightly down from 1.4 billion the year before. Now taking into account, cash flows from essentially interest income as well as dividends and the DPM receipts, and our free cash flow before deployment for expansion capex as well as equity investments is about 2.1 billion relative to 1.8 billion last year.

Now of course, in the 2.1 billion, we have the benefit of 383 million, which is the net cash proceeds realized from the SembWaste sale, okay? Now, but even if we take that out from the free cash flow of 2.1 billion, our free cash flow available for debt service as well as growth on an annual basis still remains approximately 1.7 billion, which is similar to FY24, the year before.

Highlighting our confidence that we can service any outlook in relation to our dividends going forward. In terms of our group borrowings, from a gross debt perspective, we saw roughly about 200-plus, 300 million increase that results as a continued drawdown of the completion of our pipeline and also CCP4, but also because of our overall net stronger net cash flow generation, our net debt remains fairly similar to last year at roughly 7.8 billion, with our cash and cash equivalents increasing from 871 million to 1.1 billion.

Our key leverage metric, which we always focus on, our net debt to adjusted EBITDA, stands at 3.9 times, which is not very different from where we were one year ago. Moving on to the next slide.

From a group debt profile perspective, we improved it slightly this year, right, some of our refinancing activities where we were able to avail from lower base rates, tighter margins, and also an extension in terms of tenor. We were able to refinance some of our, for example, five- to seven-year bank revolving credit facilities towards the eight-year mark, and also we were able to issue a two-and-a-half-year bond at 3.55% in October of last year.

All this resulted in our weighted average cost of debt declining slightly from 4.6% in 2024 to 4.5% in 2025, while being able to extend our weighted average debt maturity to 5.2 years. In terms of our fixed versus floating profile, 76% of our portfolio remains fixed, which means that on the floating perspective, every 1% change in the base rate will be about 50 to 60 million dollar impact.

Of course, we are mindful that, given the current interest rate environment, it's on average more towards a downward bias. We will also be monitoring our fixed and floating rate mix, taking that into account as we go through the year.

From our available liquidity, we remain strong, right? The key thing that we always focus on is what is our on-demand liquidity, which is really a combination of our cash and cash equivalents and our unutilized committed facilities.

As of today, our cash and cash equivalents stands at 1.1 billion, and our unutilized committed facilities is at 2.5 billion. Total about 3.6 billion of on-demand liquidity that will allow us to take advantage of any growth opportunities that come through.

The next slide is just to highlight the outlook, right? Essentially, we have delivered resilient financial results, reflecting the strength of our diversified portfolio and cost management.

Now we do have long-term contracts across our portfolio, and increasing the proposed dividend in 2025 reflects our belief in the strength of our underlying earnings and also cash flow visibility. Now when we go through the different segments, I think in 2026, as highlighted before, the gas and related services segment is still expected to be affected by a sliding down of our spark spreads and margins because we do, as guided before, roughly 3 to 5% of our own portfolio will be subjected to some recontracting in 2026, and approximately 47 percent or 50 percent, right, approximately half of our of Senoko's portfolio will be recontracted.

Coming into 2026, you will, especially for Senoko, you would expect to see a full-year impact of the recontracting that took place in the second half of 2026, roughly 20 percent of the portfolio, and 50 percent of Senoko Energy's portfolio that will be recontracted starting from the middle of the year onwards. That is something to take note.

Now, of course, we will expect that effect to be partially offset by operational and financial synergies across the two portfolios, and also when the H-class is commissioned, we do expect to see a greater fuel and operational cost efficiency as a result of running that hub against the portfolio first. This highly competitive portfolio will position us well to continue capture incremental contracts, because of the growing power demand driven by data centers and high-tech manufacturing sectors, as we have demonstrated since 2023, having a leading track record and being able to do that consistently again and again.

For our renewables portfolio, we do expect our platforms across India, Middle East and Singapore will continue to grow, right? That's a good thing, and, with the new capacity progressively coming in, 2026 across to 2030.

Now, having said that, for China, we'll continue to be very watchful. We do expect curtailment to persist, right?

There's one other regulatory development that we want to highlight now. China has come up with a policy where they said that value-added tax refunds for onshore wind projects, they're going to stop it, right?

That applies retroactively as well to projects that have already been commissioned. That policy change will see a $12 million further impact on the China portfolio in 2026.

Now, for the IUS business, the urban business, I think one point to highlight is that we are going into a phase in 2026 and going into 2027, right, where we would be developing close to 800,000 square meters of ready-built factories. Of course, these ready-built factories across 26 and 27, they will not be generating incremental recurring income, but, we would expect to see some pre-operating as well as financing costs for them.

Once they are TOP towards the end of 2027 and going into 2028, there will be a meaningful increase in contribution of recurring income to the urban portfolio. All of this put us in a good state to navigate our near-term headwinds, and, we expect the Alinta acquisition to be completed in the first half of 2026, and the completion of the acquisition will further strengthen our earnings base, our recurring cash flow, and our ability to sustain and potentially grow our dividends over time.

Okay. A couple more developments to note.

When we complete Alinta, we have already highlighted this in the circular to shareholders, as well as in our briefings, right? We do expect a one-off transaction cost of close to Australian dollars 208 million.

This will be called out in exceptional items, right? More than 50 percent of that 208 million are really in relation to stamp duties for the ownership transfer.

In UK, we have a four-week maintenance at Wilton 10, right, towards the middle of 2026. It will not be a very material earnings impact, five to ten million dollars.

Okay. That ends my presentation, and we can open up for Q&A.

Thank you, Kim Yin and Eugene. We'll now proceed to the Q&A session.

For those in the room, you can raise your hand and a microphone will be handed to you. Please state your name and the organization that you represent.

Just for those online as well, you can enter your questions in the Q&A box by clicking on the Raise Hand icon on the webcast page, and we will address them during the session. We'll start with those on the floor.

Maybe Zhiwei first.

Zhiwei from Macquarie. Thank you for your presentation.

I have, let's start with two questions first. First, China renewables, right?

It's been three years, and the curtailment issue has not improved. I think about a year ago you said that the curtailment issue maybe hit about 1 percent of your earnings, but it seems like if I heard correctly, about 30 million delta for this year.

It's coming up to almost 3 percent. How are you thinking about the entire business if things do not continue to deteriorate, right?

What are sort of your thinking around how to mitigate this risk further? Then, from your point of view, where do you see us sitting in this entire down cycle for China renewables?

Are we at the bottom, or near the bottom, and can we, roughly just your sense, when do you think things will, see things will improve? Then the second question is on the gas and related service for Singapore.

You mentioned a decline in your gas margin. Can you run us through with a bit more color on what changed?

Because this is a pretty significant contributor to your bottom line profit. How big was the year-on-year decline in the gas trading business, and how do you see the margins change going forward?

Because if I remember correctly, this used to be a high single-digit gross margin business, and then you moved it into a mid-teens, and where do you see it go now? Thank you.

Can I ask Alex to deal with the China question? Renewable East CEO, President, is here.

So,

can you hear me? Thanks, Zhiwei, for the question.

I cannot say for sure whether China has reached the bottom in terms of the curtailment, but let me offer some insights directionally where the government is going. What's really caused the curtailment, as we all know, is the surge in renewable installed capacity, right?

A lot of new projects. Just to give people some perspective, when we first started the journey in 2021, the renewable solar and wind, onshore wind, was growing roughly about 120 gigawatts a year.

2021, 2022, plus roughly about 120 gigawatts. What happened was in 2023, we saw a surge in the renewable capacity to roughly about 300.

Just to give you some perspective, 300 gigawatts a year, 2023, 2024. In 2025, because of a change in policy, everybody was rushing to get their projects online by the middle of 2025 to make sure that they enjoy the existing policies.

Because of that, there was a mad rush, and the capacity actually surged and increased to roughly about 400 gigawatts a year, just to give you some perspective. What's going to happen is this.

I think we have to look at this from three perspectives. One is demand, second supply, and then what is the government doing in terms of making the grid more resilient, so that the grid is able to absorb all that additional capacity.

In terms of demand, as we all know, China continues to see a very strong power demand, roughly about 5 to 6 percent a year, driven by electrification, EVs, and AI, right? That's one: demand continues to be very strong.

On the supply side, there is a new government policy that states by 2035, renewables is going to get to 3,600 gigawatts, which basically translates into every year from now until 2035, renewables will slow down to roughly about 180 gigawatts a year, which I think will give the industry a bit of relief, right, from the 300 to 400 gigawatts a year of growth today to roughly about 180 gigawatts. So 180 gigawatts is still a big number, but if you look at it, China has a big base right now.

I think 180 gigawatts is not a bad number in terms of where the government is taking this directionally. Then the third is: what is the government doing in terms of making the grid infrastructure more resilient, which is essentially one of the issues, to move the electrons from the west to the east.

The government is going to pour in 4 trillion RMB, which is roughly about 700 billion Singapore dollars, over the next five years. That's a lot of money, right?

That investment will include things like transmission lines, which is important because they got to move the electrons from the west to the east, which is essentially one of the biggest problems that China is facing today. The second thing is they will also put money in transformers and, all kinds of nuts and bolts to make the grid infrastructure more resilient.

The last but not least is there is also another new — we are catching up, right? There is also another new policy in November 2025 that encourages data centers to be built in the northwest.

I think that's also important because that additional power demand in the west is going to absorb the additional power supply. Again, just to get everybody on the same page: demand is going to continue to be strong, 5 to 6 percent, driven by electrification and AI.

Supply will slow down based on new policy to roughly about 180 gigawatts a year until 2035. Then the third is the government is going to pour in roughly about 700 billion Singapore dollars on the grid infrastructure.

The last one is the latest news in November, which is encouragement of data centers to be built in the west.

To first put in perspective, of course, the 30 million, a good part of it — Eugene was just telling me between a quarter to a third — is actually new. It's coming from Guangxi, and that one is because they've got a lot of hydro, heavy rainfall.

That might not repeat, right? Then the rest of it is coming from the northwest, largely.

The northwest, that's the part that, subject to the transmission, subject to the new demand coming, anybody's guess, right? If you ask me whether it has hit the bottom, maybe?

How much longer it will last? For our planning purposes, we are saying that for 2026, we are not counting on it to flip around, right?

Hopefully for the near term, that puts additional color to it. Now you take another step back — for us, it has gotten to this point where it is, earlier China portfolio supposed to be contributing 120, 130, just from the renewables.

Now it's at 80. It could get worse.

It's always possible, but it is quite beaten down already. For us, we are planning, we are not counting on it recovering in the coming year, right?

We'll have to see. Then in the meantime, your other part of the question, what are we doing?

Of course, pipeline. We are looking at other forms of managing exposure.

For instance, growth has also been very, very calibrated, disciplined, selective. Those are the words.

You don't see the type of growth anymore coming. We are also thinking about whether or not we could manage exposure through perhaps bringing in partners, looking at the capital structure, that kind of thing, right?

I'm not promising anything on it. We're saying that with the outlook as I described just now, we're not expecting anything to change for at least another 12, 18, 24 months.

Then you should be doing things in the meantime, right? That's what I want to suggest to you, without having anything concrete to show you yet.

The plowing with that type of outlook, naturally the management action must come in. That's on the renewables.

The gas, maybe Eugene,

link the gas margin. Zhiwei very astute of you to point that out.

I think for 2025, when we look across the gas, number one, we have the one-time upstream curtailment again. That was about 10 to 15 million.

Outside of that, from a gas margin standpoint, we probably saw a 25 to 30 million downside impact, okay? Now, what has changed?

I think the periods where you saw high double digits, actually higher than double digits, gas margins, if you are looking at the Singapore financials, which I know you always do, right? Thank you for spending the money to do that.

Then those periods obviously are periods where there is volatility in the index, right? When there is volatility in the index, it gives our gas — I don't want to use the word trading, but our gas business — the opportunity to, I think arbitrage is the right word, to basically look at opportunities to diversify gas and optimize gas cargo, right, and to have a larger amount of gas optimization earnings on top of what is contracted.

Now, of course, when you see that going through 2024, 2024 is still fairly volatile, and then when you come back into 2025, we are essentially seeing more stability between the JKM index and also across the Brent index of which our long-term prices were. Because of there is a lack of volatility, our ability to drive the same level of gas optimization or arbitrage gains is less.

Now the good news is that, across 2025, we have been monitoring the gas margins in the first half, second half. It has been stable.

Going forward, we don't expect the gas margins to be similarly impacted because it is trending more towards, our base contracted level of gas margins. We are not at single-digit gas margins.

We are actually still at the low double-digit gas margins. Yeah.

We're asking about the spark spread in the power side, or are you talking about gas?

You're talking about exactly what I'm saying, right?

Yeah. Sorry, thank you for the answer.

Just one follow-up. Coming back to China renewables, right?

If your curtailment stays at this low teens number for the next one, two years, and let's say things do not deteriorate further, do I have to worry about impairment of the China renewable asset base? If not, at what point do I start to sit up and pay attention?

Okay. I think in relation to our China asset base, we have always do very detailed impairment analysis, right?

I think where we stand right now, right, we do not see the need for any impairment because from a policy standpoint, right, and Alex, you can help me to elaborate more, that, the Chinese government has made a very strong stance that they will build the northwest interconnection lines, across to the eastern side of things. Now, the exposure for us for the very high curtailment, like I pointed out earlier on, it is really across the SDIC portfolio, okay, because that has a significant exposure to the northwestern side of things, and then also some of our Guangxi assets.

Now, of course, with that, we are confident, that within a certain level of visibility, the curtailment situation will abate as these interconnector lines are built up. Then the question is really about how long.

Of course, we do stress test, the outcome of our assets. The curtailment situation will have to persist for rather long, and I'm talking about many, many, many years kind of long, right, before you even worry about curtailment.

More specifically on the SDIC portfolio, if you recall, our debt is essentially one of our higher-returning portfolios, right? Where we entered in at 1.8 gigawatts, organically it grew to more than double in terms of capacity.

When we look at, our cost of investment for the SDIC portfolio, based on our analysis right now, it is very unlikely that it will hit any form of impairment, simply because, our cost of investment. Just to isolate, those are the two key impairment.

Alex, you want? You highlighted on the lines.

Okay. Yeah.

Nikhil, please. Hi.

This is Nikhil Bhandari from Goldman Sachs. Just sticking to renewables, but shifting from China to India renewable, when we look at the overall over five gigawatt under construction or secured portfolio, India is a big chunk of that.

It appears there isn't a lot of completion of projects happening in calendar 2026. It seems to be more heavy on 27, 28, 2030.

Out of all of that portfolio in India, what percentage has already the PPAs signed? What percentage already has the exit connectivity already secured, if you can help provide some color on that?

That's the first question.

Okay. Renewable, President, the use is...

Yeah. We, is in the best position to answer this.

Hi,

thanks for the question. I think maybe to start with the second part of your question first, of the roughly two and a half gigs of PPAs that are signed— I'm sorry, of two and a half gigs of pipeline — about half have PPAs signed, about 1.2, and about half are at the LOA stage where we are discussing with the various REIAs and the discoms.

As you might be aware, I'm sure, a few months ago there was a push by the central government to try and clear that backlog. That has had the effect because the PPAs, all the REIAs then went around and said, Okay, let's take a closer look at each of these LOAs.

There are active discussions going on, typically between generators like us, REIAs like SECI or SJVN, and the discoms who would be the offtakers. Fortunately, with declines in equipment prices since the time that these PPAs were entered into, most generators, including us, are in a position to offer more tailored offerings within the same tariff range to the discoms.

Those discussions are proceeding and, of course, as and when we sign the PPAs, we'll make the necessary disclosures. About half and half on the first one.

Your observation on the pipeline is absolutely right. The way we look at it is that there will likely be some of our projects that are at advanced stage of construction will get completed in 2026.

The bulk of the pipeline will indeed be 27, 28, thereafter, largely constrained by grid capacity availability or connectivity availability. These estimates that we do are after we take into account whatever grid delays and happy to have a deeper discussion on that, but what we are seeing is considerable all-of-government effort across the central government, the state governments, the local governments to try and de-bottleneck the grids.

In fact, if you look at the Electricity Act amendments that are now proposed, which are widely circulated in the public domain, special powers to governments to acquire land and get grid done have also been included there. I think coming back to the effect on us, the way we look at it is it actually gives us a little bit of that respite to make sure that land acquisition, which is usually one of the bottlenecks for any renewable power development, we actually get much more time to do our land acquisition and be very true to our intent, which is to have 100% land acquired before we break ground.

That is now what we are seeing in the projects that are coming forward. Actually what ends up happening is, say for a solar project, even a large one, let's say 400-500 megawatts, the actual construction time is rarely more than a year, or at most a year and a half.

Whereas the total elapsed time may be two, three years, maybe even sometimes a bit more. Actually what we get is good enough time to get the land done, get the engineering done perfectly, get the EPC done perfectly, and then move on from there.

Is it fair to say the projects we have until 2028 commissioning estimate has most of the land and the connectivity already secured?

Connectivity is 100% secured. We don't.

In fact, we have connectivity available for which we are yet to conclude PPAs. That part is clear.

Land, very, very advanced. We are now, I would say, very vast majority of land already done, and the rest will be done before we break ground.

Another question just sticking to India renewable business. We heard a lot of news flow around some renewable power curtailment in India last year, especially concentrated in Rajasthan, Gujarat area.

We also started hearing some of the newer PPAs being signed have some curtailment clauses in it, up to 100 or 170 hours in one of the PPA, which is in the public domain signed. I'm asking this question because coincidentally maybe India has also hit nearly 50% of the power capacity mix as renewables and hydro, which China hit that number probably three to four years ago, and that was the beginning of a curtailment phase in China.

How do you think about the risk of grid absorption curtailment risk in India, given the system is so heavy now on renewable and some of the weather-related power generation?

Thanks. That's also a very germane issue.

For us in India, it works a little bit differently. The curtailment that has been talked about in the press and is part of a lot of concern for many people is basically when projects connect to the grid on a temporary connectivity.

We call it TGNA. When you have temporary connectivity, then the grid's obligation is to give these projects connectivity on a best effort basis, but then all bets are off as far as curtailment is concerned.

The moment there is any sort of congestion, those get backed down. Our projects are all on permanent connectivity.

The moment you have permanent connectivity, any commercial backdown due to congestion or due to commercial reasons like demand is recoverable by the generator. The only reason that grid curtailment can happen as per the PPAs, once you have permanent connectivity, is when there is a specific grid security issue, which typically will not occur for more than a very, very short period, typically a few hours here or an hour there.

The numbers that are being floated around in the press have nothing to do with our portfolio. If I look at our Rajasthan portfolio, I don't think we've actually disclosed these numbers, but I think it's fair to say our curtailment on that, including what we will recover back, part of which we'll recover back, is below 1% at the moment, and that too a large part will come back.

Just combining previous China-related questions and the questions related to India, given China we still expect some more deceleration in the earnings this year, and given there are more limited new project completions in calendar 26, should we assume any growth in the renewable business earnings in calendar 26? Also, while we don't assess any impairment risk right now, can we quantify, what percentage of our receivables, for example, are related to the China renewable business, or any quantification if you can help us provide on the China exposure in the overall balance sheet?

Thank you.

I will ask Eugene to address that, but before we move off the topic of the development pipeline in India, hopefully what Vipul has described to you is that when we come out and tell you that there's X gigawatts that's under development, relative to maybe what other people might be talking about as pipeline, the quality and the certainty that is behind it, you have to form your own judgment from what Vipul is telling you, right? I think Nikhil's question is actually very straightforward.

He's saying that, look, you tell me this pipeline, how much is it going to come? When is it really going to come?

Later are you going to say that, look, there's no connectivity, there's no land, there's no PPA, and so on. Without giving you a straight number, we are giving you the conditions under which we are, the way we develop projects and the risk that we're taking or not taking.

Hopefully, I like to think that we are actually relatively, when we say there's a pipeline, our pipeline is relatively of a much higher quality in terms of certainty and deliverable, right? On the, is there any guidance Nikhil was asking for in the renewables earnings growth?

I think going into 2026, renewables as a portfolio, we think from an earnings perspective, it will likely be flattish to slight upside. Now, because there would have been better growth, but I think the reality is that we have hit with another 12 million downside because of the VAT policy change, which came through, unfortunately towards the later part of Q4 of last year.

As a result, we think renewables, flattish to a slightly positive. I think for China, I just want to characterize the issue.

I think from a renewables book value standpoint, it stands roughly from a Sing dollars perspective, 1.8 to 2 billion, right, of investor capital from equity standpoint. Now, from a receivables, the receivables that are exposed, which is largely in our Hyme portfolio, that has not really cleared, that has not been given a green quote in the subsidy audit, is around 350 million SG dollars.

The total subsidy receivables on our books really is approximately 370, but those pending subsidy audit is about 340 to 350 million. Of course, we have made provisions against them.

Provisions to date is about 43 million against that gross amount. Now, I think in relation to that, we continue to press respective authorities on being able to release those projects sooner rather than later.

I think what we have noticed is that for projects that have cleared the subsidy audit, they are actually paying down their receivables fast. This is empirical, right?

Because in our own portfolio, in our own Hyme portfolio, the amount of subsidies receivables collections in 2025 was about 1.7 times that of 2024. We see it accelerating, no doubt.

In our JV portfolios, we also see their subsidy receivables collections in 2025 roughly double that of the year before. I think there is a clear effort from the Chinese government to clear the subsidy receivables, and we are certainly hopeful, while we continue to provision against it, the subsidy receivables that has not yet cleared the audit.

Yeah. Immediate 12 months renewables, we won't be seeing a lot of growth, but we're very comfortable because the pipeline is strong, and we've got new markets.

Middle East, in addition to India, is actually very active, if I have to use that word, as you would know. Also now, Australia is coming in.

We think, I'm not too worried about the 2028 target, if that's a follow-on question.

Maybe also just to add, what we are seeing, particularly in India, but also in other markets, is many competitors have overextended themselves, and there are now assets available, which makes sense for us. We are now in a position to be able to acquire at attractive prices, add value through refurbishment and operations as we find the opportunities.

That's the other one. These are all the way from relatively small to relatively meaningful opportunities.

No, no, but the lady, she has sat down for a while. Sorry, Suki.

Hi, this is Rachel from UBS. I'm very sorry, Siew Khee, for hijacking you.

I have two questions. The first one is that on SEI's Ex-Senoko power plant contracting profile, does this include the new 600 megawatt plant?

Because in H125, only 13% of the portfolio had expiry profile of zero to five years, and now it's 21%. I'm trying to reconcile that.

That's my first question. My second question is, what's the principal payment for the DPN versus the interest payment?

Thank you.

When we say 80% contracted five years or more, it's 80% of what? Does it include the 600 megawatt?

Maybe if you bring up the slide, Eugene.

okay. You are referring to the Sembcorp only contracts contracting, where zero to five years has gone up to 21%.

I think there are a couple of effects there, right? Number one, mainly it is due to, high...

Basically, we are also contracting a little more in terms of volume, right, because we have secured more contracts that are of a shorter-term nature as well. Essentially, from a contracted perspective, historically, when you saw that 13%, that was of a contracted capacity of about 960 megawatts or so.

I think we have also increased contract levels at the shorter-term level. It has gone up to about close to 1,200 megawatts already.

That's on the Singapore side.

The base is 1,200 megawatts. Today, our existing portfolio is less than 1,000.

When we showed the guidance earlier on at half year, where it was at 13%, right? At that point in time, the contracted capacity for generation was about 960 megawatts, right?

We did say that it's one of our intent to sign more contracts. Even over our Singapore portfolio, we have contracted up to 1,200 megawatts already, and some of these are shorter-term contracts, because we do want to increase the contract levels, and hence you see the zero to five years increase to 21%.

Essentially this 21%, but the total base of this is no longer 960; it is now about 1,200. In a way it has included the 600.

In a way it hasn't. You see what's going on?

Because what we're saying is that we want to sell 1,200 megawatts, of which some are long contracts, some are shorter contracts. What happens is that when a new plant comes in, because this is much more efficient, what we'll do is that we back out some of the older ones.

We can't... I would guide you to not say that, look, when the new plant comes in, then suddenly our megawatts will go up by 600 megawatts, and then our revenue is supposed to go up 600 megawatts.

It doesn't work that way, right? It's a portfolio.

What Eugene is saying is that, yes, it is in there. Because part of the 10-year contract and the five-year contract will be served using the new plant, right?

No, it is not in there. We didn't add it up in blocks like that.

Hopefully that clarifies it.

I think, Mun Cheng, you have heard me talk about this, because you stumped me a little bit, because we don't think in terms of, Oh, this plant, and I contract for this plant, right? We think it's, okay, our capacity is 1,200, potentially going up to 1,800, but today if we see opportunities to contract ahead, over-contract with a forward start, then we will just increase our contract portfolio.

I think maybe the first time we told them, it's 1,200.

Maybe, Eugene, we note to put a footnote or something.

A question on the DPN.

Okay. For DPN, for the principal and interest payment, I think, Rachel, in general, we don't...

there is no fixed principal payment, right? Essentially, if you look at the mechanism, how it works is that whatever equity cash flows is generated at the plant level, it will be a full sweep of the cash, leaving 6.75% of the equity cash flows to the owners, right?

I think in general that is the basis. We have not...

there is no fixed principal repayment. I think what we can look at is, over the principal paydown standpoint, over the last three years, we have collected $1 billion, of which the principal has run down from roughly $2 billion at the start of the period to about $1.3 billion currently.

Which means that on average, the principal paydown is about $300 million a year. I think going forward, we do expect the SEIIL equity cash flows to be similar, simply because they are covered by long-term contracts.

That would roughly be the paydown. Interest cost is still around 8.75% to 8.9%.

Sorry, Siew Khee. Hi, thank you.

Siew Khee from CGS-CIMB. I have two questions.

On gradual increase in the dividend to benchmark against yourself with peers, who are the peer group that you're looking at? Are you looking at yield or payout?

Given that your earnings base is potentially stable at a billion, would you target to increase your yield to about 5%? That's my first question.

Second question is, thanks for guiding us on the spark spread. With much more power coming into the market, would you be able to hazard a guess on what would be the spark spread into 2027?

I remember previously we were hoping to actually get more long-term contracts, or convert some of the short-term contracts from Senoko to long-term. How realistic is that?

Thanks.

I think in terms of the dividend benchmarking, Siew Khee, we look at the benchmarking in two sets. One is across more broadly STI comps.

Of course then within the STI comps, we look at both payout ratios as well as dividend yield. Excluding REITs, we do notice that average dividend yield is around 5%.

Our yield is about 4% or so. We're hesitant to say that we are targeting a yield, Siew Khee, because my payout ratio is kind of low, right?

We are at 40-ish percent right now. Though we do note that, number one, the average STI broader comps, their payout ratios are 60% or more, right?

Then if we compare to a closer TLC industrial companies, right? Who they are.

Just to name a few, includes Keppel, includes ST Engineering. Their payout ratios in the longer term are in excess of 70% or so.

These are some of the guidelines that we are looking at. Now, we also benchmark payout ratios as well as dividend yields to a broader gencos, both, Asia-Pacific as well as European players.

In those situations, we do see average dividend yields also in close to a 5% range, and average payout ratios for those in the 60% to 70% range as well. I guess this is to guide you in terms of how we think in terms of the payout.

Now, I just want to caution a little bit about the yield perspective, because at the end of the day, while those are guidelines for ourselves, we are still focusing more on the absolute dividend and sustainable and growing over time. I guess the key point to note is that where the dividend is, going forward, we will have the ability to grow it, both from an earnings perspective and also looking at where our payout ratios stand relative to those benchmarks that I mentioned.

In the Singapore gas market, gas-fired power market, what will be the spreads into 2027? I don't have a crystal ball at the moment.

If you go out there to contract, you're getting mid-30s, right? That's, you could see that still okay, right?

The part that I described just now, that are going into new contracting, will be contracting in that range. The 40-some percent in Senoko will be contracting into that range.

The 5% from the Sembcorp portfolio will be contracting into that range. What is the outlook for longer-term contracts?

Actually Singapore market is very small, right? It is quite binary.

If you secure the customer, like in our case, Micron, Singtel, then suddenly there will be one big chunk that will come in, right? There is a group of customers that will be prepared to sign long-term contracts, and that group of customers is a finite universe today, even as the new data centers coming in to increase that pot.

What we're saying is that, as I mentioned at the beginning of my delivery, we are very well positioned to chase after both the existing ones as well as the newcomers. What is really specifically to Senoko?

You will see, I'm very confident to say that we will be able to increase Senoko's pie chart to look a lot more longer term than what it is shown today, but I'm hesitant to tell you exactly how much, because it depends on the lumpy big customers that will come in. If you think about it, and they are indeed lumpy, right?

Because when a data center comes along, it's 30 megawatts, 50 megawatts, and so on. It will suddenly shift the profile of that donut over there.

Sumedh from JPMorgan here. Just have a couple of questions maybe on capital allocation.

Do you think currently you have any non-core assets that may be up for disposal? The other businesses, even the UK plans?

Any thoughts on that? Also you did mention that actively looking at capital recycling in India.

May I ask what's the progress there and any timeline you have in mind? Perhaps my second and more housekeeping question: I think in one of the slides, you mentioned that one-third of DCs being catered by gas and related segment.

Is that your own business, or are you talking about the broader Singapore market? Thank you.

The first question was non-core assets for disposal. I was trying to look at Eugene and he was trying to look at me.

Now, the portfolio in Singapore, I think we manage the entire portfolio for value. I just want to reassure everybody, that's the first thing.

Over the last five years, we have made several changes to the portfolio. See Ho Man?

If you have questions, we can follow up later. I think we already reorganized ourselves into the three big business segments: gas-related services, renewables, as well as IUS.

Most of the contributors are actually squarely slot into them. In the long run, we do not have—I don't want to, the smaller businesses, even if there is a non-core disposal, I wouldn't—I don't think it will be something that should bother you.

Yeah? Let's put it that way.

Now, each of the lines of businesses, they are all growing up, and as they grow up, as you rightly pointed out, the India IPO possibility, that itself is actually something that is much more symbolic and significant to the portfolio if it happens. In terms of—but to us, the India renewable portfolio is a core asset, right?

That's not a non-core. I wouldn't put that in the category of the first question.

Maybe the short answer to it, having thought very loudly in front of you, the short answer is no. Right?

The second one is in terms of capital recycling, we are thinking about it actually for the rest of the portfolio as well, including China, if the opportunity arises. Five years ago, I would tell everyone that, look, that is too small in most of the pieces.

Now India has grown up, and, China is in a certain state. When things are ready, we would definitely be managing them for value.

I just want to reassure you that in terms of actual timing, I am warned many times to not say that, because we have a plan, right? There are typical timelines in India, how quickly you can do certain things.

Of course, there is no certainty until the moment the button is pressed, right? There are people who built a whole plant and decided that, oh, this book doesn't look good enough, I don't want to do it, right?

You can—we, I don't think we would have the ability to do things much faster than the next guy who is filing. Let's put it that way.

If you apply the usual timeline, that's a good way to think about if it happens. Sorry, I'm not answering your question.

I'm struggling a little bit, but I have got strict rules tying my hands behind me. Sumedh, do you have any other?

I just had that quick follow-up. I think data center slide.

I think the slide that you mentioned where you have AI opportunities and I think in gas and related segment, you show that one-third of data center, yeah, this one and that first bullet. I just want to understand what it represents.

Is it like for Singapore data centers, is it one-third of demand being catered to by your own plants? Is that what you're referring to?

Sorry, I forgot about that. Oh no, just to be clear, this one is we have highlighted that, maybe we were not so clear in this bullet.

We are supplying power to one-third of the current data center in Singapore. Singapore, 1,400 megawatts of IT capacity, PUE is probably 1.25, 1.3.

I think it's 1.3, right? Then, you multiply that, that is the quantity that we are supplying to.

It's fairly strong, right? I think it's also instructive to note that the one-third of our capacity that we capture for these data center companies, they are of longer-term PPAs, right?

Our understanding is that the other two-thirds, they are not really covered by long-term PPAs of our variant. Yeah.

Do you want to take that? Performance highlights from Alinta in second half of 2025.

Okay. I think, Mayank, in relation to performance for Alinta, we certainly have not completed yet, but I think, we will be in a position to speak more about Alinta once we have completed the acquisition.

You would imagine that, we can't. Okay?

We just can't. Now, of course, you could draw broader market performance from the listed guys, right?

You've got Origin, you've got AGL. May not be directly comparable.

You will just have to bear in mind that if there's any earnings volatility as a result of cost of supply, that is not an issue for Alinta. You can take guidance from where the other two guys are, how they are doing.

Of course, pressure, if there is any volatility caused by cost of supply of electricity, we will be a lot more insulated because we are very long.

Yeah. When we talked about the Alinta acquisition, we showed the historical earnings profile, right?

Yes, that's right.

So 2024, we also showed the pro forma,

no? Yeah.

In 2024, from an underlying earnings standpoint, they are doing about 400-plus in

400-plus. If there is, they're not going to suddenly go to 600, they're also not going to suddenly drop to 300.

Yeah. Okay.

You can apply six months, you overlay with the amount of debt that we're putting on top of it, which we have already disclosed, right?

The level, we do expect the level of accretion in the second half of 2025 to be similar to what was disclosed.

Yeah. To also point to the fact that because their first half is their winter, typically the first half is stronger than the second half.

Yes. Sort of 60%, 60 to 70%, 60% in the first half, 40% in the second half, right?

Hopefully that helps, Mayank. Any battery investment in China, even if there is, it will not move the needle, right?

He is being very kind. Thanks, Nikhil.

He's being very kind. He's saying that, hey, look, in your procurement, maybe you should buy some batteries so that you don't waste the power.

Thank you for that. UK impact on earnings, Mr.

Cheng?

I think, as highlighted earlier on, the UK gas business, right, in 2025, we saw a 20 million impact for the UK gas business. Now, of course, when we look into 2026, there are headwinds and also positives.

The headwinds, of course, the customer demand continue to be under pressure, simply, and power prices as well, simply because some of the key customers in Wilton, they are petrochemical players, and we all know that the petrochemical sector is under pressure right now. That is the headwinds that we expect going into 2026.

Now, of course, we are excited because the value of powered land, particularly for data centers, is important, and Wilton is powered land, right? We do, at a very initial stages of engagement, have seen DC players' interest in our UK Wilton site.

We hope to be able to see more developments there. Of course, barring positive developments on the DC capacity, we do expect UK to continue to be under pressure as we go into 2026.

end? Luis, to answer your question on the first point, I think from the second half 2025 going into FY 2026, I wouldn't say that we could use that level because a couple of things you have to bear in mind.

Number one, into 2026, roughly 3 to 5% of the Singapore portfolio will be up for renewals. Those renewals would be at roughly $35-$30-35 type of spark spread.

That will be coming off historical high short-term contracting spark spreads of $70 or so, $70 to $80. That's one impact.

Second impact is for Senoko. We did highlight that coming into 2026, you have a full-year impact of roughly 20% of the portfolio that was renewed in the second half of 2025, right?

Also $30-35 spark spread. In 2026 itself, we would have about 47%, close to 50%, of the Senoko portfolio that will be up for renewals.

Indications clearly show that spark spreads will be around $30 to $35. You do have to factor that into your outlook for 2026.

Now, for the exceptional expense of $208 million, it will be reflected whenever the transaction closes, right? If the transaction closes in the first half, that $208, the bulk of it will be booked as exceptional items by half year.

If it does close beyond 30 June, then it will show up in the second half. It's really a timing-related.

Bulk of that is driven by stamp duties. It's really linked to the timing of the completion of the transaction.

I'd like to ask a bit more about the data center strategy in terms of supplying energy for DC CFA2. There is a requirement, I think it said at least 50% has to be clean power.

For yourselves, what sources of clean power do you yourselves, providing in terms of fulfilling this demand from DC CFA2? Also, I think for other markets in the region where you hope to power data centers, do you see it mainly being gas or more of renewables?

The specific requirements, or rather the requirements of the DCCCFA2, my understanding is that it's actually quite specific. It will have to be new sources, right?

It is not existing. My solar panel doesn't count.

Yeah. We are working with our customers who are interested to win the DCCCFA2 to provide them with new sources.

That includes green power from biofuel. That includes fuel cells, right?

The array of potential solutions that can qualify for this new green source, we actually have them as part of our toolkit to supply them. The question really is, for each one of them, because difference in size, difference in technology, different in their customer base, their appetite to absorb the cost from some of these new sources is different.

You can imagine some of these new sources is at higher cost than your solar, right? That's why what I'm trying to say is that we have those solutions and we're working with each one of them to tailor it for their specific requirements based on their affordability, right?

That's on that. Now, the other one I want to say is that for generically, like you say, whether it is in the region or even in Singapore, at the end of the day, data centres, they need very stable, reliable power, highly reliable, in fact.

They don't want interruption. The new sources generally, on the one hand, will put cost pressure.

On the other hand, very often it may not be as reliable, right? Certainly even if they are reasonably reliable, you still need the backup from existing sources, be it from batteries, be it from gas, be it from the grid, right?

This is where Sembcorp believes we are actually very well positioned, because we have the entire array. In Singapore, we have got the gas-fired power plants, we have our solar panels, we have the largest battery in the region, and then on top of that, we have got these new sources: biofuel, fuel cells, on and so forth.

We are able to say that, hey, look, even as you take the new source, we can supplement it and support it and provide insurance and reliability by giving you everything else, right? That is where we have the strength.

In the region, it is the same, right? When we go to Batam, this is something that we can offer, and our experience doing this is also giving them confidence, right?

If you're getting this from Sembcorp, that's one story. You're getting this from only a solar player, you might actually have to think twice, because, hey, how good are they even if they offer you batteries, right?

I've got gas, I've got other sources, and I have shown that I am able to keep reliability very, very high as a portfolio. That's where, even in places like India, not just Indonesia, we are seeing some of these demands coming, and we are on the slide that we show here, we are signing up, actually beginning to sign up some of them, right?

Coming back, I also want to make that point. I want to reiterate the point that by the time we see the demand from the AI side, we are seeing the real thing.

This is the solid demand. This is not the fluff.

Because I'm very worried that people say, Oh, this Sembcorp suddenly turn around and want to enter into the AI space, are they going to catch the froth and then get caught up? No, no, no.

By the time it comes to us, it is a solid energy side of the demand, not the AI demand. We don't take that risk.

We are selling power. We are selling reliable power, and we demand and expect that our customer is a reliable paymaster.

I understand you have import licenses from EME, right? For Sarawak and also from Vietnam.

Would the new sources that you supply to DCCCFA2 also include, green power that you are importing?

My understanding is imported green power doesn't count. Oh,

it doesn't?

Oh, okay. Yeah.

We can confirm that after the meeting. My understanding is that they don't count.

If they count that, we also have that, right? In fact, last year we imported some, and then that contributed to some of my losses in the previous year.

It was a good, what, 40 million. Yes, the Malaysia one.

I'm glad that it's almost over. It will not weigh so heavily onto 2026 anymore.

Any other queries?

Right. Again, two things to take away, if I may.

In terms of returns, can expect dividend to steadily sustain and grow, and we recognize that we are behind the curve compared to our peer group in terms of payout, in terms of yield. Because of our strong balance sheet, strong cash flow, we are very confident increasing the dividend along that path to cover that gap.

That's the first thing. Then in terms of growth, at least for the next few years, we've got new markets that we are venturing into, and we are seeing success.

In the case of Australia, there's Alinta, very skilled, very committed to decarbonization, and also very energy short, right? In terms of other greenfield opportunities other than a very hot India market where we are strong establishment, there is also Middle East that is giving us the pipeline.

There is returns, there is growth. The near 26, we will have headwinds, but we are very confident settling into 26 and beyond.

Thank you very much. Thanks.

Is there food outside?

Okay. Sorry to hold you.

There is food outside, and, please feel free to help us consume it.