Good morning, everyone. Welcome to the KIT 1H 2026 results audio webcast.

I'm Marilyn of the IR and sustainability team. Joining me today from the KIT management team are CEO, Mr.

Kevin Neo; CFO, Mr. Raymond Bay; and Director of Portfolio Management, Mr.

Tham Chin Ta. They will cover KIT's 1H 2026 highlights and business strategy, followed by business performance across the portfolio, and close with capital and balance sheet updates.

Please leave your questions for the Q&A session at the end of the presentation. For analysts who are joining us on the MS Teams platform, please check that you are on mute throughout the presentation.

For those joining us online via the webcast platform, please type your questions via the chat box provided. I will now hand the time over to Kevin for the presentation.

Kevin, please.

Thanks, Marilyn, and good morning, everyone, and thanks for joining us today. As the largest SGX-listed infrastructure business trust by enterprise value, we own and manage a portfolio of essential infrastructure assets across energy transition, environmental services, distribution and storage, and digital infrastructure valued at approximately S$9.4 billion as at 30th June 2026.

Year-to-date, we achieved total returns of circa 13%. Over the past decade, KIT has delivered total returns of 136%, demonstrating our ability to create value across market cycles, underpinned by a strong track record of over 19 years of infrastructure investment and management.

KIT's key achievements during the first half include the following. First, DI before divestment gains increased by 1.2% year-on-year to S$101.1 million, despite the fuel cost under-recovery for City Energy.

We are declaring our 1H 2026 DPU of 1.99 cents per unit, maintaining our commitment to deliver sustainable distributions to unitholders. Second, we continue to execute on our capital recycling strategy.

To date, approximately 80% of the net proceeds from divestments have been redeployed into two accretive acquisitions, namely the acquisition of a 46.7% stake in GMG, and the follow-on acquisition of KMC, which increases our stake in KMC to 90%. Third, capital management remains a key strength.

We have successfully secured 100% of FY 2026 refinancing requirements ahead of maturity. Our interest coverage ratio has improved to 8.3 times, reflecting the strength of our cash flows and disciplined financing approach.

Finally, we are heartened that the positive unit price performance and the consequent total returns of over 13% in the first half of the year reflects continued investor confidence in our strategy, portfolio quality, and execution capabilities. Amid the ongoing Middle East conflicts, direct exposure is limited, and more importantly, we have not experienced operational disruptions across our assets.

For AGPC, there has been no disruption to gas supply or operations. Across the portfolio, most businesses operate under long-term contracts and benefit from cost pass-through mechanisms.

Whilst higher fuel and energy prices may create temporary under-recoveries, particularly for City Energy, these effects are generally recoverable over time. At this stage, we remain comfortable with the resilience of portfolio cash flows and continue to monitor developments closely for any second-order effects.

Our investment strategy remains focused on sectors supported by strong structural tailwinds of energy transition, rapid urbanization, and digitalization. These themes are expected to require significant long-term capital investments and create attractive opportunities for KIT.

Our focus is on owning essential infrastructure assets and businesses with good cash flows in developed markets where regulatory frameworks are stable and predictable. Combined with Keppel's operating capabilities and ecosystem, this provides a strong foundation for sustainable growth.

We apply a disciplined investment framework when evaluating opportunities. Our focus is on assets that provide essential products or services, generate stable and growing cash flows, offer attractive risk-adjusted returns, are DPU-accretive, possess high barriers to entry, and have either evergreen characteristics or long asset lives.

This framework guides both acquisition and asset management decisions and directly supports our goal of delivering sustainable distributions and total returns. Next, a key feature of KIT's strategy since 2019 has been active portfolio management.

Through disciplined acquisitions and capital recycling, we have consistently replaced earnings from maturing concession assets with earnings from businesses that offer stronger growth prospects into the long term. As a result, portfolio DI has grown at a CAGR of 8.5% since 2018.

In FY 2025, approximately 51% of distributable income was generated by evergreen assets, as compared to 29% in FY 2018. This strengthens the sustainability and quality of our earnings base.

Beyond acquisitions, active asset management remains a significant source of value creation. Across businesses such as City Energy, Ixom, and Ventura, management teams look to deliver continued EBITDA growth through initiatives including new revenue streams, bolt-on acquisitions, productivity improvements, technology adoption including AI, organizational optimization, and cost management initiatives.

This focus on operational excellence enhances cash flow and supports long-term value creation for unitholders. Looking ahead, our priorities remain unchanged.

Our objective remains on achieving sustainable DPU growth and higher total returns for unitholders. First, continue disciplined investment and capital recycling, focusing on assets aligned with our target growth segments.

Second, drive operational excellence and pursue margin improvement opportunities through cost optimization and revenue enhancement for our evergreen businesses. Third, maintain active capital management to support stable distributions and future growth.

We have already deployed approximately 80% of divestment proceeds and will continue to evaluate opportunities for the remaining capital. Lastly, these key priorities position us well to navigate near-term uncertainties while staying focused on our objective to deliver long-term value to unitholders.

With that, I'll hand over to Chin Ta for the 1H 2026 business updates for the KIT portfolio.

Thanks, Kevin. Hi.

I'll take you through the KIT portfolio business updates in the next few slides. City Energy delivered stable operating performance during the first half.

Town gas consumption remains stable, supported by continued adoption of residential gas water heaters, which helped offset softer visitor arrival trends. While the Middle East conflict resulted in fuel cost under-recovery during the second quarter, active management actions and cost optimization measures helped contain the impact.

Looking ahead, management will continue to actively manage fuel cost recovery while staying focused on pursuing growth opportunities and strengthening performance. Moving on to Ixom, the company continued to demonstrate resilience and operational strength in the first half.

Core chlor-alkali and traded businesses performed well, supported by healthy customer demand. The team's multi-supplier strategy allowed it to navigate supply chain disruptions arising from geopolitical developments with minimal impact.

Management remains focused on driving synergy benefits from recent acquisition, improving productivity, and optimizing the portfolio through rationalization of non-core operations. Moving on to Ventura, the company delivered another strong operational performance during the period.

For the MRSC business, service reliability remained at 100%, while on-time performance exceeded 90%. Meanwhile, revenue within the government contracted business continues to benefit from contract indexation and network expansion.

For the non-MRSC business, Ventura completed the acquisition of Crown Coaches in July 2026. This supports the strategy of growing the non-MRSC segment through both organic and inorganic initiatives.

On EMK, the company continues to execute its strategy of enhancing profitability while expanding its incineration capacity. For landfill, pricing remains flat from first quarter, and management has maintained pricing discipline to preserve long-term value of the business.

In incineration, management continues to focus on improving incineration pricing mix and operational efficiency. Looking ahead, phase one of the incineration expansion has commenced and is expected to complete by the end of 2026, creating an additional growth driver for the business.

Lastly, on GMG, the company continues to perform in line with expectations following our investment. The fleet remained fully utilized throughout the period, supported by long-term maintenance and charter contracts that underpin recurring cash flows.

Management is also progressing with vessel expansion plans to support future growth. Across our remaining portfolio assets, performance remains stable.

KMC achieved 100% contractual availability, and following our recent acquisition, KIT now owns 90% of the asset. All contractual obligations with the regulators were met for the Singapore waste and water assets, and management continues to pursue potential opportunities for concession extensions.

AGPC continues to operate normally with no supply or operational disruptions. Within renewables, BKR2 benefited from stronger wind conditions, driving significantly higher generation compared to the prior year.

Overall, these assets continue to provide diversified and resilient cash flows that support distributions. I will now hand the presentation to Raymond for the financial and capital management of KIT.

Thank you, Chin Ta. Moving to next page, turning to the financial performance, total asset FFO increased 14% year-on-year to $200.5 million.

The growth was mainly driven by stronger contributions from the energy transition and distribution and storage and digital segment. After maintenance capex and debt repayments, the total asset DI remained resilient at $147.5 million.

At the trust level, distributable income was $101.1 million net of corporate costs. Excluding last year's divestment gain, distributable income for first half 2026 increased by 1.2% year-on-year, highlighting the resilience of the underlying portfolio.

Moving to next page, the consolidated debt for KIT increased slightly to $3.28 billion as at 30th June 2026 compared to 31st December 2025. Net gearing increased to 44.2% from 31st December 2025.

This is mainly due to reduced cash position post distribution paid in February and the deployment of capital into acquisition of an additional 39% stake in KMC. Nonetheless, the net gearing ratio does not reflect the fair value of KIT's asset and remains within our targeted range, providing meaningful acquisition capacity.

Interest coverage improved to 8.3 times from 7.6 times as at last year. The group weighted average cost of debt is stable at 4.4%, with some savings at the trust level achieved through proactive refinancing and disciplined capital management.

The portfolio remains well-hedged, with approximately 77% of debt hedged and nearly 79% of cash flow distribution hedged. Moving to next slide, we had successfully raised $200 million 7-years MTN funding earlier this year, and therefore, the funding is secured for the December refinancing needs.

Together with the available committed facilities of approximately $300 million, this positioned us well from a liquidity and funding perspective. Our capital management priority of maintaining strong liquidity for financial flexibility remains unchanged.

This is done through growing cash flows, optimizing financing costs, and disciplined capital recycling. I will now hand the presentation back to Kevin for the closing.

All right. Thanks, Raymond.

To conclude, the first half of 2026 demonstrated the resilience of KIT's portfolio and the effectiveness of our disciplined investment and capital management approach. We continued to execute the strategy of delivering sustainable distributions and long-term total returns through disciplined capital allocation, active asset management, and prudent capital management.

Despite the ongoing conflicts in the Middle East, the portfolio demonstrated resilience, supported by the defensive nature of our assets, long-term contracts, and diversified cash flow base. We delivered growth in underlying distributable income while executing on our capital recycling strategy, redeploying 80% of divestment proceeds into accretive opportunities that enhances the portfolio's long-term growth profile, all while maintaining balance sheet strength and securing our refinancing needs.

Looking ahead, we remain focused on disciplined capital allocation, active portfolio management, and value creation to deliver sustainable returns for our unitholders. Thank you, and we'll be happy to take questions.

Thank you, Kevin, Kevin Ta, and Raymond. We will now proceed to the Q&A session.

Analysts, if you like to ask a question, please click on the raise hand button and wait for our cue before you post your question. May we have the first question, please?

Hi, Yuzhen.

Hi. Thanks management for presentation.

I have two questions. The first one is on GMG.

Just now it was mentioned that this company is expanding their vessels, wanted to know whether there will be any capital calls to KIT when that happens, and if so, what kind of timing? The second question is Keppel, your sponsor, has a number of subsea cables, wondering whether these cables would fit into KIT's investment mandate.

That's all from me. Thank you.

Yeah.

I think we do see a lot of growth in GMG. I think we mentioned in a couple of calls during our results that we have acquired a second-hand vessel that are in the process of being repurposed into a cable-laying vessel, right?

That requires capital from the shareholders, and KIT have funded that using a debt facility. Again, just to be clear, right, GMG has a debt facility at the GMG level, which will be used for funding growth capex and so on.

To the extent that requires additional equity from the shareholders, that will be funded via I think debt facilities at the KIT level. There should not be any impact to our operating cash flows and so on.

With regards to the submarine cables, I will say that submarine cables is a sector or asset class that KIT that we are very interested in. Of course, my sponsor Keppel, they are doing very well with Project Bifrost.

I think they may have recently announced some sale of certain fiber pairs and so on. These fiber pairs, we do expect them to be sold on a IRU basis, which basically means that the opportunity sets for KIT to come in is quite limited, right?

However, there are other submarine cables out there that KIT could look to acquire. I think as a whole, we are quite interested in the digital infrastructure sector.

Submarine cable is just one part of the entire value chain. I think we are equally interested in terrestrial networks, mobile towers, and so on.

Yeah.

Just one follow-up question on GMG. You mentioned that if it requires capital, it will come from the debt facility.

For the debt facility at the GMG level, is it recourse to the shareholders?

No, it's not recourse to the shareholders.

Thank you.

In terms of sequence of funding, we always look to the business to fund itself, right? I think when we bought the asset, or bought the stake in GMG, we did highlight that there's a lot of growth opportunities out there, and to the extent that the debt facilities are insufficient, KIT, we are happy to support that because there is a lot of good growth out there in the sector.

That's all from me. Thank you.

Thanks, Yuzhen. Shekhar, your question?

Thank you, Marilyn. Hey, morning, Kevin, Raymond, Kevin Ta.

I have two questions on City Energy. The first one is on the under-recovery.

Can I get a sense on when can we expect a full recovery? Will it be in the second half '26, or does it spill into 2027?

The second one is on the $4.5 million property tax refund. Is this a one-off?

If I could understand, what should be the clean underlying DI run rate if I could strip off, let's say, the under-recovery and this refund?

Yeah. For City Energy, and as a quick recap, I think the under-recovery and over-recovery situation depends on actual commodity prices versus the price at which we set the town gas pricing at the beginning of the period, right?

In fact, at the beginning of the quarter, we had expected a larger-than-expected under-recovery. However, I think the company has worked on a couple of initiatives to close the gap.

As you can see in the results, the under-recovery has been pretty well managed. I think to answer your question on the property tax, it's one of the one-off initiatives that I think management has worked on to I think offset some of the impact of the cost recovery.

As to when the under-recovery can be recovered, I think ultimately it's a function of commodity prices going forward, right? Under the situation where commodity prices come down over time, we should be able to see an under-recovery over a period of time.

Over-recovery.

Over-recovery over a period of time.

Shekhar, yes, the property tax refund is one-off. We don't expect that to recur, right?

I think we have to see the whole thing in the entirety, right? We had experienced a certain amount of under-recovery in Q2, right, which is in a way almost offset by the property refund.

On a clean slate basis, I'd like to think that they are in a way a wash, right? Then for as well as watching that as mentioned, right, whether we will recover the under-recovery in the second half, I think that depends on the oil and natural gas price going forward.

I think it's really hard to predict how it will move because ultimately these are commodity pricing. Again I'll go back to the way how the tariff price is being set, right?

In the arrangement with EMA, right, let's say, for example, right, natural gas cost is a pass-through in a way to end consumers through a reference price. The reference price is set at the beginning of each quarter based on the commodity pricing for the previous quarter, right?

If the previous quarter, the pricing is high, then we'll enter a quarter with a high reference price that we will use to charge the customers, right? If during that quarter itself, natural price comes down, then that's when we'll go into a over-recovery position.

Because the gas price is high in Q2, we are entering or have entered Q3 with a relatively high reference price. Whether will we go into an over- and under-recovery position depends on the actual price of gas at that point in time.

Then again, this is as we have always emphasized, this is just a very mechanical arrangement of passing through the gas price to end consumers. Whilst we may experience over- and under-recovery in certain quarters, but we do expect to recover them over a period of time, maybe two quarters, three quarters, thereabouts, and so on.

Hopefully this gives you a bit of guidance on the outlook for the over- and under-recovery.

Okay. Thank you, Kevin.

Just a quick follow-up. How should I look at second half DI for City Energy?

You said this property tax refund is a one-off. What else can management do to manage the under-recovery?

Whilst

I think it's hard to predict whether we go into over- and under-recovery, but like I said, we entered 3Q with a relatively high reference price. Hopefully I think Q3, given the uncertainty in the Middle East, maybe we might be neutral or slight under-recovery or slight over-recovery.

I think Q3 could be a net kind of neutral position. Then if the situation improves, right, then we could then go into a over-recovery position in Q4, right?

I think the key thing is that this over- and under-recovery mechanism is what I call a temporal arrangement. They tend to neutralize over time, right?

Hopefully that can give you a bit more guidance on how we see it, right? In terms of growth-wise, we are always looking to grow City Energy, right?

I think we talked about the gas water heaters. That's an area that we like a lot, looking to really grow our market share over there, which could then lead to more EBITDA and DI from City Energy.

I will probably say, again, subject to how things are in the Middle East, I'll say the most difficult period for City Energy is probably already over. Yeah.

Okay. Thank you, Kevin.

I'll get back in the queue.

Thanks, Shekhar. Rachael from UBS, your question, please.

Hi. Thank you.

I have two questions. The first will be, what's the average age of your vessel fleet at GMG?

Looking ahead, for vessel acquisitions, trying to get a sense if these will be primarily used for fleet expansion or fleet replacement? My second question is, going forward, are you looking at larger scale acquisitions or bolt-ons for your existing businesses, as well as what sectors will you be targeting?

I think for GMG, maybe I'll just give you a few data points, right? I think the average age of the vessel in that industry is probably about around 30 years, right?

I think the average age of GMG vessel is somewhere between 25 to 30, maybe around the 27 years mark. I would say our average age is in line with market, maybe slightly younger.

Again, this is where I will draw a distinction between GMG and the market. The market has placed a number of orders for new vessels, but I would say they're mostly for vessel replacements, right, because there are certain providers out there with pretty old vessels, each 30 or 35 and above.

They're looking to replace that, right? We don't have any vessels that will be too old or mature in the next 5, 6 years.

The second-hand vessel that I spoke about, that's not for vessel replacement. It's actually an addition of vessels to GMG, right?

When it starts operations in end of the year, early next year, then we hope that that will lead to additional revenue and income and DI from GMG.

I think also to supplement, we are quite open to the options of acquiring both existing as well as newbuild vessels for GMG. I think for existing vessels, although it doesn't really help the fleet age, but it does contribute earnings pretty immediately.

I think the purchase price is also attractive. In terms of newbuild, I think ultimately we are also open to the option, given that it will improve the average fleet age for our portfolio of vessels.

I think it's an option that we will consider. Then

I think you also mentioned are we looking to do larger transaction and bolt-ons? I think the answer to both is yes.

To me, they're not mutually exclusive. Given the size of KIT, I think we like to do larger transactions, things that move the needle.

Because we have a very strong focus on value creation, right, and we do realize that when we do bolt-ons, there's probably more opportunities for value creation, realization of synergies, and so on. Yes, we like to do larger transactions, and yes, we like to do bolt-ons for our portfolio companies.

What about the sectors that you're looking at?

It'll be the sectors that we have always mentioned, energy and energy transition, energy security, digital infrastructure, environmental services, and so on. These I think are areas where there is very strong macro tailwinds behind them, and these are also the areas where Keppel has a lot of expertise over there.

We want to play in areas where there's good growth and where we know what we are doing, we are able to value add, and so on.

Okay. Thanks.

Back to the question on GMG. Is it a case where coming in 5 to 6 years' time, for example, then you will have to spend more capex to keep the fleet size stable and to keep running in the same place, to speak?

Is this something that I can interpret it as such?

Not quite, right? I think when we bought the business, I think GMG has about six vessels.

We have acquired a second-hand vessel. That's not for replacing existing vessel.

That's an additional vessel. Come end of this year, early next year, we will have seven vessels to run.

We don't have any vessels that have to be phased out or decommissioned in the next 5 to 7, 8 years, right? We do see a lot of opportunities for growth.

We have customers asking us for more vessels. If we do acquire vessels or commission newbuilds in the next few years, I'll say those are probably for increasing our vessel size and so on, right?

There's a lot of growth out there. We are trying to grow.

Of course, if a chance comes up to add vessels, we will announce to the market accordingly. As of now, I think we are focused on commissioning, right, the refurbishment so that it can add additional revenues to GMG.

Okay. Thanks for that.

Because the concern is that let's say when we come to 2032, '33, or '34, then becomes a case of that unless you spend capex, there's going to be an earnings cliff as you retire a vessel. I think I'm looking at it from that angle.

Yes.

Yes, if you fast forward long enough, there will come a point in time where GMG has to replace vessels, right? That vessel replacement can be through acquiring and refurbishing a second-hand vessel or doing a newbuild.

We have been setting aside capital in that event, right? As in the immediate and near term, I think we're looking to grow the business.

I think to supplement Kevin's point, the condition of the vessels are actually very good, right? There's no need for any retirements in the next 5 to 7 years.

Any vessels that be acquired today, if they start contributing earnings, it'll be accretive.

Thank you very much.

Thanks, Rachael. Next we have Troy from OCBC.

Go ahead.

Okay. On slide 13 regarding City Energy, could you please share more about the cost optimization measures that were taken?

Thanks.

Yeah. For City Energy, I think given the under-recovery situation that we experienced in 2Q, the management team has been quite cognizant about reigning in costs this year.

We are putting in place a couple of initiatives which will partially offset any impacts that we have seen in 2Q, including cost optimization initiatives around marketing, customer acquisition costs, for example. These will present themselves throughout the year.

Thank you.

Thanks, Troy. Shekhar, back to you.

Hi. Thank you.

I have two more questions on two different business lines. The first one is on BKR2.

I see there is a strong wind recovery this half, but just trying to remember, I know there's a feed-in tariff that will step down from October 2026. I think it goes down from €184 to €149.

How should we assess the DI impact on this tariff revision probably on a full-year basis? Second is on the first half BKR2.

Is this a normalized run rate now? Was wind above average, below average?

How should we look at this?

Shekhar, I'll answer your first question first. I think you rightly pointed out that there will be a step-down of the feed-in tariff in October 2026, and this was part of the information that we had disclosed at the time of acquisition in 2022.

There are a couple of factors to think about as we go into 2027. One is the feed-in tariff, which will step down, but there's also an offsetting factor in the sense that the loan amortization will also be reduced.

Taking into account these two factors, we're expecting about a $4 million impact on a full-year basis on DI.

Okay. For the first half, is this a normalized run rate now for your wind?

Is it above, below long-term average? What are you looking at it?

Again, I think the first half wind was stronger year-on-year. Again, I think wind is something which has been quite unpredictable over time.

I'll put it as that.

Okay. Just one more on your Ventura business.

Crown Coaches has doubled its fleet, 150 more charter buses. This happened in July 2026.

How should we expect the annualized DI impact, and what kind of multiple did you pay for this acquisition?

I think for Crown Coaches, okay, I forgot the EV/EBITDA, but I think it was acquired at very attractive levels. I think I'll just quote it's about 6 times EV/EBITDA.

We're buying at just below book value, I think that was a very good opportunistic acquisition by Ventura. We intend to use that to grow our non-MRSC business, right?

I think we have always said that Ventura is very strong in Victoria with the MRSC business. We want to grow the non-MRSC business, and we see that as a very good platform to also jump-start the growth over there.

The DI impact?

$3, $3-plus million, low single-digit, to about within I think $1 to $5 million, thereabouts, yeah.

That's an annualized rate, right?

That's the annualized rate.

Yeah. Got it.

Thank you.

Thanks, Shekhar. Perhaps now we can take some questions from the retail investors.

First up, could you please explain the drop in environmental services revenue from $25.7 million to $18.5 million, and what is management's plan to maintain and or grow the performance of this segment?

I think the reduction in the environmental service revenue pertains mainly from the decline in DI from I think SingSpring. Just to maybe backtrack a bit, SingSpring, the original concession matured, expired, and then we extended it for 3 years, and then the DI contribution of that came down correspondingly, right?

Whilst the DI contribution from SingSpring came down correspondingly, but it was still nonetheless a much better outcome than what we achieved with the Senoko concession extension, right? For SingSpring, right, when we first did the concessions, we never expected or we didn't price in an extension.

If we get any extension, that is always pure upside to us. I think that's also how we run or look to run our concession business, right?

Whenever the concession is due for maturing, we will always look to enter into discussions with the relevant authorities to extend them, right? Of course, we will make the necessary announcements as and when we reach any agreement with the authorities and so on.

The revenue drop also partly due to certain debt amortization at MEDP as well, yeah.

Thanks, Kevin. The next question is relating to AGPC.

Do we have any further debt refinancing at AGPC in coming?

There is no further debt refinancing, but we do have the scheduled debt amortization at AGPC level. This will start next year.

Starting next year, there will be a scheduled debt amortization profile.

Okay. Thanks, Raymond.

Zhiwei, please go ahead with your question.

Sure. Thank you.

I have two questions. The first question is, can you walk me through your thinking behind why you increased your dividend despite the fact that your overall DI, including capital gains, is lower, or if you want to remove the capital gains from last first half, it would be flat year-on-year?

How are you thinking about this payout ratio? The second question is on Ventura.

It's probably about 1.5, 2 years before the re-contracting. I think the government by now should start calling for tenders and all this stuff.

How are you going through this entire process, and an update there would be helpful. Thanks.

Yeah.

I think on the dividend policy, right, I think first thing, a few points to mention. We look to maintain a very stable DPU payouts, right?

We are unlike the REITs where they payout X% of DI. We maintain a stable DPU, right?

The level of the DPU is based on a, I would say, a mid- to long-term outlook of what we think KIT can achieve, right? Maybe another way I would put it is that we like to see ourselves as a total return stock, right, not just a dividend stock where we payout every single cent.

We like to invest in growth capex, which will lead to higher EBITDA, higher DI in the future. In a way, when growth opportunities come, I think we're happy to use cash flows to help fund the growth capex.

This, I'll say, inevitably would lead to a higher payout ratio, right? I'll say, from a long-term perspective, that is probably also good for KIT, because the higher the growth capex will ultimately lead to higher DI and income for KIT.

Number two, I think more importantly is, we, like I said, keep emphasizing, we take a long-term or even a mid-term outlook to our DPU, right? We sold assets.

That also resulted in less DI to us, right? There's a bit of under-recovery at City Energy in Q2, right?

If you adjust for all this, right, I think we are actually able to support that DPU payouts. I think in particular, once we reinvest all the divestment proceeds, and we have also a very strong balance sheet that we will look to also use to acquire new investments, which will also lead to additional DI for KIT.

Now, on your second question around Ventura, yeah, you're right that the MRSC contracts are coming up. Renewal and even growth of our existing packages is actually critical and top of mind for management.

Ventura has consistently demonstrated that service performance levels are best-in-class amongst the competitor group. Secondly, we've also demonstrated an ability to operate electric buses and depots efficiently.

Last but not least, we have managed the labor force without any industrial action very successfully. These are some of the factors which are top of mind for the Victorian government when choosing service providers for the next package.

Thank you. Kevin, follow-up question.

If you take it that you have a long-term view, you'll be able to grow and expand, I take it that with this higher DPU and a second-half normalization in some of your assets, right, you're suggesting that things will catch up in second half of '26, be it by DI or asset divestments?

Yeah. I think maybe I can put it the other way, right?

Because we don't pay out X% of our DI, right, we say, hey, this is the cash flows that my portfolio generates, right? Our gross FFO is actually a lot higher than our required distributions, right?

If I want to maintain a very healthy dividend payout ratio, I could switch off all my growth capex, right? Then I will deliver a very healthy payout ratio.

That also means that I'm switching off the growth that I can avail myself to, right? This is where I think we're trying to strike a balance.

We want to so-called invest in growth capex that will lead to higher DI into the future, right? I can use cash to fund them, I can use debt to fund them, and so on.

This is where we're trying to also, from a capital management perspective, strike a balance. Yeah.

Thank you.

Thanks, Zhiwei. Do we have any more questions from analysts or also participants in the public webcast?

Hi, Su-Ki. Please go ahead.

Hi, sorry. Am I audible?

Yes. We can hear you.

Sorry, because my microphone is not really working well. I may actually get cut off.

Can I just check in on the I have two questions. First is German solar performance in second quarter was quite It's a it's a negative in terms of DI.

Can we understand, or just wondering whether this is the right question even to ask, why is it a negative in 2Q 2026?

I'll take that first. Second quarter, you see a negative DI, this is because of scheduled debt amortization.

How do we actually amortize this in the next few quarters, and how does it actually affect the DI?

It's being amortized on a semi-annual basis. If you see quarter-to-quarter, Q1, you'll be DI positive, and then Q2, the DI will drop because of debt amortization.

Likewise, Q3, you'll see a increase in DI; Q4, DI will drop because of debt amortization. This is very similar like how you analyze or you assess the power plant like KMC.

Then

the amount is actually higher year-on-year, as in the negative is wider year-on-year.

I think without going into, right, if you look through all this and on a full-year basis, you should see an increase in contribution from the German Solar portfolio. There's a bit of seasonality in terms of amortization within a year from quarter-to-quarter, but on a full-year basis, you should see a higher increase in DI.

Okay. Also, just wind farm FFO down Q-on-Q caused of

Which wind farm you are talking about?

Maybe I'll just take this offline. Sorry.

Sure. Yeah.

Thanks.

I think maybe just to give you some color, usually there's a bit of seasonality in wind production between winter and summer months, but I think we can take this offline.

Thank you.

There's also debt amortization at BKR2 if you are looking at quarter-to-quarter.

Yeah.

Thank you.

Analysts, do you have any more questions? We have one more question.

Do we expect sequential benefit of the Aussie dollar to your DI based on your current FX distribution hedge?

Yes. We have seen the recent hedges that we have entered into for our Aussie dollar cash flow hedge, the rates has gone up.

Over time, it is beneficial to us. Likewise, on Monday, MAS has tightened the policy.

Sing dollar has also strengthened as well. I've checked this morning, AUD is still remains strong.

Spot is about 0.9 at this point in time. This is because of the US dollar weakening after President Trump has halt the attack on Iran for the last 3 days.

Yes, to answer your question, we do see benefit AUD strengthening. We do see the benefit to our DI.

Thanks, Raymond. We have about 10 minutes left before the conclusion of the webcast.

Just reaching out to see if there are any final round of questions from both analysts as well as the public. Ding Chong, please go ahead with your question.

Hey, hi. Ding Chong here.

Sorry. My question is on EMK.

Just wondering will there be any improved performance given capacity expansion is expected to be completed in 2026, and given that capacity is expanding in the incineration business there and ASP is trending upwards, will we see any improved performance in EMK?

Yeah. I think a couple of parts, right?

I think that's focus on the incineration business. The ASP in the incineration business has always been strong in the last couple of years.

We have been operating at full utilization or 100% utilization. One of the ways that we are trying to grow it is to undertake an expansion, right, at one of our incinerators.

I think has really started, probably going to end sometime this year or maybe early next year. That would basically means that there'll be more capacity for us to sell.

That should then correspondingly lead to an increase in revenue and DI for us. Of course, in the meantime, for this year, you probably see some weakening of contribution from EMK because the plant is, in a way, shut down, or part of the plant, not the entire plant, right, because we are doing extension at one of the plants, and part of it will be shut down for the extension.

I think in the next 6 months, there'll be a bit of a lower contributions, but that should resolve itself come once the extension is completed.

Got it. Thank you.

Thanks, Ding Chong. I think we have time for perhaps one more question from the floor, both analysts and public, if you have any.

It seems like there are no further questions. That being the case, then perhaps we'll end the public webcast.

A big thank you to everyone for making the time to attend. Thank you so much.

Bye.