Keppel Infra Tr New Unit

Good morning, everyone. Welcome to the FY25 Results Audio Webcast for Keppel Infrastructure Trust, or KIT. I'm Marilyn from the Keppel IR and Sustainability Team. Let me introduce the KIT Management Team. We have with us this morning, CEO, Mr. Kevin Niu, CFO, Mr. Raymond Bay, and Director of Portfolio Management, Mr. Kan Chun Sa, They will be making a presentation that will cover KIT's FY25 highlights and business strategy, followed by the FY25 business and financial update. 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 now that you're on mute before we start the presentation. I will now hand the time over to Kevin. for the presentation. Kevin, please.

All right. Thanks, Madeleine. Good morning, everyone, and thank you for joining us today. 2025 marks the 10th year of KIE's trading commencement as an enlarged trust, and we are glad to report a strong KIE unit order return of 36% in the last 10 years. With more than 18 years of infrastructure investment and management experience, KIE has built a strong track record and continues to grow through acquisitions and veteran relations. We have accumulated a portfolio of very attractive assets that are essential to our daily lives. We are the sole producer and retailer of pipe town gas in Singapore. We supply 13% of commercial power in Singapore. We produce more than 20% of the drinking water in Singapore as well. of global subsea cables by length. As at 31st December 2035, KID's AUM stood at approximately 9.1 billion. This is anchored by essential businesses and assets in developed markets across four segments, namely energy transition, environmental services, distribution and storage, and digital infrastructure. The next slide. TID's portfolio is well-positioned to capture tailwinds driven by long-term structural trends of energy transition, digitalization, and real-time urbanization. Our strategy is focused on essential infrastructure that provides stable cash flows and has long-term growth potential. Our assets are located in developed markets of Asia Pacific and Europe, where there are strong legal and regulatory frameworks in place. And last but not least, there are in sectors where we have full regional expertise, either in TAPL or in partnering for experienced local teams on the ground. Overall, 2025 was a good year for KIT unit holders. We reported DI of $249.5 million for the year, which is an increase of 24% year-on-year. We achieved total unit holder return of over 17% for the year. We continue to add value to the trust, having unlocked over $300 million in net proceeds from capital recycling and deployed $120 million to acquire GMG, marking our first foray into the digital infrastructure segment. We have the financing flexibility to utilize the remaining proceeds of about $180 million and have the debt headroom for further cooperative acquisitions. As at the end of 2025, the giving levels and ICR for KIT remain strong at 39% and 7.6 times respectively. KIT received two industry awards last year, and our appreciation goes out to the Edge Singapore and AusChamp Singapore for these accolades. KIT was named the overall sector winner and recognized as a top performer in shareholder returns over the past few years at the Edge Singapore Billion Dollar Club Awards 2025. This achievement reflects our sustained focus on long-term value creation for our union holders. At the AusChem Singapore-Australia Business Alliance Award 2025, KIT was recognized as a We are declaring a DPU of 1.97 cents for the second half of 2025, and this will be paid on 20th February 2026. This aggregates to the full year 2025 DPU of 3.94 cents, which gives an implied yield of 8% based on the year and closing unit price of 49 cents for 2025. Looking back on the track record here, this The chart on the left shows illustratively the income profile for the DI from initial portfolio without acquisition versus the charts on the right that shows the actual report of the DI to unit orders. The green bars represent We have also grown our Evergreen businesses within the initial portfolio. For instance, City Energy accounts for 22% of DI in FY 2018 but contributes more than 60% of the initial portfolio DI in FY 2025. Our focus is to deliver resilient cash flows to union holders through active portfolio management to strengthen portfolio constitutions anchored by essential businesses bearing cash flows that are very defensive against market disruptions. This is how we managed to maintain our DTU through COVID-19, which is one of the most significant market disruptions in the last 10 years. Next slide. KIT's portfolio of essential businesses and assets provides products and solutions for which demand remains steady because of economic cycles. These are business strategies that we look to drive the next stage of value creation for KIT. First, portfolio cash flow stability remains a key priority, and we will continue with our proven capital recycling approach of we will employ active capital management to support sustainable distributions and continued growth in unit holder returns. With these strategies in mind, we have online specific objectives and areas to share with our unit holders. As an active manager, we will continue to evaluate our portfolio on a of concession assets. The focus on new acquisition is expected to be on energy transition, digital infrastructure and environmental solutions. This is in line with the recent Currently, we have 180 million of divestment proceeds remaining from the sale of living coastal and ventura for immediate redeployment. In addition, KIT's net gearing of 39% is healthy. Therefore, we could make use of that harem to acquire. Concurrently, As far as active capital management, we have been monitoring the market for opportunities to undertake early refinancing amidst the conducive interest rate environment. We expect to complete and execute on KIG's FY2026 refinancing needs well ahead of maturity. Raymond, our CFO, will cover this in greater details. Financial flexibility is key as we pursue various options including utilizing recycled capital, reinvested cash, Our main goal is to achieve DEI and DPU continuity into the long run, and we are working to achieve this through the successful execution of our planned creative acquisitions and value creation initiatives. With that, let me hand over to Jin Da for the FY2025 Business Updates.

Thanks Kevin. Hello everyone, I'm Jin Da and I've joined the team as Director of Portfolio Management since November. I'll take you through the KIT Portfolio Business Updates in the next few slides. Going to slide 12, FY25 saw stable operations for our assets and businesses in the energy transition segment. City Energy achieved higher FFO of $62 million for the year, mainly through its core operations. We tracked total gas and water heater sales, and the increase in market share in the residential market has been meaningful, with potential for future growth. Group opportunities are also present in the commercial and industrial market, in new developments, and in retrofit projects for existing properties. The FFO for the transition assets was an aggregate $124 million for FY25, which included a cash surplus from capital management of AGPC for Q25. For AGPC, we had higher volumes in FY25 compared to the prior year, underpinned by stronger demand. The FFO for the wind farms portfolio came in lower year on year, mainly due to BKR2. However, wind resources in the second half of 25 have recovered compared to the same period last year. The European onshore wind platform saw stable production levels in FY25 at lower power prices. The FFO for the German solar portfolio was $10.46 million for FY25, up 18% year-on-year underpinned by stable performance. For the environmental services segment, the Singapore concession assets contributed an aggregate $52 million for FY25. We maintained stable operations and met all contractual obligations with the regulators, such as NEA and PUP in the financial year. we continue to pursue potential opportunities for concession extensions following sing springs extension to 2028 noting that the land lease is only due in 2033 moving on to emk pricing in the private landfill business is expected to remain largely sideways we continue to stay disciplined on pricing and focus on optimizing the nad of our asset For the incineration business, starting 1st of Jan this year, the Seoul Metropolitan Area implemented a direct landfilling ban for municipal solid waste. With this in place, we see pricing upside for private incineration facilities. Public incineration facilities are running near full utilization and this ban is expected to drive higher demand for private incineration facilities such as EMK, which are located near the SMA. Therefore, EMK plans to grow its incineration capacity, which is also running at full utilization to capture this tailwind and increase FFO. For the distribution and storage segment, The FFO for Exxon was $71 million for FY25, an increase of 42% year-on-year, underpinned by strong operating earnings. The proton acquisition of the Hilditch-based oils import and distribution business in 4Q25 is expected to drive continued revenue and capital growth in 2026. Hilditch earns a stable margin per unit volume and is expected to benefit from near-term tailwinds from Australia's new fuel emission standards, supporting demand for refined and cleaner base oils. The FFO for Ventura was $23 million for FY25 and was higher year-on-year on a 100% basis, underpinned by higher EBITDA. For the year, it achieved 100% service reliability and on-time performance, exceeding 90%, and secured new charter contracts. Ventura's maintenance capex is mainly debt-funded, and for FY25, the maintenance capex of $21 million was added back to ERIDI. Ventura's business model requires ongoing maintenance capex, and the company will debt-fund this capex in the near term. We completed the acquisition of GMG on 23 November 2025. Hence, the income contribution to KIT of about a month of about S$1 million is in line with our due underwriting. Since completion, the team has successfully extended a long-term charter through 2028 and a maintenance zone contract to 2030. Similar to Ventura, GMG is a business which requires ongoing maintenance capex for vessel upkeep, such as dry docking, and we expect to be debt funding this in the near future. In the next two slides, we will outline the strategic priorities for our evergreen businesses. We continue to work closely with the respective operating teams on the ground to execute these strategies and drive future operating earnings. These essential businesses have established strong local brands and local market solutions in markets with high barriers to entry. They are long-term platforms focused on delivering customer-led solutions and creating sustainable value over time. For City Energy, our focus is on driving further market share gains in residential water heaters from the current 20%, increasing commercial and industrial gas usage, and raising consumer awareness of the benefits of gas water heaters to support broader adoption. For EXIM, the key priority is to strengthen our market leading positions across the core manufactured and traded product segments, supported by deep long standing relationships with key customers in the water utilities, manufacturing and resources segments. Other initiatives include continued growth in the bitumen business supported by disciplined growth capex and unlocking revenue and cost synergies from the recently acquired fieldage business. For Ventura, we aim to maintain our strong track record in service delivery and standards, grow market share in the charter business for both public and public runs, and position ourselves in a public bus service contract renewals coming up in 2028. EMK has the potential to further strengthen its position as one of the largest private incinerators in South Korea. The key catalyst ahead is the scaling up of incineration capacity to capture demand tailwinds driven by favorable policy changes. For GMG, as one of the leading independent providers of subsea fiber optic maintenance, installation and support vessels, the focus is on maintaining strong operational reliability and the track record of vessels. At the same time, we aim to grow our fleet of specialized cable installation and maintenance vessels, underpinned by strong global demand for subsea cable connectivity. Moving on to the ESG slide, we met our ESG targets for the year across the three pillars of our sustainability framework, environmental stewardship, responsible business, and people and community. In addition, we achieved a rating of A in MSCI ESG Ratings Assessment in recognition of the strong management of financial and industry-relevant ESG risks and opportunities. I will now hand the presentation to Raymond for the financial and capital management of KIT.

Thank you, Trinta. Hello, everyone. I'll kick off my section with this slide that demonstrates KIT's strong earnings track record in the last five years. Moving to the next slide. The DI for FY25 increased over 24% year-on-year to approximately $250 million. SFDI before corporate cost was higher at $349.1 million. This is underpinned mainly by higher contribution from City Energy, the German Solar Portfolio, XM, and Ventura. This included a cash surplus for AGBC, which was substantially used for debt repayment at KIT Trust level. In the environmental services segment, lower income from Senegal after concession renewal was partially offset by the full-year contribution from MEDP in FY25. Corporate expenses excluding the debt repayment were lower year-on-year mainly due to no performance fee accrued in FY25. We recognize a divestment gain of $49 million from the sale of interest in Philippine Coastal and Ventura. Moving to the next slide. This is the second half FY2025 DI. The DI increased about 21% year-on-year to $130.1 million. SFDI before proper cost was higher at $199 million, underpinned by higher DI for city energy, the wind farm portfolio, AGPC, and the German solar portfolio. In the environmental services segment, lower income from Sunoco after concession renewal was partially offset by the full year contribution from MEDP in the second half of FY25. Corporate expenses excluding the debt repayment were higher year on year, mainly due to higher trustee manager pays fee. We recognize a divestment gain of $27 million from the sale of interest in Ventura in the second half of FY25. Moving to the next slide. Onto the balance sheet, KIT reported net gearing of approximately 39% with interest coverage ratio at 7.6 times. The consolidated debt for KIT aggregated to about 3.2 billion as at NFY25. Spending capital deployment, about $180 million of the remaining divestment proceeds have been used to pay down existing borrowings at the trust level. The weighted average cost of debt at the group was lower year-on-year at 4.4%. The weighted average cost of debt at the trust level was also lower at 3.4%. KIT has hedged approximately 73% of the trust's foreign income and approximately 72% of the KIT total borrowings are hedged. Going to the next slide. We have received firm commitments to refinance ICSEM's loan subject to documentation and expect to complete the early refinancing ahead of its expiry in the second half of this year. We are also evaluating refinancing options for the remaining $330 million debt at trust level maturing later in the year. To date, we have approximately $239 million of committed RCF that is undrawn. To conclude, the refinancing needs for FY26 will be met as we look to complete the refinancing ahead of expiry. With $180 million of remaining divestment proceeds and ample debt headroom, we are well positioned to execute our planned accretive acquisitions and value creation initiative to achieve DI and DPU continuity into the long term. Thank you. With that, I will now hand over the time back to Marilyn.

Thank you, Kevin, Jinta, and Raymond. We will now proceed to the Q&A session. Analysts who are on the call, and if you'd like to pose a question, please raise your hand in turn on the Teams platform. And I'd appreciate if you could state your name and firm followed by your question. Thank you. Okay, we have the first question from Shekhar. Hi, Shekhar. Please go ahead with your question.

Hey, hi, Madaline. Hi, Kevin. Hi, Raymond. Hi, Junda. Welcome to KIT. Okay, good, good set of numbers. Really impressed. But I have a few things to ask about 2026. How should I look at GMG's distributable income in 2026? Like the one-month contribution we should look at, annualizing it?

Correct. Yeah. So, as you correctly mentioned, GMG contributed one month of $1 million. Going forward, the DI run rate is expected to remain for FY26. But I think one thing we would like to note is that GMG is a business which requires regular maintenance capex from vessel dry docking, right? But most of this maintenance capex is expected to be debt funded.

So the focus is on DI. So maybe I could add that something like what we did with Ventura, when we bought the business, we are aware that there is certain capex or maintenance requirements, which could be a bit lumpy, right? So when we enter into the certain expenses. Please have to maintain DI's dignity here. So it's part of our plan there.

Okay, that helps. So just continuing on the same topic, you said there's now a long-term charter extended to 2028, maintenance contract to 2030. Can I get a sense on what percentage of your revenue or EBITDA from GMG is now covered with multi-year agreements?

So to give you a sense, right, we have six vessels. Two are on long-term charters. We have already secured one of those. We are in the process of renegotiating another one. And all four maintenance vessels, which are under the consortium model, have been recontracted. So to answer your question, it's five out of six vessels have Charter 70.

Okay. Okay.

Fair enough. So I think when we announced the acquisition during our EGM last year, I think there was certain contracts was coming up or certain contracts was renewed even before we entered into the transaction. a lot of demand for such vessels, given the outlook for CAPEX requirements to build new cables, to maintain cables in EDCs. So this is where I think we want to ride that macro trend.

understand understand okay i just have two more questions before i jump back in the qic there's a lot of other people waiting to ask on vkr2 can i get an update on on the win situation how should we look at 2026 uh you did mention in the slides that you know second half is looking better than year on year but on half and a half and how should we look at the 2026 di for it yeah so uh as a recap

uh thinking about the factors with which drive pkr2 performance it's number one is mainly related to win right because the pricing is essentially locked in by a feeding contract feeding tariff contract backed by the german government so if we look at the wind speeds in second half of 2025 and compare that against second half of 2024 uh they are at or already above uh levels in the previous period?

So I think last year, I think there was a lot of concerns around VK02 given the wind speed. Yes, we have said that in the first half of the day 5, the wind speed was very bad due to a pretty rare climate phenomenon. I think we are glad to share that, as what Jim has mentioned, the wind speed for the second half has recovered. We hope that this will continue. And with this, if this continues into 2036, hopefully the performance from BKR2 will be better than that in 2035. If we have a full year of proper wins.

Okay, fair enough. So we still look at it. We see how the first quarter goes and then reassess, is it?

Yes. Now, win is not something that we can control. But like I said, when we look at win, we have to look at it from a long-term perspective. There'll be years where it may be below average. There'll be years where it gets above average. But long-term-wise, over mid-term, it should average out.

Okay, fair enough. Just one more question and then I'll jump back in the queue. In terms of pipeline, you know, anything from Kepler's ecosystem where you, and which verticals where you think most actionable ideas would come through or leads could come through over the next 12 months?

Sorry, Shikha, I missed the question.

I'm saying from Kepler's ecosystem, if you have to look at deal flows, which verticals where you think will be the most actionable deal flow would be in the next 12 months?

Yeah, so I think TAPL is across the verticals that we are in at the moment. And I think certain assets are being constructed, and I think some of them will probably be coming online over the period of time. You know, as and when they come to you, and if they are appropriate for KIT, we will definitely put our hands up to express our interest in acquiring them. But this will be done on a very unplanned basis. But we do expect activities in the energy transition sector, not just from the capital table of assets, but I'll say globally, we do expect a lot of activities around the energy transition and digital infrastructure segment.

Okay, got it. I'll jump back into the queue. Thank you so much.

Thank you, Shankar. Okay, the next would be to Hu Yizhen. Hi. Can you identify which house you're from? Sure.

Thanks for the presentation. It's Evian from OCBC's credit research team. Hi. So my question is on AGPC. I think I may have missed a bit of what Matt was saying. There was a cash surplus from capital management at AGPC. Was that used to pay debt at the trust level? And if so, can you please explain more what actually happened at AGPC and what was done with the capital? That's all thanks.

Thanks for the question. I'll take that. So what happened was there was a refinancing activity in AGPC level. When the refinancing happened, there is a need to re-look into the hedge position. That led to a certain IRS has been, we unwind a certain IRS, which resulted in a gain. So the gain is approximately $51 million. This is, I would like to stress that this is a one-off. And what happened is we, this $51 million has been utilized to repay debt. And this debt will basically, it's an RCA facility. When we pare it down, it will become a war chest for us. We will have extended financial flexibility for acquisitions.

Thank you. So the ICF facility is at the trust level?

That's right. KIT trust level.

Thank you.

So just to be clear, our total DI is not impacted by this because the proceeds is used to completely pay down debts at the KIT level. So it's a flash through there.

Thank you, Yuzhen, for your question. Next question we have from Jialing. Hello, Jialing.

Hi, Jialing and Tim. Congrats on the strong results. This is Jialing from CJSI. I have three questions before I jump back to the queue. So the first one, could you walk through the KPACs for FY26? I think especially for EMK, Ventura and TMG, where you see strategic opportunities to grow. So what's a quantum of KPEX we are talking about? Should I finish all my questions before we dive into the answers?

Yeah, so it would be good if you give us all three questions.

Okay, can, can. Yeah, so my next question is on GMG. So if we just focus on DI, like management guided just now, right? So can we think of ensemble distributable income as a so-called clean DI, meaning without debt repayment, without paychecks? And is it how we should be looking at FR26DI? And my third question is looking at distribution for next year, right? What's your thoughts around distribution trajectory for next year? Thank you.

Yeah, so maybe I'll touch on the CAPEX slide, right? So I think going on the CAPEX plan for EMK, as we previously alluded to, we are dedicating some CAPEX towards incinerator capacity expansion this year. This is to account for the fact that our incinerators today are 100% utilised. uh coupled with the fact that we are seeing incremental demand from the direct landfilling ban in Seoul which is supportive of pricing so we are actually expanding capacity in two of the four incinerators that ENK currently operates So that's an EMK. For Ventura, we are on the constant lookout to replace and deploy maintenance and growth CapEx towards the bus fleet.

Maybe I could just share a bit of light on the CapEx transform. I think as Wanchita mentioned, I think our incinerator is at maximum utilization. We do expect waste for incineration to increase, especially given the policy change in the Seoul metropolitan area. Our landfills, our incinerators are located just outside that additional waste. In order to capitalize on that long-term trajectory, we need to expand our capacity. We do not expect this expansion to have an impact on EMK's cash flow because they will be funded by cash on the books or by debt facilities that we have sized for this purpose. And I think, you know, this will be done, you know, over phases, right? And I think what I would like to find out is that this year, you know, the incinerator and EMK is scheduled for some refurbishment. And we are just using that period of time to undertake an extension. So this is a very efficient way of undertaking an extension. And, you know, as probably everyone knows, Keppel as a group, my sponsor, has very strong And this is something that we spoke about last year. And I think we are seeing all this execution panning out as we speak. All right. And I think there's this question about GMG, the DI for December. Yes, that's clean. In a way, you can almost, for the full year of 2026, you can annualize that to get to a estimates of the DI forecast from William G. So last year, there's one month of study of one month of contribution. This year, we see the full 12 months of contributions. So the DI from 2025 has to be adjusted for that to get a more accurate estimation for 2026. Have we answered our questions? Anything that's unanswered?

Yeah, thanks for your answer. Kelvin, I think maybe one follow-up question is on KPEX, whether we could share certain amount, you know, like plan aside for KPEX, just for modeling purpose. And another, the last question was on distribution trajectory for next year.

Thank you. Jialin, if you don't mind, could you refer to slide 34 of our presentation slide? We have disclosed our CAPEX guidance and also the debt amortization over there.

Okay, got it. Thanks.

Thank you. And I think on the distribution guidance, I mean, we don't want to give appropriate guidance, but I would say, I think we are in a good position. The 2025 DI from certain assets does not reflect the full contributions. For example, you need to annualize the DI from GMG to And I think we have, last year we realized about $300 million of capital from recycling of flipping coastal and a stake in Ventura. We have redeployed about $120 million of debt. There's about another $180 million that we can deploy this year. In addition to that, our balance sheet is very strong. accretive acquisitions there.

Okay, got it. Thanks. I will come back to the queue.

Thanks, darling. This in the queue would be questions from Zerol. Hi, Zerol.

Yeah, hi, hi. Morning. Hi, Kevin and team. Thanks for the call today. I just, the first question from me is on the divestment gains part of it. So I'm a bit confused by the classification of divestment gains as part of your DI. So I mean, I always thought that divestment gains on losses, whatever it may be, is an accounting item and not a cash item that the whole cash sale proceeds should be a cash item so how does it fit in with the with the DI which is a which is the cash flow typically and if you're using divestment gains to pay distributions then how come we are still saying that we have 180 million

remaining from the 300 million uh sales proceeds for so there must be some uh cash that has been used for this distributions from this right thanks yeah so bro thanks thanks for the question so um in fact the divestment gain is an actual gain uh what we have done with the diverse main gain is uh you could think away of a real Again, like the principal return, right? What we have done is we have taken debt meanwhile to repay the debt at trust level. It's a cash management basis. Yeah, so maybe the way I would explain PCSBC last year, we saw a 25% stake in Ventura, right, at a very good gain. I think the gains over there is about over 30% within a year, right? So we made profit on the sale of a 25% stake in GMG. That's a real cash gain, right? So we recognized part of that real cash gain into a DI, and the vast majority of that proceeds is our balance sheet, which we have used part of it to reinvest in GMG. So, of the $300 million, $120 million is used to a very significant stake in GMG, and we have about $180 million left. And part of this $180 million has been used to pay down debts, to reduce interest expense across TIT. And that basically lowers our giving down to 39%, which is very healthy. So we have those 5,000 proceeds that we can utilize to make further creative acquisitions. Okay, that clarifies.

yeah so you're talking about you're talking about the debt headroom not the actual so because you're you have to pay distributions of 240 million this year if you're distributing 3.95 cents right and your di is 250 million so at least of the 50 million divestment gains you have to pay out at least 40 million to from that to the unit holders so how do you classify it as a debt headroom yeah

okay sure so so maybe let me just take a step back explain like we have certain proceeds from the sale right and not we did not get just because we did not recognize the full sale proceeds into the DI, we only recognize the gain that we make, right, on Ventura, et cetera, into the DI, right? So, yes, you know, we have DI about $250 million, $40 million is about, about $40 million is from the sale of Ventura. So that still reflects well against the 24-hour performance because it's still a higher DI. But more importantly is, you know, I do not, I think we want to kind of make it clear that that recurring DI that you're trying to back solve for in order to identify results does not reflect the full DI generation potential of TIAT because that operating or recurring DI that you're trying to back solve for only includes one month of contribution from GMG, right? And so if you analyze that, then you'll get to a better amount. And there's also certain growth that we're trying to achieve EI vis-a-vis 2025. And what we would also like to say is that the deficit proceeds have not been fully redeployed. Some of it has been used to pay down debts. Some of it has been used as cash on a balance sheet. And these are the amount that we can use to reinvest that will create additional EI, surplus EI for our OKID and our ENA orders.

Got it. Thanks. Thanks. and one other question on the capex front in terms of growth capex versus maintenance capex breakdown so I see the 2026 numbers on slide 34 so we are projecting around 100 million growth capex in total for next year how does it compare with growth capex in 2025 is it higher and how do we finance this growth capex

Yeah, maybe I can take this. So the growth capex is largely stable. I wouldn't say there's a huge increase on this. In terms of growth capex, I think it's largely going to be funded through internal cash of the respective business or debt facilities.

Okay, so it shouldn't affect DI to a large extent.

No, no.

Okay, got it. Thank you. That's all.

So maybe there's one point that I'd like to just add, because I think what we're trying to do is trying to solve for the KIE's recurring DI, right? And I think your question is about that gain in our DI. The way I'll probably look at it is that if we did not sell a 25% stake in Ventura, our DI would also be higher than what you are projecting.

True, true, yes.

Thanks for the questions. We have another question from .

Hi, sorry, it's me again. I have a follow-up question on Exxon. So just wondering whether you could share some details on the acquisition of one of its subsidiaries happened this year. And also, because I saw the paychecks break down for next year, there is quite some amount spent on Exxon. So just wondering whether you have plans for another acquisition one of its, I don't know, maybe like subsidiary under Exxon, or whether this is just expanding its current project line. Thank you.

Yeah, so thanks, Jialing, for the question. So I think sharing more details around the Hilditch acquisition. So this is a base oils importer and distributor company. So these are actually like engine oils and lube used for vehicles, typically for long distance transport. So these are like logistics vehicles. And the business is expected to benefit generally from a tightening of fuel emission standards towards higher spec type of base oils. So the acquisition is expected to contribute roughly about a single digit percentage EBITDA to Exum's pre-acquisition levels.

distribution fees, right? So this acquisition is done by, it's a port on for this chemical distribution business. So the thinking behind that is to use the same infrastructure to distribute that product to the same customers. So it basically increases revenue to us. I think this acquisition was done pretty late last year. So our DI for last year does not reflect the full contribution from these acquisitions. So come 2026, if you over there as well. And more importantly, it's because we are using the same infrastructure to distribute more products to the same customers. There's also some operational efficiency that we can realize over there.

Okay, thank you for the answer. So could you remind me of your, because just now you mentioned the financial implications on the EBITDA level, right? So could you maybe remind us of the EBITDA before this acquisition or maybe at the acquisition of EXAM itself?

so i believe we had disclosed in one of our previous slides that exams at beta is roughly about aussie 200 million uh in the current slide we also have uh the the beta levels for exam if you refer to our business updates

Okay, got it. And just to clarify, so the financial implication of this new acquisition is, should we look at it via EBITDA or should we look at a certain percentage increase in EBITDA?

Yeah, so as I previously mentioned, it's going to be a single, mid-single digit EBITDA contribution to exams pre-acquisition EBITDA.

So, by the way, let me tell you a bit more. So Exxon last year, full year ending 2025, I think it's doing over 200 million, slightly over 200 plus million EBITDA. This acquisition is done late last year, so it's not fully reflected into that number. As Rajinder has mentioned, this acquisition on a full year basis could result in a mid-single digit.

Okay, got it. Thank you.

So this then flows down to our DI.

Okay, thanks, Kelvin.

Thanks, analysts. Do we have any other questions from the analyst community? Okay, if not, then let me just quickly raise, first and foremost, thank you to our public audience for your questions posed. I believe most of the questions have been addressed earlier through the common questions raised by the analysts. I just have one or two other additional questions that I will pose to the management team now. is on Ex-Im debt. The question is whether, is there an expected refinancing cost for the Ex-Im debt that we should be considering and whether or not it is significant?

I can take that. So we do not foresee an increase in refinancing costs. In fact, we do see a loan margin compression for EXIM. But I do take note that the current market situation in Australia, there are talks about RBA may increase the base rate. So I think at the end of the day, it would be a method of position. So to answer your question, there will not be an increase in refinancing costs for EXIM.

Thank you, Raymond, for the response. The second question is on the query on the projected KPEX for GMG. Can management please advise the KPEX?

Yeah. I think when we sought new photos of Cuba for these acquisitions, I think we have disclosed that there is a lot of growth potential in this business. Our vessels are fully utilized. We want to grow the business and we want to either buy new vessels, construct new vessels or buy sitting vessels and convert them into, you know, table-laying vessels. I think I'll say we are making good projections over there. I think we have acquired... cabling vessels which we hope once this be completed can be deployed and which will then add to traveling right the and when we look at these acquisitions right we are aware of certain capex growth capex right that will be coming up and our plan right is to actually and we have also sized the on all these CAPEX. And so as a result of which, as a result of this funding method, the impacts to our DI, of the growth CAPEX on our DI is not gonna be material. But of course, you know, we have also set aside, as disclosed, certain equity commitments that we are prepared to put in to buy even more vessels, right? At this stage, we have not utilized or we have not planned to put in that equity yet. But as and when we are able to secure new vessels, we will inform the market accordingly.

Thanks, Kevin, for your response. Let me just quickly chat to see if there are any additional questions that have come through. Okay, I think we just have one more question from the public. So the question here is, how big is our onshore wind farm capacity? And then the second part of the question is whether we intend to buy more or less.

I would say we have about 1.3 gigawatts of renewable capacity, of which I would say about 450 megawatts or 470 megawatts is for the German BKR2 offshore wind farm. Then a big chunk of the remaining actually comes from our solar asset, the German solar portfolio, where it is doing very well. from the German Solar Portfolio. Our wind farm is basically distributed across Norway and Sweden. From an investment quantum perspective, it's a relatively small part of our portfolio. Do we have more plans to buy more wind farms? I think as and when we find good assets in this sector, we will do it. But if there isn't any attractive assets, I think we're happy to consider other sectors as well.

I think with that, we have completed all the questions that have been posed to us by analysts and the public. Thank you so much, everyone, for making time to attend our call. If there are no further questions, we will now close this morning's call and have a good day ahead. Thank you.