Dear Shareholders,

The operating environment in 2025 was marked by heightened geopolitical tensions, trade frictions and a slowing global economy. At the same time, the unprecedented and rapid deployment of artificial intelligence (AI) continued to reshape industries and energy demand.

Against this backdrop, we remained focused on execution, portfolio discipline and capital allocation. We have stayed the course on our purpose of driving energy transition responsibly, balancing the immediate need for energy security with our unwavering commitment to building a low-carbon future.

Resilient Financial Performance

Despite the uncertainties, the Group delivered a resilient performance. Our results reflected the strength of our diversified portfolio, disciplined cost management and execution of our strategic priorities. In financial year 2025 (FY2025), the Group achieved a turnover of S$5.8 billion and underlying net profit of S$1.0 billion. Our return on equity stood at 18.2%, reflecting our continued focus on capital efficiency.

The Board is pleased to propose a final dividend of 16.0 cents per ordinary share, subject to shareholders' approval. This brings total dividend for the year to 25.0 cents per ordinary share, an increase of 9% or 2.0 cents from FY2024. This reflects confidence in our long-term strategy and the visibility of our cash flows.

Driving Growth with Financial Discipline

Our growth strategy is built on the strength of our business lines: ensuring energy security through our Gas and Related Services segment and driving the transition through our Renewables and Integrated Urban Solutions segments.

Gas and Related Services: Providing Reliability through the Energy Transition

As the energy transition accelerates, the need for reliable and dispatchable power has become more critical. Our 8GW global gas portfolio continues to underpin grid stability while enabling the integration of renewables and low-carbon energy sources into the power system.

In Singapore, we increased our stake in Senoko Energy to 50%. With this stake, we will look to unlock operational synergies and enhance the efficiency of our Singapore power assets as well as support national energy security. At the same time, we are future-proofing our generation capabilities. We are on track to complete our new 600MW hydrogen-ready power plant in 2026, strengthening our ability to meet evolving energy needs. Together, our assets are well-positioned to support growing power requirements of the data centre and high-tech manufacturing industries in Singapore. In a world where AI-driven load growth is reshaping demand patterns, Sembcorp is already a trusted partner to these critical industries, supplying more than one-third of the data centre power needs in Singapore.

In the UK, while operating conditions remain challenging due to subdued industrial demand, we continue to exercise cost discipline and are repositioning the business to broaden customer reach and capture emerging opportunities in data centres.

Renewables: Scaling with Execution and Reliability

We continued to expand our renewables portfolio with discipline, focusing on market fundamentals and execution capabilities. Since 2021, we have invested over S$5 billion globally and grown our gross renewables capacity more than six-fold, from 3.2GW to 20.4GW, including an acquisition pending completion.

Despite market challenges in the China renewables market due to elevated curtailment and tariff pressures, our expanding platforms in the region continued to provide resilience and deliver growth for the segment.

In India, we strengthened our position as a leading independent power producer. We secured a 150MW firm and dispatchable renewable energy project from SJVN, integrating solar and battery energy storage systems to support the growing demand for reliable, renewable power. Together with our other wins, our gross renewables capacity in India has now surpassed 7.6GW.

In the Middle East, we achieved a significant milestone with the signing of a 20-year power purchase agreement for the 125MW Dhofar II wind power project. This is our first wind project in Oman, shortly after we commissioned the 588MWp Manah II Solar Independent Power Project. These assets support Oman's Vision 2040 target of generating 30% of electricity from renewable sources.

In Singapore, we continue to lead in maximising renewable potential in a land-scarce environment. We were awarded the 86MWp Pandan Reservoir floating solar project by PUB, Singapore's National Water Agency. We also signed a 25-year renewable energy purchase agreement with a subsidiary of Meta Platforms to build, own and operate a 150MWp floating solar farm at Kranji Reservoir. These long-term contracts further reinforce our position as the nation's leading floating solar energy player.

Integrated Urban Solutions: Building Sustainable Growth Platforms

Our Urban business continued to grow. During the year, three new Vietnam Singapore Industrial Park (VSIP) projects were awarded investment registration certificates. We further expanded our footprint in January 2026, with a new investment approval for VSIP Hue in central Vietnam. With these investment approvals, our portfolio now comprises 22 industrial parks across 15 provinces and major cities in Vietnam. These new parks are designed to be smart, green and future-ready, and are well-positioned to serve as strategic hubs for clean-tech and export-focused industries.

In Indonesia, we are also making strides with our Tembesi Innovation District, which has received strong pre-commitment interest. We also signed a Memorandum of Understanding with NeutraDC to jointly develop sustainable data centre infrastructure in Southeast Asia.

Sharpening the Portfolio and Entering a New Growth Market

Portfolio optimisation remains a core discipline. In March 2025, we completed the divestment of Sembcorp Environment, sharpening the Group's focus on energy and urban solutions. Proceeds from this capital recycling exercise will be redeployed in line with our strategic priorities to support disciplined growth and value creation.

Looking beyond our established markets, 2025 also marked a pivotal milestone in our geographical expansion. In December, we announced the proposed acquisition of Alinta Energy in Australia. The transaction provides immediate scale, entry into an AAA-rated country and access to a high-quality generation portfolio and development pipeline. The acquisition is immediately earnings accretive and broadens our growth capabilities in a well-established market.

Powering an Inclusive Future

We remain committed to contributing positively to the communities in which we operate. Through the Sembcorp Energy for Good framework, we support a range of community initiatives, including programmes aligned with the United Nations Sustainable Development Goal 7.

During the year, we commissioned a 95kWp solar energy system at Boys' Town in Singapore, reducing operating costs and allowing savings to be redirected to its youth development programmes. Since 2022, we have trained over 2,400 participants through our green capability building initiatives. Our green education programmes have reached over 600,000 people worldwide, strengthening energy and sustainability literacy. In 2025, Sembcorp contributed to the Institute of Technical Education Monthly Financial Assistance Scheme in Singapore, supporting approximately 700 students in pursuing their educational goals. We also launched the Sembcorp Energy League, which engaged more than 12,000 participants in 2025.

We will continue to focus on initiatives that deliver measurable outcomes and create sustainable, long-term benefits for the communities we serve.

Health, Safety, Security and Environment

While we celebrate our business achievements, the safety of our people remains important. We are deeply saddened by a contractor fatality that occurred in 2025. This incident reinforces the need for us to continue strengthening our safety culture and practices. We are strengthening our safety controls and processes, and enforcing the strictest adherence to contractor safety protocols across all sites. Beyond procedural improvements, we have also deployed proven AI-driven technologies to monitor work sites, allowing us to detect and deter unsafe acts. We remain resolute in our commitment to ensuring that every person who works with Sembcorp returns home safe every day.

A Note of Thanks

The resilience and success of Sembcorp are made possible by the dedication of our employees. We thank them for their professionalism and ability to adapt, innovate and execute in a complex environment.

We are grateful for the guidance of our Board, whose experience and counsel have been invaluable in navigating a complex operating environment. We would like to express our appreciation to Mr Yap Chee Keong, who will step down from the Board at the forthcoming annual general meeting (AGM). His deep financial expertise and acumen were instrumental in strengthening our governance and risk management frameworks during a period of strategic repositioning for the group. We are pleased to welcome Mr Dinesh Khanna, who was appointed as Alternate Director to Prof Uwe Krueger on February 25, 2026, as well as Mr Andreas Sohmen-Pao and Mr Steven Phan Swee Kim to our board on March 27, 2026. Mr Sohmen-Pao and Mr Phan will be standing for re-election at the AGM pursuant to article 100 of the company's constitution.

Mr Andreas Sohmen-Pao has been appointed as Chairman Designate and non-executive and independent director. He will succeed Mr Tow Heng Tan as non-executive and independent Chairman of the board of directors with effect from June 1, 2026. Mr Sohmen-Pao, chairman of BW Group since 2014, brings deep experience and insights from leading a global business rooted in international energy and infrastructure.

Mr Steven Phan Swee Kim has been appointed non-executive and independent director. He will succeed Mr Yap Chee Keong as chairman of the Audit Committee at the conclusion of the upcoming AGM on April 29, 2026. Mr Phan, formerly the Ernst & Young area managing partner for the Asia Pacific region, has more than 35 years of experience in audit and advisory, with strong expertise in risk management across capital intensive and regulated operating environments.

We look forward to working closely with Mr Sohmen-Pao, Mr Phan and Mr Khanna to drive Sembcorp's growth and deliver value to shareholders.

Looking Ahead: 2026 and Beyond

As we look towards 2026, the global energy landscape presents a mix of challenges and opportunities. We expect operating conditions to remain uncertain due to macroeconomic headwinds such as policy shifts. However, the fundamental drivers of our businesses are strong. The International Energy Agency projects that global electricity demand will grow at an accelerated pace in 2026, driven by the electrification of transport, industrial decarbonisation and the exponential rise of data centres powering the AI revolution.

Sembcorp is uniquely positioned to capture this growth as rapid urbanisation and industrialisation drive sustained demand for renewable energy and sustainable urban solutions. We remain vigilant to risks, disciplined in execution and clear in our strategic intent. Guided by our purpose to drive the energy transition responsibly, we remain confident in our ability to deliver lasting value. We thank you for your continued trust and support.