OUR STRATEGIC CONTEXT 60 Rising Temperatures Sustained periods of extreme heat may influence recreational behaviour and reduce participation in outdoor activities. Higher temperatures may also affect customer mobility patterns and increase cooling requirements for indoor retail and experiential facilities. These physical climate conditions may influence several operational areas, including: l retail footfall and visitation patterns l demand for golf‑related products and services l operational energy consumption, particularly cooling demand l long-term planning of retail formats and experiential facilities Operational Resilience Despite potential climate risks, the Group’s diversified operating model provides a degree of natural resilience. A significant portion of the Group’s retail outlets are located within indoor shopping malls, which provide climate‑controlled environments and reduce direct exposure to adverse weather conditions. In addition, the Group has expanded indoor golf simulation and experiential centres, which allow customers to continue participating in golf-related activities regardless of outdoor weather conditions. These facilities may also benefit from substitution demand, as customers may shift from outdoor golf to indoor experiences during periods of extreme heat or heavy rainfall. This combination of indoor retail presence, experiential diversification, and evolving customer engagement channels supports the Group’s ability to adapt to changing climate conditions and customer behaviour over time. Climate Scenario Implications for MST Golf The Group assessed the potential business implications of three (3) climate scenarios across different time horizons to better understand how evolving climate conditions may affect MST Golf’s operations, cost structure, and customer behaviour. The analysis is not intended to predict specific outcomes, but to support the identification of key risks, opportunities, and areas requiring operational adaptation. Across the scenarios, two primary physical climate factors most relevant to the Group are increasing rainfall variability and rising temperatures. These factors may influence outdoor golf activity, retail footfall, energy demand, and operating conditions. In addition, these physical risks may interact with transition-related developments, including evolving regulatory expectations, changing consumer behaviour, and broader industry shifts. Climate Scenario Time Horizon Key Climate Conditions Key Business Implications for MST Golf Strong Mitigation (RCP2.6/SSP1-1.9) Short–Medium More stable temperatures, lower extreme weather frequency, stronger policy signals. Relatively stable operating conditions, gradual shift in customer expectations, increased transition expectations, i.e., energy efficiency and reporting discipline. Long Term Slower warming trajectory, stringent policy signals Lower physical disruption risk, continued need to align with evolving sustainability standards. High Emissions (RCP8.5/SSP5) Short–Medium Higher temperatures, more intense rainfall events. More frequent disruption to outdoor activity, increased energy demand, higher cost sensitivity. Long Term Severe warming, extreme weather events. Elevated physical risk exposure, greater pressure on facilities, cost base, and business continuity. Business Implications Across Climate Scenarios SUSTAINABILITY STATEMENT
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