31 INTEGRATED ANNUAL REPORT 2025 ADAPTING TO A CONSTANTLY SHIFTING EXTERNAL ENVIRONMENT We observe four megatrends impacting companies globally: (i) the emergence of a multi-polar world, (ii) the ongoing energy transition, (iii) advancements in high tech and AI, and (iv) an increasingly higher cost of capital. Geopolitical events, such as the ongoing Russia-Ukraine war, Middle East crisis, and the rise of de-globalisation, continue to shape global economic dynamics. Under new leadership, the United States has shifted its domestic priorities and international posture, reshaping global trade dynamics. These developments are causing economic uncertainty and fears of a global recession, with impacts becoming increasingly evident in areas such as global demand, inflation, Federal Reserve rates and oil prices. Trade and foreign direct investment flows are becoming increasingly complex, further shaping this multi-polar world. Economic growth, population expansion, and energy-intensive technologies such as EVs and data centres are driving energy demand and an urgent shift towards cleaner energy sources. At the same time, advances in digitalisation, technology, automation and AI are rapidly transforming the way we do things. The confluence of the above has led to the energy transition developing at an uneven pace, giving rise to interconnected challenges of availability, affordability and decarbonisation. Additionally, greenwashing concerns, political backlash, regulatory fatigue, and high interest rates have prompted record withdrawals from ESG and sustainable funds. KEEPING OUR CLEAR STRATEGIC FOCUS The significance of being Reliable, Open, Adaptable, Decisive and Sustainable (”R.O.A.D.S.“) has never been greater as we navigate through such uncertainties. We continue to steadfastly invest in the energy infrastructure space through our businesses, and, moving forward, will do so with greater focus than ever. We are not investing in hope and hype, but rather in asset-backed, long-term stable cash flows. Our purpose drives the formulation of our strategies, which we continually adapt to manage evolving risks and opportunities. Organised under Business, Capital and Organisational tactical pillars, our strategies are operationalised through our businesses, whose goals and strategies are detailed within respective Business Reviews. We emphasise building an optimised portfolio in areas where we excel and have a track record, ensuring we consistently deliver meaningful contributions to the energy transition. Anchored on our solid portfolio and guided by our Core Values, we also expand outward to develop the broader ecosystem – both to pursue synergistic opportunities and foster a conducive environment for industry-wide growth. Underpinning our business strategies is a continuous commitment to building strong stakeholder relationships. Our capital strategies are centred on achieving sustained value creation for all stakeholders. Judicious management and governance of all financial matters are crucial in this respect, as we seek to make every resource count towards building long-term profitability. To enhance our platform’s value, we ensure we are structured correctly for our businesses to scale sustainably. This is underpinned by our digitalisation efforts and the deep integration of our Core Values, R.O.A.D.S., across the organisation. LEADERSHIP MESSAGES | FINANCE AND STRATEGY REVIEW The Group has achieved a record financial performance in FY2025 with an EBITDA of RM3.2 billion, up 8% from FY2024 and quadrupled since FY2020. This performance reflects the unlocking of stable cash flows from operations on the back of the delivery of major milestones from our energy infrastructure businesses. Diverse financing activities, including a USD 1 billion structured equity deal with a consortium of international investors and bond placements in the Nordic and London markets, have strengthened our balance sheet and improved our free cash flows to return value to our shareholders. FINANCE AND STRATEGY REVIEW COMMENTARY BY CHAI JIA JUN, GROUP CHIEF FINANCIAL & STRATEGY OFFICER
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