36 WASCO BERHAD SECTION 3 VALUE CREATION VALUE CREATION MODEL FINANCIAL CAPITAL Wasco’s financial strategy is anchored in disciplined capital stewardship, balancing near-term resilience with the pursuit of long-term value creation. Our RM2.8 billion order book reflects sustained market demand and strong customer confidence in our execution capabilities, providing clear revenue visibility across our core and growth businesses. We apply rigorous discipline in capital allocation, cost efficiency, and balance sheet management, targeting a Net Debt/EBITDA ratio of below 3 to preserve the financial flexibility needed to pursue strategic growth opportunities with confidence. Balancing profitability with strategic investments: While revenue moderated in FY2025 due to softer demand in certain market segments and geopolitical uncertainties, PATMI rose to RM160.5 million on improved margins. Upfront capital commitments in yard expansion, UAE capacity development, and the Wasco Greenergy spin-off may temporarily impact short-term margins, representing a deliberate trade-off in pursuit of long-term growth. Debt management vs. growth strategy: Maintaining our Net Debt/EBITDA target below 3 preserves capital flexibility as we pursue growth across modular fabrication, bioenergy, and energy transition sectors. A strong tender book also provides meaningful earnings visibility into 2026 and beyond. Our Approach Trade-Offs F • Optimise capital allocation to prioritise high-growth areas, including energy transition and modular fabrication. • Strengthen working capital management to support the execution of large-scale EPC projects. • Sustain shareholder value creation through disciplined capital management, including dividend declarations, while maintaining financial resilience. 2025 Focus • Revenue: Delivered FY2025 revenue of RM2.6 billion, reflecting sustained strength in project execution across our global operations. • Profitability: PATMI grew 5% year-on-year to RM160.5 million (FY2024: RM153.0 million), underpinned by stronger project margins and prudent cost stewardship. • Earnings Per Share (“EPS”): EPS improved to 20.73 sen (FY2024: 19.77 sen), reflecting the Group’s sustained earnings quality. • Dividend Declaration: Total single-tier dividends of 7 sen per share, reflecting the Group’s commitment to shareholder returns while maintaining the financial flexibility needed to support long-term growth. • STFF: ASEAN’s first STFF, backed by an inaugural USD25.0 million sustainability-linked loan, strengthens our ESG-aligned financing strategy and supports green project execution on a global scale. • Net Debt/EBITDA Ratio: Maintained below 3, ensuring financial stability while supporting growth initiatives. Achievements
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