46 WASCO BERHAD SECTION 3 VALUE CREATION ACCELERATION OF THE ENERGY TRANSITION AND INDUSTRIAL DECARBONISATION The global energy transition continued to accelerate in 2025 as capital increasingly flowed toward low-carbon infrastructure and industrial decarbonisation solutions. According to the Global CCS Institute’s Global Status of CCS 2025 report, 77 CCS facilities are currently operating globally, with a further 47 under construction, reflecting the rapid scaling of carbon management infrastructure.6 The International Energy Agency (“IEA”) projects that global carbon capture capacity could reach around 430 Mt CO2 per year by 2030, based on the current pipeline of projects, signalling a significant expansion of the CCS value chain over the coming decade.7 Investment momentum continues to build. DNV’s Energy Transition Outlook projects approximately USD80.0 billion of cumulative CCS investment over the next five years, with global capture and storage capacity expected to quadruple by 2030 as deployment accelerates across hard-to-abate sectors such as steel, cement, and chemicals.8 As decarbonisation strategies mature, demand is increasing for contractors capable of delivering CCS transport systems, hydrogen infrastructure, and low-carbon industrial facilities across multiple regions. • Energy Transition exposure became the majority of the order book, with Energy Transition and Green projects together representing 51% of the Group’s RM2.8 billion order book at the closing of 2025, comprising 43% energy transition infrastructure and 8% green energy projects, compared with 10% and 6% respectively in FY2024. • Transition infrastructure projects were delivered globally, including hydrogen-based green steel project in Sweden, CCS pipeline scopes in Europe, and power infrastructure packages in the Middle East. • ESG credentials were strengthened, with the Group’s FTSE Russell ESG Score improving to 4.4 (from 4.1), ranking at the 98th percentile among Oil Equipment & Services peers. • Sustainability governance received external recognition, with Wasco featured as a Spotlight Case Study in Bursa Malaysia’s Public Listed Companies Transformation (“PLCT”) Programme Closure Report, highlighting the Group’s progress in sustainability governance and investor transparency. These developments position the Group to participate in the growing global investment cycle supporting energy transition and industrial decarbonisation infrastructure. Market Impact: Wasco’s Responses: 6 Source: Global CCS Institute, Global Status of CCS 2025: Staying the Course, October 2025; 7 Source: IEA, CCUS Projects Database Update, Q1 2025. Available at: www.globalccsinstitute.com; www.iea.org 8 Source: DNV, Energy Transition Outlook: CCS to 2050, 2025. Available at: www.dnv.com 5 KEY MARKET TRENDS
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