Annual Report - 2024/25

CARSON CUMBERBATCH PLC

Annual Report 2024/25

SCAN to read this Annual Report online

The PDF version of the Annual Report 2024/25

can be read at https://www.carsoncumberbatch.com/

CARSON CUMBERBATCH PLC

Contents

3 Financial Highlights

4 Reflections from the Chairman

7 Directors' Profile

10 Group Structure

Management Discussion & Analysis

12 Sector Reviews

24 Graphical Financial Review

26 Financial Review

31 Sustainability Report

43 Economic Value Statement

45 Management Teams

47 Group Directorate

51 Risk Management

57 Information to Shareholders & Investors

Reflections from the Chairman pg 4

Sector Reviews pg 12

Financial Review pg 26

Sustainability Report pg 31

64 Financial Calendar

65 Annual Report of the Board of Directors on the Affairs of the Company

83 Statement of Directors' Responsibility

90 Report of the Related Party Transactions Review Committee

92 Audit Committee Report

95 Independent Auditors' Report

100 Statement of Profit or Loss

101 Statement of Comprehensive Income

102 Statement of Financial Position 104 Statement of Changes in Equity 107 Statement of Cash Flows

109 Notes to the Financial Statements

210 Group Real Estate Portfolio

211 Statement of Profit or Loss - USD

212 Statement of Financial Position - USD

213 Glossary

217 Notice of Meeting 219 Form of Proxy

Inner Back Cover Corporate Information

Financial Highlights

(Amounts expressed in Sri Lankan Rs.'000 unless otherwise stated)

Reflections from the Chairman

Dear Shareholders,

On behalf of the Board of Directors,

I extend a warm welcome to all of you to the 112th Annual General Meeting of Carson Cumberbatch PLC. As the newly-appointed Chairman, it is my privilege to present the Annual Report for the financial year ending on 31 March 2025.

OPERATING CONTEXT

AS A DIVERSIFIED REGIONAL HOLDING COMPANY, WE REMAIN COMMITTED TO PURSUING STRATEGIC OPPORTUNITIES ACROSS SOUTH ASIA AND BEYOND, DRIVING RESILIENT PERFORMANCE AND DELIVERING LASTING VALUE TO OUR STAKEHOLDERS.

The year 2024 marked a significant turning point for both the global and domestic economy. Global growth moderated slightly to 3.3% from 3.5% in 2023, within expectations, following aggressive monetary tightening across several advanced and emerging markets in response to inflationary pressures. Encouragingly, global

trade rebounded, indicating a return of confidence in cross-border supply chains and commercial partnerships. Looking ahead, the International Monetary Fund (IMF) forecasts global growth to moderate to around 2.8%-3.0% for 2025-2026, amidst ongoing challenges like geopolitical tensions, shifting trade policies, and climate risks.

Amidst a challenging global backdrop, Sri Lanka's economy displayed commendable resilience, posting a robust GDP growth of 5% in 2024,

the highest since 2017. Industrial activity, particularly manufacturing, strengthened with stabilised supply chains, whilst the services sector saw continued momentum, driven by tourism and IT-enabled services.

Tourism emerged as a key growth engine, with rising arrivals and earnings supporting broader economic activity, whilst resilient worker remittances helped bolster the country's external position.

Foreign reserves increased due to import controls and increased foreign exchange inflows, leading to a 7.8% appreciation of the Sri Lankan Rupee by the end of 2024. This enabled the

easing of import restrictions, including vehicle imports in early 2025. With inflation decelerating sharply, briefly turning into deflation, interest rates were also lowered by the Central Bank of Sri Lanka, improving credit access, whilst modestly reviving consumption and investment.

Another positive development during the year was the successful completion of the third review under the IMF's Extended Fund Facility in February 2025, which unlocked a further USD

334.0 Mn in assistance. This reflected steady progress in improving fiscal revenue, advancing debt restructuring, and rebuilding external reserves. In the absence of motor vehicle imports, the alcoholic beverage industry was the most significant contributor to taxes in the country through the

2020 -2024 period. Over the past three years, the industry has

experienced a staggering 88% increase in taxes. Your Group contributed a

total of Rs. 99.5 Bn in taxes, including excise duties, to the Government of Sri Lanka in the financial year 2024/25, with a cumulative five-year contribution amounting to Rs. 338.8 Bn.

Carson Cumberbatch PLC, leveraging its diversified business presence and geographic spread, achieved

Rs. 323.9 Bn in revenue and Rs. 53 Bn in Profit from Operations (EBIT) for the financial year 2024/25. The core profit before tax, adjusted for currency

translation impact, impairments and fair value adjustments, was Rs. 48.8 Bn.

Our net asset position increased by 22% to Rs. 174.7 Bn, whilst Earnings Per Share (EPS) increased by Rs. 34 to Rs. 88.84 during the year. An interim dividend of Rs. 3.84 per share was declared, reflecting a dividend payout of 41% from the Company profits. Taking into consideration the total dividends payments for the full year 2024/25, the total dividend per share amounts to

Rs. 8.54.

STRATEGIC DIRECTION AND PORTFOLIO PERFORMANCE

Guided by a clear and focused strategic vision for each of our business segments, we successfully maintained momentum toward achieving our growth and profitability objectives.

Over the years, we have refined our approach across the Group to enhance our competitive positioning and unlock long-term value. Our concerted efforts have included launching key initiatives that reinforce operational efficiency and support sustainable expansion. As a diversified regional holding company, we remain committed to pursuing strategic opportunities across South Asia and beyond, driving resilient performance and delivering lasting value to our stakeholders.

Oil palm plantations

Our Oil Palm Plantations sector achieved 5% year-on-year (YoY) Crude Palm Oil (CPO) sales volume growth in FY 2024/25, despite a slight dip in internal FFB production due

to land reallocation and replanting.

Key operational milestones included the successful commissioning of a new kernel processing plant in West Kalimantan, and the completion of major infrastructure and replanting

projects across Central Kalimantan and Papua in Indonesia. The multi-currency funding strategy that we adopted helped improve our cost structure and financial results. Cost optimisation measures will continue to be prioritized, while harvester incentive realignment, improved crop evacuation, and energy cost reduction initiatives at mills, will remain a key focus in the coming years. Further, we look forward for improved productivity in the coming years from expanding smallholder partnerships and maturing plantations in West Kalimantan and Papua.

Oils and fats

Increased volumes in Specialty Fats and Derivatives (SFD), coupled with favourable raw material price movements contributed to top-line growth during the year. We are

pleased with the gains made through focused customer acquisition efforts and in-market growth in specialty fats, underpinned by continued

improvements in crushing and logistics efficiencies. The manufacturing

plant, saw its volumes increasing by 3% during the year. However, margin performance was moderated in the

latter part of the year due to competitive pressure. Looking ahead, the Sector remains focused on expanding in high-growth segments, strengthening its product portfolio and brand presence, whilst maintaining strong operational discipline to support long-term profitability.

Beverages

Despite signs of broader economic recovery, the alcoholic beverage sector operated in a constrained environment due to multiple tax hikes, which reduced consumer affordability and demand. In response, we remained focused on affordability and launched

cost-effective packaging formats to preserve accessibility and limit volume migration to the informal

market. Our export business expanded by 20% through targeted market penetration across Africa, the Middle East, and South Asia. We successfully commissioned the innovation brewery during the year, which enabled the launch of eight new product variants to meet evolving consumer preferences. Looking ahead, our focus will be on driving innovation and expanding our international footprint to ensure longterm, sustainable growth.

Portfolio and asset management

The portfolio and asset management sector delivered a strong performance during the year, supported by favourable market conditions and a disciplined investment strategy. Improved macroeconomic stability and declining interest rates boosted equity market sentiment, whilst high-yield fixed-income positions from prior periods contributed positively to returns.

The Sector maintained a balanced approach, capitalising on local market growth whilst adopting a cautious stance on overseas investments due to continued global uncertainties.

Looking ahead, the focus will remain on agile asset allocation, risk-managed diversification, and seizing emerging investment opportunities to deliver long-term value.

Leisure

The Leisure sector saw a strong recovery in 2024, driven by a significant rebound in tourism with visitor arrivals nearing pre-pandemic levels. Pegasus Reef Hotel recorded an occupancy of 63% whilst Giritale Hotel recorded a 55% occupancy during the financial year. Despite rising price sensitivity and evolving consumer preferences,

Wedding bookings and the MICE segment continued to gain encouraging traction.

During the year, we continued to advance our property upgrade initiatives, laying the groundwork for long-term value creation. This,

alongside rising costs and competitive pressures, contributed to profitability remaining below pre-pandemic benchmarks, despite improvements in occupancy and business activity.

During the year, the Sector strategically divested its investment in the Giritale Hotel to streamline the portfolio, improve operational efficiency, and strengthen its financial position.

Looking ahead, the focus will be on targeted property enhancements and service excellence to meet evolving traveller expectations and strengthen competitiveness, thereby positioning the Sector to capitalise on future growth opportunities.

Real Estate

Colombo's physical transformation gained momentum in 2024, marked by the completion of several major developments and steady progress across key infrastructure projects. Whilst the conversion of the new developments into occupied spaces remains an industry-wide challenge, occupancy across our investment properties rose from 80% to 85%, supporting an 8% increase in revenue.

Additionally, the portfolio recorded a fair value gain of Rs. 460.9 Mn.

OUR COMMITMENT TO SUSTAINABILITY AND GOVERNANCE

At Carson Cumberbatch PLC, our commitment to sustainability is deeply embedded in our strategic framework. We actively integrate Environmental, Social, and Governance (ESG) principles across all operations, guided by globally recognised frameworks and the United Nations Sustainable Development Goals. Our environmental initiatives focus on conservation, climate resilience, sustainable sourcing, reducing emissions and maximising resource utilisation efficiency.

Socially, we invest in community development, education, employee well-being, and fostering an inclusive workplace culture, whilst supporting local livelihoods. Governance remains central to our ethos, with

a strong emphasis on transparency, accountability and ethical business practices. We maintain a zero-tolerance stance on corruption and are firmly committed to complying with all applicable laws and regulatory requirements across every aspect

of our operations. Reinforcing this commitment, we introduced

comprehensive anti-corruption and whistleblowing policies during the year. Through these dedicated efforts, we strive to create long-term value for

our stakeholders whilst generating meaningful positive impacts for the environment and communities we serve. Further insights into the Group's sustainability efforts are presented in the 'Sustainability Report' section of this Annual Report.

SHAPING THE ROAD AHEAD

Looking ahead, the future presents both challenges and opportunities as we navigate a dynamic global economic landscape. Continued success of

our operations will require vigilant management of geopolitical risks, close coordination of monetary and fiscal policies, and the preservation of open international trade channels. On the local front, sustaining the reform agenda is critical for lasting economic recovery. The timely completion of debt restructuring agreements with all creditors, is vital to securing comprehensive debt sustainability. Equally important will

be the Government of Sri Lanka's role

in providing targeted social support to vulnerable communities, amidst fiscal constraints. With a steadfast commitment to policy reform and disciplined execution, we are well

positioned to foster long-term stability and unlock sustained growth in the years to come.

Within this framework, we remain committed to delivering value through disciplined execution of our strategic initiatives. Our focus will centre on optimising operational performance, enhancing customer experience,

and driving innovation across all business segments. With our strong organisational foundation and dedicated team, we are well-positioned to navigate market challenges whilst pursuing sustainable long-term growth that benefits all our stakeholders.

APPRECIATIONS

I would like to extend my sincere appreciation to Mr. Tilak De Zoysa and Mr. Rajendra Theagarajah, who concluded their tenure on the Board this year. During Mr. De Zoysa's distinguished chairmanship spanning 24 years, the Group benefited immensely from his visionary leadership and strategic foresight, which played a pivotal role in driving our growth and transformation.

Both directors provided invaluable counsel, unwavering dedication, and significant contributions that have

enhanced Carson Cumberbatch PLC's operational excellence and governance framework. Their enduring impact on the organisation stands as a testament to their exemplary service and lasting legacy.

As we look forward to a new year filled with opportunity, I also wish to express my sincere gratitude to everyone who contributed to the continued success of Carson Cumberbatch PLC. My thanks go to my fellow Board members for their insightful leadership and steadfast support in guiding the Group toward its strategic goals. I am equally grateful

to our Senior Management team and all staff for their commitment and resilience, especially in navigating the complexities of today's business environment. To our shareholders,

partners, and stakeholders, your trust and collaboration remain invaluable to us, and we deeply appreciate your ongoing partnership on this journey of shared growth and progress.

(Sdg.)

Mr. W. M. R. S. Dias

Chairman 17th July 2025

Directors' Profile

A banker by profession, Ravi Dias served Commercial Bank of Ceylon PLC for nearly four decades and retired as the Managing Director/Chief Executive Officer of Commercial Bank of Ceylon PLC.

He is the Chairman of Ceylon Tea Marketing (Pvt) Ltd. He also serves on the Boards of Tokyo Cement Company

(Lanka) PLC and United States - Sri Lanka Fulbright Commission.

He had served as Chairman of Senkadagala Finance PLC, Seylan Bank PLC and as Managing Director of Commercial Development PLC and had

also served as a Director on the boards of Lanka Clear (Pvt) Limited, Lanka Financial Services Bureau Limited and Academy

of Financial Studies of the Ministry of Finance & Planning and was a Council Member of the Employers Federation of Ceylon.

He holds a Degree in Law and is a Fellow of the Chartered Institute of Bankers (UK). He is also a Hubert. H. Humphrey

Fellow. Is an alumnus of INSEAD Business School - France, having attended the Advanced Management Programme in Fontainebleau.

Hari Selvanathan is the Chairman of Bukit Darah PLC and Deputy Chairman of Carson Cumberbatch PLC. He is the Deputy Chairman/Group Chief Executive Officer of Goodhope Asia Holdings Ltd., Singapore.

He is the President Commissioner of the palm oil related companies in Indonesia, Director of Sri Krishna Corporation (Private) Limited.

He was the Past President of the National Chamber of Commerce and Past Vice Chairman of the International Chamber of Commerce (Sri Lanka).

He holds a Bachelor's Degree in Commerce.

Mano Selvanathan is the Chairman of Sri Krishna Corporation (Private) Limited and Selinsing Limited. He is a Director of most of the Companies in the Carson Cumberbatch Group in Sri Lanka, Indonesia, Malaysia & Singapore and is an active Member of its Executive Management Forums.

He has served as the Chairman of the Ceylon Chamber of Commerce and The Indo Lanka Chamber of Commerce & Industry and also as the President of the Rotary Club of Colombo North. At present, he is the Honorary Consul of the Republic of Chile in Sri Lanka.

Mano Selvanathan was conferred the National Honours in Sri Lanka the 'DESAMANYA' title by H.E. The President of Sri Lanka, in recognition of the services rendered to the Nation in November 2005.

In January 2011, he was awarded with the prestigious 'PRAVASI BHARATIYA SAMMAN AWARD' by the President of India. He also received the Presidential Honour of 'ORDER OF KNIGHT COMMANDER' in October 2013

awarded by the Government of Chile.

He holds a Bachelor's Degree in Commerce.

Chandima Gunawardena currently serves as a Non-Independent, Non-Executive Director of the Company, having joined the Group Directorate in 1990. During his tenure at Carson's Group, he has served on the Boards of most of its subsidiaries in Sri Lanka and overseas and continues to serve on some of the subsidiary Boards as of date.

Mr. Gunawardena has over five decades of experience in varied fields of business and commercial activities and has held senior positions in Corporate, Mercantile and State Institutions.

He is a Fellow of the Chartered Institute of Management Accountants, UK.

Suresh Shah is the Chairman of Ceylon Tobacco Company PLC and a Director of Carson Cumberbatch PLC, Bukit Darah PLC, Hunter & Company PLC, Hatton National Bank PLC and Lanka Canneries (Pvt) Ltd.

Previously, he was Director & CEO of Ceylon Beverage Holdings PLC & Lion Brewery (Ceylon) PLC, a position he held for 30 years.

He is a Past Chairman of the Ceylon Chamber of Commerce and of the Employers Federation of Ceylon.

Previously, he has served as a Commissioner of the Securities and Exchange Commission of Sri Lanka, a Member of Council of the University of Moratuwa, a Member of the Monetary Policy Consultative Committee of the Central Bank of Sri Lanka and as Head of the State-Owned Enterprise Restructuring Unit of the Government of Sri Lanka.

He is a Fellow Member of the Institute of Chartered Accountants of Sri Lanka.

Saktha Amaratunga is an Independent, Non-Executive Director of Bukit Darah PLC, Carson Cumberbatch PLC and

in several companies of the Carson Cumberbatch Group, Chairman - Audit Committees of the Carson Cumberbatch Group and is also a Commissioner of PT Agro Indomas Indonesia, a subsidiary of the Carson Cumberbatch Group. He is also an Audit Committee Member of MAS Holdings Ltd.

Previously, Regional Audit Controller (Asia Pacific) for British American Tobacco,

he has more than 20 years' experience with British American Tobacco, having performed senior finance roles for

the Group in Sri Lanka and the United Kingdom, and also being the Finance Director of British American Tobacco Operations in the Czech Republic, Sri Lanka, Switzerland, Japan and Malaysia

(IT Shared Services Organization). He was also an Independent Non Executive

Director and Chair of the Audit Committee at Hemas Holdings PLC till November 2024.

Has many years of experience in Strategy Development, Business Restructuring, Risk and Governance, International Finance and People Development. He

is a Fellow Member of the Chartered Accountants of Sri Lanka, Associate Member of the Chartered Institute of Management Accountants, UK and also a Member of CPA Australia.

Sharada is the Director at Goodhope Asia Holdings Ltd [Goodhope], the palm oil plantation arm of CCPLC. She works closely with the CEO and the plantation

operations teams in delivering results for the upstream segment of the business. Sharada is a member of the Executive Committee of Goodhope and works closely with senior management in making key decisions.

Prior to Goodhope, Sharada worked at BNP Paribas in London, Hong Kong and Singapore. Beyond Goodhope, Sharada is passionate about education, especially for children with learning differences.

She is currently a Trustee of an education-focused trust that provides a platform for students to reach their potential through alternative learning methods. Sharada holds a Master of Science (Hons) in Economics from the University of Warwick, UK, and an MBA from IMD, Switzerland.

M M Murugappan served as the Executive Chairman of the Corporate and Supervisory Board of the Murugappa Group India. He presently chairs the Boards of Carborundum Universal (CUMI - a material science company) and Cholamandalam Mitsui Sumitomo General Insurance Company Ltd. of the Murugappa Group.

After a brief stint in the field of Environmental Engineering Design in the United States, Murugappan joined CUMI in the year 1979.

In January 2004, Murugappan took over as Chairman of CUMI, playing a pivotal role in transforming CUMI into an international company. He has broken new grounds

in positioning CUMI as a technology and innovation-driven organization. His strategic approach towards business partnerships with global leaders has been one of the key factors contributing to CUMI's consistent growth, internationally.

Murugappan was appointed as the Non Executive Chairman of Cyient Ltd,

Hyderabad in April 2021. He recently retired from the Board of Mahindra & Mahindra. He served on the Board of Governors of

IIT Madras, for six years till November 2011 and has enabled many industry - academic partnerships. He now serves on the Board of the IIT Madras Research Park and is a mentor to many companies

incubated there. In November 2022, he was appointed Chairman, Board of Governors, Indian Institute of Management, Indore. As Trustee of the Group's AMM Foundation, he is actively involved in the development of various citizenship initiatives, particularly in education, health care, performing arts

and sports. Murugappan holds a Bachelor's degree in Chemical Engineering from the AC College of Technology, University of Madras, India and a Master of Science Degree also in Chemical Engineering from the University of Michigan, Ann Arbor, Michigan, USA. He is a member of the American and Indian Institutes of Chemical Engineers and the Plastics & Rubber Institute. He was elected as a Fellow Member of the Indian Ceramic Society in 2006.

Yew Huat Ong is an Independent Non-Executive Director, Chairman of the Audit Committee and Member of the Nominating Committee of Capitaland Group Pte Ltd. He is a Director of Singapore Mediation Centre.

Mr. Ong was an Independent Director of United Overseas Bank Ltd and Singapore Power Ltd where he chaired the Audit Committee and served in the Nominating Committee and Risk Committee. He

was Chairman of United Overseas Bank Malaysia Bhd from 2012 to 2018. He was previously Chairman of the Tax Academy of Singapore.

During 2008- 2013, he served as a Director of the Accounting and Corporate Regulatory Authority (ACRA) of Singapore where he chaired the Audit Committee

of , and was a member of the Public Accountants Oversight Committee .

Mr. Ong is a Chartered Accountant and began his career with Ernst & Young's London office. He returned to Singapore in 1983 and he later led its transaction advisory and corporate recovery practice in the Far East area. From 2005 to 2012, he served as the Managing Partner and later Executive Chairman of Ernst & Young, Singapore, and as Chief Operations Officer of Ernst & Young Asia Pacific. A known supporter of the Arts, Mr.Ong was the Chairman of the National Heritage Board and Singapore Tyler Print Institute (STPI). He was awarded the Public Service Star in 2017 for his contributions to the Arts in Singapore. In 2023 Mr.Ong was

appointed as Singapore Non-resident High Commissioner to Papua New Guinea.

Mr. Ong holds a Bachelor of Accounting (Honours) degree from the University of Kent at Canterbury. He is a member of the Institute of Chartered Accountants in England and Wales and the Institute of Singapore Chartered Accountants.

A well-known figure in the Sri Lankan business community, Tilak de Zoysa, FCMI (UK) FPRI (SL), Honorary Consul for Croatia and Global Ambassador for HelpAge International was conferred the title of "Deshabandu" by His Excellency the President of Sri Lanka in recognition

of his services to the Country and was the recipient of "The Order of the Rising Sun. Gold Rays with Neck Ribbon" conferred by His Majesty the Emperor of Japan, and was the Recipient of the LMD lifetime achievers' Award 2017.

Tilak de Zoysa was the Chairman of Carson Cumberbatch PLC, Associated CEAT (Pvt) Ltd., Amaya Hotels and Resorts USA (Radisson), Jetwing Zinc Journey Lanka (Pvt) Ltd., Trinity Steel (Pvt) Ltd.,

CG Corp Global Sri Lanka and HelpAge Sri Lanka. He is also the Vice Chairman of CEAT Kelani Holdings (Pvt) Ltd., and serves on the boards of other several listed and private Companies, which include TAL Lanka Hotels PLC (Taj), TAL Hotels and Resorts Ltd, Nawaloka Hospitals PLC, Associated Electrical Corporation Ltd., INOAC Polymer Lanka (Pvt) Ltd., Cinnovation INC., Varun Beverages Lanka (Pvt) Ltd. (Pepsi),

and Is a Member of the Kalutara Bodhi Trust, and immediate Past President of Sasakawa Memorial, Sri Lanka Japan Cultural Center Trust. Mr. Tilak de Zoysa was the past Chairman of the Supervisory Board (AMW) and Advisor to the Al-Futtaim Group of Companies in Sri Lanka, and the past Chairman of the Ceylon Chamber of Commerce, the National Chamber of Commerce of Sri Lanka, HelpAge International (UK), Colombo YMBA and served as a Member of the Monetary Board of Sri Lanka (2003- 2009).

Rajendra Theagarajah has been a veteran banker with a wealth of experience in the Banking and financial services sector.

He counts over 38 years in banking both locally and overseas. Presently, Mr. Theagarajah is a Senior Visiting Fellow of the Pathfinder Foundation a leading

think tank in Sri Lanka. Mr. Theagarajah served as the MD/CEO of Cargills Bank Limited till 30th September 2020. Prior to Cargills Bank, he served as Director/ Chief Executive Officer (CEO) of National Development Bank PLC (NDB) from August 2013 till November 30, 2016 and as CEO/ Managing Director at Hatton National Bank PLC for 9 years until June 2013.

Mr. Theagarajah was also a past Chairman of the Sri Lanka Bankers' Association (Guarantee) Ltd, Financial Ombudsman Sri Lanka (Guarantee) Ltd, former Director of Colombo Stock Exchange and Chairman Emeritus of the Asian Bankers Association. He has also served as a Council Member of the Sri Lanka Institute of Directors. He is a past Chairman of the Ceylon Chamber of Commerce. He has been a past Chairman of the Chartered Institute of Management Accountants

(UK) Sri Lanka Governing Board. He was formerly a co-opted member of CIMA UK's Global Council. Mr. Theagarajah serves as a Founder Trustee of Colours of Courage Cancer Trust. He currently serves on the Boards of Janashakthi Finance PLC (as

its Chairman), Siam City Cement (Lanka) PLC, Professional Insurance Corporation Zambia PLC and First Capital Holdings PLC (as its Chairman). He holds a FCMA (UK), FCA (Sri Lanka), MBA (Cranfield) FIB (Hon), Sri Lanka.

Group Structure

PLANTATIONS, OILS & FATS

Goodhope Asia Holdings Ltd.

• 2008* • 53.33%

Agro Asia Pacific Limited

• 2010* • 100%

Premium Nutrients Pte. Ltd

• 2011* • 100%

Shalimar Developments Sdn. Bhd.

• 1980* • 100%

Agro Harapan Lestari (Private) Limited

* 2008* 100%

AHL Business Solutions (Private) Limited

• 2010* • 100%

Goodhope Investments (Private) Limited

• 2012* • 100%

PT Agrajaya Baktitama

• 1994* • 95.50%

PT Nabire Baru

• 2008* • 95%

PT Agro Wana Lestari

• 2006* • 95%

PT Batu Mas Sejahtera

• 2006* • 95.50%

Premium Oils & Fats Sdn. Bhd.

• 2011* • 100%

PT Agro Indomas

• 1987* • 94.30%

PT Sawit Makmur Sejahtera

• 2008* • 95.50%

Premium Vegetable Oils Sdn. Bhd.

• 1978* • 80%

PT Agro Bukit

• 2004* • 95%

PT Sumber Hasil Prima

• 2006* • 95.50%

Shalimar (Malay) Limited

• 1909* • 99.90%

PT Agro Asia Pacific

• 2008* • 100%

PT Sinar Sawit Andalan

• 2008* • 95.50%

Selinsing Limited

• 1907* • 96.61%

PT Karya Makmur Sejahtera

• 2003* • 95%

PT Sariwana Adi Perkasa

• 2008* • 95.50%

Indo-Malay Limited

• 1906* • 88.69%

PT Agro Harapan Lestari

• 2007* • 100%

PT Agro Bina Lestari

• 2006* • 95% (under liquidation)

  Good Hope Limited
  
  

• 1910* • 95.35%

  PT Rim Capital
  
  

• 2006* • 95%

  PT Agro Surya Mandiri
  
  

• 2006* • 95% (under liquidation)

  Premium Fats Sdn. Bhd.
  
  

  • 1996* • 49%

  BEVERAGE

  Ceylon Beverage Holdings PLC
  
  

• 1910* • 75.62%

  Retail Spaces (Private) Limited
  
  

• 2010* • 100%

  Lion Brewery (Ceylon) PLC
  
  

• 1996* • 60.57%

  Luxury Brands (Private) Limited
  
  

• 2012* • 100%

  Pubs 'N Places (Private) Limited
  
  

• 2007* • 100%

  Millers Brewery Limited
  
  

• 2010* • 100%

  Lion Beer (Ceylon) Pte. Ltd
  
  

  • 2023* • 100%

  PORTFOLIO & ASSET MANAGEMENT LEISURE

  Ceylon Guardian Investment Trust PLC
  
  

• 1951* • 67.82%

  Ceylon Investment PLC
  
  

• 1919* • 66.22%

  Rubber Investment Trust Limited
  
  

• 1906* • 100%

  Guardian Fund Management Limited
  
  

• 2000* • 100%

  Guardian Fund Management LLC
  
  

• 2019* • 100%

  Guardian Value Fund LLC
  
  

• 2019* • 100%

  Leechman & Company (Private) Limited
  
  

• 1953* • 100%

  Pegasus Hotels of Ceylon PLC
  
  

• 1966* • 89.98%

  Equity Hotels Limited
  
  

• 1970* • 100%

  Pegasus Hotels of Ceylon PLC, a subsidiary of Carson Cumberbatch PLC, disposed of its entire shareholding in Equity Hotels Limited to Lavendish Leisure Hotels and Resorts (Private) Limited on 28th March 2025.

  REAL ESTATE MANAGEMENT SERVICES

  Carsons Airline Services (Private) Limited
  
  

• 1993* • 100%

  Equity One Limited
  
  

• 1981* • 98.99%

  Equity Two PLC
  
  

• 1990* • 88.87%

  Equity Three (Private) Limited
  
  

• 1990* • 100%

  Carsons Management Services (Private) Limited
  
  

• 1993* • 100%

(Was struck off on 30th July 2024 from the Register of Companies under Section 394(3) of the Companies Act, No. 07 of

2007)

INVESTMENT HOLDINGS

Baillie Street Holdings Pte. Ltd.

• 2023* • 100%

% refer to group interest

* refer to year of incorporation

Country of Incorporation/Operation

Sri Lanka Indonesia Malaysia Singapore Mauritius

Management Discussion & Analysis

- Sector Reviews

BEVERA GE AMID TAX HIKES, WE STAYED FOCUSED ON AFFORDABILITY AND DELIVERING VALUE FOR MONEY FOR THE CONSUMERS, ACROSS OUR STRONG BEER PORTFOLIO

BUSINESS CONTEXT

Despite broader signs of economic recovery, the alcoholic beverage industry faced a challenging operating environment during the year.

Successive excise duty hikes and a VAT increase led to price adjustments and reduced consumer purchasing power, dampening demand across the sector. During 2024, GoSL implemented a 14.0% excise duty increase alongside a 3.0% VAT hike, followed by an additional 5.9% excise increase in early 2025.

Amid tax hikes, we stayed focused on affordability and delivering value for money for the consumers, across our strong beer portfolio. In FY 2024/25, the Sector launched a 500ml returnable glass bottle for both Lion Strong

and Carlsberg Special Brew, priced approximately 15 - 20% lower than the traditional 625ml bottle and 500ml can Stock Keeping Units (SKUs). This initiative helps maintain access to affordable products whilst reflecting the Sector's commitment to mitigate volume and value migration to the unregulated market.

Complementing these efforts, the year also saw encouraging progress in regulatory accessibility. Collectively, these developments marked a positive step towards curbing illicit trade

and expanding access to regulated, compliant products.

Despite some easing in inflationary pressures during the year, the Sector continued to operate in a high-cost environment, as material costs remained relatively stable, resulting in relatively unchanged profitability margins.

Our targeted strategy to strengthen the international presence centres on 17 key export destinations across Africa, the Middle East and South Asia, focusing on optimised resource allocation and improved market penetration.

PORTFOLIO OF INNOVATIONS UNVEILED DURING THE YEAR

During the year, we expanded our presence in Africa through higher volumes and are exploring contract manufacturing, while strengthening our on-trade reach and product range in key Middle Eastern markets. In the Maldives, we reinforced our leadership with Lion Lager, exported Carlsberg under our licensing agreement, and introduced new innovations. These combined efforts drove a 20% growth in our export business.

KEY HIGHLIGHTS

A key milestone during the year was the commissioning of our advanced innovation brewery, designed to strengthen our product portfolio with draught and specialty beers. The facility

enhances production flexibility, supports small-batch innovation, and enables

the use of local raw materials while managing entry volumes for export markets. Strategically, it plays a vital role in helping us achieve our goal of increasing exports from the current 15% to 20% of total sales, in line with our strategy to meet the growing consumer demand for sessionable and premium offerings.

Accordingly, during the year we launched eight new flavour and style variants, including Ella Valley White (wheat beer), Thambapanni Red Ale, Ambalavi Mango, Cucumber Lime, Fest Celebration Lager, Blonde (a Belgian-style beer), Pure Ceylon Tea Beer, and Coffee Stout. Building on this momentum, we aim to further expand our innovation portfolio in 2025.

FINANCIAL PERFORMANCE

In this backdrop, the Sector recorded a revenue of Rs. 125.2 Bn, a 12% year-

on-year growth, and a profit after tax of Rs. 9.7 Bn. Total segmental assets as of 31st March 2025 stood at Rs. 65.4 Bn.

Underscoring our operational resilience, Fitch Ratings reaffirmed Lion Brewery Ceylon PLC's National Long-Term Rating at "AAA(lka)" during the year.

Revenue Performance

Rs. Bn

125

150

2022 2023 2024 2025

97

112

120

90

60

60

30

0

FUTURE OUTLOOK

Our strategic priorities for the upcoming year are centred on operational excellence and sustainable growth. We aim to localise material sourcing, thereby reducing our reliance on imports and mitigating supply

chain vulnerabilities in the current volatile global environment. This will be complemented by targeted technology investments designed to enhance production scalability and improve cost efficiencies across our manufacturing operations, allowing us to respond more effectively to market dynamics.

Additionally, we are committed to expanding our product portfolio through strategic innovation initiatives that will diversify our offerings and strengthen our competitive position in key consumer segments. Alongside these operational improvements,

we plan to accelerate our talent development programmes, focusing on upskilling our workforce and fostering an innovation-driven culture. Moreover, our focus includes exploring new routes to market to strengthen our export footprint.

OIL P ALM PLANT A TIONS IN JUNE 2024, WE REACHED A SIGNIFICANT OPERATIONAL MILESTONE WITH THE SUCCESSFUL COMMISSIONING OF A STATE-OF-THE-ART KERNEL PROCESSING PLANT IN WEST KALIMANTAN

BUSINESS CONTEXT

FY 2024/25 was another year of strong performance for the sector. During the year under review, the sector reported a 5% year-on-year increase compared to the previous financial year, in total Crude Palm Oil (CPO) sales volumes, demonstrating resilience in our operational performance.

Internal Fresh Fruit Bunch (FFB) production posted a marginal decline of 1% year-on-year, mainly due to

strategic land transfers to smallholders

and the planned replanting of ageing palms. Nonetheless, the sector was effective in leveraging increased external crop purchases to drive overall volume growth and maintain strong market delivery, despite lower oil extraction rates at the mills.

The first quarter of the financial year saw a significant correction in Malaysian Benchmark CPO prices.

This was mainly caused by higher than expected palm oil production levels and decreased export and domestic demand in Malaysia, leading to an inventory

build-up. Prices remained rangebound during the second quarter, however, by the end of the third quarter, increased sharply as Indonesian production turned out to be lower than expected.

Despite periods of volatility, the average monthly CPO price for the financial year, as quoted on Bursa Malaysia, reached MYR 4,397, representing a significant year-on-year improvement of 15%.

In line with this movement in market prices, the Average Selling Price (ASP) of CPO for the sector increased by 15% during the year.

In June 2024, we reached a significant operational milestone with the successful commissioning of a state-of-the-art kernel processing plant in West Kalimantan, the timing of which enabled us to benefit from the sharp rise in Crude Palm Kernel Oil (CPKO) prices. The sector also committed

to long-term value creation by investing in infrastructure for younger plantations, with capital expenditure directed towards road development and improved worker housing to boost efficiency and well-being.

A major replanting initiative was started during the year at PT Agro Indomas in Central Kalimantan, with around 2,000 hectares replanted using high-yielding seedlings, effectively positioning the sector for improved productivity in future harvests. Furthermore, we continued to pursue our expansion strategy by completing 750 hectares of new smallholder plantings in the Papua region.

During the year, we also carried out fertilizer programmes across most operational sites, laying the groundwork for better yields and long-term productivity, while reinforcing our focus on efficiency and sustainable farming.

KEY HIGHLIGHTS

Building on the successful completion of our refinancing initiative in January 2024, we implemented a multi-currency funding strategy during the year, by using a balanced mix of Indonesian Rupiah (IDR) and US Dollar (USD) borrowings. The move towards IDR-denominated debt was especially advantageous, as the 4.6% depreciation of the IDR improved our cost

structure and strengthened financial performance.

Goodhope Asia Holdings Ltd achieved a remarkable milestone in sustainability leadership during the year, advancing to the 7th position out of 100 companies

in the prestigious 2024 SPOTT (Sustainable Palm Oil Transparency Toolkit) Assessment, demonstrating our continued commitment to transparency and sustainable practices.

FINANCIAL PERFORMANCE

Building on its strong operational performance, the sector delivered impressive financial results for the year, posting revenue of Rs. 127.6 Bn

(USD 429.2 Mn) - a 20% (28% in USD

terms) increase from the previous period. This robust growth was mirrored in profitability, with Profit After Tax rising to Rs. 18.4 Bn (USD 62.3 Mn) for the financial year, a year-on-year growth of 83%.

Total segmental assets of the sector as of 31st March 2025 stood at

Rs. 164.9 Bn.

The sector strengthened its financial profile through prudent debt management, successfully

reducing gross debt by Rs. 12.9 Bn (USD 39.7 Mn) while maintaining robust liquidity levels, resulting in an improved net debt position.

Reduction in

net finance costs

↓ 57%

Revenue Performance

150

Rs. Bn

2022 2023 2024 2025

128

150

107

120

65

90

60

30

0

FUTURE OUTLOOK

Going forward, the sector aims to further enhance operational efficiency through several strategic initiatives, including recalibrating harvester payment structures and streamlining crop evacuation processes. The sector also plans to implement energy cost reduction measures across mills and facilities to support margin expansion. To support volume-driven growth, efforts will focus on accelerating smallholder planting programmes and strengthening community partnerships to increase external crop supply, complemented by anticipated yield improvements from younger plantations in the West Kalimantan and Papua regions as they reach peak maturity.

OILS AND F A TS OVERALL, THE OILS AND FATS SECTOR DELIVERED IMPROVED PERFORMANCE DURING THE FINANCIAL YEAR, UNDERPINNED BY STRONG OPERATIONAL EXECUTION AND FAVOURABLE MARKET CONDITIONS

BUSINESS CONTEXT

The sector benefited from higher volumes of Specialty Fats and Derivatives (SFD), supported by increased raw material prices that drove overall revenue growth.

Profitability improved through successful customer acquisition, in-market growth in specialty fats, and disciplined cost-efficiency measures in crushing and logistics. However, the growing price gap between Malaysian and Indonesian markets created

challenging conditions, leading to some margin pressure and a moderation of overall profitability in the second half of the financial year.

Palm kernel, the key input material for the Oils and Fats segment, experienced a steady rise in prices throughout the year. On a year-on-year basis, the average monthly price of palm kernel (PK) increased by 47%, while crude palm kernel oil (CPKO) recorded a

60% increase. These favourable price

movements, combined with volume growth, contributed to stronger revenue performance and margin improvements in the sector during the year.

Premium Vegetable Oils Sdn Bhd (PVO), the Group's specialised Malaysian manufacturing arm which supplies high-quality specialty fats to the chocolate, ice cream, confectionery, and bakery industries, successfully increased its sales volume by 3% for the financial year.

FINANCIAL PERFORMANCE

Overall, the Oils and Fats sector delivered improved performance during the financial year, underpinned by strong operational execution and favourable market conditions.

The sector reported a revenue of

Rs. 67.1 Bn (US$225.3 Mn) for the year, reflecting a 23% year-on-year increase (32% in USD terms), resulting in a Profit after Tax of Rs. 1.6 Bn (US$5.4 Mn).

year-on-year increase in Net Assets

↑ 43%

The sector continues to strengthen its financial position, with ongoing efforts to reduce term loans and improve the net debt-to-equity ratio, which now stands at 0.8 (times).

Revenue Performance

Rs. Bn

100

FUTURE OUTLOOK

Looking ahead, PVO's near-term strategy focuses on targeted expansion within the dairy and confectionery segments, where it sees strong growth potential and evolving consumer demand. The sector will pursue selective enhancements to its product portfolio, strengthening its market position and responding to customer needs more effectively. Simultaneously, strategic investments will be made in brand development initiatives aimed at building greater consumer engagement and long-term equity. Efforts to improve productivity and maintain cost discipline across operations will remain key priorities, ensuring sustainable margin performance.

2022 2023 2024 2025

82

67

80

54

60

43

40

20

0

PORTF OLIO AND AS SET MANA GEMENT OUR INVESTMENT STRATEGY LEVERAGED GROWTH OPPORTUNITIES IN BOTH ASSET CLASSES, CAPITALISING ON THE EQUITY MARKET UPTICK AND BENEFITING FROM HIGH-QUALITY FIXED INCOME

BUSINESS CONTEXT

The Colombo Stock Exchange (CSE) experienced strong growth over the year, with the All Share Price Index (ASPI) climbing by 38.19%, while the S&P SL20 Index advanced by 42.70%.

While the market faced uncertainty and volatility in the first half of the year, it rebounded in the second half, fuelled by economic improvements and a boost in investor confidence following the conclusion of national elections.

The Central Bank of Sri Lanka (CBSL) maintained a downward trajectory

in policy rates throughout the year. The expansionary monetary policy environment and excess interbank

liquidity resulted in lower interest rates, which in turn supported stronger equity markets and economic growth.

The dip in government security yields during the year was driven by the increased economic stability, policy rate cuts, and strong interbank liquidity, as mentioned earlier. However, the decline

in bank deposit rates were moderate, where fixed deposit rates dipped slightly from 8.00 -8.75% to 7.75 - 8.30% by

year-end.

Our investment strategy leveraged growth opportunities in both asset classes, capitalising on the equity market uptick and benefiting from high quality fixed income investments secured in previous financial years.