Annual Report 2024/2025

Kerner Haus Global Solutions PLC

Annual Report 2024/25

Contents

The New Vision

Management Discussion and Analysis

Corporate Governance Financial Information

Supplementary Information

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01

The

New Vision

About Us: A New Era of Growth

Introduction to the Report

We are proud to present the Annual Report of Kerner Haus Global Solutions (KHGS) PLC, (formerly known as Ceylon Printers PLC), for the financial year ended 31 March 2025. This report reflects our evolution and provides a detailed account of our strategic direction, financial results, governance practices, and the strides we plan to make in repositioning our business as a provider of specialised commercial office space and integrated business support services.

Reporting Scope

This report outlines the activities and performance of KHGS from 1 April 2024 to 31 March 2025.

Significant events occurring after the end of the reporting period and up to the date of Board approval on 28 August 2025 have been disclosed in the Notes to the Financial Statements, to ensure the information is current and relevant.

Corporate Governance

At Kerner Haus Global Solutions PLC, we recognise that maintaining transparent, accountable, and ethical governance is essential to building stakeholder trust and sustaining long-term business value. Sound corporate governance forms the foundation of our decision-making and is embedded across all levels of the organisation. This section of the Annual Report outlines the

governance framework, structures, and practices adopted by KHGS and its subsidiaries. It reflects our commitment to both mandatory and voluntary compliance with the Code of Best Practice on Corporate Governance, jointly issued by the Institute of Chartered Accountants of Sri Lanka

(CA Sri Lanka) and the Securities and Exchange Commission of Sri Lanka (SEC).

Standards, Principles, and Frameworks

• Companies Act No. 7 of 2007

• Listing Rules of the Colombo Stock Exchange and subsequent revisions to date

• Code of Best Practice on Corporate Governance issued by the Securities and Exchange Commission of Sri Lanka (2023)

Annual Report 2024/25 7

About Kerner Haus Global Solutions

Kerner Haus Global Solutions (KHGS) PLC, a publicly listed company on the Colombo Stock Exchange, is a strategically repositioned entity. A majority of the shares are owned by Ekta Global, a member of the ShoreTree Holdings group registered in Singapore.

KHGS is set to revolutionise the commercial real estate sector in Sri Lanka by offering high-quality, purpose-built office spaces seamlessly bundled with a comprehensive suite of integrated shared business services. The strategic vision is to leverage market opportunities in distressed commercial real estate in Sri Lanka.

Our model is designed to cater specifically to the operational needs of the rapidly growing Business Process Outsourcing (BPO), Knowledge Process Outsourcing (KPO), and international SME sectors seeking to establish or expand their presence in Sri Lanka.

The core business model centres on leasing this specialised office space, bundled with a comprehensive suite of shared services. This bundling represents a significant value proposition and differentiator, creating a compelling ecosystem of essential business functions available directly at the client's location.

Initially, KHGS will take an asset-light approach by managing two buildings. This phase is designed to quickly establish operational capabilities, generate management fee income, and serve as a tangible proof of concept.

This initial revenue stream and demonstrated management expertise will be instrumental in

de-risking future capital-raising efforts (both equity and debt) planned over the short to medium term, which will then fund the acquisition of initial properties and facilitate the aggressive acquisition targets over the long term.

Our Vision

To be Sri Lanka's leading provider ofi integrated, tech-enabled business infirastructure, empowering global businesses to thrive.

Our Mission

To empower the growth ofi outsourcing businesses by providing purpose-built real estate bundled with a seamless ecosystem ofi essential shared services,

fiostering operational excellence and driving Sri Lanka's position as a premier global talent hub.

Chairman's Message

Fellow Shareholders,

It is with great optimism that I present this Annual Report for Kerner Haus Global Solutions PLC for the year ended 31 March 2025. This year marks a historic turning point for our company. We have concluded the legacy of Ceylon Printers and embarked on a bold new journey, repositioning the company with a new name, a new vision, and a strategy designed to capitalise on one of the most promising growth sectors in the Sri Lankan economy.

The key event defining this financial year was the strategic acquisition which occurred on November 12, 2024, when Ekta Global Pte. Ltd secured a controlling 63.62% stake in the company.

This pivotal moment provided the foundation to address historical challenges and set a clear path toward sustainable profitability. The period following the acquisition has been one of diligent preparation, laying the essential groundwork for our new business model.

The global landscape for business and knowledge process outsourcing (BPO/KPO) is expanding

at an unprecedented rate, and Sri Lanka is rapidly emerging as a destination of choice. Our nation's highly skilled, multilingual talent pool and resilient spirit present a compelling value proposition

for international companies seeking to build and scale their operations. However, navigating the complexities of establishing a presence here-from securing suitable real estate to managing essential support functions-can be a significant barrier to entry.

This is the market need Kerner Haus Global Solutions was primed to address. Our strategy is clear and focused: we provide world-class, purpose-built office infrastructure bundled with a comprehensive suite of integrated business services. We are not simply leasing space; we are

offering a holistic operational platform. This model allows our clients-be they large BPO operators or international SMEs establishing a dedicated offshore team-to focus on their core competencies while we manage the complexities of their physical and administrative environment. This new direction is underpinned by a deep understanding of the outsourcing industry's unique demands.

On behalf of the Board of Directors, I extend my sincere gratitude to our dedicated employees for their commitment during this period of transformation. I thank our bankers and partners for their support, and I thank you, our shareholders, for your continued trust as we embark on this exciting new chapter. We are committed to executing our strategy with discipline and integrity, building a company that is not only profitable but also a key enabler of Sri Lanka's economic future.

Chairman

Annual Report 2024/25 11

02

Management Discussion and Analysis

The Market Opportunity

The strategic repositioning of Kerner Haus Global Solutions is informed by a thorough analysis of powerful global and local market trends. The sustained growth of the global Business Process

Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) sectors, combined with Sri Lanka's emergence as a competitive and talent-rich destination, has created a compelling environment for our business model.

Industry Overview

Global Offshoring Growth

The global offshoring market is predicted to grow from USD 245.9 billion in 2022 to USD 544.8 billion in 2032, reflecting an 8.5% compound annual growth rate (CAGR), as indicated by Market.Us.

Mar½cЧ Sizc ofi Global Ofifishoring (US« Billion)

2022 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F

GLOBAL 8.5%

NORTH AMERICA 9.7%

ASIA-PACIFIC 10.2%

OTHERS 5.6%

While North America will continue to command the lion's share of the market, Asia-Pacific is expected to record the highest CAGR at 10.2%.

The Rise of Offshoring and Digital Innovation in the Asia Pacific Region

Attributes That Make Asia-Pacific a Leading Offshoring Destination

• Covers seven time zones, facilitating round-the-clock services

• Geopolitically stable

• Strong multinational corporation (MNC) presence

• Highly developed infocomm technology infrastructure

• Government incentives

• Fast and secure connectivity to support remote working and virtual collaboration

  BUSINESS ENVIRONMENT

• • Economically stable with minimal corporate risks

  • Supportive regulatory framework

  • Availability and cost of quality real estate

  • Favourable currency exchange rates

• Competitive manpower costs in developing countries

• Young talent pipelines

• Increasing literacy levels and quality standards

• Ability to speak multiple languages

Annual Report 2024/25 15

Offshoring has emerged as a critical driver of office demand in major hubs across the Asia-Pacific region. This trend is notably expanding, as demonstrated by recent market dynamics.

The Information Technology-Business Process Management (IT-BPM) sector has been absorbing large office spaces over the last decade and a half. Its current share is estimated at more than 50% of the total office space leased in the last 5 years.

Source: Savills India

India's office leasing market saw strong growth in Q2 2024, with a 21% Q-o-Q and 27% Y-o-Y rise.

This growth was driven by domestic companies and global capability centres (GCCs) accounting for 46% of the leasing activity. Supply also increased significantly.

The tech sector remains a key driver, but demand is diversifying into sectors like BFSI and flexible workspaces.

Cities like Chennai and Pune are emerging alongside Bengaluru, Hyderabad, and Delhi-NCR. Hybrid work models and flexible workspaces are reshaping the market. Landlords are adapting by offering more flexible leasing options and enhanced amenities. India's real estate sector is set for continued growth, driven by innovation, sustainability, and strategic policies.

Source: CBRE India

Mixed use

5%

Student Housing 3%

Other

7.8%

Residential

12.9%

Office

50.5%

Industrial

and Warehousing

20.8%

With increasing return-to office leading to rising office occupancies, office absorption in India is catching up fast and has reached pre-pandemic levels of activity in 2023.

Source: CBRE India

Positioning Sri Lanka as a BPM Hub

Colombo has much lower congestion and pollution levels than most fast-growing Asian capitals, making it one of the most liveable cities in South Asia. The city enjoys a competitive advantage in knowledge services particularly in the IT/ITeS and logistics sectors.

The IT/ITeS cluster in Colombo is young, vibrant and is rapidly becoming globally significant.

Sri Lanka has the largest road density among South Asian countries, according to the World Bank, with a network of around 100,000 km, of which approximately 12,000 km is Class A.

Notable recent construction projects include the Southern Expressway, which connects Colombo and Matara in the south of Sri Lanka and the Katunayake Expressway, which connects Colombo and the Bandaranaike International Airport (BIA), located 30 km north of Colombo, and reduces travel time between the city and the airport (BIA) to 40-80 minutes.

The Colombo-Kandy expressway will enhance connectivity between Colombo and Kandy enabling easier access for residents and businesses alike, reducing travel time from four hours to 50 minutes. Over the last decade, Sri Lanka has transformed itself into an export-oriented global logistics hub by capitalising on its geocentric importance.

The Colombo Port is considered the busiest port in South Asia and is ranked as the world's 18th best-connected port on UNCTAD's Port Liner Shipping Connectivity Index.

Rapidly changing and expanding telecommunication industry is one of the key enablers for the growth of the IT/ITeS sector, facilitating a competitive edge to the global IT/ITeS market.

Sri Lanka is ranked among the top countries in the world for the cheapest fixed-broadband subscription in the 2020 fixed broadband worldwide price comparison by Cable.co.uk.

With increasing mobile internet penetration, the quality of mobile broadband available in Sri Lanka has exceeded the quality of standard fixed-broadband services.

Mobile data prices in Sri Lanka are much lower than most regional competitors, driven by a strong oligopoly competition.

The telecom providers in Sri Lanka offer the cheapest mobile voice services, ranked ninth in the world for offering affordable entry-level mobile voice packages in the latest report by International Telecommunication Union (ITU).

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Sri Lanka's distinctive and specialised talent pool enhances its competitive position among regional giants. A robust education system, encompassing diverse disciplines, fosters a broad spectrum of skilled professionals. This sophisticated talent is applied across various industries, reinforcing the country's unique standing.

Tertiary level management, maths, and science programmes in Sri Lanka are globally recognized and considered to be one of the best among Asian countries after Malaysia, China and India.

Sri Lankan universities under the University Grants Commission (UGC) maintain a large number of global research and academic partnerships with universities from the United States, Ireland and New Zealand.

Around 40% of the ICT workforce represents 1-3 years of industry experience, and nearly 20% of the workforce has more than 8 years of industry experience, indicating the prime quality of the Sri Lankan ICT workforce.

Sri Lanka's ICT workforce stays current with the latest technologies.

As per ICTA, every IT/ITeS employer in the country employs experts in emerging technologies, with the majority of the workforce utilising tools like cloud computing, workflow management, and mobility platforms.

The existing talent pool of Sri Lanka is primarily a young workforce, indicating an abundance of fresh talent competing for available jobs.

A young workforce is an advantage, increasing the prospects of trainability.

More than half the ICT workforce of Sri Lanka, accounting for 57.95%, is within the age group of 25-34 years, while over 93% is below 45 years.

The combined output of graduates from state and private universities in a given year is approximately 65,000, and nearly 85,000 students enrol annually in professional qualification programmes such as CIMA, ACCA, CFA, and CA.

Sri Lanka has the highest number of UK recognised accounting qualifications outside of the United Kingdom.

Additionally, the annual student output from vocational training institutes that offer qualifications in disciplines such as ICT, engineering, finance, banking, and management is approximately 46,000.

6.6

SofiЧwarc Enginccrs

Average Entry Level Compensation

4.0

USD 000's

3.9

USD 000's

2.5

USD 000's

USD 000's

Busincss AnalysЧs

Average Entry Level Compensation

AccounЧanЧs

Average Entry Level Compensation

CusЧomcr SupporЧ SpccialisЧs

Average Entry Level Compensation

Annual Report 2024/25 19

The Colombo Port City (CPC) is a 269-hectare reclaimed land area overlooking the Indian Ocean. It was declared as a service-oriented Special Economic Zone by the Colombo Port City Economic Commission Act, No. 11 of 2021 ("CPCEC Act"). The Colombo Port City Economic Commission ('the Commission') has been delegated administrative authority over the CPC and is the authority responsible for granting licences and permits to authorised persons to operate within the CPC.

Economic AcЧiviЧics ThaЧ Arc PromoЧcd WiЧhin Чhc Colombo PorЧ CiЧy

Regional sourcing and buying

Shipping logistics and support

Offshore banking and financial services

Digital technology

Corporate headquarters

Medical/MICE tourism

Leisure and lifestyle

International trade

Conccssions availablc

• 0% personal income tax

• 100% capital and profit repatriation

• 100% foreign ownership

• 16 designated currencies

• 5-10 year preferential visa

• 25+ years of tax exemptions

• Competitive regulatory environment

• Future-ready infrastructure

• Strong investment protection

The Colombo Port City is anticipated to boost FDI inflows into Sri Lanka, supported by robust regulatory frameworks designed to protect investors and the various incentives offered to foreign investors.