198201012898 (92647-H)

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF YTL CORPORATION BERHAD

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of YTL Corporation Berhad, which comprise the statements of financial position as at 30 June 2025 of the Group and of the Company, and the income statements, statements of comprehensive income, statements of changes in equity and statements of cash flows of the Group and of the Company for the financial year then ended, and notes to the financial statements, including material accounting policy information, as set out on pages 121 to 328.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group and of the Company as at 30 June 2025, and of their financial performance and their cash flows for the financial year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia.

Basis for Opinion

We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence and Other Ethical Responsibilities

We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code.

Key Audit Matters

Key audit matters are those that, in our professional judgement, were of most significance in our audit of the financial statements of the Group and of the Company for the current year. We have determined that there are no key audit matters to communicate in our report in the financial statements of the Company. These matters were addressed in the context of our audit of the financial statements of the Group and of the Company as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

198201012898 (92647-H)

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF YTL CORPORATION BERHAD (CONTINUED)

Key Audit Matters (Continued)

1. Impairment assessment of goodwill

(Refer to Notes 2(i), 2(o)(ii), 3(a) and 20 to the financial statements)

The risk

As at 30 June 2025, goodwill on consolidation amounted to RM8,577 million. The goodwill is primarily allocated to YTL PowerSeraya Pte. Limited, Wessex Water Limited and Malayan Cement Berhad as disclosed in Note 20 to the financial statements.

The recoverable amounts of the cash generating units (“CGU”) are determined based on value-in-use (“VIU”) calculations. The key assumptions and sensitivities are disclosed in Notes 20(a) and 20(b) to the financial statements respectively.

We focused on this area as the estimation of the recoverable amount is inherently uncertain and requires significant judgement on the future cash flows, terminal growth rate and the discount rate applied to the projected cash flows.

How our audit addressed the key audit matter

Our and component auditors’ audit procedures included the following:

・agreed the cash flow projections of each CGU to the financial budgets approved by the Directors;

・compared historical forecasting for the current financial year to actual results achieved to ascertain the reasonableness of management’s estimates;

・discussed with management the key assumptions used in the respective cash flow projections and compared the revenue growth rates to the historical performance of the respective CGUs;

・evaluated the reasonableness of the discount rates and terminal growth rates with the assistance of valuation experts by benchmarking to the respective industries and against publicly available macroeconomic and industry data, where available;

・checked the sensitivity analysis performed by management over discount rates, terminal growth rates, and revenue growth rates, used in deriving the respective cash flow projections; and

・checked the appropriateness of disclosures in the financial statements.

198201012898 (92647-H)

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF YTL CORPORATION BERHAD (CONTINUED)

Key Audit Matters (Continued)

2. Acquisition of NSL Ltd (“NSL”)

(Refer to Notes 2(j) and 16(a)(i) to the financial statements)

The risk

On 23 July 2024, the Group entered into a sale and purchase agreement with 98 Holdings Pte. Ltd. for the acquisition of 303,484,453 ordinary shares in NSL Ltd (“NSL”), representing approximately 81.24% equity interest in NSL for a total cash consideration of SGD227.6 million (equivalent to RM730.0 million).

Accordingly, the Group accounts NSL as a subsidiary of the Group in accordance with MFRS 3 “Business Combinations”. The fair value of net identifiable assets acquired on the date of acquisition was assessed via a preliminary purchase price allocation (“PPA”) exercise.

We focused on the above as the assumptions used in determining the fair values of net identifiable assets acquired and liabilities assumed are inherently uncertain, requires significant judgement and are sensitive to change.

How our audit addressed the key audit matter

Our audit procedures included the following:

・reviewed management assessment on the acquisition date, being the date the Group has obtained control over NSL;

・assessed the basis for determining the fair values of identifiable assets and liabilities assumed at the date of acquisition;

・checked the calculation of the provisional gain on bargain purchase arising from the acquisition of NSL, being the difference between the total purchase consideration and the fair values of net identifiable assets acquired and liabilities assumed; and

・checked the appropriateness of disclosures in the financial statements.

198201012898 (92647-H)

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF YTL CORPORATION BERHAD (CONTINUED)

Key Audit Matters (Continued)

3. Acquisition of Ranhill Utilities Berhad

(Refer to Notes 2(j), 2(o)(ii) and 16(a)(vii) to the financial statements)

The risk

On 28 May 2024, the Group entered into an unconditional share purchase agreement with Tan Sri Hamdan Mohamad, Hamdan Inc. (Labuan) Pte. Ltd. and Hamdan (L) Foundation for the acquisition of ordinary shares in Ranhill Utilities Berhad (“Ranhill”), representing a 31.42% equity interest, for a cash consideration of RM405.2 million. Together with previously held interest in Ranhill of 21.77%, this acquisition increases the Group’s aggregate direct shareholding to 53.19% and was completed on 31 May 2024.

During the financial year, the Group finalised its purchase price allocation (“PPA”) exercise and the fair value of identifiable net assets recognised on date of acquisition was RM1,561.8 million, of which RM659.1 million relates to additional fair value adjustments. The goodwill recognised amounted to RM129.3 million.

We focused on the above as assumptions made in determining the fair value of the identifiable assets acquired and liabilities assumed are inherently uncertain, requires significant judgement and are sensitive to change.

How our audit addressed the key audit matter

Our and component auditors’ audit procedures included the following:

・obtained and discussed the PPA report prepared by an independent professional valuer for the acquisition to assess the appropriateness of the identification of assets and liabilities assumed at the date of acquisition;

・assisted by a valuation expert in assessing the assumptions used and the appropriateness of the methodology adopted in the PPA report prepared by an independent professional valuer in determining the fair value of the identifiable assets acquired and liabilities assumed as well as assessing the reasonableness of the discount rates used in the underlying cashflow projections, where applicable;

・checked the calculation of provisional goodwill arising from the acquisition of Ranhill, being the difference between the total purchase consideration and fair value of previously held equity interest, and the fair values of net identifiable assets acquired and the proportionate share of the fair value of non-controlling interests; and

・checked the appropriateness of disclosures in the financial statements.

198201012898 (92647-H)

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF YTL CORPORATION BERHAD (CONTINUED)

Key Audit Matters (Continued)

4. Capitalisation policy on property, plant and equipment of the water and sewerage business in the United Kingdom

(Refer to Notes 2(g), 3(b) and 11 to the financial statements)

The risk

During the financial year ended 30 June 2025, the cost capitalised for property, plant and equipment of the water and sewerage business division in the United Kingdom was RM2,393.7 million. This cost comprised capital expenditure incurred by the segment to meet the development and regulatory requirements of the business, employee and overhead costs that are directly attributable to the construction of the assets.

Significant judgement is involved in determining whether costs incurred, specifically employee and overhead costs meet the relevant criteria for capitalisation in accordance with MFRS 116 “Property, Plant and Equipment”.

How our audit addressed the key audit matter

Our and component auditors’ audit procedures included the following:

・tested the operating effectiveness of the controls over authorisation of selected projects’ infrastructure assets and identification of capital expenditures attributable to the infrastructure assets;

・reviewed the nature of costs incurred through discussion with management and corroborated with supporting information provided and checked whether the costs incurred met the capitalisation criteria in accordance with MFRS 116;

・sampled capital expenditure costs in the year and agreed the costs to underlying support, including timesheets and invoices; and

・challenged management’s assumptions used in allocating certain costs between capital and operating expenditure. Specifically, this has included assessing the appropriate capitalisation of the various types of costs such as overheads, interest, and infrastructure maintenance.

198201012898 (92647-H)

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF YTL CORPORATION BERHAD (CONTINUED)

Key Audit Matters (Continued)

5. Impairment assessment of property, plant and equipment (“PPE”) of the telecommunications business

(Refer to Notes 2(g), 3(c) and 11 to the financial statement)

The risk

The Group has PPE related to its telecommunications business division with aggregate carrying values of RM1,987.8 million as at 30 June 2025.

The Group performed an impairment assessment on the carrying values of the PPE due to the losses recorded by the business division which is an impairment indicator.

The impairment assessment was performed by management using fair value less costs of disposal (“FVLCD”) cash flows which require significant judgement as the timing and quantum of the cash flows is dependent on the achievement of the forecast financial budgets which are dependent on the use of key assumptions comprising its growth targets, and sourcing contract renewals.

How our audit addressed the key audit matter

Our and component auditors’ audit procedures included the following:

・discussed with management the assumptions underlying the cash flow projections;

・assessed key assumptions including the discount rate, average service revenue growth rate, long-term growth rate and useful life of the assets by comparing these assumptions against publicly available macroeconomic and industry data, as well as historical data and market expectations from industry reports, where available;

・assisted by a valuation expert in assessing the assumptions used and the appropriateness of the methodology adopted by management for impairment assessment;

・assessed the reliability of the approved budget by comparing the previous years’ approved budget against past trends of actual results;

・checked the sensitivity analysis performed by management by stress testing the discount rate and average service revenue growth rate; and

・checked the appropriateness of disclosures in the financial statements.

198201012898 (92647-H)

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF YTL CORPORATION BERHAD (CONTINUED)

Information Other than the Financial Statements and Auditors’ Report Thereon

The Directors of the Company are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the financial statements of the Group and of the Company and our auditors’ report thereon.

Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the Group and of the Company or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Statements

The Directors of the Company are responsible for the preparation of financial statements of the Group and of the Company that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia. The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation of financial statements of the Group and of the Company that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements of the Group and of the Company, the Directors are responsible for assessing the Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the Company as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

198201012898 (92647-H)

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF YTL CORPORATION BERHAD (CONTINUED)

Auditors’ Responsibilities for the Audit of the Financial Statements (Continued)

As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

・Identify and assess the risks of material misstatement of the financial statements of the Group and of the Company, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

・Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and of the Company’s internal control.

・Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.

・Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s or the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements of the Group and of the Company or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group or the Company to cease to continue as a going concern.

・Evaluate the overall presentation, structure and content of the financial statements of the Group and of the Company, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

・Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

198201012898 (92647-H)

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF YTL CORPORATION BERHAD (CONTINUED)

Auditors’ Responsibilities for the Audit of the Financial Statements (Continued)

From the matters communicated with the Directors, we determine those matters that were of most significance in the audit of the financial statements of the Group and of the Company for the current year and are therefore the key audit matters. We describe these matters in our auditors’ report unless law and regulations preclude public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

In accordance with the requirements of the Companies Act 2016 in Malaysia, we report that the subsidiaries of which we have not acted as auditors, are disclosed in Note 46 to the financial statements.

Other Matters

This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the Companies Act 2016 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

HLB LER LUM CHEW PLT

201906002362 & AF 0276

Chartered Accountants

CHEW LOONG JIN

03279/03/2027 J

Chartered Accountant

Dated : 25 September 2025

Kuala Lumpur

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