DE RAJ GROUP AG Corporate Presentation 1 1 Disclaimer Forward - - - PowerPoint PPT Presentation

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DE RAJ GROUP AG

Corporate Presentation

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Disclaimer – “Forward-Looking Statements”

The statements made in this presentation may contain forward-looking statements. Words such as "should", "would", "could", "may", "believe", "anticipate", "expect", "intend", "foresee", "planned", "estimate", "outlook" and other similar expressions are used to identify forward-looking statements. These forward-looking statements involve significant uncertainties, risks and assumptions that could cause actual results to differ, be it from historical results or current / future projections, including but not withstanding the following known material factors:

• Risks relating to the review of our accounts for foreign currency effects and any resulting financial restatements, pro forma

corrections, filing delays, regulatory non-compliance or litigation

• Risks of additional information arising during our review of accounting for foreign currency effects, causing us to make additional

changes or find other material weaknesses

• Competitive factors in the industry
• Risks relating to our information technology infrastructure and IP
• Risks relating to business operations
• Risks related to third parties which we are engaged in contracts with
• The ability to hire key staff members
• Risks relating to legislation or government regulations that directly affect the business
• Risks associated with being a public entity
• Risks relating to social, economic or political conditions, either worldwide or local
• Risks of currency fluctuations and foreign exchange controls
• Risks of integration
• Risks relating to tax, and any other risk factors as mentioned in our prospectus

Please do not place undue reliance upon any of these forward-looking statements, which speak only as of the date of this presentation. We undertake no obligation to update or revise our forward-looking statements post publication of this presentation on the aforementioned date, whether as a result of future events, new information or otherwise, except as required by law.

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CONTENTS

1. Company Overview 2. Strategic Direction 3. Products & Solutions 4. Secured Contracts 5. Company Assets

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Company Overview

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Introduction

History

• De Raj Group AG’s, subsidiaries Hummingbird and

Gryphon began operations with offshore marginal fields in 2011, and have had contracts with multiple clients in Malaysia and Indonesia, including PT Pertamina Hulu Energy, who is still a client today.

• Gaea Power GmbH was founded in 2015, when

De Raj Group began operations in the power industry, also establishing a presence in Germany.

Assets

• Active: 8 CHP’s with combined capacity of 3 MW

were sold in July 2018 and replaced with 18MW CHP units which will become

• perational in the first quarter 2019;

MOPU “BOSS 1”

• Reserve: 5 offshore rigs, power generation assets

and processing equipment

• Intangible: Worldwide patents for offshore rig

technology

Values

• We value innovative, visionary perspectives with

regards to the complex challenges our clients face

• We strive for smart simplicity in everything we do

because we operate in highly complex changing environments

• We value people with the drive and passion to make

a positive impact on our business and our clients

Net worth – EUR 125 million

Tangible Asset Base – EUR 129 million Intangible Asset Base – EUR 20 million Term Debt – EUR 24 million

Operational Presence

Malaysia Indonesia Germany

Listing

Vienna listed 8th February 2018 Trading in Frankfurt & XETRA as of March 2018 Investigation of IPO in Frankfurt

• planned first

Quarter 2019

“Powering economic growth with a clear conscience to create enduring prosperity for everyone”

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Company Listing

De Raj Group AG has been listed and traded successfully on the EU-regulated market of the Vienna Stock Exchange since 8th February 2018. The De Raj Group is also listed and traded at the Open Market in Frankfurt / Main and at XETRA of Deutsche Börse AG since 23rd March 2018 De Raj Group has plans to investigate an IPO in Frankfurt during the First Quarter

• f 2019.

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Strategic Direction

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Strategic Direction

Energy

FPU / FPSO / FLNG MOPUs Development

• f O&G Fields

Flare Gas Recovery

Independent & Distributed Power Producer

500 MW IPP Diesel / Gas CHP Projects (11MW Diesel & 7MW Gas)

Leasing Oil & Gas Equipment

Now Planned

Leasing Power Generation Equipment

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Oil & Gas Business Model

Build / Convert, Own, Operate & Lease Offshore Production Facilities

FLOATERS FPSO, FPU, FLNG & FSO’s GREENFIELDS TO BROWNFIELDS CONVERTED JACK-UPS MOPU’S, ACCOMODATION Real Estate & Facilities for EOR (ERF) (detachable platforms) Drilling Rig/ Drilling with Early Production (DREPS) + WHP) Integrated Hydrocarbon Production Services Provider

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Technological Edge – Value Creation

In 2009, Tech Valued at USD 200 million

PATENTED Detachable Platform

Mobile Offshore Production & Storage Unit

PATENTED Flow Assured Systems & Technologies (FAST™) NOVEL Drilling with EPS

Approval in Principle 7 November 2008 Revised on December 2, 2008

Conventional Remote Field Development

Drilling Rig WHP MOPU FSO

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Technological Edge

Conventional Remote Field Development Removeably attached WHS and MOPU – saving USD 35 Million With MOPSU savings in excess of USD 100Million

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Technological Edge

Wellhead Deck is Removeably Attached to the Hull and / or Deck Frame

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Strategic Focus

Flexible approach for delivering specific solutions to client’s requirements

Challenges Characteristics & Requirements Our Solution Marginal Fields

• Challenged Economics
• Small Size
• Lean Operators
• Accelerate Production
• Reduce Upfront CAPEX
• Reduce Operating Cost

Early Production

• Early Revenue Generation
• SIMOPS (drilling + production)
• Info gathering for facilities design
• Fully Integrated Facilities
• Ready to Promptly Deploy
• Right-Size Perm. Facilities

Stranded Fields

• Lack of Infrastructure
• Remote Location
• Less known data on wells/reservoir
• Integrated Approaches
• Self-Installing Facilities
• Extended Well Test Facilities

EOR/IOR Activities

• Costly
• Technically Challenging
• Space, e.g. Deck Area, Restrictions
• Add deck space via MdWHP
• Real Estate
• Flow-Solutions

End of Life Fields

• Oversized, Redundant Facilities
• High Operating Costs
• Declining Production
• Reduce Abandonment Cost
• Reduce Operating Costs
• Extend Reservoir lives by

EOR & USR Drilling

Early Monetisation of Stranded Assets

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LNG trade doubling by 2040

Natural Gas

Consumption Production Trade

Bcf/d Bcf/d 700 700 N America China Middle East Africa Europe India & Other Asia CIS Other Pipeline* LNG Consumed regionally 600 600 500 500 400 400 300 300 200 200 100 100 2016 2040 2016 2040 2016 2040

*Pipeline gas refers to inter-regional pipeline trade

Gas outpacing other fossils Natural Gas Grows Strongly with Broad Based Demand

2018 BP Energy Outlook

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Products & Solutions

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Products & Solutions

MOPU

• Mobile Offshore

Production Unit: Relocatable and reusable platform converted from jack-up rigs, with oil & gas production and export facilities

EPS

• Early Production System

utilising an EWT module to produce during prolonged well test programmes

MOPU + Detachable Well Head Platform (WHP)

• MOPU and patented

MdWHP™ as early production facilities

• The integrated solution allows

field development in stages allowing the WHP to be detached only when necessary based on production levels

Accommodation jack-Up

• Relocatable

accommodation platform with helideck and cranes to perform platform hook-up and commissioning or refurbishment work

• Provide stable platform to

increase productivity during harsh weather conditions, with advantages over accommodation barges

Significant cost savings and accelerated revenues by delivering innovative and integrated solutions

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Products & Solutions

FLNG – Planned 2020/2021 Floating LNG liquefaction vessel FLNG has every potential to be a game changer for the liquefaction industry from both technical and commercial stand points in the same way as FPSOs have enabled the economic development of remote offshore oil fields. FPU – Being Built – To be Commissioned in 2019 Floating Production Unit A FPU installation is a floating facility. It is equipped with hydrocarbon processing equipment for separation and treatment

• f crude oil, water and gases, arriving on

board via flexible pipelines

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Secured Contracts

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BOSS 1

Revenue Start Date: Ongoing

• Nature of contract: Lease of asset
• Annual Topline: USD 18.98 million
• Annual EBITDA: USD 16.5 million
• Asset value: USD 70 million
• Contract period: 2 years

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Temporary Production Facility / FPU

Revenue Start Date: July 2019

• Nature of contract: Build Own Operate
• Annual Topline: USD 38 million
• Annual EBITDA: USD 28 million
• Asset value: USD 100/180 million
• Contract period: 10 years

FPU - For illustration purposes only Malaikat - To be converted to a Temporary Production Facility

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Revenue Start Date: January 2019

• Client :

German Power GmbH

• Power Purchase Agreement signed in March

2018 (10 years)

• Capacity : 7 MW gas engine generator

for Combined Heat and Power

• Project Cost : USD 1. 6 million (EUR 1.4 m)
• Annual Topline: Average USD 0. 96 million
• Annual EBIDTA: Average USD 0. 96 million

For Illustration Purposes Only

Project 7 MW Power Plant

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Revenue Start Date: January 2019

• Client :

German Power GmbH

• Power Purchase Agreement yet to be signed (10

years)

• Capacity : 12 MW Rolls Royce engine generator
• Project Cost : USD 8.1 million (RR engines 6 m )
• Annual Topline: Average USD 1.6 million
• Annual EBIDTA: Average USD 1.6 million

For illustration purposes only

Project 12 MW Power Plant

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Company Assets

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Project Combined Heat and Power

Client German Power GmbH Location Operating from Germany Asset 9 CHPs with a combined generation capacity of 18 MW Conversion 2018 – Ongoing Contract Period Up to 31st December 2029 Contract Value EUR 5 million Facilities

• Heat Recovery System
• Power Generation System
• Fuel Storage
• Transformer
• Switchgear
• Grid Connector Skid

Capacities

• 18 MW

Project PHE-38 Temporary Production Facility

Client

• PT. Pertamina Hulu Energi

Location West Madura Offshore, Indonesia Asset MOPU “BOSS 1” Conversion September 2013 – March 2014 Contract Period 2 years lease (May 2014 – May 2016), extended by another 3 years Contract Value USD 110 million Facilities

• Production Separation
• Gas Export Compression
• Produced Water Treatment
• Flare Gas Recovery
• Gas Lift
• Gas Power Generation
• Accommodation & Helideck

Capacities

• 6,000 bpd crude oil
• 4,000 bpd produced water
• 75 mm scfd gas processing & flare gas recovery
• 20 mm scfd gas lift

Active Assets

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South East Asia Gulf of Mexico

Compressor Train

9390 Waukesha Gas Engine Driven Compressor Train

Rigs

GAEA 3 GAEA 4 MALAIKAT POSEIDON (Mat) (Mat) (Independent Leg) (Independent Leg)

Cranes

Various Capacity ranging from 7 tonnes to 60 tonnes

Generator Sets

CAT 3516 B – 6 units, 1.5 MW

Modular Early Production System

Extended Well Testing / Early Production System 13k bpd liquids, 8 mm scfd gas

Rigs

GAEA 200 (Mat)

Reserve Assets (Tangible)

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Reserve Assets ( Patents Intangible)

Technology Map

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Reserve Assets (Intangible)

Types of Technology

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Reserve Assets (Intangible)

Types of Technology

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Track Record

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Project awarded in March 2011

• In February 2011, Petronas Carigali Sdn. Bhd. (PCSB)

urgently required a gas compression and export plat- form to stand in for the Bekok-C platform that was undergoing major refurbishment work. De Raj Group was awarded a contract by PCSB for the provision of a Mobile Offshore Production Unit (MOPU) to be installed adjacent to their platform, the Bekok-C. De Raj Group used an already owned Baker Marine, 3 columns, mat supported drilling rig, named RUBICONE and converted the jack up unit to a Mobile Offshore Production Platform (MOPU).

• MOPU RUBICONE was transformed into a production

unit in Singapore within a period of six months. The unit was refurbished and underwent life extension through renewal of leg to mat connections, steel renewal on hull, mat and legs, blasting and painting. The drilling equipment and its associated equipment that was previously on the unit were removed.

• MOPU RUBICONE had the capacity to manage 165

mm scf / day of gas and 6,000 bbls / day of crude oil production.

MOPU RUBICONE

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26th October 2013

Successful Demob

1717hrs : Hull Jacked Down to 6’ draft + watertight checks 1614hrs : Hull start to jack down 1746hrs : Mud mat retrieved from seabed & MOPU slowly pulled away from Bekok-C platform by 3 AHTs 1912hrs : MOPU towed to 500m away from Bekok- C platform

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BOSS 6

Project undertaken in final quarter of 2012

• Refurbished and reactivated a cold stacked Bethlehem Steel

Corp., JU-200 MC Type, 3 columns, mat supported drilling rig, tagged BOSS 6 for future projects

• Refurbishment of all drilling equipment including a 1,392,000

lbs derrick and a 500 ton top drive

• Complete servicing of mud pumps, deep well pumps, etc.
• Complete refurbishment of marine systems, power

generators, cranes, water makers, etc.

• Complete refitting and renovation of living quarters

for 80 men

• Refurbishment of the helideck to CAP 437 as well as

provision for 2 burner booms on the port and starboard side for flaring

• Provision for extended well test module installation.

The extended well test module for testing and subsequent production has the capacity to handle 13,000 bbls / day of liquid and 8 mm scf / day of gas

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Life Extension Work

Project Rig Reactivation & Refurbishment Client Falcon Energy (L) Inc. Location Singapore Asset BOSS 6 Reactivation Oct 2012 – Jan 2013 Contract Value USD 18 million Scope of Work

• Refurbishment of all drilling equipment
• Servicing of all pumps, mud pumps,

deep well pumps, etc.

• Complete refurbishment of marine

systems, power generators, cranes, water makers, etc.

• Complete refitting and renovation
• f living quarters for 80 men
• Refurbishment of helideck

Capacities

• 20,000 feet drilling depth
• 15 feet by 40 feet drilling envelope

Life extension work was carried out on the following vessels:

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MOPU BOSS 1

Project awarded in May 2014 Facilities

• Export Compression
• Crude Export
• Production Separation
• Flare Gas Recovery
• Fuel Gas System
• Produce Water System
• E-House
• Living Quarters
• Power Generation

Capacities

• 10,000 bbls/d Total Liquid
• 75 mm scf/d Gas Processing
• 75 mm scf/d Gas Compression
• 20 mm scf/d Gas Lift

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MOPU BOSS 1 Contract

Contract summary

Counter party: PT Pertamina Hulu Energi West Madura Offshore (PHE WMO) Day rate: USD 52,000 per day Scope of work: Provision of a Mobile Offshore Production Unit with marine systems and crude oil and gas processing facilities which includes :

• a production separator
• booster compressors,
• il pumps
• power generation,
• PLC control system
• fuel gas system
• water treatment
• gas lift compressor.

Scope also includes the provision of operation and maintenance (O&M) services and accommodation up to 60 pax. Cancellation: Termination of contract only in the event if the MOPU underperforms significantly for a prolonged period or if the global oil prices plunges to a very low level. Payment terms: Within 30 days from the date of receipt of approved invoices. Guarantees: Performance Bond and Insurance Key sub-contractors: PT Nuriraja Energy BUT Gryphon Energy (SEA) Sdn Bhd Main work sites: West Madura Offshore field

West Madura Offshore Field Main Work Sites:

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Full Year as at 31st Dec 2018 2019 2020 2021 2022

Inflow (USD 000’) Days 365 365 366 365 365 Day Rate 52 52 52 52 52 Daily Charter Income 18,980 18,980 19,032 18,980 18,980 Outflow O&M Costs

• 3,650
• 3,650
• 3,660
• 3,650
• 3,650

Insurance

• 300
• 300
• 300
• 300
• 300

Equipment Major Overhaul

• 1,000
• 1,000
• 1,000
• 1,000
• 1,000

Cash Flow 14,030 14,030 14,072 14,030 14,030 Loan Repayment

• 6,400
• 6,400
• 6,400
• 6,400
• 4,400

Interest

• 2,000
• 1,950
• 1,900
• 1,850
• 1,200

Net Cash Flow 5,630 5,680 5,772 5,780 8,430 NPV @ 5% 60,779 NPV @ 10% 53,216

• 2.5 years firm contract with

PERTAMINA from 20th Feb 2017

• Contract value of

USD 49.9 million

• No up-front payment
• Cash flow as attached with

assumption that contract will extend further after the 10th Sep 2019

• Estimated vessel day rate of

USD 52,000 / day

• Estimated annual periodic

maintenance, other expenses of

• approx. USD 1 million per year

MOPU BOSS 1 Contract – Stable Cash Generation

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Appendix

38 38 Nagendran Nadarajah Chairman of the Management Board

• Masters degree of Business Administration in Finance at City University Business School, renamed in 2002 as CASS Business School,

City, University of London and was a Fellow of the Chartered Association of Certified Accountants (ceased membership).

• Broad experience of over 40 years in the oil & gas industry, commerce and educational institutions, mostly in the United Kingdom

and Malaysia and is very familiar with intellectual property (IP) development and protection.

• Held patents for some early oil & gas products and was instrumental in the listing of Perisai Petroleum in 2004.
• Built the company Corro-Shield (M) Sdn Bhd from ground up to an estimated RM 30 million annual turnover. Main company behind

the subsequently listed Perisai Petroleum Teknologi Berhad with a market capitalisation in excess of RM 400 million when he sold his shares in 2010 to start Gryphon Energy.

• In October 2009, Perisai Petroleum Teknologi Berhad was awarded the “Excellence in Innovation” award by Frost & Sullivan for

Perisai’s potential contribution to the development of marginal and uneconomical offshore oil and gas fields using MOPSU™ technology.

• Perisai was the first company in the oil and gas industry in the Asia Pacific region to be awarded the accolade.

Eelasegeran T Nadarajah Interim Group CEO & Member of the Management Board

• Degree in Civil Engineering (Hons) from Loughborough University of Technology, United Kingdom. Joined Petronas, the Malaysian

National Oil Company, in September 1981 and served the company for close to 32 years in various capacities. Assumed various positions in projects and planning including Site Engineer, Project Manager and Strategy Development Head in the company’s upstream E&P arm, Petronas Carigali Sdn Bhd (PCSB). Moved to senior management positions, leading overseas assignments from February 2004, assuming the responsibilities of Country Head, Petronas Algeria and later in 2006, Country Head, Petronas Uzbekistan.

• Upon retirement from Petronas, moved to the service industry and was with offshore facilities provider, Gryhon Energy (the predecessor
• f De Raj Group) since August 2013 to mid-2015, serving as the Chief Marketing Officer, leading all the marketing and commercial effort
• f the Gryphon Group. Since 2015, was on a freelance consulting mode for both Gryphon and a Middle Eastern company.
• Since Jan 2018, joined De Raj Group (DRG) as President, Middle East & North Africa (MENA) leading the business development and

project implementation in the region. In particular, Power Plant projects and potential oil & gas projects employing the patented technology of DRG are key areas of focus.

Nicholas de Raj Deputy CEO & Member of the Management Board

• BSc (Hons) degree in Economics and Mathematics at Bristol University in July 2016. Set up the subsidiary Gaea Power GmbH

in early 2016, being the Managing Director of Gaea Power GmbH.

• After graduation, Nicholas joined a training program at the bank UOB Kay Hian, Singapore.
• After completing the training program in early 2017, he joined the companies of De Raj Group as a member of management,

while still being Managing Director of Gaea Power GmbH.

Management Board

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Organisational Structure

De Raj Group AG (Germany)

Hummingbird Energy (L) Inc (Labuan) Condor Energy (L) Inc (Labuan) Gryphon Energy (SEA) Sdn Bhd (Malaysia) De Raj Energy Sdn Bhd (Malaysia) Gaea Power GmbH (Germany) Power Division - Germany 100% 100% 100% 100% 100% Energy Division – SEA

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Organisational Structure

De Raj Group AG (HRB 92007)

• Incorporated in Germany on 14th January 2015
• Holding Company of De Raj Group

Gaea Power GmbH (HRB 16934)

• Incorporated in Germany on 14th January 2016
• Holding Company of German Power Assets

Hummingbird Energy (L) Inc (LL07383)

• Incorporated in Labuan on 3rd December 2009
• Bareboat Chartering Company currently for Indonesia KE-38 Project

Condor Energy (L) Inc (LL08804)

• Incorporated in Labuan on 16th March 2012
• Reserve Asset Holding Company

Gryphon Energy (SEA) Sdn Bhd (1167327-X)

• Incorporated in Malaysia on 26th November 2015
• Time Chartering Company currently for Indonesia KE-38 Project
• Operations & Maintenance of assets owned by the Group

De Raj Energy Sdn Bhd (1156485-H)

• Incorporated in Malaysia on 21st September 2015
• Intellectual Property Owner

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Alexander de Raj Chairman of the Supervisory Board

• British Nationality
• BSc (Hons) in mathematics with Philosophy

Royal Holloway, University of London Renata de Raj Vice Chairwoman of the Supervisory Board

• British Nationality
• Higher National Diploma,

Languages and Business Studies Leeds Carlo Arachi Member of the Supervisory Board

• German Nationality
• Lawyer since 2001

Supervisory Board

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Shareholder’s Structure

Lexanda International Limited 10% Alexander de Raj 17.5% Nagendran Nadarajah 17.5% Nicholas de Raj 17.5% Renata de Raj 17.5% Free Float 15% Maya Terang Sdn Bhd 5%

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Contact

Eelasegeran T Nadarajah Joerg Peters Interim Group CEO Investor Relations eela@thederajgroup.com joerg.peters@thederajgroup.com +49 (0) 221 299 85 07 +49 (0) 6171 919 24 40

• Christophstr. 15-17

Frankfurter Landstr. 2-4 D-50670 Cologne D-61440 Oberursel Germany Germany www.thederajgroup.com www.thederajgroup.com