MANAGEMENT DISCUSSION AND ANALYSIS (MD&A) PERFORMANCE MOBILITY Financial Performance Mobility remained the Group's largest and most consistent contributor in FY2026. Segment revenue rose 9.83% to RM211.30 million (FY2025: RM192.39 million), representing 68.48% of Group revenue. PAT increased by 38.74% to RM32.51 million (FY2025: RM23.43 million). Operational Performance Railtec continued to execute its Ministry of Transport (MOT) contracts, including the RM531.39 million Level 4 maintenance, repair and overhaul (MRO) contract for 35 Class 92 electric train sets and the RM71.00 million Level 3 MRO contract for Class 93/2 electric trains. 16 train units were delivered during the year (FY2025: 12 units), in line with contracted delivery schedules. The segment also continued to build out its rail MRO capabilities, now spanning Levels 1 to 4, complemented by the component-level expertise of Trovon Group. This full-spectrum capability strengthens Destini's ability to support rail operators across the full maintenance lifecycle. Key Drivers Performance was underpinned by the continuous delivery of train units and maintenance execution under the MOT contracts, alongside new rail MRO contract wins. The expanded technical offering strengthens the Group’s ability to pursue a broader range of rail maintenance opportunities. Demand fundamentals remain supportive, as the Government continues to prioritise rail as the backbone of public transport under the Thirteenth Malaysia Plan. Strengthening Our Core Growth Engine Major Developments • Railtec secured a RM71.00 million MRO contract from the MOT during the year. The Group has also secured a further MOT contract valued at RM136.00 million. • On 20 April 2026, Trovon Malaysia Sdn. Bhd. was awarded a RM4.40 million contract by CRRC Rolling Stock Centre (Malaysia) Sdn. Bhd. for Level 3 MRO of traction motors and power-pack generators on 13 Diesel Multiple Unit (DMU) train sets over 34 months. • On 8 June 2026, Destini Mobility Sdn. Bhd. entered into a non-binding Memorandum of Understanding (MOU) with Zhejiang CRRC Electric Vehicle Co., Ltd. to pursue electric bus opportunities in Malaysia's public transport sector. • Subsequent to the financial year end, Railtec accepted a RM45.58 million contract from Railway Assets Corporation for Level 1 and Level 2 MRO on 13 Class 61 DMU train sets over 24 months. The award completes Railtec's capabilities across all four MRO levels, enabling Destini to support an operator's fleet throughout its lifecycle. • In September 2026, Railtec entered into an MOU with Siemens Mobility Sdn. Bhd. on Reliability Control Centre (RCC) for data driven MRO. • Mobility accounted for approximately 78.32% of the Group's order book as at 30 June 2026. Outlook Mobility will remain the Group's core growth platform and Management intends to scale this segment in Malaysia and across Southeast Asia. With capabilities now spanning all four MRO levels, Mobility enters FY2027 well placed to deepen its domestic presence and extend its reach regionally. Management intends to leverage the IRIS certification to pursue rolling stock MRO opportunities across Southeast Asia, broaden its client base to include private and commercial rail operators, and operationalise data-driven maintenance in collaboration with Siemens Mobility. Execution of the MOT contracts and the RAC award will continue to anchor the segment's earnings, supported by the Government's objective of raising rail utilisation to 80% by 2030. Over the longer term, the nonbinding MOU with Zhejiang CRRC Electric Vehicle Co., Ltd. offers a potential avenue into the growing electric bus segment. As Mobility continues to scale, Management will continue to maintain disciplined capital allocation and closely monitor procurement timelines and payment cycles. Segmental Analysis DESTINI BERHAD 34 ANNUAL REPORT 2026
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