Dear Shareholders

Ni sa bula vinaka. It is my privilege to present the Chairman's Address for the 2026 financial year. This was a significant year for Fijian Holdings Limited (FHL), marked by growth in the Group's assets, stronger profitability and continued returns to shareholders.

For the first time in FHL's history, Group assets exceeded $1 billion, reaching $1.09 billion following major investments across the Group. Group profit before tax rose by 11%, from $60.3 million in FY2025 to $67.0 million. The consolidation of Port Denarau Marina Limited contributed to this result, although it was partly offset by an impairment associated with Fletcher Higgins (Fiji) Limited.

These achievements came amid challenging conditions. Higher oil prices arising from the conflict involving Iran increased fuel prices, freight and operating costs, while softer demand contributed to a downward revision of Fiji's GDP growth forecast to 1.4%. Against this backdrop, the Group's performance reflects the strength of its portfolio and the commitment of its people.

Delivering Returns, Managing Responsibility

During FY2026, FHL declared two interim dividends of $4.113 million each, returning a total of $8.225 million to shareholders. These distributions matter deeply to our Provincial Councils, Tikina and village groups, institutions, families and individual shareholders. Since their original investment, our founding shareholders have received more than five times their invested capital in returns.

Growth brings greater responsibility. Group borrowings increased by 19% to $470.7 million. While leverage remains relatively low at about 31%, the Board continues to monitor debt structure, liquidity, refinancing risk and the ability of each investment to meet its obligations. During the year, FHL also repaid $15.2 million of wholesale corporate bonds at maturity.

The measure of our progress is how effectively our assets generate cash, support sustainable dividends and create lasting shareholder value.

Realising Value Across the Portfolio

Our increased ownership in Port Denarau Marina Limited strengthens FHL's position in tourism and establishes a strategic presence within the Denarau precinct. FHL Tower achieved full occupancy and is now generating income. At Nawaibuta in Korovou, our Impact Investment strategy is taking practical form through resource-owners' participation.

We must also address investments that are not yet performing to expectations. Fletcher Higgins (Fiji) Limited has required significant intervention following the exit of its former strategic partner. Fiji Television and Life Cinema remain areas of close Board attention. We will support recovery where there is a credible path to improved performance and consider restructuring or redeploying capital where it better protects long-term shareholder value.

Strengthening Governance and Leadership

As FHL grows, our governance and capabilities must grow with it. During the year, we continued to strengthen Board and subsidiary oversight, risk management, capital discipline and succession planning. Technology resilience and cyber protection also remained priorities for the Board.

Our future depends on the people who will lead and serve the Group in the years ahead. The Graduate Associate programme, the appointment of subsidiary leaders and our wider succession efforts are investments in that future.

Looking Ahead

The milestone of $1 billion in Group assets is a source of pride, but it also calls for renewed discipline. Having invested, built and entered new areas, we must now realise the full value of those decisions through stronger earnings, cash generation, dividends and balance sheet resilience.

In FY2027, the Board's priorities are to improve the quality of earnings and dividends, manage debt and capital prudently, lift returns from existing investments, address weaker businesses and continue strengthening governance, technology and leadership.

On behalf of the Board, I thank our shareholders for their trust; our management and employees for their dedication; and our customers, financiers, regulators, partners and communities for their continued support. Above all, we thank God for His faithfulness and guidance. We move forward with gratitude and humility, determined to steward well what has been entrusted to us and to leave a stronger FHL for those who follow.

Vinaka vakalevu.

Dear Shareholders

Ni sa bula vinaka saka. FY2026 was a year in which major investments began to translate into tangible results. The FHL Tower achieved Practical Completion and full occupancy, Basic Industries returned to profitability, Port Denarau Marina came under Group control, South Sea Cruises expanded, and our first Impact Investment progressed at Nawaibuta in Korovou.

Group profit before tax increased by 11% to $67.0 million from $60.3 million. The result benefited from the consolidation of Port Denarau Marina Limited and was partly offset by the impairment associated with Fletcher Higgins (Fiji) Limited, despite higher oil prices, softer demand and rising business costs.

FHL Tower: From Completion to Income

It was pleasing to see the successful completion and full occupancy of this project, which has been the biggest risk to the Group in the last five years.

FHL Properties increased rental revenue from approximately $3.6 million to $7.5 million, while profit before tax rose from $1.2 million to approximately $3.3 million. The full-year impact of Tower occupancy will be realised in FY2027. Our focus has shifted to tenant service, asset quality and income generation. The BRED Bank signage recognises its role as a key financing partner and strata title owner of Levels 15 and 16 of the FHL Tower.

Tourism, Construction and Industrials

FHL acquired an additional 23.5% interest in Port Denarau Marina Limited, bringing the company under Group control. South Sea Cruises acquired Mai Sunset in the Yasawa Islands, its first land-based hotel, and completed its vessel re-fleeting programme. Its result was affected by the loss of Fiji Princess as well as higher fuel prices.

There was a slight recovery in construction and industrials, with Basic Industries recording profit of approximately $4.0 million, compared with a $1.6 million loss last year. Pacific Cement also delivered a strong result despite a major mill breakdown, and approval of the tax incentive package supporting its upgrade was another important achievement.

Fletcher Higgins: Take Control, Stabilise, and Grow

Fletcher Higgins was one of the year's more difficult areas. Fletcher Building's exit as strategic partner required FHL and FNPF to assume direct responsibility, while legacy project issues and cash-flow pressure added to the challenge.

Our response is deliberate: take control, stabilise, and grow. We have strengthened oversight, are bringing core functions onshore, improving financial visibility, tightening project controls, managing claims and collections, and focusing new work on properly assessed projects.

Merchant Finance and Funding

Merchant Finance grew its loan book by approximately 33%, particularly in land development and SME lending, including lending to women entrepreneurs, closely aligned with FHL's core purpose. About $252 million of Group debt comprises MFL deposits supporting a loan book of about $293 million, a loan-to-deposit ratio of approximately 116%, so we are focused on MFL's longer-term liquidity and capital structure.

Group borrowings increased by 19% to approximately $470.7 million, with leverage at about 31%. About $157 million sits within subsidiaries, and a further approximately $95 million is held at FHL Company level, including $37 million of borrowing for the Port Denarau Marina acquisition. FHL also repaid the $15.2 million wholesale corporate bond tranche in full at maturity.

Purpose, Technology and People

Construction commenced on FHL's first Impact Investment at Nawaibuta in Korovou, fully funded by its two shareholders and providing a practical model for resource-owner participation. We strengthened cyber protection and IT infrastructure, and FHL Fund Management replaced its legacy Unit Trust Registry System with a modern digital platform for more than 2,000 unitholders.

We completed the appointment of subsidiary Heads across the Group and rolled out formal succession planning for Tier 1 roles. Nine Graduate Associates are undertaking a one-year programme combining practical assignments, Group exposure and mentoring.

Looking Ahead to FY2027

Our priorities are to realise the full-year Tower contribution; continue the Fletcher Higgins turnaround; sustain BIL's recovery; deliver the PCL mill upgrade; strengthen MFL funding and progress its core system; advance Impact Investments; improve subsidiary cash and dividends; strengthen technology resilience; and develop our people.

Above all, we thank God for His guidance and provision. We remain grateful for our progress, humble about the challenges ahead, and confident that disciplined execution, wise stewardship and faith can create lasting value for shareholders and future generations. Vinaka vakalevu.