The Board of Directors of Fraser & Neave Holdings Bhd announced that its wholly-owned subsidiary, F&N Foods (Cambodia) Co. Ltd., had on 15 February 2024 entered into a lease agreement with Suvannaphum Investment Co. Ltd. for the lease of a parcel of land as described in Section 2.3 of this announcement at a total lease consideration of USD 3,864,000 and for a term of 50 years.

Location of the Land is Suvannaphum Special Economic Zone at Samrong Kaer Village, Samrong Thom Commune, Kien Svay District, Kandal Province, Cambodia Land area 32,200 metre square. The lease term shall be for 50 years commencing on 1 February 2024 and ending on 31 January 2074 . The Lease Agreement shall be renewed by mutual written agreement of the parties.

The total lease price of the Land for the Lease Term shall be USD 3,864,000, which equals to USD 120 per square meter, excluding all taxes and special assessments levied against the Land such as withholding tax over the Lease Agreement, tax on the Land and construction thereon. The Lessee shall be liable for the Value Added Tax over the Land in accordance with the applicable laws and regulations of Cambodia. The Lessee shall pay this VAT to the Lessor together with the Lease Price in order for the Lessor to pay this tax to the Cambodian taxation authority.

The Lease Price shall be paid by the Lessee within 2 weeks of completion of the incorporation and tax registration of the Lessee and receipt of a valid tax invoice. The Lessee shall be responsible for payment of any and all government fees, charges and taxes, arising from the Lessee's use of the Land and related activities, including the fees, charges and taxes relating to registration of this Agreement with the competent authorities in Cambodia. The Lease Agreement was entered into for the purpose of setting up a manufacturing facility for dairy products to strengthen presence in Cambodia.

The manufacturing facility will produce sweetened beverage creamer in can and pouch. The total cost for the setting up of the manufacturing facility is estimated at USD 37.5 million (approximately RMB 179.5 million) which includes the cost of leasing the land, construction of building and purchase of machinery. The manufacturing facility is expected to commence operations in the 1st quarter of 2026.