March 27, 2026 12:15 AM GMT Investor Presentation | Asia Pacific M Foundation How Geopolitics and the Five-Year Plan Are Reshaping China Morgan Stanley Asia Limited+ Robin Xing Chief China Economist Robin.Xing@morganstanley.com +852 2848-6511 For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report. Downloaded by Neil.Wang@troweprice.com Not for redistribution without written consent of Morgan Stanley Foundation M Framing the Scenarios Geo ...

Core Insights - RWE's Thor offshore wind farm has commenced electricity supply to the Danish grid, marking a significant milestone in the project [1] - The facility is a joint venture between RWE (51%) and Norges Bank Investment Management (49%) [1] - The wind farm is expected to be fully operational by 2027, with the capacity to power over one million Danish households with green electricity [2] Project Details - The Thor facility has a total capacity of 1.1GW and will feature 36 steel turbine towers manufactured by Siemens Gamesa, which will include recyclable rotor blades [2][3][4] - Key progress includes the installation of an offshore substation, completion of all foundations for 72 turbines, and a finished onshore substation [4] - The Danish Energy Agency has granted a 30-year electricity production license, facilitating further commissioning works [4] Economic Impact - The operations of the Thor wind farm are projected to create 50–60 local jobs at a new RWE service building in Thorsminde Port, set to open in March [5] - RWE offshore wind CEO highlighted the successful collaboration and performance of project teams in reaching this milestone [6]

Core Viewpoint - Solar has successfully amended its articles of association, which was approved by shareholders at the annual general meeting on March 13, 2026 [1]. Group 1: Company Overview - Solar is a leading European sourcing and services company focused on electrical, heating and plumbing, ventilation and climate, and energy solutions [1]. - The company generated revenue of approximately DKK 12.2 billion in 2025 and employs around 3,000 people [2]. - Solar is listed on Nasdaq Copenhagen under the short designation SOLAR B [2]. Group 2: Business Operations - The core business of Solar revolves around product sourcing, value-adding services, and optimization of customers' businesses [1]. - The company facilitates efficiency improvements and provides digital tools to enhance customer success [2]. - Solar is committed to driving the green transition and offers best-in-class solutions for sustainable resource use [2].

Core Points - The Annual General Meeting (AGM) approved the Annual Report 2025 and discussed the management's review along with the independent auditors' report [1] - Michael Troensegaard Andersen was re-elected as chair of the Board of Directors, and Jesper Dalsgaard as vice chair [1] - The AGM approved the Remuneration Report for 2025 and discussed the remuneration structure for the Board of Directors for 2026 [3] Board Appointments - The Audit Committee re-elected members include Peter Bang, Louise Knauer Baroudy, and Michael Troensegaard Andersen [2] - The Remuneration Committee re-elected members include Michael Troensegaard Andersen, Morten Chrone, and Louise Knauer Baroudy [2] - The Nomination Committee re-elected members include Jesper Dalsgaard, Michael Troensegaard Andersen, Katrine Borum, and Morten Chrone [2] Financial Overview - Solar Group generated revenue of approximately DKK 12.2 billion in 2025 and has around 3,000 employees [5] - The company has authorized the Board of Directors to potentially distribute an extraordinary dividend of up to DKK 50.00 per share before the next AGM [3] - The Board of Directors has also been authorized to acquire up to 10% of the share capital in treasury shares [3] Corporate Governance - Deloitte was re-elected as the auditor and sustainability auditor for the company [3] - The Board of Directors has been authorized to increase the share capital by up to a nominal amount of DKK 71,060,000 [3] - The authorization for capital increase is valid until March 15, 2028 [3] Company Profile - Solar is a leading European sourcing and services company focused on electrical, heating, plumbing, and climate & energy solutions [4] - The company promotes efficiency improvements and offers digital tools to enhance customer business performance [4]

Core Insights - The Trump administration's recent action to end the 2009 "endangerment finding" is one of the largest deregulatory actions in U.S. history, rescinding all emissions standards for cars and trucks, which has significant implications for the electric vehicle (EV) market and the gas-powered automotive industry [1] Group 1: Policy Changes and Impacts - The termination of the "endangerment finding" is part of a series of anti-EV and anti-climate policies implemented by the Trump administration, including the rollback of a $7,500 federal tax credit for electric vehicles [2] - The policy shifts have led to substantial distress in the domestic and international EV sector, with global EV producers reporting $65 billion in write-offs since the end of the U.S. EV tax credit [3] Group 2: Company-Specific Consequences - Ford disclosed a $19.5 billion writedown and canceled its electric F-150 pick-up truck, while Stellantis faced a $26 billion hit after scrapping several fully electric models and reviving its gas-powered engine for the U.S. market [4] - Current projections indicate that U.S. EV demand will only account for 5% of the new vehicle market in the coming years, significantly lower than previous expectations [4] Group 3: Market Dynamics and Challenges - The Trump administration claims that the policy changes will benefit traditional automakers, estimating an average cost savings of over $2,400 per vehicle for them [5] - The contraction of the EV market is attributed to overestimating EV demand, the failure to produce affordable models, and inadequate charging infrastructure, highlighting that automakers did not align their strategies with realistic consumer needs [5]

Core Insights - Hydro's geographic diversification and integrated value chain enhance its resilience amid geopolitical instability in 2025 [1] - The company aims to achieve its strategic goals for 2030 by increasing agility and accelerating growth [1] Financial Performance - Adjusted EBITDA for 2025 was NOK 28.9 billion, an increase from NOK 26.3 billion in 2024 [2] - Adjusted Return on Capital Employed (RoaCE) was 10.2 percent, slightly above the target of 10 percent [2] - Hydro has distributed NOK 37.6 billion to shareholders since 2021, with a proposed payout of NOK 5.9 billion for 2025, representing 60 percent of adjusted net income [4] Strategic Initiatives - In 2025, Hydro implemented capital discipline measures, including workforce reduction and restructuring in Hydro Extrusions [3] - An improvement program initiated in late 2024 resulted in NOK 1.4 billion in improvements, and capital expenditure guidance was reduced [3] - Hydro signed multiple long-term power contracts to secure energy for future demand, supporting its ambition for green aluminium powered by renewable energy [5] Market Positioning - Hydro's low-carbon aluminium is positioned as a critical material in the green transition, valued in a challenging geopolitical landscape [1][6] - The company is focused on decarbonization and technology roadmaps to reduce emissions across its value chain [5]

Company Overview - Solar A/S is a leading European sourcing and services company focused on electrical, heating and plumbing, ventilation, climate, and energy solutions [2][3] - The company generated revenue of approximately DKK 12.2 billion in 2025 and employs around 3,000 people [3] - Solar is listed on Nasdaq Copenhagen under the designation SOLAR B [3] Shareholder Information - Tind Asset Management AS has acquired shares in Solar, increasing its holding to a total of 403,263 shares, which represents an ownership stake of 5.04% [1]

Group 1 - The relocation of the Kiruna Church is part of a long-term project by LKAB to move the entire town of Kiruna to facilitate iron ore mining expansion and access newly discovered rare earth deposits [2][3] - LKAB has been mining iron ore in Kiruna since the early 20th century, with the Kiirunavaara mine being the largest underground iron ore mine globally [5] - In 2023, LKAB identified significant deposits of rare earth elements in the Kiruna area, exceeding 1 million tons of rare earth oxides, marking it as the largest known deposit in Europe [6][7] Group 2 - Approximately 90% of Kiruna's residents have opted for new housing as part of the relocation process, which is expected to take over a decade to complete [3] - The mining industry is crucial for Kiruna's economy, with local leaders acknowledging the necessity of relocating due to dependence on mining [4] - The newly discovered rare earth deposits are seen as essential for the green transition, addressing supply challenges for critical raw materials needed for electric vehicles [7]

Core Viewpoint - The European Automobile Manufacturers' Association (ACEA) views the European Commission's automotive package as a foundational step towards a flexible approach that supports decarbonisation and resilience goals in the automotive sector [1] Group 1: Emission Reduction Targets - The proposal mandates carmakers to achieve a 90% reduction in tailpipe emissions by 2035, with the remaining 10% offset through low-carbon steel produced in the EU or by utilizing e-fuels and biofuels [1] Group 2: Transition Support Measures - ACEA emphasizes the need for decisive measures to facilitate the sector's transition in the coming years, highlighting that without urgent actions regarding 2030 flexibilities for cars and vans, the effectiveness of the 2035 measures may be limited [2] - The Automotive Omnibus aims to streamline administrative processes and reduce costs for manufacturers operating in Europe, which is seen as a positive step [3] Group 3: Light Commercial Vehicles (LCVs) - ACEA supports targeted measures for light commercial vehicles, including compliance averaging and a 2030 target reduction, indicating a recognition of the need for flexibility and technology neutrality for a successful green transition [4] - ACEA's director general noted that while the proposals represent a significant change from current laws, careful examination and collaboration with co-legislators are necessary to strengthen the proposals [4] Group 4: Supply Chain Concerns - ACEA raised concerns regarding potential disruptions in vehicle production due to a shortage of essential microchips, linked to a halt in exports of Nexperia chips from China amid political disputes [5]

Core Insights - Nordea Funds Ltd. has reduced its holding in Solar A/S, now owning 79,787,200 shares, which represents a 9.96% ownership stake following a sale on December 15, 2025 [1] Company Overview - Solar A/S is a leading European sourcing and services company focused on electrical, heating and plumbing, ventilation, climate, and energy solutions [2][3] - The company generated approximately DKK 12.2 billion in revenue in 2024 and employs around 2,900 people [3] - Solar A/S is listed on Nasdaq Copenhagen under the designation SOLAR B [3] Business Focus - The company emphasizes efficiency improvement and provides digital tools to enhance customer success [3] - Solar A/S is committed to driving the green transition and offers best-in-class solutions for sustainable resource use [3]