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Financial Performance, Governance & Strategic Outlook

Letter to Shareholders

Dear Valued Shareholders,

We are pleased to report that 2025 has been a transformative year for Forbenext Group. Despite challenging market conditions globally, our diversified portfolio of six industry-leading companies has demonstrated remarkable resilience and growth.

Key Achievements

  • Consolidated revenue reached $5.8 billion, representing 32% year-over-year growth
  • Operating profit of $1.2 billion, maintaining a healthy 20.7% operating margin
  • Total assets grew to $12.5 billion, up 28% from the previous year
  • Strengthened our commitment to sustainability with 50% reduction in CO₂ emissions
  • Invested $2 billion in emerging technologies and green initiatives

Future Vision

Looking ahead to 2026 and beyond, we remain committed to sustainable growth, innovation, and creating long-term value for our stakeholders. Our strategic investments in AI, quantum computing, renewable energy, and digital transformation position us well for the evolving global economy.

Regards,
Founder & CEO, Forbenext Group

Management's Discussion & Analysis

Business Overview

Forbenext Group operates across six major industries through specialized subsidiaries, each commanding market leadership positions. Our diversified portfolio provides resilience and growth opportunities across multiple economic cycles.

Key portfolio companies include InnovateLabs (Technology), FinPro Capital (Financial Services), Digital Ventures (Digital Transformation), Global Trade Solutions (Trade & Logistics), TechNova Solutions (Cloud Infrastructure), and Precision Manufacturing (Advanced Manufacturing).

Financial Performance Analysis

Revenue Growth: Total consolidated revenue for fiscal year 2025 reached $5.8 billion, representing 32% growth compared to the prior year, driven primarily by strong performance in technology services and capital management divisions.

Profitability: Operating income improved to $1.2 billion with an operating margin of 20.7%, reflecting operational excellence and cost management initiatives implemented across all business units.

Asset Base: Total assets reached $12.5 billion with strategic capital allocation focused on high-growth opportunities in emerging markets and advanced technology sectors.

Risk Management

Our comprehensive risk management framework addresses market, operational, financial, and strategic risks through diversified revenue streams, robust governance structures, and continuous monitoring systems aligned with international best practices.

2026 Outlook

We project revenue growth of 18-22% for fiscal year 2026, with expected consolidated revenue reaching $6.8-7.2 billion. Continued investments in digital transformation and sustainability initiatives are expected to enhance operational efficiency and long-term value creation.

Financial Statements

Balance Sheet (As of December 31, 2025)

ASSETS 2025
Current Assets $3.2 Billion
Property, Plant & Equipment $4.8 Billion
Intangible Assets & Goodwill $2.7 Billion
Other Assets $1.8 Billion
Total Assets $12.5 Billion
LIABILITIES & EQUITY 2025
Current Liabilities $2.1 Billion
Long-term Debt $1.9 Billion
Total Liabilities $4.0 Billion
Shareholders' Equity $8.5 Billion
Total Liabilities & Equity $12.5 Billion

Income Statement (Year Ended December 31, 2025)

INCOME STATEMENT 2025
Total Revenue $5.8 Billion
Cost of Revenue $3.1 Billion
Gross Profit $2.7 Billion
Operating Expenses $1.5 Billion
Operating Income $1.2 Billion
Interest & Other Income $120 Million
Income Tax Expense $232 Million
Net Income $880 Million

Cash Flow Statement (Year Ended December 31, 2025)

CASH FLOW 2025
Operating Cash Flow $1.05 Billion
Capital Expenditures ($450 Million)
Free Cash Flow $600 Million
Financing Activities ($280 Million)
Net Change in Cash $320 Million

Corporate Governance

Board Composition

  • Total Board Members: 10
  • Independent Directors: 10 (100%)
  • Female Directors: 4 (40%)
  • Average Tenure: 8 years

Committees

  • Audit & Risk Committee
  • Compensation Committee
  • Nominating Committee
  • Sustainability Committee

Executive Compensation

Compensation aligned with performance metrics and shareholder value creation. Base salary, performance-based bonuses, and long-term equity incentives comprising total executive compensation package.

Compliance & Ethics

Robust compliance framework with formal code of conduct, ethics policy, and whistleblower protections ensuring adherence to regulatory requirements and ethical standards.

Future Outlook & Strategy (2026-2030)

Strategic Priorities

  • Digital Transformation: Accelerate digital capabilities across all business units with investments in cloud infrastructure and AI technologies
  • Sustainability Leadership: Carbon neutrality target by 2030 through renewable energy transition and circular economy initiatives
  • Market Expansion: Strategic expansion in emerging markets across Southeast Asia, Africa, and South America
  • Innovation & R&D: Increase R&D investment to 5% of revenue, focusing on quantum computing, advanced materials, and biotech

Financial Guidance

2026 Projection

$6.8 - $7.2B

Revenue | 18-22% Growth

2028 Target

$9.5B+

Revenue | Sustained Growth Trajectory

Auditor's Report

To the Shareholders of Forbenext Group,

We have audited the consolidated financial statements of Forbenext Group as of and for the year ended December 31, 2025, in accordance with International Standards on Auditing (ISA). Our audit procedures included assessing the risk of material misstatement and evaluating the effectiveness of internal controls over financial reporting.

Opinion: In our opinion, the consolidated financial statements present fairly the financial position of Forbenext Group as of December 31, 2025, and the results of its operations for the year then ended, in accordance with International Financial Reporting Standards (IFRS).

Key Audit Matters: Our audit focused on revenue recognition across multiple business segments, valuation of acquisition-related goodwill and intangible assets, and the completeness of provisions for litigation and regulatory matters. All key audit matters have been resolved satisfactorily.

Notes to Financial Statements

1. Summary of Significant Accounting Policies

Financial statements prepared in accordance with IFRS. Consolidated statements include parent company and all subsidiaries. Revenue recognized upon performance of services or delivery of goods. Assets and liabilities translated at year-end exchange rates.

2. Business Segments

Company operates in six reportable segments: Technology Services (35% of revenue), Financial Services (28%), Digital Solutions (18%), Trade & Logistics (10%), Cloud Infrastructure (6%), and Manufacturing (3%).

3. Goodwill & Intangible Assets

Goodwill recorded from acquisitions tested for impairment annually. Intangible assets including customer relationships, technologies, and brand names amortized over estimated useful lives of 5-15 years.

4. Contingencies & Legal Matters

Company involved in various legal proceedings deemed not material to financial condition. Management believes ultimate resolution will not result in material adverse effect. Reserves established for probable obligations.