DE RAJ GROUP AGQ2 / 6M 2018 Interim Report

DE RAJ GROUP AG

Contents 3 Letter to the Shareholders

4 Listing at Vienna Stock Exchange

5 The Share

6 Income Statement / Comprehensive Income Statement

7 Cash Flow Statement

8 Balance Sheet

9 Statement of changes in equity

10 Interim Results of Operations Q2/ 6M/2018

10 Significant events occurring after the end of the period under review

11 Business outlook to Q3/2018 and for the FY 2018

12 Financial Calendar 2018

12 Contact

Group Key Figuresin EUR’000

Order backlog

408,42030 June 2018

Revenue

7,006HY 2018

Gross profit

4,377HY 2018

Equity Ratio

77%30 June 2018

Operating Cash Flow

6,303HY 2018

DE RAJ GROUP AG2

// KEY FIGURES // CONTENTS

I am pleased to present the Interim Management Report for the second Quarter of 2018 and the first Half-Year 2018 for De Raj Group AG.

In this quarter, we have focussed on project delivery and made some strategic rationalisation of the German business, where under-performing assets were divested and in place our German entity would time charter strategic equipment to the German market and abroad.

In addition we have pursued new orders with the pickup in the Oil & Gas market. The continued rise in oil prices to the USD 70 barrel mark and it remaining steady at and above this level has brought on prospects of new projects in this region and also in the Middle East. As I last reported in Q1, we had won a major Floating Production Unit (FPU) contract in Indonesia valued at USD 386 million providing 10-year revenues from international client, Husky-CNOOC. With our well placed strategic partner in Indonesia and our excellent track record with the ongoing contract (BOSS 1 MOPU) for National Oil Company, Pertamina, we are pursuing new orders for MOPU projects in the country for the rest of 2018 and first half of 2019.

The geopolitical situation in the Middle East, we believe, continues to provide unique opportunities for a niche player like us without any U.S. interests. In addition to Iran, which remains on the “WATCH” category, we are also pursuing opportunities in neighbouring Qatar, which has an active and growing energy sector, especially in Oil & Gas.

I am pleased to report that the implementation of the newly secured FPU contract has gone into full gear. The manning up of the Project Management Team of about 30 key personnel was completed and award made for major contracts for the hull and topsides of the FPU. The FPU is on track for completion by end of 2019. In addition, there has been continued focus on operational delivery on the current MOPU BOSS 1 contract, where the Uptime KPI was maintained above 99%. Further, the underwater inspection of the MOPU facility showed very positive results with no damage and/or cracks to the structure, which further enhances our excellent prospects of renewing the contract for a further few years upon its expiry in September 2019.

We are continuing to pursue aggressively green initiative projects in flare gas recovery and utilisation at the Middle Eastern region, which provide excellent returns and we are well placed to secure. Further, we see such projects as a real and positive contribution to the countries that are flaring huge amounts of gas, in line with our corporate values of adding value to clients and community development.

We are continuing to pursue various funding options for our projects, including raising capital via an IPO at the Frankfurt Stock Exchange in the near future.

We wish to thank our shareholders for the continued support of De Raj Group AG.

Dato’ Nagendran C. Nadarajah(Chairman of the Management Board)

DE RAJ GROUP AG 3

// LETTER TO THE SHAREHOLDERS

Listing at Vienna Stock Exchange

De Raj Group AG, Cologne, (ISIN: DE000A2GSWR1) has been listed and traded successfully on the EU-regulated market (Amtlicher Handel) of the Vienna Stock Exchange (Wiener Börse) since 8th February 2018.

De Raj Group AG is listed and is also traded since March 23rd, 2018 at the Open Market in Frankfurt / Main and at XETRA of Deutsche Börse AG in addition to the initial listing at the Vienna Stock Exchange.

Designated Sponsor in Frankfurt / Main is the ACON Actienbank AG.

The De Raj Group is strong in the Oil & Gas sector and Power Generation sector, where it owns and operates strategic equipment/facilities in both of these sectors which are provided on mid- to long-term lease to the market. In the Power sector, it is involved in both conventional power generation and CHP (Combined Heat and Power) generation. The Group owns a diversified portfolio of contracted renewable and conventional power generation assets in Europe and is embarking on an inter-national expansion plan in the Middle East and the Asia Pacific region.

The Oil & Gas division of the Group provides specialist services supported by IP patents for the full spectrum of the upstream Oil & Gas supply chain, par-ticularly in the South East Asian region. The Group owns a diversified portfolio of assets comprising jack-up rigs and topside equipment. These jack-up rigs, with the readily available equipment can be modified quickly to suit client requirements for offshore facilities in the development of marginal fields, including as well enhancement of production in producing fields. This supports very well Oil companies desire for early monetisation of hydrocarbon with cost effective solutions.

For further information:De Raj Group AGInvestor RelationsJörg PetersPhone: +49 6171 919 24 40mailto: joerg.peters@ thederajgroup.com

DE RAJ GROUP AG4

// LISTING AT VIENNA STOCK EXCHANGE

The Share

Research Coverage

The ACON Research und Services GmbH recommended the De Raj Group AG in their initial research report, published on 20 March 2018, a BUY with a target price of EUR 10.00. The valuation of EUR 630 million, after deducted current net debt, is based only on discounted earnings of current projects.

Analyst Robert Willis discovered exceptional growth potential for this unique investment: “A cyclical recovery in its core oil & gas exploration and production business is driving recent results. ... De Raj Group AG’s historic core business is oil & gas services for small or less developed and marginal fields. Innovation, speed and various patents differentiate the highly experienced Group. Earnings and cash flow has been weak during oil down cycles, but strong earnings and cash flow are now expected as global off shore rig demand recovers.”

“… a newly acquired contract to build, own and lease (BOT) a floating production unit (FPU) for ten years in Indonesian waters further adds to the Group’s diversifi-cation. ... “

Initial research report:BUY recommendationValuation of EUR 630 million

Being listed on the EU-regulated market of the Vienna Stock Exchange – A big step forward into the European market.

ISIN / WKN DE000A2GSWR1 / A2GSWRTrading Symbol DRJBloomberg / Reuters DRJ GR / DRJGStock Markets Vienna Stock Exchange / Wiener Börse

German Stock Exchange / Deutsche BörseMarket Segments Standard Market Auction, EU-regulated Market / Vienna

XETRA, Open Market / Frankfurt Initial Listing (IPO) 8th February 2018 / ViennaDual Listing 23rd March 2018 / FrankfurtIndex WBI Wiener Börse Index

(All Share Index Vienna Stock Exchange)Type and Class of Share Ordinary Bearer Shares with no par value, each representing

a notional value of EUR 1.00 in the share capital Share Capital EUR 35,000,000Authorized Capital 2017 EUR 17,500,000 until 10th Oct 2022Contingent Capital 2017/l EUR 14,000,000 until 10th Oct 2022Contingent Capital 2017/ll EUR 3,500,000Designated Sponsor ICF Bank AG Wertpapierhandelsbank

for ACON Actienbank AGResearch Coverage Robert Willis / ACON Research und Services GmbH

DE RAJ GROUP AG 5

// THE SHARE

Consolidated Income Statement and Statement of Comprehensive Income for the period from 1 Jan to 30 June 2018

Statement of Comprehensive Income

in EUR’000 Q2/ 2018 HY/ 2018

Revenue 3,634.4 7,006.0Cost of sales and services -1,051.5 -2,629.5Gross profit 2,582.9 4,376.5

Other operational income -15.7 16.1Other operational expenses -1,896.5 -3,215.3Operating profit (EBIT) 670.7 1,177.3Financial income 0.0 0.0Financial expenses -381.3 -685.9Profit before taxation (EBT) 289.4 491.4Income tax -7.5 -8.5Consolidated profit for the period 281.9 482.9

attributable to:Shareholders of De Raj Group AG 272.8 504.6Non-controlling interests 9.1 -21.7

in EUR’000 Q2/ 2018 HY/ 2018

Consolidated profit for the quarter 281.9 482.9

Items that might be reclassified subsequently to the income statementIncome and expense from currency translation recognized in equity 5,663.7 3,202.7Comprehensive income 5,945.6 3,685.6

attributable to:Shareholders of De Raj Group AG 5,936.5 3,707.3Non-controlling interests 9.1 -21.7

DE RAJ GROUP AG6

// INCOME STATEMENT Q2/6M/2018

Consolidated Cash Flow Statement for the period from 1 Jan to 30 June 2018

in EUR’000 HY/ 2018

Operating Activities Consolidated profit for the period 482.9 +/- Interest expenses / income 683.3

+ Income tax payment -246.7 +/- Depreciation / appreciation of fixed assets 2,516.3

+ Amortisation of intangible assets 1,048.5

+/- Decrease / increase in inventories – +/- Decrease / increase in trade receivables -6,186.3 +/- Increase / decrease in trade payables 4,246.4 +/- Other non cash changes (Foreign currency translation) 3,758.8Cash Flow from operations 6,303.2 Investing Activities - Development expenditure (FPU) -3,179.2 +/- Addition of PPE -0.9Cash Flow from investing activities -3,180.1 Financing Activities -/+ Changes due to change in scope of consolidation 0.0 - Repayment of term loan -2,103.8 -/+ Interest expenses / income -683.3Cash Flow from financing activities -2.787.1 Net increase / decrease in cash and cash equivalents 336.0 + Cash and cash equivalents at the beginning of the period 448.9Cash and cash equivalents at the end of the period 824.9

DE RAJ GROUP AG 7

// CASH FLOW STATEMENT Q2/6M/2018

Consolidated Balance Sheet in accordance to IFRS as of 30 June 2018

in EUR’000 2018/06/30 2017/12/31

Non-Current Assets Patents 19,890.3 20,174.0 Property, plant and equipment 112,170.8 117,790.5 Development expenditure (FPU) 3,179.2 –Non-Current Assets, total 135,240.3 137,964.5

Current Assets

Inventories 1,883.5 0.0 Trade receivables 14,074.0 3,500.0 Other receivables 767.5 716.4 Amount due from related parties 1,665.3 6,153.2 Cash and bank balances 824.9 488.9Current assets, total 19,215.2 10,858.5

154,455.4 148,823.0

Assets

in EUR’000 2018/06/30 2017/12/31

Shareholders’ Equity Share Capital 35,000.0 35,000.0 Capital reserve 93,988.9 93,938.1 Rertained earnings 2,379.5 1,874.9

Reserve from Reverse Acquisition -13,824.8 -13,824.8

Reserve from Currency Translation 1,236.4 -1,966.4

Non-controlling interests 4,393.4 4,415.1Equity, total 123,173.4 119,436.9

Non-Current liabilitiesLong-term loan 21,639.2 18,406.6Deferred taxation -79.8 –Non-Current liabilities, total 21,559.4 18,406.6

Curent liabilities Trade payables 7,367.0 678.1 Other payables and accruals 1,540.0 1,103.1 Provisions 252.8 – Amount due to related parties 502.1 3,861.9 Amount due to Directors 92.7 0.0 Short-term loan 0.0 5,336.4 Current tax liabilities -32.0 0.0Current liabilities, total 9,722.6 10,979.5Liabilities, total 31,282.0 29,386.1

154,455.4 148,823.0

Shareholders’ Equity and Liabilities

DE RAJ GROUP AG8

// BALANCE SHEET

De Raj Group AG Consolidated statement of changes in equity as of 30 June 2018

in EUR’000Share

capitalCapital reserve

Net Income

Reserve from Reverse

AcquisitionCurrency

reserveMinority interests Total

Balance at January 1, 2017 2,846.0 0.0 4,121.0 0.0 206.4 0.0 18,951.9Profit for the period 0.0 0.0 1,874.9 0.0 0.0 169.1 2,044.1Other comprehensive income 0.0 0.0 0,0 0.0 -2,172.8 0.0 -2,172.8Comprehensive income 0.0 0.0 1,874.9 0.0 -2,172.8 169.1 -128.7

Transactions with shareholders 0.0 4,327.9 0.0 0.0 0.0 0.0 4,327.9Other changes 0.0 0.0 -4,121.0 0.0 0.0 4,246.0 4,246.0Capital increase 32,154.0 89,610.2 0.0 -13,824.8 0.0 0.00 92,039.8Balance at December 31, 2017 35,000.0 93,938.1 1,874.9 -13,824.8 -1,966.4 4,415.1 119,436.9

Balance at January 1, 2018 35,000,0 93,938.1 1,874.9 13,824.8 -1,966.4 4,415.1 119,436.9Profit for the period – – 504.6 – – -21.8 482.9Other comprehensive income – – – – 3,202.8 – 3,202.8Comprehensive income – – 504.6 – 3,202.8 -21.8 3,685.6

Other Transactions with shareholders – 50.8 – – – – 50.8Capital increase – – – – – – –Transactions with shareholders – 50.8 – – – – 50.8Balance at June 30, 2018 35,000.0 93,988.9 2,379.5 -13,824.8 1,236.4 4,393.4 123,173.4

DE RAJ GROUP AG 9

// STATEMENT OF CHANGES IN EQUITY

Interim Results of Operations Q2/6M 2018

The order book for the Group in the second quarter resulted in a total order book value (order backlog) of USD 408 million for the two current contracts in the Oil & Gas Division – that is the new FPU contract and the ongoing BOSS 1 MOPU contract.

In this second quarter, there has been a strategic move to enhance the German presence and profitability of the German business for DRG Group by considering divestment of the thirteen Combined Heat and Power (CHP) plants in the country since their returns are below company expectations. In place of these CHP plants business, the Group is pursuing the business model of long-term leasing of power plant equipment with clean energy source via our German entities for better returns.

This Q2 period has also seen our Intellectual Property, in the Oil & Gas sector validated. We have successfully defended our patent rights for the provision of removably attached offshore wellhead platforms with an infringement legal suit against Petrofac E&C (part of Petrofac Limited Group, United Kingdom) at the courts in Malaysia. The High Court in July 2018 issued a court order that Petrofac was guilty of copying and infringing our patent for the supply of a MOPU with a removably attached Well Head Support Structure for the Sepat field early development of Petronas in 2010 at a contract value of USD 280 million. Our statement of claim has USD 40 million as damages for the infringement, which will be the subject of further deliberation at the courts in the coming months. This court ruling validates our IP values and proof of concept.

The operational performance of the current contract of four years, the BOSS 1 MOPU for client Pertamina of Indonesia, has continued to perform well without any breakdowns and loss of revenue in Q2. The MOPU has maintained the operational KPI of Uptime at above 99% and the recent underwater inspection of the MOPU showed that the facility is in very good shape with no damage or cracks to the main structure of the MOPU, which are the legs and mat sitting on the sea bed. The opportunity to extend the MOPU at location with the client at the end of the current contract in September 2019 is indeed very promising. The monthly

payments of the charter by the client has been also proper without any delay.

On the Business Development front, there has been great focus on the green flare gas removal and utilisation initiative, especially in Middle Eastern countries, where there are huge amounts of gas being flared. This is an initiative that is welcomed by all the countries where we are pursuing such projects such as Qatar and Iran since it cleans the environment and is good for the country and the world as a whole.

De Raj Group’s total personnel of 77 employees as of 30 June 2018 were split into 33 employees based in Indonesia for the BOSS 1 project and 44 employees based in Malaysia, 26 of which are engineers (24 are linked to the new FPU project and 2 are working on the BOSS 1 project), 10 represent Management functions (2 of which are engineers) and 8 are finance/adminis-tration and other functions.

Significant events occurring after the end of the period under review

For the period from 1st July 2018 to the time of this reporting (September 2018), which is a little more than two months, there has been no change to the current order book.

In this period, the strategic move to align the German business with the DRG Group Business Model of leas-ing strategic equipment on long-term basis was put in place. The 13 CHP power plants in Germany under Gaea Power GmbH has been successfully divested at a sale value of EUR 3.6 million (net) as announced on 27th August 2018. In place of this, Gaea Power GmbH will long-term lease on time charter basis power equip-ment of 7 MW and 17 MW to a German entity. This is expected to provide better returns and shall be reported on later once the agreements are executed.

This period has continued to be a very busy period for the Oil & Gas Division with full steam implementation of the FPU contract. The Project Management Team has been mostly manned up with about 30 key people and major procurement activities for the vessel hull and the topsides facilities has also been mostly completed. Major contracts for hull engineering and construction, topsides engineering and construction and free issue

DE RAJ GROUP AG10

// INTERIM RESULTS OF OPERATIONS Q2/6M/ 2018

of key long-lead equipment such as gensets, fire water pumps, custody metre, telecoms, mooring equipment has been awarded. The completion of the FPU project as at end of August 2018 is about 9 % with completion of the facility scheduled for late 2019.

Also, the results for the reported MOPU project in India for which we were a front runner in the tender were announced. We did not win the tender as the winning bidder was cheaper.

There has been also a lot of effort in fund raising for the implementation of the FPU contract and also potential contracts for flare gas recovery and power plants. The strategy to raise capital via IPO at the Frankfurt Stock Exchange has been explored aggressively with our consultant partners in Germany and this option is being considered for Q1 2019.

In this interim period, there has been some organisa-tional developments with the appointment of a new CEO, who brings a wide experience of more than 35 years, including senior postings with the National Oil Company of Malaysia, Petronas. In addition, a new CFO, Mr. Kannan Mohan was appointed to lead the Finance Division. The Group has been streamlined into business divisions with clear responsibility and account-ability. The current verticals are Oil & Gas Division and Power Generation & Green Initiatives Division, with the supporting Finance, Legal and Corporate Divisions. Business outlook to the current quarter Q3/2018 and expectations for the full year 2018

We see that with the better oil prices in the year, which has been holding steady in Q2, major oil and gas pro-ducing countries that we are focussed on like Indonesia, India, Iran and lately Qatar are moving ahead their pro-jects as quickly as possible to realise bigger revenues. This bodes well for our business with is energy centred.

This Q2 quarter, saw the U.S. sanctions taking effect on Iran in May 2018. One of the key business development strategy has been to closely monitor the geopolitical development of Iran. We view Iran has providing good strategic opportunities in power and green projects with limited players at the moment. The EU is putting in place statutes to protect European companies already doing business in Iran. In addition, if the renewed U.S. sanctions

will be lifted in the near future, we will have first-mover advantage and can see our efforts there bearing good results with power and flare gas projects. The U.S. sanctions on energy to come in force on 4th November 2018 will provide further insights to our strategy as the year comes to an end.

The Oil & Gas Division for the rest of the year will continue with the current FPU project implementation. In addition, the ongoing BOSS 1 MOPU contract operations will continue with focus on maintaining the outstanding Up-time KPI of 99% and above. The business development effort for this division will focus on new MOPU jobs in Indonesia, where we are strongly placed with our excel-lent track record, coupled with our local business partners who are very well placed in the country.

On the Power Generation & Green Initiatives Division, we see our German power business after the rationali-sation exercise in this period, further consolidate the offer of providing strategic power equipment on long-term lease to the German market and abroad, especially Middle East. Here, we see Qatar as a market with unique opportunities as well since the geopolitical situation in the region places Qatar and Iran in a somewhat similar situation with their neighbours. Qatar, however, is in a much better situation than Iran with the U.S., with no sanctions of any kind. In addition, Qatar and Iran have positive relations which can be opportune for us in the pursuit of projects from both countries for the rest of 2018.

We see the green initiative flare gas projects as totally in line with our corporate values and in the case of Iran and Qatar, they provide a unique opportunity given the current geopolitics. These projects have the potential to be big revenue earners and we will continue to focus on pursuing such projects and securing funding for them. With better oil prices, the push by countries for Oil & Gas projects and power projects will get stronger for the remaining part of 2018 and remain strong going into 2019. As for the LED lights green project in Malaysia reported in Q1, with the recent change in Government in Malaysia, the award process is being re-visited and we are keeping the project under “WATCH”.

DE RAJ GROUP AG 11

Contact

GERMANYChristophstrasse 15 – 17D-50670 CologneTel +49 221 299 85 07Fax +49 221 299 85 08www.thederajgroup.com

INVESTOR RELATIONSJoerg Peters Frankfurter Landstr. 2  – 4D-61440 OberurselTel +49 6171 919 24 40joerg.peters@thederajgroup.comwww.thederajgroup.com

September 24 Six-month interim report 2018

October 25 Financial Calendar 2019

November 26 Nine-month interim statement 2018

Financial Calendar 2018

DE RAJ GROUP AG