Cube Highways Trust

From the CEO's Desk

Vinay C Sekar

Chief Executive Officer

Dear Unitholders,

It gives me great pleasure to present Cube Highways Trust's second Annual Report for FY2024–25. This has been a year marked by momentum, during which we have not only delivered strong financial and operational performance but also laid the foundation for long-term value creation through strategic investments, disciplined execution, and stakeholder engagement.

Our core purpose remains unchanged - to enable safer, smarter, and more sustainable travel on India's most vital corridors. With every milestone we achieve, we move closer to building a platform that not only performs today but is well positioned to serve India's mobility needs for decades to come.

Cube Highways Trust today manages one of the most diversified portfolios of toll and annuity roads in India. As of March 31, 2025, our portfolio comprises

25 operational highway assets, spanning over 8,450 lane kilometres across 12 Indian states. This scale gives us resilience and reach. Our roads facilitate the daily movement of millions, supporting passenger journeys, regional trade, and freight movement across industrial and agricultural belts. The design of our portfolio, with a healthy mix of asset types and geographies, allows us to benefit from both recovery and long-term demographic and economic trends.

In FY2024–25, Cube InvIT's toll revenue grew by 8% and portfolio traffic (in PCU terms) rose by 6.2%. This performance reflects our robust asset selection process and hands-on asset management, which together contribute to consistent and growing cash flows.

Through prudent refinancing, we further strengthened our balance sheet and reduced the average cost of debt. Our ability to raise debt capital at competitive rates, reflects market confidence in our credit quality and governance.

We continue to optimize cash flows at Cube InvIT level, ensuring maximum distribution to unitholders while maintaining a conservative leverage profile and adequate reserves for growth.

This year, we executed our long-term strategy of disciplined portfolio expansion. We executed and integrated multiple acquisitions that materially enhanced our portfolio quality, scale, and regional presence. In December 2024, we completed the acquisition of the remaining 49% equity in six hybrid annuity model (HAM) SPVs, bringing Cube InvIT's total stake to 100%. These six HAM assets offer long residual concession lives of 11.4 years with predictable annuity inflows. In February 2025, Cube

Highways Trust (InvIT) successfully completed the acquisition of 100% equity shareholding in a strategic toll road asset (developed under the BOT model), M/s N.A.M. Expressway Limited (NAMEL), spanning 212.9 km across Andhra Pradesh and Telangana and features three toll plazas. This transaction enhanced our portfolio mix and increased our Assets Under Management (AUM) to INR 322.7 billion.

In February 2025, we also signed definitive Share Purchase Agreements (SPA) with NIIF for the proposed acquisition of two annuity-based road projects inJammu & Kashmir—Quazigund Expressway Pvt. Ltd. and Athaang Jammu Udhampur Highway Pvt. Ltd., spanning a combined 80 km. The estimated Enterprise

Value will be INR 41.85 billion, subject to all other closing adjustments as specified in the Share Purchase Agreement (SPA). These assets were fully acquired by Cube InvIT on June 12, 2025. These operational, availability-based concessions enhance our presence in northern India and align well with our strategy of acquiring mature, cash-generating assets through a disciplined capital allocation strategy and prudent use of our balance sheet.

In a landmark transaction, Cube InvIT issued India's first Sustainability-Linked Bond (SLB) in the roads sector, raising INR 8,600 million (~$98 million) from the International Finance Corporation (IFC) to fund the acquisition of NAMEL.

This was not just a financial milestone; it was a directional one. The SLB links our financing to ESG targets, with performance-based commitments that reinforce our accountability. This transaction lays the foundation for a broader pipeline of sustainability-linked finance instruments that align long-term infrastructure needs with measurable impact.

At Cube, we are committed to leveraging the power of technology to transform how roads are managed, monitored, and maintained. Cube InvIT's project manager, CHTAAPL, is proud to have received the Best Technology Award in road building at the prestigious RAHSTA Awards 2024. Our approach is firmly rooted in data driven decision-making and technological innovation. By integrating advanced tools and ensuring a unified platform for all business decisions, we are enhancing the scalability and efficiency of our operations. Real-time insights into traffic, asset conditions, and performance enable us to optimise the management of our diverse portfolio, ensuring both operational excellence and long-term sustainability.

We formally established our research and development platform, MINDS, which now serves as the technology backbone and innovation centre for

Cube InvIT. MINDS provides a structured platform to identify, nurture, and scale transformative ideas that improve the way infrastructure is planned, built, and maintained. From pavement engineering to sustainability, from digital asset monitoring to traffic analytics, MINDS fuels both operational excellence and cross-functional innovation. With dedicated funding, expert mentoring, and access to R&D facilities, MINDS is enabling employees and partners to pilot solutions that solve real-world infrastructure challenges future-proofing India's highway ecosystem.

We are building a digital ecosystem that not only supports internal efficiency but enhances the experience of all stakeholders including investors, users, regulators, and partners.

Road safety is a cornerstone of our operational philosophy. This year, we adopted a comprehensive, data-driven safety framework that enables proactive monitoring of incidents, identification of risk-prone zones, and tracking of key safety KPIs across the portfolio.

We are especially proud that our Cabinet based RPVConcept has received positive response by NHAI HQ Officials, reinforcing its role as a critical tool in enhancing highway safety and operational efficiency.

These upgraded vehicles now include AI-enabled dashboard cameras that identify potholes, cracks, and obstructions in real time, and closed cabinet layouts to allow faster emergency response through well-organized tools and inventory. This reflects our on-ground experience and commitment to safety innovation.

On the environmental front, we continue to make strides toward decarbonization, with formalized ESG goals and a dedicated roadmap. Our ESG framework now encompasses every part of the business, reflecting our commitment to creating lasting value in a responsible and future-focused manner.

Since listing, Cube InvIT's investor base has grown ~3.5x, with rising participation from a wide base of investors including Mutual Funds, Pension Funds, Insurers, and notably more High-net-worth Individuals (HNI).

We remain committed to investor transparency. Over the past year, we have enhanced our investor communications with consistent emailers, quarterly investor presentations, and website upgrades, including an industry-first Distribution Search

Tool, making it easier than ever for unitholders to track their distribution details.

We also hosted our first Annual Meeting in Mumbai, which served as a platform for active engagement with unitholders and potential investors. A strategy offsite followed this in Agra, where the leadership team and Board discussed Cube InvIT's path forward focusing on efficiency, growth, and disciplined capital

Our people are the bedrock of our success, and we continue to foster a culture that values purpose, collaboration, and belonging. We continue to build a workplace where talent thrives, diversity is celebrated, and well-being is a top priority. This year, we made significant strides in improving our gender diversity, while deepening employee engagement through initiatives like Kutumb and festive celebrations including Diwali and International Women's Day.

A standout initiative this year was Kutumb, Cube's annual celebration of togetherness. Held across multiple project sites, Kutumb is designed to foster deeper connections with SPV employees and their families through a day filled with fun activities, games, food, and shared laughter.

Our values of integrity, collaboration, and accountability are reflected in every team, on every site and every day. We also extended our outreach to communities along our corridors supporting local education, health, and sanitation initiatives in areas where we operate.

India's infrastructure landscape is evolving rapidly and Cube Highways Trust is poised to lead this transformation. With a high-quality portfolio, sponsor support, and a forward-looking team, we are uniquely positioned to unlock the next phase of growth.

We expect demand for efficient transport corridors to accelerate, driven by rising urbanization, increased freight movement, and government policy thrust. Cube InvIT will continue to be a platform of choice, driven by technology, backed by governance, and rooted in sustainable value creation.

As we look ahead to FY2025 26, our priorities are clear. We will continue to pursue strategic acquisitions that align with our return and risk objectives, further strengthening the quality and resilience of our portfolio. Operational efficiencies will be driven through targeted digital interventions, enabling more innovative asset management and seamless execution. Our commitment to ESG will deepen, with a focus on achieving measurable outcomes that reflect our responsibility to the environmental, social and governance standards. At the same time, we will enhance investor engagement through transparent communication, timely disclosures, and innovative tools that foster trust and clarity. Underpinning all of this will be our unwavering commitment to a culture of safety, integrity, and inclusion ensuring that as we grow, we do so responsibly and together.

I want to thank our Board, Sponsors, investors, lenders, regulators, and partners for their continued support and trust. To our employees, thank you for your passion and perseverance. Your efforts are the foundation of everything we do.