Chairman's Statement

(Extracted from Annual Report 2022)

Dear Shareholders,

PUSHING TRANSFORMATIONAL BOUNDARIES

Over the past several years, Mencast has steadfastly focused on reshaping our business in terms of business units, operations, capital structure and sustainability.

As we look beyond the highly challenging environment of the past few years, I am pleased to share some of the considerable strides that Mencast has made in our multi-year journey of "Pushing Transformational Boundaries."

ALIGNING TO GROWTH

Our transformation plan is ambitious. While much remains to be done, I am also greatly encouraged by the progress to date.

Capital has been deployed from low margin businesses like steelwork to growth areas such as waste treatment where capacity has been aggressively expanded and licenses to expand into new areas secured. We also aligned our business strategies with emerging opportunities by leveraging our skills in design, process and fabrication into new areas such as sustainable building materials and proprietary 3D printing technology for sterngear equipment.

INNOVATING FOR A BRIGHTER FUTURE

Our commitment to innovate and grow has never been stronger. Singapore’s government is implementing fiscal policies that support growth in infrastructure, green energy, decarbonisation and sustainable resources projects and our strategy is to advance new technologies in support of these goals.

As well as the work of our own Mencast Innovation Centre, we leverage on the expertise and resources of partners to remain at the forefront of our industry and strengthen our long term market position. We have sought strategic collaborations such as our multi-year partnership with a consortium of leading institutes to design next generation’s sterngear and propeller products with higher efficiency and self-diagnostic capabilities.

These initiatives will not bring immediate gains and macroeconomic factors such as elevated interest rates and cost inflation in materials and energy costs will be headwinds for the foreseeable future. Nonetheless, we are confident that aligning our actions with long term strategic imperatives will allow us to accelerate profit and cash flow generation, creating long term value for shareholders.

APPRECIATION AND THANKS

As we look ahead to 2023, we are optimistic about the future. Though uncertainties still persist in the global economy, our strategic focus and agile business model provide us with the resilience and adaptability needed to emerge from challenges hardened and strengthened.

Our progress in "Pushing Transformational Boundaries" is a testament to the perseverance, adaptability, and resourcefulness of our team. I extend my sincere gratitude for their unwavering commitment and spirit, which have been invaluable in helping us navigate challenges and seize opportunities.

I also extend my deepest appreciation to all our shareholders and our banks for your unwavering support and trust in Mencast. Your belief in our vision and strategic direction is instrumental to our transformation and a brighter future. Together, we will continue to push boundaries, innovate, and create value for our shareholders.

Sim Soon Ngee Glenndle
Executive Chairman and Chief Executive Officer