Chairman's Statement

(Extracted from Annual Report 2024)

Dear Shareholders,

This past year marked significant progress for Mencast as we continued our strategic shift from "Carbon to Silicon Civilisation", embracing digital transformation and sustainability amidst a complex global environment. While challenges remain, we steadfastly advanced our important journey toward innovation-driven growth.

Financial and Operational Progress

In 2024, Mencast delivered commendable financial results, achieving 10% growth in group revenue while maintaining disciplined cost management and improving operational efficiency. Operating cash flows remained robust, enabling us to reduce borrowings and further strengthen our balance sheet. While work remains, these improvements position us well for continued investment in our digital and sustainability initiatives.

Sustainability: Converting Carbon to Opportunity

Our sustainability initiatives align our business with the strong momentum toward circular economic practices. By innovatively recycling waste into useful products, such as recovered oils, waxes, and fertilisers, we have diversified our revenue sources and transformed our environmental commitments into business growth opportunities.

Digital Transformation Milestones

The year 2024 saw meaningful advancements in our Industry 4.0 ambitions. Mencast made significant strides in the productisation of an AI-driven additive manufacturing cell for marine propeller production, enhancing efficiency, precision, and real-time quality control. This milestone reinforces our shift toward digital operations, laying a solid foundation for the envisioned "lighthouse factory", a long-term strategic objective.

Navigating Market Challenges with Resilience

The year 2024 was marked by macroeconomic uncertainties, inflationary pressures, and supply chain disruptions. Mencast effectively navigated these challenges through proactive risk management, strategic cost control, and optimised inventory management. The resilience and adaptability of our management team and staff have been critical to our steady progress.

"Our sustainability initiatives align our business with the strong momentum toward circular economic practices."

Strategically Advancing Our Silicon Future

Looking forward, the global transition from carbon-intensive practices to digitally driven solutions is shaping up to be one of the defining events of our generation. Mencast aims to seize opportunities from this shift by strategically expanding into high-value segments like premium offshore vessels, aerospace, and precision engineering. Continued prudent investment in digital technologies, artificial intelligence, and sustainable practices will guide our growth path, balancing ambition with cautious optimism.

Appreciation

I extend my sincere appreciation to our shareholders for your continued confidence, to our customers and business partners for your valued collaboration, and to our dedicated team members, whose resilience and commitment continue to drive our achievements.

Thank you for your ongoing support. Together, we look forward to a sustainable and innovation-driven future.

Sim Soon Ngee Glenndle
Executive Chairman and Chief Executive Officer