6 CSE GLOBAL LIMITED The Electrification segment recorded a 41.9% increase in new orders to S$561.1 million, attributed mainly to a number of major electrification projects which included the design and manufacturing of power distribution centres and integration of electrical and control systems and equipment in the United States of America (“USA”). The Communications segment demonstrated the strongest growth in new order intake, with an increase of 58.7% to S$247.7 million, boosted by new orders from recent acquisitions to expand its geographic footprint and market coverage as well as a contract for the supply, installation, integration and maintenance of communication and security systems by the Singapore Government. Order intake for the Automation business segment totalled S$181.5 million, compared to S$267.2 million in FY2022 which included a one-off major contract relating to a multi-year system maintenance contract from the Singapore Government and maintenance of integrated control systems for an offshore facility. As at 31 December 2023, the Group’s outstanding order book remained robust at S$730.6 million, supported by our existing and new customers. Many customers continued to support and award us with a stable stream of flow orders, some of whom have been with us for decades. PROGRESSING IN OUR SUSTAINABILITY & CORPORATE GOVERNANCE EFFORTS As the business continues its growth trajectory, the importance of sustainability and corporate governance remains instilled within the Group. Aligned with the Singapore Green Plan positioning Singapore to achieve its 2050 net zero emissions goal, we are committed to contributing to Singapore’s national agenda on sustainable development. At CSE, we employ two main sources of energy consumption for our operations. Whilst our fleet of vehicles predominantly function on diesel and petrol, our office premises, warehouses, and integration centres primarily utilise electricity. We drive to reduce our energy consumption across all operational processes to ultimately mitigate our carbon footprint whilst striving to negate detrimental environmental impacts. We remain cognisant of curbing energy consumption for a sustainable future, which will result in cost savings and overall improvements in economic performance. We are dedicated to reducing energy consumption and mitigating our carbon footprint. In a bid to transition to cleaner and renewable energy sources while promoting energy efficiency throughout our operations, CSE started to implement energy-saving practices, such as motion sensor lights, energy-efficient bulbs, and regular efficiency checks, while promoting employee awareness of energy conservation. Additionally, our commitment to reduce our carbon footprint includes transitioning to a greener fleet through the adoption of electric vehicles. With our customers, our participation in renewable energy projects and powering our solutions with renewable sources has contributed to the greening of their operations. In FY2023, CSE Global successfully obtained a sustainability-linked loan facility with one of our bankers. This loan facility will provide CSE Global with funding terms similar to a typical revolving credit facility, but with favourable terms for reductions in emissions intensity. At CSE Global, we see this as a first step in linking financial incentives to our sustainability performance. In the future, we foresee greater use of sustainability-linked loans and other innovative financing mechanisms to help incentivise and steer us toward achieving our emissions targets. MESSAGE TO STAKEHOLDERS
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