5 Annual Report 2024 MESSAGE TO STAKEHOLDERS Dear Stakeholders, As we reflect on our journey this past financial year, it is with a deep sense of pride and gratitude that we share CSE Global’s achievements amidst an environment marked by persistent macroeconomic volatility. The global landscape has continued to present challenges, from geopolitical tensions, inflationary pressures and persistent supply chain disruptions. Yet, CSE Global has demonstrated resilience, adaptability, and unwavering commitment to delivering value to all stakeholders. This year, we expanded our capabilities and strengthened our position as a trusted partner for our customers, which include government bodies and some of the world’s leading companies in their respective industries. We are honoured to be among the five SGX-listed companies featured in The Straits Times’ list of 100 Singapore’s fastest-growing firms, which highlighted our revenue growth of more than 44% between 2020 and 2023 with a compound annual growth rate of 12.98%. CSE Global was also featured amongst the Financial Times’ HighGrowth Companies Asia-Pacific 2025 list. These accolades are a testament to our ability to navigate market challenges and an affirmation of CSE Global’s growth strategy. Our continued success has only been possible due to the hard work and dedication of our team, the trust of our customers, and the support of our Board, shareholders and business partners. ACHIEVING NEW MILESTONES The Group’s order book remained robust at S$672.6 million as at 31 December 2024, underpinned by consistent demand for our Electrification, Communications, and Automation solutions. Revenue for the year reached a new high of S$861.2 million registering a growth of 18.8%, mainly driven by the Electrification and Automation business segments. Net profit before exceptional items surged 63.2% year-on-year to S$36.8 million. Gross profit margin remained relatively stable at around 28%, while our EBITDA rose 29.1% year-onyear to S$82.2 million, underscoring our ability to manage costs and enhance operational efficiency. We generated a strong operating cash inflow of S$33.1 million in FY2024, which was supported by better working capital management. The Group’s net debt position improved to S$72.1 million as at 31 December 2024, with a net gearing ratio of 28%, reflecting our disciplined approach to capital management and balance sheet strength. The Electrification business segment emerged as the key growth driver this financial year, contributing more than 50% of total revenue. During the year, we secured around S$200 million of major Electrification contracts that are slated for execution through till 2027, one of which is for a data centre project in the United States of America (“USA”). In FY2024, Electrification revenue improved by 30.0% to S$434.8 million, mainly due to significant contributions attributable to major contracts secured in FY2023 and new projects secured in FY2024. The segment’s EBITDA grew by 44.0%, rising from S$29.7 million in FY2023 to S$42.7 million in FY2024. This increase was due to higher revenue achieved with stable gross margins and improved operating leverage. Our strategic focus on Electrification solutions, which are increasingly critical in supporting urbanisation, decarbonisation, the global energy transition, digital transformation and growing AI utilisation, have shown to be successful in enhancing our stronghold in our key markets and driving sustainable growth for the Group. Our Communications business segment continued to see stable demand, particularly in the USA, United Kingdom (“UK”), Australia, New Zealand, and Singapore. The Communications business segment saw a modest revenue growth of 5.2%, increasing from S$220.5 million in FY2023 to S$232.0 million in FY2024. Despite the revenue growth, the
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