PEC : Annual Report FY2023

Catching the

Winds

of

Annual Report

2023

~ Contents ~

2	3		4
Corporate	Business		Financial
Profile	Strategy		Highlights
Geographical6	Chairman8	&	12Board
Presence	CEO's Statement	of Directors

15 35

Corporate Financial

Governance Statements

Proxy Corporate

Form Information

Catching the

Winds

of

Sailing is a unique experience, and what every sailor needs to know is the weather. Weather can be unpredictable and, even for the most seasoned sailor, one element they have to constantly contend with is the direction of the wind. Sailors may be required to change course continuously in order to catch the wind in

the sails and keep the boat moving towards the destination.

Drawing from this analogy, PEC has prepared itself for the rougher weather and seize opportunities in the horizon. For example, PEC has taken the initiative to develop its modular business that will be the foundation for new energy projects in the future, such as ammonia, hydrogen and carbon capture utilisation and storage.

Even as traditional fuels such as oil and natural gas continue to play critical roles in today's energy and economic systems, affordable and reliable supplies of liquids and gases remain crucial even as oil majors look to diversify their energy operations towards low-carbon businesses. PEC is setting its sails to ride the winds of change by strengthening its capabilities to be a valuable partner to its customers in this energy transition.

With the wind in its sails, PEC will continue to work towards creating value for its stakeholders while being mindful of the impact of its operations on the environment.

Annual Report 2023 001

Corporate

Profile

Established in 1982, PEC Ltd. (PEC) has grown into a recognised plant and terminal engineering specialist with fabrication facilities spread across the world - helmed by a strong management team with decades of experience in their individual fields. PEC serves four main sectors - energy, petrochemicals, oil & chemical terminals and pharmaceuticals - and is making good progress into the clean energy sector through our wholly-owned subsidiary, PEC Process Systems Pte Ltd, which designs and fabricates modular process and gas compression solutions.

Our reputation for being a reliable and trusted provider of engineering solutions has won over a growing number of clients in the industries we serve, including prominent MNCs that have been with us since 1982. Over the years, these relationships have allowed us to establish a firm foothold in Asia and the Middle East, where we continue to expand our presence.

One of PEC's core businesses is project works, under which we provide engineering, procurement & construction (EPC), EPC project management and project management consultancy services. Providing plant maintenance services, including plant turnarounds and upgrading, makes up our other core business, where we offer clients all the advantages of a 'one-stop' service.

With our established processes and methodologies, PEC aims to be the engineering specialist of choice for customers. To better meet client needs, we are constantly enhancing and expanding our capabilities through acquisitions and technological upgrading.

An experienced and skilled workforce is one of the cornerstones of PEC's success. Furthermore, we have one of the best safety records in the industry. Armed with a large fleet of equipment and supported by our multi-skilled workforce, we can cross-deploy our resources quickly and effectively, giving us the flexibility to respond promptly to customer needs and compete confidently in the industry.

002 PEC Ltd.

Business

Strategy

PEC's five-prong strategy continues to set it apart from other industry players while enabling it to steadily push forward plans to explore new markets and widen its revenue base.

Strengthen Our

Global Footprint

We have made much headway since our first expansion outside Singapore in the early 1990s. Today, we have an established network of engineering facilities in nine countries and we are still looking to grow and deepen our global footprint through opportunities with new as well as existing clients.

Keep a Balanced

Revenue Stream

Recognising the importance of steady revenue flows, we endeavour to strike a balance between income contributions from our engineering, procurement & construction (EPC) projects and those from maintenance services. Our unique ability to synergise and leverage on these two core businesses has proved invaluable in maintaining a balanced revenue stream.

Add to Niche Capabilities and Products

We actively pursue opportunities to add to our core capabilities by seeking out partners that offer specialised services and products that will provide us with a unique edge. Through strategic investments or

joint ventures, we are able to acquire niche capabilities and products that help to extend our customer base and gain inroads into new markets.

Sharpen Our Edge through Digitalisation

We continually implement strategic initiatives to deepen and widen our existing engineering and ICT (Information and Communications Technology) capabilities that take us forward in our digital transformation journey, sharpening our competitive edge. Our expanding range

of innovative solutions, such as the integrated Turnaround Management System, enhance workflow processes, key operating data flow and overall productivity, preparing us well to serve the 'smart plants' of tomorrow.

Explore Adjacent

Industries

Armed with a thorough understanding of the process industries and a sturdy network of strategic business alliances, we continue to explore fresh channels into adjacent industries such as the clean energy-related and power generation sectors. The Group is well-equipped

to capture growth in these areas, where energy demand is expected to continue to rise in the mid to long term.

Annual Report 2023 003