JEP : Sustainability Report

SUSTAINABILITY REPORT 2019

This report has been reviewed by the Company's sponsor, RHT Capital Pte. Ltd. ("Sponsor"), for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited ("SGX-ST"). The Sponsor has not independently verified the contents

of this report. This report has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this document, including the correctness of any of the statements or opinions made or reports contained in this document. The details of the contact person for the Sponsor are as follows:

Name : Mr Lay Shi Wei, Registered Professional

Address : 9 Raffles Place, #29-01 Republic Plaza Tower 1, Singapore 048619

Tel : [phone]

MESSAGE FROM BOARD

BOARD STATEMENT

JEP Holdings Limited believes that sustainability is integral to our business and is critical to achieving long-lasting value creation for all our stakeholders. We embarked on our sustainability journey to address material ESG issues to create a sustainable future with all our stakeholders. To manage stakeholder engagement, we have cultivated relationships through regular and systematically planned forms of dialogue as well as open channels of communication.

We are proud on delivering top-notch manufacturing solutions evidently. From our customer satisfaction survey results, we have achieved an outstanding score of 85% customer satisfaction. These results stand as a testament to our skilled and professional workforce that exists within our organisation to produce manufacturing quality and high-precision components. To continue our stellar performance and deliver manufacturing solutions to our customers, we have also recognised the importance of attracting, developing and retaining a high-quality workforce.

To strengthen and achieve results that go beyond, we place heavy emphasis on good corporate governance as the core belief of our business. The belief in good cooperate governance enables us to achieve our sustainability goals. We thus uphold this belief as it lays a solid foundation for the establishment of a sound organisation. Furthermore, operating in an ethical environment will safeguard the interests of all our stakeholders. Therefore, we strive to put in place a robust governance framework to maintain integrity, transparency, accountability, and discipline in all our business activities.

In FY2019, the Management together with key stakeholders reviewed and assessed the materiality of Environment, Social and Governance ("ESG") topics identified in FY2018. The management was satisfied with the achievement attained in FY2019 and there is no major changes in the Group business model and portfolio at the current fiscal year, the management are of the opinion to continue to focus on the four identified targets to strengthen sustainability performance. We will make efforts to improve the overall sustainability performance across our business portfolio, as well as improve upon our communications to all stakeholders. We aim to create a virtuous cycle that benefits both our business operations and future sustainability pursuits.

BACKGROUND OF JEP HOLDINGS LIMITED

ABOUT JEP HOLDINGS LIMITED

JEP Holdings Limited (the "Group" or "JEP") is a public limited company listed on the Catalist Board of the Singapore Stock Exchange since 2004. JEP is Singapore's leading solution provider of precision machining and engineering services, with a primary focus on the aerospace industry.

The Group's subsidiaries are accredited with AS9100, ISO 45001, and NADCAP and has built a record of accomplishment as a reliable sub-contractor for aerospace components since beginning operations in 1990. Its now part of the global supply chain for the world's leading aircraft manufacturers.

The Group's customer base spans across Singapore, Malaysia, China, the United States of America, and the United Kingdom. This has allowed JEP to build and establish a strong value chain that provides seamless manufacturing solutions. The Group's business operations not only spans across different regions globally but also provides complete turnkey services for aerospace, electronics, oil and gas, equipment manufacturing and machine tooling industries. The Group's headquarters and significant location of operations is situated in Singapore.

The Group also believes in providing precision manufacturing services that excel in quality and delivers unprecedented customer satisfaction whilst carrying out our operations in a manner that is both environmentally sustainable and socially responsible.

Therefore, the Group follows strict procedures of identifying, selecting, qualifying and monitoring to assess the performance and capabilities of the vendors for raw materials supply, standard items, special process services and fixture as well as gauge fabrication.

OUR PEOPLE

Number of Employees by GenderNumber of Employees by CategoryNumber of Employees by Age

MaleFemale

Engineering

Production

Support

*Total employee headcount in JEP is 279 (2018: 298)

LOCATION OF CUSTOMER BASEJEP'S MISSION AND VISION

JEP functions with a dynamic mission and strategic vision, which allows it to pave its way forward in the industry. With our highly experienced management team, we constantly strive to be the premium service provider for quality manufacturing solutions and seek to deliver every project with performance and precision.

To be the foremost strategic partner to our customers who demand the highest standards in terms of efficiency and effectiveness.

EXTERNAL CHARTERS AND PRINCIPLES

As an entity regulated by the Securities and Futures Act (Cap 289) ("SFA"), the Listing Manual of Singapore Exchange Securities Trading Limited (the "SGX-ST") (the "Listing Manual") and other regulations, the Board is committed to upholding good standards of corporate governance at JEP.

The Board of Directors of JEP (the "Board") is committed to upholding high standards of corporate governance practices throughout JEP that are in line with the Code of Corporate Governance 2018 (the "2018 Code"). The Board will also ensure that JEP complies with the other regulations, notices, circulars, and guidelines that may be released by Monetary Authority of Singapore ("MAS") from time to time and should there be deviations, explanations will be provided.

JEP's leadership has combined more than 20 years of experience in manufacturing of front-end semiconductor components. With such experience, JEP's leadership competently drives all operational matters of the Group. JEP's leadership has directed the Group to hold membership in the Association of Aerospace Industries and Singapore Business Federation to develop strategic relationships within the industry to drive value creation for all stakeholders.

AWARDS

The Group has been in business since the 1980s. Over the years, JEP has accumulated a wealth of experience, expertise and an established record of accomplishment. Below is a list of some of the awards:

Awarded by Eaton Corporation

The Best Supplier in Aerospace

Asia Pacific 2011

Awarded by Aker Solutions

Certificate of Accreditation

2018

Awarded by Safran

Performance Excellence Award

2019