Secura : FY2021 Sustainability Report

SUSTAINABILITY REPORT

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

Co. Reg. No. 201531866K

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This sustainability report has been prepared by Secura Group Limited (the "Company") and has been reviewed by the Company's sponsor, United Overseas Bank Limited (the "Sponsor"), for compliance with Rules 226(2)(b) and 753(2) of the Singapore Exchange Securities Trading Limited SGX-ST (the "SGX-ST") Listing Manual Section B: Rules of Catalist.

This sustainability report has not been examined or approved by the SGX-ST. The SGX-ST assumes no responsibility for the contents of this sustainability report, including the correctness of any of the statements or opinions made or reports contained in this sustainability report.

The contact persons for the Sponsor are Mr. David Tham, Senior Director, Equity Capital Markets and Ms. Priscilla Ong, Vice President, Equity Capital Markets, who can be contacted at 80 Raffles Place, #03-03 UOB Plaza 1, Singapore 048624, telephone: [phone].

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About this Sustainability Report

We are pleased to present the annual sustainability report of Secura Group Limited (the "Company" or "Secura", and together with our subsidiaries, the "Group"), for the financial year ended 31 December 2021 ("FY2021").

This report was prepared (i) in compliance with Rule 711A and 711B of the SGX-ST Listing Manual Section B: Rules of Catalist, and (ii) with reference to the Global Reporting Initiative ("GRI") Standards: Core Option. We have adopted the GRI reporting framework as it offers an internationally recognised benchmark for disclosure across a comprehensive range of sustainability related topics.

The scope of the policies and data covered in this report pertains to operations in Singapore only, where we are headquartered in and where are main operating subsidiaries are located.

In defining our reporting content, we have referred to GRI's principles for defining report content by considering the Group's activities, impact and substantive expectations and interests of our stakeholders. We observed a total of 4 principles, including stakeholder inclusiveness, sustainability context, materiality and completeness. For reporting quality, we observed principles of balance, comparability, accuracy, timeliness, clarity and reliability.

We applied a standardized approach to data collection and analysis across all our operations, and ensure data is monitored and verified for accuracy internally before circulation. We have not sought external assurance for this report. The environmental, social and governance data and information provided for the purpose of this report have not been verified by an independent third party.

In our continuous efforts to ensure and improve our sustainability journey, we welcome your views and feedback at [e-mail].

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Board Statement

The board of directors of the Company (the "Board") and the management (the "Management") presents our FY2021 sustainability report and update on our continued efforts and commitment in achieving our sustainability objectives.

The Board and the Management subscribe to sustainability efforts and take a long-term view in all areas of environmental, social and governance ("ESG") practices in our continuous pursuit to achieve high economic value for all our stakeholders.

We have reviewed the key material ESG factors with all our business units and have determined that these material factors remain relevant. We will continue with our efforts to integrate technology applications in our business operations to optimize resources.

With the COVID-19 pandemic into its second year and given the more transmissible variant, the Group maintained its focus in keeping our workers' health and safety of upmost importance. We incentivised our staff to be fully vaccinated, provided regular supply of surgical masks and antigen rapid test kits to monitor their health conditions given that most are essential service workers, who are more susceptible and exposed to the virus in their work environment. Other than remote surveillance as a service, we have also issued wearable cameras to most of our officers to allow them to execute their jobs with greater confidence and deter unwarranted social abuses. We are advocates of technology adoption to improve work performance.

With impact on climate change high on the agenda on sustainability management, our next directive is in adopting solar energy applications to power our facilities. While our energy consumption is not unduly high, there is need to minimise our carbon emission footprints.

Our sustainability efforts are led by the Chief Executive Officer ("CEO") and the heads of each business unit. The Board reviews and determines the relevance of the material ESG factors of the Group, oversees the management and monitoring of these factors and takes sustainability issues into consideration in the determination of the Group's strategic direction and policies.

This is our fifth sustainability report and we have included comparative data with previous year's report.

The Company will continue to seek out new initiatives to work towards including sustainability efforts in the conduct of our businesses.

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Organisation Profile

Secura was listed on the Catalist Board of the SGX-ST on 28 January 2016 through a merger of the Secura group of companies and the Soverus group of companies.

The Secura group of companies has been providing security printing services of value documents with anti-counterfeit features since 1976, and owns one of the largest cheque printing businesses in Singapore. With operations in Singapore, Bangladesh and Taiwan, its range of value documents include bank cheques and passbooks, cash vouchers, educational certificates, marriage certificates, statement mailers, prepaid recharge vouchers and machine-readable betting slips and examination answer sheets, amongst others.

The Soverus group of companies provides security services including security guarding, security systems integration, cybersecurity, homeland security and security consultancy services. As a premium security agency in Singapore, the group provides unarmed manned security guarding services, as well as operates a state-of-the-art24-hour command centre with remote CCTV surveillance and video analytics for round-the-clock monitoring of premises.

The Group moved into the skills training arena in 2017, and incorporated Secura Training Academy Pte Ltd ("STAPL"), which was certified as a Public Approved Training Organisation, and offers training modules for security and service tracks.

Secura also holds a 19% interest in Custodio Technologies Pte Ltd ("Custodio Technologies"), a subsidiary of Israel Aerospace Industries Ltd. The main business of Custodio Technologies is in research and development of new cybersecurity solutions and capabilities with a focus on cyber early warning technology.

The Group is headquartered at 38 Alexandra Terrace, Singapore 119932 and operates from 2 other locations in Singapore - Pioneer Road North and Buroh Street factories for its printing operations. Through its security printing division, it also has associates operating in Taipei, Taiwan and Dhaka, Bangladesh.

As at the end of FY2021, the Group has 15 subsidiaries, joint ventures and associates, comprising 12 local entities employing a total of 915 staff in Singapore.

The Group has a diversified customer base comprising more than 800 customers in various industries, including multinational corporations, financial institutions, government agencies and small and medium size enterprises.

The Group also represents itself in the industry's associations, with 3 of its subsidiaries holding membership in the Security Association Singapore and the Association of Certified Security Agencies. The Group's Managing Director (Security Guarding) is also the Vice President (Systems) of the Security Association Singapore. The Company and some of its subsidiaries also subscribe to membership in the Association of Small and Medium Enterprises.

Precautionary Principle

For our printing division, we ensure that raw materials supplies, in particular paper, materials, are secured from internationally approved sustainable sources. The sources of paper materials are either FSC (Forest Stewardship Council) or PEFC (Programme for the Endorsement of Forest Certification) certified.

Given the Group's current scale of operations, we have not undertaken any measures to address potential environment impacts. However, we do observe recycling procedures and ensure the appropriate disposal of industrial waste according to approved guidelines from the National Environmental Agency.

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