2019 UEM Edgenta Annual Report

MD/CEO’s Statement For the year 2019, I am pleased to note that UEM Edgenta registered a solid performance despite a slower economy and a more volatile operating environment domestically. We were able to navigate through these conditions by staying true to our focus, disciplined execution, driving operational excellence and leveraging on technology to do more with less. Our people no doubt understood what it takes and delivered results to make the difference. All our businesses registered growth in FY2019, the Company’s revenue rose to RM2.4 billion, recording a 10.5% growth or a RM228.6 million increase. Profit After Tax was at RM188 million recording a growth of 23.4% an increase of RM35.6 million. Overall, I am pleased that the Company was able to register another strong growth for FY2019, a result which could only be achieved by the hard work of our people and support from our clients for the past years as we execute our business strategies to make our growth a sustainable success. THE UEM EDGENTA JOURNEY The UEM Edgenta of today represents a culmination of several corporate transactions which took place between 2014 to 2017. These then set the step for transformation and organic growth through diversification of our business beyond traditional contracts, regional expansion into Singapore, Indonesia and Taiwan, reducing our exposure to low growth markets and using technology, IT, mechanisation and sustainability to power the transformation thinking. Since the creation of UEM Edgenta in 2014, the Company embarked on an ambitious programme to set itself as a clear industry leader in Asset Management 36 and Infrastructure Solutions. Today, we are proud that our leadership position is not only acknowledged in Malaysia, but beyond, and our market position and multiple awards reflect this. Since then, we have nurtured the evolution of our businesses. Previously disparate, we are now focused on Asset Management and Infrastructure Solutions with a balanced portfolio of concession and commercial contracts, regional presence and involvement in marque projects across our sectors. To anchor our growth, we have inculcated operational and organisational excellence initiatives, as well as technological and HSSE leadership, and best practices from other industries. This has not only benefited our organisation, but also transformed and elevated the industries we operate in. Following these efforts undertaken throughout the years, we have registered a compounded annual growth rate (“CAGR”) of 13.4% in our core revenue from RM1.27 billion in 2014 to RM2.38 billion in 2019, while core PAT has risen at a CAGR of 13.2% from RM101.0 million to RM188.0 million during the same period. As highlighted in our Chairman’s Statement on pages 33 - 35 of this Report, the Revenue RM2,411.2 million year-on-year 10.5% Earnings Before Interest, Tax, Depreciation and Amortisation RM325.1 million year-on-year 22.0% Profit After Tax RM188.0 year-on-year 23.4% Dato’ Azmir Merican Managing Director/Chief Executive Officer