2019 UEM Edgenta Annual Report

CFO’s Review UEM Edgenta registered a ‘green’ report card in FY2019, achieving double-digit growth in revenue of 10.5% to RM2.4 billion following topline growth across all our businesses. This was contributed by new hospital support services contracts secured in Taiwan and Singapore, a higher volume of road maintenance works in Malaysia and Indonesia, as well as project management consultancy contracts in East Malaysia. Subsequently, EBITDA and PAT rose by 22.0% and 23.4% to reach RM325.1 million and RM188.0 million, respectively, due to operational efficiency initiatives. Our earnings and profitability for the year were also contributed by receipt of the final payment settlement from our Abu Dhabi project, as well as higher profit from our associate companies. Our Healthcare Support and Infrastructure Services divisions remained the largest contributors and consistent engines for our growth story. Healthcare Support contributed to 48% and 37% of full-year revenue and PAT respectively, while Infrastructure Services division contributed to 39% and 48% of total revenue and PAT respectively. For further details on the segmental performances of our Healthcare Support, Property & Facility Solutions, Infrastructure Services and Asset Consultancy divisions, please refer to the Operational Review on pages 55 - 63 of this Report. Overall, our businesses also demonstrated stability against challenges such as uncertainty over infrastructure mega projects following Malaysia’s 2018 General Election and delays in some planned initiatives for our PLUS highway maintenance contract due to questions over its business and ownership structure. We also saw a more competitive market as the Government moved towards open tenders from direct and indirect negotiations. Nonetheless, we were able to keep our financials intact and even stay ahead of our competitors in delivering consistent results with optimum costs and anchored on our high HSSE awareness, underscoring the value and sustainability we assure our stakeholders of. 40 MUHAMMAD NOOR BIN ABD AZIZ @ HASHIM Chief Financial Officer FY2019 FY2018 Revenue** (RM Million) 192.2 (8%) 1,132.2 (48%) 189.4 (9%) 984.6 (45%) 915.6 (39%) 131.9 (5%) 882.0 (41%) 114.1 (5%) PAT** (RM Million) 23.9 (10%) 84.4 (37%) 17.4 (9%) 86.5 (45%) 110.6 (48%) 10.6 (5%) 82.0 (42%) 7.7 (4%) ** Excludes property development, final settlement from Abu Dhabi project, intercompany revenue and others. EBITDA** (RM Million) 154.2 (49%) 115.9 (43%) 13.5 (4%) 11.6 (4%) 115.6 (37%) 121.8 (45%) 33.3 (10%) 19.9 (8%) Healthcare Support Property & Facility Solutions Infrastructure Services Asset Consultancy