2019 UEM Edgenta Annual Report

69 UEM Edgenta Berhad UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP STRATEGIC FOCUS OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION Annual Report 2019 Value Creation Over the years, we have streamlined our business and invested in our people to unleash operational excellence and value creation. This has enabled us to adopt new ways to work and provide new services to our clients, anchored on technology and innovation, as well as riding on digital transformation, automation and mechanisation. This has been enabled through our journey of expansion undertaken since 2014. Track record of successful corporate exercises: • Successful integration of entities to establish the UEM Edgenta of today: - Merger of PROPEL, Opus and Faber in 2014 - Acquisition of KFM Holdings Sdn. Bhd. (now known as Edgenta GreenTech Sdn. Bhd.) which strengthened our capabilities in green building solutions; and UEMS Pte. Ltd., which has expanded our regional presence in Singapore and Taiwan • Streamlined Company’s business via the divestment in Opus International Consultants, New Zealand Organic Growth Regional expansion through the award of the following projects: • Cikampek-Palimanan Highway, Indonesia • MoH Singapore restructured hospitals • Tri-Service General Hospital and National Taiwan University Hospital, Taiwan • wasl Group, United Arab Emirates Expanded offerings: Technology and Sustainability / Green Solutioning (Please refer to our Climate Positive initiatives under the Environment pillar in pages 76 - 77) Streamlined businesses to focus on our core expertise in Healthcare Support, Infrastructure Services, Property & Facility Solutions and Asset Consultancy Our value creation achievements between 2014 to 2019: 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 More than RM850 million in dividends paid out over the last six years This is in line with our dividend policy, which we revised in 2018, to distribute 50%-80% of our PATANCI. Please refer to 2019 Key Highlights on pages 16 - 17 on key financial and non-financial performance for FY2019 and Group Statement of Value Added on page 46 on distribution of value to various key stakeholders. Sustainability Statement