Thank You, Shareholders
The global COVID-19 pandemic will be a pivotal moment in our history. At the heart of the challenges faced across all our business segments, our resilience has allowed us to respond efficiently, and perform our role as the guardian of our clients’ assets. We thank you for your confidence and trust in UEM Edgenta, and our aim is to ensure the Company remains sustainable for the long-term and we are committed in our support towards national recovery efforts.
Winning Together
Our business spans across the region, serving clients operating in key industries within this economic landscape. As an essential service provider at the front lines, our preparedness to face crises and disasters was put to the ultimate test in 2020. It was our responsibility to ensure our clients’ operations remained uninterrupted throughout the pandemic, in which we transitioned to comply with heightened health and safety standards, as well as formulate new operational protocols, which effectively strengthened our core offerings; all while we adapt our business to the new normal.
Powering UEM Edgenta Forward
At UEM Edgenta, our people are at the heart of the solutions which we offer to the market. The Company connects our essential front line operations through digital workforce management capabilities, while using innovative technologies to manage asset performance data and create an ‘always on’ decision support system. This provides us the ability to remotely ensure the assets under our care are always managed efficiently for our clients. Our business ecosystem also provides our people with the tools to operate effectively from home; all while ensuring that their emotional health, safety and well-being are taken care of.
Commitment to Social Impact
We are committed to efforts which can positively impact the lives of society at large, and create shared prosperity for communities living within our operational boundaries. Our support towards national recovery efforts during this time of crisis, providing our digital healthcare products and biomedical equipment services, was supplemented with immediate relief for deserving families to help weather the impact brought by the COVID-19 pandemic. We continue to drive our corporate responsibility activities which are predicated by Environmental, Social and Governance principles.
Getting Businesses Back in Motion
The UEM Edgenta COVID-19 Business Solutions was launched to provide the market with convenient access to a holistic suite of solutions for their business. Our existing and potential clients now have the option of solutions which have been carefully designed through our experience operating at the front lines across the region, implementing globally-acknowledged standards and best practices into our rituals for the safety and health of their teams.
Transitioning Our People with New Values
As a solutions company, our values play an important role in shaping our purpose as an organisation to achieve the needs of our clients. In our efforts to create an up-to-date service-oriented culture, we have established a new set of values to spur refreshed beliefs and winning mindsets among our people in response to current market demands, as well as to realise our vision of ‘Edgenta of the Future’.
27%
reduction in electricity consumption annually
Maintaining over
3.6 million m2
of cleanable surfaces every day
More than
10
GBI-certified Green Buildings
11%
reduction in water consumption annually
RM55 million
in energy bill savings through our Energy Performance Contracting programme
9 tonnes
of recyclable waste diverted from landfills
LEED v4 Gold Rating
Sultanah Maliha Hospital, Langkawi – the only healthcare facility in the world to achieve LEED v4 Gold Rating
Scored
93.71% ASEAN Corporate Governance Scorecard* by Minority Shareholder Watch Group (“MSWG”)**
Ranked
#50 out of 866 Public Listed Companies for Overall Corporate Governance & Performance in 2019 by MSWG**
9 initiatives to strengthen the Anti-Bribery & Anti-Corruption (“ABAC”) Guide
* for financial year ended 31 December 2018
** latest results published in year 2020
0 Number of Fatalities
(as at 31 December 2020)
Injury Rate
1.7 (in 2020) compared to 2.8 (in 2019)
Safety Excellence across operations network with over
250
professionally trained experts
Revenue
RM2,028.7
million
EBITDA
RM131.6
million
Profit Before Tax
RM46.9
million
Profit After Tax
RM14.4
million
Normalised PAT
RM64.4
million
PATANCI
RM12.9
million
Gross Gearing Ratio
0.32x
Net Cash Position
RM206.6
million
Net Asset Per Share
RM1.80
Shareholders' Fund
RM1,500.7
million
Total Cash, Bank Balances, Deposits & Short-Term Investment
RM689.8
million
Total Assets
RM2,807.4
million
Earnings Per Share
1.5
sen

Dear Shareholders,

2020 was a test of our resilience and fundamentals with the COVID-19 pandemic dominating all aspects of life and business. The resulting containment measures, from restricted movements to lockdowns, significantly impacted business operations across industries, and UEM Edgenta was no exception.

NEW TECHNOLOGIES WILL FURTHER CHANGE THE WAY WE WORK TO ACHIEVE OUR BUSINESS GOALS AND PROFITABILITY.
TAN SRI DR. AZMIL KHALID
Independent Non-Executive Chairman

In the face of adversity, however, we emerged stronger and I am pleased to report that we recorded a resilient performance for the financial year ended 31 December 2020 (“FY2020”).

Navigating our business through an unprecedented landscape was made possible by the sheer strength and tenacity we have built over the years, combining our expertise and experience with leading-edge technologies and innovative solutions.

In FY2020, we registered commendable financial results across all our business segments despite the challenging operating environment. In further demonstrating our resilience, we continued to win key contracts in healthcare support services in Malaysia, Singapore and Taiwan, and introduced new technology-enabled innovative solutions to meet areas of growing demand.

These achievements are testament to the fact that our Company’s fundamentals remain intact and that we continue to be adaptable even in trying times.

Dear Shareholders,

FY2020 was an unprecedented year during which significant disruptions caused by the COVID-19 pandemic left a devastating impact on people and the economy. Our resilience, agility and adaptability have been key in helping us navigate through this incredibly unpredictable period, enabling us to quickly emerge with confidence and rigour as we continue to deliver our services and solutions amid the pandemic.

Trends and data emerging from the crisis helped us identify growth opportunities which in turn prompted a strategy refresh. We saw the need to pivot to a more sustainable business model that will continue to drive long-term value for our stakeholders under the new normal. Ultimately, 2020 was a year for us to reflect, reset and reposition our businesses to be future-proof.
SYAHRUNIZAM SAMSUDIN
Managing Director/Chief Executive Officer

Of particular importance is our role in supporting the Malaysian Government to contain the spread of the virus through our digital healthcare solutions, which today power critical healthcare infrastructure nationwide. Our endeavours in this area are detailed under the section on Our Contributions to Pandemic Recovery Efforts.

At the forefront of the battle against the virus are our colleagues who deliver uninterrupted essential services at the hospitals, highways, offices and industrial assets under our care. Their courage, dedication and selfless sacrifice are an inspiration to us all and we would like to take this opportunity to commend these front liners who have been working tirelessly to strengthen the nation’s line of defence against the virus, as well as to keep us safe on the roads, at our workplaces and in public places.

Undoubtedly, our business segments were impacted by the repercussions of the pandemic, from restricted movements to delays and postponements in projects, rising operating costs and unemployment. Recognising early on that the impact may last beyond the year, we reviewed our business priorities and portfolio. Trends and data emerging from the crisis helped us identify growth opportunities which in turn prompted a strategy refresh. We saw the need to pivot to a more sustainable business model that will continue to drive long-term value for our stakeholders under the new normal. Ultimately, 2020 was a year for us to reflect, reset and reposition our businesses to be future-proof.

FY2020 WAS A CHALLENGING YEAR FOR UEM EDGENTA BOTH OPERATIONALLY AND FINANCIALLY. WHILE MANAGING DAY-TO-DAY OPERATIONS WITHIN THE CONSTRAINTS OF THE COVID-19 PANDEMIC, WE WERE IMPACTED BY DELAYS AND DEFERMENTS OF NON-CRITICAL INFRASTRUCTURE MAINTENANCE WORK AND COST ESCALATION IN OUR HEALTHCARE SUPPORT DIVISIONS. UNCERTAINTIES IN THE ECONOMIC CLIMATE, TOGETHER WITH THE NEED TO ENSURE THE SAFETY OF OUR EMPLOYEES, MADE IT CRITICAL FOR US TO STAY RESILIENT. OUR PRIMARY FOCUS THEREFORE WAS COST OPTIMISATION AND COST CONTROL, IN ORDER TO PROTECT OUR TOP AND BOTTOM LINES.

In terms of cost management, we embarked on a comprehensive programme to trim unnecessary expenses across the board. Among others, we looked at strategic procurement initiatives and cost optimisation; removing duplication as we implement a leaner and more sustainable business model. These efforts are supported by greater emphasis on the delivery of operational efficiencies through the use of technology and mechanisation.

At UEM Edgenta, sustainability means managing and operating a responsible business alongside securing profits and driving long-term value creation. Our approach to sustainability is focused on striking a balance between our economic aspirations and our commitment to environmental, social and governance responsibilities.

As we transition towards becoming a leading technology-enabled solutions company, we will continue to focus on achieving triple bottom line goals based on the globally recognised Environmental, Social and Governance (“ESG”) parameters, from the previous emphasis on Economic, Environmental and Social (“EES”). The ESG principles are enshrined in our core values in which we commit to treating our colleagues and stakeholders with respect.

Our switch to ESG reporting is premised on the growing importance of advocating governance among stakeholders. Under this approach, we also place added emphasis on integrity and transparency by the Board and management.

Environmental
We are committed to the development of a circular economy through our various services as we believe the systemic approach will significantly impact businesses, society and the environment. We aim to become a climate-positive company and to achieve this, we will continue to promote the use of renewable energy and adopt a disciplined approach to monitor and reduce our emissions. We share our commitment towards becoming climate-positive with our employees, clients, partners and suppliers through driving resource efficiency and empowering them with cutting-edge technologies to improve operational and energy efficiencies. Our environmentally-conscious consumption practices through minimising single-use plastics and striving for excellence in waste management is part of our zero waste target across our operations, as well as other relevant areas of our value chain.
Governance
Having orderly checks and balances to ensure that our operations are effective, ethical and have the interests of our stakeholders in mind are essential in instilling good governance. Hence, we place great importance to having effective Board of Directors drawn from a good mix of industry experts, with relevant industry experiences and possessing objective mindsets. Our Board ensures that we create an ethos of integrity and accountability, and that good governance practices are upheld at all times as we continue to create value for our broad range of stakeholders.
Our sustainability efforts today are guided by the UNSDGs. We have identified four UNSDGs that have material impact on our businesses and stakeholders:
Guided by these UNSDGs, we will constantly strive to care for all our stakeholders, delivering assurance and peace of mind. We envision becoming an industry leader with sustainability as our hallmark of excellence and corporate citizenry, building positive and impactful relationships for the long-term.
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