2020 UEM Edgenta Annual Report

STRONG NET CASH POSITION AT RM206.6 million 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. A RESILIENT PERFORMANCE Against the backdrop of unprecedented operating conditions, we recorded a commendable revenue of RM2.0 billion for the year ended 31 December 2020 (FY2020), from RM2.4 billion in the previous financial year (FY2019). The Group’s normalised net profit, excluding write-down of unsold property inventories, totalled RM64.4 million compared with RM165.0 million in FY2019. The lower profit factored in a one-off write-down of RM50.0 million undertaken in the first half of FY2020, as part of efforts to restructure and rationalise our non-core businesses. Our balance sheet remained healthy with a low gross gearing ratio of 0.32 times, a strong net cash position at RM206.6 million. Of significance, we ended the year with a robust long-term orderbook of RM12.2 billion, which will see us through to 2038. We continued to win new contracts throughout the turbulent year 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 WE CONTINUED TO WIN NEW CONTRACTS THROUGHOUT THE TURBULENT YEAR IN ALL FOUR OF OUR BUSINESS SEGMENTS, TOTALLING RM1.44 BILLION, OF WHICH 92% WAS FROM NON-CONCESSION BUSINESSES AND 60% FROM INTERNATIONAL BUSINESSES STATEMENT MD/CEO’S in all four of our business segments, totalling RM1.44 billion, of which 92% were from non-concession businesses and 60% from international businesses. These demonstrate our resilience and the ability to break into new markets as we expand our support services, technology and digital-based offerings while continuing to focus on operational and service delivery excellence. Our Healthcare Support division has been playing a pivotal role in supporting national COVID-19 recovery efforts across the region, serving over 300 hospitals in Malaysia, Singapore, Taiwan and India. Despite the macroeconomic uncertainties, higher operational costs exacerbated by the pandemic and ANNUAL REPORT 2020 39 1 2 3 4 5 6 7 8