2020 UEM Edgenta Annual Report

The Healthcare Support division reported higher year-on-year revenue growth supported by key contract wins from both commercial and concession businesses valued at RM1.0 billion representing 71% of all new contracts for the year. compressed margins, the division reported higher year-on-year revenue growth supported by key contract wins from both commercial and concession businesses valued at RM1.0 billion representing 71% of all new contracts for the year. Notable wins include Biomedical Engineering Maintenance Services (“BEMS”) contracts for the Sarawak General Hospital in Malaysia, Replacement Through Maintenance (“RTM”) contracts for the MoH Malaysia, and four soft services contracts, mainly in public and environmental health- related operations, for Sengkang General Hospital and Changi General Hospital in Singapore, and for Cheng Hsin General Hospital and Yang Ming University Hospital in Taiwan. These contributed to the division’s revenue of RM1.23 billion and Profit Before Tax (“PBT”) of RM97.3 million. The Group’s Property & Facility Solutions division registered a decrease in revenue at RM149.2 million and PBT of RM12.5 million, mainly due to the completion of township management contracts and projects in Dubai as well as the progression of Energy Performance Contract (“EPC”) projects from the installation phase to the maintenance phase. Restrictions imposed during the pandemic also saw a reduction in facilities management works because of project delays and reprioritisation of expenditure by businesses. On a positive note, the division gained traction during the year by securing new facilities management and maintenance services contracts for CIMB Bank branches and Universiti Teknologi Petronas’ District Cooling Plant in Malaysia. Revenue from our Infrastructure Services fell during the year due to the suspension and deferment of work owing to reduced traffic volume from recurring Movement Control Order restrictions and curbs on inter-state travel. The division, which currently manages the maintenance of 3,500 km of highways and state roads in Malaysia and Indonesia, recorded a respectable revenue of RM549.1 million. Despite new contract wins for the maintenance of the Sarawak State Road and pavement work packages for the Pan Borneo Sarawak Highway, as well as a pavement contract for Selangor Public Works Department (“JKR”), PBT contracted to RM38.7 million. Reprioritisation and deferment in government expenditure for big infrastructure projects, as well as reduced work packages for Network Maintenance Management and Pan Borneo Sabah, led to our Asset Consultancy division registering lower revenue of RM88.1 million. In tandem with the decrease in revenue and lower utilisation of project employees, the division’s PBT contracted to RM8.2 million. Nevertheless, the division won contracts to carry out project management consultancy for the Sarawak Coastal Road Network Phases 1 & 2 and the Second Trunk Road Phase 2. It also acquired an additional scope of service for the Pan Borneo Sarawak Highway Phase 2 and consultancy expertise for Pavement Structural Overlay works on the North- South Expressway. OUR CONTRIBUTIONS TO PANDEMIC RECOVERY EFFORTS In a proactive move to support the Government’s efforts to contain the virus as well as to stimulate economic recovery, we established various healthcare infrastructure and digital solutions during the year. Our National Crisis Preparedness and Response Centre (“CPRC”) is a cloud- based real-time information system that connects all hospitals and quarantine centres that care for COVID-19 patients nationwide. The National CPRC system is used to collect patient details and clinical data; produce reports and statistics; manage capacity utilisation across the hospitals; and facilitate the management of resources such as personal protective equipment, manpower and laboratories. UEM EDGENTA BERHAD 40 Key Messages MD/CEO’S STATEMENT