2020 UEM Edgenta Annual Report

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. HILLARY CHUA PEI SUM Chief Financial O cer 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. Analysis of Financial Performance FY2020 FY2019 Variance Group RM’mil RM’mil RM’mil % Revenue 2.028.7 2,411.2 (382.5) (15.9) EBITDA 131.6 325.1 (193.5) (59.5) PBT 46.9 245.0 (198.1) (80.8) PAT 14.4 188.0 (173.6) (92.4) Normalised EBITDA* 181.6 302.1 (120.5) (39.9) Normalised PBT* 96.9 222.0 (125.1) (56.3) Normalised PAT* 64.4 165.0 (100.6) (61.0) * Normalised EBITDA, PBT and PAT: FY2020: Excluding write-down of unsold property inventories (mixed residential developments by Faber Development Holdings amounting to RM50.0 million. FY2019: Excluding profit from final payment settlement from Abu Dhabi project, offset by provision and write-back taken during the year. REVIEW CFO’S UEM EDGENTA BERHAD 44 Key Messages