2020 UEM Edgenta Annual Report

During the MCO and CMCO period, travel restrictions and border closures had drastically affected interstate travel. The reduction in traffic volume, has led to lower revenue and budgetary constraints for asset owners (our customers) which in-turn led to deferment of award of work for major expressways. The reprioritising and deferment in Government spend for several key government projects in the infrastructure space has also impacted the award of work packages. These resulted in lower revenue year-on-year (“Y-o-Y”) amounting to RM366.5 million and RM43.8 million from Infrastructure Services and Asset Consultancy division, respectively. Nevertheless, the weakness in revenue were partially mitigated by increased revenue from Healthcare Support division of RM101.2 million (or 8.9%), particularly from the mega tender in Singapore for provision of hospital support services and new pandemic business opportunities in Singapore and Taiwan. As a result, total Group revenue decreased by RM382.5 million (or 15.9%) Y-o-Y from RM2,411.2 million to RM2,028.7 million. Despite our best effort to manage cost in these challenging time, we still see higher operating costs primarily in the Healthcare Support division. Incremental COVID-19 cost for personal protective equipment, hospital staff overtime and sanitisation cost contributed to higher cost of sales. In addition, the gazettement of Minimum Wage Order 2020 which took effective in February 2020, also weighed down our margin to some extent. Lower revenue, coupled with higher cost resulted in a decrease in EBITDA and PAT by RM193.5 million and RM173.6 million respectively. In FY2020 also the Group recognised write-down of unsold property inventories amounting to RM50.0 million. This was a prudent measure taken by the management, as part of our on-going efforts to streamline non-core businesses and prioritise growth for key businesses such as Healthcare Support and Infrastructure Services. Excluding this one-off non-cash write-down, the Group’s normalised PAT was RM64.4 million, 61.0% less than the RM165.0 million recorded in FY2019. 14.4 (7%) 33.3 (10%) 154.2 (49%) 50.7 (24%) 13.5 (4%) 9.3 (5%) EBITDA (RM’million) 134.7 (64%) 115.6 (37%) 549.1 (27%) 915.6 (39%) 149.2 (8%) 192.2 (8%) 131.9 (5%) 1,233.4 (61%) 1,132.2 (48%) REVENUE (RM’million) 88.1 (4%) 23.9(10%) 8.9 (7%) 26.1 (21%) 110.6 (48%) 10.6 (5%) PAT (RM’million) 84.4 (37%) 84.1 (67%) 6.4 (5%) Healthcare Support Infrastructure Services Property & Facility Solutions Asset Consultancy FY2020 FY2019 ANNUAL REPORT 2020 45 1 2 3 4 5 6 7 8