2020 UEM Edgenta Annual Report

2020 2019 Variance RM’mil RM’mil RM’mil % Total Assets 2,807.4 2,912.8 (105.4) (3.6) Property, plant and equipment 193.7 212.0 (18.3) (8.6) Right-of-use assets 40.8 30.9 9.9 32.1 Intangible assets 718.3 734.3 (16.0) (2.2) Inventories 77.9 133.8 (55.9) (41.8) Trade and other receivables 580.0 672.7 (92.7) (13.8) Contract-related assets 361.1 379.9 (18.8) (4.9) Short-term investment 11.8 62.5 (50.7) (81.1) Cash, bank balances and deposits 678.0 558.5 119.5 21.4 Total Liabilities 1,298.1 1,328.4 (30.3) (2.3) Borrowings 483.2 519.1 (35.9) (6.9) Trade and other payables 670.6 673.6 (3.0) (0.4) Lease liabilities 37.6 30.3 7.3 24.0 Contract liabilities 30.7 21.1 9.6 45.3 Total Equity 1,509.3 1,584.4 (75.1) (4.7) Shareholder’s fund 1,500.7 1,572.0 (71.3) (4.5) Non-controlling interest 8.6 12.4 (3.8) (30.7) Net asset per share (RM) 1.80 1.89 (0.1) (4.5) Gross gearing ratio (times) 0.32 0.33 (0.1) (2.3) Net cash position (RM’mil) 206.6 101.9 104.7 102.7 Analysis of Financial Position Despite the challenging market, we managed to strengthen our cash position, our total cash, bank balance and short-term investments increased by 11.1% Y-o-Y to RM689.8 million in FY2020. Our main focus was on cash flow management via improved collections from customers and optimised payment to suppliers. Despite the shortfall in revenue and PAT, we were able to maintain net operating cash flows of RM220.9 million; almost similar to prior year’s level. As a result, we ended the year with a healthy net cash balance, our net cash position doubled to RM206.6 million in FY2020. Our gross gearing ratio continued to be low at 0.32 times, as we focused on strengthening our working capital and optimising our capital structure, we pared down our borrowings by 6.9% to RM483.2 million. Our low gearing, strong financial position and healthy cash balance provides us ample headroom to navigate any short-term volatility in the new norm while maintaining the capacity to leverage to fund our future growth. NET ASSET PER SHARE RM1.80 ( 4.5%) GROSS GEARING RATIO 0.32X ( 2.3%) NET CASH POSITION RM206.6 MILLION ( 102.7%) TOTAL CASH, BANK BALANCES, DEPOSITS AND SHORT-TERM INVESTMENTS RM689.8 MILLION ( 11.1%) UEM EDGENTA BERHAD 46 Key Messages CFO’S REVIEW