2020 UEM Edgenta Annual Report

OUR TRANSFORMATION PILLARS TOWARDS ACHIEVING EDGENTA OF THE FUTURE 2025 GOALS RM100 million Operational Cost Savings Over 5 Years Edgenta Cloud I Mall I Marketplace Edgenta Technology Solutions SEA, Middle East and Europe FEMS BEMS Tech-enabled Solutions UEM Edgenta’s core businesses in asset management and infrastructure solutions have provided a steady stream of recurring revenues, enabling the Company to distribute RM850 million in dividends over the past seven years. While this is a testament that our fundamentals remain intact, operating in the new normal requires us to extract more value from our core businesses while diversifying from a traditional concession-focused to a more commercial client base. Through rapid digitalisation and consolidation of cost structures, we aim to save RM100 million over the next five years. This will be achieved through four key areas: streamlining of business structures, tax and operating efficiency, optimising procurement spend, digitalisation and mechanisation. As UEM Edgenta evolves to a Technology-Enabled Solutions Company by 2025, we aim to digitalise all aspects of our business. This will be spearheaded by our dedicated technology business unit, Edgenta NXT, which will serve to not only digitalise our existing business units, but to also disrupt traditional delivery models as we transition to an innovative, asset-light, scalable, and differentiated business model. The company has over 20 technology- enabled solutions ready for productisation that will be rolled out over the next 12 months including QuickMed – a digital healthcare platform and RAMS – an infrastructure asset management technology platform through our own digital ecosystem platform that will be enabled through Edgenta Cloud. In an effort to swiftly scale up our technology solutions, we aim to establish partnerships with international clients and peers as we deploy our solutions to achieve greater market access. UEM Edgenta’s current regional footprint spreads across six countries with over 60% of revenue derived from our increasingly saturated domestic market. Our future growth plans will see us expanding into more commercial businesses in high growth markets in three key regions – South East Asia, the Middle East and Europe. We aim to grow into larger addressable markets such as Saudi Arabia and Indonesia, move up the value chain in the existing markets of Singapore and Taiwan while stepping into new horizons in Sarawak, our next primary domestic focus area. Our endeavours will involve both inorganic and organic growth strategies besides establishing partnerships with locally established players. UEM Edgenta has made a strong headway into Sarawak though our Pan Malaysia strategy with over RM1.4 billion worth of projects on hand and an addressable infrastructure market of RM105 billion over the next 10 years. Our infrastructure arm led by Opus Consultants and Edgenta PROPEL Berhad in Sarawak and Sabah, respectively, will also look to participate in projects in neighbouring Kalimantan as Indonesia relocates its new administrative capital from Jakarta by 2025. In established markets of Singapore and Taiwan, where we have a strong market share in providing soft services for government hospitals, we will strive to move up the IFM value chain into FEMS and BEMS. Through acquiring an ME-15 licence in Singapore, we aim to compete in larger government tenders. EXTRACT MORE VALUE FROM CORE BUSINESSES ENHANCE PRODUCT AND TECHNOLOGY PROPOSITION EXPAND OUR FOOTPRINT AND DEEPEN SOLUTIONS BASE ANNUAL REPORT 2020 71 1 2 3 4 5 6 7 8