2020 UEM Edgenta Annual Report

FINANCIAL PERFORMANCE ‘20 ‘19 549.1 915.6 38.7 138.5 ‘20 ‘19 REVENUE PBT (RM mil) (RM mil) Revenue from Infrastructure Services decreased by 40.0% due to the suspension and deferment of works, owing to reduced traffic volume as a result of the MCO. PBT also contracted, along with revenue, despite the division winning new contracts including that for the maintenance of the Sarawak State Road and pavement work packages for the Pan Borneo Sarawak Highway, as well as renewal of state road maintenance for JKR Selangor with an additional district. KEY CHALLENGES & MITIGATING ACTIONS Key Challenges Mitigating Actions • Proactive measures in managing cost • Continue delivering on existing work in hand, as well as undertaking operational excellence initiatives to improve efficiency • Readiness to actively pursue selective tenders and submit unsolicited proposals to clients • Deferment of non-critical works and project delays due to the MCO and CMCO, impacting both top line and bottom line • Announcement of 18% toll reduction, initiating programmes to drive down costs • Slower market environment for new projects KEY ACHIEVEMENTS OUTLOOK 2 ND PLACE WIN FOR THE SENAWANG (NORTHBOUND) REST & SERVICE AREA WASHROOMS UNDER THE ‘PUBLIC LAY-BYS’ CATEGORY AT THE NATIONAL- LEVEL WORLD TOILET DAY 2020 CELEBRATION organised by the Malaysian Ministry of Housing and Local Government. BAGGED ‘5 STAR’ AWARDS AT THE ANNUAL PRODUCTIVITY AND INNOVATION CONFERENCE 2020 organised virtually by the Malaysia Productivity Corporation. Infrastructure Services teams from Northern, Southern and Central Regions RECEIVED THREE GOLD CLASS 1 AWARDS at MSOSH OSH Awards 2019. • A s the operating environment recovers in the new normal, Infrastructure Services will undertake operational efficiency initiatives to preserve profit margins by increasing the application of digital technology solutions such as RAMS, as well as productise the innovative solutions developed by the Pavement Research Centre • RAMS is integrated with our CnC which, is capable of providing holistic and integrated solutions for Infrastructure Services • While protecting and preserving current contracts, Infrastructure Services seeks to expand into other states in West Malaysia as it deepens its road works competencies. It will also explore long-term growth opportunities in East Malaysia and make inroads into new adjacent sectors such as water, waste water and rail • The business seeks to expand its value chain by undertaking road work projects with the Government. Towards enhancing this partnership, it is developing relevant skills and capabilities with an increased focus on innovation, especially in pavement materials and road solutions • Infrastructure services is also exploring strategic partnerships and venturing into new sectors to broaden its income stream 1 2 3 4 5 6 7 8 ANNUAL REPORT 2020 85