UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 KEY MESSAGES 29 28 MD/CEO’S STATEMENT MD/CEO’S STATEMENT Could you share further on how digitalisation has helped the Group’s business progress as well as the developments that took place in this area in 2021? Q5 Could you please describe what the future holds for UEM Edgenta? What can stakeholders expect going forward into 2022 and beyond? Q6 As we emerge from the pandemic and move into the endemic stage, our prospects continue to be positive as can be seen in the progress we have made in our journey to being a Technology-Enabled Solutions Company with a focus on healthcare by 2025. However, there remain some downside risks due to the potential emergence of new COVID-19 variants that may once again disrupt the economic recovery. Going forward, our growth is predicated on the EoTF2025 strategy, in which we have already seen good traction, especially in the areas of digitalisation and the diversification of geographical and revenue streams. We expect our international business to account for 70% of our revenue by the end of EoTF2025 as we take advantage of the opportunities present in a market that, in our view, is ready for the solutions that we can provide. From the COVID-19 perspective, our pandemic management solutions have been honed through our experience in assisting the Malaysian Government and puts us in a strong position to help countries that are at different stages of their recovery paths. From the asset management perspective, many asset owners are now reimagining the way that companies like UEM Edgenta can support them. With our strong technological foundations and new platforms, we are wellprepared to meet their evolving needs. In the medium term, the Company will remain agile and resilient as it pursues its growth strategy with a focus on new products and solutions, deepening our existing footprints and expanding into new geographies such as East Malaysia and Saudi Arabia. Notwithstanding this, I believe our opportunities are inextricably linked to the needs of the world and this is what will drive our future direction. Although our business strategies have been calibrated to deliver sustainable returns for our shareholders, our responsibility does not end there. As a global Company born in Malaysia, we must also be able to provide solutions that are global in nature. This is one of the reasons why ESG is incredibly important to us, as to how we are perceived by investors and the international community will determine our relevance in the global market. While we have certainly been embracing ESG practices over the years, we also acknowledge that our ESG performance goes beyond what we do. It is also mission critical that we describe what we do to the market in more direct terms to ensure that we are understood correctly by the public and our investors. By embedding this approach into our DNA, we then become far more relevant to a corporate landscape that is constantly pushing for corporations to share more balanced and insightful disclosures. Going forward, our growth is predicated on the EoTF2025 strategy, in which we have already seen good traction, especially in the areas of digitalisation and the diversification of geographical and revenue streams. Our new offering, Edgenta NXT, which we launched in 2021, addresses this. As a cloud-enabled, SaaS digital solution, this digital ecosystem offers our customers in building and asset management, highways and healthcare, an access to a range of solutions that will connect, optimise and streamline their operations. Through Edgenta NXT, we have already made some headway in 2021, launching QuickMed in August 2021 as both a pandemic and clinic management system where it has tracked the quarantine, assessment and vaccination status of more than 87,000 individuals as of February 2022. We also won the contract to design and build an Integrated Building Command Centre for the Kuala Lumpur City Centre buildings which, through Edgenta NXT technology, integrates analytics with IoT devices to drive building automation. Digitalisation has always been an important enabler for UEM Edgenta. It not only allows our people to work more efficiently but also enables cost savings and more importantly, it is a critical tool in the creation of new revenue streams for the Group. I challenged our people to think about this, premised on the basic idea of fundamentally tying our business with technology and therefore enable us to capture new business in entirely new verticals or by disrupting existing markets. SYAHRUNIZAM SAMSUDIN Managing Director/Chief Executive Officer These developments, which are under our broader EoTF2025 strategy, signify our intent to explore new business avenues, transition into technology centric businesses, accelerate our growth and fuel rapid international expansion. Considering the uncertain business landscape, it is inevitable for a traditional assets and infrastructure operators such as UEM Edgenta to explore innovative ventures to maintain our competitive advantage. Being technology-led enables us to shift our business model from one that is headcount-based to one that is more performance-based. The active adoption of digital technology is also important for us to stay relevant and sustainable. Young talents today are generally attracted to tech-related careers. While UEM Edgenta’s legacy business may often be perceived as staid and dull, we believe that our newly established technology platform, Edgenta NXT, changes this narrative as it has been designed to emulate how technology startups operate. It is a platform for the next generation to test their mettle and be part of our future, and therefore an important talent succession strategy.
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