UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 MANAGEMENT DISCUSSION & ANALYSIS 45 44 Trend The global economy is beginning to recover, as containment measures are now replaced with relaxation measures. While some countries are taking a more gradual approach (e.g. Malaysia), there are those that have taken a more drastic and accelerated path in relaxing COVID-19 restrictions (e.g. Dubai, Kingdom of Saudi Arabia). Hence, post-pandemic recovery will likely be uneven across sectors and countries, depending on the infection rates, vaccination rates and the degree of openness in their economies Response • UEM Edgenta’s diversification strategy in terms of geographical and sector exposure has positioned us as a good proxy for post-pandemic economic recovery • Our financial and operating resilience is supported by the multispeed recovery in our operating markets, with faster recovery seen in Singapore and Taiwan. This is in line with our EoTF2025 footprint expansion strategy, through which international business contributed 40% to the Group revenue during FY2021 • Whilst COVID-19 has created uncertainties and resulted in cost escalation in operations, our exposure to a diversified base of sectors helped soften the blow to our Group business. This was demonstrated by our resilient financial performance, which charted 13% Y-o-Y revenue growth and 27% normalised PAT growth Uneven recovery across sectors and countries entering endemic phase MARKET TRENDS MARKET TRENDS New challenges and opportunities have emerged as the global economy recovers from the COVID-19 fallout. Besides the need to learn to adapt to the pandemic situation in the market, UEM Edgenta is making every effort to adapt and adjust to changing global trends to maintain its relevance and competitiveness across our core businesses in Healthcare Support, Property & Facility Solutions, Infrastructure Services, as well as Asset Consultancy. These trends are outlined below. Disruptions as opportunities to innovate Trend The pandemic has forced us to not only adapt to a confluence of disruptions, but also to innovate new ways of doing things and change our thinking to navigate through uncharted territory to achieve success Response • The execution of the third pillar of our EoTF2025 strategy - Enhance product and technology proposition - has accelerated UEM Edgenta’s digital transformation journey • Our proprietary technology solutions were launched during the year 2021, namely Edgenta NXT - digital solutions featuring tech-enabled and cloud-based products; and QuickMed – our B2B2C digital healthcare platform that transforms the delivery of and access to healthcare • Automation and mechanisation technologies have been deployed in our services delivery model, e.g. RAMS, UETrack™, MULAG Mechanised Grass Cutter • Our IoT-enabled solutions provide real-time data collection and analytics, enabling preventive maintenance and early detection of anomalies to manage clients’ assets more efficiently and effectively Adapting to the New Norm Trend In the state of endemicity, ubiquitous testing and integration of vaccine infrastructure with the healthcare system has become a norm. As we have gained a better understanding of the virus and its transmission, monitoring and care delivery systems will be able to trigger necessary actions to reduce the health burden of COVID-19 and contain the societal and economic impacts arising from outbreaks Response • Disease management protocols have transitioned to one where disease-surveillance metrics are tracked, enabling rapid interventions to be undertaken in response to local/ widespread outbreaks and expected seasonal fluctuations. Our Edgenta NXT platform continues to improve its digital capabilities that revolutionise pandemic management solutions, enabling seamless integration for users and providing actionable insights for authorities through our platform. Beyond the pandemic, our vision is to be able to apply future-proof technology solutions that support sustainable urbanisation and the wellbeing of the community, shaped by connectivity, mobility, resilience and sustainability • With the changing dynamics of the new environment, we are adopting a lean and fitfor-purpose delivery model by focusing on building up capabilities through technology, digitalisation, and innovation. This enables us to remain agile and adaptable in responding to our clients’ business needs and market demands Trend The Group is stepping up our efforts in ESG-related matters, as we recognise the role of ESG in developing and sustaining our competitive advantage Response • ESG is a market-driven, supplier-driven, customer-driven and investordriven agenda that forms the core value of our business decisions and operations • Our Sustainability Solutions, namely Green Building Audits and Energy Performance Contracting Services form the building blocks of climatesmart infrastructure in supporting the ESG journey of our clients and the country’s goal of reaching net zero as early as 2050 Sustainability and ESG as a competitive advantage RESILIENCY IN MARKETS Bloomberg Resilience Score 1. U.A.E 2. Saudi Arabia 5. Singapore 8. Taiwan 11. Norway 12. U.K. 23. U.S.A 26. Thailand 27. Malaysia 36. France (Source: Bloomberg) KSA, Dubai, Singapore, Taiwan are amongst the most resilience countries according to Bloomberg’s survey on Covid resilience
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