My EG Services Berhad Annual Report 2020

ANNUAL REPORT 2020 53 OUR VALUE CREATION PROCESS AND BUSINESS MODEL Financial Values Created Revenue RM530.46 million Profit before tax: RM268.96 million Cash and cash equivalents: RM234.61 million Social and Relationship Values created Greater understanding among key government and business stakeholders on our business model and prospects going forward. Greater investor analyst and investor interest in our company. Sharing of resources to achieve a common goal in a business value chain. Intellectual Values Created Introduction of MyMotor, MyAssist, as well as an online vehicle auction platform, and most recently the online renewal of motorcycle insurance and road tax as well as CDL, further cements MYEG as a one-stop centre that covers the needs of drivers and motorists. This includes providing a large range of new and used vehicles to choose from and providing financial assistance via multiple vehicle financing options as roadside vehicle assistance packages. All of these can be accessed via MYEG – a single website solution. Other benefits (related and unrelated) created via the business model include: z Enabling foreign worker permit and insurance renewal. z Road tax renewal in one click and delivery of road tax to the preferred destination. z Varieties of IT related services and products that are attractive to investors. z Positive technology investment that is expected to perform well in the future. z Enhancing road safety and facilitating more effective regulation and enforcement. z Provision of conventional and islamic finance services z Launch of iPayEasy Wallet Manufactured Outcomes Improved efficiency of our one-stop, door-to-door, service experience for customers. Expansion of services to more customers nationwide. Further strengthening our value proposition as a one-stop service provider and the go-to provider for a wide range of necessary and important services. Promote use and proliferation of e-services in Malaysia, including e-government services Intellectual Outcomes Provides convenience to customers saving time, travel and contributing to reduced environmental footprint across the customer value chain. Further enhancement of our unique business model and value proposition. The ability to retain our market leadership position and to continue setting the pace for the industry. The ability to operate as a market disruptor and leader through new technology and new offerings. Social and Relationship Outcomes Investment in Ximmerse for AR/ VR technology and HiSense Technology. Invested in blockchain project by collaborating with Universiti Malaya (“ UM ”) and Universiti Utara Malaysia (“ UUM ”) in exploring opportunities, to promote and foster the development of academic and research projects in blockchain. Cartenz in Indonesia MYEG Philippines in the Philippines JV in Bangladesh Concession agreement extension with the Malaysian government for the provision of the electronic delivery of vehicle registration, driver and vehicle licensing services and payment of summon services OUTPUTS OUTCOMES Manufactured Values Created Online renewal of motorcycle insurance and road tax as well as CDL. MySafeTravel MyEGuard in the Philippines Jejak in Indonesia One-stop COVID-19 portal NAK BELI Flexi Value Plan COVID-19 test kit in Malaysia and the Philippines Roll-out of tax monitoring system to 30 more cities in Indonesia Cooperation with Zhifei in obtaining Malaysian Halal certification from JAKIM for the COVID-19 vaccine. Partnership between I-PAY MYEG in the Philippines and FVSC to develop a mobile application for the booking and payment of COVID-19 tests, along with the issuance of a digital QR code system as proof of testing. Agency agreement on the facilitation of the collection of dues and/or payments relating to COVID-19 detection tests and / or quarantine station charges issued by the Malaysian government to the public. Data sharing collaboration with the Labour Department. Collaboration with JSC for the provision and implementation of a contact tracing application through Cartenz. Human Outcomes 2,482 staff strength Low attrition rate Development of highly-skilled knowledge-based workers to drive Malaysia’s digital economy. Human Values Created z Competent employees z Increase in employee engagement z Long service employee z Growth in workforce Financial Outcomes Dividend payout of 2.2 sen per share for FY2020 subject to shareholders’ approval. RM2.57 million paid in income tax Total assets of RM1.42 billion RM570.19 million distributable retained profits RM85.71 million paid in wages RM9.43 million paid in statutory contributions RM20.54 million paid to financiers in repayment of term loans and lease liabilities RM165.52 million in total borrowings Net cash position for net gearing ratio OUR VALUE CREATION PROCCESS (CONT’D) OUR BUSINESS