FUTURE READY
About This Report IN A FAST-EVOLVING TECHNOLOGICAL AND INDUSTRY LANDSCAPE, INTEGRATED THINKING AND ACTION HAVE NEVER BEEN MORE IMPORTANT At UEM Edgenta, we unite the key considerations of sustainability, efficiency and technology to serve our vision: Optimising Assets to Improve Lives. Armed with this purposeful approach, we are proud to have made continuous progress against our objectives in ways that deliver shared value for our business, stakeholders, local communities and the environment. On this note, we are pleased to present our Integrated Annual Report for 2024, a detailed account of the value we have created during the past year and the strategies and initiatives we have employed to achieve our targets. This report, prepared in accordance with integrated reporting principles, presents the Group’s financial performance for the year 2024, alongside the strategic initiatives we have undertaken to strengthen the competitiveness and sustainability of our business and operations. We have highlighted our growth in international markets, the success of our cost optimisation programme focused on business and operational excellence, and technology improvements aimed at enhancing our service and product offerings. Collectively, these measures have improved operational efficiency, supported market expansion, and contributed to enhanced shareholder value. SCOPE OF THE REPORT This report covers the activities of UEM Edgenta and its subsidiaries, joint operations, joint ventures and associates for the period of 1 January 2024 to 31 December 2024 (“FY2024”) unless otherwise stated. Presented within this report is our Sustainability Statement 2024 (“statement”), the eighth that we have published about our ongoing journey towards greater sustainability. This statement highlights major sustainability initiatives and commitments undertaken in FY2024 and discloses our overall performance in relation to the sustainability material matters we have identified. The reporting period of the statement is the same as that of the full report. Both the report and statement encompass our operations in Malaysia and our other geographical locations: Singapore, Taiwan, Indonesia, United Arab Emirates (“UAE”) and the Kingdom of Saudi Arabia (“KSA”). OUR TARGETED READERS In addition to our financial performance, this report also showcases the value we have created and delivered to our stakeholders, highlighting our contributions to our clients, employees, regulators, local communities and the natural environment. REPORTING FRAMEWORKS This report has been prepared with reference to the following internationally recognised regulatory frameworks. Corporate Section • Companies Act 2016 • Bursa Malaysia Securities Berhad’s Main Market Listing Requirements • Malaysian Code on Corporate Governance • Bursa Malaysia’s Corporate Governance Guide (4th edition) • Bursa Malaysia’s MD&A Disclosure Guide • Bursa Malaysia’s Sustainability Reporting Guide (3rd edition) • International Integrated Reporting Framework (“International <IR> Framework”) • The Global Reporting Initiative (“GRI”) Standards • The United Nations’ Sustainable Development Goals (“UN SDGs”) • Global Reporting Initiative (GRI) Standards • FTSE4Good indicators • International Energy Agency (IEA) Global Pathway • ISSB standards Financial Section • Bursa Malaysia Securities Berhad’s Main Market Listing Requirements • Malaysian Financial Reporting Standards (“MFRS”) • International Financial Reporting Standards (“IFRS”) • Companies Act 2016 in Malaysia
NAVIGATING OUR REPORT MATERIALITY STATEMENT This report is guided by matters that are material to targeted readers. Material Matters are identified, prioritised and validated via a three-step materiality assessment. This report focuses on the matters that we consider to be the most material to our core purpose and our capacity to create value. The directors, in consultation with management, identify the issues that could have the most significant impact on the Group’s ability to create sustainable value for its stakeholders. To determine these material issues, the directors consider internal and external factors, including the Group’s strategy; our main stakeholders’ needs, expectations and concerns; and the economic and trading environment of the Group. These material issues are reviewed annually during the Board’s strategic planning process. FORWARD-LOOKING STATEMENTS This report contains statements based on the forecasted future performance of the Group. These predictions are based on our current understanding of our circumstances, which may change with time. Many factors that we have not foreseen could cause the actual results to be significantly different from what has been predicted and presented here. INDEPENDENT COMBINED ASSURANCE STATEMENT We use a coordinated assurance model to assess and assure the various aspects of our business operations, including elements of external reporting. These assurances are provided by management and the Board, internal audit and independent external service providers, and providers of limited assurance on selected sustainability information, including rating agencies, providers of limited assurance on our application of the Amended FSC and the Group’s BBBEE status. The credibility of this report is supported by our Group’s well-established governance practices and the independent verification provided by Ernst & Young PLT, our auditors for financial information. UEM Edgenta’s Internal Audit department has conducted a limited assurance review of this report, covering seven key sustainability matters: Anti-Corruption, Community/Society, Diversity, Health and Safety, Labour Practices and Standards, Supply Chain Management, and Water, marking an expansion from the four areas assessed in the previous year. As we advance in our reporting practices, we aim to obtain external assurance and further broaden the audit’s scope. Financial Plants and Machinery Natural Human Social & Relationship Resource Intellectual Capitals Material Matters Supply Chain Management Employment Culture Business Ethics M1 M4 M8 Economic Development Occupational Health & Safety Local Community M3 M7 M11 Environmental Management Human Rights Assessment M6 M10 Climate Change & Energy Customer Satisfaction Innovation and Technologybased Operational Excellence M5 M2 M9 Stakeholders Board of Directors and Employees S1 Government and Regulators, Industry and Business Associates S4 S2 Clients and Partners S3 Shareholders and Investors S5 Media S7 Community S6 Supply Chain Partners Risks and Mitigation Strategic Risk R1 Compliance Risk R4 Operational Risk R2 People Risk R5 Financial Risk R3 Cybersecurity Risk R6 ESG Risk R7 UN SDGs Our Group’s sustainability efforts are aligned to the following UN SDGs, which were adopted and have been adhered to since FY2021. We have utilised icons to represent our capitals, material matters, stakeholders, and key risks throughout this report. YOUR FEEDBACK We welcome your feedback. If you have any enquiries concerning this report, please get in touch with: Head, Corporate Communications Level 16, Menara UEM, Tower 1, Avenue 7 The Horizon, Bangsar South City, No. 8, Jalan Kerinchi 59200 Kuala Lumpur Tel : +603 2725 6688 Fax : +603 2711 8057 E-mail : communications@edgenta.com ON THE WEB For more about this report and UEM Edgenta, please visit our corporate website at www.uemedgenta.com Navigation Icons Follow this icon to the relevant page in our report for more information.
Contents OVERVIEW OF UEM EDGENTA Vision | Mission | Core Values | What We Do 04 2024 Performance Snapshots 06 • Business Highlights • Financial Highlights • Sustainability Highlights • Awards & Recognitions Our Corporate Structure 10 Our Presence 12 What We Do 14 • Healthcare Solutions • Property & Facility Solutions • Infrastructure Services • Asset Consultancy What Differentiates Us: Our Strengths 18 Edgenta NXT 22 2024 Key Significant Events 23 LEADERSHIP INSIGHTS Chairman’s Statement 24 MD/CEO’s Statement 31 CFO’s Statement 36 HOW WE CREATE VALUE Our Integrated Approach to Value Creation 42 Value Creation Business Model 44 Stakeholder Engagement & Value Creation 46 How We Distribute Value Created 51 MANAGEMENT DISCUSSION AND ANALYSIS A. Strategic Review Our Material Matters 52 Operating Environment & Market Trends 59 Key Market Trends 63 Key Risks and Mitigation 67 Edgenta of the Future 2025 (EoTF2025) 72 B. Financial Performance 5-Year Group Financial Summary 76 5-Year Group Financial Highlights 77 Simplified Statements of Financial Position 79 Group Segmental Analysis 80 Statement of Value Added 81 Distribution of Value Added 81 Group Quarterly Financial Performance 82 Financial Calendar 83 Investor Relations 84 C. Business Review Healthcare Solutions 86 Property & Facility Solutions 91 Asset Consultancy 96 Infrastructure Services 101 ENHANCING VALUE THROUGH SUSTAINABILITY Sustainability at UEM Edgenta 107 Sustainable Economic Growth 130 Minimising Environmental Impact 144 Social Value Creation 164 GOVERNANCE Corporate Information 201 Board of Directors 202 Board of Directors’ Profile 204 Company Secretary’s Profile 209 Executive Leadership 210 Executive Leadership’s Profile 212 Organisation Structure 222 Corporate Governance Overview Statement 224 Additional Compliance Information 241 Audit Committee Report 242 Statement on Risk Management and Internal Control 245 Corporate Integrity and Ethical Business Conduct 253 Approaching the Financial Statements 260 FINANCIAL STATEMENTS Directors’ Responsibility Statement 263 Directors’ Report 264 Statement by Directors 270 Statutory Declaration 270 Independent Auditors’ Report 271 Statements of Comprehensive Income 276 Statements of Financial Position 278 Statements of Changes In Equity 281 Statements of Cash Flows 283 Notes to the Financial Statements 285 ADDITIONAL INFORMATION Analysis of Shareholdings 381 Properties Held by the Group 384 Recurrent Related Party Transactions 386 Sustainability Performance Table 400 GRI Content Index 403 FTSE4Good Content Index 406 Statement of Assurance 419 Glossary 420 Notice of the 62nd Annual General Meeting 422 Statement Accompanying Notice of 62nd Annual General Meeting 425 • Proxy Form ABOUT THIS REPORT 01 COVER RATIONALE 03
In an era where technological breakthroughs are reshaping industries and redefining possibilities, UEM Edgenta is harnessing these advancements to drive sustainable growth and optimise resources for a better tomorrow. Guided by our Edgenta of the Future 2025; (EoTF2025) strategy, we envision a future where we stand as a fully technology-enabled solutions provider, focused on three core pillars: To Expand footprint and deepen our solutions base, To Extract value from core businesses and To Enhance product and technology proposition. These pillars are the foundation of our journey toward creating a tech-enabled solutions enabled company that adapts to the evolving needs of clients and stakeholders. By embedding cutting-edge technology into our operations, we aim to foster creativity, forward-thinking, and environmental responsibility. Our 2024 Integrated Annual Report will showcase the impactful strides we’re making toward this vision, with highlights on our sustainability initiatives, innovations, and our steadfast commitment to meeting global standards. Together, these efforts embody our dedication towards empowering sustainability through innovation, building resilience and readiness for the years ahead. WE ARE DELIGHTED TO UNVEIL UEM EDGENTA'S INTEGRATED ANNUAL REPORT FOR 2024 Integrated Annual Report 2024 Cover Rationale
Overview of UEM Edgenta VISION MISSION Our services, commitment to smarter thinking and improved solutions place us at the forefront of the industry We create opportunities for clients and assets that positively influence society OUR VALUES we prepare for tomorrow’s challenges, today we imagine new ways to deliver better work we treat our colleagues & stakeholders with respect we solve challenges to deliver results we are guided by integrity to build trust Optimising Assets to Improve Lives. We stand by our FIRST core values, which is the Edgenta Way of expressing our beliefs and principles. FIRST is our guiding philosophy in everything that we do, especially with internal and external clients as well as stakeholders. It defines our organisation’s personality, dedication and culture. UEM EDGENTA BERHAD 04 Integrated Annual Report 2024
As a leading Asset Management and Infrastructure Solutions provider, we deliver innovative, technology-driven solutions that create lasting value for our clients across the entire asset lifecycle. Our end-to-end services – including consultancy, procurement, construction planning, operations, maintenance, optimisation, rehabilitation, and upgrades – ensure seamless asset performance and reliability. These solutions are rooted in our commitment to Environmental, Social, and Governance (“ESG”) principles and the Edgenta Way, our pledge to consistently exceed industry standards while putting safety and well-being first. With a presence across Malaysia, Singapore, Taiwan, Indonesia, United Arab Emirates (“UAE”), and the Kingdom of Saudi Arabia (“KSA”), we are shaping the future of asset management on the regional stage, with ambitions to extend our reach further still in the global arena. WHAT WE DO RM3.0* billion Revenue RM1.6* billion Shareholders’ Funds RM3.0* billion Total Assets We are present in 6 Countries Malaysia, Singapore, Taiwan, Indonesia, United Arab Emirates, the Kingdom of Saudi Arabia * As at 31 December 2024 and for the financial year then ended. 05 OVERVIEW OF UEM EDGENTA
Business Highlights In FY2024, we continued to make firm progress against financial, operational and ESG targets, advancing sustainable value creation across our business. Listed in Fortune Southeast Asia 500 and ranked among the top 10 in Malaysia for facilities management Acquired KAIZEN Group, a premier property management company in UAE Won new contracts through OPUS Energy for renewable energy and energy efficiency projects RM8.7 billion order book and RM2.8 billion new wins as of December 2024 Achieved international wins that accounted for 79% of new contracts, totalling RM2.8 billion as of 31 December 2024 Secured our first hospital contract in KSA at Olayan Long Term Acute Care & Rehab Hospital Matched new contracts in the first half of 2024 to the RM2.0 billion total secured in 2023 Furthered our ESG efforts by launching an energy efficiency zero-capex programme and commercialising recycled asphalt premix (RAP) for highways and road maintenance work 06 UEM EDGENTA BERHAD Integrated Annual Report 2024 2024 Performance Snapshots
Financial Highlights PBT million RM98.3 (2023: RM63.7 million) Total Assets million RM3,010.3 (2023: RM2,954.3 million) Shareholders’ Funds million RM1,607.4 (2023: RM1,619.3 million) Revenue million RM3,049.8 (2023: RM2,881.0 million) PAT million RM51.8 (2023: RM30.1 million) Net Assets per Share RM1.93 (2023: RM1.95) Normalised PAT million RM66.8 (2023: RM31.3 million) PATANCI million RM51.9 (2023: RM31.1 million) Dividend per Share sen 4.0 (2023: 2.0 sen) Gross Gearing Ratio 0.27x (2023: 0.30x) Total Cash, Bank Balances, Deposits & Short Term Investments million RM661.5 (2023: RM642.4 million) million Net Cash Position RM225.9 (2023: RM152.6 million) EBITDA million RM200.4 (2023: RM157.9 million) Earnings per Share Sen 6.2 (2023: 3.7 sen) OVERVIEW OF UEM EDGENTA 07
Sustainability Highlights Governance Number of confirmed corruption cases 0 Economic 99.60% Products and Services that are purchased locally Environment 4.72% reduction of Scope 1 and Scope 2 emissions Social 100% of business units obtained ISO 14001:2005 certification (Environmental Management Systems) 08 Integrated Annual Report 2024 UEM EDGENTA BERHAD 2024 Performance Snapshots
Awards and Recognitions Inaugural Integrity, Governance & Anti-Corruption Awards (AIGA) 2024 Bronze Award for Integrity & Good Governance 5-star rating from Dewan Bandaraya Kuala Lumpur (DBKL) for our Jalan Duta public toilet Best Occupational Health Services – Malaysia 2024 by International Business Magazine Malaysia Technology Excellence Award 2024 by Charlton Media Award Winner in the Facilities Management Technology – Building Services & Facilities category World CIO 200 Summit 2024 World CIO 200 Award – Malaysia Edition National Annual Corporate Report Awards (NACRA) 2024 Gold Winner for Companies with Less than RM2 Billion in Market Capitalisation ESG Positive Impact Awards (PIA) 2023 Gold Winner for Diversity, Equity & Inclusion FORTUNE Southeast Asia 500, 2024 Ranked 390 Best Infrastructure Services & Solutions Company – Malaysia 2024 by International Business Magazine 3-star awards from the Malaysian Green Technology & Climate Change Corporation (MGTC) for: • Hospital Selama, Perak • Hospital Bukit Mertajam, Pulau Pinang • Hospital Jitra, Kedah CIO100 ASEAN Award 2024 Award for Top Chief Information Officers (CIOs) & Technology Leaders in Southeast Asia and Hong Kong Malaysia Public Relations Awards (MPRA) 2024 Silver Award for Best Use of Social Media CORPORATE INFRASTRUCTURE HEALTHCARE EDGENTA NXT Top 10 of Malaysia Top 10 Facilities Management companies in Malaysia OVERVIEW OF UEM EDGENTA 09
Our Corporate Structure As at 20 March 2025 ASSET MANAGEMENT Concession Commercial Cermin Cahaya Sdn. Bhd. 40% 40% Edgenta (Singapore) Pte. Ltd. 100% 100% 100% Edgenta UEMS Sdn. Bhd. One Medicare Sdn. Bhd. Biomedix Solutions Sdn. Bhd. * Direct and indirect interest # Indirect interest via Edgenta (Singapore) Pte. Ltd. Healthcare Solutions Property & Facility Solutions UEM GROUP BERHAD KHAZANAH NASIONAL BERHAD 100% UEMS Solutions Pte. Ltd. (Singapore) 100% UEMS Services Pte. Ltd. (Singapore) 100% Edgenta UEMS Ltd. (Taiwan) 100% Edgenta UEMS SC Ltd. (Taiwan) Edgenta Healthcare Management Sdn. Bhd. 100% UEMS Pte. Ltd. (Singapore) 100% Edgenta Mediserve Sdn. Bhd.* 100% 100% Edgenta Healthtronics Sdn. Bhd. Edgenta Mediserve (Sabah) Sdn. Bhd. 100% 40% Sedafiat Sdn. Bhd. Edgenta Mediserve (Sarawak) Sdn. Bhd. 100% 100% 60% Kaizen A M S Property Supervision L.L.C.# (United Arab Emirates) Edgenta Facilities Sdn. Bhd. 100% Edgenta GreenTech Sdn. Bhd. 100% Edgenta Arabia Limited (Kingdom of Saudi Arabia) 100% Edgenta Energy Services Sdn. Bhd. 70% Other Subsidiary 100% Operon Middle East Limited 60% MEEM for Facilities Management Company (Kingdom of Saudi Arabia) Other Subsidiaries Edgenta Facilities Management Sdn. Bhd. 100% Other Subsidiaries 60% Kaizen Owner Association Management Services L.L.C.# (United Arab Emirates) UEM EDGENTA BERHAD 10 Integrated Annual Report 2024
Technology Innovation Asset Consultancy Infrastructure Services 100% Edgenta Academy Sdn. Bhd. 100% Edgenta International Investments L.L.C.# (United Arab Emirates) INFRASTRUCTURE SOLUTIONS 100% Opus International (M) Berhad Edgenta PROPEL Berhad 100% Edgenta Infrastructure Services Sdn. Bhd. 100% PT Edgenta PROPEL Indonesia 99.9% Other Subsidiaries Other Subsidiaries Others Other Subsidiaries Opus Group Berhad 100% Edgenta NXT Sdn. Bhd. 100% Opus Energy Sdn. Bhd. 100% Edgenta Environmental & Material Testing Sdn. Bhd. 100% 100% Opus Consultants (M) Sdn. Bhd. UEM EDGENTA BERHAD 69.14% Edgenta PROPEL (Sarawak) Sdn. Bhd. 49% 11 OVERVIEW OF UEM EDGENTA
Our unique expertise and distinctive focus on sustainable, technology-based solutions has carved us a niche in 6 countries, driving our journey to become a regional asset management powerhouse. We operate in Our Presence 17,948 TOTAL EMPLOYEES RM3.0 BILLION TOTAL REVENUE RM3.0 BILLION TOTAL REVENUE Malaysia Operations Local Hire Non-Malaysia Operations International Malaysia Singapore Taiwan Indonesia United Arab Emirates The Kingdom of Saudi Arabia 86% 14% 42% 58% 58% 6% 1% 19% 0.3% 16% 6 Countries across the region 12 Integrated Annual Report 2024 UEM EDGENTA BERHAD
THE KINGDOM OF SAUDI ARABIA UNITED ARAB EMIRATES MALAYSIA SINGAPORE INDONESIA TAIWAN 353 Employees 656 Employees 3,177 Employees 7,360 Employees 6,390 Employees 12 Employees OVERVIEW OF UEM EDGENTA 13
Our Healthcare Solutions division provides maintenance and management for over 250 hospitals across Malaysia, Singapore and Taiwan, earning recognition from the Malaysian Ministry of Health (MOH), and other key industry authorities for its commitment to sustainability and green transformation. Our comprehensive suite of services focuses on the integrated maintenance and management which includes ensuring the useful lifespan of buildings, assets, and systems; efficiently managing daily linen processing and supply; and upholding the highest standards of hygiene. Our hygiene services encompass meticulous facility cleanliness and the safe, effective treatment of clinical waste, reflecting our commitment to operational excellence and patient well-being. Our key focus on environmental sustainability, innovative technology and the integration of digitalisation in support services are becoming increasingly prevalent. Accurate, reliable, and timely data generates information which is crucial in enhancing our business framework; leveraging on patient-centric model to ensure operational excellence in healthcare services delivery. HEALTHCARE SOLUTIONS 107,000+ assets worth over RM1.5 billion managed and maintained under facility engineering maintenance services. 43,000+ assets valued more than RM1.7 billion preserved through biomedical engineering maintenance services. 1.6 million+ sq m2 of cleanable area maintained daily. 11,300+ tonnes of clean linen supplied daily after processing. 6,900+ tonnes of clinical waste incinerated. 32 managed MOH Malaysia hospitals certified with the Energy Management Gold Standard (EMGS). 29 Green Building certifications received for hospitals, including Leadership in Energy and Environmental Design (LEED), MyCREST and Penarafan Hijau JKR (PHJKR). 2024 Highlights 14 Integrated Annual Report 2024 UEM EDGENTA BERHAD What We Do
Our Property & Facility Solutions (“PFS”) division takes a whole-lifecycle approach to building and facilities management, ensuring long-term efficiency and resilience. Moving beyond traditional task-based models, we focus on strategic planning, timely upgrades, and continuous innovation to keep buildings performing at their best. We leverage emerging technologies to enhance building performance, seamlessly adapting to evolving demands. Through data-driven insights and cloud connectivity, we optimise operations, minimise downtime, and uphold the highest service standards for our clients. Our efforts are aligned with ESG principles, focusing on energy efficiency and sustainability to create well-managed spaces that enhance both environmental well-being and user experience. PROPERTY & FACILITY SOLUTIONS 279 buildings under management in Malaysia. 357 MWh pf energy saved at a Grade A Government Complex, reducing annual electricity usage by 7%, equivalent to RM309,000. 101.9 MWh energy saved at Menara UEM, reducing annual electricity usage by 6%, equivalent to RM52,000. 2024 Highlights 20 managed buildings certified against Green Building Index (GBI) and LEED standards. OVERVIEW OF UEM EDGENTA 15
INFRASTRUCTURE SERVICES Our Infrastructure Services division drives economic growth by connecting people and businesses through the roads, ports, railways and airports we service. Meanwhile, our experienced team focuses on understanding client needs, providing tailored, smart solutions for optimal outcomes. Beyond roads, we now serve industries such as rail, airports, ports, oil & gas, and plantation roads. We take an innovative approach to infrastructure management, focusing on efficiency management, waste management, and long-term sustainability. With years of field experience, our strategic planning process is designed to optimise performance while ensuring cost-effective, future-ready solutions. Our team of experts manages complex, large-scale infrastructure projects with precision, ensuring smooth and reliable operations. By harnessing technology, data-driven insights, and forwardthinking solutions, we are building a smarter, more resilient model for infrastructure management – one that enhances reliability, availability, and long-term performance. RM10 billion+ worth of infrastructure assets managed. 9,000+ km of expressways, state roads and rural roads maintained across Malaysia. 2024 Highlights 16 Integrated Annual Report 2024 UEM EDGENTA BERHAD What We Do
OPUS Consultants, the asset consultancy arm of our Group, has established itself as a leader in delivering large-scale infrastructure projects across diverse sectors, continuously raising the standards for engineering excellence and sustainable development. In line with the global sustainability agenda and energy transition, we have expanded our services to offer comprehensive sustainability solutions, including energy efficiency, green building initiatives, and renewable energy. Our expertise spans the entire project and asset lifecycle, covering net zero strategy and baselining, engineering solutions, project implementation, and sustainable asset management. Through our Zero-Capex Programme, we provide Energy Performance Contracting (EPC) and Green Performance Contracting (GPC), offering cost-effective, innovative solutions that enhance sustainability without upfront capital investment. By exploring high-growth sectors, forging strategic partnerships, and integrating cutting-edge technologies, we continue to elevate infrastructure management standards while driving Malaysia’s transition to a greener, more resilient future. Our commitment to sustainability, innovation, and operational excellence ensures that we remain at the forefront of shaping the nation’s infrastructure landscape for generations to come. ASSET CONSULTANCY 2.5X growth in total order book reaching almost RM0.3 billion in FY2024. RM52.1 million achieved in Zero Capex Programme utilisation – secured 26% of RM200 million fund earmarked for the initiative. Successful business turnaround, profitability jumped more than 100% in FY2024. RM10.1 million in contracts secured for Modular Project Consultancy (PMC), Building Condition Assessment (BCA) and Geotechnical Services. Recorded staff utilisation of more than 80%, driving operational excellence and profitability. Strategic partnership with Deighton to enhance asset management capabilities through the dTIMS analytics tool. 2024 Highlights OVERVIEW OF UEM EDGENTA 17
Our Competitive Advantage Our presence across multiple regions and industries provides stability against economic fluctuations, while allowing us to leverage crossmarket insights and shared resources to stay agile, mitigate risks and drive sustainable growth. Diversification Across Geographies & Portfolios Through our proprietary Asseto, RAMS and UETrack™ platforms, we harness realtime data to gain deep client insights, enabling us to optimise workforce allocation, enhance efficiency and elevate service quality across diverse industries. Technology Differentiation Operational Excellence By integrating cutting-edge technology, skilled talent and strong partnerships, we have built a high-performance organisation that consistently delivers exceptional service, ensuring long-term competitiveness and lasting client trust. We have built strong partnerships in the public and private sectors, enabling us to integrate data-driven technologies, energy optimisation solutions, renewable energy systems and proactive maintenance strategies to enhance our operational sustainability and long-term resilience. Strategic Partnership Ecosystem UEM EDGENTA BERHAD 18 Integrated Annual Report 2024 What Differentiates Us: Our Strengths
Our strong credit ratings and consistent investor returns give us access to significant financial resources, allowing us to secure competitive financing and swiftly capitalise on high-value opportunities for sustained business growth. Financial Strength We drive innovation and strengthen technological capabilities through targeted training programmes, while our commitment to flexible work arrangements and work-life balance fosters a dynamic yet supportive environment that attracts and retains top talent. Future-Ready Workforce Guided by our Edgenta of the Future 2025 (EoTF2025) strategy, we integrate technology with a vision of sustainable economic growth, minimal environmental impact and social value creation, ensuring our services align with societal needs while contributing to a greener, more sustainable future. Sustainability 19 OVERVIEW OF UEM EDGENTA
Our Certifications & Accreditations Indices Representation & Credit Ratings DURING THE YEAR: RHB reviewed UEM Edgenta in its report, “Picking Up the Pace; Maintain BUY”, highlighting our increased revenue from healthcare services in Singapore and Taiwan, new infrastructure service contracts, and acquisitions by our Property & Facility Solutions division. MARC Ratings upgraded our RM1 billion Sukuk from AAIS to AA-IS, recognising our geographical diversification, low leverage and strong liquidity position. • Anti-Bribery Management Systems (ABMS)/ISO 37001 certification by SIRIM Berhad • Human Resource Development Corporation (HRDC) Training Partner certification • 32 MOH Malaysia hospitals certified with the EMGS, including: • EMGS 3-Star Certification by the ASEAN Energy Management Scheme (AEMAS) for Hospital Selama, Hospital Bukit Mertajam and Hospital Jitra • 29 Green Building certifications awarded, including: • LEED Platinum – Hospital Teluk Intan • LEED Gold – Hospital Sultanah Bahiyah, Hospital Pulau Pinang and Hospital Tuanku Fauziah • Penarafan Hijau (Green Standard) PHJKR for Hospital Parit Buntar • Healthcare Solutions certifications retained: • International Standard Organisation (ISO) 9001:2015 – Quality Management Systems • ISO 13485:2016 – Medical Devices Quality Management Systems • ISO 14001:2015 – Environmental Management Systems • ISO 45001:2018 – Occupational Health and Safety Management Systems • Certificate of Recognition in Biomedical Engineering Services by the National Advisory Council for Biomedical Engineering (NACBE), MOH Malaysia • Award of Pencapaian Cemerlang MyCREST by CIDB QUEST (2024) for Hospital Seberang Jaya and Hospital Seri Manjung • Healthcare Without Harm South-East Asia 2024 - Climate Commitment Recognition (2024) for Hospital Bukit Mertajam UEM EDGENTA BERHAD 20 Integrated Annual Report 2024 What Differentiates Us: Our Strengths
Our Strategic Partnerships, Alliances, Collaborations & Joint Ventures We have inked the following partnerships and joint ventures: • Strategic collaboration between Yinson GreenTech (YGT) and UEM Edgenta for renewable energy and electric vehicle (EV) charging infrastructure • Memorandum of Business Exploration (MOBE) with Iskandar Investment Berhad (IIB) • Memorandum of Business Exploration (MOBE) between Boustead Properties Berhad and OPUS Consultants • Signing of Term Sheet for a potential Joint Venture between Kaizen and Dubai Expo • Joint ventures – Between HSS Engineering Sdn Bhd and OPUS – Maintaining our collaboration between Resource Data Management Asia (RDM Asia) and UEM Edgenta Berhad to develop energy management solutions Indices Representation & Credit Ratings Our Clients 21 OVERVIEW OF UEM EDGENTA
Operational excellence, powered by innovation and technology, is crucial for enhancing efficiency, sustainability, and service quality. At UEM Edgenta, we leverage digital transformation to optimise asset and facility management, reduce costs, and create longterm value for clients. Our Approach NXT, the technology commercialisation arm of UEM Edgenta, delivers end-to-end tech solutions for internal and external stakeholders. Our focus includes: • Smart Asset & Facility Management: Supporting commercial buildings, education campuses, and healthcare facilities. • Sustainability Solutions: Building Management Systems (BMS), energy management, and IoT deployment. • Smart City Integration: Enabling seamless urban infrastructure management. • Geographic Expansion: Active presence in Malaysia, UAE, and Singapore. • Ecosystem Growth: Partnering with solution providers to enhance value for clients. • Sustainable Impact: Tech-enabled solutions for energy optimisation and environmental monitoring. These digital advancements support our EoTF2025 strategy, helping us create smarter, more sustainable solutions while strengthening client relationships. By turning industry expertise into real-world technology, we ensure the buildings, healthcare institutions, and infrastructure we manage operate more intelligently, efficiently, and sustainably. EDGENTA DIGITAL ECOSYSTEM PLATFORM VALUE CREATED IN 2024 Challenges and Solutions • Client Digitalisation Gaps: Many Malaysian companies were in early digitalisation stages, requiring significant onboarding support. This was addressed through structured training and data preparation guidance before integrating with Asseto, ensuring seamless adoption. Efficiency Innovations 1. Asseto: A next-generation built environment platform designed to integrate asset intelligence, sustainability, and automation. It connects critical systems across facilities, providing real-time insights into asset performance, maintenance, energy consumption, and operational efficiency. Asseto enables data-driven decisionmaking, optimised maintenance strategies, and seamless management of largescale infrastructure. 2. EnergyAid: AI-powered energy optimisation platform with IoT-linked dashboards and automated efficiency controls. 3. HazardWatch: IoT-based hazard detection for proactive responses to security, gas, and fire risks. 4. AssetWise: BMS platform for real-time sensor-based building control to improve efficiency, safety, and comfort. 5. EcoTouch: Environmental monitoring for air, water, and noise quality, providing actionable insights. R&D Investment Our focus has been on enhancing product adoption through compelling collateral and feature development embedded within COGS. As the platform scales, we recognise the transformative potential of generative AI and will allocate resources to integrate it into our innovation strategy, driving greater efficiency and value creation. Key Successes • Expanded market reach into hospitals, property developers, leisure & hospitality, and telecommunications. • Strengthened positioning as a technology enabler for smart and sustainable buildings. 22 Integrated Annual Report 2024 UEM EDGENTA BERHAD
2024 Milestones for Asseto Asseto is a smart digital platform that integrates artificial intelligence (AI), the IoT, robotics and sensor networks into a single, unified system. It enables digital workflow automation, real-time data analytics and predictive maintenance, allowing for efficient resource allocation, reduced downtime and optimised operations. By enhancing collaboration, transparency and proactive asset management, Asseto extends asset lifespan and enables the efficient integration of emerging technologies. It also drives sustainability efforts by improving energy efficiency, reducing waste and enhancing air quality, making it a key enabler of our long-term sustainability and digital objectives. During the year, Asseto was successfully deployed for 15 Property & Facility Solutions clients, achieving: Total number of assets: 36,466 Total number of work orders: 237,556 Number of users: 2,089 Total number of buildings & facilities: 30 Digital permit to work generated: 177,438 2024 KEY SIGNIFICANT EVENTS New Features NXT continues to enhance its solutions, providing clients with automation, intelligence, and seamless management across their built environments: • Automated Case Creation: Pre-filled complaint templates streamline issue reporting, reducing manual data entry. • Seamless Work Order Management: Mobile-first task creation with image uploads, configurable SLAs, and automated approvals. • Advanced Analytics & Reporting: Real-time insights on asset performance, lifecycle management, agent efficiency, and key operational metrics. • Enhanced Search & Filtering: Powerful search functionality across all modules for quick access to relevant data. • Customisable Notification Matrix: Clients can tailor alerts based on frequency, priority, and recipient preferences, ensuring timely actions. This enhanced functionality enables clients to optimise efficiency, reduce downtime, and make data-driven decisions to improve overall operational excellence. Ranked 390 in the inaugural Fortune Southeast Asia 500, recognising our industry leadership and market presence Resurfaced pavements at Zoo Negara Malaysia to improve visitor access and safety Planted mangrove trees at Taman Paya Bakau Sijangkang, Selangor, to support environmental conservation Cleaned Pantai Batu Laut, Selangor, to help preserve marine ecosystems Hosted a Buka Puasa event with orphans from Rumah Permata Hati to foster community spirit Distributed Bubur Lambuk at the Sungai Buloh Northbound Rest and Service Area to travellers during Ramadan Carried out a gotong-royong initiative at MARS (Tahfiz) to enhance learning facilities Entered the EV charging infrastructure sector through our Edgenta x YGT strategic collaboration, reinforcing our commitment to a sustainable future OVERVIEW OF UEM EDGENTA 23
CHAIRMAN’S S t a t e m e n t Dear Shareholders, FY2024 was a remarkable year for UEM Edgenta. Despite a challenging business environment, we demonstrated our resilience and adaptability, balancing strategic expansion with operational excellence to further our ambition of becoming a global Asset Management and Infrastructure Solutions company, delivering long-term value for our stakeholders. UEM EDGENTA BERHAD 24 Integrated Annual Report 2024 UEM EDGENTA BERHAD
TAN SRI DR. AZMIL KHALID Independent Non-Executive Chairman Guided by our Edgenta of the Future 2025 (“EoTF2025”) strategy, we made meaningful progress in advancing our global ambitions, diversifying our portfolio, and unlocking new value creation opportunities. At the same time, we took decisive steps to streamline our operations and strengthen our cost structures, ensuring that our growth is both strategic and sustainable. It is therefore with great pride that I present UEM Edgenta’s Integrated Annual Report 2024. 25 LEADERSHIP INSIGHTS
NAVIGATING MARKET DYNAMICS The global economic landscape presented a complex combination of opportunities and challenges in 2024, with modest economic growth impacted by geopolitical tensions, evolving trade dynamics and shifting energy markets. Ongoing tariff disputes between major economies and rising protectionism created supply chain uncertainties and heightened inflationary pressures. Meanwhile, the rising demand for alternative energy solutions and ongoing global decarbonisation efforts put sustainability and energy efficiency in a growing spotlight. While the Sales Tax rate is maintained at 6%, the increase of Service Tax from 6% to 8% starting 1 March 2024 has impacted operating costs at multiple levels of the business, with cascading effects that continue to challenge our margins and encourage greater operational efficiency. Restructuring and extending concessions in our Healthcare Solutions and Infrastructure Services divisions required a sharp focus on cost control and profitability management. Rising raw material and labour costs, along with changes to regulated wage structures in key markets, further contributed to escalating business expenses. Meanwhile, competition within the industry continues to intensify, with clients increasingly demanding greater value at more competitive prices contract awards. In addition, as we deepen our international footprint, localisation and regulatory requirements necessitate strategic workforce planning, investments in talent development, and close engagement with suppliers and stakeholders. These requirements can also lead to increased operational costs — including compliance-related expenses — while non-compliance may expose the Group to potential fines, penalties, or legal action, underscoring the importance of robust governance and risk management across all markets. Despite these challenges, UEM Edgenta delivered an exceptional performance. We recorded 5.9% year-on-year revenue growth from RM2.9 billion in FY2023 to RM3.0 billion in FY2024, and a 72% increase in profit after tax and zakat (PAT), to RM51.8 million in FY2024 from RM30.1 million in FY2023. Overall, we recorded a 40% growth in order book wins in FY2024, contributing to a robust year-end total of RM8.7 billion — a testament to our brand leadership and commitment to excellence. New contracts under our international portfolio worth RM2.2 billion represented 79% of our total new orders for FY2024, validating our strategic growth initiatives and positioning us well for long-term success. In Singapore and Taiwan, we expanded beyond healthcare solutions into integrated facilities management in high-end hospitality, premium office buildings and transport infrastructure. High renewal rates and major contract extensions in these markets reflect our exceptional track record and ability to meet evolving expectations in a competitive landscape. Our acquisition of Kaizen, UAE’s premier property management company, was completed in February 2024. This marked a pivotal entry into the Middle East’s premium property management sector, opening new opportunities to scale integrated facilities management and asset lifecycle solutions across the Middle East. In Saudi Arabia (KSA), we secured our first hospital contract with the state-of-the-art Olayan Long Term Acute Care & Rehabilitation Hospital. Establishing our presence in healthcare facilities management with one of the region’s fastest-growing markets effectively positions us to support a sector that is central to the Kingdom’s Vision 2030 transformation agenda. Domestically, we secured new contract wins in major infrastructure projects, reinforcing our leadership in asset management and engineering solutions aligned with Malaysia’s national development priorities. Edgenta Healthtronics, a subsidiary of Edgenta Mediserve, has secured a 5-year contract to provide hospital support services at Hospital Cyberjaya. Our progress in FY2024 was honoured with prestigious industry and market accolades. UEM Edgenta was listed in the Fortune Southeast Asia 500, reaffirming our strong regional growth and financial performance. We were also named among the Top 10 Facilities Management companies in Malaysia, Revenue Growth: 5.9% year-on-year Increase in Profit After Tax and Zakat: 72% year-on-year UEM Edgenta has fully consolidated our acquisition of Kaizen, UAE’s premier Property Management Company. This marked a pivotal entry into the Middle East’s premium property management sector. Chairman’s Statement UEM EDGENTA BERHAD 26 Integrated Annual Report 2024
highlighting our reputation for excellence in the domestic market. Additionally, our conservative balance sheet and healthy liquidity position were recognised through a rating upgrade for UEM Edgenta’s RM1 billion Sukuk programme. This upgrade was premised on our strengthened business profile underpinned by geographical earnings diversification. As a result of this strong performance, UEM Edgenta declared a single-tier interim dividend of 4.0 sen per ordinary share for FY2024, demonstrating our commitment to delivering shareholder value. EDGENTA OF THE FUTURE 2025 FY2024 marked a significant milestone on our Edgenta of the Future 2025 (EoTF2025) strategy, as we achieved the RM100 million FY2021-FY2025 cost savings target a year ahead of schedule. This outstanding achievement was driven by unrelenting focus on operational excellence, optimising procurement and streamlining our business structures. Building on this momentum, and continually challenged by persistent inflationary pressures and increased market competition, we have set our sights on an additional RM150 million in cost savings over the next five years to FY2029. This initiative will target key optimisation areas including spend prioritisation, supply chain management and contract negotiations, while we continue to develop and implement process automation technologies to further streamline operations. Since the RM150 million target was established in early FY2024, we have saved RM41.1 million in costs, highlighting our proactive approach and steadfast commitment to driving long-term resilience and delivering sustainable value to our stakeholders. Meanwhile, our technology platforms are evolving to complete our business transformation into a Technology-Enabled Solutions Company, meeting the growing demand for smart, efficient and sustainable asset management. Expanding into Smart, Sustainable and Integrated Facilities Management, we have introduced new business pillars to incorporate end-to-end smart and green building solutions. By leveraging Internet-ofThings (IoT) and real-time monitoring technologies, we are optimising energy use, improving asset performance and enhancing sustainability. Our digital transformation initiatives were recognised with the Malaysia Technology Excellence Award (Facilities Management Technology – Building Services & Facilities) and the CIO100 ASEAN Award, reinforcing our role as a leader in sustainable infrastructure solutions. CHAMPIONING ESG Our ESG initiatives are not only our priority as a model of corporate responsibility — they are key enablers of strategic growth, performance enhancement and long-term value creation. Guided by our Sustainability Framework, we continued to make progress towards our Net Zero targets, embed sustainable practices throughout our organisation and support our clients in their sustainability journeys. We successfully completed our two-year sustainability roadmap spanning FY2022-FY2024, achieving a 4.72% reduction in Scope 1 and Scope 2 emissions through efficient fleet management strategies, energy efficiency initiatives and a structured approach to carbon management. Recognising that supply chain emissions represent a large proportion of our environmental footprint, we took steps to engage with our suppliers to assess our Scope 3 emission in our value chain. To this end, we ran a pilot exercise with selected key suppliers to gain critical insights into upstream and downstream emissions. Edgenta’s technology platforms are advancing, driving its transformation into a Technology-Enabled Solutions Company. Edgenta achieved its RM100 MILLION cost savings target (FY2021-FY2025) a year ahead of schedule. Secured our first green financing facility of RM75 million to finance capital expenditure and operational costs related to our Zero Capex programme. 27 LEADERSHIP INSIGHTS
facility of RM75 million to finance capital expenditure and operational costs related to our Zero Capex programme. This facility will supplement the capital required to enable the rollout of RM200 million programme to help our clients transition to a low-carbon economy. In line with our commitment to promoting a circular economy and resource efficiency, we commercialised our Recycled Asphalt Pavement (RAP) Plant in Tapah, Malaysia. By repurposing road milling waste into eco-friendly road paving materials, this initiative supports sustainable infrastructure development while minimising waste and consumption — and demonstrates that circular economy initiatives can generate both business and environmental benefits. We also formalised several strategic partnerships to advance sustainability initiatives and energy transition solutions. These included a Memorandum of Business Exploration (MOBE) with Iskandar Investment Berhad (IIB) to support the development of energy-efficient and environmentally conscious urban planning in Johor, and a long-term Energy Performance Contract (EPC) with Boustead DPC Sdn Bhd targeting energy reductions and cost savings. Our collaboration with Yinson Greentech strengthens our commitment to sustainable mobility as we accelerate the adoption of electric vehicles (EVs) in our fleet. Moving forward, we will continue to enhance our sustainability reporting policies and supplier engagement practices while leveraging our technology solutions to achieve greater reductions in energy consumption and operational costs for ourselves and our clients. ENHANCING EMPLOYEE ENGAGEMENT Our diverse workforce is the engine behind our operational excellence and business expansion. Recognising the vital role of an engaged and motivated workforce in strengthening our position in a competitive landscape, we continued to enhance talent development and well-being programmes in FY2024 to foster a high-performance culture. In response to the Employee Engagement Survey conducted in FY2023, we introduced a more structured approach to townhall meetings with a standardised communications plan and supporting materials to ensure clarity and alignment at all levels of the organisation. At the divisional and departmental levels, workshops and focus group sessions have created more informal spaces for employees to share feedback and build stronger connections. In May 2024, we launched the “Leadership Connect: One Voice, One Purpose” series, which brought senior leaders together with employees across our business entities through townhall sessions. Designed to foster transparency and share strategic priorities, these engagements strengthened our collective vision The output from this exercise will be a key component in developing our detailed Scope 3 emissions inventory and a corresponding supply chain engagement plan to support the development of targeted reduction strategies across our ecosystem. Once quantified, we will commence integrating Scope 3 emissions into our Net Zero Target. I am further pleased to note that we made significant strides in the Social and Governance spectrum of our ESG framework. Through targeted initiatives focusing on well-being, disease prevention, and road safety, we successfully enhanced employee health and safety in 2024, with 92.25% of our employees completing key training programmes in these health and safety areas. I am also pleased to announce that 100% of our operations have achieved ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications. In the governance space, we updated our Enterprise Risk Framework to enhance the Board of Directors’ roles in overseeing ESG matters of the Group including climate risk. Acknowledging the importance of health and safety of our workers, contractors and users of assets we maintain, we took the progressive step to add one of our key material matters, Occupational Health and Safety into the current focus areas that we prioritise. With this inclusion, we now will be prioritising 5 areas our material matters namely Climate Change and Energy, Environmental Management, Human Rights, Supply Chain and Occupational Health and Safety. While we will focus on these matters, we will continue to address the rest of our material matters to drive strategic growth, champion innovation, improve customer satisfaction, empower our communities and do business in an ethical manner. Building on the momentum delivered by our maiden roadmap, 2024 saw us launching our ESG Roadmap 2.0 a 2 year blueprint that will guide us in the next phase of our sustainability pathway. This comprehensive roadmap contains actions to implement the upcoming National Sustainability Reporting Framework, build a resilient supply chain ecosystem, uphold human rights, strengthen our safety standards and enhance our sustainability culture. The Zero Capex Programme led by OPUS Energy continues to deliver positive financial and operational impact for our clients. Since its launch, more than 25% of the capital allocated has been utilised to energy efficiency projects. A notable achievement in FY2024 was securing our first green financing In 2024, we have saved RM41.1 million in costs, highlighting our proactive approach and steadfast commitment to driving long-term resilience and delivering sustainable value to our stakeholders. Chairman’s Statement UEM EDGENTA BERHAD 28 Integrated Annual Report 2024
RkJQdWJsaXNoZXIy NDgzMzc=