My EG Services Berhad Annual Report 2019

ANNUAL REPORT 2019 33 OUR VALUE CREATION PROCESS AND BUSINESS MODEL (CONT’D) OUR VALUE CREATION PROCESS AND BUSINESS MODEL Financial capital Shareholders’ equity, debt and reinvested capital – are critical input in executing our business activities and in generating, accessing and deploying other forms of capital. Balancing the short-term interests of investors with longer-term growth objectives, and with some of the interests of other stakeholder groups, remains an essential objective. Financial Values Created Revenue RM593.58 million Profit before Tax: RM306.94 million Cash and cash equivalents: RM63.86 million Manufactured Values Created Successful roll-out of new services including zakat salary deductions, DBKL license renewal, MYDATA-SSM Services and MyAssist 24/7 roadside assistance services HumanValuesCreated z Competent employees z Increase in employee engagement z Long service employee z Growth in workforce SocialandRelationshipValues created Greaterunderstandingamongkey governmentandbusiness stakeholdersonourbusinessmodel andprospectsgoing forward. Greater investor interest inour company. Sharingof resources toachievea commongoal inabusinessvalue chain Manufactured capital Our physical assets drive our best value creation capabilities. They include our headquarters that houses our corporate office and customer service centre. Other key manufactured capital include our motor fleet to support delivery services and operating branches across Malaysia. Intellectual capital Our proprietary, self-developed, Malaysian made technology and intellectual properties power our business model. It is the intangible quotient of our idea generation and innovation processes that allow us to maintain our competitive edge in a dynamic market, both locally and internationally. Human capital The technical and managerial skills, productivity and wellbeing of our people – coupled with a company culture and governance systems that foster innovation and compliance – are critical to our long-term success. Investing in our people is one of the most significant costs to our business. Social and relationship capital The innate partnerships, collaborations and interactions that we have developed over time that allows us to best understand our marketplace and many stakeholders and how best to develop our value creation approach from a shared perspective. RM884.25 million in assets RM360.63 million share capital RM110.23 million cash and cash equivalents at beginning of year RM3.08 billion market capitalisation 351,780 square feet (“ sf ”) corporate MYEG Tower 45,328 sf of customer service centre in MYEG Tower Fleet size of motorcycles and vans, etc. 101 operating e-services centre and 907 kiosk nationwide. Self-developed technology Logo copyright Online finance services made possible via our moneylender’s license. Road safety diagnostic kit 2,750 staff strength - 17 customer facing staff - 13 management staff Long-standing industry knowledge, experience and expertise Empowered organisational culture Talent development and retention programmes Proactive stakeholder engagements, dialogues, development of joint ventures and strategic agreements, etc. with governments, regulators, communities, vendors and others. Intellectual Values Created Introduction of MyMotor and MyAssist as well as online vehicle auction platform towards further cementing MyEG as a one-stop centre that covers the entire needs of drivers. This ranges from providing a large range of new and used vehicles to choose from, providing financial assistance via multiple vehicle financing options, car insurance and road tax as well as roadside vehicle assistance packages. 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 online finance services via MYEG Finance Technology Sdn Bhd z Launch of iPayEasy Wallet Financial Outcomes Dividend payout of 2.5 sen per share for FP2019 subject to shareholders’ approval. RM4.78 million paid in income tax Total assets of RM1.03 billion RM490.61 million distributable retained profits RM33.15 million paid to financiers in repayment of term loans, lease liabilities and revolving credit. Manufactured Outcomes Improved efficiency of our one-stop, door-to-door, service experience for customers. Expansion of services to more customers nationwide. Around 363,500 customers was served in FP2019 via counter services, live chat and phone call 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. Human Outcomes 2,594 staff strength Low attrition rate Development of highly, skilled knowledge-based workers to drive Malaysia’s digital economy. Social and Relationship Outcomes Investment in local and China-based technology start-ups, including AR/ VR companies such as Guangdong Virtual Reality Technology Co., Ltd. who owns Ximmerse. Invested in blockchain project by collaborating with University of Malaya and Universiti Utara Malaysia in exploring opportunities, to promote and foster the development of academic and research projects in blockchain. Joint Ventures (“ JV ”) in Indonesia, the Philippines and Bangladesh. Our purpose and definition of value is defined by ourVision and Mission Vision To be a high value-added provider of globally competitive IT services Mission To realise our vision, we strive to: - optimise our current technological capabilities - develop employee potential - enhance stakeholders’confidence - increase revenue growth through market and product expansion and continuous innovation Our Business Strategies Realise Our Vision and Mission Short / Present Term (1-3 years) Improve existing product Enhance customer experience Innovate and grow Develop capable employee Long Term/Future Orientation (4-10 years) Customer oriented Invest in the future Sustainable business Moderate risk profile We are cognisant of and continue to mitigate against financial, business and operational risks and sustainability related matters: Please see Sustainability Statement on page 41 for mitigation measures We adapt and Leverage on relevant macro factors in key markets. Digitalisation to enhance e-government services delivery. Emerging technology like blockchain and AR.Technology to improve delivery of financial services. STAKEHOLDERS Our Opportunities Going Forward Our model takes into account the aspirations, demands, rights and perspectives of multiple stakeholders: Employee Community andGeneral Public Investors Customers OUR CAPITALS SPECIFIC INPUTS BUSINESS OPERATING MODEL VALUES WE CREATE OUTCOMES Shareholders Government and Regulators OUR BUSINESS