2019 UEM Edgenta Annual Report

252 253 UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP STRATEGIC FOCUS OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION Notes to the Financial Statements For the year ended 31 December 2019 Notes to the Financial Statements For the year ended 31 December 2019 UEM Edgenta Berhad Annual Report 2019 43. CAPITAL MANAGEMENT The primary objective of the Group’s and of the Company’s capital management is to ensure that they maintain a strong credit rating and healthy capital ratios in order to support their business and maximise shareholder value. The Group and the Company also aim to maintain a capital structure that has an appropriate cost of capital available to the Group and the Company. The Group and the Companymanage their capital structure andmakes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group and the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the years ended 31 December 2019 and 31 December 2018. The Group and the Company manage capital by reference to the debt to asset ratio. The Group’s and the Company’s debt to asset ratio is as follows: Group Company 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Murabahah Term Facility 69,735 101,065 - - Term loans 86,751 126,458 - - Revolving credit 60,742 - - - Finance leases - 3,127 - - ICPs 50,000 50,000 50,000 50,000 IMTNs 251,840 251,815 251,840 251,815 Lease liabilities 30,277 - 23,553 - Total debt 549,345 532,465 325,393 301,815 Total assets 2,912,816 2,877,691 2,116,633 2,085,614 Debt to asset ratio 19% 19% 15% 14% 44. SEGMENT INFORMATION (a) Business unit segments For management purposes, the Group is organised into business units based on their products and services, and reflect the Group’s offerings across different sectors as follows: Asset Management The asset management segment provides integrated facilities management and engineering contracting services for a range of assets and building types specialising in healthcare support and property and facility solutions. (i) Healthcare support The healthcare support division delivers optimal solutions in improving the non-clinical support services demanded by healthcare providers and other commercial industries. Services range from facilities and biomedical engineering maintenance, waste management, linen and laundry, to housekeeping and portering services. 44. SEGMENT INFORMATION (CONT’D.) (a) Business unit segments (cont’d.) Asset Management (cont’d.) (ii) Property and facility solutions (“PFS”) The PFS division offers integrated facilities management services complimented with technology-driven green building solutions and asset optimisation, with a focus on enhancement and energy solutions. Infrastructure Solutions Infrastructure solutions segment provides strategic advisory services, design, development, maintenance and management of major transport projects and infrastructure assets. (i) Asset consultancy The asset consultancy division provides advisory and planning, engineering design and consultancy, property and community consultancy, research and development, procurement and construction planning, project and construction management, and asset and facilities management. (ii) Infrastructure services The Infrastructure services division focuses on highway network maintenance and asset management, including innovative pavement works and solutions services; with expanded capabilities beyond roads, servicing multiple industries including rail, airports, ports, oil & gas, plantation roads and other commercial and industrial sectors. Others Other segment includes the business of developing residential properties and Group-level corporate services and investment holdings. Except as indicated above, no operating segments have been aggregated to form the above reportable operating segments. Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss which, in certain respects as explained in the table below, is measured differently from operating profit or loss in the consolidated financial statements. (b) Geographical segments The Group’s geographical segments are based on the location of the Group’s assets. Sales to external customers disclosed in geographical segments are based on the geographical location of its customers. The Group’s business segments operate in ten geographical areas: (i) Malaysia - the operations in this area are principally integrated facilities management, consultancy services, infrastructure maintenance, geotechnical investigation, instrumentation, pavement condition assessment works, township management, property development and investment holding. (ii) Indonesia - the operations in this area are principally consultancy services and road infrastructure. (iii) Middle East - the operation in this area are principally integrated facilities management and asset management consultancy services. (iv) Singapore - the operations in this area are principally integrated facilities management. (v) Taiwan - the operations in this area are principally integrated facilities management. (vi) India - the operations in this area are principally integrated facilities management.