2019 UEM Edgenta Annual Report

28 29 UEM Edgenta Berhad UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION STRATEGIC FOCUS Annual Report 2019 Our Business Model Delivering sustainable value • Financial growth and attractive value • Resilient and defensive stock • Track record of shareholder returns and yield • More than RM850 million in dividends paid to shareholders from 2014 to 2019 Employee well-being and growth • Emphasis on health and safety of frontline staff • Continuous career development through capability-building and learning & development programmes Building a sustainable, value-added business • Partnerships with suppliers and business partners to unleash operational efficiency • Caring for our subcontractors’ well-being through HSSE • Vendor development programme to promote the growth of innovative and competitive SMEs and entrepreneurs • Energy efficient solutions to minimise carbon emissions Nation-building and community outreach • Supporting the Malaysian economy through job creation, tax payments, dividends and economic activity • Philanthropic contributions to underserved communities • Support of education initiatives to develop future-ready, technologically-advanced talents • CSR initiatives in communities • Zakat funds distributed under Asnaf- Miskin, Fisabililah and Al-Gharimin benefiting 1,718 recipients Our Business Model Financial Output • RM188.0 million PAT for FY2019 • 11.8% Return on Equity for FY2019 • Dividend declared of 14 sen per share for FY2019, representing a yield of 5.4% based on share price as at 26 February 2020 SIX STRATEGIC FOCUS AREAS Health, Safety, Security & Environment (“HSSE”) Technology & Innovation Stakeholder Management & Communications Client Solutions Organisational Excellence THREE VALUES WHICH DEFINE US: • Purpose Driven: - Assurance and Peace of Mind as our value proposition to clients - Edgenta Way as the industry standard • Powered by Technology: - Platforms, systems & processes - Technology and innovation as a company culture • Sustainability: - Sustainability as a hallmark of industry leadership & corporate citizenry - Leadership by example - Triple Bottom-Line goals (people, planet & profit) Operational Excellence Leadership & Expertise • Combined experience of more than 80 years in Asset Management and Infrastructure Solutions, in which we are a home-grown champion in Malaysia, with a regional presence in five other countries Finance • Strong financial position with RM2.91 billion of total assets and net assets of RM1.89 per share • Healthy cash and bank balances (including deposits and short term investments) of RM621.0 million and gross gearing ratio of 0.33 times Technology and infrastructure • In-house developed technology platforms with our Command & Contact Centre as the hub of our regional operations • Pavement Research Centre • Edgenta Academy • Environmental Material Testing Lab • Automated & Mechanised assets • Real-time sensors, Radio Frequency Identification Technology (“RFID”) trackers and Inspection Drones • Operations Central Workshop Sustainable relationships with stakeholders • Clients, partners, employees, government and regulators, industry and business associations, supply chain partners, communities, shareholders and investors High-performing workforce • A well-experienced and competent leadership team supported by a highly skilled workforce at all levels with extensive experience • Diverse talent pool of close to 20,000 employees across six countries Natural resources • Energy used to run our operations and technology systems, as well as water consumed in our buildings Natural Capital The renewable and non-renewable environmental resources which support the provision of our services Human Capital The competencies, capabilities and experience of our workforce Manufactured Capital The physical, material and technological objects that are available to our organisation for use in the provision of our services Financial Capital The pool of finances that is available for our organisation to use, obtained funds generated from our operations or investments and financing Intellectual Capital Our collective technical skillsets, industry-wide expertise, technological and innovative methods, as well as our research and development World-class services • Offering a suite of services and solutions in Healthcare Support, Property & Facility Solutions, Infrastructure Services and Asset Consultancy • Value-added services which meet international standards and certifications OUTCOMES OUTPUTS VALUE CREATION PROCESS INPUTS CAPITALS People • Skilled and motivated workforce • Committed to deliver efficient and high-quality services Social and Relationship Resource The institutions and relationships within and between our communities, key stakeholders and other networks, and the ability to share information to enhance individual and collective well-being OUR SIX CAPITALS