2021 UEM Edgenta Annual Report

UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 MANAGEMENT DISCUSSION & ANALYSIS 67 66 BUSINESS REVIEW BUSINESS REVIEW PROPERTY & FACILITY SOLUTIONS UEM Edgenta’s Property & Facility Solutions offers performance-based approaches, supported by technology-driven green building solutions and data-driven asset management with a focus on asset optimisation and energy solutions. The division’s goal is to remove all implementation barriers towards a sustainable energy future. Digitalisation Management Energy Management Smart Facilities Management Health & Hygiene: Indoor Air Quality, Sanitisation and Disinfection KEY FOCUS AREAS KEY INITIATIVES • Secured new contract wins and renewals from Lotus-Tesco, Menara Etiqa, Synthomer, Perbadanan Insurans Deposit Malaysia, IBCCKLCC, H&M stores nationwide, Setia Haruman and Johor State New Administrative Centre • Garnered continuous trust from clients with variation order projects being awarded throughout the financial year • Internalised digitalisation of processes • Expanded digitalisation management programmes • Contributed RM96.1 million to the division’s new order book, bringing the total outstanding order book to RM163 million (Malaysia – RM89.9 million; Operon Middle East – RM73.1 million) • Contributed RM55.9 million (Prime Minister’s Office (“PMO”), CIMB, OME) to revenue • Rolled out real-time energy management dashboard for energy performance contracts • Successful implementation of cloud-based work order management system (“WORMS”) at PETRONAS Twin Towers, Kuala Lumpur City Centre, Kuala Lumpur For KLCC Urusharta Sdn. Bhd. RESULTS FINANCIAL PERFORMANCE REVENUE (RM mil) • Closer and more personalised follow-ups with key clients and prospects since the gradual reopening of businesses in the fourth quarter of 2021 MITIGATING ACTIONS • Dampened by stringent COVID-19 SOPs imposed by the Government • Virtual customer engagements were less effective due to the nature of our business and clients’ workplace SOPs KEY CHALLENGES • Integrated Facilities Management – commoditised and cost-sensitive market translated to loss in tender submissions • Reviewed product offerings and adopted a go-to-market strategy, focusing on client engagement and cost structure effectiveness OUTLOOK • Property & Facility Solutions will focus on growing beyond its traditional Facilities Management business through selective clients with demand for technology and energy components • The division will continue to expand the Energy & Engineering business by exploring ESG opportunities in energy efficiency, Green Building Index (“GBI”) certification programme as well as the Design & Build sector, particularly in green building design and retrofitting for GBI KEY ACHIEVEMENTS 2021 163.0 2020 149.2 PBT (RM mil) 2021 21.0 2020 12.5 Gold Award from MTEx 2021 Soft Service Optimisation for PMO project “5 Star” Award at Annual Productivity & Innovation Showcase (“ArISe”) 2021: Team OPTIMIZENATOR

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