INFRASTRUCTURE SERVICES As Malaysia’s foremost name in infrastructure maintenance, our Infrastructure Services division manages approximately 4,000 km of highways and state roads across the country and in Indonesia. Bolstered by our longstanding expertise and our commitment to excellence, we have expanded our portfolio to include railways, airports, ports, oil and gas, plantation roads and other commercial and industrial sectors. BUSINESS REVIEW p.97 1 2 3 4 5 6 7 8 9 MANAGEMENT DISCUSSION & ANALYSIS p.96 UEM EDGENTA BERHAD INTEGRATED ANNUAL REPORT 2022 INFRASTRUCTURE SERVICES KEY FOCUS AREAS Network Maintenance Services Traffic Management and Safety Services Environmental and Material Testing Services Pavement Products and Services Road Asset Management System KEY INITIATIVES RESULTS Expand our business footprint Deepen our solutions base Enhance our product and technology proposition Introduced Tech Brigade, a team of young high-potentials who will drive innovation towards SMART Highway and infrastructure sustainability Implemented mechanised grass cutting with the use of rabbit mowers, resulting in a 20% increase in productivity Initiated digitalisation for pavement works monitoring with PLUS Implemented RAMS and PLUS TEMAN interfacing, resulting in reduced paperwork, shorter turnaround times and the elimination of ambiguity Drive improved sustainability performance Launched initiatives including the Infra Maintenance Squad (“IMS”), an in-house routine team responsible for troubleshooting, to improve quality of service delivery Launched Infra Support Services (“ISS”) to patrol and attend to emergencies in order to improve operating costs Introduced gamification, which makes work fun by introducing incentives, thereby increasing motivation and enhancing our services Enhanced sustainability and cost efficiency with the development of a premix plant to produce Recycled Asphalt Premix (“RAP”), with the plant expected to be operational from Q4 2023 Undertook an ESG initiative with PLUS Secured the contract for the Coastal and Second Trunk Road project in Sarawak, making further progress on our Pan-Malaysia expansion strategy Expanded our presence in Indonesia with new contract wins, including the Serpong-Balaraja Toll Road and Bawen-Jogja Toll Road Secured road work projects for the Public Works Department (“JKR”) Kelantan, the Royal Malaysian Air Force and the Pasir Gudang Highway. 771.5 595.6 53.1 30.7 2021 2021 2022 2022 Revenue (RM million) PBT (RM million) FINANCIAL PERFORMANCE Innovated our current concessions by: • Implementing quality and standards measures, e.g., setting up an infrastructure maintenance squad • Developing an ecosystem of infrastructure support services • Leveraging digitalisation and mechanisation for enhanced service delivery Maintaining competitiveness for continued market relevance Focused our efforts towards generating growth in the non-toll road and road construction sectors Strengthened our presence in the Pan Borneo region and Indonesia as a whole Grew our subcontractor and supply chain network, especially in new markets and product portfolios Developed new ESG solutions while implementing our Tech Brigade Programme Implemented a Traffic Safety Campaign that targets the general public across two phases, with the first phase featuring a TikTok influencer and the second phase comprising roadshows and competitions across 26 RSAs Adhered strictly to SOPs regarding policy compliance and monitoring Revolutionised traffic management plans and emergency works through the use of Truck Mounted Attenuators (“TMA”) Growing our addressable market to capture future value Managing heavy traffic on highways KEY CHALLENGES MITIGATING ACTIONS Added more than RM250 million to our order book Expanded our list of external clientele Launched new operational initiatives with PLUS for continuous quality and service improvement Won the Institution of Engineers Malaysia ("IEM") Award 2022 (Asset Management - Industries Category) for our contributions to the local engineering industry We will look to preserve our market share with PLUS by uplifting our current services and driving new project origination We will also seek to enhance our local supply chain towards delivering greater value within the local business ecosystem We shall endeavour to diversify our portfolio through the introduction of new products, such as RAP and other offerings from our PRC, to support our growth strategy and sustainability agenda We will further develop our Tech Brigade Programme with the aim of driving innovation within the division KEY ACHIEVEMENTS OUTLOOK
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