We have made strong progress towards achieving our EoTF2025 goal of delivering cost savings of RM100 million over five years. In just two years, we achieved RM51.9 million in cost savings through a variety of initiatives, including bulk purchasing to reduce input unit costs, implementing LEAN programmes to identify operational efficiency opportunities, and driving ongoing digitalisation and mechanisation efforts. We also implemented a Supplier Financing Programme and conducted data analysis under the Strategic Vendor Programme to drive rate reductions while creating a fit-forpurpose organisation by optimising work processes and right-sizing manpower to reduce costs and deliver effective solutions. A key factor in our success is the smart and effective use of technology. By leveraging data analytics and machine learning capabilities, we have been able to extract valuable insights that have enabled us to develop more cost-effective resource utilisation strategies and implement predictive maintenance schedules across our assets, among other areas of impact. In addition to these efforts, we have also been monetising mature and non-core businesses to streamline our portfolio and prioritise our resources towards growth markets. As an example, we have divested Fabor Sindoori Management Services Private Limited to Apollo Sindoori Hotels. This allows us to reinvest the proceeds and allocate more resources towards expediting our international expansion strategy and propelling our investments in technology and innovation. EXTRACT VALUE FROM CORE BUSINESSES ENHANCE PRODUCT AND TECHNOLOGY PROPOSITION Our goal is to differentiate ourselves through technology-based solutions, and we have achieved over RM1 billion in tech-enabled wins since 2020. This year, we made significant progress on commercialising our Asseto platform, the digital asset management solution developed by our technology innovation arm, Edgenta NXT. Asseto was chosen by KLCC Urusharta to consolidate and aggregate data from various sources, enabling better asset and user management across Towers 1, 2 and 3 of the Petronas Twin Towers. We have also seen a strong interest in digital asset management in the healthcare industry, resulting in the development of Asseto for Health. This solution is specifically designed for hospitals, allowing healthcare providers to gain better insights, improve asset quality and comply with increasingly complex healthcare regulations. INNOVATING FOR A SUSTAINABLE FUTURE We view sustainability as a core element in the value we provide to our clients. We understand that by offering environmentallyfriendly solutions, we can optimise our clients’ assets and stand out in our competitive asset management and infrastructure services markets. To further our commitment to sustainability, we began construction of a Recycled Asphalt Premix Plant in 2022. This plant is designed to produce recycled asphalt pavement and is expected to reduce up to 800 tonnes in CO₂ emissions annually. We aim to launch this solution commercially in the second half of 2023. This is just one example of how we are integrating business and sustainability to create synergies. Furthermore, we launched a Green Building certification program to help our clients adapt to sustainability-related demands from authorities and society. This program assists building owners in achieving certifications such as Green Building Index (“GBI”), Leadership in Energy and Environmental Design (“LEED”), or Malaysian Carbon Reduction and Environmental Sustainability Tool (“My CREST”). With our assistance, eight hospitals received GBI certification in 2022 alone. Our own actions towards sustainability also match our commitments to our clients. With this in mind, we launched a sustainability roadmap spanning from FY2022 to FY2024. It outlines crucial actions across the ESG spectrum and measurable goals embedded within our corporate scorecard. This provides momentum for our leaders at all levels to adopt sustainable thinking and processes in our everyday operations. We started digitising our backend systems for sustainability data collection as well as delivering capacity-building programs for our teams to establish our net zero targets by 2023. As a testament to our sustainability endeavours, we improved our FTSE4Good rating from 2.5 in 2021 to 3.1 in 2022, indicating that our corporate sustainability practices are comparable to global companies. In addition, we are proud to announce that we have been recognised by the KSI Strategic Institute and the All-Party Parliamentary Group on SDGs (“APPG-SDG”) at the 2022 Malaysia Outstanding ESG Impact Corporate Awards. This award recognises Malaysian organisations that demonstrate exemplary ESG practices in their business model and respective industries. NEW FRONTIERS IN FACILITIES MANAGEMENT The Facilities Management industry is undergoing unprecedented change with increasing client standards and demand with technological advancements and sustainability considerations driving disruption and transformation. At UEM Edgenta, we have embraced this change by integrating digital and tech-enabled solutions and sustainability programs across all our core businesses. Our tech subsidiary, Edgenta NXT, offers a suite of technology-enabled solutions across the healthcare, infrastructure, facility management, and asset management consultancy sectors through its end-to-end digital transformation capabilities. With growing expertise in technology-based solutions, we provide hospital support services in 250 healthcare institutions across Malaysia, Singapore, and Taiwan. Additionally, our Property & Facility Solutions business arm manages over 500 building assets in Malaysia and the Middle East. Through the Asseto platform, our digital transformation capabilities enable realtime, Internet of Things (“IoT”) data analytics, predictive maintenance, and early detection of anomalies to manage our clients’ assets more effectively. By harnessing the power of technology, we strive to deliver services that positively impact our everyday lives, from ensuring the cleanliness and safety of highways to maintaining top-notch healthcare delivery services. Our goal is to continue scaling up our technology to surpass high delivery standards and benefit society well into the future. We are committed to resilient growth through tech-enabled solutions and sustainability programs across our business operations, and we will continue to work towards digital transformation through Edgenta NXT, offering end-to-end services and technology solutions. LOOKING FORWARD The market landscape in the upcoming year is expected to remain challenging, marked by geopolitical instability, high raw material and labour costs, and global inflation. Despite the moderate growth of major developed economies, we remain cautiously optimistic about our future. Our proactive technology-based innovations, combined with our expanding global presence, position us well to weather any headwinds that may come our way. We have diversified our business across geographies, industries, and technologies, enabling us to quickly capitalise on opportunities in growth markets while mitigating against any country-level economic shocks. Our long-term success depends on our ability to adapt to a constantly evolving asset and facility management industry. Today’s asset owners demand more than just basic asset restoration, repair, and maintenance. They seek solutions that improve asset longevity, create new revenue streams, enhance user experience through technology and digitalisation, and help them reduce emissions and improve their overall ESG performance. Our technology-driven solutions provide us with a competitive edge, allowing us to offer holistic asset lifecycle management solutions that enable our customers to achieve their sustainability goals. This approach positions us higher up the value chain and enables us to tap into opportunities as a Smart City enabler, integrating intelligent and sustainable solutions. As we embark on another year of uncertainty, I am confident in UEM Edgenta’s ability to adapt and emerge stronger than ever. We have demonstrated time and again our ability to seize opportunities and build our resiliency. Our diverse stakeholders have played a crucial role in navigating this dynamic environment and encouraging our teams to approach challenges from different perspectives. Therefore, I want to express my sincere gratitude to our stakeholders, including our loyal customers, dedicated management team, committed employees, suppliers, shareholders, and the wider community for their unwavering trust and support. With their continued backing, we are well on our way to achieving our vision of becoming a Technology-Enabled Solutions Company that drives innovation and advances sustainability. SYAHRUNIZAM SAMSUDIN Managing Director/Chief Executive Officer Pillar 2 Pillar 3 Furthermore, we focused on building a tech ecosystem of Smart City solutions. Our partnerships with companies like Alibaba, ITMAX, Disrupt-X, Softbank and Sumitomo have enabled our customers to adopt advanced technologies for carbon emissions accounting, facial recognition-based access and security, smart traffic management and IoT into their building and operational management systems. As the Smart Facility Management industry matures, these new technologies help us shift our focus from managing individual assets to driving value, connectivity and efficiency across entire townships and eventually cities, leading our evolution towards becoming a holistic Smart City enabler. Our efforts to enhance our product and technology offerings have allowed us to differentiate ourselves in the market and win significant contracts while providing innovative and efficient solutions to our clients. MD/CEO’S STATEMENT MD/CEO’S STATEMENT p.40 p.41 UEM EDGENTA BERHAD INTEGRATED ANNUAL REPORT 2022 1 2 3 4 5 6 7 8 9 KEY MESSAGE
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