170.9 (7%) 1,435.1 (63%) 88.6 (54%) 595.6 (26%) 82.7 (4%) 2021 771.5 (30%) 1,489.0 (59%) 99.8 (4%) 165.9 (7%) 2022 21.0 (15%) 7.7 (5%) 93.3 (67%) 41.0 (30%) 65.3 (40%) -17.2 (-12%) 2021 1.8 (1%) 2022 REVENUE (RM million) NORMALISED PBT* (RM million) * Normalised PBT excluding: FY2022: Staff rationalisation costs (RM12.2 million) and inventories written-off (RM12.8 million) FY2021: Staff rationalisation costs (RM12.6 million) CHIEF FINANCIAL OFFICER’S REVIEW SUMMARY OF STATEMENTS OF FINANCIAL POSITION 2022 2021 Variance RM million RM million RM million % Total Assets 2,868.7 2,855.1 13.6 0.5% Property, plant and equipment 146.4 166.5 -20.1 -12.1% Investment properties 13.8 – 13.8 100.0% Right-of-use assets 44.2 37.3 6.9 18.5% Intangible assets 700.9 699.2 1.7 0.2% Investment in associates 72.3 102.9 -30.6 -29.7% Inventories 17.2 66.8 -49.6 -74.3% Trade and other receivables 599.0 700.4 -101.4 -14.5% Contract-related assets 433.1 389.3 43.8 11.3% Short-term investments 97.2 28.3 68.9 243.5% Cash, bank balances and deposits 609.5 600.4 9.1 1.5% Assets of disposal group classified as held for sale 90.0 – 90.0 100.0% Total Liabilities 1,284.6 1,315.7 -31.1 -2.4% Borrowings 458.8 443.5 15.3 3.4% Trade and other payables 676.2 738.5 -62.3 -8.4% Lease liabilities 41.0 33.6 7.4 22.0% Contract liabilities 30.8 30.3 0.5 1.7% Liabilities of disposal group classified as held for sale 3.2 – 3.2 100.0% Total Equity 1,584.0 1,539.4 44.6 2.9% Shareholders' funds 1,580.9 1,535.8 45.1 2.9% Non-controlling interests 3.1 3.5 -0.4 -11.4% Net assets per share 1.90 1.85 0.05 2.7% Gross gearing ratio 0.29 0.29 – – Net cash position 247.9 185.2 62.7 33.9% Through these initiatives, we were able to increase our net operating cash flow from RM44.6 million in FY2021 to RM104.3 million in FY2022. This resulted in a healthy net cash position of RM247.9 million (FY2021: RM185.2 million) and cash and bank balances (including fixed deposits and cash placed in money market funds) of RM706.7 million (FY2021: RM628.7 million). Our financial performance and cash flow management strategy have resulted in a stronger balance sheet and enhanced liquidity. At the end of the year, the Group’s total assets increased to RM2.87 billion from RM2.86 billion in FY2021, while net assets per share also rose to RM1.90 per share (FY2021: RM1.85 per share). Our working capital remained strong, and we maintained a low gearing ratio of 0.29x (FY2021: 0.29x), which demonstrates our ability to manage our debt effectively. With a solid financial foundation, we are well-positioned to scale our operations and pursue inorganic growth opportunities when they arise, allowing us to continue creating long-term value for our stakeholders. In addition, our strong performance during the year gave us the opportunity to issue a single-tier interim dividend of 4 sen per share for the financial year ended 31 December 2022, an increase from the 3 sen per share dividend issued in FY2021. Our increased dividend payment is a testament to our commitment to delivering value to our shareholders while pursuing new growth opportunities in new markets and technology-driven solutions. This is in line with our dividend policy of 50%-80% of PATANCI, which is geared towards delivering sustainable long-term shareholders return. OUTLOOK Whilst the Group delivered a good financial performance in the year under review, we remain cautious about our near-term prospects due to the persisting fragility of the global economy and the inflationary pressures that continue to dampen sentiment within the business community. Having said this, we are now more resilient than before, both from a financial and operational standpoint. This is because of the challenges of the past few years, which spurred us to reposition our portfolio and accelerate changes to our business and operating structure. Looking ahead, our top priority will be safeguarding and protecting our core and concession businesses while further pursuing our diversification strategy to access high growth markets and high margin sectors. We will continue to focus on delivering world-class services and maintaining our position as the champion in our industry, driven by stringent cost management and improved operational efficiencies. Over the past two years, we have focused towards international opportunities and have tapped into new areas of growth by adopting technology and incorporating sustainable asset management solutions. As a result of these efforts, we can now look forward to a wider range of revenue-generating opportunities across our expanded geographical footprint, especially in KSA and across the island of Borneo. We will continue to implement our pan-Borneo strategy within our Infrastructure Services business segment, ensuring that we maximise our potential in this region. To support our growth and expansion, we will strive to ensure sufficient capital allocation of growth CAPEX for the development of technology-based solutions. Bolstered by our healthy cash position, we are also in an ideal position to invest in further strategic partnerships and inorganic growth opportunities, thereby driving our differentiation in ever more competitive markets. With new market expansion, digitalisation and digital technology as our core drivers, we are confident that we can navigate challenges in our operating environment while growing our bottom line, positioning ourselves to achieve our EoTF2025 goals and complete our transformation to become a globally-recognised TechnologyEnabled Solutions Company by 2025. Our ultimate goal is to drive sustainable growth and create long-term value for our shareholders. Hillary Chua Pei Sum Chief Financial Officer Healthcare Support Infrastructure Services Property & Facility Solutions Asset Consultancy CHIEF FINANCIAL OFFICER’S REVIEW FINANCIAL POSITION Overall, our financial restructuring efforts have enabled us to strengthen our financial position and better navigate the challenges of the economic situation. In FY2022, we implemented various initiatives to improve our financial position, including strengthening our collections process and optimising our payment terms with suppliers through the SFP programme. p.46 p.47 UEM EDGENTA BERHAD INTEGRATED ANNUAL REPORT 2022 1 2 3 4 5 6 7 8 9 KEY MESSAGE
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