2018 UEM Edgenta Annual Report

RECURRENT RELATED PARTY TRANSACTIONS The shareholders of UEM Edgenta Berhad (“UEM Edgenta” or “the Company”) had at the 55 th Annual General Meeting held on 10 May 2018 granted their approval for the Company and its subsidiary companies (“UEM Edgenta Group”) to enter into recurrent related party transactions of a revenue or trading nature, which are necessary for its day-to-day operations and are in the ordinary course of business in order to comply with Paragraph 10.09 of the Main Market Listing Requirements (“MMLR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”). In accordance to Practice Note 12 of the MMLR of Bursa Securities, the details of recurrent related party transactions made during the financial year ended 31 December 2018 pursuant to the shareholders’ mandate are as follows:- Item Company in UEM Edgenta Group involved Transacting Party Nature of relationship as at the LPD Nature of transaction Value incurred from 1 January 2018 to 10 May 2018 RM’000 Value incurred from 10 May 2018 to 31 December 2018 RM’000 Aggregate Value of Transactions during the Financial Year RM’000 1 UEM Edgenta Group UEMG Group Khazanah is the holding company of UEMG by virtue of its 100% interest in UEMG. UEM Edgenta is a 69.14% subsidiary of UEMG. Dato’ Noorazman Abd Aziz is a Director of UEM Edgenta and UEMG. Dato’ Noorazman Abd Aziz does not have any equity interest in UEMG. Provision of Directors and staff training and development by UEMG Group. 267 390 657 Provision of administrative and audit and tax services by UEMG Group. 1,524 2,476 4,000 Rental of office space in Tower 1, Avenue 7, Bangsar South and ancillary facilities from UEMG Group. 2,544 5,026 7,570 Rental of archive store at Taman Desa and ancillary facilities from UEMG Group. 21 43 64 Rental of meeting rooms in Tower 1, Avenue 7, Bangsar South ancillary facilities from UEMG Group. – – – Provision of services to UEMG as follows: (i) proposed provision of vehicle screening services for projects developed; (ii) design and project management fees for projects; (iii) provision for soil investigation, instrumentation, material testing, environmental and pavement condition assessment works for rail projects; and/or (iv) provision of energy management services. – 12,356 12,356 2 UEM Edgenta Group PLUS Malaysia Group Khazanah is the holding company of UEMG by virtue of its 100% interest in UEMG. UEM Edgenta is a 69.14% subsidiary of UEMG. PLUS Malaysia is a 51% subsidiary of UEMG. Dato’ Noorazman Abd Aziz is a Director of UEM Edgenta and PLUS Malaysia. Dato’ Noorazman Abd Aziz does not have any equity interest in PLUS Malaysia. Provision of facilities maintenance services to PLUS Malaysia Group. 1,143 3,029 4,172 Provision of highway operations and maintenance services through Performance Based Contract (“ PBC ”) concept to PLUS Malaysia Group. – – – Management Discussion & Analysis UEM Edgenta Berhad Annual Report 2018 About UEM Edgenta Chairman’s Statement 264