2018 UEM Edgenta Annual Report

Matters Material to Our Business and Stakeholders How We Deploy Our Strategies to Create Value OPERATIONS • • There is a need to improve efficiency by optimising resources and increasing productivity, which will translate into reduced costs for the Company, while ensuring that our clients obtain quality and value for money services. • • This can be achieved by putting in place the appropriate processes and systems, supplemented by technology and innovation enablers. • • Safety is a critical component of our operations as it impacts on productivity as well as the well-being of the community. We constantly look for ways to deliver our services more efficiently, including the redesign, modernisation / upgrade and enhancement of existing processes and systems through CI which includes the Innovation Garage and LEAN frameworks. One such example is the implementation of mechanisms that track our performance by asset and by location. With this greater control, we have the ability to improve the levers that directly impact our operational efficiency and profitability. A HSSE Master Plan was developed to optimise safety in our operations. We improved our engagements internally and externally to instil a ‘Goal Zero’ mentality and to set the foundation for a safety culture. We also introduced annual themes on safety to support operational excellence initiatives and improve safety performance. PEOPLE • • Given that our people are one of the main growth drivers of our business, we need to focus on mitigating any potential shortages in talent. It is the technical expertise and knowledge of our people that will give us a competitive edge in the marketplace. • • This is against the backdrop of fast-changing workplace dynamics with technological advancements, as well as increasing customer complexity. • • All these put additional pressure to continuously build new skills and capabilities to keep the organisation competitive. We improve the capabilities of our workforce through a structured learning and development programme. This includes training on both technical and functional competencies, delivered during the course of the year via in-house as well as external courses, international and local conferences. One such example is the implementation of CI training to all the employees across business divisions, in particular on LEAN process improvements. We are in the midst of launching the Edgenta Academy, which is a Centre of Excellence to inculcate technical learning and build a talent pipeline. All these initiatives are overseen by our strong leadership team that focuses on nurturing our people to acquire new skillsets, as well as inculcate a performance culture and results-driven mindset throughout the organisation. TECHNOLOGY • • The future of our industry and sectors we supervise will not be devoid of technological interventions, which will drive new innovative ideas and solutions. Automation, advanced analytics, artificial intelligence and big data will allow organisations to tap new consumer insights for more innovative solutions, amidst increasing competition. • • Organisations will increasingly need to not just embrace technology, but to be in the forefront of deploying technology in a responsible and financially- yielding manner. Organisation-wide, we see technology as a key enabler and the biggest game changer, which will allow us to optimise resources and increase productivity, thereby reduce costs, as well as improve our offerings for better customer outcomes. We continuously seek value-added partnerships and ingenious technologies, so that we can deploy and leverage on the most relevant technology solutions in delivering our offerings to clients. INDUSTRY LANDSCAPE • • Our customers’ expectations are dynamic in the face of evolving technologies, as well as the emergence of new business models and service offerings. To this end, customers are demanding more sophisticated solutions while at the same time becoming more cost and quality conscious. • • Without tailoring solutions to customers’ priorities and business imperatives, it will be challenging for organisations to make their value proposition compelling enough for customers. We focus on developing a strong commercial mindset to strengthen our solutioning and origination capabilities, so that we have the capability to design and customise our offerings to meet the needs and expectations of our customers. Given the diverse but complementary offerings of our businesses, we are able to provide synergistic and holistic offerings for the long-term benefit of our customers. Financial Review Stakeholder Information AGM Information 27 Governance Review of Sustainability Activities