2018 UEM Edgenta Annual Report

SYSTEMS UE TRACK™ PLATFORM UE Track™ is a mobile resource optimisation platform, which encompasses a web portal, mobile and tablet app. It consists of several sub-modules to support housekeeping, facility management and other services. UE Track™ also enhances productivity, promotes automation of work processes, reduces cost and improves customer satisfaction, among other benefits. In 2018, Healthcare Support division implemented UE Track™ at an additional three public hospitals, where we deployed modules such as Housekeeping Performance Based System (“HPBS”), Unified Clocking System (“UCS”), Feedback Management System (“FMS”) and Toilet Demand Inspection System (“TDIS”). EDGENTA SMART CONNECT SOLUTIONS Our smart facilities management solution is built on Microsoft’s Azure IoT Hub, Microsoft Power BI, Urbanise, RDM and Machine Learning. With this solution, we are able to harness data insights to deliver better value and improved services to our customers. For instance, it captures real-time data from the air-conditioning, lighting, lift systems and other building services, which is then processed to flag irregularities. This further allows predictive maintenance, anomaly detection and improved performance of assets. RAMS RAMS is a comprehensive and integrated enterprise system used in Infrastructure Services for efficient and effective delivery of asset management and maintenance operation services as per requirements under Performance-Based Contacting (“PBC”). Current modules of RAMS have integrated historical and new data tagged by assets into the procurement and financial systems, as well as operational platforms. It allows users to perform remote monitoring and management of work and assets with ongoing collection of data to provide better analysis with the assistance of Artificial Intelligence. Accessibility of RAMS is made available to various stakeholders of the asset including the asset owner, governmental authorities, consultants, surveyors, managers, mainline workers, supply chain partners and auditors. BEAKON We landed a new web-based platform named BEAKON, which was rolled- out to the entire organisation in April 2018. It is a HSSE Management Information system that includes an e-reporting system that can be used by employees to highlight and report safety observations and incidents at their workplace. In the 4 th Quarter of 2018, the mobile application version of BEAKON was rolled out to enable all employees a more effective way to report safety observations and further promote and enhance the HSSE culture among our people. PROCESSES LEAN PROCESS IMPROVEMENTS & TRAINING As we progress from an input-based towards an outcome-centered delivery model, a dedicated and expert team has been established to implement LEAN initiatives under the ambit of Continuous Improvement to drive significant improvements in business and operational performance. One of the efforts being undertaken is the LEAN Programme which is a methodology of actively identifying and eradicating of all priority losses/wastages in the End to End (“E2E”) supply chain network which drives significant improvement in business and operational performance. By doing this, we aim to realise actual savings that will positively impact our growth and profitability. Case Study: Kamunting Laundry Plant How do we increase Overall Equipment Effectiveness and unlock capacity of the laundry plant? Essentially, what we needed to do is identify and reduce the priority losses i.e. lost time from planned cleaning loss, start to finish production / labour and machine breakdowns. To address this, the team introduced ‘Gemba walks’ (a practice of LEAN), drawing insights from observation of work processes to detect inefficiencies. The team also implemented Daily Management System for effective information sharing and to aid with decision making, and a breakdown tracker where a maintenance technician and production manager will be alerted promptly to resolve unplanned down time issues of the machines. These initiatives resulted in: GROUP STRATEGY - TECHNOLOGY AND INNOVATION 40% 85% 51% 1 WEEK reduction in machine downtime reduction in outsourced contractor costs increase in output of clean laundry increase in production time per month INNOVATION GARAGE In 2018, our innovation journey continued with the Company embarking on Khazanah’s Trending Innovation Disruption Entrepreneurship (“TIDE”) Programme as part of its GLC transformation initiative. The TIDE team came up with projects to achieve operational cost savings and address HSSE concerns, which are summarised as follows: •• Healthcare Support – Reduction in operating costs for Facility Engineering Maintenance Services (“FEMS”) and Biomedical Engineering Maintenance Services (“BEMS”) by 30% •• Property & Facility Solutions – Created a High Performance Building Dashboard which increased productivity by 30% and cost efficiency by 30% •• Infrastructure Services – Amongst others, improved designs for the Propel Intervention Trucks (“PIT”) and rumble strips that enhances safety by reducing exposure to live traffic by 80% Management Discussion & Analysis UEM Edgenta Berhad Annual Report 2018 About UEM Edgenta Chairman’s Statement 32

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