2018 UEM Edgenta Annual Report

ECONOMIC ENVIRONMENT On the macroeconomic level, 2018 was an eventful year for Malaysia due to the uncertainties associated with the 14 th General Elections, compounded further by indirect economic impact associated with fluctuating crude oil prices, the US interest hikes, the US-China trade war and the continuing Brexit saga in Europe. As a result, the Malaysian economy registered a drop in its GDP by 0.9% from the previous year. UEM Edgenta’s approach, however, was one with optimism as we believe we have the right strategies in place to overcome such challenges. We continued to improve on our core sectors and the six (6) strategic focus areas of Operational Excellence; Organisational Excellence; Health, Safety, Security and Environment (“HSSE”); Client Solutions; Technology; and Communications and Stakeholder Management. As a result of this, UEM Edgenta performed exceptionally well in the year under review, meeting our expectations for the year with net profit increasing by 21.8% on a year-on-year to RM152.4 million in FY2018. STRATEGIC APPROACH Our strategic business model is heavily reliant on operational efficiency and calls for innovative solutions to sustain our growth. We look for ways to integrate technology into our operations and innovate the way we work to ensure continuous improvement in the six (6) strategic focus areas. CHAIRMAN’S STATEMENT Dear Shareholders, WE CONTINUED TO BUILD ON THE MOMENTUM CARRIED FORWARD FROM 2017 WHERE WE HAD EMBARKED ON INNOVATIVE INITIATIVES TO ENHANCE OUR CAPABILITIES AND STRENGTHEN OUR BUSINESS RELATIONSHIPS. AS SUCH, WE MANAGED TO RECORD COMMENDABLE RESULTS FOR THE YEAR UNDER REVIEW - BREAKING BOUNDARIES AND DELIVERING RESULTS TOGETHER. AMIR HAMZAH AZIZAN Chairman REVENUE 3.3% PROFIT AFTER TAX 21.8% year-on-year year-on-year Management Discussion & Analysis UEM Edgenta Berhad Annual Report 2018 About UEM Edgenta Chairman’s Statement 64