2018 UEM Edgenta Annual Report

DIVIDENDS We continued to deliver equitable returns to our shareholders, with the Board putting in place a dividend policy of at least 50% and up to 80% dividend payout ratio based on PATANCI, representing an increase as compared to the previous dividend policy payout ratio of up to 70%. We believe the robust dividend policy will help drive high performance and deliver sustainable returns for our shareholders. For the year under review, the Board approved total interim dividends of 5.1%, based on share price of RM2.72 as at 31 December 2018. OUTLOOK In 2019, UEM Edgenta will continue its journey of operational excellence to innovate, increase productivity and thereon reduce costs, while still delivering excellent service quality. The focus on HSSE will also continue to feature prominently in all our efforts, as we regard our employees as our greatest assets. Given the success of UEM Edgenta is anchored on the determination and professionalism of our employees, in FY2019, the Company will look towards deepening its efforts on organisational excellence to nurture employees, improve their competencies and drive performance culture. We believe that a combination of all these strategies differentiates UEM Edgenta from its competitors and positions us for market leadership, regional growth and becoming a renowned employer of choice. On the governance and transparency side, the Government announced the roll out of the National Anti-Corruption Plan (“NACP”) which consists of 115 initiatives, six strategies and six priority areas detailing the Government’s overall efforts to overcome issues of governance, integrity and corruption. We welcome and fully support the initiative as it will help eradicate corruption and promote good governance in corporate entities. ACKNOWLEDGEMENTS On behalf of the Board, I would like to express the Group’s appreciation and thanks to Dato’ Izzaddin Idris, who stepped down as Non- Independent Non-Executive Director, for his contribution to the success of the Company. Prior to him stepping down, Dato’ Izzaddin was a member of UEM Edgenta’s Board from 5 August 2010 until 2 October 2018, overseeing the Company’s transition and galvanising our transformation across the years to where we are today. In terms of new appointments, the Company has appointed Rowina Ghazali Seth as Independent Non-Executive Director on 1 August 2018, and Dato’ Noorazman Abd Aziz as Non-Independent Non-Executive Director on 2 October 2018. I am confident that their appointments will bring significant contributions to Board effectiveness and our business growth. I would also like to give a special mention to Shahazwan Harris, who was appointed as Alternate Director to Dato’ Noorazman Abd Aziz and Non-Independent Non-Executive Director on 22 October 2018. Shahazwan, however, resigned from the Board on 28 February 2019 to take on his appointment as the Company’s Chief Strategy & Transformation Officer on 1 March 2019. We have delivered yet another year of impressive performance culminating in the Company’s strong showing financially, and for that we have to thank the management team and all our employees. I would also like to express our sincere appreciation to our clients, investors, regulatory authorities and Government agencies, members of the media and our vast network of supply chain partners. It is, with their continued support, that we are able to be the innovative and dynamic Company that we are today. Last but not least, my utmost thanks to you, our shareholder, for your unrelenting commitment to UEM Edgenta. We look forward to your continued support as we move forward to even greater heights. AMIR HAMZAH AZIZAN Chairman We continued to deliver equitable returns to our shareholders, with the Board putting in place a dividend policy of at least 50% and up to 80% dividend payout ratio based on PATANCI, representing an increase as compared to the previous dividend policy payout ratio of up to 70%. We believe the robust dividend policy will help drive high performance and deliver sustainable returns for our shareholders. Financial Review Stakeholder Information AGM Information 67 Governance Review of Sustainability Activities