2018 UEM Edgenta Annual Report

BUSINESS REVIEW - INFRASTRUCTURE SERVICES WE ARE THE NATION’S LEADING ENGINEERING, PROJECT AND INFRASTRUCTURE MANAGEMENT AND MAINTENANCE SPECIALISTS. WE PROVIDE SERVICES TO HIGHWAYS AND ROADS, AIRPORTS, MUNICIPALITIES AND URBAN TRANSIT. OUR FORTE ALSO MAKES US A PREFERRED PARTNER FOR PAVEMENT ASSESSMENTS AND SOLUTIONS, INSTRUMENTATION WORKINGS AND GEOTECHNICAL INVESTIGATIONS. 882.0 862.3 FINANCIAL PERFORMANCE (RM million) Through Technology and Innovation, we have continuously improved our services in pavement assessments and solutions, instrumentation workings and geotechnical investigations. First Performance-Based Contracting (“PBC”) Agreement for Pavement Works signed on 30 July 2018 with PLUS Won PLUS competitive tenders for upgrading of Sewage Treatment Plants (“STP”) and ancillary facilities along the North-South Expressway Invested in a MULAG branded Hydraulic Combination Arm Mower to improve safety, productivity and reduced reliance on manpower resources KEY ACHIEVEMENTS • Infrastructure Services reported positive results in 2018 and recorded higher revenue of RM882.0 million, an increase of RM19.7 million as compared to the prior year. While revenue contribution was mainly attributable to PLUS and work on the North-South Expressway, the Infrastructure Services division was also able to generate revenue from other clients for pavement and traffic management works, such as JKR for Selangor State Roads, MRT2 and LRT3, as well as environmental testing and services for various external clients. • EBITDA and PAT are comparable to prior year with a slight dip by 1.2% and 0.6% to RM115.9 million and RM82.0 million respectively due to costs incurred for the Pavement Research Centre during the year. Revenue EBITDA PAT 2018 2017 115.9 117.3 82.5 82.0 FINANCIAL PERFORMANCE (RM million) Management Discussion & Analysis UEM Edgenta Berhad Annual Report 2018 About UEM Edgenta Chairman’s Statement 92