2018 UEM Edgenta Annual Report

Key Initiatives Results Implementation of PBC framework • First PBC Agreement for Pavement Works signed on 30 July 2018 with PLUS. Operational excellence and continuous improvement in service delivery • Invested in a MULAG branded Hydraulic Combination Arm Mower to improve safety, productivity and reduced reliance on manpower resources. - The MULAG Grass Cutter can complete about 84,000m² per day for 7 hours (without lane closure) which is equivalent to 14 manpower output per day for manual cutting. - Number of man-hours savings would equal to 88% per annum. - Eliminates the danger of road incidents which a human grass cutter would be exposed to. Client solutions and securing new external clients • Won PLUS competitive tenders for upgrading of STP and ancillary facilities along the North-South Expressway. • Secured Design & Build contracts for Pavement Structural Overlay from PLUS Digitisation of the Infrastructure Services business • Introduced an integrated enterprise system to track, monitor and manage infrastructure assets and maintenance operation services called Road Asset Management System (“RAMS”). • RAMS is also available as a mobile application accessible 24/7 via smart devices. RAMS will be able to do the following: - Online data collection - Remote Monitoring - Remote Managing - Machine Learning - Predictive Analysis - Contact Centre - Workforce Management Foster Health, Safety, Security and Environment (“HSSE”) mindset – Aiming Towards Goal Zero • UEM Edgenta introduced a new safety management system, BEAKON to be utilised organisation- wide. BEAKON is also able to generate reports quickly providing better analytics which can assist to make informed decisions on which areas to focus on. • The Innovation Garage projects under Infrastructure Services addressed HSSE concerns. The results were improved designs for the Propel Intervention Trucks (“PIT”) and rumble strips that enhances the safety element. • Felt leadership on the ground - conducted joint safety visits with PLUS to Penang Bridge and Menora Tunnel, attended by senior management. OUTLOOK AND PROSPECTS The ongoing roll-out of Performance-Based Contracting will set the motion for Infrastructure Services’ revamped service delivery model driving efficiency and innovation. UEM Edgenta has incurred costs for the commencement of the Pavement Research Centre (“PRC”), an investment which is part of the Company’s strategy to service the entire lifecycle value chain for the Infrastructure Services business. This will strengthen our position in the expressway and road maintenance industry, providing a strong foundation to explore opportunities to garner more business locally, as well as internationally. Under Budget 2019, the Government announced plans for building and upgrading roads and bridges in various locations around the country. Major national infrastructure projects in the pipeline include the Pan Borneo Highway, MRT2 Project and the Klang Valley Double Tracking project will bode well for the Company. KEY INITIATIVES AND RESULTS Financial Review Stakeholder Information AGM Information 93 Governance Review of Sustainability Activities