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We are here to make your lives better by offering results that matter and solutions that make a difference. With smart thinking and improved processes in place, we are turning ideas into a tangible and valuable reality, be it in healthcare, TURNING IDEAS INTO ACTION infrastructure, real estate or water. Our full suite of solutions are designed and implemented according to the needs of our customers. As a leader in Total Asset Solutions, we are there throughout the entire asset life cycle to serve you better. GENTA B M ED ERH UE AD FIFTY FOURTH ANNUAL GENERAL MEETING Date : Thursday, 25 May 2017 Time : 10.00 a.m. Venue : Banquet Hall Menara Korporat, Persada PLUS Persimpangan Bertingkat Subang, KM15 Lebuhraya Baru Lembah Klang 47301 Petaling Jaya Selangor Darul Ehsan + HEALTHCARE + INFRASTRUCTURE + REAL ESTATE + WATER OUR VALUES Our values guide our actions and describes how we behave in the world as a Company and an individual. We are an Enterprising entity that embraces Teamwork, Integrity and Passion with a focus on Success. Integrity Teamwork Passion We hold true to ethical Enterprising and professional Success behaviour to set the We practice teamwork, highest standards of We are passionate, mutual respect, open integrity, honesty and driven, competent and communications and trust. committed to gain empowerment while knowledge and improve We are enterprising We achieve embracing diversity and skill sets to achieve and competitive with a success by pushing inclusiveness to foster personal growth and mind-set geared towards boundaries, thinking internal and external exceptional performance. creating greater value creatively resulting in collaborations. for our stakeholders. out-of-the-box innovative ideas and solutions. REVENUE NORMALISED PBT* NORMALISED PATANCI* RM2.93 Billion RM237.8 Million RM161.1 Million DIVIDEND TO TOTAL ASSETS SHAREHOLDERS RM58.2 Million RM3.53 Billion representing payout ratio of 73% * Normalised PBT and Normalised PATANCI are derived after excluding one-off goodwill impairment for Opus Stewart Weir (“OSW”) in Canada and the Australian operations, the impairment loss on a 49.9% joint venture of OSW, as well as the acquisition expenses for Asia Integrated Facility Solutions Pte Ltd and KFM Holdings Sdn Bhd. • Grew commercial healthcare business via acquisition of 100% equity interest in Asia Integrated Facility Solutions Pte Ltd, which owns UEMS Pte Ltd, a leading integrated facilities management player in the healthcare sector across Singapore, Taiwan and Malaysia. • Strengthened facilities management market share in Malaysia and Middle East via 80% acquisition of KFM Holdings Sdn Bhd. • Formed Edgenta TMS Sdn Bhd (JV between UEM Sunrise Edgenta TMS and Medini Iskandar), to undertake township management of Medini and Iskandar Puteri in Iskandar Malaysia, Johor. • Establishment of PT Edgenta PROPEL Indonesia, which provides management consultancy & advisory services related to management of roads and toll roads. • Operationalised the Edgenta Command and Contact Centre – a centralised monitoring facility to track assets in real-time; and a centre for data intelligence and analytics for Internet of Things (IoT) and Ambient Intelligence. KEY HIGHLIGHTS 2016 INSIDE AR2016 ABOUT STRIVING PERFORMANCE CORPORATE UEM EDGENTA FOR GROWTH REVIEW FRAMEWORK Our Values 22 Chairman’s 44 5-Year Group 58 Corporate Structure Key Highlights 2016 Statement Financial Highlights 60 Organisation Chart Vision 26 Management 46 5-Year Group 62 Corporate Mission Discussion and Financial Summary Information Analysis 48 2016 Group 64 Group Milestones 6 UEM Edgenta at a Quarterly 70 2016 Event Glance Performance Highlights 8 Our Presence 49 Group Statement of 84 Media Highlights 10 Our Profile Value Added 86 Awards and 12 UEM Edgenta 50 Group Financial Recognition Moving Forward Calendar 87 Past Awards and 14 Asset Life Cycle 52 Investor Relations Recognition 16 Our Offerings 56 Employees & 18 Our Sectors Productivity LEADERSHIP SUSTAINABILITY TRANSPARENCY STATEMENT 88 Board of Directors 140 Statement on 90 Board of Directors’ 104 Sustainability Corporate Profile Statement Governance 98 Profile of 158 Statement on Risk Key Senior Management and Management Internal Control 168 Audit and Risk Committee Report FINANCIAL REVIEW ACCOUNTABILITY 173 Financial 351 Analysis of 376 Statement Statements Shareholdings Accompanying 354 Properties Held Notice of the 54th by the Group Annual General 356 Additional Meeting Compliance • Form of Proxy Information • Group Directory 357 Recurrent Related Party Transactions 370 Notice of the 54th Annual General Meeting V.I.S.I.O.N OPTIMISING ASSETS TO IMPROVE LIVES. M.I.S.S.I.O.N OUR SERVICES, COMMITMENT TO SMARTER THINKING AND IMPROVED SOLUTIONS PLACE US AT THE FOREFRONT OF THE INDUSTRY. WE CREATE OPPORTUNITIES FOR CLIENTS AND ASSETS THAT POSITIVELY INFLUENCE SOCIETY. UEM EDGENTA AT A GLANCE BASICALLY, THIS IS HOW WE ONE OF THE REGION’S LARGEST TOTAL ASSET STAND. SOLUTIONS ENTITIES WITH FY16 GROUP ASSETS OF RM 3.5 BILLION COMBINED EXPERIENCED WE HAVE FY16 OF MORE THAN SHAREHOLDERS’ 5 FUNDS OF RM 7YEARS 19KSTRONG WORKFORCE 1.4 IN TOTAL ASSET WORLDWIDE BILLION SOLUTIONS BUSINESS ABOUT UEM EDGENTA OPUS UEM EDGENTA IS LISTED ON THE MAIN MARKET STRIVING INTERNATIONAL FOR GROWTH CONSULTANTS LIMITED IS LISTED ON THE PERFORMANCE REVIEW CORPORATE & NEW ZEALAND FRAMEWORK STOCK EXCHANGE LEADERSHIP SUSTAINABILITY BURSA MALAYSIA STATEMENT SECURITIES BERHAD TRANSPARENCY FINANCIAL REVIEW ACCOUNTABILITY MARKET INTERNATIONAL PRESENCE IN CAPITALISATION OF RM2.7 12 BILLION COUNTRIES AS AT 31 MARCH 2017 7 OUR PRESENCE INTERNATIONAL PRESENCE IN 12 COUNTRIES SPANNING ACROSS ASIA, OCEANIA, NORTH AMERICA, EUROPE AND THE MIDDLE EAST NEW ZEALAND AUSTRALIA INDONESIA MALAYSIA SINGAPORE TAIWAN INDIA SAUDI ARABIA UNITED ARAB EMIRATES UNITED KINGDOM UNITED STATES CANADA 8 UEM EDGENTA BERHAD 2016 ANNUAL REPORT ABOUT UEM EDGENTA STRIVING FOR GROWTH PERFORMANCE REVIEW CORPORATE FRAMEWORK LEADERSHIP SUSTAINABILITY STATEMENT TRANSPARENCY FINANCIAL REVIEW ACCOUNTABILITY 9 OUR PROFILE UEM Edgenta Berhad (“UEM Edgenta”) is one of the region’s largest Total Asset Solutions entities. UEM EDGENTA BERHAD Listed on the Main Market of Bursa Malaysia Securities Berhad with market capitalisation of (“UEM EDGENTA”) IS RM2.7 billion as at 31 March 2017, we are a leader in Total Asset Solutions with businesses providing 3 key offerings: ONE OF THE REGION’S • Consultancy • Services • Solutions LARGEST TOTAL ASSET We offer the healthcare, infrastructure, real SOLUTIONS ENTITIES. estate and water sectors a full suite of services throughout their asset life cycles. These include consultancy, procurement and construction planning, operations and maintenance, as well as optimisation, rehabilitation and upgrades. UEM Edgenta has developed standards of Our combined expertise and ability to provide practice that are recognised and adopted by end-to-end solutions create opportunities for the industry in several countries and multilateral both our clients and ourselves. agencies such as the World Bank and the Asian Development Bank. Our global presence and Innovation is at the heart of what we do. It internal knowledge sharing enable us to share leads us to offer smarter answers to a wide and and apply our wealth of experience and varied array of asset and infrastructure expertise collaboratively across multiple questions. We aim to set new industry disciplines. benchmarks and optimise our clients’ assets throughout their life cycles. We are able to be there for our clients throughout the entire asset life cycle because accessibility, understanding and collaboration are our trademarks. We are our clients’ advisors and partners from the very first asset blueprints, right up to the management and maintenance of the day-to-day operations of the assets. 10 UEM EDGENTA BERHAD 2016 ANNUAL REPORT ABOUT UEM EDGENTA STRIVING INNOVATION FOR GROWTH PERFORMANCE REVIEW CORPORATE IS AT THE FRAMEWORK LEADERSHIP SUSTAINABILITY HEART OF STATEMENT TRANSPARENCY FINANCIAL REVIEW WHAT WE ACCOUNTABILITY DO 11 UEM EDGENTA MOVING FORWARD To Focus on 3 Key Offerings Across 4 Sectors PREVIOUS BUSINESS SEGMENTATION Asset Infra Healthcare Facilities Consultancy Services Services Services STREAMLINED BUSINESS SEGMENTATION CONSULTANCY SERVICES 12 UEM EDGENTA BERHAD 2016 ANNUAL REPORT Energy Industrial Township Environmental & Services Services Management Material Testing Services Services ABOUT UEM EDGENTA STRIVING FOR GROWTH PERFORMANCE REVIEW CORPORATE FRAMEWORK LEADERSHIP SUSTAINABILITY STATEMENT SOLUTIONS TRANSPARENCY FINANCIAL REVIEW ACCOUNTABILITY HEALTHCARE INFRASTRUCTURE REAL ESTATE WATER 13 & SUSTAINABILITYGROWTH UPGRADE RENEWAL REHABILITATION OPTIMISATION OPERATION ASSET MAINTENANCE LIFE CYCLE UEM EDGENTA PROVIDES 3 KEY OFFERINGS ACROSS 4 SECTORS WHICH COVER THE ENTIRE ASSET LIFE CYCLE 3 KEY OFFERINGS • Consultancy • Services • Solutions 14 UEM EDGENTA BERHAD 2016 ANNUAL REPORT CONSTRUCTION COMMISSIONING PROCUREMENT ABOUT UEM EDGENTA STRIVING FOR GROWTH DESIGN PERFORMANCE REVIEW CONCEPTUALISATION CORPORATE FRAMEWORK LEADERSHIP PLANNING SUSTAINABILITY & SUSTAINABILITYGROWTH STATEMENT TRANSPARENCY FINANCIAL REVIEW ACCOUNTABILITY 4 SECTORS • Healthcare• Infrastructure • Real Estate • Water 15 OUR OFFERINGS CONSULTANCY Our consultancy capabilities span across advisory and planning, engineering design and consultancy, property and community consultancy, research and development, procurement and construction planning, project and construction management, and asset and facilities