FINANCIAL
Financial capital is defined as the pool of funds available to UMW. We maintain an optimal capital structure, good access to capital and conduct regular and prudent investment reviews.
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Revenue:
RM11.1 billion
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Market Capitalisation:
RM3.5 billion
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Total Shareholders' Fund:
RM4.0 billion
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Gearing Ratio:
40.4%
- Cost optimisation efforts led to savings of RM161.4 million in FY2021
- Built strong relationships with our principals
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Return on Equity:
7.6%
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Dividend payout:
5.8 sen
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Earnings per share:
23.0 sen
Financial Capital is crucial to our smooth operations and the continued growth and preservation of all other Capitals. We are fully cognisant of the need to balance and optimise the use of our Financial Capital to ensure the best outcomes for the sustainability of the business and interests of our shareholders.
MANUFACTURED
Manufactured capital includes the Group’s assets and infrastructure, i.e. the machinery, equipment and technology that facilitate the Group’s services to customers.
- Advanced automotive assembly plant in Bukit Raja
- Wide distribution/aftersales network
- Modernised KYB plant with greater capacity and efficiency
- High-Value Manufacturing (HVM) Park in Serendah
- Automotive: New model launches, including the Corolla Cross hybrid electric model from Toyota
- M&E: Cost reduction initiatives
- Equipment: Commissioned our first prime combined heat and power (CHP) plant for the manufacturing sector
- Equipment: Refurbished forklifts to reduce cost for customers and to reduce impact on environment
- Aerospace: Strong commitment to quality and product excellence
- Automotive: UMWT reclaimed No. 1 non-national car position in terms of sales
- Automotive: Perodua maintained its No. 1 national car position in terms of sales
- M&E: Will be launching IR4.0 enabled plant in 2023
- Equipment: 620 units of refurbished forklifts sold/rented
- Aerospace: Inducted into the 2021 Cohort of Rolls-Royce’s High Performing Supplier Group
We invest in Manufactured Capital to ensure we can remain competitive and relevant in our business. Our ability to do this is reliant on the consistent use of Financial Capital, which will be reduced in the short to medium term but will most likely increase in the long term as we build and expand our business.
HUMAN
This capital covers the skills and experience of all the Group’s employees that enable the Group to deliver its strategy, products and services to create value for stakeholders.
- Total employees: 6,405
- Reward structures linked to performance
- RM652.2 million invested in employees’ salaries and benefits
- Experienced and diverse management team and board of directors
- Organised a series of lectures for employees on technology, leadership and spirituality to help achieve CREST@2021’s objectives
- Organised the EnergizeUMW employee well-being programme, a 24/7 helpline to assist employees manage mental stress during the lockdowns and working from home
- 40% women’s representation on the Board of Directors
- Diversity: 80.20% male, 19.80% female
- Employee Engagement Survey recorded a satisfaction level of 83%
- Zero fatality cases
- Employees received 45,767 hours of training, with an average of 7.96 hours of training per employee.
- 342 employees benefited from the EnergizeUMW programme
Strong Human Capital is essential to the progress and growth of our organisation. To ensure that we can continue to advance our aspirations and organisational goals, we must invest in Human Capital to develop a resilient, capable and loyal workforce. We aspire to continue to create value for our employees as well as our organisation in our sustainability journey.
INTELLECTUAL
This capital encompasses organisational and knowledge-based intangibles that can include intellectual property such as licences or proprietary knowledge, systems or procedures.
- Corporate policies that uphold integrity such as the UMW Integrity Framework and Integrity Plan
- Strong research and development capabilities, innovation capacity, knowledge and expertise
- Equipment: Expanded the use of Robotic Process Automation to improve productivity
- Progressed new research and innovation initiatives through the UMW Innovation and Research & Development Centre
- Commercialised the Battery Revival Unique Strategy System to extend the battery life of vehicles
- Developed a range of strategic partnerships with various institutions to expand R&D collaborations
- Enhanced the CARA app for forklift services and solutions to enable the purchase of equipment
- Commissioned a water reclamation plant at the KYB factory using our membrane technology that was developed in-house
- Development of biolubricant products has reached an advanced stage and will be launched as an M&E product in 2022
Intellectual Capital helps us to not only add value to our existing products and services, but to also generate new revenue streams through innovations that meet evolving market needs. Investing in Intellectual Capital will help to obtain operational efficiencies that will boost our Manufactured Capital and the productivity of our Human Capital.
NATURAL
All renewable and non-renewable environmental resources and processes that provide goods or services that support the past, current or future prosperity of an organisation.
- Energy Usage: 329,385.09GJ
- Water Usage: 467,126.99 m3
- Launched a new Sustainability Roadmap, Redefining Sustainability, with the long-term goal of achieving net-zero carbon by 2050
- Various environmental conservation initiatives
- Renewable energy increased to 2.40% from 2.11% in the previous year
- Improved GHG emissions disclosures by reporting Scope 1 emissions (direct emissions from sources owned or controlled by UMW Group): 5,398.02 tCO2e and Scope 2 emissions (indirect emissions from purchased energy such as electricity): 40,127.31 tCO2e
- 10,000 trees planted since the start of our UMW Green Shoots Initiative (UGS) tree-planting initiative
- Reduced water consumption by 15.11% from 2020
Preserving Natural Capital is an important aspect of the value creation journey. We acknowledge that our activities have an impact on the environment and we therefore invest in ways to mitigate our impact and to optimise resource use.
Cultivating a strong, positive mindset and approach to work is critical to our sustained success.
- In 2021, we held a total of 24 talk sessions under the CREST@2021 Leadership Series, CREST@2021 Speaker Series and Siri Pengisian CREST@2021 to reinforce the attitudes and mindsets required for the CREST@2021 strategy to succeed.
Building new capabilities and promoting creativity while adopting new technologies will enable us to future-proof UMW and the business.
- In 2021, we organised an Innovation Challenge to compel our employees to innovate new products and services, as well as to improve productivity/processes and best practices in the workplace and external relations. Ten finalists were selected, with the winning team going on to present its idea at the PNB Group Innovation Challenge 2021.
Leveraging digitalisation and its related technologies will enable us to enhance productivity, add value and create new business models to generate new revenue streams.
- In 2021, the Group continued to push ahead with its digitalisation initiatives, using digital technology to create fit-for-purpose optimisations such as customised Robotic Process Automation and the enhancement of Enterprise Resource Planning for KYB-UMW, as well as the improvement of our CARA app.
SOCIAL AND RELATIONSHIP
This capital describes the relationships built between communities, stakeholders and other relevant groups. This also includes the Group’s brand and reputation management.
Maintaining and growing our Social and Relationship Capital will drive sustainable growth across all our Capitals, especially as our customers, partners and suppliers play an important role in supporting our business. In terms of communities, devoting resources to this Capital is what will essentially help us maintain our social licence to operate.