Bus iness Overvi ew 01 Sect ion 24 Ranhi ll Ut i l i t i es Berhad OUR STRATEG I C SNAPSHOT ENGINEERING SERVICES SECTOR Outputs, Performance Highlights & Achievements, Values Created Potential Risks, Issues & Challenges Opportunities & Strategic Priorities Business Strategies - Ranhill Water Technologies (“RWT”) • Successful replenishment of order book on the back of contracts secured in FY2022. • Completed the Small Sewerage Treatment System (“SSTS”), at the Penawar Toll Plaza. • Secured retender of the 2 MLD desalination WTP in Forest City, Johor. • Ventured into high-growth sectors through non-traditional clients. • Change in policies with regard to wastewater management, especially reclaimed water (Thailand). • Inability to complete construction work on time due to pandemic or other disruptive factors. • Intensified competition due to many players and new market entrants. • Challenging incoming wastewater quality. • Leverage in internal technologies to offer customised solutions and specialised facilities that offer competitive value propositions. • Leverage on established presence to pursue potentials in industrial parks in Malaysia and Thailand. • Develop strategic partnerships with OEM product manufacturers.to strengthen supply chain and drive cost efficiencies. • Growing interest (and demand) for reclaimed water use of non-potable applications. Business Strategies - Ranhill Bersekutu Sdn Bhd (“RBSB”) • Successful replenishment of order book on the back of contracts secured in FY2022. • Achieved financial close for the LSS4 Bidor, Perak project. • Undertaking of significant infrastructure projects such as flood mitigation as well as development of hospitals and the KLIA baggage handling system project. • RBSB is expanding into O&M service which has secured O&M service contract for Bidor LSS plant for 21 years. • Secured Water Supply Upgrading project from PAAB, Genting and managed to continue engineering consultancy services for 2 new Hospital projects consecutively from the same client. • Economic slowdown in 2023, a spillover economic pressure from 2022 due to rising inflation and a slow growth in construction sector effect from post Covid-19 pandemic. • New business line in O&M without past experience. However, as RBSB is constructing the plant and with continuation of key resources from project construction for mitigating this risk. • Completing the LSS4 in Bidor by December 2023 is a tight timeline but being managed. • Stiff market competition. • Differing interpretation on contract terms & conditions and stringent performance targets set by clients. • Achievement of Scheduled Commercial Operation Date (“SCOD”) for LSS 4 Bidor. • Build solid order book from RBSB’s bedrock sectors – Water Resources, Transport and Civil Infra by capitalising on existing client relationships in water projects (PAAB, Genting etc). • Continue to capitalise on RBSB’s strength and capability in Road Safety Audit (RSA) and Independent Checking Engineer (“ICE”) for roads and highway projects. • Capitalise on the completed study for National Sewerage Catchment Master Plan to bid for upcoming centralised sewerage plant projects. • Capitalise on proven project delivery track record with Jabatan Pengairan dan Saliran (“JPS”) • Increase focus and build solid capability in renewable energy and power infrastructure projects. • EPCC sector to participate and support the corporate group power program as Solar Project Developer. • Continue development, retention of talent and development of technology capabilities i.e. Solar PV engineering, Digital Engineering, Building Information Modelling (“BIM”) and 3D modelling. • Be at forefront of the industry and first choice for BIM. • RBSB is seeking opportunity to setup and diversify into Facility Management (FM) services. • Pursue data center and industrial logistic hub projects based on infrastructure experience. • Expand its geographic presence to other markets, namely Saudi Arabia, Bangladesh and Indonesia. Note: Please refer to the Management Discussion and Analysis section of this report for further details.
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