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Integrated Annual Report 2022

Integrated
Annual Report 2022

2022 Key Highlights

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  • Group Revenue

    RM 3.2

    Billion

    Profit Before Tax

    RM 154

    Million

    Dividend

    1.00

    Sen

    Net Gearing

    0.32

    Times

    Shareholders' Funds

    RM 4.5

    Billion

    Net Assets Per Share

    RM 1.01

  • Gross Development Value of Land Bank

    RM 33

    Billion

    Total Land Bank

    RM 1,153

    Acres

    External Client Construction Order Book

    RM 26.3

    Billion

  • Gender Pay Gap Between Female & Male Employees Narrowed by

    35%

    2021: -5.4% | 2022: -3.5%

    Procured

    12 GWh

    Worth of Renewable Energy Certificates (RECs)

    65%

    Reduction in Scope 1 & Scope 2 Carbon Emissions Intensity

    Contribution to the Community

    RM 0.7

    Million

    F4GBM Index Score of 3.2

    A Constituent Since 2014

    Achieved

    ISO 37001: 2016
    Anti-Bribery Management System (ABMS)

    Re-Certification

    Complied With Malaysian Code on Corporate Governance

    41

    out of 43 Practices

    3

    out of 5 Step-Ups

    ZERO

    Cybersecurity & Customer Data Breaches

    Ranked 2nd & Awarded Excellence Award

    2021 MSWG-ASEAN Corporate Governance Awards

    (out of 864 companies assessed)

    Ranked 1st in the Industry Excellence Award for the Property Sector

    2021 MSWG-ASEAN Corporate Governance Awards

    Platinum Award for Companies With Less Than RM2 Billion in Market Capitalisation

    Malaysian Institute of Accountants National Annual Corporate Report Awards (NACRA) 2022

DATUK SERI AMIR HAMZAH AZIZAN

Non-Independent Non-Executive Chairman

Chairman's Reflections

Dear Stakeholders,

As the world navigated past the pandemic and geopolitical tensions, one constant remained on everyone's agenda - addressing the threat of climate change. During the year we continued to give equal importance to our business performance and sustainability efforts, to ensure that all our stakeholders reap benefits from everything we do.

The year 2022 has been a challenging year as the lingering effects of the pandemic and geopolitical events such as the Russia-Ukraine conflict continued to weigh on the global economy. Nevertheless, many economies forged ahead with their respective recoveries as movement restrictions were fully lifted in most parts of the world in line with the diminishing threat posed by the pandemic.

Group Managing Director's Review

YEAR IN REVIEW

The year 2022 saw a steady return to normalcy and economic and business recovery across most of the world as the pandemic retreated and movement restrictions were lifted. In Malaysia, unlike the year before, there was a complete absence of movement restrictions due to COVID-19, which provided a big boost to the economy as the nation moved from the pandemic to the endemic phase.

IMRAN SALIM

Group Managing Director

Value Creating Business Model

Inputs
HC

Human Capital

IC

Intellectual Capital

NC

Natural Capital

SRC

Social & Relationship

FC

Financial Capital

MC

Manufactured Capital

Our Strategic Roadmap

Our priority has always been business sustainability and creating meaningful value for our shareholders and stakeholders.

MRCB's Growth Strategy (our Strategy) was developed with this in mind, and guides us in becoming a responsible leader in the industries we operate in. Our Strategy outlines four Growth Principles, which are driven by seven Key Action Plans.

5-year Group Financial Highlights

  • Revenue
    (RM' Million)

    RM3,205

    million

    1,871

    1,319

    1,199

    1,448

    3,205

    2018

    2019

    2020

    2021

    2022

  • Profit/(Loss) Before Income Tax
    (RM' Million)

    RM154

    million

    123

    53

    (154)

    61

    154

    2018

    2019

    2020

    2021

    2022

  • Profit/(Loss) Attributable to Equity Holders
    (RM' Million)

    RM65

    million

    101

    24

    (177)

    16

    65

    2018

    2019

    2020

    2021

    2022

  • Average Shareholders' Funds
    (RM' Million)

    RM4,522

    million

    4,825

    4,799

    4,658

    4,532

    4,522

    2018

    2019

    2020

    2021

    2022

  • Net Assets Per Share
    (RM)

    RM1.01

    1.10

    1.08

    1.03

    1.01

    1.01

    2018

    2019

    2020

    2021

    2022

  • Basic Earnings/(Loss) Per Share
    (SEN)

    1.45

    sen

    2.30

    0.54

    (4.02)

    0.36

    1.45

    2018

    2019

    2020

    2021

    2022

    Our Performance

    • Revenue

      RM 914.6

      Million

      Unbilled Property Sales

      RM 533.5

      Million

      Property Sales

      RM 478.1

      Million

      Sentral Reit & Sentral Reit Management Profit Contribution

      RM 14.9

      Million

      Land Bank

      1,153

      Acres

      GDV of Land Bank

      RM 33

      Billion

      % GDV From TODs

      78%

      Daily Average Pedestrian Traffic
      (KL Sentral)

      200,000

      Daily Average Pedestrian Traffic (Penang Sentral)

      23,000

      TOD in Petaling Jaya, PJ Sentral Garden City

    • Revenue

      RM 2,233.6

      Million

      Open Tenders

      RM 30

      Billion

      External Client Order Book

      RM 26.3

      Billion

      Unbilled Order Book

      RM 17.4

      Billion

      % Infrastructure Projects in External Client Order Book

      44%

      Value of Completed Projects in 2022

      RM 1,023.5

      Million

      An interior shot of MRCB’s first green office project, Platinum Sentral in KL Sentral CBD

    Our Approach To Sustainability

    Sustainability for Tomorrow

    Ours is a business here for the long term. For us, sustainability is a journey. However, we know that we can go further. We will continue to address matters that can close gaps and drive our sustainability journey further. This is important not only for sustainability reasons but because they are central to our business performance.

    Inputs

    • 1,650 skilled professionals driving the company forward

    • 36 health and safety programmes implemented to protect employees

    • RM905,651 invested in training and development

    • Over 50 years of industry experience, with a strong brand name as a pioneer in Transit Oriented Development and an enviable track record as a rail and road infrastructure developer

    • RM6.4 million invested to make MBS commercially viable

    • 1,153 acres of land owned for strategic development projects

    • 22 GWh of electricity consumed

    • Strong network of 1,663 approved vendors supporting the business

    • Conducted 25 investor meetings including 5 ESG-specific engagement sessions

    • Over 100,000 stakeholders engaged

    • 42 community programmes held

    • RM4.4 billion in share capital

    • RM5 billion Sukuk programme, RM200 million issued in 2022

    • RM2.1 billion in total borrowings

    • RM33 billion GDV land bank

    • RM2.9 billion GDV of ongoing property development projects

    • RM11.7 billion worth of ongoing infrastructure projects

    To Drive Our Business Activities

    • Aging Population

    • Customised Solutions

    • Proximity to Public Transport

    • Digitalisation

    • Climate Change

    • Integrated Living

    • Multi-use Design

    • Urbanisation

    • Green Development

    • Project Delivery

    • Liquidity

    • Marketing

    • Business Continuity

    • Environmental, Social and Governance

    • Regulatory

    • Safety, Health & Environment

    • Quality

    • Concentration

    Economic

    • Product Quality & Responsibility

    • Product Quality & Responsibility

    • Indirect Economic Impacts

    • Responsible Procurement & Supplier Assessment

    Environment

    • Materials Management

    • Sustainable Construction

    • Waste

    • Climate Transition Risk

    • Physical Climate Risk

    • Greenhouse Gas (GHG) Emissions

    • Biodiversity

    Governance

    • Ethics & Principles

    • Governance & Compliance

    Social

    • Health & Safety

    • Employee Engagement & Well-Being

    • Customer Engagement

    • Diversity & Equal Opportunity

    • Labour Practice

    • Local Community Engagement

    • Human Rights

    Outputs

    icon1

    Transit Oriented Developments

    icon1

    World-Class Residential Properties

    icon1

    Bespoke Commercial Green Building Developments

    icon1

    Innovative Buildings and Complex Structures

    icon1

    Quality Rail & Road Infrastructure

    icon1

    Power Projects and Rehabilitation of Rivers & Coastal Areas

    icon1

    Facilities Management & Carpark Ownership

    Outcomes