Malaysia Airports Holdings Berhad 36 >> Our Value Creation Strategy Short to Medium Term Focus Performance Indicators 1) Continuously optimise cost through strict cost control, contract review and manpower management in order to improve and strengthen financial performance and position. 2) Strengthen regulatory framework through the new Operating Agreements (New OA) that could set the Group on a stronger fundamental footing. Expected to be concluded and signed in 2021, the New OA will be positive for the nation’s development in balancing the social agenda and impact. This includes enabling airport development across Malaysia via a more robust and sustainable range of funding models in order to deliver the investments required into the airport system. The finalisation of the New OA is expected to serve as a catalytic economic growth driver for the nation, while maintaining the regional competitiveness of the airport system. 3) Plan to maintain credit rating with RAM and Moody’s in the event further funding is required. Nevertheless, the Group still has undrawn facilities of RM1.8 billion through its existing sukuk programme, in addition to the RM1.1 billion revolving credit facilities the Group had obtained from the banks in order to maintain the Group’s liquidity going forward. 4) Revolutionise KUL where some initiatives include improving efficiency at checkpoints and enhancing processes during departure and arrival. Capitals Affected : Link to Material Matters : Manufactured Transportation and Connectivity Intellectual Regulatory Compliance Human Financial Economic Performance OU R S T R A T E GY S U R V I VA L A N D R E C O V E R Y ( 2 0 2 1 - 2 0 2 2 ) Target 2020 Operational expenses containment 20% core operational expense savings 26.1% core operational expense savings obtained CAPEX cash conservation Reduction from RM1,800.0 million to RM300.0 million Conserved cash by reducing CAPEX spend to only RM189.7 million Maintain credit ratings AAA ratings with stable outlook from RAM Maintained AAA ratings with stable outlook Mitigate liquidity risks Secure additional credit lines Secured RM1.1 billion in revolving credit facilities
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