Dagang NeXchange Berhad Annual Report 2018

LEADING BUSINESS INNOVATION AND GROWTH DNeX underwent a solid year of immense growth and business innovation in financial year 2018, with total growth of 5 new companies. Incorporation Acquisition DNeX VMS Sdn. Bhd. Genaxis Group Sdn. Bhd. PT Dagang Net Indonesia Innovation Associates Consulting Sdn. Bhd. DNeX Clean Utilities Sdn. Bhd. AN OVERV I EW OF OUR BUS I NE SS I NVE STMENTS , M I L ESTONE S AND STRAT EG I ES I N F I SCAL 2 018 • DNeX acquired exclusive rights to offer EC-Council Global Services cyber security services in Malaysia, whereby DNeX will be able to provide cyber security consultancy and advisory services based on the delivery model, methodology and brand of EC-Council Global Services. (2 Jan 2018) • Dagang Net acquired two leading consulting and accounting system services companies. Through the acquisition, Dagang Net now owns 51% equity interest of Genaxis, and this acquisition gives Dagang Net an indirect equity interest of 60% in Innovation Associates Consulting Sdn. Bhd. (“IAC”). (26 Jan 2018) • Dagang Net and Audatex has signed a memorandum to offer a system for automotive insurance repair. The system is aimed to offer transparency and efficiency to automative claims process by providing more accurate vehicle collision damage estimation and insurance claims handling, and comprehensive repair estimate including parts, labour and paint. (9 Aug 2018) 80 Dagang NeXchange Berhad Annual Report 2018 Sustainability Report INVESTMENT IN GROWTH New Business Lines • DNeX, through subsidiary company DNeX Oilfield Services Sdn. Bhd., signed a contract agreement to provide directional drilling equipment to Baker Hughes Malaysia Sdn. Bhd. ("BHGE"). Under the agreement, DNeX will serve as an equipment support provider to BHGE for its directional drilling operations in Asia Pacific and Middle East Countries. (26 Feb 2018) • DNeX’s associate company, Ping Petroleum Limited (“Ping”) received two licences in the North Sea. The approval was given by the Oil and Gas Authority of the United Kingdom to Ping, who has partnered with two established oil and gas companies in the UK namely Summit Petroleum Ltd and Azinor Catalyst Limited on these licences. The licences gave access to three blocks, adding significant breadth in diversity to Ping’s existing portfolio. (20 Jun 2018) STRENGTHEN BUSINESS PLATFORMS New Contracts OURPROFIT Our profit strategy 1. We build competitiveness for our customers through our products, solutions and services; 2. We identify effective mechanism that maximise productivity, creativity and results; 3. We take the initiative to work with our stakeholders to manage project and reputational risks and identify relevant business trends; and 4. We adhere to the highest compliance standards and promote integrity as one of our core values and code of conduct, which fights corruption and fraud. Building long term value in the markets where we operate Across our business units, our core mission is to deliver solutions that enable our customers to operate at peak efficiency and performance. We help customers to automate processes, maximise reliability, increase productivity, reduce waste, and avoid unexpected issues. Similarly, we focus on the same priorities within our own business operations, thus enabling us to shape a future that is sustainable and ideal for our stakeholders and the communities we work within. Advancing Process Excellence We believe that business profitability and process excellence go hand in hand in ensuring sustainable business operations, profitability and growth. By establishing operational “best practices” standards on serving our customers and operating the business, our officers and employees will be guided in conforming to our practices on sustainability. (Continued next page)