GFM SERVICES BERHAD (1033141-H)

Press Release
For Immediate Release

GFM Services’ net profit grew 99% YoY to RM2.5 million in 1QFY21
Higher revenue contribution and lower overheads contributed to growth

Kuala Lumpur, 27 May 2021 – Integrated Facilities Management service provider,

GFM Services Berhad (“GFM” or “the Company”) and its subsidiary companies (“GFM
Group” or “the Group”) has today announced its financial results for the first quarter
ended 31 March 2021 (“1QFY21”).

For the quarter under review, GFM’s revenue grew marginally by 3% year-on-year
(“YoY”) to RM32.1 million from RM31.1 million in the previous year’s corresponding
quarter (“1QFY20”). The growth is mainly on the back of revenue contribution from the
Group’s newly secured projects in 2020 to provide facilities management (“FM”) as
well as operations and maintenance (“O&M”) services at EduCity Iskandar Malaysia
(“EduCity Iskandar”) and Pengerang Integrated Complex, respectively.

The Group’s FM segment generated RM21.3 million in revenue in 1QFY21,

accounting for 66% of Group revenue, while the Concession Arrangements business
contributed a turnover of RM10.8 million, after consolidation adjustment, making up
the remaining 34% of Group revenue.

Meanwhile, GFM incurred lower administrative expenses of RM1.7 million during the
quarter, as compared to RM2.3 million a year ago, primarily due to the Group’s
ongoing cost optimization efforts. At the same time, there was a reversal of provision
of doubtful debts in 1QFY21, which contributed to higher operating income. Finance
costs also decreased to RM5.4 million from RM6.1 million in 1QFY20, mainly

GFM Services Berhad (1033141-H)

A-3A-1, Melawati Corporate Centre, Jalan Bandar Melawati, Taman Melawati, 53100 Kuala Lumpur
Tel : 03-4101 0555 Fax : 03-4162 5250
 GFM SERVICES BERHAD (1033141-H)
attributable to the repayment of borrowings and a reduction in the repayment of KP
Mukah Development Sdn Bhd’s term loan from in line with the lower overnight policy
rate (“OPR”).

Based on the reasons aforementioned above, GFM’s net profit almost doubled to
RM2.5 million in 1QFY21 from RM1.3 million in 1QFY20.

Encik Ruslan Bin Nordin, the Executive Vice Chairman of GFM said, “The
momentum of the foundation we have built in 2020 has continued into 2021 with
positive organic growth in 1QFY21 earnings as we continued to provide FM services
at the sites we manage. We are also pleased to have expanded our portfolio as GFM
secured a contract extension to manage EduCity Iskandar for another 2 years from 1
April 2021 to 31 March 2023, with a total award value of RM6.3 million. This stands as
a testament to the quality of service we provide to our clients. As we move forward,
we remain focused on bidding for more contracts to replenish our orderbook, which
stood at RM1.18 billion as at 31 March 2021.”

“As for our concession business, we continue to serve our mandate providing FM
services at UiTM Mukah campus in Sarawak until the end of the concession tenure in
2035. At the same time, we are also exploring opportunities that can grow the Group’s
recurring income streams in order to build the Group’s resilience. We are currently in
the midst of acquiring up to 70%-stake in Amzass (M) Sdn. Bhd., a company that is
authorised to upgrade existing facilities of the Northbound and Southbound Bemban
lay-bys in the state of Melaka into a rest and service area. Upon completion, GFM will
gain access to this project, enlarging our scope of services and portfolio.”

“Operationally, we endeavour to raise our technological competencies and service

delivery by deploying Internet of Things (“IoT”) solutions at more project sites this year.
Looking ahead, GFM remains resolute in executing our strategic initiatives as we strive

GFM Services Berhad (1033141-H)

A-3A-1, Melawati Corporate Centre, Jalan Bandar Melawati, Taman Melawati, 53100 Kuala Lumpur
Tel : 03-4101 0555 Fax : 03-4162 5250
 GFM SERVICES BERHAD (1033141-H)
to become a market leader in the FM space and deliver greater value to our
stakeholders.”

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About GFM Services Berhad

GFM Services Berhad (“GFM”) was established to provide a one stop integrated
facilities management solution. GFM offers companies the opportunity to focus on their
core business through outsourcing of their non-core business activities. The company
currently employs upwards of 450 personnel and is supplemented by more than 300
associates.

The company’s effective and consistent service delivery is primarily guided by their
well-established Business Process Manual that comprises of proven work processes
and industry best practices. Coupled with the experience and expertise of the top
management, GFM has been able to achieve service delivery consistency regardless
of facility types, size, complexity, and geographical locations.

The subsidiary company of GFM, Global Facilities Management Sdn. Bhd. is a

certified company in ISO 9001: 2015 Management System, ISO 14001:2015
Environmental Management System, and OHSAS 18001:2007 Occupational, Health
and Safety Management System. Over the years, it had also won various international
awards namely Frost & Sullivan Best Practice Award 2012, NBO Group Achievement
Award 2011 and Frost & Sullivan Industrial Technologies Award 2007.

Released on behalf of GFM Services Berhad by Capital Front Investor Relations

Media Contact:

Muzlifah Idros
Capital Front Investor Relations
hp +6 (019) 372 1654
email muzlifah@capitalfront.biz

GFM Services Berhad (1033141-H)

A-3A-1, Melawati Corporate Centre, Jalan Bandar Melawati, Taman Melawati, 53100 Kuala Lumpur
Tel : 03-4101 0555 Fax : 03-4162 5250