MISC Annual Report 2018

INTRODUCTION Theme Rationale 00 Logo Rationale 01 About MISC 02 Corporate Information 05 About This Report 06 HIGHLIGHTS OF THE YEAR Key Highlights of 2018 10 50 th Anniversary of MISC: 12 Our Journey Through the Years 14 OUR BUSINESS Our Brands and Businesses 22 Moving Energy to Build a Better World 24 Our Fleet and Assets 30 Our Global Presence 31 Where We Operate 32 Group Corporate Structure 34 OUR LEADERSHIP Board of Directors 38 Our Board at a Glance 40 Profiles of the Board of Directors 41 Management Committee 50 Profiles of Management Committee 52 OUR PERFORMANCE How We Create Value 62 Our Strategic Focus 64 Key Risks & Mitigation 66 Financial Calendar 68 Group Financial Review 69 Five-Year Group Financial Performance 70 Corporate Events & Achievements 2018 72 Chairman’s Statement 84 President/Group CEO’s Review 86 Management Discussion & Analysis 92 Investor Relations Report 136 OUR COMMITMENT TO SUSTAINABILITY Sustainability Statement 142 Sustainability Overview & Milestones 144 Sustainability Strategy Updates 150 Our Sustainability Focus in 2018: Environment 159 OUR GOVERNANCE Corporate Governance Overview Statement 168 Nomination & Remuneration Committee Report 180 Board Audit & Risk Committee Report 186 Statement on Risk Management & Internal Control 194 Statement of Directors’ Responsibility 202 Additional Compliance Information 203 FINANCIAL STATEMENTS Directors’ Report 206 Statement by Directors 212 Statutory Statements 212 Income Statements 213 Statements of Comprehensive Income 214 Statements of Financial Position 215 Statements of Changes in Equity 218 Statements of Cash Flows 221 Notes to the Financial Statements 224 Independent Auditors’ Report 359 OTHER INFORMATION Statistics on Shareholdings 368 Properties Owned by MISC Berhad and Its Subsidiaries 371 List of Vessels and Assets 373 50 TH ANNUAL GENERAL MEETING Notice of Annual General Meeting (AGM) 384 Administrative Notes Relating to the 50 th AGM 388 Proxy Form Please scan the QR Code to view our interactive report Further information can be found on our website www.misc.com.my CONTENTS CORPORATE INFORMATION BOARD OF DIRECTORS REGISTERED OFFICE Level 25, Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : +603 2264 0888 Fax : +603 2273 6602 Website : www.misc.com.my Email : miscweb@miscbhd.com AUDITORS Ernst & Young Level 23A, Menara Milenium Jalan Damanlela Pusat Bandar Damansara 50490 Kuala Lumpur Tel : +603 7495 8000 Fax : +603 2095 5332 SHARE REGISTRAR Boardroom Share Registrars Sdn. Bhd. (formerly known as Symphony Share Registrars Sdn. Bhd.) Level 6, Symphony House Pusat Dagangan Dana 1 Jalan PJU 1A/46 47301 Petaling Jaya Selangor Darul Ehsan Tel : +603 7841 8000 / 7849 0777 Fax : +603 7841 8151 / 8152 FORM OF LEGAL ENTITY Incorporated on 6 November 1968 as a public company limited by shares under the Companies Act, 1965 PLACE OF INCORPORATION AND DOMICILE Malaysia STOCK EXCHANGE LISTING Main Market of Bursa Malaysia Securities Berhad Stock Name : MISC Stock Code : 3816 AUDIT AND RISK COMMITTEE Chairman DATO’ SEKHAR KRISHNAN Members LIM BENG CHOON DATUK NASARUDIN MD IDRIS LIZA MUSTAPHA NOMINATION AND REMUNERATION COMMITTEE Chairman DATUK NASARUDIN MD IDRIS Members LIM BENG CHOON MOHD YUSRI MOHAMED YUSOF COMPANY SECRETARIES FADZILLAH KAMARUDDIN (LS 0008989) NORIDAH KHAMIS (LS 0010240) CHAIRMAN, INDEPENDENT NON- EXECUTIVE DIRECTOR SENIOR INDEPENDENT NON- EXECUTIVE DIRECTOR INDEPENDENT NON- EXECUTIVE DIRECTORS NON-INDEPENDENT NON- EXECUTIVE DIRECTORS PRESIDENT/GROUP CEO NON- INDEPENDENT EXECUTIVE DIRECTOR BOARD OF DIRECTORS DATO’ AB. HALIM MOHYIDDIN DATO’ SEKHAR KRISHNAN LIM BENG CHOON DATUK NASARUDIN MD IDRIS DATO’ ROZALILA ABDUL RAHMAN TENGKU MUHAMMAD TAUFIK MOHD YUSRI MOHAMED YUSOF LIZA MUSTAPHA YEE YANG CHIEN 5 MISC BERHAD ANNUAL REPORT 2018 4