MISC Annual Report 2018

Investor Relations www.misc.com.my/investor-relations Business Solutions www.misc.com.my/solutions Sustainability www.misc.com.my/sustainability SCOPE & COMPLETENESS Our Report covers information on MISC Group’s operations around the world, including our Liquefied Natural Gas (LNG) Asset Solutions, Petroleum & Product Shipping, Offshore and Marine & Heavy Engineering business segments. We also cover our Integrated Marine Services, Maritime Education & Training as well as Port & Terminal Services business segments. REPORTING PERIOD This report presents the Group’s corporate and sustainability strategies and targets as well as our financial and operational performance for the financial period 1 January 2018 until 31 December 2018 (FY2018) and will be published on an annual basis. CONTEXT In this report, MISC Berhad is referred to as MISC or the Group. The content of this report prioritises areas deemed material for a Malaysian- based energy related maritime solutions and services company with a global footprint. It also incorporates references to global development, industry challenges and outlook. This Annual Report reflects MISC Berhad’s progress in adopting the Integrated Reporting <IR> Framework as outlined by the International Integrated Reporting Council and is in line with our commitment towards adhering to the best practices of corporate reporting. This Report also acknowledges the relationship between economic, environmental and social considerations and their impact on the Group while pursuing sustainable value creation. It aims to provide: • An insight as to how our strategy creates and sustains value for our various stakeholders; • A record of how we have performed in our journey towards accomplishing our strategic targets; and • An indication of where we aim to be and how we plan to address the expectations and challenges ahead. In the course of preparing this Report, we have worked with our business units, subsidiaries and key internal departments to provide a holistic perspective of the MISC Group. Some of the information we provide in this document includes our views of future prospects and therefore could change over time to reflect changes in the operating environment in which the Group operates. Further information can be found on our website Corporate Governance www.misc.com.my/corporate-governance www.misc.com.my We are progressively improving the clarity of our reporting in accordance with the <IR> Framework . This includes providing greater insight into how we interact with the external environment and utillise the six capitals to create value for our stakeholders over the short, medium and long term FINANCIAL PHYSICAL INTELLECTUAL NATURAL SOCIAL & RELATIONSHIP HUMAN SIX CAPITALS OF <IR> FRAMEWORK ABOUT THIS REPORT DATA MEASUREMENT TECHNIQUES & ASSUMPTIONS The financial data disclosed in the Financial Statements section of this report has been audited by an independent third party. Other sustainability information presented in this report is based on internal data collection systems and widely accepted calculation methodologies such as the Greenhouse Gas Protocol. The information in this report is presented on a best-effort basis and is subject to further improvement in future reporting cycles. ASSURANCE We have not undertaken third party assurance for the data disclosed in this report with the exception of financial data contained in the audited financial statements. However, our internal team has been looking into our reporting processes and are taking the necessary action for improvement. We embarked on the <IR> journey starting with our 2017 Annual Report, and we will continue to enhance our reporting over the next few years. We target for full adoption of the <IR> Framework by our 2020 Annual Report, which is to be released in 2021. START OF <IR> JOURNEY ANNUAL REPORT 2017 GRADUAL SHIFT TOWARDS <IR> FRAMEWORK ANNUAL REPORT 2018 & 2019 FULL ADOPTION ANNUAL REPORT 2020 7 MISC BERHAD ANNUAL REPORT 2018 6