MISC Annual Report 2019

About This Report A record of our accomplishments on the journey towards attaining our strategic targets; and An orientation of where we are, where we aim to be and how we plan to address the expectations and challenges ahead. SCOPE AND COMPLETENESS This Report covers information on the Group’s operations around the world, including LNG Asset Solutions, Petroleum & Product Shipping, Offshore Business and Marine & Heavy Engineering business segments. It also covers our Integrated Marine Services, Maritime Education & Training as well as Port Management & Maritime Services business segments. REPORTING PERIOD This Report presents the Group’s corporate strategies and targets as well as our financial and operational performance for the financial year ended 31 December 2019. CONTEXT MISC Berhad and its subsidiaries are referred to as MISC or the Group in this report. The content prioritises areas deemed material for a Malaysia-based energy related maritime solutions and services company with a global footprint. It also incorporates references to global developments, industry challenges and outlook. DATA MEASUREMENT TECHNIQUES AND ASSUMPTIONS Our reported greenhouse gas (GHG) emissions data are calculated based on the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition), Third IMO GHG Study 2014, American Petroleum Institute (API) Compendium of GHG Methodologies for the Oil and Gas Industry, Aug 2009, European Union (EU) Monitoring, Reporting and Verification (MRV) of CO 2 emissions and IMO Data Collection System (DCS) on fuel consumption. The other sustainability data presented in this report references the Global Reporting Initiatives (GRI) Standard and we will continue to work on disclosing more data on a best-effort basis. MISC Berhad has embarked on a journey to adopt the Integrated Reporting <IR> Framework as outlined by the International Integrated Reporting Council starting with our 2017 Annual Report, and this 2019 Annual Report reflects our advancement in the commitment towards adhering to the best practices of corporate reporting. We aim for full adoption of the <IR> Framework by our 2020 Annual Report which is to be released in 2021. This Report acknowledges the correlation between economic, environmental, social and governance considerations as they have an influence on how the Group conducts itself when evaluating sustainable value creation. It aims to provide: An insight into how our strategy creates sustainable value for our various stakeholders; In order to produce a comprehensive perspective of the Group, each of the business units, subsidiaries and key internal divisions were engaged in the preparation of this Report. Please scan the QR code to view our interactive report MAKING USE OF THE SIX CAPITALS We continuously strive to enhance 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 utilise the six capitals to create sustainable value for our stakeholders over the short, medium and long term. SIX CAPITALS OF <IR> FRAMEWORK Human Financial Physical Intellectual Natural Social & Relationship 51 st ASSURANCE We have not undertaken third party assurance for the data disclosed in this report except for: • Financial data contained in the audited financial statements; and • GHG emissions reported by all of our vessels operating in EU ports in accordance with Regulation (EU) 2015/75 - MRV (Monitoring, Reporting and Verification). Constant monitoring of the reporting processes is undertaken by our internal team and any changes or updates required are made to maintain continuous veracity. FORWARD-LOOKING STATEMENTS In view of the operating environment and vagaries of the industry under which the Group operates, some of the information provided in this report contains certain forward-looking statements which includes our views of future prospects. These statements and forecasts involve uncertainty as they describe future events and depend on assumptions that could change over time to reflect changes in the operating environment in which the Group operates. SUSTAINABILITY Consistent with our commitment to sustainability, we also provide extensive report on our sustainability performance and how we respond to stakeholders in relation to economic, environmental, social and governance. ABBREVIATIONS AND ACRONYMS A list of the abbreviations and acronyms used in this Report can be found on pages 399 to 401. Further information can be found on our website misc.com.my/solutions misc.com.my/investor-relations misc.com.my/sustainability misc.com.my/corporate-governance Business Solutions Investor Relations Sustainability Corporate Governance www.misc.com.my Contact us at: gcc@miscbhd.com Contact us at: investor.relations@miscbhd.com Contact us at: misc.sustainability@miscbhd.com Annual General Meeting 26 June 2020 10 a.m. Mandarin Oriental Kuala Lumpur The Group’s Corporate Disclosure Guidelines identify the following management personnel responsible for Investor Relations activities: • President/Group CEO • Vice President, Corporate Planning • Vice President, Finance • General Manager, Corporate Planning INTRODUCTION ANNUAL REPORT 2019 07 06 MISC BERHAD PEOPLE. PASSION. POSSIBILITIES