Table of Contents 1 411

MISC Annual Report 2019

ANNUAL REPORT 2019 1
CONTENTS 2-3
INTRODUCTION 8-9
About This Report 8-9
About MISC 12-13
Corporate Information 12-13
THE YEAR IN REVIEW 14-15
Chairman’s Message 16-17
President/Group CEO’s Review 20-21
Key Highlights 2019 28-29
OUR BUSINESS 30-31
Special Focus: The Shipping Industry and Business 32-33
MISC's History and Journey 36-37
Our Brands and Businesses 40-41
Moving energy To Build A Better World 46-47
Where We Operate 48-49
OUR VALUE CREATION STORY 50-51
Overview 52-53
Our Strategic Focus 54-55
Our Operating Environment 56-57
Risks and Opportunities 60-61
How We Create Value 64-65
Delivering Our Strategy 66-67
Stakeholder Engagement 72-73
OUR FINANCIAL PERFORMANCE 76-77
Group Financial Review 78-79
Financial Calendar 82-83
Five-Year Group Financial Performance 84-85
OUR BUSINESS PERFORMANCE 86-87
Management Discussion & Analysis 88-89
LNG Asset Solutions 88-89
Petroluem & Product Shipping 94-95
Offshire Business 102-103
Marine & Heavy Engineering 108-109
Integrated Marine Services 114-115
Port Management & Maritime Services 120-121
Maritime Education & Training 124-125
People Development 128-129
Operating Safely and Sustainably 136-137
Operating Responsibly 150-151
2019 Key Corporate Events & Achievements 158-159
OUR SUSTAINABILITY 162-163
Anchoring Sustainability@MISC 164-165
OUR LEADERS 170-171
Our Board at a Glance 172-173
Profiles of the Board of Directors 172-173
Profiles of the Management Committee 182-183
OUR GOVERNANCE 188-189
Corporate Governance Overview Statement 190-191
Nomination and Remuneration Committee Report 204-205
Board Audit and Risk Committee Report 212-213
Statement on Risk Management & Internal Control 220-221
Statement of Directors’ Responsibility 230-231
Additional Compliance Information 230-231
FINANCIAL STATEMENTS 232-233
DIRECTORS’ REPORT 234-235
STATEMENT BY DIRECTORS 240-241
STATUTORY DECLARATION 240-241
INCOME STATEMENTS 240-241
STATEMENTS OF COMPREHENSIVE INCOME 242-243
STATEMENTS OF FINANCIAL POSITION 242-243
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY 246-247
STATEMENTS OF CASH FLOWS 248-249
NOTES TO THE FINANCIAL STATEMENTS 252-253
1. CORPORATE INFORMATION 252-253
2. SIGNIFICANT ACCOUNTING POLICIES 252-253
3. REVENUE 280-281
4. OTHER OPERATING INCOME 282-283
5. PROFIT BEFORE TAXATION 282-283
6. STAFF COSTS 284-285
7. DIRECTORS’ REMUNERATION 284-285
8. GAIN ON ACQUISITION OF BUSINESSES 286-287
9. FINANCE INCOME 286-287
10. TAXATION 286-287
11. EARNINGS PER SHARE 288-289
12. DIVIDENDS 288-289
13. SHIPS, OFFSHORE FLOATING ASSETS AND OTHER PROPERTY, PLANT AND EQUIPMENT 290-291
14. PREPAID LEASE PAYMENTS ON LAND AND BUILDINGS 304-305
15. INTANGIBLE ASSETS 304-305
16. INVESTMENTS IN SUBSIDIARIES 306-307
17. INVESTMENTS IN ASSOCIATES 308-309
18. INVESTMENTS IN JOINT VENTURES 308-309
19. OTHER FINANCIAL ASSETS AND FINANCIAL LIABILITIES 312-313
20. INVENTORIES 322-323
21. TRADE AND OTHER RECEIVABLES 322-323
22. DUE FROM/(TO) CUSTOMERS ON CONTRACTS 322-323
23. CASH, DEPOSITS AND BANK BALANCES 324-325
24. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE 326-327
25. TRADE AND OTHER PAYABLES 326-327
26. SHARE CAPITAL AND TREASURY SHARES 328-329
27. OTHER RESERVES 328-329
28. DEFERRED TAX 330-331
29. DEFERRED INCOME 332-333
30. CASH FLOWS FROM INVESTING ACTIVITIES 332-333
31. CASH FLOWS FROM FINANCING ACTIVITIES 334-335
32. RELATED PARTY DISCLOSURES 334-335
33. COMMITMENTS 336-337
34. CONTINGENT LIABILITIES 336-337
35. SEGMENT INFORMATION 336-337
36. FAIR VALUE DISCLOSURES 344-345
37. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES 348-349
38. CAPITAL MANAGEMENT 360-361
39. SUBSIDIARIES AND ACTIVITIES 362-363
40. ASSOCIATES AND ACTIVITIES 368-369
41. JOINT ARRANGEMENTS AND ACTIVITIES 368-369
42. SIGNIFICANT EVENTS 370-371
INDEPENDENT AUDITORS’ REPORT 374-375
ADDITIONAL INFORMATION 382-383
MISC GROUP STRUCTURE 384-385
PROPERTIES OWNED BY MISC BERHAD AND ITS SUBSIDIARIES 384-385
LIST OF VESSELS AND ASSETS 388-389
STATISTICS ON SHAREHOLDINGS 394-395
LIST OF ABBREVIATIONS 398-399
ANNUAL GENERAL MEETING 402-403
Notice of Annual General Meeting 404-405
Form of Proxy 408-409

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