DESTINI Annual Report 2018

On the commercial aviation front, Destini, via its subsidiary SAT, reached a newmilestone by starting its Ground Handling operations in Kota Kinabalu, Sabah with the handling of a Chinese airline’s maiden flight in December. This will strategically equip SAT to operate as a full- fledged technical and ground handling service provider in Kota Kinabalu and tap into the opportunities to serve new customers given Kota Kinabalu’s geographic location and its appeal to tourists as a major gateway to Borneo. Strategic Direction While Destini has achieved many positives during the year under review, there were various challenges caused by changes in the political and economic landscape. In view of this, Destini increased its strategic focus on developing its commercial business segments to ensure a balanced portfolio for the Group while continuing to strengthen and improve its presence and capabilities in the Government segments. The results are evident in the Group’s orderbook of RM1.34 billion of which 40% is attributable to Destini’s commercial businesses. As part of this strategy, Destini has also been aggressively expanding its geographical footprint. This was achieved via the expansion of its oil & gas and marine businesses into new territories, namely Saudi Arabia, Pakistan, Brunei, Indonesia, Myanmar and Vietnam. Destini continuously strives to enhance its fundamentals while remaining competitive with its product and service offerings. With this, the Group has adopted several initiatives to grow organically within its core segments. In the commercial aviation services segment, Destini expanded its service offerings to include ground handling on top of its traditional technical handling services. This is a complementary value adding service for its customers that will contribute to improving the performance of the segment. Over at the commercial marine services segment, Destini added marine calibration services, marine automation systems and the supply and provision of MRO services for Life Saving Apparatus’ (“LSA”) in order to provide a comprehensive suite of services to better serve its customers in the marine industry. Destini has also formed a collaboration with an international marine safety expert to manufacture and co-brand LSA products. Within the land systems segment, Destini has successfully developed a prototype of an electric bus which is currently being field tested in a controlled environment. In order to enhance operational efficiencies, the Group has implemented an Enterprise Resource Planning (“ERP”) system that integrates the various business processes of its subsidiaries into a centralized system. This enables the Group to streamline processes and information thus enabling greater accuracy and collaboration between its subsidiaries and departments across the globe. Finally, Destini will also continue its focus on enhancing the Group’s talent and workforce by improving capabilities and a continued emphasis on its performance driven culture. MANAGEMENT DISCUSSION AND ANALYSIS BY PRESIDENT AND GROUP CHIEF EXECUTIVE OFFICER DESTINI BERHAD ANNUAL REPORT 2018 42