MISC BERHAD INTEGRATED ANNUAL REPORT 2025 08 11 09 06 12 04 SEC 05 VALUE WE CREATE 03 10 07 13 01 02 46 www.miscgroup.com 47 www.miscgroup.com #deliveringProgress OUR INTEGRATED APPROACH TO VALUE CREATION OUR INTEGRATED APPROACH TO VALUE CREATION We apply a disciplined, integrated approach to value creation that reflects the nature of our maritime and energy-related businesses, guiding decision-making and execution at all levels of the organisation. This includes the operating environment, stakeholder expectations, risk management, material matters, ESG considerations, strategic direction and the allocation of key capitals across a diversified portfolio of businesses. The sections below outline these factors and how they interact within our value creation process. Evaluate Our Operating Landscape Monitor Risks and Mitigation Strategies Embed Best ESG Practices Allocate Our Key Capitals Strengthen Stakeholder Relationships Integrate Our Strategy Identify and Prioritise Our Material Matters 1 4 5 2 6 3 7 Our performance is influenced by global political and economic developments that shape energy flows, maritime trade and investment decisions across the shipping and offshore sectors. By monitoring macro-environmental factors, we identify emerging trends and developments that inform our strategic decisions and support our ability to respond to changes and create value. We identify material matters across financial and non-financial areas, including ESG considerations relevant to our operations, assets and stakeholder relationships. Materiality is assessed from both a financial perspective and an impact perspective, considering how sustainability-related matters may affect the Group’s performance, position and future prospects, as well as the Group’s impact on the economy, environment and society. These matters guide management focus, inform strategic priorities and support consistent decision-making and responsible value creation. Our approach reflects the alignment of our business activities with sustainability priorities and climate considerations relevant to the maritime and energy sectors. ESG considerations are incorporated into decision-making processes to support long-term value creation and reinforce transparency and accountability. The risks linked to our material matters and core businesses are managed through the Group’s risk management framework and strategic priorities. We monitor these risks regularly and apply mitigation measures that help maintain stable and sustainable operations. We recognise that addressing the evolving needs of our stakeholders is important for supporting MISC’s long-term growth as an international maritime and energy solutions provider. Through ongoing engagement with our stakeholder groups, we aim to create value and maintain constructive relationships across the areas in which we operate. Our strategy is designed to meet short- to medium-term and medium- to long-term targets in line with our mission and vision. It seeks to balance the needs of our existing businesses with the development of new energy initiatives while applying a selective and responsible approach to investment decisions. The six capitals form the core resources that underpin our operations and support the delivery of long-term, contracted and project-based activities across the Group. Market Risk R2 Cybersecurity Risk R8 Health, Safety, Security and Environment Risk R7 Geopolitical Risk R1 Financial Risk R4 Compliance and Regulatory Risk R10 Project Delivery Risk R6 Talent Risk R9 Energy Transition and Decarbonisation Risk R3 Physical Climate Risk R11 Asset Integrity and Performance Risk R5 S1 Government/Regulators S6 Communities S5 Business Partners/ Suppliers & Vendors S10 Media S2 Shareholders/Investors/ Financial Services Providers S7 Industry Peers S3 Customers S8 Academic Organisations S4 Employees S9 Trade Associations/ NGOs Refer to Engaging with Stakeholders on pages 50 to 53 for more details. Refer to Our Operating Environment on pages 56 to 63 for more details. Refer to Our Risks and Mitigation Strategies on pages 74 to 83 for more details. Refer to Delivering Our Strategy on pages 84 to 89 for more details. Refer to Our Material Matters on pages 64 to 73 for more details. Refer to the Sustainability Report 2025 for more details. E1 Geopolitics E5 Offshore Sector E4 Crude Oil Sector E8 Advancements in Technology and Digitalisation in the Maritime Industry E2 Global Economy E6 Decarbonisation of the Maritime Industry E3 LNG Sector E7 Energy Transition ENTERPRISE STRATEGY PILLARS RESILIENT CORE SP1 PROFITABLE NEW ENERGY BUSINESS SP2 DECARBONISATION SP3 M3 Ecological Impact M9 Corporate Governance and Business Ethics M1 Climate Change and GHG Emissions M7 Human Rights M4 Air Pollution M10 Cybersecurity M2 Waste Management M8 Community Engagement and Development M6 Talent Management M12 Digitalisation M5 Health, Safety and Security M11 Supply Chain Management Physical Capital Essential physical resources and infrastructure that ensure the seamless operation of our business Financial Capital Funds acquired through financing or generated by our business Intellectual Capital Intellectual abilities and intangible assets connected to our business, technical proficiency and accumulated experience Human Capital The combined expertise and knowledge embedded in our workforce to propel our business operations Social & Relationship Capital Interconnected relationships between our business and our diverse stakeholder base Natural Capital The use of natural resources such as water, fuel and materials to operate our business
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