MISC BERHAD INTEGRATED ANNUAL REPORT 2025 08 11 09 06 12 04 SEC 05 VALUE WE CREATE 03 10 07 13 01 02 48 www.miscgroup.com 49 www.miscgroup.com #deliveringProgress VALUE CREATION BUSINESS MODEL VALUE CREATION BUSINESS MODEL OUR KEY CAPITALS DRIVEN BY OUR STRATEGIES AND AMBITIONS IMPLEMENTED THROUGH OUR BUSINESSES TO CREATE VALUE FOR OUR STAKEHOLDERS INPUTS OUTPUTS/OUTCOMES ACTIONS TO ENHANCE OUTCOMES TRADE-OFFS VISION MISSION MISC creates long-term value through safe, reliable operations, disciplined capital allocation and selective participation in energy transition opportunities. Business Operations Maritime Education & Training Marine Services Marine & Heavy Engineering Offshore Petroleum & Products Gas Assets & Solutions MISC ENTERPRISE STRATEGY FY2025 – FY2030 OUR WINNING FORMULA OUR FOUNDATION Partnership HSSE Project Delivery Simplification Operational Excellence Talent Sustainability Culture #deliveringProgress across our core business segments Supported by our strategic enablers Our outputs and outcomes are delivered within a dynamic operating environment, guided by our material matters and risk management approach. See pages 56 to 89 for Our Operating Environment, Our Material Matters, Our Risks and Mitigation Strategies and Delivering Our Strategy. Please refer to pages 96 to 130 for more information on our business operations. 25% Operating Cash Flow from New Energy Solutions 50% Operating Cash Flow Improvements 50% GHG Emissions Reduction in Shipping Operations Compared to 2022 baseline Compared to 2008 baseline Financial Capital • RM53.0 billion in total assets • RM34.0 billion in shareholders’ equity • RM6.1 billion in cash and cash equivalents • RM12.9 billion in debt • Profit after tax: RM1.7 billion • CFO: RM5.7 billion • Dividends declared: 38 sen per share • Credit ratings reaffirmed: BBB+ (S&P) and Baa2 (Moody’s) • Strengthened earnings visibility by securing long-term contracts • Applied disciplined capital allocation and selective capital recycling while preserving balance sheet flexibility • Strived to adopt the highest standards of governance and transparency, ensuring integrity remains a priority across the Group Allocating a significant portion of capital to CAPEX, supported by long-term charters, strengthens asset quality and earnings visibility, but places pressure on short-term cash flows. SDG STAKEHOLDERS S2 Physical Capital • 41 LNG and ethane vessels • 67 petroleum and product tankers including lightering support vessels • 12 floating assets • Marine and heavy engineering facilities • Maritime training facility • Delivered 3% of global LNG and approximately 147 million tonnes of crude and petroleum products • Asset performance: >99% vessel availability >95% vessel utilisation >97% floating asset uptime • Maintained asset reliability through structured maintenance planning and disciplined operations • Rejuvenated older vessels with more modern assets Investing in modern, eco-efficient vessels and infrastructure enhances efficiency, safety and competitiveness, but is capital intensive and places pressure on short-term returns. SDG STAKEHOLDERS S3 Human Capital • 8,630 employees across 44 nationalities • RM40.7 million invested in capability building • Average training hours per shore employee: 23 • LTIF: 0.20 • TRCF: 0.28 • Advancing technical capabilities through structured learning and targeted upskilling • Strengthened safety leadership and behavioural interventions to sustain HSSE performance • Enhanced talent management and workforce planning to improve retention and role readiness, supported by stronger accountability and enterprise mindset Talent development and workforce planning enhances capability and client responsiveness, but requires sustained investment. SDGs STAKEHOLDERS S4 Natural Capital • 47,077,798 gigajoules (GJ) of energy consumption • Reliance on natural resources, including fuel, water and land • Reduced emissions intensity through operational efficiency measures, fleet rejuvenation and adoption of eco-efficient technologies • Reinforce responsible lifecycle management of our assets Investing in environmental performance requires capital but strengthens resilience and stakeholder trust by aligning physical and natural capital with decarbonisation priorities. SDG STAKEHOLDERS S3 S4 • 36% emission reduction in shipping fleet GHG emissions intensity (compared to 2008 baseline) • Hazardous waste recycled, reused or recovered: 99.8% • Zero major oil spills recorded Intellectual Capital • Established technical expertise and operational know-how across maritime energy value chains • Collaborative partnerships supporting new energy and decarbonisation initiatives • AiPs secured: 2 • Accolades received: 17 • Dual-fuel vessels operated: 13 • Collaborations with industry partners to develop technical capabilities • Through ALAM, developed course modules aligned with current industry needs and enhanced training content for alternative fuel readiness Investing in workforce capability strengthens intellectual capital and long-term value creation, but requires sustained costs. SDGs STAKEHOLDERS S1 S6 Social & Relationship Capital • RM32.2 million invested in ALAM cadet sponsorships • Strategic partnerships with academic and industry institutions • Cadets sponsored at ALAM: 776 • New scholarships awarded: 23, in collaboration with Texas A&M Foundation, Singapore Maritime Foundation, Dream Learn Work and Newcastle University • Upgraded the facilities in ALAM to provide students with a conducive learning environment and to foster academic excellence • Continued to cultivate young talents and develop future leaders by providing scholarships in maritime education Investment in stakeholder engagement, industry collaborations and community programmes builds social and relationship capital and long-term value, but requires continued investment. SDGs STAKEHOLDERS S1 S3 S6 Decarbonisation Resilient Core Profitable New Energy Business SP3 SP2 SP1 Short to Medium Term MISC 2050 VISION Renewable Energy Value Chain The building block to manage climate change challenges with the maritime industry playing a key role Waste-to-Value Chain Critical in tackling resource scarcity and emissions as well as repurposing maritime assets Medium to Long Term MISC 2030 AMBITION
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