MISC BERHAD INTEGRATED ANNUAL REPORT 2025 08 11 09 05 12 SEC 06 STRATEGIC REVIEW 10 07 13 01 02 03 04 84 www.miscgroup.com 85 www.miscgroup.com #deliveringProgress * This refers to adjusted cash flows from operations (CFO) which excludes payments for costs relating to turnkey activities for an FPSO conversion and incorporates dividends received from joint ventures, associates and other investments. ** This amount excludes one-off FSU prepayments. Adjusted CFO* (USD million) 1,412.3** 1,200.0 1,487.6 Baseline 1,254.7 DELIVERING OUR STRATEGY DELIVERING OUR STRATEGY MISC 2030 AMBITION AND ENTERPRISE STRATEGY As part of realising our MISC 2030 Ambition, the Group has established the MISC Enterprise Strategy FY2025 - FY2030 anchored on three pillars. The Resilient Core pillar provides a strong, cash-generating foundation delivering long-term earnings visibility and stable returns that enable us to protect, grow and fund the next phase of transformation. The Profitable New Energy Business pillar reflects a deliberate pivot into new energy value chains to ensure MISC remains competitive. Decarbonisation pillar reflects our responsibility to respond to evolving regulations and reduce our GHG emissions. Execution of the MISC Enterprise Strategy, is driven across all business units and corporate enablers, reinforced by key performance indicators. Through this approach, we seek to balance performance today with relevance tomorrow, creating sustainable value in an increasingly complex and uncertain world. At the heart of our strategy is the Resilient Core strategic pillar, which remains fundamental to the Group’s performance and value creation. During the year, we continued to strengthen our core businesses through rejuvenating and expanding our diversified portfolio anchored on secured long-term contracts while maximising value from existing assets, complemented by targeted divestments and cost optimisation. RESILIENT CORE SP1 Secured multiple contracts and supported growth expansion through fleet rejuvenation and strategic investments in conventional business: • VLEC charters secured with PTT • Dual-fuel Suezmax newbuild contracts signed with SHI • Entry into Brunei through the maiden FPU project with PCBL • MHB secured WHP EPCIC contracts with VESTIGO Strong operational performance was sustained across the fleet, supported by high reliability and utilisation levels: • Fleet utilisation maintained above 95% • Offshore asset uptime sustained above 97% • Fleet availability maintained above 99% Demonstrated strong project execution through the timely delivery of key assets and projects: • Seven LNGCs delivered to QatarEnergy under a consortium partnership • FSU Puteri Delima Satu delivered to PETRONAS LNG Regasification Terminal Pengerang KEY ACHIEVEMENTS PORTFOLIO REJUVENATION AND GROWTH MAXIMISE ASSET AVAILABILITY AND UTILISATION ASSET MONETISATION COST OPTIMISATION Unlocked asset value through disciplined portfolio recycling, including targeted divestments: • Two legacy steam turbine LNGCs, Puteri Delima and Puteri Nilam, disposed • Two VLCCs, Bunga Kasturi Lima and Bunga Kasturi Enam, disposed Delivered cost efficiencies through digitalisation, operational optimisation and disciplined cost management: • Digitalisation initiatives accelerated to automate processes and streamline workflows • Strengthened cost discipline through fleet-wide cost optimisation SUPERIOR PROJECT EXECUTION MISC ENTERPRISE STRATEGY FY2025 – FY2030 Strengthening and rejuvenating MISC’s core operations through portfolio optimisation and capital recycling to sustain long-term resilience and competitiveness. Building a commercially viable new energy portfolio to diversify revenue streams and expand MISC’s participation in emerging energy value chains. Accelerating MISC’s transition to lower-emission operations while ensuring compliance with international environmental standards. FOCUS AREAS RESILIENT CORE PROFITABLE NEW ENERGY BUSINESS DECARBONISATION • Portfolio rejuvenation and growth • Maximise asset availability and utilisation • Superior project execution • Asset monetisation • Cost optimisation • Carbon, offshore wind and future fuels value chains • Strategic partnerships to monetise new solutions • Integrated value offerings • Energy efficiency • Abatement technologies • Future fuels • Dual-fuel asset investment • Responsible supply chain initiatives OUR FOUNDATION HSSE Simplification Talent Culture MISC 2030 AMBITION 25% CFO from New Energy Solutions 50% GHG Emissions Reduction in Shipping Operations** 50% CFO* Improvements #deliveringProgress SP2 SP1 SP3 Key Capitals: M1 M2 M10 M3 M4 M5 M6 M7 M8 M9 M11 M12 Material Matters: Risks: E5 E1 E2 E3 E4 Operating Environment: R1 R10 R5 R3 R7 R2 R11 R6 R4 R8 R9 For details, refer to the Business Review section on pages 96 to 125. 2023 2024 2025 STRENGTHENING THE FOUNDATIONS FOR OUR ENTERPRISE STRATEGY The execution of our Enterprise Strategy is underpinned by four core elements: HSSE, simplification, talent and culture. HSSE remains fundamental to how we operate. Through our Care & Comply principles, we reinforce a proactive safety culture, supported by preventive practices, Stop-Work Authority and data-driven tools. This enables safe, reliable operations in an increasingly complex and regulated environment, where safety and environmental performance are critical. Simplification improves operational efficiency and productivity. We continue to leverage digital technologies and integrated systems to provide clearer insights and enable faster, more informed decisions, unlocking business value and strengthening organisational focus. Talent remains central to sustaining operational excellence and supporting future growth. We continue to build capability across our core businesses and emerging areas, ensuring our workforce is equipped to meet evolving needs. Culture is anchored in Accountability, Transparency and Efficiency (ATE), reinforcing an enterprise mindset that promotes ownership and a more agile, performance-driven organisation, strengthening alignment and delivery across the Group. Together, these foundations strengthen MISC's resilience, adaptability and competitiveness. PROGRESS TOWARDS THE MISC 2030 AMBITION *Compared to 2022 baseline (approximately USD1.2 billion) **Compared to 2008 baseline
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