MISC BERHAD INTEGRATED ANNUAL REPORT 2025 08 11 09 05 12 SEC 06 STRATEGIC REVIEW 10 07 13 01 02 03 04 88 www.miscgroup.com 89 www.miscgroup.com #deliveringProgress DELIVERING OUR STRATEGY DELIVERING OUR STRATEGY Taken together, this reinforces the resilience of our Enterprise Strategy and our ability to deliver on the MISC 2030 Ambition. As geopolitical, regulatory, and market conditions continue to evolve, we will remain agile in calibrating our approach, ensuring that we continue to capture opportunities while delivering sustainable, long-term value. MISC 2050 VISION In line with our medium-term Enterprise Strategy and Sustainability Strategy, we have developed the MISC 2050 Vision to future-proof our business. This longer-term roadmap addresses the evolving risks arising from an increasingly complex regulatory environment shaped by the global decarbonisation agenda. It also focuses on strengthening organisational resilience and adaptability, ensuring the Group remains relevant while progressing towards its net-zero GHG emissions commitment by 2050. While LNG continues to play an important role as a lower-emission fuel in the energy transition, we anticipate a gradual shift towards ultra-low emission vessels to meet future regulatory and operating requirements. In this context, we are progressing our roadmap to capture emerging opportunities within a transitioning energy landscape. MISC 2050 Vision outlines our longer-term strategic direction to reshape the Group’s economic, environmental and societal contributions. It identifies opportunities to expand into new businesses and asset portfolios, aligned with the global transition towards a more circular and sustainable economy. PATHWAYS TO 2050 As we move forward, we continue to establish our presence in these two opportunity pillars through maritime-related solutions, leveraging our existing capabilities and strengths, while maintaining a disciplined approach to scaling over time. Opportunity Area - Pillar 2 Opportunity Area - Pillar 1 RENEWABLE ENERGY VALUE CHAIN WASTE-TOVALUE CHAIN CROSS VALUE CHAIN DEPENDENCY FOR BOTH ENERGY AND RESOURCES Strategic Context • Common macro trends identified from global 2050 scenarios: climate change, resource scarcity and waste generation • Two opportunity pillars were identified where MISC has the “right to play” and the “right to win” Where We Can Turn Risks Into Opportunities Leverage our strengths/capabilities by prioritising the following areas: • Maritime-based and asset leasing business model • Repurpose existing maritime assets across the industry • Expand our present skill sets through reskilling and retooling our people In response, we have identified two key opportunity pillars: • Renewable Energy Value Chain, which supports the maritime sector’s role in addressing climate-related challenges • Waste-to-Value Chain, which focuses on resource efficiency, emissions reduction and the repurposing of maritime assets ADVANCING OUR STRATEGY TOWARDS MISC 2030 AMBITION Looking ahead, the Group remains guided by a clear and consistent Enterprise Strategy focused on strengthening the Resilient Core, building Profitable New Energy Businesses and advancing Decarbonisation in a disciplined manner. We have carried strong momentum into 2026, securing additional long-term, contract-backed projects across both our Resilient Core and Profitable New Energy Business strategic pillars early in the year. However, the continued delivery of this strategy depends not only on strategic intent, but also on a set of underlying conditions that enable resilient and adaptive execution over time, such as the following: Operating Environment The Group’s ability to deliver on its MISC 2030 Ambition is underpinned by the continued relevance and robustness of the maritime and energy sectors. Against this backdrop, global energy demand is expected to grow, with oil and gas remaining part of the energy mix for the foreseeable future as the energy transition progresses. In this context, the maritime sector will continue to play an essential role across the energy value chain, supporting both the transportation of conventional and future fuels, as well as the construction and deployment of offshore energy solutions. Execution Capability Delivery of the Enterprise Strategy also depends on the Group’s internal capacity and capability to execute consistently in complex and capital-intensive environments. This is underpinned by our strong track record in securing long-term contracts, consistent project delivery, operational reliability and strong HSSE performance, which position the Group to capture opportunities across both existing and new energy segments. Building on these foundations, we continue to strengthen our execution capability through strategic partnerships and targeted technology adoption, while investing in talent development to support evolving business needs. Navigating Uncertainty The operating environment remains complex, shaped by geopolitical developments, market volatility and regulatory fragmentation. The Group continues to navigate these conditions through disciplined capital allocation and robust risk management, supported by a portfolio anchored on long-term contracts with strong counterparties, providing stability and earnings visibility across cycles. While the pace and direction of the energy transition remain uncertain and uneven across regions, our strategy of strengthening our core businesses while selectively investing in profitable new energy businesses and decarbonisation initiatives positions us to pivot in response to evolving conditions, maintaining competitiveness while managing risks. Renewable Energy Value Chain To strengthen our readiness to participate in the evolving renewable energy landscape, we are progressing selected initiatives in offshore wind. In this regard, we are building capabilities in the delivery and installation of renewable energy infrastructure, including ongoing progress by MHB on the EPC for the offshore substation platforms under Tennet's 2GW Programme. In parallel, we signed a shipbuilding agreement in February 2026 for the first hybrid-electric ethanol-ready DPST, further strengthening transition-ready fleet capabilities. Waste-to-Value Chain Concurrently, we are strengthening our role in the Waste-to-Value chain ecosystem through strategic initiatives and collaborations. We have taken definitive steps to advance CCS solutions, including ongoing progress by MHB in the EPCIC for the Kasawari CCS Project, as well as a long-term charter secured in early 2026 with Northern Lights JV DA for the newbuild of an LCO₂ carrier in collaboration with K Line. These achievements position MISC to play a meaningful role in enabling the safe storage and transport of captured carbon, supporting global decarbonisation efforts. Together, these developments mark the early stages of our journey in addressing climate, resource and regulatory challenges. Through participation across renewable energy and waste-to-value ecosystems, MISC is strengthening its position in the energy transition while building a resilient, commercially disciplined and forward-looking business aligned with our 2050 pathway.
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