MISC Integrated Annual Report 2020

DELIVERING OUR STRATEGY Marine & Heavy Engineering Business Review on pages 160 to 169 Marine & Heavy Engineering i. Develop engineering-related solutions and larger recurring income base e.g. marine repair business, to diversify revenue and reduce the impact on cyclicality of the business • The completion and commencement of operations of Dry Dock 3 in December 2020 will enable higher contribution from the recurring marine repair business to the segment’s bottom line • Secured three plant maintenance and turnaround contracts in 2019 and is still pursuing opportunities in modular structure fabrication and renewable energy (offshore wind farms) • Secured the following major EPCIC contracts which has bolstered the order book for the next few years: » » EPCIC contract for the Kasawari Gas Development project from PCSB » » EPCIC contract for Bokor project from PCSB • Managing cost and process efficiency is an ongoing initiative. Below are some of the efforts: Business » » Revised commercial bidding procedure for process standardisation and focused on price competitiveness and operational excellence via bid cost reduction and productivity improvement initiatives » » Developed partnership with vendors and subcontractors to develop a win-win partnership model Operations » » Reinforced internal process control and strengthened project planning via the development and continuous upgrading of integrated digital database and dashboard Capability » » Up-skilling manpower through capability development programme, focusing on Transportation & Installation capability to strengthen EPCIC offering ii. Manage cost and process efficiency Shareholders i. Broaden engagement activities to give greater visibility to investors • Organised various analyst/investor engagement sessions throughout the five years, such as annual CEO engagement sessions, investors and analysts Maritime Day at ALAM and participated in investor conferences to share business updates and showcase our assets/business segments that contribute to MISC’s business • As we were unable to organise any physical and external events for our investors due to COVID-19 pandemic and movement restrictions order in 2020, we moved our engagement sessions onto the online platform Further details of our stakeholders’ engagement are on pages 107 to 113 KEY FOCUS AREA REFERENCE TO OTHER SECTIONS KEY ACHIEVEMENTS STRATEGIC PRIORITIES MATERIAL MATTERS UNSDG PILLAR/KEY FOCUS AREA 1: TO DRIVE SUSTAINABLE VALUE FOR OUR SHAREHOLDERS PILLAR/KEY FOCUS AREA 2: TO EXCEED THE EXPECTATIONS OF OUR CUSTOMERS Stakeholder Engagement on pages 107 to 113 Customer satisfaction i. Increase standard of customer experience through efforts to exceed their expectations • Conducted MISC Group Customers Engagement Survey for our key customers in 2018 and 2020. In 2020, we achieved overall satisfaction of 89%, and the results validated that MISC Group met the expectations of our customers • In our efforts to continuously improve, an action plan with respect to the identified areas of recommendation was developed and progressively implemented • Diversification of our product line to include green vessels which are eco efficient and low carbon emission since 2016 ii. Improve customer perception and interaction • Regular engagement activities with customers by the business units and subsidiaries to better understand their needs. Due to the COVID-19 pandemic in 2020, most of our engagements were done through virtual meetings and events Anchoring Sustainability @ MISC on pages 107 to 113 // Key Messages / Highlights / Strategic Review / Sustainability / Financial Review ////// MISC Berhad / Integrated Annual Report 2020 4 94 MISC Berhad / Integrated Annual Report 2020 4 95 ////// Financial Review / Sustainability / Strategic Review / Highlights / Key Messages // Section Section