Integrated Annual Report 2021

STRATEGIC REVIEW 2021 has been a year of resilience for MISC, as we navigated the macroeconomic headwinds that shaped our operating landscape to execute our strategic initiatives. Bearing in mind the sizeable number of ongoing projects to be delivered to our customers and the pandemic’s impacts on limiting growth opportunities, we decided to train our focus on ensuring excellence in project execution and delivery while employing a more selective approach in our pursuit of new growth projects. Our considered approach ensures that we remain on track with our value creation journey of sustainable growth and profitability, while at the same time managing our risks. We began 2021 with 19 projects in hand, comprising 14 assets under construction and 5 acquisition VLECs pending delivery, as a result of us actively pursuing our growth agenda and recording rapid growth in new contract wins and asset acquisitions over the past few years. The largest of these is our Brazil FPSO project, which is slated for completion in 2024. We are making steady progress on this project, with robust project governance and controls put in place to address as best as we can the disruptions that the continuing pandemic has had on business operations and global supply chains. As for the other projects, I am happy to say that we have successfully delivered eight newbuilds and purchased assets to our customers during the year, while the remainder have delivery dates between 2022 and 2023. Although the market was slow, with client tenders deferred, we still managed to commit USD300 million of capex investment into new vessels during the year. As we step into 2022, we will once again be returning our focus towards our growth agenda, after the pause in 2021. We are keenly aware of the long-term risks MISC faces due to climate change and the energy transition. These require immediate actions as well as longrange strategies, and we have these in place. An example is our adoption of the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), to integrate climate-related considerations into our annual strategic planning and our risk management practices. For the longer term, we have formulated corporate and sustainability strategies that will transform the business in line with the demands of energy transition and climate change. The eagerly-anticipated MISC 2050 strategy framework was unveiled to our people in January 2022. I believe it is a game-changer for MISC and gives everyone in the MISC Family a good understanding of our strategic direction and the role we envision ourselves playing to make our long-term vision a reality. You can read more about our strategies and initiatives in the Strategic Overview and Our Strategic Focus sections in this Report, as well as in our Sustainability Report. VICE PRESIDENT’S MESSAGE ZAHID OSMAN Vice President, Corporate Planning Encik Zahid Osman has assumed the role of Vice President, Corporate Planning effective 1 January 2022. Having previously been the Vice President of the Gas Assets & Solutions segment, he is valued as a highly experienced member of the Management Committee. During his tenure with the Gas Assets & Solutions segment, he was instrumental in developing the segment which has significantly contributed to MISC’s profitability and realisation of the Group’s vision and mission. Encik Zahid’s insights, acumen and skills will be key to steering the Corporate Planning Division as MISC navigates its way towards achieving long-term growth and profitability. On a personal note, I am excited to take on my new role in Corporate Planning after more than four years spearheading the Gas & Asset Solutions segment. I look forward to contributing to MISC’s strategic progress into the future, to ensure a sustainable growth and profitability for the Group. I am confident that regardless of the challenges that may come our way, we can achieve the results we aspire for our shareholders and stakeholders by drawing from our people’s indomitable team spirit and shared purpose towards a better future for all. ZAHID OSMAN Vice President, Corporate Planning STRATEGIC OVERVIEW MISC Berhad 44 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 45