Integrated Annual Report 2021

STRATEGIC REVIEW OUR STRATEGIC FOCUS Gas Assets & Solutions segment • Maximising cash generation by: - Strategically allocating our capex on new projects that will generate a secured and recurring cash flow - Ensuring delivery of projects under construction into cash-generating assets as planned • Identifying and developing new maritime solutions and/or technologies Petroleum & Product Shipping segment • Strengthening our secured income stream and improving cash flow through rejuvenation and right-sizing of the fleet to reduce our exposure to cyclical business trends • Building strong foundations to enhance our brand reputation as an environmentally-focused organisation that provides low carbon maritime solutions Offshore Business segment • Enhancing earnings creation by extending existing contracts, and focusing on strategically-targeted clients and allocating capex on new projects that will generate secured and recurring cash flow • Ensuring successful project execution Marine & Heavy Engineering segment • Strengthening the core business by expanding our international market reach for the existing Marine and Heavy Engineering segments • Developing new businesses by realising opportunities in the area of renewable energy projects and increasing our capabilities to secure modular structure projects • Enhancing infrastructure and machineries to increase fabrication efficiency and marine capacity To achieve growth in a predictable manner, and through recurring sources of cash flow Sustainability Pillars Key Focus Areas Strategic Priorities Short to medium term (Within 5 years) Amidst the challenging global economic and socio-political landscape that we have witnessed over the course of the past few years, MISC is focusing our corporate and sustainability strategies on five key areas that are grounded on the principles of secured income and sustainable development. We have developed our five-year rolling business plan to strengthen our core by maximising cash from our existing assets while accelerating our diversification into new asset classes and commercialising future options to sustainably generate cash for the Group. Meanwhile, our Sustainability Strategy 2021 – 2025 has integrated our sustainability pillars of Financial, Environmental, Social, Governance and Stakeholders that are imperative for our long-term profitability and success. Our strategic priorities are linked to our material matters, reinforcing our approach of employing the lens of value creation by focusing on the factors that most impact our business and our stakeholders. Material Matters Sustainability Pillars Key Focus Areas Strategic Priorities Material Matters • Towards Decarbonisation - Transition to low carbon operations - Zero-carbon emission vessel by 2030 - Decarbonised shipping operations by 2050 • Promoting Circular Economy - To promote the elimination of waste and the continual use of resources - To increase the usage of renewable resources • Biodiversity Conservation - To conserve and rehabilitate marine biodiversity To care for the environment and operate responsibly To promote health and safety, individual and team excellence as well as generating positive impact on communities To foster strong governance and business ethics culture • Health and Safety - To provide a safe and healthy environment for employees, contractors and our communities - Health & Safety (H&S) leadership ‘See it, Own It’ Culture • Talent Excellence - To future proof talent and leadership agenda by accelerating talent potential - To build a performance-driven workforce in an engaging and inclusive work environment • Community Investment - To foster youth development towards becoming future leaders through education • Values, Assurance and Business Ethics - To continuously embed a culture of strong corporate governance and business ethics and conduct - To enhance cybersecurity framework and safeguard our operations • Responsible Supply Chain Management - To drive sustainable practices with our suppliers Environment Social Financial Governance MISC Berhad 56 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 57