Integrated Annual Report 2021

LEVERAGING ON OUR EXPERTISE AND CAPABILITIES TODAY TO ACHIEVE MISC 2050’S VISION WHAT IS MISC 2050? MISC 2050 is our strategic response to the risks and opportunities we have identified as we imagined various possible scenarios of the future. Our aim is to build MISC Group’s resilience in this unpredictable world leading to 2050. In our analysis of possible futures, the major common challenges that the world would face are climate change, resource scarcity and waste generation. With the threat of diminishing land and water scarcity and the increasing sea levels due to climate change, we believe that in time there will be a burgeoning new ocean economy. The two opportunity pillars we have identified are as follows: • Renewable Energy value chain as the building block to manage climate change challenges with the maritime sector playing a key role • Waste-to-Value chain as critical in tackling resource scarcity and emissions as well as repurposing maritime assets MISC 2050 also addresses how the Group can translate these opportunities into a fundamentally strong business proposition by leveraging on our current strengths and expertise in the maritime industry, as well as reskilling our people with the required competencies and expertise to drive our successful execution of identified opportunity pillars. We believe that MISC is in a strong position as the connector to bridge the land-based economy with the emerging ocean economy. Our Offshore Business, Gas Assets & Solutions and Petroleum & Product Shipping segments possess vast experience in owning, operating and leasing large-scale maritime assets. Our Marine & Heavy Engineering segment is well-positioned to construct eco-friendly assets that can support the ocean economy. The existing marine-related engineering and operating expertise of our Integrated Marine Services and Port Management & Maritime Services will be our fundamental strengths as we explore possibilities in the emerging ocean economy. As our business evolves to become part of the renewable energy value chain, we see synergies in the waste-to-value chain to act on business opportunities to convert renewable waste into useful resources that will fuel the circular economy. Moving into 2022 and beyond, our fundamental objective is to identify new business opportunities within the two value chain pillars of Renewable Energy and Waste-to-Value, to add to our present business portfolio mix. Collectively our existing and new businesses will transform MISC Group into a thriving business model that plays a relevant role in the circular and net-zero economy of 2050. Ultimately, this will ensure the Group’s longterm financial sustainability. As mentioned, MISC 2050 will be implemented in parallel with the Group’s five-year rolling business plans. As and when new ideas or opportunities become ripe for commercialisation, we will incorporate these strategic business ventures into our fiveyear business plans. We envisage that over the next 30 years, our business portfolio mix will gradually change such that the new businesses seeded by MISC 2050 will eventually take over as the main driver of income and engine of growth for the Group. • Existing portfolio as our core engine for income and growth • New ideas identified, developed and commercialised • Existing businesses to plateau • New business portfolios will start to take greater prominence • Mix of new and old portfolios • The new portfolio becomes the main driver of income and engine of growth Design, own & lease GAS ASSETS & SOLUTIONS PETROLEUM & PRODUCT SHIPPING TRANSPORTATION OF LNG & ETHANE TRANSPORTATION OF CRUDE OIL & PETROLEUM PRODUCTS OFFSHORE BUSINESS MARINE & HEAVY ENGINEERING INTEGRATED MARINE SERVICES PORT MANAGEMENT & MARITIME SERVICES MARITIME EDUCATION & TRAINING OFFSHORE FLOATING EPCICODD SOLUTIONS EPCIC AND FABRICATION SERVICES SHIP MANAGEMENT & MARITIME CONSULTANCY PORT AND TERMINAL MANAGEMENT & OPERATIONS MARITIME TRAINING ACADEMY Construction Operation & Maintenance (O&M) Sea to shore interface Talent reskilling & retooling • Common macro trends identified from imagining world scenarios in 2050 - climate change, resource scarcity and waste generation. • Thus, two opportunity pillars were identified where MISC have the “right to play” and “right to win”. Waste-toValue Chain Renewable Energy Value Chain Cross value chain dependency for both energy and resources Opportunity Area - Pillar 1 Opportunity Area - Pillar 2 • Leverage on our strengths/capabilities and prioritise/focus our ideas within these areas: • maritime-based and asset leasing business model • repurpose existing maritime assets in the industry • expand our present skill sets by reskilling and retooling our people Where We Can Turn Opportunities Into Business Cases RENEWABLE ENERGY VALUE CHAIN WASTE-TO-VALUE CHAIN MISC 2050 V I S I O N OUR STRATEGIC FOCUS STRATEGIC REVIEW 2050 PRESENT MISC Berhad 60 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 61