MISC Annual Report 2017

MISC BERHAD | Annual Report 2017 2 INTRODUCTION 03 Corporate Information 04 About This Report BUSINESS & OPERATIONS 08 About MISC 10 MISC at a Glance & Value Chain 12 Our Global Presence 14 MISC Group Structure 16 Board of Directors 26 Management Committee STRATEGY & PERFORMANCE 33 MISC2020 Aspirations 34 MISC2020 Journey 38 Sustainability@MISC 40 Materiality 43 Sustainability Strategy Updates 51 Sustainability Governance 53 Sustainability Trends & Challenges 56 Group Financial Review 58 5-Year Group Financial Performance 60 Financial Calendar 62 MISC Group 2017 Highlights 70 Chairman’s Statement 76 President/Group CEO's Review 88 Management Discussion & Analysis (MD & A) : 88 Core Businesses 104 Key Enablers 114 People Development 122 Investor Relations Report 124 Statistics on Shareholdings CORPORATE GOVERNANCE 127 Corporate Governance Overview Statement 137 Nomination & Remuneration Committee Report 142 Statement on Risk Management & Internal Control 149 Statement of Directors' Responsibility 150 Additional Compliance Information 151 Board Audit & Risk Committee Report FINANCIAL REPORT & OTHER INFORMATION 157 Financial Statements 322 Properties Owned by MISC Berhad and its Subsidiaries 325 List of Vessels & Assets 49 TH ANNUAL GENERAL MEETING 336 Notice of Annual General Meeting 340 Administrative Notes Relating to the 49 th AGM Proxy Form INSIDE THIS REPORT FOSTERING UNITY ACROSS A DIVERSE WORKFORCE Amidstglobaluncertainties and the ever-changingoperating environmentof the energy andmaritime industry,we introduced the “Unity inDiversity” campaign topromotebetter solidarity amongour employees.We realised that if our employeeswere to find commongroundwith a common senseofpurpose, they needed to respect individualdifferences,embracediversity and shift the conversation frommere acceptance to truly understanding thedifferences thatmakeus stronger together. Today, as a more resilient and unified workforce that remains true to its core values and beliefs, we are unlocking our full potential as we move towards achieving ourMISC2020 strategy. 06 FOSTERING UNITY ACROSS A DIVERSE WORKFORCE 36 LEVERAGING ON SYNERGIES AND STRATEGIC ALLIANCES 120 SHAPING THE FUTURE OF THE INDUSTRY Please scan the QR Code to v i ew our i nteract i ve report By working synergistically together with the right stakeholders, this will enable us to offer a comprehensive array of energy related maritime solutions and services to the market. LEVERAGING ON SYNERGIES AND STRATEGIC ALLIANCES Cross-business synergiesareat theheartofMISC andakey strategy forenhancingour internal growthpotential.We continue topromote these collaborativeeffortsandpursue synergy creation E\GHSOR\LQJUHVRXUFHVPRUHHIƓFLHQWO\OHYHUDJLQJ on common toolsand technology,andaligningour Groupefforts.Wearealsodetermined to continue buildingand consolidatinga collaborative culture withourpartners. Delivering greener and more cost-effective maritime solutions and services is paramount to our continued success, and we will continue to achieve this goal together with our partners while building a more efficient and sustainable future for the industry. Volatileoilprices,strictenvironmental regulationsand challengingeconomic conditionsareamong thekey factors thathaveaddeduncertainty toour industry.Calling for industry-wide collaboration,MISC is takingup the FKDOOHQJHRIEXLOGLQJPRUHFRVWHIƓFLHQWYHVVHOVRSHUDWLQJUHVSRQVLEO\DV wellasprovidinga rewardingand safe career forbothour seafarersand shore staff.Weprideourselvesonbeingable toprovideour customerswith innovative solutions.Ourworkwith customersdemonstrates that the future calls for closer collaborationbetweenall industry leadersand stakeholders. SHAPING THE FUTURE OF THE INDUSTRY