MISC BERHAD 72 INTEGRATED ANNUAL REPORT 2023 73 www.miscgroup.com STRATEGIC REVIEW SECTION 6 Delivering Our Strategy and Its Focus Delivering Our Strategy and Its Focus Our Strategic Roadmap Towards MISC 2050 Vision The market landscape is expected to remain challenging, dominated by uncertainties due to geopolitical tensions, trade wars between major economies and energy security concerns. The prolonged geopolitical conflicts across regions could potentially shift the power balance among countries and reshape the global economy. Amidst these challenges, the Group anticipates numerous opportunities given the sustained need for oil and gas and growing demand for clean energy. Short to Medium-Term 2024 STRATEGY Business Model Transformation • Selective monetisation of assets to unlock value • Fleet rejuvenation for GAS Business and selective investments into dual-fuel assets for Petroleum & Product Shipping Business • Investing into clean energy Strategic Partnerships and Client Positioning • Collaborate with strategic partners to pursue asset growth and venture into clean energy • Shifting focus to high value clients Organisational Culture and Behaviour • Embed Generative HSSE culture across the Group • Embark on a transformation journey focusing on enterprise culture to future-proof MISC MISC 2030 ASPIRATION * Compared to 2022 baseline (approximately USD1.2 billion) Medium to Long-Term MISC 2050 VISION LEVERAGING ON OUR EXPERTISE AND CAPABILITIES TODAY TO ACHIEVE MISC 2050’S VISION Gas Assets & Solutions Petroleum & Product Shipping Offshore Business Marine & Heavy Engineering Marine Services Maritime Education & Training Transportation of LNG & Ethane Transportation of crude oil & petroleum products Offshore floating EPCICODD Solutions EPCIC and fabrication services Ship management & maritime consultancy Port and terminal management & operations Maritime training academy Design, Own & Lease Construction Operation & Maintenance (O&M) Sea-to-Shore Interface Talent Reskilling & Retooling RENEWABLE ENERGY VALUE CHAIN The building block to manage climate change challenges with the maritime sector playing a key role WASTE-TO-VALUE CHAIN Critical in tackling resource scarcity and emissions as well as repurposing maritime assets MISC 2050 Vision Short to Medium-Term (MISC 2030 Aspiration) Recognising the dynamic landscape of the global maritime industry in 2023, we conducted a comprehensive reassessment of our business portfolio and strategy to establish a solid foundation for a successful transition to a low-carbon future. The Group has established the MISC 2030 Aspiration, which acts as a call for action in mobilising our workforce to pivot for a sustainable future aligned with the MISC 2050 Vision, with the overarching goal of advancing towards a Net-Zero and circular economy. At its core, the MISC 2030 Aspiration is our short to medium-term strategy that aims to deliver sustainable financial returns to stakeholders while significantly reducing GHG emissions. Key targets under the MISC 2030 Aspiration are outlined below: • 50% improvement in CFO • 25% of CFO from clean energy solutions • 50% reduction in GHG emissions from shipping operations Our 2024 business strategy is crafted based on the three strategic priorities anchoring MISC 2030 Aspiration. Business Model Transformation Our business model transformation involves expanding the depth of service offerings to effectively meet our clients’ and partners’ diverse needs. We recognise that to achieve our aspirational targets, this would require capital to be redeployed towards clean energy and decarbonisation initiatives. Hence, a significant portion of our CAPEX will be directed towards this, strategically balancing our current business with a growing clean energy portfolio. We will pursue selective investments responsibly to optimise returns on our portfolio while remaining aligned with the evolving energy market. In parallel, we will be unlocking value through selective asset monetisation whilst facilitating a transition into the clean energy sector organically and inorganically. Strategic Partnerships and Client Positioning We are dedicated to building a supportive ecosystem through collaboration with like-minded stakeholders, including financial institutions, who share our vision for a lower carbon future. In line with our strategy, we will collaborate with industry partners to combine our strengths and accelerate the development of a sustainable energy portfolio. This includes investing in transitional assets such as dual-fuel vessels while exploring innovative solutions across the industry such as zero-carbon emission vessels, CCS technologies, LCO2 and ammonia carriers, FCSU and FCSU-I solutions and other clean energy solutions synergistic with our existing business operations. By engaging in collaborative partnerships, we aim to mitigate risks while advancing the commercialisation of future low-carbon solutions. Organisational Culture and Behaviour We will continue to invest in upskilling our talent to enhance their capabilities and cultivate a Generative HSSE culture. In addition, the Group will embark on a transformation journey focusing on enterprise culture to future-proof MISC. These initiatives will play a pivotal role in realising MISC 2030 Aspiration by instilling the desired mindset and behavioural shifts throughout the organisation. to be delivered through Business Model Transformation Unlocking value; positioning for energy transition Organisational Culture & Behaviour Generative HSSE culture to be part of our DNA Strategic Client Positioning Shifting focus to high value clients 50% CFO* Improvements 25% CFO from Clean Energy Solutions 50% GHG Emissions Reduction in Shipping Operations
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