CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This Annual Report contains some forward-looking statements in respect to the Dayang Group’s financial condition, results AT A GLANCE of operations and business. These forward-looking statements FINANCIAL represent Dayang Group’s expectations or beliefs concerning PERFORMANCE future events and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.
Readers are hereby cautioned that a number of factors could cause actual results to differ, in some instances materially, from those anticipated or implied in any forward-looking statement. In this respect readers must therefore not rely solely Revenue (RM) on these statements in making investment decisions regarding the Dayang Group. The Board and the Dayang Group shall 1,046.183 M not be responsible for any investment decisions made by the readers in reliance on those forward-looking statements.
Forward-looking statements speak only as of the date they are made, and it should not be assumed that they have been reviewed or updated in the light of new information or future events that would arise in the interim of the publication of this Profit Before Tax (RM) Annual Report and the time of reading this Annual Report. 329.462 M CONTENTS
01 Financial Calendar 02 Corporate Information 03 Corporate Structure 04 Corporate Milestones 07 Key Achievements/Awards 09 5 Years Financial Highlights 10 Board of Directors’ Profile 16 Key Senior Management 18 Chairman’s Statement 20 Management Discussion and Analysis 24 Sustainability Report 52 Corporate Governance Overview Statement 64 Directors’ Responsibility Statement 65 Additional Compliance Information 66 Audit Committee Report 70 Statement of Risk Management and Internal Control 75 Financial Statements 187 Analysis of Shareholdings 190 Notice of Annual General Meeting 196 Information for Shareholders Form of Proxy Net Profit Attributable to Earnings Per Share (Sen) Owners of the Company (RM) 230.946 M 23.83
Total Assets NTA Per Share (RM) 2,947.163 M 1.35
Shareholders’ Equity Return On Equity (%) 1,434.534 M 15.6
FINANCIAL CALENDAR
Financial Year End 31 DECEMBER 2019
ANNOUNCEMENT OF RESULTS
First Quarter 22 MAY 2019 Second Quarter 23 AUGUST 2019 Third Quarter 22 NOVEMBER 2019 Fourth Quarter 21 FEBRUARY 2020
th PUBLISHED ANNUAL REPORT AND 14 FINANCIAL STATEMENTS ANNUAL GENERAL MEETING
Notice of Date : 22 June 2020 Extraordinary General Meeting 13 SEPTEMBER 2019 Extraordinary General Meeting 1 OCTOBER 2019 Time : 2.00 p.m. Annual Report 2019 27 MAY 2020 Broadcast : Tricor Investor & Venue Issuing House Notice of Annual General Meeting 27 MAY 2020 Services Sdn Bhd 02 Dayang Enterprise Holdings Bhd Corporate Information
GROUP OPERATION Board of HEAD OFFICE Sublot 5 – 10, Lot 46, Block 10, Koh Ek Chong Jalan Taman Raja, MCLD, Directors Independent Non-Executive Director 98000 Miri, Sarawak, Malaysia.
Gordon Kab @ Gudan Bin Kab BRANCH OFFICE Datuk Hasmi Bin Hasnan Independent Non-Executive Director Unit 2-16-01, Tower 2, VSQ @ PJCC, Executive Chairman Jalan Utara, 46200 Petaling Jaya, Ali Bin Adai Selangor, Malaysia. Datuk Ling Suk Kiong Independent Non-Executive Director PROJECT TEAM OFFICE Executive Deputy Chairman Lot 1785, Block 5, MCLD, Azlan Shah Bin Jaffril Jalan Persatuan, Lorong 9, Krokop, Tengku Dato’ Yusof Bin (resigned 31.12.2019) 98000 Miri, Sarawak, Malaysia. Tengku Ahmad Shahruddin Independent Non-Executive Director Managing Director MIRI WAREHOUSE Hasmawati Binti Sapawi Lot 1973, Jalan Maigold, Joe Ling Siew Loung @ Lin (appointed 03.01.2020) Desa Senadin Industrial Park, Shou Long Independent Non-Executive Director P.O Box 2033, 98008 Miri, Sarawak, Deputy Managing Director Malaysia. Chin Hsiun LABUAN WAREHOUSE YARD 1 Jeanita Anak Gamang (appointed 03.01.2020) Lot No. CL2053118752, Kg Ranca Executive Director Independent Non-Executive Director Ranca, District of Labuan, 87000 Labuan Federal Territory, Malaysia. Wong Ping Eng Emily Hii San San Non-Independent (appointed 03.01.2020) LABUAN FABRICATION YARD 2 Non-Executive Director Alternate Director to Wong Ping Eng Lot CL 10599, Jalan Ranca-Ranca, Ranca Ranca Industrial Estate, 87000 Labuan Federal Territory, Malaysia.
REGISTERED OFFICE COMPANY SECRETARIES LABUAN FABRICATION YARD 3 Lot 3, CL205384407, Off Jalan Patau AND HEAD OFFICE Bailey Kho Chung Siang (LS0000578) Patau, 87000 Labuan Federal Sublot 5 – 10, Lot 46, Block 10, (SSM PC No. 202008002778) Territory, Malaysia. Jalan Taman Raja, MCLD, Bong Siu Lian (MAISCA 7002221) 98000 Miri Sarawak, (SSM PC No. 201908001493) LABUAN YARD 4 Malaysia. Lot No. 205007969, Jalan Bebuloh, Tel: 085-420185 LEGAL ADVISOR Kg. Sungai Bedaun, 87019 Federal Fax: 085-421654 Idris, Alvin Chong & Partners Territory of Labuan, Malaysia. Lot 176 & 177, 2nd Floor, SHARE REGISTRAR Jalan Song Thian Cheok, ADMINISTRATIVE/LOGISTIC OFFICE Tricor Investor & Issuing House 93100 Kuching Sarawak, Malaysia. Lot C8, Block C, 1st Floor, Cyber Square, Lorong Cyber Square, Services Sdn Bhd Tel: 082- 410111 Jalan Kepayan, 88250 Kota Unit 32-01, Level 32, Kinabalu, Sabah, Malaysia. Tower A, Vertical Business AUDITORS Suite, KPMG PLT (LLP0010081-LCA) BINTULU WAREHOUSE/ Avenue 3, Bangsar South, Level 2, Lee Onn Building FABRICATION YARD No 8, Jalan Kerinchi, Jalan Lapangan Terbang Lot 3061, Block 26, Kidurong Light 59200 Kuala Lumpur, 93250 Kuching, Sarawak, Malaysia. Estate, Kemena Land District, Malaysia. 97000 Bintulu, Sarawak, Malaysia. Tel: 603-27839299 STOCK EXCHANGE LISTING DESB KEMAMAN YARD Fax: 603-27839222 Main Market, Bursa Malaysia 04 – 01, KSB Phase 1, Kemaman Securities Berhad. Supply Base, 24007 Kemaman, PRINCIPAL BANKERS Listed on 24 April 2008 Terengganu Darul Iman, Malaysia. Malayan Banking Berhad Stock Code: 5141 United Overseas Bank Berhad Stock Name: Dayang TELONG KALONG YARD RHB Bank Berhad PT 8229, Kawasan Perindustrian Telok Kalong, 24000 Kemaman, Terengganu Darul Iman, Malaysia. Annual Report 2019 03 Corporate Structure
Company No. 200501030106 (712243-U)
100% 100%
DESB MARINE SERVICES SDN BHD FORTUNE TRIUMPH SDN BHD (FTSB) (DMSSB) - Provision of Rental Equipment - Owner and Charter of Marine Vessels FTSB, which commenced operations in DMSSB, a subsidiary of Dayang, began 1999, provides rental equipment and operations in May 2005 and is involved in machinery to support the operations of the chartering of marine vessels, including DESB. floating accommodation and catering.
100% 64.01%
DAYANG ENTERPRISE SDN BHD (DESB) PERDANA PETROLEUM BERHAD - Offshore Topside Maintenance Services (PPB) - Minor Fabrication Operations - Owner and Charter of Marine Vessels - Offshore Hook-up and Commissioning PPB is an investment holding company A wholly owned subsidiary of Dayang and listed on the Main Market of Bursa licensed by Petronas, DESB commenced Malaysia Securities Berhad. PPB owns operations in October 1980 and is principally sixteen (16) vessels and the principal involved in the provision of maintenance activities of its subsidiaries are provision services for Topside structures, pipes and of marine support services for the oil & valves, electrical and instrumentation, gas industry. This synergistic tie-up with fabrication operations, and hook-up and PPB provides a strategic access to commissioning services for the oil and gas vessels, thus increases Dayang's marine industry. and vessels capabilities. 04 Dayang Enterprise Holdings Bhd Corporate Milestones
2019
CERTIFICATE OF APPRECIATION GIVEN BY SENIOR FOCUSED RECOGNITION AWARDED BY PETRONAS MANAGER TECHNICAL SERVICES KEBABANGAN CARIGALI SDN BHD – SKO (BARONIA APRIL 2019 TA PETROLEUM OPERATION COMPANY (KPOC) SDN BHD Team) • Providing Exceptional Service and response in • During Baronia April 2019 TA, MCM DESB team supporting KPOC for 8” Weld Neck Flange Leak executing P1 Piping Replacement activity at the LP Vent Header Repair Work From 22 Oct (driver) and completed mechanical work 2 2019 – 29 Oct 2019 days ahead of schedule (Result: Early start up of Contract No.: KPOC/JT/17/1110 Baronia Facilities) Contract No.: CHO/2016/BIE3/1001 FOCUSED RECOGNITION BY PCSB BARONIA JULY 2019 TA TEAM AWARD GIVEN BY MURPHY • During Baronia July 2019 TA, MCM DESB team • Implementation of Positive Safety Culture and executing P1 Piping Replacement activity has Safe Work Practices at MURPHY facilities during successfully completed mechanical work 4 major shutdown from 5 – 15 April 2019 (SK days ahead of schedule. (Key Result: Early Start Shutdown Campaign) Up of Baronia Bravo Facilities, 3 days ahead of Contract No.: MURPHY/S17025 schedule.) Contract No.: CHO/2016/BIE3/1001 FOCUSED RECOGNITION BY PETRONAS CARIGALI SDN BHD – SKO (TEMANA 2019 TURNAROUND TEAM) FOCUSED RECOGNITION BY PETRONAS CARIGALI SDN • Demonstrate Safe Working Culture to 70 Crew in BHD – SKO (D35 TA) Multiple Location • To ensure TA D35 executed correctly and Contract No.: CHO/2016/BIE3/1001 safely and also with high team work. Field Supt successfully assisting PCSB with certain urgent FOCUSED RECOGNITION BY PETRONAS CARIGALI SDN and critical request. (Key Result: Handover TA BHD – SKO (TEAM TEMANA) D35 on time.) • Demonstrating strong commitment and Contract No.: CHO/2016/BIE3/1001 cooperation in HSE, work execution, communication & rapport and teamwork during RECOGNITION & APPRECIATION GIVEN BY SARAWAK TETA19 (Temana Turn Around 19) SHELL BERHAD Contract No.: CHO/2016/BIE3/1001 • Achievement of First Oil Delivery for E6 Field Development Project FOCUSED RECOGNITION BY HEAD – SK OIL • Demonstrating relentless effort and ownership 2 FOCUSED RECOGNITIONS BY PETRONAS CARIGALI by proactively conducting UDAT session in SDN BHD – SKO collaboration with BSE and BTS23 for all vessels • Give full cooperation and commitment to prior to mobilization to their respective location. replace punctured bellow for k-2400 at Dayang Key Result: Ensured integrity on HSE compliance Opal within short period (Key Result: Avoid Contract No.: CHO/2016/BIE3/1001 further downtime of K-2400) Contract No.: CHO/2016/BIE3/1001 • Cooperatively source for consumable, manpower and WPS for welding of SS316 material to rectify punctured K-2400 bellow Contract No.: CHO/2016/BIE3/1001
NOTES : SKO : Sarawak Operation PMO : Peninsular Malaysia Operation TRCF : Total recordable injury case frequency LTI : Loss Time Injury UAUC : Unsafe Act & Unsafe Condition Annual Report 2019 05 Corporate Milestones
2018
2 APPRECIATION LETTERS GIVEN BY PETRONAS 2 AWARDS GIVEN BY SHELL MALAYSIA CARIGALI SDN BHD – SKO • Grand Prize Winner in Best Continous • Appreciation Letter for Successful Improvement Category. Maintenance Shutdown Campaign at • Grand Prize Winner in Best Safety Leadership Baram Field. Initiative Category. Contract No.: CHO/2016/BIE3/1001 • Appreciation Letter for Successful 6 FOCUSED RECOGNITIONS BY PETRONAS CARIGALI September 2018 D35 Turnaround SDN BHD – SKO Campaign. • Ensure TA completes within duration and its Contract No.: CHO/2016/BIE3/1001 additional scopes with highest regards on safety. Contract No.: CHO/2016/BIE3/1001 3 FOCUSED RECOGNITION BY PETRONAS • Ensure D35 TA to be completed within CARIGALI SDN BHD stipulated TA’s condition. • On 17.04.18 assisted to put out a fire on Contract No.: CHO/2016/BIE3/1001 MV Geos & Dayang Zamrud had provided • Successful TA Sept 2018 execution wit highest assistance in medical care & given new regards to safety. PPE’s and shelter for all 38 rescued crews. Contract No.: CHO/2016/BIE3/1001 • Provision of Maintenance, Construction & • Safely completed Baram Sept 18 TA ahead Modification for PCSB, Baronia Rejuvenation of schedule (Baram Bravo 3 days ahead and - Contributing to the safe and successful Baram Alpha 1 day ahead) despite of additional delivery of the Project – CP3. scopes given during 2 weeks towards TA. • DESB D35-A Mtce TEAM - High ownership on Contract No.: CHO/2016/BIE3/1001 HSE and openness to accept intervention • Completion of D35-A Fab Mtce per scope given by client. SAFELY Contract No.: CHO/2016/BIE3/1001 AWARD GIVEN BY PETRONAS CARIGALI • Recognition for Minimize severity of the SDN BHD catastrophic incident and safety rescued the 38 • Best Project HSE In appreciation towards survivors. outstanding achievement for Offshore Contract No.: CHO/2016/BIE3/1001 Project (28.10.18) – CP3.
2017
FOCUS RECOGNITION BY PETRONAS CALIGALI 2 AWARDS GIVEN BY MURPHY • Successful completion of Campaign No.1 (2016) for • Recognition for Excellent HSSE Baronia Rejuvenation Project safely and without LTI. Performance for 2013 – 2017 for Contract: This was made possible via good planning, team work, Murphy S/2003 – 1688 LTI – Free Days with dedication and focues execution by the entire team. 2.0 million Safety Manhours. • Contribution towards Excellent HSSE CERTIFICATION OF APPRECIATION GIVEN BY KPOC Performance during SK Gas Shut Down in • Certification of Appreciation in recognition of excellent September 2017. performance for successfully rendered service in KPOC- KBB Turn Around April 2017 Campaign and LTI Free AWARD GIVEN BY SHELL MALAYSIA Safety Record for 87 days (194,496 Safety Manhours • Shell Malaysia Safety Award - Silver Award and 2,643 Care Cards). for Upstream Category. 06 Dayang Enterprise Holdings Bhd Corporate Milestones
2016 2015
AWARD GIVEN BY JX NIPPON OIL & GAS CERTIFICATE OF APPRECIATION GIVEN BY PETRONAS EXPLORATION (M) LTD NASIONAL BERHAD (PETRONAS) • 2016 HSE Performance Award. • Appreciation of actively participated in PCSB SKO Monthly Service Provider HSE Liaison for Year FOCUSED RECOGNITION BY PETRONAS CARIGALI 2015. • Being vigilant in close monitoring and complying with HSE plan and its implementation through AWARD GIVEN BY JX NIPPON OIL & GAS out the Topside Major Maintenance (TSM) EXPLORATION (M) LTD contract duration. • Safe Completion of Helang 15S2 Shutdown 2015.
2014
TESTIMONIAL OF ACHIEVEMENT AWARDED BY 5 LETTERS OF APPRECIATION GIVEN BY PETRONAS CARIGALI SHELL MALAYSIA • Appreciation for good performance on job • A special commendation to the team for completion without LTI for: outstanding work in the implementation i. D35 (September) of the emergency rectification of the ii. Betty (October) B11 Vent Header Rectification from 25th iii. Bokor (August) September 2014 to 07th October 2014 iv. Temana (June) which was executed in a Safe and Secure v. Baram (June) manner with Ahead of Time delivery. CERTIFICATE AWARDED BY MURPHY SARAWAK OIL CO. LTD RECOGNITION BY SHELL MALAYSIA • Appreciation on HSSE contributions towards Murphy • Safety Partnership & Collaboration Sarawak Oil Co. Ltd’s excellent safety record with zero Recognition 2014. LTI from July 2013 to August 2014.
AWARD GIVEN BY FORBES ASIA LETTER OF APPRECIATION GIVEN BY JABATAN • Best Under a Billion, The Region’s Top 200 KESELAMATAN DAN KESIHATAN WILAYAH PERSEKUTUAN Small & Midsize Companies. LABUAN • Appreciation for Implementation of program code AWARD GIVEN BY NATURAL RESOURCES & of practice on the prevention and management of ENVIRONMENT BOARD,SARAWAK HIV/AIDS in the workplace-2001 and code of practice • Merit Award, Large Industries (Oil & on the prevention and eradication of drug abuse, Gas), the 6th Sarawak Chief Minister alcohol and substance abuse in the workplace-2005. Environmental Awards.
2013 START
3 LETTERS OF APPRECIATION GIVEN BY PETRONAS CARIGALI • Appreciation note for the safe and successful Temana 2013 October Turnaround Execution. • Appreciation note for Southern NOTES : Turnaround on September 13 (P1 Closure). SKO : Sarawak Operation • Apperciation note for Temana PMO : Peninsular Malaysia Operation Turnaround. TRCF : Total recordable injury case frequency LTI : Loss Time Injury UAUC : Unsafe Act & Unsafe Condition Annual Report 2019 07 Key Achievements/Awards 08 Dayang Enterprise Holdings Bhd Key Achievements/Awards
NOTES SKO Sarawak Operation PMO Peninsular Malaysia Operation Annual Report 2019 09 5 Years Financial Highlights
2015 2016 2017 2018 2019 Revenue (RM’000) 778,577 708,238 694,989 938,758 1,046,183 Gross Profit (RM’000) 336,688 255,546 212,382 382,481 493,323 Profit Before Tax (RM’000) 203,440 78,684 (66,502) 212,138 329,462 Profit After Tax (RM’000) 170,677 53,980 (153,182) 143,983 221,854 Gross Profit Margin 43.2% 36.1% (30.6%) 40.7% 47.2% Profit Before Tax Margin 26.1% 11.1% (9.6%) 22.6% 31.5% Return of Equity 14.3% 4.2% (15.1%) 14.3% 16.1%
Revenue Gross Profit (RM’000) (RM’000) 778,577 708,238 694,989 938,758 1,046,183 336,688 255,546 212,382 382,481 493,323
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
Profit Before Tax 2015 203,440 (RM’000) 2016 78,684 2017 (66,502) 2018 212,138 2019 329,462
Profit After Tax 2015 170,677 (RM’000) 2016 53,980 2017 (153,182) 2018 143,983 2019 221,854
43.2% 47.2% 40.7% 36.1% 31.5% 26.1% 22.6%
14.3% 11.1% 16.1% Gross Profit 14.3% Margin 4.2% (9.6%) Profit Before (15.1%) Tax Margin (30.6%) Return of 2015 2016 2017 2018 2019 Equity 10 Dayang Enterprise Holdings Bhd Board of Directors’ Profile
DATUK HASMI BIN HASNAN DATUK LING SUK KIONG Executive Chairman Executive Deputy Chairman Aged 66 | Malaysian | Male Aged 74 | Malaysian | Male
• Member of Risk Management Committee
Datuk Hasmi Bin Hasnan was appointed Executive Datuk Ling Suk Kiong is the founder of Dayang Group Chairman of Dayang Enterprise Holdings on 29 of Companies. He established Dayang Enterprise Sdn February 2008 and resigned on 23 December 2015. Bhd in 1980. He was appointed Executive Deputy He was re-appointed Executive Chairman of the Chairman of Dayang Enterprise Holdings Bhd on Company on 1 September 2018. 29 February 2008. He has been instrumental in the growth and development of the Group. He brings He graduated with a BSc in Estate Management from with him more than thirty (30) years of experience in the London South Bank University, UK in 1978. He is a the Oil and Gas Industry and is mainly responsible for Senior Certified Valuer with International Real Estate the overall strategic business direction of the Group. Institute, USA and a member of International Real Estate Federation (FIABCI). Datuk Ling was appointed as a Non-Independent Non-Executive Director of Perdana Petroleum Berhad He began his career in 1979 as a valuer in the Land on 12 December 2012 and on 24 August 2015, he and Survey Department of Sarawak. Since 1982, he assumed the position of Executive Chairman. He is has been involved in a wide range of businesses, also a director in several private limited companies including valuation, project management, property in Malaysia. development and management, construction, timber, manufacturing, trading and publishing. In He was awarded the Sarawak State Entrepreneur June 1993, he was appointed the Managing Director of The Year Award 2009 in Kuching representing the of Naim Land Sdn Bhd and in July 2003, he became Sarawak Chinese Chamber of Commerce and Industry the Managing Director of Naim Holdings Berhad and category. Datuk Ling was conferred the “Outstanding has since been the main driving force behind Naim Entrepreneurship Award” for Outstanding and Group’s growth and expansion. Exemplary Achievements in Entrepreneurship on 13 April 2014 at the Asia Pacific Entrepreneurship Awards He was awarded the Property Man of the Year for 2014 held in Brunei Darusalam. 2008 by the International Real Estate Federation (FIABCI) in Kuala Lumpur. On 13th September 2014, Datuk Ling was conferred the award of Panglima Gemilang Bintang Kenyalang He is a Non-Independent Non-Executive Director in (P.G.B.K) which carries the title “DATUK” by Tuan Yang Perdana Petroleum Berhad. Terutama Yang Di-Pertua Negeri Sarawak Tun Pehin Sri Haji Abdul Taib Mahmud in conjunction with His Excellency’s 78th Birthday.
Datuk Ling Suk Kiong is the father of Mr Joe Ling Siew Loung @ Lin Shou Long, who is the Deputy Managing Director of Dayang. Annual Report 2019 11 Board of Directors’ Profile
TENGKU DATO’ YUSOF BIN JOE LING SIEW LOUNG TENGKU AHMAD SHAHRUDDIN @ LIN SHOU LONG Managing Director Deputy Managing Director Aged 57 | Malaysian | Male Aged 47 | Malaysian | Male
• Chairman of Corporate Social Responsibility • Member of Risk Management Committee Committee • Member of Risk Management Committee
Mr Joe Ling Siew Loung @ Lin Shou Long was appointed Tengku Dato’ Yusof Bin Tengku Ahmad Shahruddin Deputy Managing Director of Dayang Enterprise was appointed Managing Director of Dayang Holdings Bhd on 29 February 2008. He graduated from Enterprise Holdings Bhd on 29 February 2008. He University of Western Australia in 1993 with a Bachelor graduated in 1984 from the University of Toledo in the Degree in Engineering. In 1999, he obtained a Master United States of America with a Bachelor of Science of Business Administration degree from the same Degree majoring in Civil Engineering. university. Upon his graduation he joined Modal Bina Sdn Bhd as He began his career in 1994 when he joined Sarawak a Project Engineer. Subsequently in 1988, he took up Shell and Sabah Shell as a Trainee Engineer. In 1995, the position as Sales Engineer with Mobil Oil Malaysia he joined POG EP. Fochi Joint Venture as an Office Sdn Bhd. In 1991, he established Hexamas Sdn Bhd. Engineer. Subsequently in 1995, he joined Daiken Sarawak Sdn Bhd as a Production Engineer. He was appointed Director of Dayang Enterprise Sdn Bhd in 1993. He also holds directorship in Fortune He joined Dayang Enterprise Sdn Bhd in 1997 as a Triumph Sdn Bhd, DESB Marine Services Sdn Bhd and Project Engineer. In 2004, he was appointed Assistant several other private limited companies in Malaysia. to the General Manager. In 2008, he was promoted to the role of Deputy Managing Director. He is currently responsible for overseeing and monitoring the management and operations of Dayang Group.
Mr Joe Ling Siew Loung @ Lin Shou Long is the son of Datuk Ling Suk Kiong who is the Executive Deputy Chairman and substantial shareholder of Dayang. 12 Dayang Enterprise Holdings Bhd Board of Directors’ Profile
JEANITA ANAK GAMANG WONG PING ENG Executive Director Non-Independent Non-Executive Director Aged 47 | Malaysian | Female Aged 47 | Malaysian | Female
• Member of Joint Remuneration & Nomination Committee
Ms Jeanita Anak Gamang was appointed Executive Ms Wong Ping Eng was appointed Non-Independent Director of Dayang Enterprise Holdings Bhd on 5 Non-Executive Director of Dayang Enterprise Holdings January 2012. She obtained a Diploma in Electrical Bhd on 1 October 2013. She obtained a Diploma Engineering from Mara Institute of Technology, Shah in Commerce (Financial Accounting) from Tunku Alam in 1995. Abdul Rahman College, Kuala Lumpur. She is a Certified Accountant with the Malaysian Institute of Ms Jeanita began her career in 1997 as a Trainee Accountants and Association of Chartered Certified Engineer in Dayang Enterprise Sdn Bhd, a subsidiary of Accountants (ACCA). Dayang Enterprise Holdings Bhd. From 1999 onwards, she has held the position of Head of Administration Ms Wong has more than 15 years experience in the responsible for all matters related to administrative financial and accounting field. She started her career and recruitment of office personnel. She was as Audit Assistant at KPMG, Kuching from September appointed as a Director of Dayang Enterprise Sdn 1997 until December 2000. In 2004 she moved to Bhd in 2006. Naim Holdings Berhad as Accountant. In July 2004 – 2008, she was appointed the Operations Manager for Naim’s Bandar Baru Permyjaya project in Miri where she was responsible for managing the whole Miri Operations.
In July 2008, she was promoted as Vice President – Finance and Accounts to oversee the Group Finance and Accounts Division. She was subsequently promoted as Deputy Director- Finance & IT Division and in August 2012, she was promoted as Senior Director for Naim’s Group Support Division comprising Finance & Accounts, Administration, Human Resource and Information Technology.
Ms Wong was appointed as an Executive Director of Naim Holdings Berhad on 29 November 2012 and on 9 January 2013, she was re-designated to Deputy Managing Director. She was appointed as a Non- Independent Non-Executive Director of Perdana Petroleum Berhad from 11 September 2015 to 1 September 2018. Annual Report 2019 13 Board of Directors’ Profile
ALI BIN ADAI GORDON KAB @ GUDAN BIN KAB Independent Non-Executive Director Independent Non-Executive Director Aged 64 | Malaysian | Male Aged 64 | Malaysian | Male
• Chairman of Joint Remuneration & Nomination • Chairman of Risk Management Committee Committee • Member of Audit Committee • Member of Audit Committee • Member of Corporate Social Responsiblity Committee
Encik Ali Bin Adai was appointed Independent Non- Encik Gordon Kab @ Gudan Bin Kab was appointed Executive Director of Dayang Enterprise Holdings Bhd Non-Independent Executive Director of Dayang on 3 March 2014 and was appointed Chairman of the Enterprise Holdings Bhd on 29 February 2008. He was Board on 25 February 2016. On 1 September 2018, he re-designated as Non-Independent Non-Executive was re-designated as Independent Non-Executive Director on 2 December 2013 and as Independent Director of the Company. He graduated with a Non-Executive Director on 3 December 2015. Bachelor of Art degree from University of Guelph, He graduated from Loughborough University of Canada. Technology, England United Kingdom, with a B.Sc (Hon.) degree in Civil Engineering. Encik Ali was employed with CIMB Bank Berhad as the Regional Director for East Malaysia (Sabah and He has over thirty (30) years of working experience Sarawak) until his retirement on 31 March 2013. He in both Oil and Gas and the Construction industries. was responsible for managing 29 branches and for He gained extensive experience with Sarawak Shell developing CIMB’s Retail, Commercial and Enterprise Berhad for fifteen (15) years and Sime Darby Berhad’s Banking businesses in East Malaysia. Oil and Gas Engineering Division, Esteem Century Sdn Bhd. He is an Independent Non-Executive Director of Sarawak Plantation Berhad and was appointed as an In mid May 2000, he was engaged by Cahya Mata Independent Non-Executive Director of ABM Fujiya Sarawak Berhad as a Senior Project Manager Berhad on 1 March 2020. (Central Procurement Unit) and then as Senior Project Manager for PPES Works (Sarawak) Sdn Bhd (Northern Region Operation). He then moved on to PPES Marine Resources Sdn Bhd as an Operations Manager in the Deep Sea Fishing Division in charge of vessels management and support.
He was engaged by Naim Group of Companies from 2006 to 2009 as Senior Head of Construction, in charge of the operation and execution of major infrastructure, engineering projects and building/ institutional complexes and was later appointed as Vice President for the Oil & Gas Division. 14 Dayang Enterprise Holdings Bhd Board of Directors’ Profile
KOH EK CHONG HASMAWATI BINTI SAPAWI Independent Non-Executive Director Independent Non-Executive Director Aged 59 | Malaysian | Male Aged 52 | Malaysian | Female
• Chairman of Audit Committee • Member of Joint Remuneration & Nomination Committee
Mr Koh Ek Chong was appointed as our Independent Puan Hasmawati Binti Sapawi was appointed Non-Executive Director on 2 December 2013. He is Independent Non-Executive Director of Dayang an accountant by profession. Mr Koh joined Hii King Enterprise Holdings Bhd on 3 January 2020. Hiong & Co in 1985 and is now one of the practicing partners. He is a Fellow member of the Association She holds a Bachelor of Arts (Hons, Economics) of Chartered Certified Accountants (UK), a member Canada, a Master of Business Administration, Australia of Malaysian Institute of Accountants, associate and a Master of Environmental Management member of the Chartered Tax Institute of Malaysia (Development Planning), Malaysia. She started her and a certified member of the Financial Planner career as an Economist in the Investment Division at Association of Malaysia. Land Custody & Development Authority (PELITA) from November 1992 to December 2005 before serving the Mr Koh was a City Councilor of Miri City Council Sarawak State Financial Secretary’s Office. since 2004 till 2013. He was awarded “Ahli Bintang Sarawak” (ABS) in 2008 and “Darjah Utama Yang Puan Hasmawati joined the State Financial Secretary’s Amat Mulia Bintang Kenyalang Sarawak with the Office in 2006, and she is currently the Director of title “Pegawai Bintang Kenyalang (PBK)” on 12 the Corporate Services & Investment Division at the September 2015 by the Tuan Yang Terutama Yang di- State Financial Secretary Office (Sarawak) handling Pertua Negeri Sarawak. Mr Koh is an Ahli Kehormat of corporate finance and investment activities. She sits Ikatan Relawan Rakyat Malaysia with honorary title of on the board of several state government-linked LT KOLONEL (Kehormat) RELA. He also serves as the companies. executive committee (EXCO) member in various non- governmental (NGO) associations and is appointed a member of the Special Committee by the Public ADDITIONAL INFORMATION Services Commission of Malaysia in January 2014. 1. Save as disclosed in the Profile of He is an Independent Non-Executive Director of Shin Directors, none of the Directors has: Yang Shipping Corporation Berhad. (i) Any directorship in public companies and listed issuers; (ii) Any family relationship with any director and/or major shareholder of Dayang; and (iii) Any conflict of interest with Dayang. Annual Report 2019 15 Board of Directors’ Profile
CHIN HSIUN EMILY HII SAN SAN Independent Non-Executive Director Alternate Director Aged 52 | Malaysian | Male Aged 43 | Malaysian | Female
Mr Chin Hsiun was appointed Independent Non- Ms Emily Hii San San was appointed as the Alternate Executive Director of Dayang Enterprise Holdings Bhd Director to Ms Wong Ping Eng, a Non-Independent on 3 January 2020. He graduated with a Bachelor Non-Executive Director of Dayang Enterprise Holdings degree in LLB (Hons) from University of Sheffield and is Bhd on 3 January 2020. a Barrister at Law from Lincoln’s Inn, England. She holds a Bachelor of Commerce Degree, major in He began his career as a Pupilage with Messrs Allen Accountancy and Diploma for Grates, University of & Gledhill Advocates and Solicitors, Kuala Lumpur in Otago, New Zealand. She is a Chartered Accountant 1995 -1996 and with Messrs. Yong & Co. Advocates, of Chartered Accountants Australia and New Zealand Kuching in 1996 -1997. He joined Messrs Yong Wong & and a member of Malaysia Institute of Accountants. Chin Advocates, Miri in 1997 and was appointed the Managing Partner in 2004. She joined Naim Group on 1 June 2010 as Finance Manager and then promoted to Deputy Director – Mr Chin has vast experience in litigation on corporate Finance in August 2012. On 1 February 2019, she was disputes including corporate set up and registration of promoted to Senior Vice President cum Chief Financial venture companies apart from the regular practice of Officer handling finance, corporate planning, conducting sale and purchase legal documentation, information technology and administration activities. conveyancing and banking documentation. Prior to joining the Naim Group, she has more than 15 years of working experience in accounting and tax He was also appointed as Miri City Councilor from the related matters in various industry via KPMG. period 2013 to 2019. She presently sits on the boards of Samalaju Properties Sdn Bhd (a subsidiary to Cahya Mata Sarawak Berhad) as alternate Director and as Director for Naim Land Sdn Bhd (subsidiary of Naim Group) and Kempas Sentosa Sdn Bhd (associate to Naim Group).
2. None of the Directors has: Ms Emily is the Alternate Director to Datuk Hasmi Bin (i) been convicted of any offence (other Hasnan, a Non-Independent Non-Executive Director than traffic offences) within the past in Perdana Petroleum Berhad. five (5) years; and (ii) been imposed with any public saction or penalty by the relevant regulatory bodies during the financial year.
3. Details of the Directors’ attendance at Board Meetings during the financial year are set out in the Corporate Governance Overview Statement on page 57. 16 Dayang Enterprise Holdings Bhd Key Senior Management
EDUCATION: • Bachelor Degree in Mechanical Engineering From Hanyang University of South Korea. • Master in Project Management from Universiti Teknologi Malaysia • Member of Board of Engineers Malaysia.
EXPERIENCES: With over 25 years of experience in the Oil and Gas industry, he has vast experience in the field of engineering, onshore and offshore construction, tender strategies, business planning and operational performance.
He began his career with Hyundai Engineering and Construction Co. Limited as a Junior Field Engineer. Determined and energetic, he was subsequently given the ALIAS BIN trust to lead the Business Development of the company’s Plant Division. Through MAT LAZIN the years, he has served in local and international companies in various positions. Senior Project In 2009, he joined Dayang Enterprise Sdn Bhd as a Project Manager tasked with the Manager responsibility of establishing Dayang’s Hook-Up and Commissioning (HUC) Division. Since then, he has successfully led the team in venturing into new segments which Aged 51 includes Engineering, Procurement, Construction and Commissioning (EPCC) and Malaysian Pre-Commissioning and Decommissioning Activities in the Oil and Gas sector. Male He is currently responsible to lead the Dayang’s Business Planning and Operational Performance overseeing all contracts for Peninsular Malaysia and International Operations, and leading the Fleet Operations and Chartering Division of Perdana Petroleum Berhad.
Encik Alias is currently an Executive Director of Perdana Petroleum Berhad. He does not have any family relationships with any Director and/or major shareholder, nor any conflict of interest with the Company. He has no convictions for any offences within the past 5 years (other than traffic offences, if any) nor any public sanction or penalty imposed by the relevant regulatory bodies during the financial year.
EDUCATION: • Master of Science in Transportation Planning from Universiti Teknologi Malaysia (UTM), Skudai, Johor. • Chartered member of the Chartered Institute of Logistic and Transport, International, UK.
EXPERIENCES: Encik Mohammad was the Health, Safety and Environment (HSE) Manager with a local shipping company in Miri, Sarawak overlooking the overall company’s activities on HSE management system from 1995 to 2006. He then joined Dayang Enterprise Sdn Bhd in 2006 as the HSE Manager and thereafter joined Yayasan Sabah Shipping as the Operations Manager in 2008 overlooking the overall company’s vessels operations. Encik Mohammad was appointed the Fleet Manager of DESB MOHAMMAD Marine Services Sdn Bhd on 2 January 2010. His responsibilities include marketing BIN MORSHIDI of the Company’s vessels as well as managing all aspects of the operations of the Fleet Manager Company.
Aged 60 Encik Mohammad does not have any family relationships with any Director and/ or major shareholder, nor any conflict of interest with the Company. He has no Malaysian convictions for any offences within the past 5 years (other than traffic offences, if Male any) nor any public sanction or penalty imposed by the relevant regulatory bodies during the financial year. Annual Report 2019 17 Key Senior Management
EDUCATION: • Bachelor of Commerce from University of Canterbury, New Zealand.
EXPERIENCES: He began his career in 1985 when he joined Hanafiah Roslan Mohammad as an Audit Semi-Senior Officer. Subsequently in 1986, he took up the position as manager with Tan Jin Kok & Co. (now known as Crowe Horwath) and was appointed as Director with TJK Taxation and Management Services Sdn Bhd in 1989.
In 1991, he joined Bumi Armada Navigation Sdn Bhd as Finance Manager and as Company Secretary of Bumi Armada Berhad. In 1997, he left and joined Oleander Enterprise Sdn Bhd as Personal Assistant to the Chairman. In 1999, he left and took up the position of Associate Consultant with TJK Taxation and Management Services Sdn Bhd before joining Dayang Enterprise Sdn Bhd as the Financial Controller in BAILEY KHO 2000. CHUNG SIANG Head of He brings with him many years of experience in the field of finance and accounting. Corporate Affairs, He is currently the Head of Corporate Affairs and Joint Company Secretary of Joint Company Dayang and its subsidiaries, having assumed this position in 2008 and is responsible Secretary for overseeing the financial and secretarial aspects of Dayang Group. Aged 59 Mr Bailey Kho is also an Executive Director of Perdana Petroleum Berhad and does not have any family relationships with any Director and/or major shareholder, nor Malaysian any conflict of interest with the Company. He has no convictions for any offences Male within the past 5 years (other than traffic offences, if any) nor any public sanction or penalty imposed by the relevant regulatory bodies during the financial year.
EDUCATION: • Bachelor of Science in Aeronautical Engineering Science from University of Salford, United Kingdom.
EXPERIENCES: Mr Thum joined Dayang Enterprise Sdn Bhd in 1991 as a Project Manager and was appointed Contract Service Manager in 2010. He was appointed the Senior Project Manager in 2015 to coordinate and supervise the overall operation and performance of the various projects for East Malaysia.
Mr Thum does not have any family relationships with any Director and/or major shareholder, nor any conflict of interest with the Company. He has no convictions for any offences within the past 5 years (other than traffic offences, if any) nor any public sanction or penalty imposed by the relevant regulatory bodies during the THAM FUN JEE financial year. Senior Project Manager
Aged 65 Malaysian Male 18 Dayang Enterprise Holdings Bhd Chairman’s Statement
Before the year 2019 ended, we were all very upbeat and Dear Valued bullish about going into the new year 2020 as we have Shareholders, achieved much in 2019 amidst the frequent financial market volatilities like the US-China trade tensions and geo-political upheavals. Our financial performance for On behalf of the 2019 was spectacular and our share price was hitting new highs. However, the optimism was but short-lived Board of Directors, it and it quickly diminished within a matter of weeks as is with great pleasure the volatilities extended into 2020 when the contagious that we present COVID-19 outbreak caught the world by surprise. The wide-ranging implications of the fast-spreading COVID-19 to you the Annual have immensely disrupted global supply chains, business Report for Dayang operations, economic, social, religious and sporting activities affecting the whole spectrum of everyone’s Enterprise Holdings Bhd daily lives. All these, together with a steep plunge in (“the Group”) for the crude oil prices, led to a massive stock sell-off causing a financial year ended 31 carnage in the equities markets world-wide. In addition, this was further aggravated by the failure of Organization December 2019. of Petroleum Exporting Countries (“OPEC”) and OPEC+ to agree on a massive oil production cut to cushion the impact of a weakening demand. Every country is pouring billions of dollars into economic stimulus packages to prevent their economies from going into recession and as part of a bigger world-wide strategy to avert this major crisis from developing into something worse. Annual Report 2019 19 Chairman’s Statement
Notwithstanding the negative turn of events recently, we are proud to announce that we have achieved the best ever annual profits in the long history of the Group in financial year 2019. Despite the external uncertainties and multiple headwinds from all directions, the Group has grown from strength to strength to hit the significant milestone, registering a massive 44% growth for our 2019 profits aftera stellar performance in 2018. The strong growth momentum has been envisaged as we maintained and carefully executed our business plans throughout the year.
What makes our success tastes better is that this comes in the midst of a synchronized slowdown in economic growth not just in Malaysia but also across the world. Notwithstanding the external macro headwinds due to the US-China trade tension in 2019, the Group continues to focus on delivering the work orders entrusted by our esteemed customers. Our unwavering pursuit for better operational excellence in delivering the hook-up commissioning and topside maintenance services remains as the cornerstone of our business. Also, our strong execution track record is another quality that adds to the sparkle.
We have achieved tremendous success over the past one year. Apart from our impressive financial results, we have finally and successfully completed our group- wide debt restructuring which will stand us in good stead going forward as the Group is now ready to embark on long-term growth plans to further maximise shareholders value given our more efficient capital structure. We are confident that our strong cash flow generation and solid balance sheet will enable us to achieve greater heights in the future for us to reward our faithful shareholders who have remained steadfast with us throughout the journey. We would like to emphasise that this would not be possible without the strong team effort of our loyal employees who have remained with the Group despite the challenges in the past.
Meanwhile, our vessel-chartering subsidiary, Perdana Petroleum Berhad (“PPB”) has also seen improvement in 2019 with better vessel utilisation despite the competitive market for offshore supply vessels. We are particularly delighted that the synergistic collaboration between the Group and PPB has indeed worked out as what we have envisaged, to be a leading integrated maintenance, construction and modification player. We believe this strong tie-up will enable the Group to attain unrivalled competitive advantage to bid for more jobs.
At this juncture, we would like to take this opportunity to express our heartfelt appreciation to all our dedicated Board of Directors, management team and employees who continue to place their faith with the company. The Group continues to keep the interest of its team members at the top of its priority as they are the core to the success of the Group all these years. Riding on the strong foundation, we are confident that the Group will continue to achieve good results and we are optimistic of steering the group to greater heights going forward.
Thank you.
DATUK HASMI BIN HASNAN Executive Chairman 20 Dayang Enterprise Holdings Bhd Management Discussion and Analysis
Dear BUSINESS AND OPERATIONS REVIEW Shareholders, Our business operations in 2019 witnessed a marked improvement as business activities picked up substantially in the second half of 2019 as the work orders from Maintenance, We herewith provide an Construction and Modifications Contract (MCM) and Pan overview of the business Hook-up and Commissioning Contract (Pan HUC) came in. The Group has been focusing on execution and ensuring operations of Dayang, smooth and timely delivery of its jobs to our key clients as track the financial review of record is of utmost importance in this competitive industry.
2019 and the Group’s After the slow start during the first quarter of 2019 as inclement expectations on the weather slowed down work progress resulting in low vessel business going into 2020. utilisation, we experienced a more robust work flow in the remaining of 2019. Vessel utilisation improved from a low of 40% in the first quarter of 2019 to 76% in the fourth quarter of 2019. On a full-year basis, vessel utilisation was stronger at 72%, compared to 64% in 2018 and 52% in 2017.
We are particularly excited with the higher work orders executed as the job momentum picked up strongly in the second half of 2019. More importantly, this is the very first time Annual Report 2019 21 Management Discussion and Analysis
that our annual revenue exceeded the RM1 Net Profit After Tax billion mark. The Group remained steadfast with its existing strategies focusing on its core RM231 million businesses, operational efficiencies and cash flows management. The positive results of cost optimisation were also reflected in 2019 as we enjoyed economies of scale RM160 million which expanded our profitability given our relatively low fixed cost despite much higher revenue.
The synergistic tie-up with Perdana Petroleum Berhad (“PPB”) has ensured the 2018 2019 Group will always have access to adequate Increased by 44% and reliable supply of vessels to position itself to take on engineering and construction projects as the combined expertise of Dayang and PPB will further enhance its Revenue competitive advantage. This could also help to set the platform for our future strategic RM1,046 million ventures into engineering projects, offering integrated offshore services to our valued RM938 million customers.
In view of the current low crude oil price and the global economic malaise, it is possible that oil majors and our existing clients may cut spending and there could be a slow down in offshore activities. We are hopeful that the cuts in some areas of the offshore activities could be mitigated by the increase 2018 2019 in new work orders from the contracts that grew by 12% were recently awarded. Over the past 12 months, the Group has secured several large maintenance, construction and Gross Margin modification contracts which are long-term in nature. Some of the notable contracts come from the likes of Carigali-PTTEPI Operating Company, Petronas Carigali and Roc Oil.
However, based on the current work orders 31% received from the oil majors and the work planning activity programs, the Group is unable to gauge the extend of any cuts in 41% work programs. Realistically, we envisage 47% 2020 to be slower than 2019 and therefore we would need to plan for any eventualities and to hope for a quick recovery to the 2017 2018 2019 world economies and crude oil price. 22 Dayang Enterprise Holdings Bhd Management Discussion and Analysis
FINANCIAL REVIEW
For the financial year 2019, the Group registered the best ever earnings in our long history as a leading oil and gas player in Malaysia. Our net profit after tax came in at RM231 million, compared to RM160 million in the financial year 2018, representing a whopping 44% year-on-year growth. What makes the strong financial results more remarkable is the fact that we achieved the stellar performance under an environment of a relatively more subdued oil price. Also, this has taken into account the losses at PPB which recorded a net loss attributable to shareholders of RM23.0 million, underlying the solid financial performance from Dayang’s core operating business unit.
Our financial year 2019 revenue grew by 12% year-on-year toa record high of RM1,046 million from RM938 million, reflecting the robust work orders from our key customers as well as improved vessels utilisation rate and charter rates. We are particularly delighted that our gross margin continued to improve to 47% in the financial year 2019, compared to 41% in the financial year 2018 and 31% in the financial year 2017. This clearly demonstrates the economies of scale of our operation within the Group.
In tandem with our earnings delivery, the Group’s balance sheet also strengthened further as our net gearing level improved to 0.45 times from 0.7 times in 2018 and 0.9 times in 2017, thanks to the strong operating cash flows and the successful group-wide debt restructuring and fund-raising exercises. Cash flow generated from operating activities came in at RM317 million, compared to RM310 million in the preceding year. In terms of shareholders’ fund, it has increased to RM1.44 billion from RM1.13 billion in the preceding year, reflecting our improved financial performance in 2019. Annual Report 2019 23 Management Discussion and Analysis
PROSPECTS
Fellow shareholders, whilst the Group has performed well previously and as much as we would like to see the momentum going forward to be as strong if not stronger than before, realistically, the Group will be impacted one way or another like any other service providers in the industry in light of the COVID-19 pandemic and depressed crude oil price. The Group had gone through bad experiences previously but this time around the scale and magnitude is unprecedented and we will obviously need to be vigilant and attuned to the ever-changing environment and be prepared to adapt to any underlying uncertainties and remain resilient. The Group is fortunate to share that with the completion of a successful group-wide debt restructuring and the fund raising exercises, the Group is now well equipped with a healthier and stronger balance sheet to sustain and weather through such major turbulence and unpredictable times.
Despite the setback on the world economic malaise created by the COVID-19 pandemic, we remain confident on the company’s future prospects as the Group will leverage on its managerial and operational experience in managing this current crisis to sail through the storm safely.
The Board remains committed in ensuring the business continues to excel and to steadily navigate the Group to another profitable year.
ACKNOWLEDGMENTS
On behalf of our Board of Directors, we wish to express our sincere thanks to all our stakeholders who have played critical roles in helping us to achieve our strong performance during the financial year 2019. The strong confidence from our valued clients and business associates helps us to go from strength to strength and the quality delivery from our vendors and suppliers ensure our impeccable track record remains intact. To our bankers, financiers and investors, we thank you for your continued support and trust in the Group.
Last but not least, to our management and employees, thank you very much for your hard work and commitment that helped us “Focus Towards Excellence”! Your loyalty with the Group over the years will not go unnoticed and we strive to steer towards greater heights in the future for us to reward all of you.
Thank you.
TENGKU DATO’ YUSOF BIN TENGKU AHMAD SHAHRUDDIN Managing Director 24 Dayang Enterprise Holdings Bhd Sustainability Report
ABOUT THIS REPORT FOCUS TOWARDS EXCELLENCE
Our theme “Focus Towards Excellence” highlights our efforts to continue progress towards a sustainable future. The theme has been consistent and it’s our driving force to our excellence. With the on-going material and technology advancements in the industry, we provide engineering and value-added design as a key component to our services and sustainability progress. At Dayang, sustainability is the way we manage and operate our business to best serve our customers, care for the environment, secure profits and drive long term prosperity.
Sustainability is a business method that ensures safety, efficiency and responsibility in a manner that protects Dayang employees, communities, shareholders and the environment, now and in the future.
Our daily operations align business performance with a commitment to environmental, social and community stewardship encompassing three elements:
Reduce the environmental footprint of our operations. • Transport materials in a manner that minimizes community and environmental impacts. • Reduce fuel, energy, water and other resources needed to move each ton-mile of freight. • Increase recycling and reuse efforts through waste minimization. • Strive to manage the Dayang supply chain in consideration of environmental effects and good governance. Annual Report 2019 25 Sustainability Report
Engage openly on sustainability issues. REPORTING STANDARDS • Communicate regularly with customers, - REPORTING SCOPE AND BOUNDARIES employees and external stakeholders on sustainability issues, goals and efforts. Our Sustainability Report (“SR”) focuses on • Provide opportunities to customers, suppliers, Dayang’s sustainability practices in which we employees and communities to actively focus and highlight more on the economic, participate in sustainability programs. environmental, and social (“EES”) impacts of • Increase transparency and disclosure of our our activities and initiatives. Also, throughout this sustainability performance through our annual statement, we demonstrate our full commitment to Corporate Social Responsibility Report and integrating sustainability practices and preparing related sustainability disclosures. this statement pursuant to Bursa Malaysia Securities Berhad (“Bursa Securities”) Main Market Support sustainable development. Listing Requirements (“MMLR”), Sustainability • Collaborate with customers and communities Reporting Guide issued by the Exchange and to grow sustainably, considering social, guided with guidelines issued by the Global economic and environmental effects. Reporting Initiatives (“GRI”). Hence, in preparing • Build innovative infrastructure to support this Statement, the Board has also considered the operations and minimize resource use. Sustainability Reporting Guide – 2nd Edition and its accompanying Toolkits, issued by Bursa Securities.
The contents of this Statement encompass the Group’s key business operations, which comprise our core services. This Statement emphasises the Group’s commitment towards ensuring that its business operations are carried out sustainably and responsibly, taking cognisance of the economic, social and environmental (“EES”) implications it is exposed. 26 Dayang Enterprise Holdings Bhd Sustainability Report
ABOUT DAYANG
Vision Core Values
To be a profitable leader in providing value-added services in Dayang’s Codes of Ethics for Directors a timely manner through an efficient and integrated approach. and employees govern the standards of conduct and performance expected. Dayang’s Board commits Mission itself and its Directors to ethical, business like and lawful conduct, • To create and develop critical path resources of the Group including proper use of authority and to achieve our objectives appropriate decorum when acting as • To maximize shareholders value Board members. • To be a responsible corporate citizen
WHO WE ARE
Dayang Enterprise Holdings Bhd (Dayang) is an investment holding company that has three wholly- owned subsidiaries under its wing Dayang Enterprise Sdn Bhd (DESB), DESB Marine Services Sdn Bhd (DMSSB) and Fortune Triumph Sdn Bhd (FTSB).
Dayang acquired 94.8% of the issued and paid-up share capital of Perdana Petroleum Berhad (PPB), a company listed on the Main Board of Bursa Malaysia Securities Berhad after the completion of a takeover in August 2015. As of 30th April 2020, Dayang owned 64.01% controlling stake in PPB. The principal activity of PPB is the provision of marine support services for the Oil and Gas industry.
The company’s operations commenced with DESB in 1980 whose initial business was the trading of hardware materials and supply of manpower for the offshore oil and gas industry.
This was however expanded to include provisioning of maintenance services, fabrication operations, hook- up and commissioning and charter of marine vessels.
Since its inception, the company has been awarded numerous contracts including those by Petronas Carigali Sdn Bhd, Sarawak Shell Berhad/Sabah Petroleum Company Limited, Exxon Mobil Malaysia, Murphy Sarawak Oil Co., Ltd and JX Nippon Oil & Gas Exploration (Malaysia) Limited, Repsol Oil & Gas Malaysia Limited (RML), Sapura, Sea Hibiscus and ROC Oil. Annual Report 2019 27 Sustainability Report
WHO WE ARE (CONT’D)
In line with its emphasis on quality, DESB was accredited with an MS ISO 9001:2015-Quality Management System certified by SIRIM QAS International Sdn Bhd in June 2017.
Dayang also received the Grand Award from Exxon Mobil and Petronas Carigali, in recognition of safety excellence in 2004. Since 2002, Dayang has been the annual recipient of Petronas Carigali Certificate of Appreciation.
Dayang, who has to date over 2,500 employees and recorded total group revenue of RM1,046 million for the financial year ended 31 December 2019, is widely recognised as a reputable provider of maintenance and support services within the oil and gas industry.
OUR CONTRIBUTION TOWARDS SUSTAINABLE DEVELOPMENT
Achieving the 17 Sustainable Development Goals (SDGs) set by the United National General Assembly in 2015 to counter major global issues such as urbanization, climate change, resource scarcity, demographic and social change and global economic condition by year 2030 entails contributions from governments, civil society and businesses.
Aligning ourselves to the aspirations of the Malaysian Government, we have adopted these goals as part of our sustainability journey. we identified four SDGs that the Group commits to support directly and/or indirectly ie SDG No 3, 4, 8, and 16
SDG ADOPTION
GOOD HEALTH We are committed to creating a safe workplace and promoting 3 AND WELL-BEING healthy living amongst our employees
QUALITY We provide highly intensive training and retraining to our staff due to 4 EDUCATION the nature of our business
DECENT WORK We aim to create a workplace that is conducive to productivity and AND ECONOMIC growth by providing job opportunities and equipping our employees 8 GROWTH with various training and development programmes
PEACE JUSTICE We place ethics and integrity at the centre of our business operations AND STRONG and have policies in place towards embedding such values 16 INSTITUTIONS throughout our organisation 28 Dayang Enterprise Holdings Bhd Sustainability Report
WHAT WE DO
There are four (4) core business of Dayang which comprises of the following:
• Provision of Maintenance Services • Fabrication Operations • Hook Up & Commissioning • Charter of Marine Vessels
PROVISION OF MAINTENANCE SERVICES FABRICATION OPERATIONS
Dayang’s subsidiary, Dayang Enterprise Sdn Fabrication generally refers to the valued- Bhd (DESB) undertakes the overall provision of added process of constructing structures maintenance services, which focuses on the out of various raw materials, primarily metal. following areas: Dayang undertakes engineering and fabrication services to meet the needs of its • Maintenance of Topside structure customers including onshore fabrication for • Maintenance of pipes and valves and products such as pipe and valve systems, skids • Electrical and instrumentation and other steel structures such as handrails and helideck extensions. Dayang currently The maintenance services are provided either has five (5) fabrication yards cum warehouses on a routine or scheduled basis or during a located in Labuan, Kemaman, Terengganu breakdown or emergency, in which case and Bintulu. maintenance works are undertaken due to fault or failure.
HOOK-UP & COMMISSIONING CHARTER OF MARINE VESSELS
Dayang also undertakes the provision of hook- At present, Dayang possesses nine (9) marine up and commissioning for steel structures and vessels which are used to provide offshore electrical and instrumentation services as part accommodation for its personnel as well of its supporting products and services to the oil as work area and equipment to facilitate and gas industry. the provision of its supporting products and services. Some of the tasks related to hook-up and commissioning of electrical and instrumentation Perdana Petroleum Berhad (PPB), a 64.01% includes electrical engineering; system design; subsidiary of Dayang, owns sixteen (16) vessels equipment and system procurement; wiring consisting of eight (8) Anchor Handling Tug including laying of new wires and cables; Supply Vessel (AHTS), six (6) accommodation panel installation and wiring; and testing and work barges (AWB), and two (2) workboats commissioning. (WB). Its core business encompasses the provision of offshore marine support services for the upstream oil and gas industry.
LOCATION OF HEADQUARTERS & REGISTERED OFFICE
Sublot 5 – 10, Lot 46, Block 10, Jalan Taman Raja, MCLD, 98000 Miri Sarawak, Malaysia Annual Report 2019 29 Sustainability Report
REVIEW OF OPERATIONS BUSINESS AND OPERATIONS REVIEW
The group’s operations are illustrated in the Please refer to our Management Discussion & Management Discussion & Analysis (MDA) section Analysis for further illustrations. in the annual report.
OUR APPROACH TO DRIVING SUSTAINBILITY
Our approach to sustainability is based on our core values of excellence, united we achieve, integrity, humility and building relationship, supported by policies and procedures at Group level. We consistently embed sustainability into the core of our business. The following value-added sustainability framework forms the basis of Dayang’s steps to strengthen our approach to sustainability. We aim to work with contractors and suppliers that perform in an economically, environmentally and socially responsible way, as set out in our Business Principles. Dayang’s Supplier Principles cover our requirements for suppliers in business integrity, health and safety, social performance and labour and human rights.
SUSTAINABILITY STRATEGY
1. As a Public Listed Company
• As a public listed company, we are pre-emptive of the sustainability matters mainly on the Economic value creation for the shareholder and stakeholder • We plan to elevate sustainability in company governance, through engaging in direct board oversight and accountability over environmental and social issues, more diversity and special expertise on boards, and linking executive and other employee compensation to sustainability goals; • We want to robust regular dialogues with key company stakeholders on sustainability challenges, including employees, investors, suppliers and consumers; • We are in progress to open reporting on sustainability strategies, goals and accomplishments; • We are in progress to develop systematic performance improvements to achieve environmental neutrality and other sustainability goals across the entire value chain, including operations, supply chains and products.
2. As a service provider
• We always provide quality service to all of the clients as they are part of our valued stakeholders. 30 Dayang Enterprise Holdings Bhd Sustainability Report
GOVERNANCE OF THE SUSTAINABILITY
Being a Public Listed Company, Dayang complies with the standards of corporate governance (CG) practices and being closely monitored under the leadership of our Board of Directors, as guided by the Malaysian Code on CG 2017.
In line with sustainability, The Board has the ultimate responsibility to ensure that the sustainability efforts are embedded in the strategic direction of the company. We have established a Corporate Sustainability Committee (CSC), to oversee the formulation, implementation and effective management of our sustainability matters in line with the strategies. The CSC is also supported by various working groups responsible for implementing the initiatives within the organization. The Managing Director will provide the Board on regular update relating to all key EES risks and opportunities (sustainability matters).
The governance of our sustainability agenda is a process that is important to the Company as it enables the business to effectively embed sustainability. Good governance structures also ensure that we are consistently aligned with our principles and standards. Demonstrating its commitment from the top, the Company’s sustainability agenda is governed by a CSC.
ORGANISATION STRUCTURE FOR SUSTAINABILITY
BOARD OF DIRECTORS
Corporate Sustainability Committee
Sustainability Respective Coordinator (PIC) Stakeholders
CSC Working CSC Working CSC Working CSC working CSC working Group 1 Group 2 Group 3 Group 4 Group 5
RESPONSIBILITIES OF CORPORATE SUSTAINABILITY COMMITTEE
• Advising the Board on the sustainable strategies; • Monitoring the implementation of sustainability strategies as approved by the Board; • Overseeing stakeholder engagement to ensure that all issues, grievances and suggestions raised are taken into consideration in managing sustainability matters; • Recommending to the Board its approval for its sustainability-related policies and goals; • Monitoring the implementation of policies and initiatives of sustainability management; • Overseeing the management of sustainability matters by focusing on matters material to the Group; and • Overseeing the preparation of the Sustainability Statement and recommending it to the Board
STRATEGIES AND DIRECTIONS
Despite the challenging operating environment, Dayang continues to practice prudence and stay focused on delivering quality growth, while being watchful of emerging risks. The Group is fully committed to uphold responsible financing which is reflected through its prudent infrastructure transformation as well as sustainability in its supply chain. Annual Report 2019 31 Sustainability Report
OUR MATERIALITY ASSESSMENT PROCESS
1 2 3 4 Objectives Identification and Stakeholder Prioritization & Scope Categorisation of Engagement Sustainability Issues
5 Process Review
1. Objectives & Scope
Dayang undertook a materiality study within the top management and middle management to determine the objectives and scope of the sustainability reporting. Our scope and boundaries covers all our entities and operations in Malaysia.
2. Identification of Relevant Sustainability Matters
The process initiated with sustainability issues relevant to Dayang Enterprise Holdings Berhad and its stakeholders. In generating the list, the Group assesses the operating environment and emerging trends affecting our sector and conducted a study across a broad range of references to identify the relevant sustainability issues. The references include Bursa Malaysia’s Sustainability Reporting Guide and Toolkits, and international standards such as the Global Reporting Initiative Standards.
Moving forward in 2020, we would intensify our effort to undertake a review of material factors and sustainability matters to ensure that our understanding of both the current and future risks and opportunities facing our markets is adequately addressed, as well as to gather stakeholder perspectives and ensure we are responding to their needs. As we update our material factors, we will continue to evolve our management approach to ensure that we are addressing them in a holistic and integrated manner. This may involve developing new policies and procedures, implementing various initiatives, measures and action plans, setting indicators as well as to establish a proper mechanism to capture, analyse and report sustainability data and information.
OUR MATERIAL FACTORS
As we monitor, manage and report on a wide variety of issues, the key to our approach is focusing our resources on material sustainability risks and opportunities that are associated with each material factor. Understanding our key priorities allows us to set our time, resources and investment to the best use.
The materiality process involved several steps including:
• Identification of potential material topics by reviewing GRI aspects, benchmarking against key corporate peers and analyzing past reports, which reflects the feedback from customers, community representatives and employees generally.
• Inventory of aspects and topics most important to external stakeholders, customers and their supply chain vendors, based upon requests, surveys and ongoing engagement during the reporting period.
The materiality factors are based on the priority of the organisation. 32 Dayang Enterprise Holdings Bhd Sustainability Report
OUR MATERIALITY ASSESSMENT PROCESS (CONT’D)
2. Identification of Relevant Sustainability Matters (cont’d)
Materiality Matrix
Materiality assessment is an important tool to identify the most relevant economic, environmental and social priorities that are consistent with our business strategy. Last year, we identified, assessed and prioritised 24 material sustainability initiatives in a workshop mode involving the sustainability working committee. The output of the assessment was plotted on a matrix which illustrates the impact of each material factor on the Company’s business as well as the stakeholders. This year we have maintained the same materiality matrix as it remains relevant to the Company’s operations.
A) Business - Key Materiality
Material Factors What Are The Risk What Are The Opportunities
COMPETITION
Dayang is exposed to Lesser chance to secure • Innovative products and eco-friendly competition within the contracts will impact the system could be offered to the industry Company’s business and clients as to improve on our core performance, value. • Review of Company’s operation processes and ensure more cost- effective. • Regional partnerships and collaborations. • Working with our clients to secure competitive deals.
MARKET STABILITY
A well-facilitated business, Any event – such as • Having a healthy approach to supported together breaches in regulation, ensure the integrity and stability with an effective and lack of effective of the market serves to engender balanced regulatory corporate governance trust and confidence, which in framework that provides (CG) practices – that turn encourages participation and adequate levels of undermines integrity or growth. client’s protection while stability will influence • Fostering a strong CG and facilitating business stakeholder confidence, sustainability culture will also drive efficiency and innovation, and possibly participation, long-term value, both in the market is imperative for the in the market. and within Bursa Malaysia. continued growth and Due to the low oil price • The group is always aggressive to development of our less project commitment look for potential strategy/options to business. by our clients. maintain its market strategy.
Combining the views from stakeholders and Dayang’s Management from the preliminary materiality process, the materiality table has been derived to show the different levels of importance of the sustainability matters. The below factors will be further enhanced in the coming years. Annual Report 2019 33 Sustainability Report
OUR MATERIALITY ASSESSMENT PROCESS (CONT’D)
2. Identification of Relevant Sustainability Matters (cont’d)
Materiality Matrix (cont’d)
B) Significance - Material Factors
Factors Why Material Managing Materiality Optimization/ To help the company Taking the necessary measures that Resources become efficient and all our staffs and resources are being (E1,E2) effective. optimised.
Market Market condition affects all Our business very much depends Condition businesses in every industry. on the market condition where we (E1) conduct a market study prior to engaging in any projects.
Compliance Compliance with laws and We provide adequate training (E2,E3) regulations is one of our main and resources to ensure we meet requirements. compliance obligations.
Safety Impact on the safety of We support the ongoing training (E2) the workforce to avoid of operational teams to ensure workplace injuries and understanding in recognising and customers to ensure the improving as well as maintaining safe safety of products. working conditions.
Quality It is part of our core business By obtaining prompt stakeholder (E3) value to satisfy all of our feedback to gauge our quality. customers.
Customer It is important for us to We conduct customer satisfaction Satisfaction benchmark ourselves and surveys to obtain customer’s (E3) to collaborate closely with feedbacks.
MATERIALITY customers to achieve mutual Very Important success.
Reputation To get a more realistic We take initiatives to enhance our (E2,E3) picture of how the business is reputation by providing balanced being perceived by others. reporting.
Procurement It ensures the stable, We always lookout for the best quality (E1,E2) sustainable procurement and and good pricing to be competitive. supply of resources.
Corporate To ensure that the company Governance is conducted Governance protects the members, according to various regulations and (E1,E2,E3) officers and management. subcommittees. The board oversees the governance based on a quarterly review of management reporting.
Customer It is important to build We take necessary measures to Privacy customer trust and loyalty. protect the customer’s privacy by (E1,E2,E3) having our staff trained on this matter. 34 Dayang Enterprise Holdings Bhd Sustainability Report
OUR MATERIALITY ASSESSMENT PROCESS (CONT’D)
2. Identification of Relevant Sustainability Matters (cont’d)
Materiality Matrix (cont’d)
B) Significance - Material Factors (cont’d)
Factors Why Material Managing Materiality Business Business model plays a vital We engaged in a high-level review of Model role in challenging market the business model with the directors. (E1) condition of the market and business. Networking – It is important to have new Our nature of business requires Stakeholder opportunities and positive networking with all parties to reconcile (E1,E2,E3) influence. the process. Product Mix To have a variety of products To be highly competitive we take (E1,E2,E3) that will fit each customer’s the initiatives to create a variety of needs. segments. Business Maintaining business ethics is We proactively promote and positively MATERIALITY
Very Important Ethics/Code our core values. reinforce good behaviours to the (E1,E2,E3) employees. Anti- This reduces risks of On-going monitoring, briefing and Corruption economic imbalance and review of compliance throughout (E1,E2,E3) compliance with laws, the Group are carried out to make international charters and sure that the company’s policies and conventions. procedures as well as the system of internal controls are being properly implemented.
Factors Why Material Managing Materiality Local It safeguards the We monitor and review the Environment environment impact. environmental compliance strategy Impact (E2) and performance.
Business Mix Diversification is part of We always look out for synergy (E1) our business model to stay businesses which creates a better sustainable. value to our core business.
Political It has a wide impact on the We always work with the government Stability (E1) economy. of the day. Important
MATERIALITY Climate Climate change would We managed this by creating a good Change have a significant impact on project management team which (E1,E2) business. looks into all the scenarios.
Social Media The use of social media We engage social media to promote (E1,E2,E3) boosts visibility among our service and product. potential customers and improves awareness about our brand. Annual Report 2019 35 Sustainability Report
OUR MATERIALITY ASSESSMENT PROCESS (CONT’D)
3. Our Stakeholders Engagement
Our interaction involves a large number of different stakeholder groups and this kind of engagement is important to ensure we can identify, prioritize and address material matters and be adopted in our business strategies. The business and functional units are empowered to interact with their respective stakeholders on their chosen platforms. All issues raised by stakeholders are brought to the attention of the Management Committee or Management Meetings by the respective business and functional units. Ongoing engagements where applicable are carried out on a regular basis as they are integral to our business development, relationships with stakeholders and commitment to sustainability.
Stakeholder Engagement
Our stakeholders are a vital part of our business. In seeking to better understand the material issues that affect our stakeholders, we are constantly working to improve our engagement processes. By addressing the interests of our stakeholders through appropriate engagement platforms, we can evolve our strategies to meet their expectations and focus our reporting on issues that are relevant to them.
Our key stakeholders are outlines on the below table, along with the forms of engagement and key topics of interest that we seek to address.
Stake Holder Group Engagement Approach Engagement Focus & Objectives Frequency CUSTOMERS 1. Interval Meetings • A brief feedback will be Monthly 2. System Audit – HSE/ obtained from the end user Operation/Tendering & customer Audit • To correspond with the Monthly operation & safety • Discussion on back logs and Monthly improvement • Verification on the present Monthly Operation – system and SOPs
EMPLOYEES Meeting with the Sharing & bonding with the Daily worksite management & employees management & employee meeting – both office & marine crew (Informal) – employees will raise issues
a. Cost Optimization - Cost efficiency Every project Meeting and discussion mobilisation
b. Brand Value - Meeting Minimize downtime and improve Project and KPI’s turnaround time completion & evaluation
c. Energy Usage - Meetings, Utilities consumption and Monthly record and monitoring comply to MARPOL requirement
d. Water usage - Meeting, Maintenance management Monthly record and monitoring
e. Sound measurement - Awareness training on Personnel Half yearly Meetings and briefings Protective Equipment (PPE) and by 3rd party comply to industry requirement 36 Dayang Enterprise Holdings Bhd Sustainability Report
OUR MATERIALITY ASSESSMENT PROCESS (CONT’D)
3. Our Stakeholders Engagement (cont’d)
Stakeholder Engagement (cont’d)
Stake Holder Group Engagement Approach Engagement Focus & Objectives Frequency EMPLOYEES f. Accident Rate - Meeting ZERO accident tolerances Monthly (CONT’D) and engagement
SUPPLIERS/ 1. Code of Ethics • Sound payment practices Quarterly SUBCONTRACTORS 2. Request for Proposal and vendor performance. & BUSINESS 3. Supplier Evaluations • Maintaining good - PARTNERS 4. Quarterly review relationship with supplier. 5. Review new purchases • Audited/evaluate main Yearly 6. Site visit contractor to ensure 7. Establish price compliance. agreement/Contracts • Supplier assessment review Yearly for cost optimization and performance.
REGULATORS Compliance with local Comply with all the Half yearly authorities’ requirements requirements
COMMUNITY 1. Community Social requirements and specific Yearly development programs feedback on programs 2. Update the neighbourhood
4. Prioritization of Material Sustainability Matters
Dayang has undertaken a stakeholder prioritization and engagement process to engage with its stakeholders. These include ongoing efforts to engage with stakeholders in the usual course of business through the day-to- day operations, as well as specific engagements carried out to seek stakeholders’ feedback. The outcome of these engagements was considered in the course of the Group’s materiality assessment.
As part of the process in conducting the materiality assessment of sustainability matters, the Group has conducted the specific engagement process as follows:
• To determine the key stakeholders with whom the Group should engage, the Group carried out assessments to identify key stakeholders based on each stakeholder’s influence and dependence on the Group. • To gain an insight into these key stakeholders’ concerns, interests and expectations, the Group conducted discussions including on-going sessions throughout the year to gauge stakeholders’ concerns pertaining to the list of sustainability matters identified. • Where applicable, Dayang also took into account feedbacks from other stakeholder groups, gathered through various channels and through the ongoing engagements during the course of conducting its business operation. Annual Report 2019 37 Sustainability Report
OUR MATERIALITY ASSESSMENT PROCESS (CONT’D)
5. Process Review
The materiality process is undertaken as a key component of Dayang’s journey towards identifying the material sustainability matters. The CSC has reviewed and approved the processes and outcome of the materiality process including the Group’s materiality which guides the Group in addressing and managing its material sustainability matters in its business operations.
ECONOMICS
Economic scenario remains as our core glitches based on the market condition of the global influence. The company has taken a great level of measures to identify the critical risk which influence the strategy of the company. By taking necessary steps with the senior management and with board input we foresee to mitigate the risk elements.
• We ensure returns to our investors by targeting a minimum return on assests for our investments. • We support community development via charitable donations and sponsorship. • We create job oppurtunities through employing staff and engaging suppliers, consultants and contractors.
The following policies and procedures have been illustrated in the company website.
• Board Charter • Terms of Reference - Audit Committee • Terms of Reference - Joint Remuneration & Nomination Committee • Whistleblowing Policy
Other policies and practices are as below:
• RISK MANAGEMENT • OUR SUPPLY CHAIN
An integral part of good corporate Sustainability in the supply chain has been increasingly governance, a comprehensive Risk recognised as an important aspect of corporate Management framework enables responsibility. In making responsible sourcing decisions, Dayang to proactively identify, Dayang has started to explore putting in place an communicate and manage risks appropriate approach to consider suppliers’ economic, and exposures in an integrated, environmental and social (“EES”) credentials in the systematic and consistent manner. lifecycle of the supply chain. In driving risk awareness, decision- making and business processes are In the emplacement of new suppliers, the Group has begun put through prudent risk assessment. to incorporate sustainability – related criteria in assessing Fraud and corruption risk has been the suppliers’ business practices such as workplace identified as material to ensure relations and, occupational health and safety. For existing sustainability. vendors and suppliers, the Group in the process of sending out surveys to selected suppliers for them to share and affirm their commitment towards EES.
Dayang is cognizant that there is still much to improve on managing sustainability in supply chain and will continue to collaborate with its suppliers and vendors to work towards enhanced sustainability practices with respect to EES matters. 38 Dayang Enterprise Holdings Bhd Sustainability Report
ECONOMICS (CONT’D)
Other policies and practices are as below (cont’d): • COMMITMENT TO QUALITY • CUSTOMER SATISFACTION
Dayang has the policies, procedures Our business success is highly dependent on and best practices in place to deliver our ability to fulfil the needs and requirements products and services of outstanding of our customers. In order to improve customer quality. Furthermore, regular reviews, satisfaction and further meet their expectations, we process improvements and quality control make continuous effort to enhance our services, assessments are ensuring that our processes particularly in addressing customer feedback. remain in compliance and are continually enhanced. Most Group divisions are now As such, we have conducted a customer securing compliance with ISO 9001-2015 for satisfaction survey involving our clients with a better quality. respect to product quality, product safety and overall activities performance for continuous • SAFETY AND HEALTH enhancement.
It is one of our key priorities to maintain a Customer satisfaction and engagement was safe and healthy work environment for our identified as one of the most important material workforce. Our Safety and Health Policy issues in the marketplace dimension across all our goes beyond the requirements of the divisions. Knowing exactly what customers expect Occupational Safety and Health Act 1994 from us improves our bottom line and strengthens to ensure that our talent works under safe our brands and reputation in the long term. We conditions. Our operations are governed conduct half yearly customer satisfaction surveys. by an internally established occupational The feedback generated provides insights into safety, health and environmental customer expectations that enable us to develop management system, which is compliant and deliver better products and services with the international standards of ISO14001. We also believe in providing a comfortable • BUSINESS CONDUCT and conducive working environment for our employees. We strive to be environmentally responsible and encourage all our stakeholders to do the same. In 2019, we only have one medical Consequently, they need to use sustainable treatment case (MTC) and 47,828 Hazard materials whenever they are cost-effective. Hunt/UAUC/ACT.
• PROCUREMENT PRACTICES
Supplier and sub-contractors are selected through selection and bidding processes. Dayang has fomalised procurement operating procedures to support the procurement process in the Group emphasising on satisfactory quality of products and services with competitive pricing. The selection of sub-contractors and suppliers are based on appropriate synergy of technical, financial, pricing and quality of service criterions. Annual Report 2019 39 Sustainability Report
ENVIRONMENTAL
Towards a Greater Planet
We are mindful of the environmental impact of our activities and maintain full compliance with all the environmental regulation. We take responsibility to managing our environmental impacts seriously. Dayang will continue to develop effective environment initiatives to protect the environment.
The industry we are in have extensive direct and indirect impacts on the environment and aligning ourselves with the goals of sustainable of sustainable development.
VESSEL EMMISSION WATER MANAGEMENT & CONSUMPTION
Vessel and machine emissions are We promote the water-saving practices among employees and a key material issue in our industry. adopting water-efficient technologies and equipment wherever Dayang ensures that the air quality possible. The water consumed at our head office is obtained from is protected and continues to the municipal water supply. We have taken small steps to control explore strategies to improve this the water used to be in line with the sustainability efforts, namely: aspect. As a whole, all the Vessel and machines are emphasized to • Slow the flow. Adjusting water pressure/outflow for toilets, undergo scheduled maintenance, washbasins, pantry, throughout our head office building. testing and repair work periodically. • Seek the Leak. Conducting checks and fixing leaks immediately, where possible. ENERGY MANAGEMENT
(a) Electricity
We understand that the energy management is essential for combating climate change and for lowering an organisation’s overall environmental footprint. Our electricity supply is from the local supply namely Sarawak Energy, and we aim to minimize the energy usage in our head office by implementing the following efforts:
• A lighting schedule across key areas in our head office to switch off lights during certain hours of least use. • Maintenance and replacement of electrical equipment and light fittings to maximize energy efficiency. • Campaign to remind all staff to switch off the lighting, water dispenser, air conditioning, or • Other electrical appliances in office and pantry when they are not required.
(b) Fuel
The Vessel’s Fuel Consumption is illustrarted in the graph below :
Fuel Consumption
2019
2018 Year
2017
1,230,000 1,240,000 1,250,000 1,260,000 1,270,000 1,280,000 1,290,000 (RM)
Diesel Consumption (Vessel’s fuel consumption)
The increase in fuel consumption in 2019 was mainly due to the increase in revenue by RM108.0 million. The fuel consumption increased approximately by RM40,000.00 in tandem with the revenue generated. 40 Dayang Enterprise Holdings Bhd Sustainability Report
ENVIRONMENTAL (CONT’D)
WASTE MANAGEMENT
Paper Usage
Dayang acknowledges that the environmental impact of paper usage is significant. The Group’s approach to waste management is to avoid unnecessary paper consumption and waste generation, where possible and appropriate, in order to reduce the wastage. Dayang has always looked at ways to reduce paper usage, so that less waste. Generally the group practises the following on the paper management:
• Reducing paper – by encouraging avoiding printing and photocopying and emphasising on paperless and electronic mode. In addition to this, practise double sided printing or reduce the size to have the best economical usage of papers. • Reusing – by printing on the other side of the printed papers. • Recycle – recycle the papers by having proper recycling bins.
Schedule Waste
2019
2018 Year
2017 (Kg) 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000
Scheduled Waste Disposed (Plant)
Increase in offshore scheduled waste was due to high levels of activities in 2019 in the offshore facilities and platforms. Increase in revenue and business has contributed to the increase in the scheduled waste.
STORAGE AND COLLECTION OF RECYCLABLES
Dayang also has come out with initiative for storage and collection of wastages and recyclables. This Waste initiative objective includes: Oil
• To provide dedicated area and storage for collection of non-hazardous material for recycling Steel Aluminium • To facilitate the reduction of scheduled waste generated that is hauled and disposed to licensed Item Reused/ disposal companies Recycled/ • To designate a dedicated area where on-site Disposed at Site sorted waste materials can be stored in separate skids for collection facilities. Plastic Paper
The graphic shows the types of items recycle/reused/ disposal at site. Construction Oil Annual Report 2019 41 Sustainability Report
SOCIAL OUR APPROACH
The Importance of Community Our initiatives in the community are centred on:
The Group is committed to 1. Workplace promoting Corporate Social (a) Education and Individual Development Responsibilities (CSR) as an integral (b) Sports and Recreational Activities part of the Group whilst pursuing (c) Management QHSSE Away Day cum Budget session 2019; business growth to enhance 2. Community; shareholders and stakeholders 3. Safe and Healthy Workplace Practices; value. Management recognises 4. Leadership & Commitment; that for long term sustainability, 5. Management Review for HSSE Policies & Procedures. its strategic orientation will need to cater beyond the financial 1. Workplace parameters. The following graphs are illustrated based on the social segment In 2019, values for safety, quality, in the organisation. integrity, diversity, innovation, and sustainability have shaped Employment Diversity in Terms of Race (%) our ongoing commitment to Corporate Social Responsibility. It 5 6 10 has challenged us to reach even 11 10 greater height to ensure that 15 we are a responsible corporate 2017 2018 2019 citizen, employer of choice, good partner and neighbour, 84 84 75 and a positive contributor to the economy during economic downpour. Malay Chinese Sarawak Natives
A strong commitment to CSR Employment Diversity in Terms of Age (%) programme can protect and enhance a company’s brand. 1 1 1 The company’s good work, will 4 4 3 help create a positive working environment and attract 2017 2018 2019 desirable employee with a strong commitment to Corporate Social Responsibility programme. 95 95 96 Everyone can benefit when the company’s focus on social Under 30 30 - 50 Over 50 responsibilities.
The Group managed to organise New Hires in Terms of Age (%) several activities to sustain its CSR responsibilities to the environment, 11 43 9 employees and community. 5 Among the major programme initiated were Quality, Health, 2017 2018 2019 Safety, Security and Environmental (QHSSE) campaign, QHSSE Away 84 57 91 Day, Sport and Recreational activities and welfare events. Under 30 30 - 50 Over 50 42 Dayang Enterprise Holdings Bhd Sustainability Report
SOCIAL (CONT’D)
OUR APPROACH (CONT’D)
1. Workplace (cont’d)
(a) Education and Individual Development
Dayang is committed to provide a safe work environment and ensures team members are properly trained in all aspects of their work. In view of this, the company’s Health, Safety, Security and Environmental “HSSE” programme is designed to integrate initiatives into all aspects of business operations.
HSSE is responsible for interpreting and acting upon applicable federal, state and local regulations and/or proposed legislation relevant to the Occupational Safety & Health Safety Administration, Department of Environmental (DOE), and Department of Occupational Safety and Health (DOSH). Our HSSE programme infrastructure is designed to link Dayang headquarters (Miri) to all locations including offshore operations with local expertise and resources allocated to support the implementation of the programme.
The HSSE Programme includes: The Group continuously provides its employees with skills development and training programmes • Leadership through partnership with that encourage progression and self-enrichment. Operations and HSSE Teams; Throughout the year under review, Dayang • Policy Guidelines outlining company conducted several in-house trainings to motivate and regulatory requirements; employees and to upgrade their skills and • Education and Awareness throughout knowledge. Training attended by the relevant Dayang’s Operations; employees during 2019 were as follows: • Goals and Measurements related to Key Performance Indicators; and • OSH for Supervisors course • Monitoring and Recognition to evaluate • Driving course progress intermittently throughout the • Defensive First Aider courses year and recognise achievements. • Effective Incident Reporting and Analysis Technique course • Hearing and Loss Prevention course • Scaffolder Competent training as per DOSH requirements • PTW applicant for Petronas course • Working at Height course • OSH Management System – Moving Ahead with ISO 45001 : 2018 • CEP courses and training for SHO (Safety and Health Officer) • OGSP (Oil & Gas Safety Passport) Course • Basic Rigging and Slinging course • Banksman course Annual Report 2019 43 Sustainability Report
SOCIAL (CONT’D)
OUR APPROACH (CONT’D)
1. Workplace (cont’d)
(a) Education and Individual Development (cont’d)
Total Training Hours Training Hours in Terms of Employee Category of Employees 2% 2% 2% 0% 3% 3% 4%
12000 18% 18% 2017 2018 2019 10000
8000 77% 77% 94%
Non-Executive Executive Middle Management Senior Management 6000
4000 Breakdown of Representatives in the OSH Committees
2000 50% 50% 56% Management 2017 2018 2019 0 Employee 2019 2018 2017 50% 50% 44%
(b) Sports and Recreational Activities
In addition to encourage continued participation, Dayang prides itself on developing programmed and projects in partnership with the community that promotes a series of benefits beyond the traditional aspirations of improved health and wellbeing.
It is our culture and belief that sport and recreation can be a vehicle for positive social change. By participating in sport can improve the quality of life of individuals and communities, promote social inclusion, improve health, counter anti-social behaviour, raise individual self-esteem and confidence, and widen horizons.
It can be shown that, in partnership with a range of organisations and agencies, sport can assist in the achievement of their policy objectives. 44 Dayang Enterprise Holdings Bhd Sustainability Report
SOCIAL (CONT’D)
OUR APPROACH (CONT’D)
1. Workplace (cont’d)
(c) Management QHSSE Away Day cum Budget Session 2019
The Company also held a Management QHSSE Away Day cum Budget Session for the year 2019 for members of management on 4th to 7th December 2019 at IOI Jakarta Sedayu Darmawangsa, Kebayoran Baru, Jakarta, Indonesia. Senior Management participated in the programme to promote their commitment and to demonstrate visible leadership in line with effective collaboration through sharing of best practices in maintaining QHSSE besides presenting their 2019 plan.
The main objective of this session was to plan and discuss QHSSE issues, Budget for 2019, current projects and forecast performance as well as the company’s direction and way forward for the year 2019 challenges
2. Community
Dayang is dedicated in supporting the community by reaching out to the community around us. During the financial year, Group had made monetary donation amounting to RM 209,100 tovarious organisations like charities, sports activities and religious establishments. These contributions were in line with the Group’s commitment to support and keep abreast with society’s evolving needs.
In conjunction with the Company’s Quality, Health, Safety, Security and Environmental (QHSSE) Campaign, the Company organised various activities such as:
No Activities Date 1 Blood Donation Drive at Miri Head Office and MPO Office 4th September 2019 2 Blood Donation Drive at Labuan 12th September 2019 3 Dayang Sihat Programme in conjuction with launching the QHSSE 25th September 2019 week Campaign 2019
Annual Report 2019 45 Sustainability Report
SOCIAL (CONT’D)
OUR APPROACH (CONT’D)
3. Safe and Healthy Workplace Practices
As a responsible corporation, we respect the interest of our stakeholders, shareholders, employees, customers, suppliers, teaming partners, and the wider community. We actively seek out opportunities both to improve the environment and to contribute to the well-being of the communities in which we do business.
Dayang is committed to provide its employees with safe and healthy condition of workplace. We have effective and efficient management arrangements in place to ensure the wellbeing of staff and others who may be affected by our activities to minimise the adverse impacts to individuals and business from ill health and injury. We take a precautionary approach by applying the requirements defined by our Health, Safety, Security and Environmental (HSSE) standards being set at the beginning of each year. In our own HSSE management practices, we comply with all HSSE policies and procedures as well as our clients’ requirements.
We are committed to take responsibility for our own safety and the safety of others. We believe that all incidents and accidents can be prevented. We always emphasize on our high HSSE standards of conduct when dealing with clients, suppliers and other stakeholders.
We are constantly improving our HSSE performance with the substantial increase in the size of our workforce. This is a good indication that we are managing our business effectively, efficiency and responsibly. However, Dayang aims to continually improve its system thus safeguarding against complacency. We will continue to set ourselves ever more ambitious targets.
As we value the health of all our employees, we are continuously monitoring conditions at the work sites to ensure that employees and contractors are not subjected to conditions that could lead to adverse health effects.
Throughout the year we have conducted a number of HSSE trainings and courses for various groups at different levels of personnel to improve awareness, skills and knowledge throughout the organisation.
QHSSE Week Campaign is a yearly event organized by Dayang. The details of the Campaign organized in 2019 are illustrated below :
QHSSE WEEK “Healthy Life, Safety Act, Quality Work” CAMPAIGN: “Enhance Quality and HSSE as Our Culture” Date 25th September 2019 (Wednesday) Venue Eastwood Valley Golf & Country Club, Miri Objectives • To reinforce the management • Celebrating the safety achievements team’s commitment to provide to – date; quality services under a safe, healthy • To ensure effective communication and environmental friendly working between management team with environment; various worksites team; • Reduce accidents on sites at our • To ensure all work processes comply facilities; with DESB’s policy; • Increase awareness of the importance • To warrant, and continue to improve of being committed to safety and quality products and services, with health every day; employee’s safety and eco-friendly • Inspiring all of us to share best practices being the top priorities; and to work together to strengthen our • To instill the healthy life style among all industry’s safety culture; staff of the company. 46 Dayang Enterprise Holdings Bhd Sustainability Report
SOCIAL (CONT’D)
OUR APPROACH (CONT’D)
3. Safe and Healthy Workplace Practices (cont’d)
To ensure the safety and health of our employees, we conducted various yearly HSSE programmes and campaigns. The programmes conducted in 2019 were as follows:
1. Auditors Training for ISO 14001:2015 & ISO 9. Monthly HSSE Liaison Engagement Session 45001: 2018 with various Client 2. Conducted Noise Monitoring 10. Audit by Client 3. HSSE Training (both in-house and external) 11. Conducted Random Drug & Alcohol Test for 4. Conduct Pre-mob Briefing prior to Personnel Mobilisation of Crew to Offshore 12. Health Monitoring for BMI and Blood Pressure 5. Organised Management Inspection Visit for Personnel (MIV) or Management Site Visit (MSV) 13. Timely Disposal of Scheduled Waste 6. Management HSSE Visit (MHSEV)/ 14. Attending Client HSSE Forum & Seminar, etc. Inspection by PCSB & DESB Team. 15. Safe Handling of Chemical 7. Conducted Monthly OSH Committee 16. Conducted UDAT(Urine, Drug & Alcohol Meeting and LOCHSEC Meeting Test) 8. Quarterly Senior Management HSSE 17. Dayang Sihat Programme Engagement Session with Clients
Note: Safety Manhours without LTI as at 31.12.2019: 9,835,418 manhours Annual Report 2019 47 Sustainability Report
SOCIAL (CONT’D)
OUR APPROACH (CONT’D)
4. Leadership & Commitment
Top management must ensure that the requirements of HSSE management system, including the policies and objectives, are in line with the strategy of our organisation.
Additional resources and the HSSE Management System are being progressively introduced. Dayang has achieved the two International Standard of Certifications on Safety and Health Management System, ie ISO 45001 : 2018 and Environmental Management System ISO 14001 : 2015. Dayang has upgraded its ISO 9001 : 2015 to 2015 version.
As an organisation of all kinds are increasingly concerned about achieving and demonstrating sound Occupational Health and Safety performance to their shareholders, employees, clients and other stakeholders by managing the hazards and improving the beneficial effects of their activities, products and services. Increasingly, stringent legislation, the development of economic policies, human resources management and other measures are used to foster Occupational Safety and Health and protection and welfare.
The two certifications are part of the company’s integrated effort towards achieving enhancement and continuous excellence in Health, Safety, Security and Environmental (HSSE). The implementation of the two systems are targeted to reduce accidents and risk of losing workers through injuries, thus ensuring that disruption caused by accidents is being kept low. The ISO 14001 : 2015 Environmental Management System (EMS) is a tool to enable us to identify and control the environmental impact of our activities and products or services besides improving environmental performance continually.
In addition to enhancing the organisation’s reputation and brand, the ISO certification also demonstrates that the organisation adheres to high standards with regards to Occupational Safety and Health. The Company will continue with its unwavering commitment to safety through continuous education and learning process across the board. 48 Dayang Enterprise Holdings Bhd Sustainability Report
SOCIAL (CONT’D)
OUR APPROACH (CONT’D)
5. Management Review for HSSE Policies & Procedures
The Management Review process requires that the HSSE policies and procedures and other documents are reviewed by Management at planned intervals to ensure continued system effectiveness and efficiency.
The details of amendments were made accordingly. The current policies, procedures, guidelines and other documents are as follows:
I. HSSE Policies II. HSSE Procedures
1. Management Health, 1. Incident/Accident Investigation Procedure Safety and Security 2. Emergency Response Procedure Policy Statement 3. Lifting Procedure 2. Management 4. Blasting and Painting Procedure Environmental Policy 5. Permit to Work System Procedure Statement 6. Job Hazard Analysis Procedure 3. Sustainable 7. Scheduled Waste Disposal/Storage Procedure Development Policy 8. Confined Space Procedure 4. HIV/AIDS Workplace 9. Office Safety & Evacuation Procedure Policy 10. “New Comer” Helmet Scheme Procedure 5. Stop Work Policy 11. Water Bunkering to Workboat Procedure 6. Scheduled Waste 12. Fuel Bunkering to Workboat Procedure Management Policy 13. Lifting, Rigging/Installing & Retrieving of Workboat 7. Substance Misuse Gangway at Offshore Platform Procedure Policy 14. Medical Emergency Evacuation Procedure 8. No Smoking Policy 15. Flushing Procedure 9. Personal Protective 16. Cold Cutting Procedure Equipment Policy 17. Health, Safety & Environmental Audit System Procedure 18. Welding & Cutting Procedure 19. Competency Assurance Procedure 20. Management of Change Procedure 21. Unscheduled Waste Management Procedure 22. Handling of Store & Flammable Items Procedure 23. Chemical Management Procedure 24. Forklift Handling Procedure 25. Occupational Safety & Health Committee Term of Reference (TOR) 26. Environmental Aspect and Impacts Procedure 27. Legal and Other Requirements Procedure 28. Working at Height Procedure 29. Communication Procedure 30. Hazard Identification, Risk Assessment and Determination of Control Procedure 31. Performance Monitoring Procedure 32. Security Guideline & Procedure 33. Suppliers and Contractors Health, Safety, Security and Environmental Management Procedure 34. Abrasive Blasting Operation Procedure 35. Alcohol and Illicit Drugs Procedure 36. Gas Cylinder Procedure 37. Training and Competence Procedure Annual Report 2019 49 Sustainability Report
SOCIAL (CONT’D)
OUR APPROACH (CONT’D)
5. Management Review for HSSE Policies & Procedures (cont’d)
The details of amendments were made accordingly. The current policies, procedures, guidelines and other documents are as follows (cont’d):
III. HSSE Guidelines
1. Guideline on Channel of Communication 2. Guideline on Baggage & Body search 3. Guideline for Hearing Conservation and Noise Control Programme 4. Land Transport Safe Journey Management Guideline
IV. HSSE Management System
The contents of HSSE-MS were rearranged to align with Petronas’ HSSE-MS which uses the following eight elements:
1. Leadership and Commitment 2. Policy and Strategic Objectives 3. Organisation, Responsibilities, Resources, Standards and Documents 4. Hazards and Effects Management Process 5. Planning and Procedures 6. Implementation and Monitoring 7. Assurance 8. Management Review
V. Corporate HSSE Strategic Plan (5 Year Plan)
The Corporate HSSE Strategic Plan with effect from Y2019 to 2023 was presented to the Committee for comment and subsequently approval during the process of Management Review. The plan was approved and will be used for the next five(5) years ie till 2023. 50 Dayang Enterprise Holdings Bhd Sustainability Report
MOVING FORWARD
Dayang aspires and committed to the sustainability journey as a business partner, an employer, environmental curator and a value creator for shareholders. By rational and acting sustainably, we will deliver good quality and better customer service and enhances the financial results and position of the company for a strong future.
This is Dayang’s third Sustainability Statement, and although we have made some development towards formalising sustainability within our business, we recognise that we still have room for enhancement, both in terms of initiatives undertaken and our reporting structure. As we continue on our sustainability journey, our ultimate goal is to build a sustainable business for generations to come. To achieve this, we will continually keep abreast of developments in our industry, actively and regularly engage our stakeholders, build upon our existing sustainability framework, and seek to further embed sustainable practices within our businesses to improve our overall sustainability performance.
Accelerating in year 2020, we will enhance the materiality factors and metrics and targets to measure issues that are material to our business and move towards benchmarking our progress against international standards of reporting. We will continue to strengthen sustainability initiatives across our value chain by implementing new strategies and initiatives, promote healthy lifestyles, exceed customers’ satisfaction, reduce our environmental footprint, and protect vulnerable workers and communities.
This Statement has been approved by the Board and is current as at 18 May 2020. Annual Report 2019 51 Sustainability Report
GRI Content Index
This Content Index provides and overview of the GRI Standard Disclosures made in this Sustainability Statement and the Dayang Enterprise Holdings Bhd Annual Report 2019.
General Standard Disclosure
Organisational Profile Topic-specific Standard: Economic (cont’d) Disclosure 102-1 Name of the organisation Disclosure 203 Management Approach: Indirect Disclosure 102-2 Activities, brands, products, and Economic Impacts services Disclosure 204 Management Approach: Disclosure 102-3 Location of headquarters Procurement Practices Disclosure 102-4 Location of operations Disclosure 205 Management Approach: Anti Disclosure 102-5 Ownership and legal form Corruption Disclosure 102-6 Markets served Disclosure 205-1 Operations assessed for risks Disclosure 102-7 Scale of the organisation related to corruption Disclosure 102-8 Information on employees and other Disclosure 205-2 Communictaion and training about workers anti corruption policies and Disclosure 102-9 Supply chain procedures Disclosure 102-11 Precautionary Principle Approach Disclosure 102-12 External initiatives Topic-specific Standard: Environmental Disclosure 302 Management Approach: Energy Strategy Disclosure 302-1 Energy Consumption within the Disclosure 102-14 Statement from senior decision-maker organisation Disclosure 302-3 Energy Intensity Ethics and Integrity Disclosure 302-4 Reduction in energy consumption Disclosure 102-16 Values, principles, standards, and Disclosure 303 Management Approach: Water norms of behavior Disclosure 305 Management Approach: Emissions Disclosure 307 Management Approach: Governance Environmental Compliance Disclosure 102-18 Governance Structure Disclosure 307-1 Non Compliance with environmental laws & regulations Stakeholder Engagement Disclosure 102-40 List of Stakeholder groups Topic-specific Standard: Social Disclosure 102-42 Identifying and selecting stakeholders Disclosure 401 Management Approach: Disclosure 102-43 Approach to stakeholder Employment engagement Disclosure 401-1 New Employees hired Disclosure 102-44 Key topics and concerns raised Disclosure 403 Management Approach: Occupational Health and Safety Reporting Practice Disclosure 403-1 Workplace representation in formal Disclosure 102-45 Entities included in the consolidated joint management - worker health financial statement and safety committees Disclosure 102-46 Defining report content and topic Disclosure 404 Management Approach: Training & Boundaries Education Disclosure 102-47 List of material topics Disclosure 404-1 Average hours of training per year Disclosure 102-48 Restatements of infomation per employee Disclosure 102-49 Changes in reporting Disclosure 404-2 Programmes for upgrading employee Disclosure 102-50 Reporting period skills and transition assistance Disclosure 102-51 Date of most recent report programme Disclosure 102-52 Reporting cycle Disclosure 405 Management Approach: Diversity Disclosure 102-53 Contact point for questions regarding Disclosure 406 Management Approach: Non the report Discrimination Disclosure 102-54 Claims of reporting in accordance Disclosure 413 Management Approach: Local with the GRI Standards Communities Disclosure 102-55 GRI content index Disclosure 413-1 Operations with local community engagement and development Topic-specific Standard: Economic programmes Disclosure 201 Management Approach Disclosure 415 Management Approach: Public Disclosure 201-1 Direct Economic value generated Policy and distributed Disclosure 419 Management Approach: Disclosure 202 Management Approach: Market Socioeconomic Compliance Presence