2020 ANNUAL REPORT T7 Global Berhad T7 Global No. 200401023809 (662315-U)] [Registration
T7 Global Berhad • Annual Report 2020 www.t7global.com.my : +603 2785 7777 : +603 2785 7778 : [email protected] : C-16-01, Level 16, KL Trillion 16, KL Trillion C-16-01, Level C Block Tower, Corporate Razak, 50400, 338, Jalan Tun Kuala Lumpur, Malaysia Tel Fax Email Website Making a Difference T7 Global T7 Global Berhad No. 200401023809 Registration (662315-U) Table of ContentS
Who We Are, Vision, Key Senior Additional Compliance Mission & Philosophy ...... 001 Management Profile ...... 017 Information...... 047 Corporate Information ...... 002 Sustainability Statement ...... 020 Financial Statements...... 052 Group Corporate Structure ...... 003 Audit and Risk Management Notice of Committee Report ...... 026 Annual General Meeting ...... 176 What We Do ...... 004 Statement on Risk Management Administrative Details for Five Years Financial Calendar and Internal Control ...... 028 the Annual General Meeting ...... 184 and Highlights ...... 006 Corporate Governance Analysis of Shareholdings ...... 189 Chairman’s Statement ...... 007 Overview Statement...... 032 List of Properties...... 193 Management Discussion and Statement on Directors’ Analysis’ Statement ...... 009 Form of Proxy Responsibility for Preparing the Directors’ Profile ...... 013 Financial Statements ...... 046 001 AR 2020
Who We Are
T7 Global Berhad (known as “T7 Global” or “The Group”) is a public listed company listed on the Main Market of Bursa Malaysia Securities Berhad since 2005. The company has its roots in the oil and gas business since 1990 and is well known as an integrated oil and gas solutions provider. The Group’s experience in complex projects and innovative solutions proved to be invaluable in the increasingly challenging landscape.
With decades of industry experience, this allows the Group to expand its footprint into the international markets and T7 Global has grown to become a trusted brand. The Group continues to expand business expertise and diversity into different portfolio such as aerospace and construction through strategic acquisitions and smart partnerships.
T7 Global focuses on making a difference in the industries we serve. As a leading solutions provider in Asia, we offer support to industry and organisations around the world.
Vision Mission & Philosophy
To be a trusted partner To support the different which make a difference industries we serve by on the global stage. becoming the preferred integrated solutions provider through continuous innovation, smart partnerships and value creation.
www.t7global.com.my 002 T7 Global Berhad Registration No. 200401023809 (662315-U)
Corporate Information
Board of Directors
1. Datuk Seri Dr. Nik Norzrul Thani 5. Admiral Tan Sri Dato’ Seri Panglima Ahmad Bin Nik Hassan Thani Kamarulzaman Bin Hj Ahmad Badaruddin (R)
2. Tan Sri Datuk Seri Tan Kean Soon, J.P. 6. CP (R) Dato’ Sri Wan Ahmad Najmuddin Bin Mohd 3. Tan Sam Eng 7. Tan Sri Dato’ Sri Koh Kin Lip, J.P. 4. Tan Kay Vin (Appointed on 2 September 2020)
8. Mohd Noor Bin Setapa (Resigned on 30 June 2020)
COMPANY SECRETARIES AUDITORS/REPORTING Al Rajhi Banking & Investment ACCOUNTANTS Corporation (Malaysia) Berhad Chua Siew Chuan GF, Mezzanine & Basement, East Block (MAICSA 0777689) Grant Thornton Malaysia PLT Wisma Golden Eagle Realty (SSM PC NO. 201908002648) (Audit Firm No.: 201906003682 & AF: 0737) 142-C Jalan Ampang, Tan Loo Ee Level 11, Sheraton Imperial Court 50450 Kuala Lumpur (MAICSA 7063694) Jalan Sultan Ismail Wilayah Persekutuan, Malaysia (SSM PC NO. 201908002686) 50250 Kuala Lumpur Wilayah Persekutuan, Malaysia Tel : 03-2692 4022 REGISTRAR REGISTERED OFFICE Fax : 03-2732 1010 Tricor Investor & Level 7, Menara Milenium Issuing House Services Sdn Bhd Jalan Damanlela Unit 32-01, Level 32, Tower A PRINCIPAL BANKERS Pusat Bandar Damansara Vertical Business Suite, Avenue 3 Damansara Heights Malayan Banking Berhad Bangsar South, No. 8, Jalan Kerinchi 50490 Kuala Lumpur No. 2 Wisma Prima Peninsular 59200 Kuala Lumpur Wilayah Persekutuan, Malaysia Jalan Setiawangsa II Wilayah Persekutuan, Malaysia Tel : 03-2084 9000 Taman Setiawangsa Tel : 03-2783 9299 Fax : 03-2094 9940 54200 Kuala Lumpur Fax : 03-2783 9222 Wilayah Persekutuan, Malaysia Email : [email protected] Website : www.tricorglobal.com HEAD/MANAGEMENT OFFICE United Overseas Bank (Malaysia) Berhad C-16-01, Level 16, KL Trillion Level 7, Menara UOB STOCK EXCHANGE LISTING Corporate Tower, 338 Jalan Tun Razak Jalan Raja Laut, 50350 Kuala Lumpur 50400 Kuala Lumpur Wilayah Persekutuan, Malaysia Main Market of Wilayah Persekutuan, Malaysia Bursa Malaysia Securities Berhad CIMB Bank Berhad Tel : 03-2785 7777 Petronas Twin Tower Fax : 03-2785 7778 405, Persiaran Petronas STOCK INFORMATION 50088 Kuala Lumpur Wilayah Persekutuan, Malaysia Stock Name : T7GLOBAL Stock Code : 7228 Bloomberg Code : T7G MK 003 AR 2020
Group Corporate Structure
100 % T7 SERVICES SDN BHD 199101016724 (227036-V)
100 % T7 NEWENERGY SDN BHD 100 199701006449 (421945-H) % TANJUNG OFFSHORE SERVICES SDN BHD 198301005074 (100697-T) 100 T7 Intelligent Resources Sdn Bhd % (formerly known as Fircroft Tanjung Sdn Bhd) 201401027200 (1103286-X)
Agensi Pekerjaan T7 Intelligent 100 Resources Sdn Bhd % (formerly known as Agensi Pekerjaan T7 Fircroft Sdn Bhd) 202001025154 (1381474-T)
100 % T7 SOLUTIONS SERVICES (S) PTE LTD (201012762N)
100 100 % T7 GASTEC SDN BHD % UNIVERSAL GAS GENERATORS SDN BHD 199401023619 (309300-K) 199601038686 (411039-P)
100 100 % T7 CSI INTEGRATED SDN BHD % T7 WENMAX SDN BHD 200601032298 (752057-X) 199901022900 (497800-T)
100 45 % T7 RESOURCES SDN BHD % T7 SOLUTIONS SERVICES (Thailand) Co., Ltd. 201301012317 (1042155-V) (0105551009806)
92.5 100 % T7 GENERATIONS SDN BHD % T7 SOLUTIONS SDN BHD 201801036414 (1298444-A) 200901006153 (849109-H)
100 100 % TCM INNOVATIONS SDN BHD % T7 SERVICES AUSTRALIA PTY LTD 201801044312 (1306344-U) (621094086)
100 % T7 MARINE SDN BHD 200601032072 (751831-T) 55 % T7 SUBSEA SDN BHD 201801028378 (1290404-K) 100 % T7 PROPERTY SDN BHD 201601027073 (1198012-T)
70 % T7 KEMUNCAK SDN BHD 201601031638 (1202579-U) 51 T7 CHINA CONSTRUCTION THIRD % ENGINEERING SDN BHD 201801001827 (1263840-D)
60 % T7 KILGOUR SDN BHD 100 % T7 AERO SDN BHD 201701016010 (1230174-D) 201601028474 (1199413-D)
100 % T7 VECTOR SDN BHD 201901037487 (1346817-P)
www.t7global.com.my 004 T7 Global Berhad Registration No. 200401023809 (662315-U)
What We Do
T7 Global Berhad (“T7 Global”) is an investment holding company with its subsidiaries diversified into 3 sectors as follows:-
Our main activities consist of maintenance, construction and modification (MCM), offshore splash zone maintenance, and brownfield commissioning. T7 Energy recognises the need for brownfield rejuvenation as many offshore and onshore assets are maturing in the region. T7 Energy believes an integrated approach to facility maintenance is crucial to ensure good production uptime.
Professional Manpower Supply ENERGY T7 Intelligent Resources Sdn Bhd (formerly ENERGY known as Fircroft Tanjung Sdn. Bhd.) T7 Global’s Energy Division (“T7 Energy”) provides a full suite of skilled recruitment • Engineering, Procurement, offers turnkey engineering, procurement, and manpower services to a variety of Construction, Installation & construction, installation and commissioning industries, upstream and downstream Commissioning (EPCIC) (EPCIC) solution, maintenance, construction oil & gas, ICT, renewable energy, rail and and modification services (MCM), oil & • Operation & Maintenance infrastructure. gas well services, subsea services and Since inception we have specialised • Professional Manpower Supply engineered process equipment across the in providing technical resources to our • Engineering & Integrated energy value chain. Solutions customers for projects or campaigns. T7 Energy has in-house capability to design Additionally, we possess a strong track • Subsea Services and engineer solutions which are applicable record in senior corporate hiring with a • Wells and Decommissioning to various industries. number of customers returning to use our • Special Purpose Market Detailed description for Energy Segment:- services time and again. In our business it’s the people that make the Engineering, Procurement, Construction, difference. Our focus is to identify, attract Installation and Commissioning (EPCIC) AEROSPACE & and onboard the very best people for our DEFENCE T7 Energy provides turnkey EPCIC and customers and to provide the highest level • Metal Surface Treatment project management solutions for complex of service. greenfield and brownfield projects. ■ Surface Treatment Engineering and Integrated Solutions Notably, T7 Energy Specialises in EPCIC of ■ Non-Destructive Testing T7 Energy offers a wide range of specialist Floating and Mobile Offshore Facility (MOPU (NDT) products solutions across the oil and gas, and FPSO). This plug and play solution oleo-chemical, marine, petrochemical and ■ Chemical Processing enable the commercial viability of hard to general industries. Exclusive partnerships ■ reach fields. T7 Energy has track record in Painting and Marking with reputable technology companies developing and operating mobile asset of ■ Sub-Assembly enable T7 Energy to leverage on the various functions such as early production knowledge and expertise to provide high- • Marine Services, Naval and system, production enhancement system value engineering integrated solutions to Security Technology via water injection and gas compression. the customers: - Operation and Maintenance • On-Site Gas Generation Package CONSTRUCTION In brownfield segment, T7 Energy offers (available on BOT and BOO basis) • Water Injection Module (available on • Engineering and Construction reliable asset management solutions to align with client’s operating philosophy. BOT and BOO basis) • Infrastructure Construction The objective is to help the client to achieve • Automation, ICSS, SIS and FGS • Industrial Facility Construction an optimal operating efficiency along with Solution reduction in operating downtime and to • Integrated Metering Solution maintain a safe environment. • Lifecyle Services 005 AR 2020
What We Do
(cont’d)
In addition, T7 Energy offers wide range of engineered products comprising:- • Gas Processing Technology • Rotating equipment (API compressors and pumps) • Field Instrument, Gauges, Valves and Fittings • Flow Measurement Equipment • Piping Valves (SBB, DBB and DIB) and Subsea Valves AEROSPACE & DEFENCE Construction • Marine Hoses, special piping and In line with the Malaysia Aerospace Industry T7 Global”s Construction Division (“T7 fitting (Inclusive of flexible composite Blueprint 2030, we have established T7 Construction”) offers various general pipe) Kilgour Sdn Bhd, a joint venture between construction and infrastructure works. We • Control and Automation Equipment T7 Global Berhad and Kilgour Aerospace are also registered under category G7 with Group (Kilgour) to pursue high value the Construction Industry Development Subsea Services manufacturing business in the aerospace Board (CIDB). The direction is to work Our subsea segment provides surface to sub industry. We aim to become the preferred on opportunities from government and surface underwater solutions that includes treatment house in Asia region providing commercial consumption projects without marine, diving and remotely operated world class services to the aerospace any limitation on size and value of contracts. vehicle (ROVs) with the range of services industry and other related industries such covering, inspection, maintenance and as semiconductor and medical. T7 Construction focuses on infrastructure repair (IMR), installation and construction and building works, which entail the support, transportation and installation We offer a wide range of special processes following:- to the aerospace, semiconductor and support and decommissioning support. • Design, construction and completion medical industries complying to the highest of railway, water infrastructure, Wells and Decommissioning standards and quality-related approvals roads, bridges and other from prime customers, the processes T7 Energy has the right assets and infrastructure construction; expertise to execute integrated workover include the following:- • Construction of housing such services for production enhancement and • Surface Treatment as high-rise residential, landed well abandonment. T7 Energy collaborates • Chemical Processing residential, hostel and etc; with well service companies to execute complex projects in a cost-effective • Painting and Part Marking • Construction specialise buildings manner, while ensuring the optimisation of • Non-Destructive Testing (NDT) such as high-rise buildings, hospital, well performance. multi-purpose complex, schools, T7 Aero and T7 Marine is an integrated institutions, university, colleges and We offer an Integrated Decommissioning engineering solutions provider primarily etc. Solution across the decommissioning value involved in the Defence Industry. It has chain from concept studies, engineering to strategic partnerships with OEMs to cater project execution. to the requirements of armed forces. The With two decades of industry experience, company offers a wide range of products T7 Energy has the capability and resources and solutions such as armoured vehicles, to decommission offshore structures up to air traffic control systems, electro optical 10,000 MT and to execute simultaneous equipment, combat management systems well intervention activities. and other naval and security technologies.
Special Purpose Market As a growing company, it is vital for T7 Energy to constantly looking for new challenge and opportunity in energy businesses. We are actively seeking opportunities in renewable energy initiative and oil and gas exploration and production ventures.
www.t7global.com.my 006 T7 Global Berhad Registration No. 200401023809 (662315-U)
Five Years Financial Calendar and Highlights
2016 2017 2018 2019 2020 Financial Year(s) ended 31 December RM’000 RM’000 RM’000 RM’000 RM’000
Revenue 83,048 204,495 209,789 233,488 189,407
Net Profit before Tax 5,187 9,808 7,654 8,148 7,495
Net Profit after Tax 5,063 5,662 10,562 12,508 3,079
Pre-tax Margin (%) 6.2% 4.8% 3.6% 3.5% 3.9%
Net Profit Margin (%) 6.1% 2.8% 5.0% 5.4% 1.6%
Basic Earnings Per Share (Sen) 1.14 0.49 1.69 1.68 0.81
REVENUE NET PROFIT BEFORE TAX (RM’000) (RM’000)
83,048 204,495 209,789 233,488 189,407 5,187 9,808 7,654 8,148 7,495
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
NET PROFIT AFTER TAX SHAREHOLDERS’ FUNDS (RM’000) (RM’000)
5,063 5,662 10,562 12,508 3,079 130,726 151,842 158,609 199,767 173,874
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 007 AR 2020
CHAIRMAN’S STATEMENT
Dear Valued Shareholders,
On behalf of the Board of Directors, I present to you the Annual Report and Audited Financial Statements of T7 Global Berhad (“T7 Global” or “the Group”) for the { financial year ended 31 December 2020 “FYE( 2020”).
www.t7global.com.my 008 T7 Global Berhad Registration No. 200401023809 (662315-U)
CHAIRMAN’S STATEMENT
(cont’d)
The Malaysian economy growth registered a negative growth The Group has strong commitment to our businesses, of 5.6% in 2020, the restrictions on mobility, especially on inter- improving our operating efficiencies across our portfolio, turning district and inter-state travel, weighed on economic activity the Company around and delivering steady growth. We took during the year. Nevertheless, the continued improvement in appropriate and deliberate actions to drive performance. With external demand provided support to growth. Consequently, a fair balance of strength and resilience, prudence and sound except for manufacturing, all economic sectors continued to enterprise risk management, we continue to navigate our way record negative growth. through challenges and intensify progression of the Group’s various businesses. It is the staunch faith and commitment In the first half of 2020, responses to the Coronavirus disease that keep T7 Global going and progressing to where it is today. (“COVID”)-19 pandemic led to steep declines in global petroleum demand and to volatile crude oil markets. The second half of the year was characterised by relatively stable Corporate Social Responsibility prices as demand began to recover. As petroleum demand fell and crude oil inventories increased, crude oil futures traded T7 Global recognises that contributions made through our at negative prices in April 2020, the first time the price for the corporate social responsibility initiatives have significant oil futures contract fell to less than zero since trading began in impacts on the society. The Group strives to sustain a balanced 1983. However, demand began to return after April 2020 with approach in fulfilling our key objectives and expectations. For crude oil prices stabilising, closing above USD$40 at the end the year 2020, the Group committed noteworthy time and of 2020 as markets responded to news of several COVID-19 effort in corporate social responsibility programmes in order vaccine rollouts and the limitation on oil production from OPEC to offer meaningful contributions to the community around us. and its partners. As a responsible corporate citizen, we firmly believe in giving The National energy company Petroliam Nasional Berhad back to the society such as developing the local arts and (“Petronas”) announced that industry remains challenging culture scene, nurturing our next generation, and supporting due to the COVID-19 pandemic and prevailing uncertainties local communities. over OPEC+ production cuts in 2021. The effects of the pandemic are difficult to estimate, while their impact cannot be overstated as the industry continues to face the dual impact Appreciation of demand destruction combined with an oil price rout due to the supply glut. Therefore, Petronas believes the industry On behalf of the Board, I would like to extend my deepest is now contending with a Great Reset. This is an undeniable appreciation to the Board of Directors, our management, and unavoidable imperative, requiring immediate reforms along staff, and business associates for their staunch faith and the whole value chain. Collectively, as an industry, we must commitment that have kept T7 Global going and progressing step up from doing business as usual and compel innovation to where it is today. at all levels - implementing new ways of working with focused execution at pace. I would also like to express my appreciation to our valued shareholders for their unwavering support. Without a doubt, Despite the above, we are proud that we have secured contract thank you to my Board members, for your constant support extensions from Petronas Carigali Sdn Bhd for the provision and utmost service to the Board throughout these challenging of splash zone structural repair and maintenance and mini- periods. We will continue to explore new opportunities remotely operated vehicle (ROV) as well as the execution of the and enhance our existing businesses to deliver greater contract for the Bayan Mobile Offshore Product Unit project. shareholders’ value in the years ahead.
For the financial year 2020, we are pleased to have recorded a revenue of approximately RM189 million and a profit after tax of approximately RM3 million, supported by continuing Yours sincerely, progress on our oil and gas contracts and meeting targets for Datuk Seri Dr. Nik Norzrul Thani the Energy Division. Bin Nik Hassan Thani Acting Executive Chairman 009 AR 2020
MANAGEMENT DISCUSSION AND ANALYSIS’ STATEMENT
Economic Review
The Malaysian economy growth registered a negative growth of 5.6% in 2020, the restrictions on mobility, especially on inter-district and inter-state travel, weighed on economic activity during the year. Nevertheless, the continued improvement in external demand provided support to growth. Consequently, except for manufacturing, all economic sectors continued to record negative growth.
Despite the above, Petroliam Nasional Berhad (“Petronas”) is expecting to spend between RM40 billion and RM45 billion in annual capital expenditure over the next 5 years, based on its projection of oil prices and outlook on the industry, with a planned 55% of the annual capex allocation on domestic investments, which should augur well for the domestic oil and gas industry.
Financial Performance
We shall remain resilient The Group delivered a modest performance for the financial year ended (“FYE”) 31 December 2020. through these challenging Revenue decreased by approximately 18.9% from RM233.5 million in FYE 2019 to RM189.4 million in FYE 2020, while profit after tax decreased by times and keeping our minds approximately 75% from RM12.5 million to RM3.0 million. The decrease was mainly due to the delay focused on our objectives in project executions caused by the COVID-19 pandemic which had affected companies and individuals worldwide. Nonetheless, the Group and the path to recovery. had managed to remain profitable due to cost rationalisation exercises conducted during the year. The management is confident in delivering a better financial performance for the year 2021 due to its { resilient orderbook. To our valued shareholders, The Group’s Engineered Packages Division, which T7 Global is a Malaysia-based leading consist of gas generation packages and offshore equipment packages, registered revenue of international integrated oil and gas solutions approximately RM8.9 million in FYE 2020 as compared provider with strong and growing presence to RM14.6 million in FYE 2019, representing an over Asia serving diverse range of customers decrease of approximately 39%. On the other hand, that include multinational oil majors, national oil the Group’s Products and Services Division, registered a decrease in revenue of approximately 16.1%, from companies as well as multinational oil corporation RM172.3 million in FYE 2019 to RM144.6 million in throughout the world. Over the years, T7 Global FYE 2020. has grown both organically and through strategic For the FYE 2020, T7 Global reported a healthy acquisitions, alliances with local and international balance sheet with total assets of approximately renowned technology partners. RM481.7 million, shareholders’ equity at approximately RM173.8 million and cash reserves of approximately RM62.5 million.
www.t7global.com.my 010 T7 Global Berhad Registration No. 200401023809 (662315-U)
MANAGEMENT DISCUSSION AND ANALYSIS’ STATEMENT
(cont’d)
Business Milestones
Tanjung Offshore Services Sdn Bhd (“TOS”), a wholly- T7 Wenmax Sdn Bhd (“T7 Wenmax”), a wholly-owned owned subsidiary of T7 Global, commenced business in the subsidiary of T7 Global, is principally engaged in the business 1990 as an offshore oil and gas service provider, offering of supplying industrial equipment, machineries, spare solutions for production facilities, offshore supply vessels parts and lubricants oil. T7 Wenmax offers a wide range of and operation and maintenance services. With 30 years of specialist products solutions across the oil and gas, oleo- experience, TOS has served a diverse range of customers, chemical, marine, petrochemical and general industries ie. Gas including national oil companies, multinational corporations and Processing Technology, Rotating equipment (API compressors engineering procurement and constructions firms. and pumps), Field Instrument, Gauges, Valves and Fittings, Flow Measurement Equipment, Piping Valves (SBB, DBB & During the FYE 31 December 2020, TOS has announced DIB) and Subsea Valves, Marine Hoses, special piping and several significant contracts awarded by:- fitting (Inclusive of flexible composite pipe), and Control and Automation Equipment. 1) Repsol Oil & Gas Malaysia Limited, for the provision of maintenance, construction and modification services for T7 Marine Sdn Bhd (“T7 Marine”), a wholly-owned subsidiary PM3-CAA and PM-305. of T7 Global is primarily involved in supporting the business localisation and providing marine and naval technology services. 2) Petronas Carigali Sdn Bhd, for the provision of leasing, operating and maintenance of mobile offshore production T7 Subsea Sdn Bhd (“T7 Subsea”), a subsidiary of unit (MOPU) for Bayan Redevelopment Project Gas T7 Global is primarily involved in surface to sub surface Phase 2. underwater solutions that includes marine, diving and remotely operated vehicle (ROVs) with the range of services covering, 3) Carigali Hess Operating Company Sdn Bhd, for the inspection, maintenance and repair (IMR), installation and provision of onshore fabrication, offshore hook-up and construction support, transportation and installation support commissioning for Infill Flowlines. and decommissioning support.
4) East Coast Economic Region Development Council, for T7 Kilgour Sdn Bhd (“T7 Kilgour”) is a subsidiary of T7 the construction and completion of Endau-Mersing Fish Global, a joint strategic partnership between T7 Global and Processing Park in Endau, Johor Darul Takzim. Kilgour Aerospace Group (UK). T7 Kilgour is a vertically integrated aerospace company with over 50 years of in-depth T7 Intelligent Resources Sdn Bhd (formerly known as technical know-how from the global aerospace industry in Fircroft Tanjung Sdn Bhd) (“T7IR”), a wholly-owned subsidiary manufacturing complex components and assemblies. The of TOS, provides full suite of skilled manpower services to Group’s vision is to become a key player in the aerospace a variety of industries across all stages of a project, from industry, combining both innovative technologies coupled with construction and setup, to operations and maintenance. our extensive experience and knowledge in the oil and gas industry to continuously provide advanced, reliable, safe and T7 Gastec Sdn Bhd (“T7 Gastec”), a wholly-owned efficient solutions to our clients. subsidiary of T7 Global, is principally involved in designing, manufacturing and marketing of industrial gas packages and T7 Kilgour provides a wide range of processes for both the plant for on-site production for various industries for nearly 20 export and domestic markets. T7 Kilgour will provide various years. T7 Gastec has operations in the Asia region and offers metal treatment services to clients mainly for the aerospace long term “build, operate and transfer” and “build, operate and industry. Nevertheless, the plant is also able to serve other own” contracts for both industrial and oil and gas industries. industries such as oil and gas, automotive, biomedical and T7 Gastec also provides high valued engineering integrated many more. solution for Automation, ICSS, SIS and FGS Solution, Integrated Metering Solution and Lifecyle Services. T7 Kemuncak Sdn Bhd (“T7 Kemuncak”), is a 70% owned subsidiary of T7 Global, is principally involved in infrastructure and construction projects in Malaysia. 011 AR 2020
MANAGEMENT DISCUSSION AND ANALYSIS’ STATEMENT
(cont’d)
Adapting to New Norms and Remain Agile Risk Management and Internal Control during Market Volatility The overall risk management objective of T7 Global is to identify Over the last 5 years, the Board of Directors and management potential problems before they occur so that risk handling team have strategised the Group’s business plans to align the activities may be planned and invoked as needed across our corporate structure and enhance the operation’s efficiency. business divisions. The Group seeks to minimise potential We have taken initiatives to refine our internal operations to adverse effects on its financial performance through proper deliver long term and sustainable growth. In line with these risk management planning. Risk management is carried out initiatives we have our vision and business development to through regular risk review analysis, internal control systems achieve our goals. and adherence to the Group’s risk management policies. The Board of Directors of T7 Global regularly reviews these risks 1. Cost Reduction Program and approves the appropriate control environment frameworks.
The Group has initiated a cost reduction exercise with Dependence on skilled professionals/engineers is one of the the aim to transform the Group into a leaner organisation; key risk factors. As an oil and gas services group in providing we have strictly reviewed our employee panel and maintenance services to customers in oil and gas, we require their remuneration package. We have also reviewed all certified, skilled, and experienced technical professionals to operating, administrative and management activities and execute the projects and contracts awarded to our Group. their related cost across the Group. This is to ensure that we are able to trim our operating costs. By implementing Due to supply and demand conditions and competition among these strategies, we should be more competitive and other companies, the number of personnel with the relevant be able to pass these benefits to our customers and qualifications and experience in the industry may be limited. Our ultimately improve earnings for the Group. cost of operations may be higher if we are required to compete for such skilled and experience technical professionals. 2. Risk Management Team Nonetheless, in line with our continuous requirements for skilled-based human resources, we also provide technical The Group has formed a risk management team training as part of our other products and services segment. comprising independent Directors and top management personnel. Proactively addressing the challenges and Legal risk is the risk of financial loss or damage to the Group’s opportunities of our business will ensure that every reputation arising from failure to comply with contractual terms aspect of our business and/or investment opportunities or the Group’s interest is not properly protected. The Group’s brought up by any stakeholders of the Group will be Legal Department has assessed and identified the key terms carefully assessed and assuring proper due diligences and conditions of the existing major contracts for ongoing are carried out professionally. monitoring and management of the contracts by the respective business units. The Group’s most immediate concern was the welfare of the employees affected by the restructuring The safety of people and assets is of utmost priority in the exercise which we will handle with utmost good faith oil and gas industry and any adverse incident could result in and professionally. Nevertheless, the objective of the significant financial loss and damage to the Group. T7 Global restructuring exercise is to ensure that each division will has established comprehensive safety policies and processes be able to operate with better efficiency, effectiveness that clearly set out the safety measures which must be strictly and be profitable. adhered to by our employees and contractors. Periodic audits of our health and safety procedures and practices, Together with the ongoing initiatives and diversification drills, continuous health and safety meetings and reviews are of our business model, we are confident that this conducted internally and externally. restructuring and cost reduction plan will elevate T7 Global to a more competitive position as well as We are mindful of risks that are inherent in the business creating a sustainable long-term growth and value to environment. Hence, our focus is to mitigate these risk factors our shareholders. through best practices and good corporate governance.
www.t7global.com.my 012 T7 Global Berhad Registration No. 200401023809 (662315-U)
MANAGEMENT DISCUSSION AND ANALYSIS’ STATEMENT
(cont’d)
Dividend
During the FYE 2020, there were no dividend declared by the We have commenced our niche aerospace business in 2020, Company. providing surface metal treatment services to serve the local and regional markets. Although the industry was hit hard by the COVID-19 pandemic in FYE 2020, the management foresees Business Outlook and Prospects recovery in 2021 and beyond due to vaccine rollout and the aerospace industry is expected to recover moving forward. In While the outlook for the industry shows signs of recovery addition, the management is currently pursuing non-aerospace in 2021, the Group is constantly mindful of all events such customers such as semiconductor and healthcare customers, as micro and macro-economic factors which may impact us which is expected to augur well for the Group. in any way and we will continue to strive to secure valuable opportunities on win-win terms for both the Group and our Whilst aware of both challenges and opportunities going clients through entering into long term and strong charter forward, we welcome 2021 with a clear business strategy, contracts with reputable and financially sound clients. staying committed towards achieving our business objectives and delivering greater value to our shareholders. We continue For T7 Global, the Energy Division will remain as the Group’s to align our business strategies with our sustainability plans to core business. The Group continues to bid for new contracts continue to grow the business for the long term. and will be looking for industry opportunities where we and our strategic alliances possess the relevant expertise and experience to venture into. We will concentrate on our existing APPRECIATION technical expertise and core businesses to secure on more maintenance and management contracts. As we conclude the year 2020, I would like to convey my heartfelt appreciation, to the management team and to my As at 31 December 2020, T7 Global’s order book stood at fellow board members for your utmost dedication to the Group approximately RM1.7 billion, which provides a visibility of 10 through these difficult times. I sincerely express appreciation years to the Group. T7 Global will continuously tender for more to all our employees for the dedication and commitment to projects, both locally and overseas. We are optimistic that the Group, all of you have played a pivotal role in the Group’s we will be able to replenish our order book and maintain the continuous growth. Group’s growth momentum moving into 2021 and thereafter. Barring any unforeseen circumstances, the Group expects to On behalf of the Board, I would also like to express our grow its profitability for the forthcoming financial year 2021. gratitude to our stakeholders, clients, partners and customers The Group will focus on, amongst others, the completion for your continuous support and loyalty to our group. To of the mobile offshore production unit (MOPU) for Bayan our shareholders who have supported us, they have further Redevelopment Project Gas Phase 2, which is expected to motivated us to strive for another year of positive performance be operational in the second half of FYE 2022. to create sustainable and growing value for all our stakeholders.
Yours sincerely, Tan Sri Datuk Seri Tan Kean Soon, J.P. Deputy Executive Chairman 013 AR 2020
Directors’ Profile
Datuk Seri Dr. Nik Norzrul Thani Bin Nik Hassan Thani (“Datuk Seri Dr. Nik”) holds a Ph.D. in Law from the School of Oriental and African Studies, University of London and a Masters in Law degree from Queen Mary College, University of London. He read law at the University of Buckingham, United Kingdom. Datuk Seri Dr. Nik also holds a Post-Graduate Diploma in Syariah Law and Practice (with Distinction) from the International Islamic University of Malaysia. He is a Barrister of Lincoln’s Inn and an Advocate and Solicitor of the High Court of Malaya. He was called to the Bar of England and Wales in 1985 and to the Malaysian Bar in 1986. He was a Visiting Fulbright Scholar, Harvard Law School from 1996 to 1997, Chevening Visiting Fellow at the Oxford Centre of Islamic Studies, Oxford University and was formerly the Acting Dean/Deputy Dean of the Faculty of Laws, International Islamic University Malaysia. He is also a Fellow of the Financial Services Institute Datuk Seri Dr. Nik Norzrul Thani of Australasia (FINSIA) and a member of Chartered Institute of Marketing Bin Nik Hassan Thani (United Kingdom) and has also been admitted as a Practising Member of the Chartered Institute of Islamic Finance Professionals (CIIF). Nationality Malaysian Age 61 Datuk Seri Dr. Nik serves in the following prominent associations/bodies/ corporations: Gender Male Position Acting Executive Chairman 1. Chairman of the Capital Market Compensation Fund Corporation (a Member of Share Issuance corporation set up by the Securities Commission of Malaysia) Scheme Committee 2. Chairman of IIUM Holdings Sdn Bhd (a wholly owned subsidiary of International Islamic University Malaysia) 3. Chairman of Malaysia-Singapore Business Council (MSBC) (appointed by the Minister of International Trade & Industry) 4. Independent Non-Executive Director of Amanah Saham Nasional Berhad (ASNB) 5. Independent Non-Executive Director of Malaysian Rating Corporation Berhad 6. Independent Non-Executive Director of Cagamas Holdings Berhad 7. Independent Non-Executive Director of Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad 8. Council Member of National Unity Advisory Council (appointed by the Prime Minister of Malaysia)
Datuk Seri Dr. Nik is the Chairman and Senior Partner of Zaid Ibrahim & Co. (ZICO), the largest law firm in Malaysia and a member of ZICO Law, the premier ASEAN law network with offices in Bangkok, Brunei, Hanoi, Ho Chi Minh City, Vientiane, Melbourne, Phnom Penh, Singapore, Manila and Yangon as well as an associate office in Jakarta. Prior to joining ZICO, he was practising with the international law firm, Baker & McKenzie. He was previously working with an audit firm and a bank in Kuala Lumpur.
Datuk Seri Dr. Nik was appointed to the Board of T7 Global Berhad on 23 March 2015.
www.t7global.com.my 014 T7 Global Berhad Registration No. 200401023809 (662315-U)
Directors’ Profile
(cont’d)
Tan Sri Datuk Seri Tan Kean Soon, J.P. (“Tan Sri Tan”) has more than 30 years of experience in leading various oil and gas upstream and downstream companies with a track record of outstanding performance in this highly competitive industry. Tan Sri Tan is the Chairman and Chief Executive Officer of CP Energy & Services Sdn Bhd, a corporation founded by Tan Sri Tan in 1992. Under Tan Sri Tan’s helm, the company grows steadily and has rapidly expanded its presence in the ASEAN region.
Tan Sri Tan also serves in the following prominent associations/bodies/ corporations:- 1. Life Honorary Advisor & Treasurer of Federation of Chinese Associations Malaysia (Huazong) Tan Sri Datuk Seri Tan 2. Advisor to the Minister of Human Resources Kean Soon, J.P. 3. Member of National Council for Occupational Safety & Health (NCOSH) / Majlis Negara bagi Keselamatan dan Kesihatan Pekerjaan (MNKKP)
Nationality Malaysian 4. Director of Malaysia-China Business Council (MCBC) Age 57 – Chairman of MCBC Sub-Committee on “Construction & Gender Male Development” Position Executive Deputy Chairman 5. Member of Malaysia Singapore Business Council (MSBC) Member of Share Issuance 6. Ordinary Life Member of Malaysia Crime Prevention Foundation (MCPF) Scheme Committee 7. Member of The Malaysian Oil & Gas Services Council (MOGSC) and Malaysian Petroleum Club
Tan Sri Tan was appointed to the Board of Directors of T7 Global Berhad on 23 June 2014 and he is the father of Tan Kay Vin, an Executive Director of T7 Global Berhad.
Tan Sam Eng is a Chartered Accountant and a Chartered Secretary. She is a member of the Malaysian Institute of Accountants (MIA), a Fellow Member of the Association of Chartered Certified Accountants (ACCA), and also a Member of the Chartered Tax Institute of Malaysia (CTIM). She has more than 30 years of professional experience which involves in all aspects of financial practice such as auditing, taxation, corporate finance and advisory works. Her auditing experience covers practically the whole spectrum of Malaysian business environment including insurance, property development, engineering, communications, transportation, plantations, manufacturing and trading.
She was appointed to the Board of T7 Global Berhad on 23 March 2015.
Tan Sam Eng
Nationality Malaysian Age 69 Gender Female Position Independent Non-Executive Director Chairperson of Audit and Risk Management Committee Member of Remuneration Committee 015 AR 2020
Directors’ Profile
(cont’d)
Tan Kay Vin (“Kay Vin”) is currently heading the Aerospace and Defence division and the corporate affairs department of T7 Global Berhad Group. He joined T7 Global Berhad in 2015 as Manager of Group Corporate Finance and subsequently heading the Corporate Finance Department in 2017.
Kay Vin holds a Bachelor of Commerce, majors in actuarial science and finance from University of New South Wales, Sydney. Prior joining T7 Global Berhad, Kay Vin has various working experiences with financial institutions and insurance companies including Maybank Investment Berhad and Malayan Banking Berhad, Mitsui Sumitomo Insurance Group and PricewaterhouseCoopers Malaysia.
He is currently a Director of Malaysian Aerospace Industry Association. Tan Kay Vin Kay Vin was appointed to the Board of Directors of T7 Global Berhad on 5 Nationality Malaysian March 2018. He is the son of Tan Sri Datuk Seri Tan Kean Soon, J.P., the Age 30 Executive Deputy Chairman and the major shareholder of T7 Global Berhad. Gender Male Position Executive Director
Admiral Tan Sri Dato’ Seri Panglima Ahmad Kamarulzaman Bin Hj Ahmad Badaruddin (R) is an alumini of the Harvard Business School having attended the Advanced Management Program (AMP) in Boston. He obtained his Master in Business Administration from the University of Strathclyde Business School, Scotland and Master of Arts in International Relations from the National University of Malaysia. He also completed the Executive Business Management Program at the Kenan-Flagler Business School, University of North Carolina. He is also a Distinguished Graduate in Political Warfare of the Fu Hshing Kang College, Republic of China as well as the US Naval War College, Newport, Rhode Island, United States of America. He has served the King and Country for 42 years and has held numerous positions in the Malaysian Armed Forces. He achieved the peak in his career when he assumed command of the Royal Malaysian Navy as Admiral Tan Sri Dato’ Seri Chief on 18 November 2015. He is also a Director of OCR Group Berhad, Panglima Ahmad Kamarulzaman TRC Synergy Berhad and few other private companies.
Bin Hj Ahmad Badaruddin (R) He was appointed to the Board of Directors of T7 Global Berhad on 15 April 2019. Nationality Malaysian Age 62 Gender Male Position Independent Non-Executive Director Chairman of Nomination Committee Member of Audit and Risk Management Committee
www.t7global.com.my 016 T7 Global Berhad Registration No. 200401023809 (662315-U)
Directors’ Profile
(cont’d)
CP (R) Dato’ Sri Wan Ahmad Najmuddin Bin Mohd was the Aide-De- Camp to his Royal Highness Yang Di Pertuan Agong for the period from 18 December 2006 to 1 January 2009. He also acted as the Senior Assistant Commissioner Policy and Legislation at Bukit Aman Inspector-General of Police Secretariat Office from 2 January 2009 to 14 September 2009. On 15 September 2009, he became the Special Officer to Minister of Home Affairs. He then acted as the Secretary of Royal Malaysia Police, Bukit Aman from 20 May 2013 to 30 June 2013. He was the Deputy Director of the Crime Prevention and Community Safety Department at Bukit Aman from 2013 to 2015. On 1 December 2015, he was appointed as the Johor Chief of Police at IPK Johor. He retired from Royal Malaysia Police in March 2019 with last position held as Director of Criminal Investigation Department.
CP (R) Dato’ Sri Wan Ahmad He is currently the Managing Partner at Messrs. Wan & Ting and serves as Najmuddin Bin Mohd an Advocate and Solicitor of the High Court of Malaya. He has a Bachelor of Law LLB (Hons) from University Islam Antarabangsa and Master of Social Nationality Malaysian Science (Police Studies) from Universiti Kebangsaan Malaysia. Age 63 Gender Male He is also currently an Independent Non-Executive Director of Talent Position Independent Non-Executive Director Corporation Malaysia Berhad. Member of Audit and Risk Management Committee He was appointed to the Board of Directors of T7 Global Berhad on 28 Chairman of Remuneration Committee June 2019. Member of Nomination Committee
Tan Sri Dato’ Sri Koh Kin Lip, J.P. (“Tan Sri Richard Koh”) graduated from Plymouth Polytechnic (now known as Plymouth University), United Kingdom with a Higher National Diploma in Business Studies and a Council’s Diploma in Management Studies. He began his career in Standard Chartered Bank, Sandakan in 1977 as a trainee assistant. In 1978, he joined his family business and was principally involved in administrative and financial matters. In 1985, he assumed the role as Chief Executive Officer of his family business. In 1987, he was pivotal and instrumental in the formation of Rickoh Holdings Sdn. Bhd., the flagship company of the family businesses. Rickoh Holdings Sdn Bhd and group of companies has since continued to grow via diversifying their business activities which comprise, among others, properties investments/ holdings, properties letting, property development, securities investments, oil palm plantations, sea and land transportation for crude palm oil and palm kernel, information technology, hotel Tan Sri Dato’ Sri Koh business, car park operator, insurance agency, trading in golf equipment and Kin Lip, J.P. accessories, river sand mining, bricks manufacturing, and quarry operations. Tan Sri Richard Koh is a Non-Independent Non-Executive Director of NPC Nationality Malaysian Resources Berhad. He is a Senior Independent Non-Executive Director of Age 72 Cocoaland Holdings Berhad and IOI Properties Group Berhad. Gender Male He was appointed to the Board of Directors of T7 Global Berhad on 2 Position Independent Non-Executive Director September 2020.
Attendance record of Board of Directors’ Meetings Conflict of interest The attendance records of the Board at the Board of Directors’ Meetings can be None of the Directors has any conflict of interest with the Group. found in the Corporate Governance Overview Statement in this Annual Report. Conviction of Offence Family relationship with any Director and/or major shareholder None of the Directors has any conviction for offences within the Save and except for the following, none of the Directors has any family relationship past five (5) years, other than traffic offences, if any, nor any public with any Director and/or major shareholder of the Company: sanction or penalty imposed by the relevant regulatory bodies during • Tan Kay Vin is the son of Tan Sri Datuk Seri Tan Kean Soon J.P., the the financial year. Executive Deputy Chairman and the major shareholder of T7 Global Berhad. 017 AR 2020
Key Senior Management Profile
Please refer to the profile ofDatuk Seri Dr. Nik Norzrul Thani Bin Nik Hassan Thani (Acting Executive Chairman), Tan Sri Datuk Seri Tan Kean Soon, J.P. (Executive Deputy Chairman) and Tan Kay Vin (Executive Director) for their profile on pages 13 to 15, respectively.
Tan Kay Zhuin Tan Kay Zhuin has been the Group Chief Operating Officer of T7 Global Berhad since 2018. He overlooks the Group’s operations and manages all Position Group Chief Operating Officer 3 divisions. He first joined T7 Global’s subsidiary, Tanjung Offshore Services Nationality Malaysian Sdn Bhd in 2016, heading the offshore construction and maintenance Age 32 segment. Gender Male He started his career as a production engineer with KrisEnergy Limited in Singapore in 2014. He later joined Toyo Engineering Corporation in Japan as a petroleum engineer.
He holds a Bachelor’s degree in Petroleum Engineering (Hons) from University of New South Wales, Sydney.
He is the son of Tan Sri Datuk Sri Tan Kean Soon, J.P., the Executive Deputy Chairman and major shareholder of the company and brother of Tan Kay Vin, the Executive Director of the company.
Ong Fee Peng Ong Fee Peng, an accountant by profession, was appointed as Group Chief Financial Officer of T7 Global Berhad in 2015. He is primarily responsible for Position Group Chief Financial Officer the Group’s overall financial and accounting functions. Nationality Malaysian Age 55 He is a registered Chartered Accountant with the Malaysian Institute of Gender Male Accountant and has more than 26 years of working experiences across the full spectrum of the areas of Investment bank, accounting, audit, manufacturing, construction, stock broking, building management system and corporate finance.
Azman Yakim Azman Yakim is the Chief Executive Officer of Tanjung Offshore Services and is currently leading the Group’s overall oil and gas business, servicing for Position Chief Executive Officer all sectors in upstream, midstream and downstream. Tanjung Offshore Services Sdn Bhd (“Tanjung Offshore Services”) Previously, he was the Senior Vice President, Oil & Gas Business for Siemens Nationality Malaysian Malaysia and Global Corporate Account Manager for Siemens AG. He holds Age 43 a Bachelor’s Degree in CAD/CAM Engineering from the University of Malaya Gender Male and Masters Degree in Business Administration (MBA) minor in Finance from the University of Derby. He has 20 years of professional experience in the Energy, Oil & Gas and Utilities Sector, where he has worked with reputable names in the industry such as General Electric (GE), Dresser-Rand (D-R) and Emerson prior to working in Siemens AG.
www.t7global.com.my 018 T7 Global Berhad Registration No. 200401023809 (662315-U)
Key Senior Management Profile
(cont’d)
Muhamad Azarudin Bin Muhamad Azarudin Bin Abdullah (“Azarudin”) is the Director of Tanjung Offshore Services and currently heads the Group’s oil and gas operations Abdullah and maintenance segment. He was appointed as the Director of Tanjung Offshore Services on 25 April 2018. Position Director Tanjung Offshore Services Nationality Malaysian He joined the Group in 2001 and has held several management roles across his 19 years with the Group. Age 41 Gender Male He has more than 19 years of experience in the field of project co-ordination and management of projects relating to oil and gas industry. His experience includes inter-alia in operations and maintenance, gas compression package, power utilities, offshore supply vessel, field development, upstream drilling and process equipment facilities.
He holds a Diploma in Electrical Engineering from Universiti Teknologi Malayisa.
Noor Haniza Binti Zainuddin Noor Haniza Binti Zainuddin is currently the Senior Manager, Group QHSE. She joined Tanjung Offshore Services Sdn Bhd in 2007 as a Manager Position Senior Manager, Group of QHSE and Licensing. Quality, Health, Safety and Environment (“QHSE”) She has more than 15 years of experience in health, safety and environment Nationality Malaysian and licensing. She is a registered member of Certified Environmental Age 41 Professional in Scheduled Waste Management (CEPSWAM), QMS Lead Gender Female Auditor and Safety & Health Officer. She is also a member of Board of Engineers Malaysia.
Datuk Tan Kean Seng Datuk Tan Kean Seng is currently the Director of T7 Gastec. He joined T7 Global Berhad group in 2015, heading the products and engineering Position Director segment of the Energy Division. T7 Gastec Sdn Bhd (“T7 Gastec”) Nationality Malaysian He has more than 20 years of experience in operations, products and Age 50 business development in the oil and gas industry. He holds a Bachelor of Gender Male Science in Business Administration from Central Missouri State University, United States of America.
He is the brother of Tan Sri Datuk Seri Tan Kean Soon, J.P., the Executive Deputy Chairman and major shareholder of the Company.
Michael Aziz Eu Peng Weng Michael Aziz Eu Peng Weng is currently the Director of T7 Wenmax. He was appointed as the Director of T7 Wenmax in 2004. Position Director T7 Wenmax Sdn Bhd (“T7 Wenmax”) He has more than 20 years of experience in project management, business Nationality Malaysian development and products solutions in oil and gas industry. He holds a Age 48 Cambridge GCE Advanced Level (A-Level) from Sunway College, Malaysia. Gender Male 019 AR 2020
Key Senior Management Profile
(cont’d)
Ku Thien Shung Ku Thien Shung is currently the General Manager of T7 Gastec. He joined T7 Global Berhad Group in 2019, heading the operation and business of T7 Position General Manager Gastec. T7 Gastec Nationality Malaysian He has more than 15 years of experience in project and management, Age 43 project planning, engineering design and cost control in the oil and gas Gender Male industry. He holds a Bachelor Degree (Hons) Electronic from Multimedia University, Malaysia.
Trevor Alan Peacock Trevor Alan Peacock has been the General Manager of T7 Kilgour since he joined in January 2019. He oversees the overall operations of T7 Kilgour. Position General Manager T7 Kilgour Sdn Bhd (“T7 Kilgour”) He has more than 30 years of experience in project management, design, Nationality British engineering, production and supply-chain in the aerospace industry. He started Age 57 his career with British Aerospace Military Aircraft Division (BAM) in 1980 to Gender Male 2009 which he has held several management roles during his working tenure with BAM. Subsequently he joined BAE Systems Aero Structures Group, GKN Aerospace Group and Strata Manufacturing PJSC in Abu Dhabi and UMW Aerospace, Malaysia prior to T7 Kilgour Sdn Bhd.
He holds a Post Graduate Diploma in Management from University of Central Lancashire and Bachelor of Arts in Production Engineering from Open University Milton Keynes.
Syed Mohammad Mazhar Syed Mohammad Mazhar Bin Syed Mohd Bakar is currently the General Manager of T7 Subsea since he joined in January 2019. He oversees the Bin Syed Mohd Bakar operations of T7 Subsea.
Position General Manager T7 Subsea Sdn Bhd (“T7 Subsea”) Prior joining T7 Subsea, he has more than 20 years of experience Nationality Malaysian project management and business development in oil and gas and telecommunication industry within the South East Asian region. He has Age 47 held several management roles in Malsat Sdn Bhd, TL Geohydrographics Gender Male Sdn Bhd, Orogenic Geoexpro Sdn Bhd, O&G Geo Services Sdn Bhd and Geoterra Sdn Bhd.
He holds a Diploma in Geomatics/Land Surveying and Certificate in Geomatics/Land Surveying from Polytechnic Ungku Omar.
NOTES: Save as disclosed above, none of the members of the key senior management team has: 1. any directorship in public companies and listed issuers; 2. any family relationship with any directors and/or major shareholders of the Company; 3. any conflict of interest with the Company; 4. any conviction for offences (other than traffic offences) within the past five (5) years; and 5. any public sanction or penalty imposed by the relevant regulatory bodies during the financial year.
www.t7global.com.my 020 T7 Global Berhad Registration No. 200401023809 (662315-U)
SUSTAINABILITY STATEMENT
T7 Global Berhad’s (“T7 Global”) vision is to be a trusted partner that make a difference on the global stage. The Group recognises its corporate social responsibility to the society and the importance of sustainable growth. We are mindful of the need to develop our business in a sustainable and responsible manner which allows us to reach new level of recognition.
This sustainability statement (“the Statement”) aims to provide our stakeholders with a clear picture of major material sustainability matters and our management approaches. The Statement is made in accordance with Bursa Malaysia Securities Berhad’s Main Market Listing Requirements and Sustainability Reporting Guide and covers the period from 1 January 2020 to 31 December 2020 (“FY2020”).
SUSTAINABILITY GOVERNANCE
For best practices to sustainability governance, the Board of Directors (“the Board”) is accountable for sustainability strategy and has empowered senior management for sustainability performance management.
SUSTAINABILITY DEVELOPMENT PILLAR
• Board Charter;
• Audit and Risk Management Committee’s Term of Reference;
• Nomination Committee’s Term of Reference;
• Remuneration Committee’s Term of Reference;
ECONOMY • T7 Global’s Limits of Authority • Code of Conduct and Ethics; and
• Procurement Policy and Procedures.
• Quality Health Safety and Environmental Policies and Procedures;
ENVIRONMENT
• Code of Conduct and Ethics;
• Industrial Related Policies and Procedures; and
COMMUNITY • Quality Health Safety and Environmental Policies and Procedures.
• Human Resources Policies and Procedures;
• Quality Health Safety and Environmental (“QHSE”) Policies and Procedures;
• Employee Handbook;
• Code of Conduct and Ethics; WORKPLACE • Whistleblowing Policy and Procedures; and
• Anti-Bribery and Anti-Corruption Policy 021 AR 2020
SUSTAINABILITY STATEMENT
(cont’d)
STAKEHOLDERS ENGAGEMENT
T7 Global has placed great importance to carry out activities with high ethical standards to promote responsible practices among its stakeholders i.e. employees, shareholders/investors, business partners, customers and suppliers in order to achieve a sustainable development in the market place.
Government and Regulators ◆ Suppliers Audit and Inspections Employees ◆ ◆ Performance Reports ◆ Reliable Assessment Multi-Channel Communication ◆ ◆ Meetings and Assessment ◆ Supplier Audit Staff Activities ◆ ◆ On Government Initiatives ◆ Site Visits and Meeting Engagement Networking Activities ◆ ◆ Evaluation of Products Appropriate Reward System and Services ◆ ◆ Staff Training and Career Mutual Trust Establishment Development
Customers ◆ Shareholders/ Customer Assessment Investors ◆ Site Visits and Meeting◆ Engagement ◆ Site Visits and Meeting Engagement Trust and Confidence Building ◆ Provision of ◆High-Quality ◆ Provision of High-Quality Corporate Value Increase Products and Services ◆ ◆ Transparency of Material information Quality Control of Products and Services ◆ ◆ Various Communication Channels Long-Term Business Relationship Building Relationship Building Partners ◆ Due Diligence Practice ◆ Meeting Engagement ◆ Site Visits ◆ Social Activities
The structured process in Bursa Malaysia Securities Berhad’s Sustainability Reporting Guide is applied to identify, prioritise and review material sustainability matters.
Step 1: Identification Step 2: Prioritisation Step 3: Review Sustainable matters Sustainable matters are Sustainable matters are identified by senior prioritised through senior are reviewed by the Management and management meeting top management and reported to Executive and put into the Executive approved by the Board of Directors Committee meeting agenda. Directors.
www.t7global.com.my 022 T7 Global Berhad Registration No. 200401023809 (662315-U)
SUSTAINABILITY STATEMENT
(cont’d)
ECONOMY ENVIRONMENT Community WORKPLACE
ECONOMY
T7 Global has grown steadily since the financial year “FY”( ) 2015. The Group’s revenue has increased from RM83 million in FY2016 to RM189 million in FY2020. Detailed information is disclosed in our Annual Report.
We believe that the stable economic performance is the foundation to business goal achievement and sustainability development. It also emphasises on T7 Global’s commitment in contributing back to the community. Our local supply chain and employment enable T7 Global to have a considerable impact to our stakeholders.
ENVIRONMENT
The oil and gas industry has a considerable impact on our environment. T7 Global supports the efforts of environmental protection. Energy usage, water consumption and treatment, greenhouse gas emissions have been placed importance in making business decisions and compiling the risk assessment. Opportunities and risks are assessed by the Audit and Risk Management Committee (“ARMC”) at the beginning of the projects. The ARMC scrutinise any possible risk which may be encountered by the Group, followed by risk control and mitigation strategies. T7 Global has established a series of QHSE policies and procedures including scheduled waste management. Policies and procedures are well compliant with regulatory and client requirements.
ISO 9001:2015 ISO 14001:2015 ISO 45001:2018
T7 Global Berhad √ T7 Global Berhad √ T7 Global Berhad √
Tanjung Offshore Services Sdn Bhd √ Tanjung Offshore Services Sdn Bhd √ Tanjung Offshore Services Sdn Bhd √
T7 Gastec Sdn Bhd √ T7 Gastec Sdn Bhd √ T7 Gastec Sdn Bhd √
T7 Wenmax Sdn Bhd √
T7 Kemuncak Sdn Bhd √
T7 Kilgour Sdn Bhd’s aerospace facility has been accredited by Nadcap a global cooperative accreditation program for aerospace engineering, defense and related industries and also AS9100D which is a widely adopted and standardised quality management system for the aerospace industry by Automotive Engineers and the European Association of Aerospace Industries. 023 AR 2020
SUSTAINABILITY STATEMENT
(cont’d)
WORKPLACE
1.1 OUR PEOPLE
Human capital is the biggest asset for T7 Global. The Group devotes itself to provide a safe and healthy workplace, as well as ethical company culture to all employees. It is believed that an efficient teamwork building and a great platform provided for employees’ career development can ensure the Group’s sustainable and effective talent pool. All of T7 Global’s employees are encouraged for career training and personal development. T7 Global supports the development of local workforce, with approximately 95% of our people are locally hired. Our employees consist of 56% permanent staff and 44% contract staff. Contract staff is recruited on project basis and as when it is required.
Permanent ISO 14001:2015 56%
Soft Skill Training 472 HOURS
Contract Technical Training 44% 784 HOURS
1.2 EMPLOYEE DIVERSITY
T7 Global is aware of the contribution of women towards considerate economic value for the company. We are committed to make gender balance a reality. Both men and women have equal access to T7 Global’s recruitment, promotion and staff training. One out of seven directors is female within T7 Global’s Board. We also promote more talented women to management and leadership positions in our operations. Approximately 20% of total employees are in management level and 19% of our management team are female.
Employee by gender (%) Management by gender (%)
Female Female 37% 19%
Male Male 63% 81%
Management by age (%)
< 31 years old 6%
> 51 years old 31 - 50 years old 36% 58% www.t7global.com.my 024 T7 Global Berhad Registration No. 200401023809 (662315-U)
SUSTAINABILITY STATEMENT
(cont’d)
corporate social responsibility (CSR) / Community
T7 Global is a big family and we care for all our ‘family’ members. We have comprehensive employee benefits as detailed in the Employee Handbook. Our employee benefits including:
• Comprehensive insurance policy • Comprehensive medical coverage and benefits • Employee welfares for the birth of employee’s children, funeral and others
March 2020 – T7 Global Berhad worked together with Malaysia May 2020 – T7 Global Berhad contributed 10,000 Airlines to bring home 150 stranded Malaysians in Cambodia since pieces of medical masks and 1 set of NucTech Fever the first announcement of Movement Restriction Order (MCO). Block Screening System to Ministry of Home Affairs, received by Minister of Home Affairs, YB Dato’ Sri Hamzah Zainudin.
May 2020 – T7 Global Berhad donated 8,000 pieces of medical masks May 2020 – T7 Global Berhad donated 10,000 pieces to Royal Malaysian Customs Department, witnessed by Minister of of medical masks and 1 set of NucTech Fever Block Finance, YM Tengku Dato’ Sri Zafrul Abdul Aziz. Screening System to frontliners during pandemic of Covid-19 via Ministry of Defence, witnessed by Minister of Defence - YB Dato’ Sri Ismail Sabri bin Yaakob, Chief of Army - Jeneral Tan Sri Affendi Bin Buang and Secretary General - YBhg. Dato’ Sri Muez bin Abd Aziz. 025 AR 2020
SUSTAINABILITY STATEMENT
(cont’d)
May 2020 – T7 Global Berhad lends a helping hand to frontliners May 2020 – T7 Global Berhad donated 10,000 by donating 10,000 pieces of medical masks and 1 set of NucTech pieces of medical masks in to Ministry of Transport Fever Block Screening System to Ministry of Health in, witnessed by for distribution to frontliners, witnessed by Minister of Minister of Health, YB Dato’ Sri Dr. Adham Baba and Deputy Minister Transport, YB Datuk Seri Ir. Dr. Wee Ka Siong. of Health, YB Dato’ Dr. Haji Noor Azmi Ghazali.
January 2021 – T7 Global Berhad donated 15,000 pieces of masks to flood victims in Terengganu under foundation Yayasan Tuanku Nur Zahirah.
QHSE Policies and Procedures
QHSE Department has established extensive QHSE policies and procedures to ensure a healthy and safe environment for our stakeholders. QHSE policies and procedures have outlined the roles and responsibilities of the relevant departments and integrated QHSE concepts into our business strategies.
QHSE department oversees every project and departmental activities to comply with QHSE policies and procedures. All business units of T7 Global are required to ensure safety to people, none damage to asset and compliance. T7 Global’s senior management has delegated each of the Head of Departments to monitor the implementation of QHSE policies and procedures. Reports will be submitted regularly followed by the reporting procedures that have been set up in QHSE Manual.
100% of project-based employees are required to attend the respective safety and health training annually based on the contract requirements. T7 Global ensures outfield employees to attend relevant competency courses such as Permit To Work (PTW), Confined Space and Basic Offshore Safety Induction and Emergency Training (BOSIET), Scaffolding, Working at Height, Rigging & Slinging and Respirator Fit Test (RFT). Medical insurance is renewed for all project-based employees with a range of 6 months to 2 years. www.t7global.com.my