SUSTAINABILITY STATEMENT PHYSICAL RISK AND DELIVERY CONTINUITY Flooding and extreme heat can disrupt site access, working conditions and delivery schedules. We use Malaysian hazard records to ground our assessment of these physical exposures in local conditions. Financial dimension Business channels Topics connected Financial performance Energy and supplier costs; repair expenditure; training needs; contract revenue and margins. All six topics through costs, capability and service delivery. Financial position Asset condition and useful lives; equipment investment; inventory and working capital. Climate change, resources, environmental supply chain and risk management. Cash flows Payment timing; interrupted milestones; customer receipts; investment and recovery expenditure. All six topics through operating continuity and commercial terms. Avoiding double counting A single flood could interrupt a supplier, delay workshop activity and postpone a customer payment. Although that one event touches several material topics, its financial consequences must be assessed together so the same loss is not counted more than once. FROM EXPOSURE TO FINANCIAL EFFECTS Our FY2026 review identifies how our material sustainability topics could translate into financial effects. We describe these qualitatively this year because the data and methods needed to separately identify and measure them reliably are not yet in place; a quantified financial impact assessment is planned for FY2027. Rail and workshop activity Flooding could interrupt workshop access, deliveries and scheduled rail work, including at Railtec in Seremban. DOSM recorded RM380.2 million of flood damage to public assets and infrastructure nationally in 2025, underlining how much our operating continuity depends on transport links. Energy and marine activity DOSM recorded RM14.2 million in residential flood losses in Kemaman in 2024 – district-level evidence relevant to Destini Oil Services’ Kemaman base. Our marine activities face their own severe-weather, access and coastal exposures at each location. Suppliers, heat and overseas sites Supplier premises and transport links extend our exposure beyond our own sites. The Ministry of Health issued hot-weather health guidance in March 2024, relevant to employee and contractor working conditions. Overseas exposure depends on the hazards at each operating and supplier location. Financial channels Repair costs, rescheduling costs and delayed receipts are the most likely financial channels. The FY2027 assessment will test these against asset values, potential interruption periods and contract terms. People and operating capacity Heat, working conditions and skill requirements link labour standards directly to service capacity, and contractor personnel face similar pressures. The effects show up in productive time, training costs and our ability to meet delivery commitments. Data for the FY2027 assessment For FY2027 (ending 30 June 2027), the planned assessment will draw on operating and finance records to evaluate the financial effects of the six material topics, building on the exposures described in this statement. ENVIRONMENTAL STEWARDSHIP SUSTAINABILITY DESTINI BERHAD 58 ANNUAL REPORT 2026
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