IMPLICATIONS FOR THE BUSINESS MODEL The review separates effects on revenue and costs, on asset values and investment, and on the timing of cash receipts and payments. Water: 14.154 ML supplied across five metered accounts, with the shared Shah Alam account counted once. Waste boundary: Destini Berhad, Railtec, Techno Fibre Malaysia and Techno Fibre Middle East. Railtec’s data submission states a reporting period running from 2024 to June 2026; its figures are reported as submitted for FY2026. In FY2025, diverted and disposed waste (16.12 tonnes) was 0.84 tonnes below the 16.96 tonnes generated; the difference could not be reconciled from the available records. Indicator FY2024 FY2025 FY2026 Water used (ML) - 11.530 14.154 Waste generated (tonnes) - 16.96 125.52 Waste diverted (tonnes) - 7.20 80.92 Waste to disposal (tonnes) - 8.92 44.60 POLLUTION AND RESOURCE MANAGEMENT Pollution and resources is one of our high-exposure topics. Reported waste totalled 125.52 tonnes in FY2026: 80.92 tonnes sent for recycling and 44.60 tonnes sent for disposal. Revenue and operating margins Transition-aligned opportunities in rail, energy and assetlife extension depend on customer spending and on our ability to win and deliver work. Carbon-related input costs could squeeze margins where contracts do not allow recovery, and physical disruption could defer service milestones and customer receipts. Assets and capital expenditure Changing customer technology could reduce the economic usefulness of specialist equipment and skills, while weather exposure could raise repair costs or bring forward asset renewal. Both channels affect asset lives, investment timing and the spending needed to keep delivering services. Liquidity and financing Supplier disruption may require us to hold more stock or make advance payments, and delayed delivery postpones customer receipts. Both increase the funding tied up in work in progress, particularly if financing costs also rise. Financial impact assessment in FY2027 Destini plans to carry out a financial impact assessment in FY2027 (ending 30 June 2027) covering the six material topics. It will consider effects on financial position, financial performance and cash flows – including revenue, operating costs, assets and investment – building on this year’s qualitative review and assessing shared effects together to avoid double counting. Kemaman environmental campaign Destini Oil Services Sdn. Bhd. held an environmental campaign at its Kemaman operation in Terengganu on 11 August 2025. Seremban community clean-up Railtec held a community clean-up around its Seremban site on 18 December 2025, taking care of the neighbourhood the rail operation shares. Waste sent for disposal Destini Berhad sent 9.60 tonnes of waste for disposal: 7.68 tonnes of food and drink waste, 0.72 tonnes each of board and paper, and 0.48 tonnes of plastic. Techno Fibre Middle East sent 35.00 tonnes of general waste for disposal. Together these make up the 44.60-tonne disposal total. Waste recycled and water use Railtec’s recycling comprised 63.00 tonnes of general waste, 1.88 tonnes of scheduled waste and 0.24 tonnes of paper and PET (210 kg and 30 kg respectively), and Techno Fibre Malaysia recycled a further 15.80 tonnes. Recycling therefore accounts for 64.5% of reported waste. Water consumption totalled 14,154.2 m³, with shared utility accounts counted once. ENVIRONMENTAL STEWARDSHIP SUSTAINABILITY DESTINI BERHAD 59 ANNUAL REPORT 2026
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