Yinson Annual Report 2020

NATURAL SOCIAL & RELATIONSHIPS HUMAN ORGANISATIONAL MANUFACTURED FINANCIAL 50 OUR CAPITALS SECTION 4 Yinson Holdings Berhad FINANCIAL CAPITAL Operating in a capital-intensive industry, Yinson seeks to allocate our Financial Capital efficiently to maximise the return on capital. Our sources of capital include contributions by our equity shareholders and perpetual securities holders, loans and borrowings from financial institutions, cash held as well as cash flow generated from operating activities. The key financial metrics described in this chapter allows us to measure our effectiveness in creating value to our stakeholders. Yinson’s strategy for managing Financial Capital LONG-TERM, STABLE CASH FLOWS Prioritise long- term business sustainability Velocitise and realise project value through strong teamwork and cross border integration Build strong local knowledge and experience Enlarge territory and increase impact Build long-term partnerships with corporate business partners, lenders and investors Yinson’s five core pillars (pg 132) Organisational structure (pg 73) Financing is one of the five core pillars through which Yinson’s business framework and strategy are outlined, as illustrated in this report’s MD&A. The core pillars operate interdependently, with the performance of each core pillar inextricably linked with the performance of the other four. The function of the Financing pillar is to deliver long-term, stable cashflows for the Group. This enables the other core pillars to function well and safeguards the sustainability of our business, allowing Yinson to continue delivering value to our stakeholders for many years to come. Yinson has come a long way since our entry into the FPSO market in 2011 and is acutely aware of the importance of ensuring long-term business sustainability. It is our mandate to only undertake projects that provide good overall returns to our shareholders, and each and every element of our projects from the beginning to end is thoroughly evaluated at the onset to safeguard the longevity of the Group. With strong teamwork and cross border integration, we aim to enhance the performance of our projects, thereby unlocking greater project value. We believe that building a local team in the locations where we operate whilst leveraging off the strength and experience of the larger global team allows us to make stronger decisions at every level, thus maximising value for all stakeholders. It was the strong performance of our projects teams producing excellent operational results, coupled with the great efforts of the global corporate finance team that brought about the successful refinancing of FPSO JAK, thereby velocitising our capital invested and increasing the overall returns of the project.

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