Yinson Annual Report 2021

46 YINSON HOLDINGS BERHAD SECTION 01 : OVERVIEW STRATEGY REVIEW In FYE 2021, we undertook an exercise to refresh our strategy framework in line with our growth into new business areas and territories. As always, our Vision, Mission and Core Values sit at the pinnacle of the framework, providing guidance and direction for decisions made at every level. We also identified elements that make up ‘Yinson’s Edge’ – these are our unique strengths that we leverage on to differentiate ourselves so we can propel Yinson forward. We work hard to maintain our edge, as this is the key to staying ahead in a competitive landscape, ensuring we can continue delivering value to our stakeholders. The concept of ‘leadership by altitudes’ is an apt way to describe our approach to the development of our new strategic framework. At 50,000 feet, we see the big picture. At 50 feet, we get a good tactical view close to the ground. At 5 feet we see a good picture of ourselves. We were cognisant of not getting ‘altitude sickness’, i.e. being stuck in one altitude. If we get stuck at 50,000 feet we risk having vision without action; getting stuck at 50 feet can blind us to the opportunities and threats, causing us to dwell in the fallacy of our comfort zones; and remaining at 5 feet causes us to micromanage business frameworks that are already established, living in the glory of past successes. By overcoming ‘altitude sickness’ and manoeuvring between the various altitudes, we are able to develop a consistent and balanced strategy that can be executed well in the present in order to bring value far into the future. The strategy refresh took into consideration the transition necessary under the global climate action agenda, where a carbon-constrained economy is the new prevailing socio- economic paradigm. This transition will not take place overnight and will definitely require large-scale capital reallocations. Capital is finite, so we need to make good capital allocation decisions during this transitional period with regards to our various businesses, considering their respective positions within the growth-share framework. During this period, we will adopt a broad-based approach to business ventures and financial partnerships whilst balancing our sustainability commitments. It is absolutely necessary for Yinson to consider the latent demands of our stakeholders, in relation to both internal and external decarbonisation actions. In FYE 2020 and FYE 2021 we established our Renewables and Green Technologies Divisions. At the same time, we launched various decarbonisation initiatives towards achieving our Climate Goals. One example is the development of a fully electrified harbour craft concept model by the Green Technologies Division, powered by advanced hydrofoil technology. Upon commercialisation, we believe we can provide the harbour craft industry with an option that significantly reduces energy costs and carbon footprint. Business review, pg 52; Yinson's Climate Goals, pg 72 DANIEL BONG Group Chief Strategy Officer Head of Group Corporate Advisory Social & Relationships Capital, pg 130