Yinson Annual Report 2021

47 ANNUAL REPORT 2021 We have identified six Group-level strategies, which are operationalised at Division-level through Divisional goals and strategies. We believe that the alignment between our Group and Divisional strategies can create synergies that unlock even greater efficiencies and value. The foundation of the framework lies on the strength of our business units and Corporate team, which lend vital support for the execution of our strategy. Divisional goals and strategies were carefully formulated by the Board and Senior Management in alignment with the Group’s seven UN SDG commitments. Each Division is unique, presenting its own opportunities to bring value to and through the six Capitals. For instance, Offshore Production’s goal of achieving a long-term EBITDA of USD500 million will not be a walk in the park. With US Crude plunging below zero for the first time in history in April 2020 amidst the Covid-19 induced supply glut and UK Export Financing withdrawing support of fossil-related projects in line with the Climate Ambition Summit in December 2020, Yinson faced an uphill task to close financing for the construction of FPSO Anna Nery. Despite the reluctance of many financial institutions to provide financing support for carbon related projects, we were eventually successful in closing the financing for a USD400 million bridge loan in September 2020, with strong support of our local and international house banks. We do not take such successes for granted. Learning from this experience, we aim to obtain committed funding before signing the charter contracts for future offshore production projects. We are optimistic that the investments into our newer businesses will bring long-term value to our stakeholders, and that they will become equal pillars and contributors of value to the Group. This will be achieved through a sensible and dynamic capital allocation strategy and by continuing to uphold our value proposition as a strong solutions provider to our clients to grow our market share. We are cognisant that there is a cost to break the barrier to entry in this competitive market and grow our renewables presence, but our Renewables Division will not participate where price is the sole competitive factor. With green technologies, we adopt a different strategy from the venture capital market where investors generally invest in a wide range of opportunities in the hope of finding the next unicorn. Instead, we take a targeted approach in developing the Green Technologies Division, where we leverage on our existing strengths and geomarkets to build profitable, disruptive businesses, based on clean technologies and digitalisation in the space of energy, mobility and marine. We are proud of the value we have generated despite the many challenges faced this year and optimistic about plans we have put in place to continue our growth. With the strategy refresh presenting an even clearer direction, Yinson will continue to create value for our stakeholders, both internal and external. In closing, Yinson will adhere closely to our strategy framework, which emphasises the importance of adaptability to stay ahead in this fast-changing, complex, diversified and volatile economic environment. We will maintain a steady balance of forward-thinking vision, tactical execution and self- awareness to safeguard ourselves against ‘altitude sickness’. DANIEL BONG Group Chief Strategy Officer Head of Group Corporate Advisory STRATEGY REVIEW We will maintain a steady balance of forward-thinking vision, tactical execution and self-awareness to safeguard ourselves against ‘altitude sickness’