Yinson Annual Report 2021

84 YINSON HOLDINGS BERHAD SECTION 05 : OUR CAPITALS FINANCIAL CAPITAL Yinson's Group Investment Policies were updated in FYE 2021 and adopts a new internal framework to determine the target minimum returns on investments. Under the framework, returns are correlated to a project’s risk factors such as counterparty, contractual legal terms, technical requirements, operational requirements, political environment, tax, ESG, project partners involved and strategic considerations. Additionally, any project- specific risk factors are also discussed by Yinson’s Management Committee when making investment decisions. The updated framework allows a balance to be achieved between the commercial expectations from an investment and Yinson’s strategic goal of achieving sustainable growth. Separate policies were adopted for the Offshore Production and Renewables business divisions to take into account that the value chain for these businesses differ significantly. Additionally, an investment policy for Corporate Treasury was created, setting out the parameters for the management of Yinson’s free cash, with the objective of capital preservation and liquidity. The Board and management will continually review the policies to keep up to date with best practices. GROUP INVESTMENT POLICIES t 'JOBODF"TJB T "TJB T #FTU $PNQBOJFT 4VSWFZ o Malaysia’s Best Mid-Caps Company t "TJBNPOFZ "TJB T .PTU 0VUTUBOEJOH $PNQBOJFT Poll 2020 – Most Outstanding Company in Malaysia (Energy Sector) t *OTUJUVUJPOBM *OWFTUPS T "MM "TJB &YFDVUJWF 5FBN Rankings – Most Honoured Company t *OTUJUVUJPOBM *OWFTUPS T "MM "TJB &YFDVUJWF 5FBN Rankings – Best CEO (Oil & Gas sector) t "TTFU 5SJQMF " "XBSET o #FTU 4ZOEJDBUFE -PBO in Malaysia, in recognition of the USD400 million bridge loan facility for the FPSO Anna Nery project t "4&"/ $PSQPSBUF (PWFSOBODF 4DPSFDBSE Award t 5IF &EHF #JMMJPO 3JOHHJU $MVC o A)JHIFTU Returns on Equity over Three Years’ t 5IF &EHF #JMMJPO 3JOHHJU $MVC o A)JHIFTU Growth in Profit After Tax Over Three Years’ AWARDS RECEIVED IN FYE 2021 IN ACKNOWLEDGEMENT OF YINSON’S MANAGEMENT OF FINANCIAL CAPITAL CAPITAL STRATEGY PROJECT LEVEL PLATFORM LEVEL REFINANCING Equity sell-down at project level to accelerate project equity cashflows and boost project returns Optimise project capital structure and extend debt maturity of stabilised brownfield assets to enhance returns Re-leverage order book backlog to velocitise capital Yinson adopts the above tactical strategies to enhance returns of our investments and accelerate the return of our Financial Capital to be deployed into new projects. Through the deployment of these capital strategies, Yinson was able to grow our business and fund the capital requirements of the last three FPSO projects without any further fundraising from the equity market since 2015, while continuing to provide our shareholders a stable dividend return.