115 ANNUAL REPORT 2022 STRATEGY & OUTLOOK BUSINESS REVIEW - GREEN TECHNOLOGIES Strategic green technology investments Selecting the right strategic green technology investments are a key way we manage the risks and seize opportunities arising from the external environment. This is also our edge in this market. Our investment decisions are guided by our clear-minded purpose of building an interconnected, integrated green ecosystem, which take geographical and Group synergies into account. Geographical synergies We prioritise our strategic investments to geographical areas where Yinson already has an established operating presence and where the governments have a strong direction for decarbonisation. This allows us to leverage on factors such as manpower and resources, connections to local stakeholders, strong reputation, our established position in the supply chain and local knowledge; which are key to maximising operational efficiencies. For example, we established YGT’s headquarters in Singapore, which is home to Yinson Production’s projects office and part of our Global Corporate Advisory Office. Our long history and good industry standing in Singapore paved the way for our participation in the Goal Zero consortium, which won the harbour craft electrification grant from MPA and SMI. Such a track record has helped to build confidence in our ability to take on energy infrastructure projects in Singapore, such as our collaboration with SMRT Ventures. In Malaysia where we have our global headquarters and are currently listed, we have a strong reputation as a Malaysian company that has successfully globalised. We have been contributing economically and socially to Malaysia for many years, backed by a stellar governance and compliance track record. Plus, we have been part of the Malaysian supply chain since our founding as a logistics company in 1983, and more recently through FPSO Helang. Our investment into chargEV is a good example of how our good standing in the country opened up new opportunities, with the Government and other stakeholders placing their trust in us to ramp up the adoption of EVs in the country. Marine, mobility & energy focus There are many areas of green technologies with great potential. However, we are selective to prioritise technology areas which most strategically align with our current position, and our plans for growth. Thus, we have narrowed our focus on the three areas where we already have existing expertise, knowledge and resources within the Group – marine, mobility and energy. We believe that the collective knowledge and experience that we already have in these segments as a Group helps us to make wiser investment and operational decisions. EXAMPLES OF SYNERGIES WITH YINSON’S DIVISIONS Marine Mobility Energy Marine technologies such as 3D printing Marine experts, such as naval architects Floating microgrids Origins in logistics and transport Governance and regulatory experience in energy and infrastructure Energy supply chain Battery, microgrid, wind turbine technology Our investments also take into account the kind of experience and resources that we have at Group-level, such as project management, corporate functions, our financing and investor base and our existing supply chain. Driving innovation in line with government incentives & industry trends We aim to relentlessly drive innovation in line with government incentives, including grants, subsidies and tax breaks; as well as global industry trends. Aligning our innovation efforts this way lowers the cost of implementation and commercialisation and provides a ready supportive market for commercialisation of the product. We believe this is a good way to significantly lower the risk of our ventures. For example, MPA and SMI in Singapore have made a commitment to overcome the serious challenge of pollution caused by harbour crafts, devoting sizeable funding for research and development of new technologies. Importantly, this shows a strong intent from the authorities to electrify the harbour craft industry, aligning with Yinson’s goals for decarbonisation. The Malaysian Government’s Low Carbon Mobility Blueprint envisions a holistic EV ecosystem that builds up EV penetration rates and a well-planned infrastructure framework to support growth in the segment. Our investment into chargEV ties in strategically to the blueprint, providing assurance of government support for our plans to develop chargEV’s infrastructure across the nation. CLOSING REMARKS Having now made several investments into various businesses that we believe are foundational to the ecosystem that we hope to build, our focus is now to learn from them in order to integrate, synergise and grow. We are on an exciting journey as a company, embarking into areas which are new, not only to us, but to the world as a whole. Leaning on our strong business fundamentals and with the support of like-minded stakeholder groups that are aligned towards our vision of a low carbon future, we are confident that our efforts will contribute to a cleaner, more sustainable future for everyone.
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