51 ANNUAL REPORT 2022 STRATEGY & OUTLOOK STRATEGY REVIEW Commentary by Daniel Bong, Group Chief Strategy Officer CHANGE IS THE ONLY CONSTANT Change has become the only constant, with disruptions happening faster and wider than ever before. The unparalleled pace of disruptions today, which is hugely enabled by technology, is caused by a range of interconnected forces including demographics, social values, urbanisation, regulation and climate action. The biggest accelerator for disruption in recent years has undoubtedly been the pandemic, which catapulted technologies like AI, machine learning and robotic process automation way ahead of predicted adoption. Zooming in to the energy industry, a plethora of factors is driving a level of disruption not seen since the invention of cars and electricity more than a century ago. Climate change has been the major accelerator of change in the energy space, with climate conversations taking centre stage in global events and corporate boardrooms across all sectors. The urgency to mitigate climate effects before it’s too late is propelled by a global need to better understand the energy system of the future so that we can collectively address critical issues of energy security, environmental sustainability and affordability. What we have witnessed over the last two years indicates that industries are entering into the next cycle of transformation, where opportunities to capitalise on this change will be aplenty. Therefore, high growth companies like Yinson should not rest our laurels in anticipation of the next wave of transformation, but structurally evolve as our portfolio of businesses, assets and headcount expands. The evolution needs to be thoughtful, stakeholder-driven and timely; with a focus on breaking down siloed mindsets between geographies and teams. The disruption megatrend may raise alarms for new, previously unseen risks; but it also gives rise to exciting opportunities for businesses that are able to strategically position themselves to capitalise on it. We believe that to maintain our edge in this age of disruption, we need to anticipate and embrace change, continuously invest in innovation and be bold to revitalize our business model to be able to capitalise on opportunities. YINSON’S TRANSFORMATION & GROWTH LESSONS A sustainable business must strike a balance between shareholder returns in the immediate term, while simultaneously securing growth for the future. We aim to achieve this balance through the reliability of our business model and operational performance, paired with intelligent capital strategies that ensure growth while maintaining financial stability, underpinned by a long-term vision that encourages innovation and adaptability. Yinson has had an exciting and unique journey, characterised by our ability to adapt to the changing environment and seize growth opportunities that come along with it. Throughout our growth, Yinson adhered to our strong fundamentals, such as operational excellence and good management of our Capitals, which helped us to reshape our business strategies to face the risks and opportunities presented by the external environment at that time. The success of these strategies is reflected through timely and on budget project deliveries generating strong cash flows and a consistent track record of delivering returns to our shareholders over the years. We also cultivate an open and transparent relationships with all our stakeholders, providing regular avenues for engagement in order to better understand their concerns and take steps to address them. For our financing and funding partners, for example, building an environment of trust and honest communication allows them to understand our business better and appreciate our
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