54 YINSON HOLDINGS BERHAD STRATEGY & OUTLOOK In line with our ESG strategies and goals, Yinson has secured two projects leading towards our Zero Emissions FPSO concept in FYE 2022. In agreement with our clients, both projects have zero emission technologies integrated as part of the FPSO design. The technologies, such as hydrocarbon blanketing, combined cycle technology, Carbon Capture Utilisation and Storage (“CCUS”) and Direct Air Capture (“DAC”) are in the early phases of development in the oil & gas industry – and we are proud to join hands with our clients to pioneer some of these future technologies. Zero emissions FPSO concept, pg 102; Leading the way with responsible solutions, pg 103 On the renewables front, our primary focus will be to participate across the value chains of onshore wind and solar in the near term, but may also include offshore wind, hydro, and other opportunities in the future. With the growing demand for clean energy solutions globally, we have built a promising project pipeline focused in Latin America, Europe and Asia Pacific. Yinson’s renewables business is an integral part of our mission to reduce our carbon footprint and operate our businesses more sustainably and cost-effectively. Yinson GreenTech’s strategy of growth is targeted at the three segments of marine, mobility and energy to best leverage on our existing capabilities to evaluate the building blocks of the end-to-end low carbon mobility ecosystem that we are creating. We invest into companies with high growth potential that complements our overall strategy to develop profitable, disruptive businesses based on clean technologies and digitalisation. Yinson aims to support their technology development journey with a clear goal of establishing commercially viable products with new business models that can create value for our existing and new clients across the mobility ecosystem. You can read about the growth of our divisions, as well as the strategies fueling their respective growths, within the Strategy & Outlook section of this Report. Group CEO Review, pg 41; Business Review - Offshore Production, pg 98; Business Review - Renewables, pg 105; Business Review - Green Technologies, pg 111; Sustainability Statement, pg 120 Having built a solid credit profile and track record in delivering on our commitment all these years, we were able to secure top ratings from RAM Ratings and MARC in June 2021. This is a significant achievement for us, assuring us of the investor community’s confidence in us in order to boldly step into our new growth phase ahead. Yinson receives A1/stable and A+/stable ratings from RAM & MARC In June 2021, Yinson received A1/stable and A+/stable ratings from RAM Ratings and MARC respectively. Both ratings agencies opined that Yinson’s strong business profile is underpinned by its capability to secure recurrent sizeable long-term FPSO contracts which in turn provided earnings visibility and healthy profit margins. The rating agencies also took into account that Yinson’s contractual revenue is unaffected by crude oil prices, with robust contract terms built in to ensure adequate compensation should termination occur. RAM and MARC also noted that Yinson has demonstrated timely FPSO deliveries and cost containment during the construction period; and achieved operational uptime of above 99% in the last five years. CORPORATE MILESTONE HIGHLIGHT In 2021, we gained further recognition as an industry leader in the area of sustainability and ESG, pushing the frontiers of climate and environmental action, social impact and governance. Our leadership position has allowed us to tap into exciting new pockets of capital which are linked to our sustainability performance. One of our proudest achievements in 2021 was when we successfully raised Malaysia’s first Sustainability-Linked Sukuk via the issuance of RM1.0 billion 5-year Sustainability-Linked Sukuk Wakalah. Please see the highlight on the next page for details. Additionally, we achieved the sustainability targets set for a RM200 million SLF from HSBC Amanah which we embarked on in 2020, giving us improved pricing to further finance the growth of the Group. Yinson’s sustainability commitment to our stakeholders is expected to drive more SLF within the Group moving forward. The sustainable finance market took a huge jump from USD71 billion in 2019 to USD406 billion in 2021. A key factor for the unprecedented increase was the Covid-19 pandemic, which increased focus on social infrastructure and investor social responsibility. This opens up vast upcoming opportunities for Yinson to raise funds through this market. Climate Action: No longer a luxury but a necessity, pg 41; Financial Capital, pg 137 STRATEGY REVIEW
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