57 ANNUAL REPORT 2022 STRATEGY & OUTLOOK STRATEGY REVIEW business-as-usual scenario. This is a big decision, with complex considerations which need to take into account all stakeholder interests. THE GROUP STRATEGY REVIEW To ride on the tailwind of the FPSO strategic review, Yinson has concurrently embarked on a GSR. Yinson is undertaking this exercise to ensure that we make the right strategic decisions for our growth and long-term sustainability, involving comprehensive discussions with our stakeholder groups, industry and financial experts, backed by data analytics. The review aims to complement our current strategic framework with a comprehensive financial capital allocation and reserve strategy. The GSR will provide a fresh injection of resources for us to learn about new opportunities or even new ways of doing old things and unlearn old things to make room for new possibilities. Through this review, we will fine-tune Yinson’s core competitive positioning and our future business direction to execute Yinson’s long-term sustainability vision of operating in low-carbon, climate-resilient future. The GSR will focus on the key enablers of growth such as capital efficiency and sustainability, to arrive at a set of key metrices that Yinson will be measuring up against in the long-term. Broadly, the GSR exercise will dive into understanding and determining Yinson’s aspirations in the long run, based on sets of identified key success metrices of each business in their respective lifecycles. We will also apply a bottom-up assessment on each business division to allow us to derive a more realistic and attainable target for the Group and prioritise choices and tradeoffs. This will help us to better plan our capital allocation and address the gaps in achieving Yinson’s aspirations, ultimately delivering greater value to our shareholders, in line with the ongoing FPSO strategic review exercise. As we all know, allocating capital is a complex process, especially for Yinson in the coming years as we continue to expand and grow. A company’s success or failure often hinges upon capital-allocation decisions, which must take into account comprehensive consideration of factors such as the available sources of capital, timing, economic environment and trends, innovation of financing strategies and structures and strategic partnership opportunities. Hence as part of this exercise, we will deep dive into these factors and allocate funds to optimise results for Yinson and our stakeholders. On top of allocating capital, the review aims to develop a plan to open up new capital to Yinson. Our success in the sustainability-linked sukuk has pathed a way for Yinson for more innovative ways to finance our increasing business needs. We will be evaluating innovative financing strategies that can maximise our liquidity and provide cheaper sources of capital so that we can continuously support the high growth businesses to reach its maximum potential. The ability for Yinson to recycle capital effectively will also be an important scope of this review as an effective strategy to attract private capital while bringing new infrastructure online. As we unlock value from capital strategies, the GSR will also look into new opportunities and business segments that Yinson can potentially venture into by leveraging on our rights to win. We will also look to adapt our corporate philosophy and structure so that it can be expanded to embrace that growth. This includes ways on how we can optimise our corporate structure and equip corporate functions with the right tools to cater to our business needs as they expand across multiple geographies. As mentioned earlier, we must always be mindful not to expand too fast or risk being disrupted and stereotyped as being slowmoving and bureaucratic, removing our edge as an efficient decision-making organisation. Through the GSR, we will also tap into deeper market and industry data to validate and adjust existing business strategies where necessary. Having access to reliable information allows us to be better informed of external opportunities, the competitive landscape, and its associated risks before committing into new ventures or investments. Having data-backed evaluations greatly strengthens the Group’s decision-making processes when it comes to considering capital planning and allocation options. A key outcome of the GSR will be the development of a Group-wide strategic roadmap for the next 10 years, pathing the road ahead for existing businesses and also potentially new ones. We have engaged an external consulting partner for this exercise, who we believe can add value to our plans by fleshing out our existing strategies, scrutinising our conventions and providing access to industry data and business connections. We have already started this exercise in 2021, and efforts will continue in 2022. We look forward to sharing the outcomes of this exercise with you, painting a clearer picture of where we are headed and how we want to get there so that you can join us on this exciting journey. CLOSING REMARKS The ever-changing business landscape is volatile, unpredictable, and susceptible to risk. However, these factors leave us room for constant innovation, adaptation, and disruption. As we grow and acquire new talents, Yinson shall continue to pass on its legacy of sustainability and reliability underpinned by our Core Values. We strive to walk forward as a goal-oriented organisation that constantly curates dynamic solutions for all our stakeholders. The GSR framework will continue to guide our company in the coming years and is expected to accelerate our business growth. We aim to maintain a steady balance of forward-thinking vision, tactical execution, and calculated risk to safeguard ourselves because ‘change is inevitable, but growth is optional’. We are confident that our decisive strategic actions now can velocitise our growth, strengthening our position as a value creation company that contributes to the wellbeing of people and the business ecosystems that we operate in.
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