66 YINSON HOLDINGS BERHAD STRATEGY & OUTLOOK CASH FLOWS & LIQUIDITY Cash & Liquid Investments (RM’ MILLION) FYE 2022 FYE 2021 2,050 FYE 2020 1,465 FYE 2019 1,290 FYE 2018 717 2,873 Free & Available Cash (RM’ MILLION) FYE 2022 1,495 FYE 2021 1,329 FYE 2020 886 FYE 2019 724 FYE 2018 291 Our objective is to maintain an adequate cash balance to be able to cover our working capital and meet our financial commitments for the years to come. In other words, we place continuous focus on both improving our free cash flow position and increasing our long-term borrowings to finance our future growth. We are committed to maintaining this prudent and forward-looking approach, as it has been a crucial strategy for the achievement of our success thus far, and we believe it will continue to safeguard the growth plans that we have ahead. In line with this strategy, the Group’s cash and bank balances and liquid investments increased by 40.1% from RM2,050 million to RM2,873 million in FYE 2022. This was partially fueled by the drawdown of the RM1.0 billion 5-year Sustainability-Linked Sukuk Wakalah in December 2021. Sustainable financing highlight, pg 55 Yinson’s free and available cash position of RM1,495 million provides flexibility for expansion and adequate buffer to meet any unforeseen cash requirements. Free and available cash is derived through cash flows from operations, raising of financial capital and drawdown of loans and borrowings pending deployment for projects. It is important to note that the cash flows generated from our non-EPCIC operations has been growing in recent years, despite the turbulences of the economy and oil price crunch in 2020. As part of how we prudently manage our liquidity, our free and available cash is mainly held in time deposits and interestbearing accounts and is managed with a goal of capital preservation and liquidity so that funds are available at the required time buckets based on cash flow projections. Financial capital, pg 137 FINANCIAL REVIEW
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