116 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2023 Active stewardship at the centre, empowerment of the business units In the year under review, Yinson has taken a significant step forward to empower our business units by increasing the decision-making autonomy of business units. We believe that this move optimises business growth, enables more agile decision-making and improves the management of risk and opportunities. It will also support the deepening of the talent pool at our business units as we bring in resources to strengthen the respective leadership teams. 2022 served as a transition year for this undertaking and the transition will continue into the following year, with a focus on developing new LOAs and conducting regular engagements across all business units and employees, with oversight from the Board and Senior Management. In tandem with these changes, the Group will maintain active stewardship of the overall direction, strategy and business synergies. A prudent approach to investing Yinson’s investment choices for potential new assets and projects are steered by the Group Investment Policies. These policies establish the target minimum returns on investments, which are linked to a project’s risk factors such as counterparty, contractual legal terms, technical and operational requirements, political environment, tax, ESG considerations, project partners and strategic considerations. Furthermore, Yinson’s Management Committee discusses any project-specific risk factors while making investment decisions. The updated framework enables a balance to be struck between the commercial expectations from an investment and Yinson’s strategic objective of achieving sustainable growth. YP has an existing policy, but policies for YR and YGT are currently being developed as the value chains of these businesses vary significantly. The Board and Management frequently review these policies to ensure they align with best practices. Management approach At the heart of Yinson’s strategy is our ability to innovate our business to suit changing landscapes and considerations. It is embedded throughout our Strategic Framework with ‘Adaptable’ as one of our Core Values, having an ‘Agile and Innovative mindset’ as a Yinson Edge and being at the ‘Forefront of innovation & disruption’ as one of our business strategies. We have also articulated this through our Unique Rights to Win – Yinson’s distinctive characteristics which have enabled us to capitalise on change and disruption. This has been demonstrated in our willingness to make bold investment decisions in businesses that we believe in, such as YR, YGT and our latest addition, Farosson, which all have unique risk-return profiles. YINSON’S UNIQUE RIGHTS TO WIN Entrepreneurial capabilities Yinson’s ability and success to build businesses and pivot to new segments over the years from a local transportation business to diversified businesses in offshore production, renewables, green technologies and offshore marine. Project management excellence Yinson’s project management team works on a lean structure that enables us to address problems and make decisions quickly. Operational excellence Yinson is recognised for its technical and operational performance in offshore production, with an excellent track record in delivering projects on time and on budget. Strategic risk management approach Yinson’s willingness to make bold investment decisions in innovations and businesses that we believe in, balanced by a healthy consideration for the risks involved. EMBRACING GOOD CORPORATE GOVERNANCE
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