61 VALUE CREATION AT YINSON POISED FOR CONTINUED GROWTH It has been yet another fast-paced, fruitful and exciting year for Yinson, in which we performed strongly in both financial and sustainability contexts through the disciplined execution of our strategy. We concluded our Group Strategy Review (“GSR”) in 2022, which subsequently led to the reinforcement of our strategies and a number of developments announced in early 2023. The GSR was supported by Boston Consulting Group as part of our review strategy process. To recap, we first started on the GSR in 2021, cognisant that we needed a blueprint to guide us over the next 10 years, especially as we would be facing significant structural, regulatory and industry changes with the broader market landscape signalling a clear acceleration of the energy transition. We realised that now is the pivotal time to make the right strategic decisions to support our growth and long-term sustainability. We also needed to evaluate our capital allocation and reserve strategy, fine-tune our core competitive position and explore new opportunities and ways of doing things in the context of our future business direction. Thus, the key deliverables of the GSR were to: • Assess Yinson’s core capabilities against the market landscape and macro trends. • Establish probable long-term scenarios, evaluate strategic choices and lay out the dominant strategy. STRATEGY REVIEW Joint commentary by Mr Daniel Bong, Group Chief Strategy Officer and Head of Group Corporate Advisory (2022) and Mr Chai Jia Jun, Group Chief Strategy Officer (2023) • Examine a framework for strategic capital budgeting and identify further sources of capital which are aligned with our growth plans. AFFIRMING OUR DIRECTION AND STRATEGY The GSR’s key conclusions affirmed that our overall business model, strategy and direction were solid, and this has given us greater focus in terms of execution. From the review, it became even clearer that each of our business units is growing in different phases, and how the Group supports them should change in order to maximise their growth potential and create greater value for our stakeholders. We were at an inflection point in our growth journey and we needed to consider business unit autonomy and capabilities, but with active stewardship from the Group. Therefore, one of the direct results of the GSR was the implementation of greater decision-making autonomy at the business unit level, reflected in the strengthening of functions, manpower and expertise, which were previously provided centrally by the Group. This also included adjustments to Limits of Authority (“LOA”) to ensure business units are able to make independent and timely financial decisions, as well as the launch of new brand identities for each business unit. These changes, together with strategic leadership changes to better reflect the needs of our business, were rolled out in phases from late 2022.
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