64 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2023 Yinson faces several challenges in embracing digitalisation and innovation. These challenges include the highly competitive space in which we operate, the high capital expenditure requirements needed in order to stay competitive and the higher risk of failure associated with introducing new technologies and innovations. Despite these challenges, Yinson recognises the importance of sustained investments of time and resources in these areas. From an organisational perspective, we are fully committed to ensuring that our governance structures support this. We will also strive to create value by optimising existing processes and workflows, enhancing our core products and creating new solutions according to market demand. Ultimately, we believe that digitalisation will enable us to innovate cutting-edge ways of working and to stay ahead of our competitors in delivering clean energy solutions. GS3 Create sustainable shareholder value Creating sustainable shareholder value requires long-term planning and making bold decisions early. The findings from the GSR helped to crystalise our steps forward in this regard, as reflected in the greater decision-making autonomy given to our businesses, the establishment of Farosson to accelerate our growth and investments into sustainable infrastructure and the strengthening of leadership and governance at the Group level to align all businesses towards an ESG-focused future. In discussing sustainable shareholder value, the conversation will continue to centre around our FPSO business in the nearer term, given that it contributes a substantial amount of revenue and profits. As previously STRATEGY REVIEW KLCI VS YINSON SHARE PRICE Yinson share price FTSE Malaysia KLCI Feb 2022 May 2022 Aug 2022 Nov 2022 Feb 2023 mentioned, it is a capital-intensive business, and for us to manage the associated risks, such as corporate funding risk, we know that our strategies must be updated to capture the opportunities of an evolving market landscape. To us at Yinson, this begins with how we allocate our capital to embrace the energy transition and to ensure that ESG and sustainability continue to remain at the core of what we do. As such, we have made the commitment to devote at least 30% of equity Group-wide to non-oil-based FPSO activities by 2030. This commitment demonstrates our seriousness in taking concrete steps in line with the energy transition agenda. We are committed to ensuring that all decisions made across the Group are aligned with the achievement of this target. We are also committed to only selecting projects that align with our aims. In line with our strategic direction to capture opportunities in the energy transition space, we will be actively directing capital from the FPSO business to growing YR and YGT. This is also where Farosson and its capital recycling expertise comes into play. Overall, this is how we will de-risk our capital from energy transition and climate risk over the long term. Over the years, Yinson has continued to provide steady returns to our shareholders while growing the Company, as demonstrated in the graph below. Delivering such value continues to be a priority for us moving forward. Throughout FYE 2023, Yinson’s share price remained relatively stable despite the various economic downturns, hovering around the RM2.20 mark, with a high of RM2.70 and low of RM1.83. The relatively stable share price is a testament to our sound financial background and management.
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