90 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2023 The heart of our business: electrification YGT was established in 2020 with three clear goals: (1) to establish green technologies as a major revenue stream for Yinson; (2) to develop profitable, disruptive businesses based on clean technologies and digitalisation; and (3) to achieve a net zero business. We planned to achieve these goals through activities in the marine, mobility and infrastructure segments, underpinned by a strong foundation in digitalisation. In line with our short to medium-term strategies, we initially focused on making strategic greentech investments. The choices we made leveraged the larger Group’s experience in energy infrastructure, as well as the geographical areas where the Group already had operations and which were in line with government incentives and industry trends. Since then, we have built a good portfolio of technologies through investments in companies such as Shift Clean Energy, MooVita, eMoovit, Lift Ocean, GotSurge, Oyika and chargEV. We have also invested in many R&D collaborations. These early activities helped us to gain greater clarity about our direction and focus, and it became clear that the heart of our business would be the electrification of the land and sea transportation ecosystem. Thus, in 2022, we adapted our strategy to focus on the megatrend of electrification and started directing more resources to operate and grow our businesses, namely chargEV, rydeEV, drivEV, marinEV and our internal Yinson digital team. In terms of our investments and R&D, we also further aligned our efforts with technology companies that were both good investments on their own, and which would contribute directly to the businesses we were building. The GSR affirmed that we were in the right direction. Analysis from the GSR assured us that our business fits well with the Group’s Vision and Climate Goals and balanced the Group’s risk/return profiles aligning with the energy transition. It also validated that YGT was involved in opportunity spaces seen to be key value drivers in the decarbonisation economy. Further, it affirmed that YGT is at the right stage of growth to align with our top greentech opportunities based on size and structural advantage. OUTLOOK At YGT, we believe in helping our customers transition to a net zero economy by providing the technology behind the digital and grid infrastructure necessary for the transition to cleaner sources of mobility, transportation and logistics. Encouragingly, the Malaysian and Singaporean governments are continuing to support the clean energy agenda, as seen in recent budget announcements. However, uptake amongst consumers may be slow if a mindset change does not take place – something which we believe can be accelerated if there are more incentives in the form of tax credits and grants to corporations. With the increase of technological advancements, especially in battery storage and capacity, we believe that Malaysia and Singapore are at an inflexion point in their electric mobility journey. The segment is on the verge of exponential growth, where we believe we could see adoption rates surge beyond that of comparable first-mover nations like Europe, China and the United States. A recent report from Ernst & Young (“EY”) indicates that EV adoption rates are beating all predictions, with global EV sales doubling in 2021 and jumping 55% in 2022 to account for 13% of all vehicle sales. By 2030, EY estimates that sales of battery EVs (BEVs) and plug-in hybrid EVs (PHEVs) will make up over half of global vehicle sales. That is three years sooner than predicted in 2021. In this respect, YGT is well-positioned. We have built our knowledge and established our footprint in the latest technology spaces relating to land and sea transport electrification, and this has allowed us to build a solid, integrated business offering in markets that are poised to grow. We will continue to keep a keen eye on market trends, risks and opportunities and practise the agility to adapt that has been a hallmark of Yinson’s growth through the years. YINSON GREENTECH
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