54 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 STRATEGY REVIEW COMMENTARY BY CHAI JIA JUN, GROUP CHIEF STRATEGY OFFICER 2023 was no ordinary year. Changing macroeconomic conditions disrupted markets, tested our resilience and challenged our assumptions. Yet, it was precisely during these uncertain times that our strategy proved its mettle. We adapted our pace and processes in alignment with changing market factors, while continuing to adhere to our business strategies. We kept focused on our purpose and made decisions in alignment with our Core Values. KEEPING A CLEAR FOCUS ON THE ENERGY SPACE The growth of our businesses throughout 2023 reaffirmed that our strategic direction of focusing on the energy space, specifically energy infrastructure, is sound. Infrastructure has always been an attractive asset class, as they usually have contracted revenue streams from companies with high credit ratings, providing stable and consistent long-term returns. Lately, global structural shifts towards a low-carbon economy, coupled with urgent pushes from governments for self-sufficiency and energy security, is causing infrastructure investments – especially sustainable infrastructure investments – to be even more in vogue. I echo the observation Larry Fink made when BlackRock acquired Global Infrastructure Partners in early 2024, i.e. “Policymakers are only just beginning to implement once-in-a-generation financial incentives for new infrastructure technologies and projects.” All our key businesses contribute to building energy infrastructure that empowers communities, drives economic growth, and protects the environment for current and future generations. While our businesses are united by this clear, shared purpose, each business has its own unique growth strategy, shaped by differing market factors, business models, and business maturity. TRANSITION FOCUSED, WITH VARYING SPEEDS ADAPTED TO MARKET CHANGES We continue to be transition-focused as a Group. With that as our overarching strategy, we consciously adjust various levers to balance the speed of our transition with global market factors such as inflation and supply chain constraints, as well as the high capital costs that our businesses require to grow. Our Core Values have been key to how we have successfully navigated the current volatile environment. Investing into building an open, conducive working environment, supported by technology and digitalisation, has helped us to attract the best people and allow them to do their best work. Latest market information, coupled with robust stakeholder management, allows swift analysis and decision-making by our diverse global team. The Business Reviews in this Report provide more details on the market contexts which influenced our decisions and outcomes in 2023, as well as the outlook for the years ahead. Business Reviews, pg 68 - 91.
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