55 VALUE CREATION AT YINSON | STRATEGY REVIEW STEADY PROGRESS AGAINST OUR STRATEGIC GOALS In last year’s Report, we shared that we had implemented greater decision-making autonomy in our businesses. The strengthening of functions, manpower, and expertise that was enacted as part of this exercise has enabled our businesses to respond with much greater agility to risks and opportunities throughout 2023. Tangible positive outcomes of the decentralisation exercise were apparent across all our businesses. In our most mature business, Yinson Production, we invested during the financial year to build FPSOs that are more efficient, technologically advanced, and low-carbon. This, together with our excellent safety and operations track record and over USD 22 billion in contracted cash flows over the next three decades, has helped us to greatly strengthen our platform value. We are in a stronger position than ever now to capitalise and build stronger strategic partnerships with parties that see the value of our platform. We believe this will unlock Yinson’s greatest value yet and allow us to construct the right capital structure to maximise this growth. During the year in review, Yinson GreenTech tenaciously developed its five businesses that form an integrated ecosystem that drives the electrification of land and sea transport. When our solutions hit the market, they were met with an explosion of interest from local governments and top corporations in the region eager who are eager to decarbonise. Many partnerships were forged, and many commitments delivered, positioning Yinson GreenTech as a preferred solution provider in the transport electrification space regionally. Yinson Renewables now has 585 MW in construction, and 463 MW in operation – marking a strong progression of our pipeline. This progress bodes well with the evolving macroeconomics of the renewables scene. Shifting of the valuation focus may open up different opportunities in the segment. Our sound fundamentals have allowed our renewables business to adapt well to the present realities of high interest rates, and supply chain and infrastructure constraints. Despite the constraints, we see good pockets of opportunities in the renewables market. Conventional energy infrastructure • Mature business model. • Strong market outlook, with stable cash flows. • Derived from finite resource. • Limited competition. YP Renewable energy infrastructure • Proven technology and business model. • Solid pipeline maturing towards construction and operations. • Derived from infinite resource, ESG-positive. • Higher competition. Infrastructure, innovation and solutions for the electrification of mobility • Building industries of the future in a region that has significant opportunities. • New and developing business model. • ESG-positive. YR YGT FO Empower communities Drive economic growth Protect the environment POSITIONING OF YINSON'S BUSINESSES IN THE ENERGY INFRASTRUCTURE VALUE CHAIN Mobilising capital in the sustainable infrastructure space
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