102 YINSON HOLDINGS BERHAD SUSTAINABILITY REVIEW Key achievements • RM7,605 million Revenue • RM3,234 million EBITDA • RM1,903 million Adjusted Enterprise Reporting EBITDA • RM1,249 million PATAMI • 37.3 sen Basic EPS DRIVING SUSTAINABLE GROWTH THROUGH GOOD CORPORATE GOVERNANCE Risks • Low financial returns to shareholders and erosion of market share. • Inability to access capital for business development and project execution. • Inability to react to unexpected business downturns. • Business decisions fail to be assessed holistically. • Loss of stakeholder trust and confidence. Opportunities • Better management practices contribute to superior financial stability and growth, and adaptability to changing external environments. • Innovation in green technologies and sustainable practices can drive positive environmental impact while opening up new market opportunities and revenue streams. • Greater value creation by balancing stakeholder interests and building stakeholder confidence. MG1 Business Management & Performance S1 S2 S4 S7 Concerned stakeholders S9 WHY IS THIS TOPIC MATERIAL TO US? Effective business management is crucial for generating sustainable cash flows, essential for funding operations and driving growth. Solid liquidity and solvency management is further strengthened by strategic planning, risk management, and capital allocation. Our strategies guide financial management, ensuring long-term profitability and sustainability. Disciplined cost management offers flexibility, frees up capital for growth opportunities, facilitate transition and maximising value for stakeholders. Given our high CAPEX needs, acquiring investment and balancing performance are critical. MANAGEMENT APPROACH Purpose-driven strategies Our management approach is rooted in our purpose: to provide reliable and sustainable energy infrastructure that empowers communities, drives economic growth and protects the environment for current and future generations. This purpose shapes all our business goals and strategies, ensuring that our actions align with our long-term vision. Keeping our clear strategic focus, pg 31. Integration of Finance and Strategy functions In 2024, the Group’s Tax, Treasury and Finance functions were integrated into the Group’s Strategy function, under the leadership of our newly appointed Group Chief Financial & Strategy Officer. This integration enhances the connection between strategic planning and financial decision-making. Supported by datadriven insights, this helps to facilitate effective resource allocation that balances immediate financial goals with longterm growth. This approach leverages synergies across teams, enhancing risk management, governance oversight and responsiveness to opportunities. Financial risk management Yinson adopts prudent financial risk management that focuses on maintaining financial stability and managing credit, liquidity and market risks within low to medium levels. Yinson has a robust risk management and internal control system, incorporating various instruments, organisational structures and procedures to balance risks with potential opportunities. Central to this system is our ERM system, which is designed to manage key risks effectively and enable us to swiftly capitalise on available prospects. Continuously optimising and innovating business processes for financial performance and to safeguard against fluctuating economic conditions and market sentiments. C1
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