Yinson Integrated Annual Report 2025

56 YINSON HOLDINGS BERHAD VALUE CREATION AT YINSON Corporate funding risk Definition and impact of the risk on Yinson Corporate funding risk is critical for Yinson due to the capital-intensive nature of our FPSO and renewable energy projects. Securing sufficient, timely and cost-effective funding is essential to maintain financial stability, meet long-term contractual obligations and support strategic growth. External pressures such as rising interest rates, tighter global credit markets and evolving ESG expectations from financiers heighten this risk. Inadequate funding may result in debt defaults, delayed project execution or constraints on business expansion. How we manage or mitigate the risk • Leveraged equity, long-term debt and sustainability-linked financing. • Maintained strong relationships with financiers, supported by a solid project delivery track record and stable credit profile. • Closely monitored cash flow, covenant compliance and performance across subsidiaries. • Allocated at least 5-year cash flow to support operational expenses and future investments. • Utilised perpetual bond instruments and refinancing mechanisms to strengthen liquidity. Moving forward (opportunities) • Leverage government incentives, green loans and sustainable-linked funds to diversify funding sources and reduce capital costs. • Utilise renewables and green technologies businesses as secondary market capital investments to support capital recycling and open access to new sources of funding. • Invest in carbon capture technologies to gain early entry into low-carbon markets and expand opportunities across the carbon management value chain. Country risk Definition and impact of the risk on Yinson Operating in multiple jurisdictions exposes Yinson to political, economic, legal and regulatory risks. Instability or sudden changes in operating countries can disrupt energy infrastructure development and operations, leading to timeline delays or financial losses. Inadequate due diligence prior to entering new markets may increase exposure to adverse outcomes. How we manage or mitigate the risk • Diversified operations across multiple countries to reduce reliance on a single market. • Engaged actively with local stakeholders, including legal and regulatory bodies, to stay informed and ensure compliance. • Partnered with globally recognised tax advisors and appointed qualified local secretarial service providers to ensure compliance with local tax laws and statutory obligations. • Worked closely with local stakeholders and partners to gain in-depth knowledge of the regulatory and business landscape. • Monitored regulatory developments through local advisors, internal teams and industry networks. • Utilised political and marine risk insurance to safeguard against potential losses from events such as expropriation, currency restrictions or asset seizure. Moving forward (opportunities) • Strengthen due diligence processes for market entry and M&A activities. • Enhance engagement with local stakeholders and continue proactive monitoring and compliance efforts to ensure project continuity and improve adaptability. • Expand footprint in politically and economically stable regions to open doors for long-term growth and investment resilience.

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