69 INTEGRATED ANNUAL REPORT 2025 BUSINESS REVIEW | YINSON RENEWABLES ADAPTABILITY AND INNOVATION TO ADVANCE SUSTAINABLY Strategic goals (2025 – 2035) • Be a significant standalone business within Yinson – a global Independent Power Producer (IPP). • Participate in the full renewables value chain globally. • Unlock additional value through strong financial partnerships. Strategies • Focus on core markets and achieve economies of scale. • Continue growth based on a lean and effective team with strong competency. • Deliver productive platform growth by maintaining greenfield (organic) project pipeline and selective M&A projects. • Optimise asset operations through digitalisation and innovative solutions. • Deliver value by optimising capital stack and implementing efficient capital recycling to secure robust equity and financing partnerships. Purpose To provide renewable energy generation systems, driving long-term value creation to our stakeholders. Our strategy has always been to keep focused on onshore renewables, primarily wind and solar, alongside supporting technologies such as energy storage, in markets with good growth potential. Recent market developments have reinforced the soundness of our strategic focus areas, enabling us to avoid the currently constrained offshore renewable energy space. Our activities remain focused on three core regions: Latin America, Asia Pacific and Europe, which has allowed us to build a balanced portfolio. Within these regions, countries have been selected where we believe the policies, market conditions and growth prospects enable a path to achieve a stable generation portfolio and deliver shareholder value creation. Driven by a strong commitment to becoming a future growth engine for Yinson Group, we have fine-tuned our strategy to adapt to evolving market dynamics and ensure a more stable growth trajectory. A key risk to our continued growth is local consenting delays and/or access to grid capacity, which are outside our control. To compensate, we are supplementing our organic pipeline projects with selected M&As, while maintaining a focus on delivering value through greenfield growth. This approach helps offset greenfield project delays, ensuring a more consistent and predictable growth profile in both generation capacity and revenue. In line with the refocused strategy, ambitious targets have been set for the next three years, with significant progress already underway. Peru has emerged as a key focus, with the Majes Project (Phase 1) currently under construction, positioning that market to achieve a strong economy of scale. Other markets poised for near-term project construction include New Zealand and Italy. Additionally, selected M&A activities are progressing steadily. In terms of funding, the completion of the USD 1 billion investment with a consortium of international investment firms is timely, providing necessary short-term equity funding alongside external project debt. Within a few years, the portfolio is expected to generate sufficient cash flow, so Yinson Renewables can be independently funded. Significant progress has been made in accessing external funding sources, with a notable achievement being the successful project financing for the Matarani Solar Park in Peru. This milestone was achieved in partnership with distinguished financial institutions, including Natixis, a long-standing relationship bank, and IDB Invest, a leading multilateral development bank recognised for its rigorous sustainability and HSE standards. The participation of IDB Invest stands as a strong endorsement of Yinson Renewables’ commitment to responsible and sustainable development. This partnership strengthens credibility with stakeholders and reinforces our strategic focus on Latin America. Additionally, Yinson Renewables’ green financing framework was approved during the year, earning the top rating from Moody’s. This achievement strengthens market reputation, opens up new market opportunities and delivers benefits such as cost savings and potential regulatory incentives. CLOSING REMARKS Our operating model remains lean and highly cost-efficient, with a continued emphasis on the diligent management of both direct and indirect costs. This disciplined approach ensures the foundation for sustained growth and adaptability in an evolving market landscape. Yinson Renewables is well positioned, well organised and well equipped to deliver on its growth commitments, and we look forward to the next phase of results-driven progress. A heartfelt commendation goes to the team, our valued local partners, dedicated suppliers and all stakeholders who have been integral to this journey, paving the way for the next chapter of growth and success.
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